The good news is I got a raise. The bad news its $15.00 per week. I am not belittling the amount. Every single bit will make a difference. The panic I am feeling lately about minimum payments is important enough to re-evaluate how the money is allocated.
Last month when I got the news about my raise I had decided to add the $30 bi monthly amount to my automatic savings. Currently I have an automatic transfer to my savings account that takes place twice a month for $105. I think I came up with that amount based on auto insurance costs and contact lenses costs for my daughter. I realized I was not putting any money aside for known expenses. this is a foolish practice and I added the automatic payments to compensate.
In the past few months that ole Murphy he has come to visit in waves. There have been a ton of expenses that I was not prepared to pay for. I have depleted my "emergency" or back up fund quite a bit. Currently it stands at $1384.24. Which means I need to allow it to build back up to the $2000.00 level. I think I can make it by October which is when the auto insurance will be due. and of course our newest dd. 210*3= $630 puts us just over $2014. Now If I increase the amount of the automatic deposit to include my raise I will be able to "add up some snow flaking" and any funds paid over the 2k amount I can then send to pay off one credit card. Impressively the difference in 3 months is 270 *3 or $810 That's $194 to pay down debt. Nice. Lets do that!
I could pay the $30.00 directly to debt but I think at this point its really important for me to be in the habit of paying myself just like a bill. Once that emergency fund is fully funded I can put anything extra towards debt. But If I cant keep that 2000 in the savings account I may never be ready to purchase a house. So I want to practice good sound finances and keep it moving forward.
One other side note. I should get about $300 for some expenses at work paid back to me. All of that will be going to CC#3. Its current balance is 2622.54 and I made a payment in June of $465 so that card is moving in the right direction (2157.54). I want to get down from 5 cards to 4 so that the minimum payments is a bit more manageable. The PLUS loans will start to kick in and I will need to put more of my available cash to them and less to credit card debt. It just cant be helped. My dd is the most important thing.
As a result of the latest ex-husband financial entanglement it will be really important to get out finances in order for the next three months. I keep telling myself one day at a time but Phew.... I am tired of Murphy. Can someone kick him off my porch?
I notice my side bar needs to be updated. That will keep. Its not really good news and it moves in the wrong direction so I did not want to make the changes :-( But I will to keep it on the straight and narrow. The money facts are just that facts and I can face it.
Showing posts with label Emergency Fund. Show all posts
Showing posts with label Emergency Fund. Show all posts
Monday, June 21, 2010
Friday, October 10, 2008
Fun Friday
I got to work from home today because of a Dr.s appointment. So I am reading and catching up on information I have not had tome to take a look at. One of my Favorite blogs is No Credit Needed. He wrote a post on his Savings account allocation. Wow. I really admire his commitment to not ever using credit again. Currently having diabetes and not having sugar is a tough commitment and sometimes I slip. To plan for the future so you do not have to use a bank. NICE. I really admire his persistence, and planning. So using a little inspiration from his own post I have added new categories to my budget. I have set aside $3500 for a down payment on a home. This is mixed in With my fully funded emergency fund. I have been sweating how to move the money to a money market account at another bank because I was afraid I might touch the money. Or I might confuse what category I was pulling it from because it is sitting in one lump sum in a savings account. The answer is so obvious TRACK IT. Duh! So By creating a break down and tracking the money I spend if I need to I fight the demon to spend from the house down payment. If I need to use money from my emergency fund I have it available. I know exactly what I need to pay back and what is allocated to a Home down payment. This way I am not going to rob my future for some crisis I am having today. I have done that enough in my life I stole yesterday from my today and I am mad that I made those choices. Compassionate with myself but I wish I had looked harder at solving the issues sooner. I don't regret the cards. They have taught me a valuable lesson and It is painful enough I am committed to not using credit cards in the same way again. My goals are along the line of NCN's I want to have enough cash in my bank account that if I need to use it I can. I expect this to take me about 10 years to accomplish given good times. If we have a few Murphy's law moments then It will just take longer. I am realistic and experienced enough to know that Murphy will call back.
So I am using the following categories for my savings...
Emerg. Fund $2000.00
Short term goals (Home Down Payment) $15000.00
They were reflected in the side bar on my blog but they were not line items on my budget.
For now I have no long term goals. Really The only other financial goal I want to focus on is paying off the credit cards. All raises and any extra cash will be snowballed to debt. The longest term goals are retirement. I am not ignoring it but I am primarily focused on debt. Once the debt is gone I will put more towards retirement and education. I want the intensity of the goal to work for me and the only way I can stay on track is to stay with it and keep paying on those bloody cards. One at a time. I have kicked one to the curb and I am praying that I will have card #2 done by March.
So I am using the following categories for my savings...
Emerg. Fund $2000.00
Short term goals (Home Down Payment) $15000.00
They were reflected in the side bar on my blog but they were not line items on my budget.
For now I have no long term goals. Really The only other financial goal I want to focus on is paying off the credit cards. All raises and any extra cash will be snowballed to debt. The longest term goals are retirement. I am not ignoring it but I am primarily focused on debt. Once the debt is gone I will put more towards retirement and education. I want the intensity of the goal to work for me and the only way I can stay on track is to stay with it and keep paying on those bloody cards. One at a time. I have kicked one to the curb and I am praying that I will have card #2 done by March.
Monday, March 03, 2008
Murphy and being prepared
Today was a day that will live in the family lore for a very long time. I am still not over how well I was able to handle it. Really living on "No Credit Needed" and "No more debt" was put to the giant test today. I am proud to say I passed. And maybe BECAUSE I passed things turned out so well for us..... Here are the details. you decide...
This morning my daughter took her drivers test. She did not pass. It was a devastating blow for her. She was torn apart. She had been flying high all weekend. She was so excited she offered to get up at 5:00 in the morning to drive me to work. LOL Like I want to be there that early! I knew when the tester swapped spots with her on the exam course that she was going to explode. On the whole I tried to be the rock for her. I tried to have peace in my heart for my baby when really all I wanted was to go and fly swat that guy. Parallel parking did her in. Poor thing. We rescheduled the test for next Monday. She declined to drive for the ride home. (She cried the entire trip.) So I got into the drivers seat. The check engine light was on. Now you don't know me but car maintenance really stresses me out. I mean over the top you do not want to chat with me on a day I am having my car worked on. In the past a large part of that is because I know I cant afford to have anything go wrong. I can not afford a single thing to happen to that car. And I love my car. I got a very very reliable car that would have minimal maintenance issues. I have been taken advantage of by many many mechanics and I do not enjoy the ride. So As I am getting older I have begun to be just a smidgen wiser... This time I would NOT take the car to the dealer behind my home. I am taking it to the dealer where my fiancee bought his car. I called ahead to see if they would have time to work on the car today. The mechanic explained it would be a $104.00 charge to diagnose the problem. The light had been on before and my fiancee had turned it off. He is an excellent guy to have around in a pinch. We had discussed that if the light did come back on again it would need to go into the shop. So there I went. It is a intermittent problem and the dealer could not reproduce the problem. My fiancee talked to the manager and explained the day we were having. He had also just had his car there for repairs. They waved the fee to diagnose the issue. They looked at the car and could not see anything obvious wrong with the car. So..... they waved the fee.
The whole drive over to get the car looked at I just kept telling myself to be calm. I even stopped at the house to gather some relevant paperwork. I thought about putting the credit card into my purse "Just in case". But I was strong. I chose not to. I thought I will use my emergency fund if I have to this is what its there for. And God smiled on us. I did not need to use either one. Murphy has been politely asked to leave. Now if I could just catch up on all the things I need to do for my work. sigh.....
Total cost for the day $0
Effort to build up emergency fund and have it just in case... Priceless!
This morning my daughter took her drivers test. She did not pass. It was a devastating blow for her. She was torn apart. She had been flying high all weekend. She was so excited she offered to get up at 5:00 in the morning to drive me to work. LOL Like I want to be there that early! I knew when the tester swapped spots with her on the exam course that she was going to explode. On the whole I tried to be the rock for her. I tried to have peace in my heart for my baby when really all I wanted was to go and fly swat that guy. Parallel parking did her in. Poor thing. We rescheduled the test for next Monday. She declined to drive for the ride home. (She cried the entire trip.) So I got into the drivers seat. The check engine light was on. Now you don't know me but car maintenance really stresses me out. I mean over the top you do not want to chat with me on a day I am having my car worked on. In the past a large part of that is because I know I cant afford to have anything go wrong. I can not afford a single thing to happen to that car. And I love my car. I got a very very reliable car that would have minimal maintenance issues. I have been taken advantage of by many many mechanics and I do not enjoy the ride. So As I am getting older I have begun to be just a smidgen wiser... This time I would NOT take the car to the dealer behind my home. I am taking it to the dealer where my fiancee bought his car. I called ahead to see if they would have time to work on the car today. The mechanic explained it would be a $104.00 charge to diagnose the problem. The light had been on before and my fiancee had turned it off. He is an excellent guy to have around in a pinch. We had discussed that if the light did come back on again it would need to go into the shop. So there I went. It is a intermittent problem and the dealer could not reproduce the problem. My fiancee talked to the manager and explained the day we were having. He had also just had his car there for repairs. They waved the fee to diagnose the issue. They looked at the car and could not see anything obvious wrong with the car. So..... they waved the fee.
The whole drive over to get the car looked at I just kept telling myself to be calm. I even stopped at the house to gather some relevant paperwork. I thought about putting the credit card into my purse "Just in case". But I was strong. I chose not to. I thought I will use my emergency fund if I have to this is what its there for. And God smiled on us. I did not need to use either one. Murphy has been politely asked to leave. Now if I could just catch up on all the things I need to do for my work. sigh.....
Total cost for the day $0
Effort to build up emergency fund and have it just in case... Priceless!
Monday, January 28, 2008
Side Bar Updates
Today I paid $3000.00 to Debt!!! I rc'd a gift from my grandmother passing away and I am using it to pay off my credit cards. I really want to purchase my own home and I always believed that I would use any money from her to put a down payment on a home. It makes me a little sad and angry to have to pay off debt first. Let that be a lesson to you kids Dont get into debt! It takes Way too long to get out. I also increased my emerg savings to $948.00. It really calls to light that I want to be out of debt. My fiancee keeps talking about wanting new furniture. I asked him to wait a while. I want to pay down more debt first. He agreed. He also wants to wait until we move so we dont have to move furniture twice. I am sad about moving again. I really dont want to but after running the numbers today I know its going to be necessary to move and to get a second job. Sigh. Progress is slow when you are in way over your head.
I have also moved some debt around so that my payments are again under $1000.00. That allows me to put $34.00 towards the principal. Its small but its a start. I am really focused on paying off card #1. If there is ANY money leftover in Jan I will be putting the money towards that #1 card. Plus when I get my tax return from 2006 back I will also apply that $ 1200 to debt. Plus if the government does the refund I should get $900.00 and I will apply that to the debt. So all told I will have paid down $5100 on this card leaving a balance of 7008. Then there will be this years tax return which will be another $1000.00. Once I get rid of this card the snowball will begin to be effective and I will make much much more progress towards the balances. I dont want to borrow trouble though by ticking off things I plan to do you never know what may pop up in the future. For now I am happy I have paid down $3000.00 of my debt. Yahoo!
I can do it. There is hope. I have begun to look for a second job. Any ideas about working out of the house? I can do accounting and bill keeping but have a certain worry about ads I have seen online. Is there real work from home? Just wondering.
I am not a financial professional. If you are looking for financial advise you should seek it elsewhere. If you would like to join me on the journey, walk with me for a while and be my friend......
I have also moved some debt around so that my payments are again under $1000.00. That allows me to put $34.00 towards the principal. Its small but its a start. I am really focused on paying off card #1. If there is ANY money leftover in Jan I will be putting the money towards that #1 card. Plus when I get my tax return from 2006 back I will also apply that $ 1200 to debt. Plus if the government does the refund I should get $900.00 and I will apply that to the debt. So all told I will have paid down $5100 on this card leaving a balance of 7008. Then there will be this years tax return which will be another $1000.00. Once I get rid of this card the snowball will begin to be effective and I will make much much more progress towards the balances. I dont want to borrow trouble though by ticking off things I plan to do you never know what may pop up in the future. For now I am happy I have paid down $3000.00 of my debt. Yahoo!
I can do it. There is hope. I have begun to look for a second job. Any ideas about working out of the house? I can do accounting and bill keeping but have a certain worry about ads I have seen online. Is there real work from home? Just wondering.
I am not a financial professional. If you are looking for financial advise you should seek it elsewhere. If you would like to join me on the journey, walk with me for a while and be my friend......
Monday, December 17, 2007
The Emergency fund saved college dreams
$500 for college from savings,How the emerg fund saved her college dreams
I posted earlier about spending the money in my emergency account before the tax refund comes in. Then, I listened to the Dave Ramsey show. He stated how foolish that idea was. Even if you know you can pay back the emerg fund it is foolish to take money out of there for the Holidays. The fund is for an event that is unexpected. Emerg fund is for surprises not Christmas. Hmmm, okay, I will accept he makes sense even if I don't buy it... I will not take any money out. Over this weekend I am SO glad I did not take money out of there for gifts. I have TWO reasons
1) On Friday we were out at a school function and the Check engine light came on in my car. I was highly stressed nut I knew I had back up in my savings account and it would be okay. My fiancee took the car to auto zone and looked at the codes. He determined thankfully the car is okay and the light may have come on due to the rapid change in the weather. It was resolved to "Keep an eye" on it but the car could be driven. BIG SIGH of relief! No money out of pocket but boy was it wise to have not spent it on gifts.
2) On Saturday my daughter was accepted to college! They needed a check for $500.00 to confirm her reservation in the class of 2012. Total relief. I was able to pay for the deposit with cash. No credit card fees needed. So my refund will be re-allocated. When I get it I will replace the $500.00 from the emerg fund. Just to be clear, It was important to have your room reservation in as early as you possibly can. I could have waited for the refund to come in and then paid the deposit but she would be MUCH lower on the housing cue and it was important to her, and so to me, to have as much of our first choice for housing as we possibly could. I will put $700.00 towards Christmas gifts and I will pay $500.00 to paying off debt. It is less to paying off my debt, however I save big time by not increasing my deb load. The emerg fund has saved my daughters dreams. She is so excited! She sings as she goes from room to room it was totally worth it. If I had to I would spend it again and again to make her that happy.
As an aside we also had a teachable moment. I was able to have a quick conversation about the value of money and the idea that if you take care of your money it will take care of you. Its good to plant debt & financial wisdom seeds now. I will have more conversations with her in the future. For today we talked about choices I make about spending money and the value of having an emergency fund. It was good for me to be able to plan that seed in her mind for the future.
I am not a financial professional. If you are looking for financial advise you should seek it elsewhere. If you would like to join me on the journey, walk with me for a while and be my friend......
I posted earlier about spending the money in my emergency account before the tax refund comes in. Then, I listened to the Dave Ramsey show. He stated how foolish that idea was. Even if you know you can pay back the emerg fund it is foolish to take money out of there for the Holidays. The fund is for an event that is unexpected. Emerg fund is for surprises not Christmas. Hmmm, okay, I will accept he makes sense even if I don't buy it... I will not take any money out. Over this weekend I am SO glad I did not take money out of there for gifts. I have TWO reasons
1) On Friday we were out at a school function and the Check engine light came on in my car. I was highly stressed nut I knew I had back up in my savings account and it would be okay. My fiancee took the car to auto zone and looked at the codes. He determined thankfully the car is okay and the light may have come on due to the rapid change in the weather. It was resolved to "Keep an eye" on it but the car could be driven. BIG SIGH of relief! No money out of pocket but boy was it wise to have not spent it on gifts.
2) On Saturday my daughter was accepted to college! They needed a check for $500.00 to confirm her reservation in the class of 2012. Total relief. I was able to pay for the deposit with cash. No credit card fees needed. So my refund will be re-allocated. When I get it I will replace the $500.00 from the emerg fund. Just to be clear, It was important to have your room reservation in as early as you possibly can. I could have waited for the refund to come in and then paid the deposit but she would be MUCH lower on the housing cue and it was important to her, and so to me, to have as much of our first choice for housing as we possibly could. I will put $700.00 towards Christmas gifts and I will pay $500.00 to paying off debt. It is less to paying off my debt, however I save big time by not increasing my deb load. The emerg fund has saved my daughters dreams. She is so excited! She sings as she goes from room to room it was totally worth it. If I had to I would spend it again and again to make her that happy.
As an aside we also had a teachable moment. I was able to have a quick conversation about the value of money and the idea that if you take care of your money it will take care of you. Its good to plant debt & financial wisdom seeds now. I will have more conversations with her in the future. For today we talked about choices I make about spending money and the value of having an emergency fund. It was good for me to be able to plan that seed in her mind for the future.
I am not a financial professional. If you are looking for financial advise you should seek it elsewhere. If you would like to join me on the journey, walk with me for a while and be my friend......
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