Tuesday, June 27, 2006

Bad Month…

This month’s financial recap is not going to be good. The Bridal Shower for my best friend was nice but it was such an expensive event. The other bridesmaids did not help with the expenses and several did not even attend the shower. Shameful. I am chalking this one up and moving on.

I apologize for the scarce posting. I’ve been very preoccupied with hosting the shower and prepararing for my mom's knee surgery. Financial recap to come this weekend and I will resume more regular posting next month.

Wednesday, June 21, 2006


My best friend's bridal shower is this weekend and I will be glad when it is over and I can stop spending money. These events can be so pricey that I would have rather given her a $500 gift certificate than spend it on having a party.

Next month I plan to pay down the balance on my HELOC/CC to $4,500 with tuition reimbursement from my employer. I finally got the last of my grades and while I did not make the Dean’s List again, my GPA remains virtually unchanged. Now that I have my grades, I can submit the forms for reimbursement. The $4,500 payment will bring the balance down to $15,500. I have to get this paid down to $0 by February 2007 when the rate on the balance transfer increases.

Not much else to report other than spending, spending, and more spending. I just need to get through July and then all will calm back down for me when my best friend’s wedding is over and the Fall semester starts. I cannot wait to put this final year of law school behind me so I can actually live a fuller life. Right now, it’s all about work and school. Next year I hope that it will be about work and family again.

Thursday, June 15, 2006

Need Comments on Future Hopes…

Time really flies…I can’t believe it’s Thursday already. Wow!

Tomorrow morning I have a notary coming over to my place so I can sign the documents to increase my HELOC from $26k to $50k. The pre-approval for the offer let me know that my place has increased in value and I am really excited. Why increase my line of credit? Why not?

The balance on the HELOC is still $0 with no plans to use the line any time soon. I am steadily paying down my CC balance, which is the result of refinancing my $26k HELOC. The current balance on my CC is now $20,000. So, I’ve paid it down almost $6k in the last 2 months, primarily using savings and reimbursements. I am still waiting for one grade from last semester. Then I can submit my forms for tuition reimbursement. That’s another $4,500 that I will use to pay down my CC.

I hope to eventually purchase investment rental property. I’ve wanted to do it for some time and even contemplated my first home purchase to be a 2-flat where I live in one unit and rent out the other. Unfortunately, when it came time to purchase, law school was starting in a month and I didn’t have the time to fully research, property search, and find out the true extent of becoming a landlord. Since a home purchase is nothing to rush into, I knew the same rule applied for investment property.

My hope is to get a job as an attorney next year once I finish law school and to eventually purchase my first property. I am curious to know people’s thoughts on leveraging on your primary residence to purchase an investment property.

Specifically, do you think it is a bad idea to use my $50,000 HELOC to purchase/place a down payment on an investment property in the near future, 1-2 years from now?

Saturday, June 10, 2006

CC Plan...

I paid another $2,700 down on my CC yesterday after getting a reimbursement check. CC balance now stands at $20,000. The 1.9% promotional rate extends through my February 2007 statement. The new plan is to pay $2,500 per month on the CC balance and have it repaid by the beginning of February. I haven’t totally decided but I MAY pay it down sooner with tuition reimbursements but I have a mental block about not having enough cash in my checking account.

So here is the plan...

$2,500*8 = $20,000.

Tuesday, June 06, 2006

May Net Worth Recap…

Way over budget due to overspending. Refinanced HELOC with 1.9% CC balance transfer offer until January 2007.
Used some savings to pay off remainder of HELOC balance.
$1,100 decline in net worth.
401k performed bad. With total $450 personal contribution and employer match, only a $85 increase.

Eating out: I didn’t cook at all in May due to busy schedule with Finals. This took a major toll on cash flow and I spent much more than I normally would because I was also trying to eat healthier on the go. (June isn’t going much better but I still have time to save myself!)

Irregular expenses: Irregular expenses for the month totaled $1,005 primarily due to Mother’s Day and I had to lend a friend of mine $600 (Trust…I don’t expect to get it back). I made a hard decision to give the money to my friend. While I normally do not do this, it was something I felt I needed to do and I never lend money with the expectation that I will get it back. If I do then that is wonderful but if I don’t, then I knew that going into it. Money and friends isn’t something that mixes well. I learned that lesson before the hard way.

Personal expenses: I overspend on clothes this month and eating out. I did so poorly and have no excuses. I returned virtually everything due to buyer’s remorse and an obscene credit card bill. The people at J Crew are just wonderful. They delivered the best customer service and didn’t even flinch when the clothes were returned. I love that store!

Summary: I decided to leave out my summer student loan and include it in next month’s net worth tally since I did not receive the proceeds from the loan distribution until June. Going forward, I will be contributing $400/month towards by CC balance in addition to any loan and tuition refunds. One that is paid off, then I will begin to apply cash flow to the repayment of my private student loans, starting with the lowest balance first since they have pretty much the same interest rate. Then I will snowball the payments. Next month’s net worth will also reflect the payoff of my CC in full.

Wowza…I am dreading my spreadsheet for next month.

Saturday, June 03, 2006

Returned Remainder of Clothes...

My mom returned the rest of the clothes that I bought today. She’ll call me later so I can pick up the receipts and do the final tally but the return is pretty substantial. Despite some heavy spending on my part last month, I am pleased to say that I should still be able to make a good dent in my CC balance (HELOC Refinance) by the end of the year if not paid off entirely.

It is so beautiful outside today here in Chicago. My sister’s boyfriend is on his way over in a little while to put my grill together. Then I will be grilling to my heart’s content. Time to clean out that freezer!!!

Friday, June 02, 2006


To say that my life is crazy is an understatement. To say that funds are low is another understatement. I am in the process of finishing the invitations for my best friend’s wedding shower because I have to get them in the mail by tomorrow. Why does everything have to be so expensive?

$60 - invitations
$25 - postage
$35 - color printer ink

In retrospect, I should have just ordered pre-printed invites. I am tired of learning these lessons. I thought I was making out better by making them myself. I hope the other bridesmaid’s don’t stiff me when it comes down to their contribution towards expenses.

I need to get a handle on this because there are 9 of us and so far, I am the only one doing anything. As the Maid of Honor, I know I have a bigger role to play but come on, won’t anyone call to see what needs to be done? Just ranting...