Thank You Dell Computers…

Okay, Dell came through for me. I had 30 days remaining under my 4-year warrantee when my computer seemingly died last Thursday. Fast forward one week and my computer is alive and up and running again thanks to prompt customer service. They were actually very nice to me on the phone. It also pays to be nice to them!!!

I thought the warrantee was a rip off but in retrospect, I am so glad that I paid the extra bucks. If I had to go through an independent repair service, the repair might have taken longer and would have definitely been more expensive since I needed my motherboard replaced. Additionally, I now have my computer to take my exams. I have two take home exams this semester so the timeliness of the customer service is very appreciated.

Thank you Dell!!!

BTW...I still have all of my files too. So my Quicken info is still available and just needs to be updated. =)

Dell Computer Died…

My Dell computer died last Thursday. It’s 4 years old and has been falling apart for quite some time. Unfortunately, it happened at the worst possible time because finals are this week and next week. I looked online to see if I can purchase another one but the estimated delivery date is May 22nd. I would have already graduated by then.

Fortunately, I called Dell and I literally had 30 days remaining on my 4 year warrantee that I purchased. They sent someone out today to fix it while I was at work. Thank goodness my father is retired and he was able to be home for the service call. I think they replaced the motherboard (whatever that means). Hopefully, my files will still be on my computer.

The bright side? About 5 minutes before it died and wouldn’t turn back on, I was able to e-mail all of my class notes and financial spreadsheets with the exception of a recent Quicken backup. I backed up my important files about a month ago but hadn’t backed them up in a few weeks so I may be SOL when it comes to that. The most important thing is that I have my class notes and I am going to be able to study for my exams.

The bad side? I will need to fork over some cash for a new computer in the near future.

April 2007 Recap…

I decided to revalue my condo. See commentary here. I decided on a lower, more conservative valuation of $160k although I think that Zillow may be more accurate at $165k. I will keep a close eye on the surrounding market in the next year.


Not much to report other than huge amounts of cash going out the door for with big ticket items related travel and school and other discretionary spending. After this month, all school related items should be paid for, travel plans should be paid for, and I should be moving into repayment mode on my student loans. My federal loans will kick in come July 2007 and my private loans will kick in next year in March 2008. So, I have until then to find a better paying job.

I invested my 2% raise into the Company Share purchase plan. The Bank pays all the related fees for the plan and employees are able to buy shares at a 20% discount. I also contribute 5% to my 401k with the bank matching 100%.

I graduate from law school in less than 2 weeks. Finals period begins this Wednesday and ends next Friday. I will report back after I finish finals with an update. Hope all is well with everyone!




*** Had to edit chart.

Condo Market Value…

I am trying to decide whether to increase the valuation of my condo on my balance sheet. I’ve been taking a look at what closed near my residence and comparing my condo to those that have recently sold.

A 2 bedroom/2 bath condo across from my 3 bedroom/2 bath unit closed in November 2006 for $155,000. From the likes of what’s on the market and what’s sold, 2 bedroom/2 baths are going in the $150k-$155k range.

Three bedrooms condos are rare where I live and hardly ever go on the market. There was one recent sale of a three bedroom down the street from where I live in another development that sold for $178k (98% of asking).

I know that I should adjust up from my personal $150k valuation that I have on my balance sheet but what would be a good valuation? Zillow.com values my unit at $165,325.

I am thinking that I should adjust up to $165k because it is a good middle ground between the 2 bedroom that recently sold in my complex and also the recent sale of the other 3 bedroom unit. In addition, I put in new wood floors last year, new carpeting and completed some other minor updates to my unit which is in excellent shape. With the recent replacement of my washer/dryer stackable unit (don’t ask), all of my appliances in my condo are relatively new including the water heater which was replaced in 2003 by yours truly.

Decisions… =)

March 2007 Recap...

Sorry for the lack of posts. I've been a little busy winding down my last semester of law school. Just 2 more weeks of class and then it's finals time. Graduation is May 20th. I am so happy!

March and April will mark (hopefully), the final declines in my net worth. I've been paying the last of my bar fees and just today, I paid the last of my trip to Cancun for my sister's wedding. That payment should show up in my next monthly recap.

I got a measly 2% raise this year and decided to put that increase towards the employee share purchase plan. I already contribute 5% to my 401k, which is the maximum amount that my employer matches. Under the employee share purchase plan, employees are able to purchase company stock at a 20% discount. The bank pays for all brokerage and/or administrative fees associated with the purchase and shares are credited to my account within 5 business days following their purchase. Cash dividends are automatically reinvested, less 15% withholding taxes for U.S. residents. I wish that I could really start investing so this gives me a little comfort that I am moving in the right direction.

So, here goes my March recap...

Tragic Day…

I feel so awful about what happened yesterday on Virginia Tech’s campus. This tragedy of senseless measure has shaken my soul to the core. My heart and prayers go out to everyone for peace and healing. I feel so lost as to how something like this can happen to beautiful people deserving of a full and happy life.

March Madness...

Hello everyone!

March is coming to a quick end and so is my last semester of law school. I am very excited.

On the financial front, I received my tax refunds for the year. I received approximately $3500 from my federal tax return and almost $200 from the state. This income will go towards payment of my bar classes. Everything else is moving right along and my net worth is still hovering around (-$94k) excluding my tax return since this money is already earmarked for something else.

It should be improvement or minimal declines from here on out. =)

Spring Break…

Hi Everyone.

I’m on Spring Break. I went out of town to relax for a few days but now I am back. I still have the rest of the week off from work. If you haven’t guessed, I’ve been a little burned out from 1) work, 2) school, 4) bar exam stuff and 3) trying to find a law position. A little frustrating to say the least. My finances are moving along. Here is my recap from February.

Reasons for Improvement:

• Annual bonus of $3,500
• Tuition Reimbursement of $1,300

The improvement is a little misleading because in March, I’ve already paid off $4,300 in credit card spending from bar fees, Spring Break vacation to Mexico, the deposit for my sister’s wedding in Cancun, as well as regular monthly discretionary spending. So as of today, my net worth is hovering around (-$91.6k) which is still an improvement from January’s (-$94k).

February Update…

Sorry for the lack of posts. I am feeling a little frustrated with my job search and finances so I didn’t even want to think about money or the current state of my ever declining net worth.

I still haven’t filed my taxes. So, I will do that some time in the next 2 weeks. I’ve been preparing my bar application and I still have to pay $750 for the exam and $2,500 for the prep program. I am hoping my tax return will cover the prep course.

Using Quicken is going well. I am a little frustrated that some of my credit cards don’t download my transactions daily but rather once a statement is posted. Oh well, I am at least glad that I don’t have to manually enter in my transactions.

I will be posting my monthly recap in the next few days. Just trying to tie up some loose ends. =)

January 2007 Financial Recap…

• I paid my last tuition bill for law school to the tune of approximately $7300. Books cost $500.
• I transferred excess loan funds into my WaMu high yield savings account, which now serves as my emergency fund. (I just received my bonus and this figure now stands at $13k).
• I adjusted the amount for my pension as a result of another year of service. Going forward, I will adjust this figure monthly.
• My 401k performed well. It is a pretty balanced portfolio. (I should break this down one day)
• Debt kills…The giant $19k increase are my new student loan disbursements. $9k of which is in my savings account.
• Interest on my student loans continues to capitalize. Repayment on my federal loans begins in June and repayment on private loans begins in January 2008.
  I paid off all my Christmas damage.
• Net worth took a tumble but from here on out, there should be no major expenses of this magnitude going forward.

Expenses to come…

• Sister’s wedding to Cancun: Total cost for the trip will be $1700 for a week. I paid the $400 deposit on Friday. This is part my sister’s wedding (3 days) and part my celebration from graduating from law school and taking the bar exam (4 days).
• Bar Exam Fees: $4,300 for the actual exam and prep courses (Final amount due by April 15th).
• May trip to LA for a friend’s wedding: total cost $500. I will be saving this money each month.

Debt and Income to come…

• I am waiting for $1300 in tuition reimbursement for the Fall semester.
• 2006 tax return -- I am not sure how much this will be.
• In June, I should receive another $5800 in tuition reimbursement from my Spring semester.
• I will take out a $15,000 bar loan to pay for my bar exam fees and any additional bar expenses for the summer as I study. Excess funds will be funneled into my WaMu Savings account.

Blog List Updated…

I updated my blog list. There were quite a few blogs that I used to read where the bloggers stopped posting for some reason. I read quite a few PFBlogs and may have missed one or two. If you have a blog that you want me to check out, please leave a comment and let me know.

Thanks for reading!!!

Job Search Update and Networking…

As many of you know, I will be graduating from law school in May. Since I am a full-time employee and part-time student, I did not have the benefit of becoming a summer associate. Many top/large law firms hire from their summer programs and there may be opportunities for lateral candidates but the positions generally require a specific amount of direct legal experience.

Since last August, I have been interviewing and networking to find a law position for the Fall. I’ve met with Judges, partners at law firms and associates. I even spoke to other attorneys in non-traditional legal environments, such as investment banking firms. It’s been an amazing experience and I love the chance to meet new people and make lasting contacts.

It’s my hope that through networking, when a position becomes available, someone will keep me in mind and refer me for the position. While networking is time consuming, I can only appreciate these people for taking time out of their busy days to lend me a helping hand. Once I become an attorney and I get into a position where I can reach back and help other new attorneys, I will be delighted to help because I will remember the grind of these days for the rest of my life.

Nothing you want generally comes easy. You have to work hard and not be afraid to ask for help.

Financial Ratios…

Money $mart Life has a terrific post called Stop Comparing Your Finances to Others. Five Ratios to Keep You on Track.

I know that I often read PF Blogs and compare myself to others. For a while, I just read PF Blogs because I was too afraid and ashamed to start my own. While my financial condition has deteriorated since starting my blog, I’ve learned a lot and I know that my financial condition is going to improve with focus and hard work. The following ratios are a good measure for determining if you are on track and living within your means and they will also highlight some room for improvement.

Here are the ratios and how I stack up:

Liquidity Ratio
Formula: Liquid Assets / Monthly Expenses
Target: 3-6 months
Me: $9,000 / $5,000 = 1.8 months (expense is based on emergency scenario)

Housing Payment Ratio
Formula: Monthly Housing Costs / Monthly Gross Income
Target: Less than 28%
Me: $1,100 / $4,500 = 24% (33% with utilities)

Solvency Ratio
Formula: Total Assets / Total Debt
Target: Greater than 1.0
Me: $208,980 / $301,330 = 0.69

Savings Ratio
Formula: Savings per Year / Annual Gross Income
Target: 8-25% depending on age
Me: $2,700 / $54,000 = 5% (10% with company match)

Debt to Income Ratio
Formula: Annual Debt Payment / Annual Gross Income
Target: Less than or equal to 30%
Me: $20,400 / $54,000 = 38% (Student Loans and CC/HELOC Refi)

*** Definitely some room for improvement. =)

Steps Towards Financial Success…

These are the steps I need to take to reach financial freedom.

1. Spend less than I earn.
2. Establish an emergency fund -- 3 months = $15,000 (conservative)
3. Put extra cash towards debt repayment - Total to repay $203,100.
4. Increase retirement savings -- Currently 5%.
   

Can anyone add to my list?

Financial Software…

Well, I’ve been working with my new Quicken software and I am getting the hang of it finally. It’s actually pretty time consuming and I have the bags under my eyes to prove it. Not really, but the darn thing is pretty addictive and can have you working with it hours at a time. I also downloaded the trial version of Microsoft Money. I am still working with it and will report on which software I think is better once I get a better feel for both programs.

In Quicken…

I finally got my ShareBuilder accounts downloaded. Yeah!!! I don’t have much invested but I am hoping this will change in the near future.

I still can’t download my Countrywide mortgage or 401K information but I can manually enter in the balances. I am going to tinker with it a bit more to see if I can set up an amortization for the mortgage. I am pretty sure that I can.

Overall, I can see how Quicken will probably be a good tool for budgeting and strategizing debt repayment once my student loans go into repayment. Also, the reminders and direct account link access will make bill payment a lot easier.

I just wish the screen didn’t flicker all the time. I guess that’s what people meant by bugs in the software.

Millionaire in the Making…

CNNMoney.com has a fabulous Millionaire in the Making article today. Check it out here.

Sherelle Derico, 36, had a three-week-old daughter and no job when she and her husband split in 1996. But the challenges of the separation and single motherhood didn't deter her from seeking financial success.

Enjoy!

February Goals…

My goals for February are to limit discretionary spending, eat at home more, stay within budget and improve my net worth.

Expected Income: $7,500
Expected Expenses: $3,100
Expected Savings: $4,400 – trying to transfer my entire bonus and tuition refund to WaMU.

*** Income Breakdown: $3,100 monthly income. Extra income: $3,100 annual bonus (after tax) and $1,300 in tuition reimbursement.

I received a medical bill for ~ $250 over the weekend. I am not sure where that bill is coming from so I will have to call the doc’s office to inquire.

Good news…I got a refund from State Farm of my $250 deductible and a check for $80 from Aetna to reimburse me for dental expenses. I will transfer all extra money into my WaMu savings, which has a current balance of $9,000.

I am trying to bulk up my savings in preparation for student loan repayment. I may need to use the money to float me if I can’t find a better paying job right away and my student loans enter the repayment period. Once I find a better paying law job, I will reevaluate to decide on debt repayment or an emergency fund.

Quicken Update…

I purchased Quicken Deluxe 2007 over the weekend at Sam’s Club for about $40. I couldn’t wait to get home and download it on my laptop. To say the least, I was a little disappointed. For one, Quicken won’t download my 401k information and I can’t export it from my 401k’s site. I don’t think this would be any different with Quicken Premium. Second, I can’t get the one touch automatic update to work with my banking accounts. I have to go to each Bank’s website and download the information from there. Finally, It won’t download my mortgage, student loan, or ShareBuilder information. The providers are not on the financial institution list. So basically, I have to manually enter in a lot of information so it seems like my regular excel spreadsheet is actually better.

I wonder if Microsoft Money would be better a better option.

Oprah’s Debt Diet…

I watched Oprah’s recap of her Debt Diet series last night. For those who watched the Debt Diet last season, you will know that it highlighted three families who were struggling with their finances and deep in debt. You can read more about it here on Oprah’s Website.

Here is a brief introduction of the families and how they performed on the Debt Diet in just one year!!!

The Bradleys: Lisa and Steven Bradley have two children, Madison and Michael. Lisa works as a case manager, while Steven is a government employee. Together, they made $102,000 a year but were $170,000 in debt.

Result: With Jean Chatzky’s help, Lisa and Steven paid off $50,000 in debt. They sold two cars, which brought in $30,000. They also paid off $7,000 in medical bills and $3,000 in credit card debt. By taking back a big-screen television, they saved an additional $2,000.

Key to their success? Lisa and Steven started saving and they did not start spending again. Lisa saved $5,000 by not going to the mall every day and $6,000 by not eating out three times a day.

They also managed to increase their income by $26,000 when Lisa took on a second full-time job and Steven worked overtime. Currently, they have $6,500 in savings, and they're saving another $2,500 a month for the next year. Then, Jean suggests that they scale their savings back to about $1,000 a month. When Lisa and Steven are ready to retire, Jean predicts that they'll have $1.7 million in the bank.

Comments: Wowza…I am so proud of the Bradleys!!! Keep up the good work!!! They genuinely seemed a lot happier and like this brought them together in so many ways. I hope they continue to work hard and reap all the benefits. Too bad their friends turned their backs on them. They could have learned a lot about strength, honesty, and their finances.

*******************************************************

The Widlunds: Marnie and Mark's combined annual income was over $75,000 but they had no retirement savings, no college savings for their two daughters, Victoria and Gracie, and no life insurance. They were $81,000 in debt.

Result: After a year on the Debt Diet, their debt increased by $37,000. Marnie and Mark admitted that they stopped listening to Glinda Bridgforth’s suggestions and stopped following the Debt Diet principles about six months into the program. Marnie even stopped speaking to their money coach entirely. Although the Widlunds ended up deeper in debt, they did refinance their home, pay off some bills and increase their income by more than $15,000.

Comments: This is so sad. The Widlunds could have turned things around with Glinda Bridgeforth’s help. It’s unfortunate that the Widlunds did not take advantage of a one in a lifetime opportunity to work with a financial expert for free in order to secure a better life for themselves and their daughters. Marnie seemed (to me) a little defensive on the program, saying the Debt Diet was too intrusive. Finances are personal. So, if someone is willing to help you, they will have to go over your finances with a fine tooth comb and will have to be intrusive on some level.

********************************************************

The Egglestons: Sally and Dan Eggleston have three children, Emily, Danny and Sam. Dan is a fifth grade teacher and Sally is a fourth grade teacher. Together, they made $92,000 a year but were $115,000 in debt. They had 12 maxed out credit cards.

Result: The Egglestons paid off $26,000 in debt. The first money-saving technique David Bach taught the Egglestons was how to lower interest rates and waive credit card fees with one phone call. By calling and writing letters to credit card companies, the Egglestons reduced the rates on 11 out of 12 cards resulting in a savings of $15,000 in interest payments.

The Eggleston’s increased their income by $19,000. Sally taught summer school and Dan raised the rates at his lawn care business. Their financial decisions also helped them raise their credit score by 100 points which allowed them to qualify for a standard 30-year mortgage saving them $400 a month.

Comments: Go Egglestons!!! I am also very proud of them. They exhibited a very “go get em” positive attitude and were really committed to turning things around. I wish them the very best and continued success!!!

*** Info from Oprah's website. Check it out guys...You will be inspired!

Quicken…

I am thinking about purchasing Quicken to help me track everything in one place.

If anyone has the time, would you please share what version of Quicken you like best, why you like Quicken, why you don’t like Quicken, and if possible, any cool aspects of the software that you find most helpful.

Thank you in advance!!!

Closed my ING Account…

I closed my ING accounts over the weekend. The customer service at ING was fantastic and the process was very easy. It took less than 5 minutes. My reason for closing my account was the lack of a beneficiary option and I didn’t want a joint account. I know a lot of people don’t think they need to worry about this but as a law student, I learned in class that everyone should think about planning for unfortunate circumstances.

My main savings vehicle right now is my WaMu online savings account with a 5% APY. So, not only does it have a higher rate of return but it also has a beneficiary feature. Overall, I opened the account in October and I am very pleased with my experience. I learned about WaMu from Jonathan at MyMoneyBlog. Here is the link to WaMu if you are interested in learning more.

Final Tuition Payment...

My student loans dispersed and I paid my last tuition bill for law school. What a wonderful thing!!! With the payment of tuition and full repayment of my Christmas expenses, my net worth took a tumble to ($92k). From this point on, I am hoping things will get better and my net worth will improve.

Next month, I expect to receive my bonus and tuition reimbursement totaling approximately $4,500 after taxes. Bar exam fees including prep programs will cost me approximately $4,200 so I am going to use the extra money to pay for those expenses.

The leftover funds from my loan distribution will be transferred to my WaMu high yield savings account earning 5%.

Classes start back on Monday. I am looking forward to finishing up my law school career on a strong note. I hope 2007 will be full of new beginnings and success!!!

Credit History and Scores...

I am in the process of applying to take the bar exam so I needed to pull my credit to check on my payment history and also to gather my previous addresses. I am pleased to report that my credit history is completely clean and I have excellent credit scores.

Bureaus

TransUnion: 762

• Between good and very good
• Higher than 83% of others

Experian: 769

• Between good and very good
• Higher than 85% of others

Equifax: 730 *** They are always so low...

• Good
• Higher than 72% of others

Listed areas of improvement:

• Too many inquiries on my credit report. (TransUnion)
• Installment balances are too high in comparison with my credit limits. (TransUnion, Experian)
• Total revolving balances are too high. (TransUnion, Experian)
• Not enough mortgage accounts on my credit report. (Experian)
• Not enough revolving debt experience. (Equifax)
• Balances on my bankcard accounts are too high in comparison with my credit limits. (Equifax)
• Too many personal finance accounts on my credit report. (Equifax)

My Comments:

• Revolving credit: Admittedly, my HELOC refinance placed my outstanding balance on my credit card well above the recommended 35% of the credit limit. I just completed another balance transfer to 3.99% fixed for the life of the balance which will further hamper this credit factor. My outstanding balance will now be 95% of my total credit limit but I won’t have to make any more changes to this account and it will continue to decline. *** I am thinking about opening a new Capital One miles card because I don’t have a good rewards card right now and I am tired of paying the annual fee on my AMEX. Each month, I charge my utilities on my credit card as well as large necessary purchases, like a new computer or my trip for my sister’s wedding.
• Installment credit: My student loans constitute installment credit. Since they have yet to enter repayment, the balance equals 100% of the credit limit. This factor will improve in the near future once my loans enter repayment.
• Mortgage accounts: Experian can forget about me adding another mortgage account to my credit history. My condo mortgage and HELOC account is enough for me right now until I land a good law position.

Well, that’s it. I am pleased with the result of my credit inquiry and I am hoping for improvement in the future.

Net Worth…

I am waiting for the final blows to my net worth. I am expecting a $10-12k dip this month with the last payment of law school tuition and full payment of my Christmas expenses. I also expect another $4k drop in February when I pay my bar exam expenses.

I am having a hard time focusing on my finances because there is so much in limbo.

I graduate from law school in May and I don’t have a new job lined up. My current position as a financial analyst pays me an annual salary of $54k with a bonus of ~$5k. That is not enough to pay my current bills and my new student loan payments. I can easily get a banker position paying a higher salary but 1) I know I am going to leave the bank as soon as I land a law position and 2) I don’t want to burn any bridges and take a position that I know I will vacate in a short amount of time.

My federal loans enter repayment in July and my private loans enter repayment in February 2008. I have a little time to find a new position but I am still a little worried. There are all types of deferment/forbearance options but I suppose I never thought I would ever have to use them.

I am tired of struggling but I can’t say that I am doing my best to mitigate damages to my net worth. Every month, I overspend. I am almost 30 years old and I swear I feel like I need someone to give me an allowance. It’s so sad. I had hoped that I would be better with my spending by now but this blog is helping me. I can promise you that my negative net worth would be worse if it weren’t for this blog.

Thank you for reading and for the support. I know 2007 will be my year to turn it all around. =)

Lack of Posting…

Sorry for the lack of posts. I will have my 2007 goals and 2006 Fiscal recap posted sometime this week. I hope everyone is enjoying a wonderful start to 2007.

December 2006 Recap...

December wasn’t so bad but I did place my Christmas purchases on my credit card in lieu of debit so my cash position isn’t adequately reflected. The credit card balances will be paid off in full within the next week. As usual, I overspent on Christmas but not too bad.

Next semester I have class only 2 nights a week from 4-9pm. Therefore, my goal is to take my lunch at least twice a week and cook dinner 3-4 times per week.

My 401k did well in December and I am still paying down my credit card balance. I had a reader gasp (I don’t blame them, I would too.) at my almost 19k in credit card debt but I failed to keep a disclosure stating that my credit card balance is the result of a home equity refinance. My HELOC interest rate is 10.75% so I transferred the balance to my credit card at 1.99%. Instead of paying $250 in interest, I paid $250 and at least $200 went towards principal reduction. It made sense to me at the time because I was still paying the same amount but the principal was reducing. The HELOC balance is the result of an 80/20 mortgage on my condo. The original balance was $25k.

Overall, it wasn’t a bad month. January will be drastic. My tuition for my final semester is due, I have bar exam fees to pay, and I have to pay off my Christmas damage. Then, it should be smooth sailing from then on out.



*** Credit card balance is the result of a HELOC refinance. Original HELOC balance was $25k and resulted from an 80/20 mortgage. HELOC interest rate is 10.75% but cc interest rate is currently at 1.99%.

Christmas Day...

Have a safe and joyous holiday!!!

November Recap…

As promised but definitely late…Here is my November 2006 Financial Recap.

Looking back at November, I don’t feel so bad. December will be another story with Christmas. Driving the decline in my net worth for November was the depreciation of my car and the interest capitalization on my student loans. I still spent too much on discretionary purchases to the tune of $1500, which was mostly eating out again. Overall, I don’t feel too bad but I am looking forward to my net worth improving in the near future.

I expect my net worth to decline for the next three months and then hopefully improve from then on out. For December, I have Christmas purchases, my tuition bill is due in January and I have bar exam fees due in February. I finish law school in May. My federal loans go into repayment six months later in December 2007 and my private loans go into repayment nine months later in February 2008. Oh joy!!!

Still no luck finding a job for next year but I am looking all the time and trying to meet with people to network.

Dodged a Shopping Bullet…

So JCrew sent me an e-mail this morning about “Sale and Free Shipping”. Well of course I checked it out and they have the two suits that I have wanted for a while now.

What did I do?

Shopped for everything I wanted and then closed the link before I purchased anything. Then I sent my mom and e-mail and told her to check out my shopping basked at JCrew for more Wish List ideas…

She is going to crack up laughing and do what???? Close the link too. LOL

Be a Millionaire...

CNNMoney.com has a article today called Be a Millionaire: 5 Ways to Get There.

The 5 ways highlighted in the article include the following:

1. Make Saving Automatic
2. Take Advantage of Uncle Sam
3. Make Stocks Work for You
4. Boost You Earning Power
5. Don’t Stop Saving

Enjoy!

Blogging Vacation...

I am taking a blogging vacation until December 14th so I can focus exclusively on my final exams. I will be officially done with final exams on the 18th but will post my November financial results on the 14th and give you an update on how December is progressing.

I got a rejection e-mail from one of the firms I interviewed with in October. All of their Summer Associates accepted their offers and therefore the firm satisfied their hiring needs for next year. Bummer!!! I haven’t heard back from one other firm so I sent my interviewer an e-mail for a recruiting status update this morning. I will post the results from that e-mail as well.

My 29th Birthday was great. I had a lot of fun over the weekend. My grandmother celebrated her 84th Birthday on Sunday so I have a lot to be thankful for.

Cheers!!!

Gift Card Warning...

Make sure that you check the terms on gift cards. Check for processing fees, expiration dates, and also check to see what to do when a card is lost or stolen.

Here is an article from CNNMoney.com that warns about buying gift cards. Holiday shoppers click here.

Time for Final Exams…

I took four classes this semester: Labor Law, Negotiations, Legal Writing Seminar, and Evidence. I will finish two of my classes next week, receive a take home final due on the 13th and finish up with my last final exam on December 18th.

I registered for my LAST AND FINAL SEMESTER of law school and I am gearing up to finish strong. No job offers yet but the operative word is YET! Something will come my way. Something good!

My 29th Birthday is on Saturday!!!

6 Ways to Cut Heating Bills…

Today is payday so I am rounding up the figures for November to see how much my net worth declined this month. Hopefully, it won’t be too bad. I will report the results soon.

In the meantime, CNNMoney.com has an article that details 6 ways to cut your heating bill. I know that changing over from a manual thermostat to a programmable thermostat has already reduced my electric bill considerably.

Check it out here.

401k Contribution…

I decided to change my 401k contribution rate from 5% to 10%. This will amount to approximately $675 contributed each month. Although my employer only matches 5%, I know it is a good move in the right direction towards establishing a continuous pattern of saving. I was going to wait until next year but I can’t come up with a good answer for why I should put it off when I am blowing through cash and don’t have sufficient income at the moment for debt repayment.

Why change to 10% when I have so much debt?

It’s easy. I am simply out of control and living way beyond my means. I know that I won’t touch my retirement account so it is safe and out of harms (MY) way. Right now, it is the only method of savings that I have. I am going through the savings in my checking account left and right now with irregular and unexpected expenses popping up everywhere.

• Car Insurance Deductible = $250
• Passport = $100
• Sister's Destination Wedding = $1,600
• License Plate Renewal = $100
• Christmas = $1,000 Budget (just being realistic about this one – saved in ING account for Christmas)

It just makes sense to me to make sure I am doing something right. In my bleak state, here are some good things.

• Everything is paid on time.
• $50k in equity in my condo.
• I have been a homeowner since age 25.
• Graduate from law school in May 2007 – just 6 more months.
• Flexible repayment for student loans.
• Private loans don’t go into repayment until February 2008.
• Car is paid off and I am content with driving it for many more years.
• I am able-bodied to get a second job if necessary once law school is over.
• I have great employment credentials.
• I have the love and support of my family.

In the grand scheme of things, I am doing all right. Things will get better. I just need to stay focused on the big picture.

Lacking Motivation…

I am sincerely lacking motivation these days and yet, I have so much on my plate it’s crazy.

Here is a brief list…

• Working full-time
• School part-time – 4 nights a week
• Car accident – neck still hurts a little
• Mom recovering from knee surgery
• Sister getting married
• I have strep throat but feel much better
• Having a hard time trying to find a law job after graduation
• Student loan debt is piling high
• 25-page paper due in a month
• Class presentation in 2 weeks
• Final exams start in a month
  

Need I go on? I keep telling myself that I only have until May and then I graduate but any law student knows that graduation is when the REAL work starts. LOL Needless to say, I am at least looking forward to finals being over and getting a chance to relax.

Like most PF bloggers out there who may dread the purchase of Christmas gifts, I am looking forward to just spending some quality time with my family. Fortunately, with my upcoming graduation, my sisters nuptials, my mother’s retirement from teaching after 35 years, and my 30th Birthday (shhhhhh!!!!!), we are keeping gifts light and going heavy on having a good time with each other.

October 2006 Recap…

I am beginning to loathe these recaps but only because of MY bad financial behavior. I can deal with large expenses like tuition payments, new tires for my car or something like that but it’s my discretionary spending that is out of control. It is this blog that lets me know just how much!!!

Okay, here goes…

Snapshot:

• Blew through cash reserves
• 401k rocked this month
• Car value holding steady
• Still trying to deposit $100/month into savings
• Student loan interest is killing me
• Probably need to revalue my condo - neighbor sold 2bd/2ba for $155, I have a 3bd/2ba
• Opened WaMu high interest bearing online savings account – 5% current APR
• Withdrew ShareBuilder bonuses and transferred to ING – Moving ING funds to WaMu on November

Major Expenses:

• Quarterly Water Bill - $110
• Bar/Bri Prep Program - $170
• Car Tires and Brake Repair - $870

Next Month:

• Watch discretionary spending closely
• Move $2-3K into WaMu savings account – waiting for checks and debit card
• Pay for my trip to my sister’s wedding – need to get this secured and out of the way
• Pay for passport
• Pay $250 deductible for car repair

Neighbor Sold Condo…

Good news. My neighbor sold his 2 bedroom, 2 bath condo for $155k…100% of the asking price.

I have a 3 bedroom, 2 bath that I purchased for $129k almost 3.5 years ago and he purchased 6 months after me. I currently value my condo at $150k so I think that after I sell my place, I can definitely net at least $50k in equity since my mortgage balance is down to $98.6k and I don’t plan to move for another 3 years. This money can go towards a new home purchase or the pay down of my student loans. Oh yeah!!!

New WaMu Account…

Jonathan over at MyMoneyBlog gave a review of his experience with Washington Mutual’s new Free Checking and 5% APY Online Savings Account. You can check it out here.

Working downtown in Chicago, there are a lot of WaMu braches and there are several that are near my home outside of the city. Like all other online savings account, the APY is subject to change but the account is fee free and I am able to access my funds a lot easier because there are so many braches nearby. I am going to probably switch to using this rather than HSBC but I will see how I like the account first.

Some other benefits…

The WaMu Free Checking account has:

• No minimum balance or direct deposit requirements
• Open with $1- Free basic checks for life
• No ATM fees on their end
• Free Gold Debit MasterCard® with Rewards—earn cash back on purchases!
• One free overdraft per year- Free outgoing wire transfers

The Statement Savings account has:

• A competitive 5.00% APY on all balances (rate only available online)
• No minimum balance requirements
• Open with $1- Instant transfer to/from the Free Checking

*** The process of opening the account was so easy and smooth. Very pleased so far.

When it Rains, it Pours…

Last night I got into a car accident after getting out of class. I just pulled out of the parking lot about 30 seconds before it happened. A woman made an improper turn and sideswiped my car on the passenger side. There is quite a bit of damage and she did not have her insurance card on her but indicated that it was at home. She said she would call me with the information. We’ll see. We did call the police just in case and waited for about an hour in the rain before the officer got there. I was a little worried that the woman would drive away because after she hit me, it didn’t seem like she was going to stop. Rain in Chicago means there are probably accidents like the one I had all over town, so I cannot blame the officer for taking a long time to get there.

So, all in all, I will have to pay my insurance deductible to get the work started on my car and get a rental but my car is drivable…just embarrassingly damaged. Besides, I don’t really blame the woman too much because she just moved here from the South and is unfamiliar with how fast Chicago moves and the sheer amount of one-way streets in Downtown Chicago. If you are new here, it can be very difficult.

The most important thing is that nobody got hurt. The car can be fixed but people are not replaceable and I am grateful that it wasn’t worse.

Waiting Period for Purchases…

Tricia over at Blogging Away Debt (great blog by the way) uses a 90-day rule when making purchases. In the end, waiting the 90-days kept her from purchasing a new LCD TV. I like the idea a lot especially since I am a serious impulse buyer.

So here goes…I am going to try a 30-day waiting period. Hopefully, I will be able to increase this to 60 days and eventually 90 days. In the end, I can try to save for whatever it is that I want during this waiting period.

I mulled the purchase of my new PDA/Cell phone for about 6 months before I purchased it and I am very happy with it. But by waiting the whole 90 days, I could have easily set aside $100/ month for the purchase and it wouldn’t have hit my pockets so hard. Plus, you never know if the urge to buy whatever will go away, if you will find something else that’s cheaper or if the item will go on sale.

Thanks Tricia!!!

October Update…

October is turning out to be a costly month for me as well where bills/expenses exceed income and I SPEND TOO MUCH!

Monthly Income: $3,130 – After 5% 401k contribution

Savings: $300

Regular Bills/Expenses: $2,250

Discretionary Spending: $915

Irregular Expenses: $1,150

• Quarterly Water Bill - $110
• Bar/Bri Prep Program - $170
• Car Tires and Brake Repair - $870

Deficit: $1,485

September Recap...

September was a better month. I moved to a cash only system and steered away from the use of credit cards. It was a lot less stressful and I could feel the pain of my cash balances declining throughout the month. Irregular expenses and purchases hit me hard in September and they are hitting me hard in October as well. I can say that all October irregular expenses thus far have been necessary expenses and not discretionary like my new PDA/Cell Phone that I purchased in September. I purchased it so that I can keep up with all my appointments/interviews, work meetings, school projects, exams, and assignments due.

Irregular Expenses: ~ $1,300 (OUCH!!!). I don’t have to tell you that this completely threw my budget out the window. Luckily, I got $900 extra in September in tuition reimbursement that helped out a lot.

Interview Expenses: $330
Law School MPRE Exam: $60
Car Repairs: $260
New PDA/Cell Phone: $380 - $100 Mail in Rebate so $280
New Computer Battery: $80
Garage Door Repair: $100
Birthday Gifts: $100

Discretionary Spending: ~ $1200. Once again, I spent way too much but I know it would have been worse using my CC. Not so much on clothing or anything like that, just eating out and entertainment spending. This spending would be in line with a salary in the $135k range, not my $54k salary.

Savings: I transferred $4,000 of my Savings into ING and have since transferred the funds back to my checking account. MY HSBC account is now up, running, and set to go and I just need to call and have them fax me the beneficiary form so I can fill it out and fax it back. Then I will transfer the $4K back and out of “harms way.”

Investments: I invested another $100 with Sharebuilder and that account is building nicely. We have to start somewhere right? In October, I deposited another $100 and should get the $50 and $25 bonuses in the coming weeks to add to my accounts as well.

Retirement: My 401k performed much better and almost doubled my contributions for the month. Oh yeah! My friend is a financial advisor so he did a new asset allocation for me and it is working out well.

Debt: Student loan interest continues to stack up and capitalize. I am grateful that this is my last year of law school so I can start paying some of this debt off soon.

General comments: Overall, a slight dip in net worth but nothing like last month. It will suffer another dip in January with my last tuition bill but from there on, it should be smooth sailing to financial freedom. I am still interviewing and have another interview this week. I am waiting to hear back from 2 firms that I interviewed with in September. Both are long shots but I am just as deserving as the next, hungry for the opportunity, and know that I can do a great job for whoever hires me. What is meant to be will be, I just have to continue to put my best foot forward.

September Update…

Cash Only System…

September is moving right along. I am pleased to say that I’m loving the cash only system. It is absolutely wonderful. I will also say that I am less anal as well with balancing everything. While this may be a bad thing for some people, I think that it is working well for me because I was becoming obsessed with writing down every dime that I spent. I was spending so much anyway that 1) it didn’t help and 2) I never had time to go over my spreadsheets. So I use the Bank of America Keep the Change Checking account and use it solely for my personal spending. I am able to track it that way. I use my other bank account for unexpected expenses like my car repairs this month.

Car Repairs…

Speaking of car repairs, I just spent $260 to get my car serviced, including cooling and transmission flushing, oil change, tire rotation and winterizing. Right now, my car is 4 years old and has 45k miles on it. I drive about 100 miles a day, 4 days a week downtown to work. The dealership serviceman also told me that I would need 4 new tires before winter because they were near bald. This is scary business especially considering the sheer amount of driving that I do daily. So, I am going to do my research and try to find a good deal on the tires and have them replaced soon. Winter here in Chicago is approaching quickly.

Employment…

As many of you know, I had 2 call back interviews and I am in wait and see mode. I also haven’t heard back from another firm and sent them a follow-up letter that still expressed my interest. I would love to work for either firm and would be blessed to get an offer. I am still doing my best to network, network, network but it is extremely hard with my schedule and completely wrong and difficult to make personal calls from work regarding employment at another company. So, I am forced to make many of my calls from home on Fridays since I need a new cell phone and the only one have now is cheap and completely unreliable. Yet another expense that I will incur soon. I am going to bite the bullet and get one with a PDA because I need a way to keep up with my crazy life.

Savings/Investment Update…

Right now, I have approximately $4,400 in my ING accounts. Once my funds become available, I am looking to move my long-term savings of $4k to Emigrant since they have a beneficiary designation form. I will keep my short-term savings with ING and continue to fund it with $100 automatic investments every month. This account is for my sister’s wedding next year.

I opened another ShareBuilder account to get a $25 bonus. I am hoping to be able to invest $200/month into ShareBuilder. I chose SPY, which is the S&P 500 Index.

That’s it for now. Thanks for reading this long post. LOL!!!

Major ING Drawback...

Something has been bothering me about opening the online savings accounts. Call me traditional, but I just like the idea of branches and being able to have immediate access to my funds. Needless to say, I am going to need quite a bit of coaxing to continue using the online savings accounts.

So over the last 2 days, I’ve been thinking about the fact that I never signed a beneficiary form for my accounts...like I do with a traditional bank account. So, if something were to happen to me, the funds can go directly to that person. Since I’m not married and don’t have any children, my parents are the beneficiaries of my bank accounts, insurance, and retirement funds. Although I don’t have a trust established or a will (I will need to do this soon!!!), I know that they will receive everything because they are named beneficiaries using will substitutes. My condo is another issue.

I don’t share all of my financial business with my family so it’s not like they would know I have online savings accounts. The only other option that I have is to make the account a joint account and I don’t want to do that either.

Yes...I am leaning towards pulling my money soon. This is one I can’t get comfortable with especially since you never know what may happen in today’s day and age.

September Progress Report…

I cannot believe how quickly September is going by. It will be Halloween, Thanksgiving and Christmas before I know it.

I am plowing my way through September. I had some job seeking related expenses like parking for interviews, new interview shoes (my other shoes hurt like hell), and some dry cleaning expenses. I know I need to curb my eating out expense but I don’t have the focus or energy right now with work, school, interviewing, etc. That’s enough right! LOL

Anyway…I am still waiting for a $900 tuition reimbursement check. I opened a new ING account and deposited $4k of my savings. I will deposit additional funds at the end of the month because I still have about $4k sitting in my checking account and I want to have that number around $2k.

Can anyone tell be about their experience with HSBC? They have a better savings rate than ING so I may look to transfer my long-term savings/ debt repayment funds into that account.

So far, I have approximately $45 in my Bank of America Savings account from the automatic $25 monthly checking transfer and regular Keep the Change deposits from my checking account debit transactions. I will be transferring the balance of that account to my ING account at the end of the month.

Thanks a bunch!!!

August Recap…

This is my August Recap. It’s not pretty thanks to the payoff of my vacation that I never took, overspending, and approximately $10k in tuition and books. My net worth declined even further into the Red to ($77,871) from ($63,368), a $14.5k difference. Ouch!!!

For September, I moved to an all cash/debit system. We’ll see how that works out.

Snapshot:

• 401k performed better.
• Increase in cash balances are financial aid funds that I need to move over to ING.
• Opened an ING and Sharebuilder account.
• New student loans are all federal. No private loans. I went with the new Federal Grad Plus loan so that my interest rate will be maxed out at 8.5%.
• Next month should be a lot better. I am contributing $25/month to my savings account to avoid account fees and $100/month to ING and Sharebuilder (S&P 500). At the end of the month, I will be transferring all savings from the Keep the Change program to ING which should be in excess of $40 with the $25 savings deposit as well.
  
  

My Neighbor is Moving…

I am kind of sad because I really like him a lot and he is always so kind to me. He is an older gentleman that previously worked in advertising so he has a great sense of humor. He bought his place about 2 ½ years ago, a little less than 6 months after me. I have been in my condo for 3 years as of July. His condo is a 2 bedroom with 2 full baths and an attached garage. My place has 3 bedrooms, 2 full baths and an attached garage. He put his place on the market for $155M. It will be interested for to see what his place sells for.

Currently, I value my condo at $150k. I may be undervaluing my place so I will be keeping a close watch and may get to adjust the value of my condo, especially with the upgrades that I completed in February.

As it stands, once I finish with law school, I will have approximately $100k in private student loans and $110k in federal student loans. I am hoping to secure a legal position that will boost my income considerably from my current $55k. After a year or two, I hope to save and pay down as much of my student loan debt as possible, contributing all bonuses, tax returns, and extra funds towards debt repayment. It is my ultimate hope that with the sale of my place in the next 3 years, I will be able to completely pay off my private loans, especially with $60k in equity in my home already. Then I will be left with a federal loan payment of approximately $500, that will decrease to ~ $300/month with the pay-off my new federal grad plus loan and last year of regular federal loans that I will not consolidate due to the inreased interest rate.

Lofty goals? Of course…why settle for less.

Good Old September...

Thank goodness August is over. It was a horrible financial month. Unexpected or irregular expenses ranged from an impromptu trip to Cleveland, payoff off my vacation to Punta Cana that I never took, Spring tuition, and the unnecessary purchase of career suits. Yep...shopping. Consequently, I have moved to a cash only/ debit card system. No more credit cards!!!

During the Month of August, I did the following prep work:

* Opened a Bank of America “Keep the Change” checking and savings account
* Opened an ING Direct account and set up automatic monthly deposits of $100 -- Also received a $25 bonus
* Opened a ShareBuilder account and set up automatic monthly investments of $100 -- Also received a $50 bonus
* Set up $25 automatic savings transfer to BofA savings to avoid the monthly fee

Here is my new monthly budget breakdown. It is going to be tight given my busy life of working full-time and going to law school part-time, but I am going to do my best to make it work. I am going to transfer my financial aid money, with the exception of $2K into my ING Account so that I only use the funds if absolutely necessary. I will have the 2K as a buffer for unexpected expenses. I am also expecting another $900 in tuition reimbursement this month, which I will likely also transfer to ING or open a HSBC account. I wish there was a bonus for that Bank...I would definitely open it then.

Opened a ShareBuilder Account…

I opened a ShareBuilder account to take advantage of the $50 promotion. I used promotion code ENTERTAIN50. ShareBuilder said that the $50 will be deposited 4 weeks after my first investment, which is scheduled for the first Tuesday of September. I elected to do the Free One-Month trial to get a free trade and then I will change to the Basic $4 Account.

For now, I also elected to transfer $100/month to fund my account. I used the ShareBuilder financial model to assess my risk tolerance and I came out with a Moderate profile. As of right now, my funds will be invested into two ETF funds…


What do you think?

Back from Ohio...

My interview in Ohio went well....Okay. Basically the firm looked interested in hiring me into their Summer Associate program but only if I could then go on and clerk for the next year until I took the bar exam the following July in 2008. As it stands, I was already prepared to take the bar exam in July of 2007 and was looking for an entry level associate position to commence in the Fall of 2007.

The way a lot of mid-size/large law firms work, is that they hire so many law students to become summer associates at their firm during the summer. If the law student performs well and demonstrates the potential to be a solid attorney, then they are extended a job offer to join the firm after taking the bar exam.

Unfortunately for me, I never completed a summer associate position because I was a full-time worker and part-time student. I am regretting that decision right now but it was never a given that I would have been extended an offer for a summer associate position. Now, I am working to secure a job for next year.

One thing that I am very willing to do since I am not nearing the end of law school and a career change, is to leave my current employment situation and complete a summer associate position if the firm would also allow me to clerk in their offices during the next year. I may be able to secure a judicial clerkship as well.

So much to decide...so much hustling...but anything worth having, is worth working for.

Going to Ohio...

Oh my...I am off to Ohio for a job interview on Saturday. It was last minute but oh well...it is a job prospect and I have to make every effort to take responsibility for my career. I placed the airfare and hotel room on my credit card to get the rewards but have the funds to pay it off in full. In fact, I already transferred the funds into a separate account to make sure that happens.

The bad thing??????

$350.00 that I did NOT plan to spend this weekend but the reward can possibly be much, much sweeter!!!

Wish me GOOD luck!!!!

Sticking to a Budget…

This is my question…

How do you handle unexpected expenses when you are sticking to a tight budget?

It seems like something is always coming up, a wedding, birthday, license plate renewal, and of course…Christmas! How do you plan for these expenses and how to you simply decide that you cannot afford it?

For me, the answer has always been the dreaded CREDIT CARD! That was my solution. I would just put it all on the credit card and worry about it later because I never wanted to feel like I couldn’t do something for someone or take care of business when necessary.

What happened? Over $20,000 in credit card debt!!! (Ouch)

I feel bad. One of my friends is getting married Labor Day weekend and the only reason that I'm not going is because I know I can't afford to go. I would feel like I had to write out a check for $100/$150 for me and then double it if I brought a guest and I just couldn’t do it. I hope it won’t always be like this.

No More Credit Cards…

September will mark the first month that I don’t use credit cards. I am a bit leery about my plan but I will try it out nonetheless. I still have to pay for books and I will have to do that sometime this week. It should be to the tune of approximately $500. My net worth is going to take a mighty big hit this month with a tuition payment of about $11,500.

Job update: No job so far. I received a rejection call and rejection letter from 2 employers I interviewed with at the Job Fair. One firm even spelled my name wrong. Addressed me as Mr. Chitown instead of Ms. Chitown. Small mistake but still a slight smack in the face when you are already rejecting me. What does that mean? More motivation to get a better job at a better firm and make an even larger contribution to the practice of law.

Hope everyone is well!

On Vacation...

I am on vacation this week and it is the first time without work and school since March. I really needed this break. The Job Fair on Friday went well. I went in with the attitude that I have nothing to lose and that managed to soften my nerves.

I am working out a financial plan for the rest of the year right now. I established automatic savings with ING to deposit $100/month and will look sometime at the beginning of the year to double that amount.

For now I just want my CC/HELOC paid off by the end of February, to land a good paying job for next year, to work out a feasible budget that does not include credit cards, and to start my new job in September with $20k in savings. I know it is ambitious, but with my bonus, tax return, and tuition reimbursement, I should manage. We’ll see.

Interviews Tomorrow…

Tomorrow is the Job Fair and I have 3 interviews. I am a tad bit nervous and I have been researching the employers like crazy to find out as much as possible. Please wish me good luck!!!

Last night I went over to school to participate in a Mock Interview. It went well although my interviewer did say that she could tell I was nervous. Other than that, she said that I came across very professional, eloquent, and polished. (Thumbs up!) She just said to go into the interviews as if I have nothing to lose. Great advice. =)

So, that’s it…I pray everything goes well and that I am fortunate enough to get a call back, a second interview and a job offer.

Productive Morning…

I got 2 of my goals for the month accomplished today! I set up my Bank of America accounts to take advantage of the Keep the Change program and signed up with ING with an initial deposit of $250 to get the $25 bonus. Oh yeah!

No more credit card use for me. I am done, done, done!

I am on vacation next week from work and that’s where I will jump start making lunches and dinner again and eating out less. (Hopefully…I am on vacation.) I am going to hold of on the Sharebuilder account for now and just focus on trying to deposit $50-$100 into my ING account every month until I can get use to this whole budget/cash thing.

Hope everyone is well. I just wanted to post on my progress!!!

Best Friend’s Wedding is Over…

My best friend’s wedding was this weekend and went off with minimal hitches. She looked beautiful and we had a great time. Despite my shoes hurting after one hour, I smiled the entire time. LOL

Now it is time to regroup the finances. I took Sunday just to relax, read a little for enjoyment and visit with my parents for dinner. But now I am back to business. This Friday I have a Job Fair to attend and I have 3 interviews with a mid-size firm, a small firm, and a corporation. Wish me good luck!!! I really hope that something positive comes out of these interviews so I don’t have to relocate. My heart and soul rests in Chicago.

For now, I don’t anticipate any additional large expenses for the remainder of the year. Of course I am excluding Christmas. Next year will be a busy year for my family with my graduation, my mom’s retirement from teaching, and my sister’s wedding. Plus, I turn 30 next year, so I know I am going to want a bash for that big and special occasion. Did I just say 30????????? (Chitowngirl shakes her head in disbelief!)

Hope everyone is well. Thanks for checking in on me. Cheers!!!

My Credit Card Use…

Well, I HAVE to refrain from using my credit cards unless there is an emergency. I just don’t have the willpower and continue to use them recklessly. My CC bill is due in about a week and that will be the end of that. I do have my regular bills charged to one CC and will continue that method of payment, but I do not carry that card in my wallet.

As I finish my last year of law school, budgeting is even more a priority. I will have to begin repaying my private student loans 9 months after graduation and my federal consolidated loan goes into repayment immediately. Since this is my last year of law school, I have a small window of time to establish better spending habits.

I am still going to open an ING account and a Sharebuilder account and I want to deposit $50 in each account when I get paid (once a month). While I agree that the Bank of America Keep the Change Program is not entirely attractive given the low interest rate on the savings account, I think I will go ahead and open an account. Anything transferred in the savings account will get swept into a higher interest bearing account at the beginning of the month, when I make my new $50 contribution.

I just need to get better hold on my spending NOW!

July Recap...

Snapshot:

• Positive change in net worth primarily due to less spending and tuition reimbursement
• 401k bounced back a little
• Everyday CC use was paid in full and paid down HELOC/CC by $200
• Student loan interest is capitalizing and building fast
  

Looking Forward:

• Pay off my everyday CC use in full including the vacation I had to cancel
• Continue to contribute to my 401k
• Open a Sharebuilder account to take advantage of $50 bonus - Are there any out there?
• Contribute at least $50/month to Sharebuilder account
• Open an ING account to take advantage of a referral bonus – Are there any out there?
• Contribute at least $50/month to ING account.
• Spend less, smile more, and GET A NEW JOB FOR NEXT YEAR!!!

I’m Free…

Final exams are over!!!

Now I have to get ready for the August job fair. Through the bidding process, I got 3 interviews and I am really excited. I hope everything goes well and that I get an offer! I know that I am a really hard worker and that I will do a good job for whoever hires me. Most of the time, the hardest part is getting your foot in the door. I will also be attending 2 other job fairs in the next few months so hopefully something good will come my way.

Needless to say, a job at a firm would substantially increase my income. If I am fortunate enough to receive an offer and work for a firm, I will have to go into serious debt reduction. The question will be…Should I invest simultaneously with debt reduction or should I try to pay off as much as possible in the first few years. No matter what, I am committed to saving for my retirement so this question pertains solely to outside investments.

What do you think?

Update and Final Exams...

I am currently finishing my take home final exam that is due Wednesday evening. I cannot wait to turn in the exam and have that monkey off my back. I’m already at 10 pages but I don’t feel confident about what I wrote which sucks!!! LOL. The class is Remedies and I have to say that despite this being a BAR class, we didn’t learn very much and then our professor gave us a 10 page policy question regarding software as if I know anything about computer software. (Sigh!)

Oh yeah...Can’t wait for this class to be over.

It is supposedly gorgeously hot today here in Chicago but I doubt that I will venture out into the heat. I hardly ever complain about the hot weather especially since you know the cold freeze of the Windy City will return with a vengeance. LOL. I love this city.

Finances are looking up. I returned a lot of the interview stuff that I bought for a few upcoming job fairs and decided on two skirt suits, black and gray, for a conservative look. I really hope that I get an offer from these Job Fairs because it is so hard for an Evening Student to get legal experience and that can work against us.

I booked a vacation with Apple Vacations but then someone told me that it was not a wise decision to be out of the country just in case I do receive a callback. So I called today to cancel the trip and hopefully everything will work out. Push come to shove, I will at the least get a travel voucher that will be good for one year.

Other than that, my mom is finally home from the physical rehabilitation facility and her knee is doing really well. My Uncle is supposed to come home from the hospital this week but will still continue his chemo treatments for several weeks to come.

My Best Friend is getting married in less than 3 weeks and her bachelorette party has yet to be planned but I am putting that expense and event on the other bridesmaids since they did not help with the Engagement Party or the Bridal Shower. No major expense for me there and luckily, my dress doesn’t need to be altered so that is one less expense I have to worry about.

Oh yeah!!!

June Recap…

Snapshot:

• Falling down a slippery slope with my spending.
• Not much change in Assets.
• 401k performed poorly again - Total $450 contribution and only a $41 increase.
• Liabilities increased dramatically by $7M primarily due to new Summer School Loan.
• Paid down HELOC CC balance by $3k - 1.9% CC balance transfer offer until January 2007.
• $6,634 decline in net worth – summer school class and payoff of regular CC in full

Lack of Posts…

I am so sorry for the lack of posts. I am actually going postal at the moment. LOL

Finances are struggling a bit but that is somewhat expected with all that is going on. I am making a splurge and going away on a vacation in August. I shouldn’t but I feel like if I don’t take some time away from home, work, school, family, etc…You get the point. LOL I am not going overboard at all and it will actually be a cheap vacation compared to most.

My mother is still in the rehabilitation facility getting stronger after her knee replacement surgery so I have been trying to visit with her as much as possible so she doesn't get lonely up there.

My Uncle was just diagnosed with a very treatable type of throat cancer and was admitted into the hospital on the 4th of July. We almost lost him after complications from surgery but he is stabilized and getting stronger so I have been visiting him in the hospital as well.

My sister got engaged yesterday while vacationing in Jamaica so she will begin wedding planning once she returns. I will be the Maid of Honor, which means of course…Cha Ching!

I have a June financial update and will post it later this afternoon. Thank you for those who have stayed with me despite the lack of posts but there is just too much going on for words. Including Summer Law School Finals. Oh Boy!

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.

Update…

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.

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?

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.

May Net Worth Recap…

Snapshot:
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.

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!!!

Craziness...

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...

Relaxing Weekend…

I had a really relaxing weekend. I returned half of the clothes that I bought and my mom will return the other half this week for me. That’s a relief to have that off of me. I bought a really inexpensive patio set this weekend and a grill so I can cook more at home. My Dad came over and helped me with everything. Thank goodness for wonderful parents.

The financial month is over and I have a few trailing issues to resolve. Then I will be posting the results. Since the payout on my CC will not happen until the middle of the month, my May recap won’t look as bad as June which will reflect the payoff of my CC in full. I will have another dip in my net worth because of the payment for my summer class. Overall, it won’t be too bad but June should be a lot better in terms of spending than May.

4 Day Weekend...

I am so excited to have a 4 day weekend. What am I going to do? I am going to take back over $1k in clothes (will explain later), purchase running shoes, and get my butt out on the track. Therefore I can fit the clothes I already have and not need an entire new wardrobe. LOL.

One thing about working full-time and attending class 4 nights a week is the lack of time. Consequently, my health has taken a beating and I have gained about 10 lbs, if not 15 lbs. I refuse to get on the scale. =) Do I need new clothes? Sure. But I could also be just fine by losing the 10 lbs I gained so I can fit into all of my clothes comfortably again. Plus, I really don’t want to spend any large amounts of money on anything until I get my CC paid off from refinancing my HELOC.

I have to do better with my finances and my health. So I am going to kick start a workout program this weekend since I only have summer classes twice a week and more time. I am also going to get back to cooking which will help my finances considerably. I am at $1,100 this month for eating out and groceries all because I chucked cooking and ate out almost every day and on the weekend. Sooo bad and I have nothing to show for it at all. Bummer.

So that is my plan for the weekend. My boyfriend is on a plane to Miami in about an hour and I wish he could have fit me into his suitcase. LOL. Luckily it will be a nice weekend here in Chicago.

Got a Call Back…

Boy do they work fast. I got a call back from Human Resources yesterday to ask me questions about my job application. The call was for the Junior position but that’s okay. The unfortunate part was that the woman asked me for my current salary. Darn. It is not like they don’t already have access to the information since it is my employer. (Sigh!) So I paused and then told her $54k.

I sort of knew that the Senior position was a long shot but it is still attainable especially once I have experience and I complete my degree. In reality I was hoping for somewhere between the midpoint and the maximum salary for the job grade, with the midpoint at $67k and the maximum at $86k. $75k would be lovely for the transition and would afford me sufficient income in the interim to pay down debt, prepare for the arrival of my student loan payments, and try to obtain a higher paying job.

My fingers are still crossed. The woman said she was going to forward my information and application to the hiring manager. That’s good news. I should hear something in the next week.

Link Love…

I added a few blogs to my blog list. I visit them all the time but haven’t updated my blog list in a while. Check them out if you get a chance!!!

2 Million

CalGirl Finance

College Graduate

Consumerism Commentary

Debt $ense

It’s Just Money

Seattle Simplicity

Applied for New Job…

I bit the bullet yesterday and applied for two new jobs with my current employer. The new positions will allow me to gain additional transferable skills in the area of law. I applied for a junior position and a senior position but I am hoping to get the senior position to challenge myself as much as possible. In terms of qualifications, I am in between what they are requesting. Both jobs are a higher job grade (which means more money) but the junior position prefers a bachelor degree and the senior position prefers a law degree. I have my bachelor degree in economics from a Great school and I am one year away from my law degree so I hope they consider me for the senior position.

I am hoping to get an interview and an opportunity to transfer within the company. This would avoid the need to leave my employer to gain legal experience. Since I want to practice law, I will leave my current job if I have to and seek out clerking opportunities.

Wish me luck!!!

I’m Done...

My 3rd year of law school is over and summer school starts tomorrow. It’s full stream ahead from here and I am so excited. I think my finals went well but no matter what, I know I worked my butt off and tried my best.

I looked at my CC balances on Sunday night and got the shock of my life. J Crew really got me and I will be returning a few items before my CC closing date so I can pay the balance in full. No excuses…Paid in Full!

I really want to go somewhere this weekend but I know that’s not going to happen. The beach has been calling my name but I guess I will have to settle for Lake Michigan. =) I might go out this weekend with my parents to the discount stores to look for some patio furniture. I love sitting outside in the summer and reading. It’s relaxing and I live in a really quiet subdivision. My hope is to one day own a home with a deck so I can sit out and perhaps entertain.

My BF is heading down to Miami this weekend with the guys so I will be trying to entertain myself. Not sure what I will do for the long weekend but I know relaxing is somewhere on the list as well as returning clothes. LOL.

Confession...

I’ve been internet shopping. JCrew’s website has been my nemesis this week. I know that buyer’s remorse is sure to kick in and I will be returning quite a few items with the exception of one suit. That I need. Such weakness! (Sigh)

Thank Goodness...

This time tomorrow I will be done, done, done!!!

I just broke the bank and bought tickets to see Alvin Ailey on Sunday. It is my treat for finishing my 3rd year of school. I am so excited!!!

MBNA Reversed the Balance Transfer Fee…

I can’t believe it. I looked up my account today and low and behold, my balance transfer fee was reversed!!! I didn’t even call back to speak with another account representative. =)

Even though I vowed not to let one rude customer service representative tarnish the business relationship I have with MBNA, it is nice to know that they are on top of their game.

This was a very nice way to begin my morning. BTW…3 Final exams down and just 1 more to go!

I'm Alive...Barely

I am still here...taking law school finals right now that are kicking my butt! I am so tired that I am wired...does that make sense? Sorry I haven’t posted but in a nutshell...Charge, Charge, Charge! All will be repaid at the end of the month but darn not having the time to truly see the damage. =(

It is about 3:30 in the morning right now and I have my 3rd exam in less than 15 hours. I better get some sleep. Next Friday is my last exam and then I’m finished with my 3rd year of law school. Just one more year to go...Yippee!!!

Transfer Fee and Poor Customer Service…

I looked up my CC account this morning and what do you know…a $75 balance transfer fee appears after I was told that it would be WAIVED! So I promptly called my CC company and was placed on hold for a good 5 minutes only to get the most RUDE customer service representative.

I told the woman that I initiated a balance transfer last week and was told by the account representative that the fee would be waived. She tells me that it wasn’t noted on my account and that I would be responsible for the fee. I told her NO I am not because I was told that the fee would be waived if I transferred the balance that day. Not only did I do this but I had the woman repeat it like 5 times that there would be no fee.

So once again the woman today tells me that I am responsible for the fee and once again I tell her NO I AM NOT. Then I ask her to let me speak to her supervisor and she promptly tells me…Thank you for calling “cc company and have a great day” without transferring me to a supervisor and then hanging up on me.

Okay I am at work so I need to take a DEEP BREATH and call the CC company back tonight when 1) I get home, 2) after I’ve calmed down and 3) so no other person can hear how annoyed I am right now.

Balance Transfer and Applying for New Job...

My CC company deposited the money into my account so I will pay off my HELOC on Monday. Yipee!!! I have tuition reimbursement checks coming in the next few months that will help me significantly pay down the CC balance.

I think that I made up my mind to apply for an open position at my current place of employment. The position could increase my income since the job grade is higher. It will also allow be to use my legal skills and give me the opportunity to develop additional transferable skills for when I try to secure a law job for next year. I know it would be the right move but is kind of scary at the same time. I’ve been an analyst since I graduated from undergrad and I’m comfortable...too comfortable. So I am going to take the plunge and see if I can get the position. If I don’t, I might have to consider leaving so that I can get some legal experience before I graduate.

High Stress = High Spending...

For some reason I spend a lot more money during times of high stress.

Right now I am studying for law school finals (First exam is on Wednesday), revising my resume, preparing to apply for a new job, and doing prep work for an August job fair where all info must be submitted by next Friday.

So what does that mean? A lot of eating out on the fly, no cooking, lots of coffee, and Chitowngirl seriously over budget. I already spent my personal, irregular, and grocery budget for the month and it is on the 6th. I am sooooo in trouble. Thank goodness for savings. =)

Initiated CC Balance Transfer to Pay Off HELOC…

I decided to go ahead with the balance transfer. I called all of my credit card companies to see what offers were available and saved my favorite and most trusty card for the last call. They came through for me again. I got an offer for 1.9% until February 2007 and I got the transfer fee waived. Yipee!!!

So the current balance of my HELOC at 10.25% will be paid off from the transfer and savings and then I will attack the new balance on the credit card. This should leave me with just over $3,000 in savings, which will be just fine. I certainly plan to have the card paid off by February. If I don’t, the rate on my credit card is still better than my HELOC at the moment and I can always transfer the balance back to the HELOC if necessary. NOT!!! =)

April 2006 Comparison to the 60% Solution…

60% Solution Plan: The idea is to keep committed expenses to 60% of your gross income and divide the remaining 40% into Fun Money, Irregular Expenses, Long-term Savings or Debt Repayment, and Retirement.

Committed Expenses: Basic food and clothing needs, essential household expenses, insurance premiums, charitable contributions, all bills including non-essentials such as cable, and all taxes, dues, and social security.

Fun Money: Anything you want to spend money on but capped at 10% of gross income.

Irregular Expenses: Vacation, repairs, appliances, gifts, and other less predictable expenses.

Long-Term Savings or Debt Repayment: Long-term savings are automatically deducted to buy long-term investments that are less liquid such as stocks. The idea is to make it harder to spend the money but if necessary the assets can be liquidated and the funds wired to your account. Debt repayment is self-explanatory and can include student loans and/or credit card payments.

Retirement: Retirement contributions to a retirement plan such as a 401k or 403b.

This plan basically has the pay yourself first feature build in. You automate virtually everything. The 20% savings like 401k contributions and long-term savings are automatically deducted. Then you have 60% for committed expenses and the remaining 20% for fun money and irregular expenses.

How I stack up: Basically I don’t. My committed expenses are way too high. Also under the 60% solution, I include my monthly hair appointments and groceries in my committed expenses whereas under the Debt Diet plan, I classify those expenses as Personal Expenses. So basically, the 60% solution is more flexible than the Debt Diet plan, which is why in the short-term the Debt Diet plan would be best to curtail my personal expenditure so that I can contribute more towards debt repayment.

In the long-term, I am hoping to bring my spending more in line with the 60% Solution because it completely takes the thinking out of it. I won’t ever allocate more than 20% towards fun money and irregular expenses so once my student loans are repaid, all of the extra cash flow will go directly into long-term savings and retirement contributions.

April 2006 Comparison to the Debt Diet Plan…

Debt Diet: My actual spending definitely does not conform to the Debt Diet plan.

Housing: I have little control over this figure for now. Currently, I am focusing on paying off my HELOC which totals approximately $25,700 and hopefully with a salary increase next year I will fall more in line with the recommended 35% ratio.

Debt: Currently I don’t pay anything on my student loans and the interest is capitalizing to the tune of ~$500/month. Debt repayment will begin 6-9 months following my May 2007 graduation.

Transportation: Thank goodness one category meets the recommended ratio. I anticipate this figure to improve after my May graduation next year since I will no longer need to drive downtown and park. I can revert back to taking the train.

Expenses: I need to focus on reducing personal expenses. I have a lot of control over my spending so I definitely need to do better in this area. I am getting better but there is always room for more improvement.

Savings: No after-tax savings at this time. Right now and I’m focused on paying off debt. I do however contribute 5% of my gross salary to my 401k, which my employer matches. So every month, ~$450 goes into my 401k.