February 2010 Recap…

The word for the month is "Overspent". I did not do well with my spending.

Thanks to my State and Federal tax return, I was able to post an improvement in my net worth from ($157,379) to ($153,834). I cannot wait to get below the ($150,000) mark.

Here is my Budget vs. Actual expenses for February (rounded):

1. I ran out of garage parking passes so I had to pay $188 for 10 passes this month. I usually have to do this every quarter for occasions where I have to work late or stay after work for an event. On those days which is usually 4 times per month, I drive in to work instead of take public transportation.
2. I spent entirely too much on Food & Dining. My new goal is $50/week and I am going to try to bring my lunch 2-3 times a week. Wish me luck!!!
3. Grocery/Household includes the new garbage disposal for $120.
4. Other miscellaneous expenses primarily include the following:
   
   $150 - Tax preparation fee
   $50 – Charitable donation to the Special Olympics (tax deductible)
   $47 – Medical bill from December physical therapy
   $42 – Fundraising projects including a basket for the homeless shelter
   $24 – Auto repair/maintenance

My credit report for February is clean. My scores have always been in the 700’s and considered A credit. This new VantageScore credit scoring is blowing my mind. I went from A credit to C credit. Below is the reasoning behind my scores:

1. Your average credit amount on open real estate accounts is too low. – Chitown is not getting any additional mortgage debt so they can forget about this one.
2. The available credit on your open revolving credit accounts is too low. – They can forget about this one too because I am not going to incur any additional debt. All of my revolving credit card debt is on one card.
3. The amount paid on your open real estate accounts is too low. – Once again, forget about it. =)
4. The sum of your bank credit card account balances is too high. – They got me here. The credit limit on my Chase card is $24,800 and my current balance is $22,200. I am 90% to max and I need to get this under 30%. I am working on it!!!
   

Expensive Day...

As I reported, my garbage disposal died last week. I went to Home Depot today and purchased a new one. I didn't get the most expensive disposal but it still hit me for $120 including tax. My boyfriend or brother in law will install it for me next week.

I also spent almost $70 on my nephew's birthday gift today. My sister mentioned last night that they needed to buy new forward facing car seats since my nephew is now 1 years old and around 20 lbs. So, I decided to get them a $50 Visa Gift Card and I got him just a touch n feel book from Toys R Us so he had something to tear into. He had a nice birthday. I don't buy my nephew a lot of stuff at all like clothes and toys on a regular basis. So, if the gift card will help purchase a good car seat to keep him safe, then I am happy to contribute. My sister and brother-in-law each have a car seat in their cars and they never ask me for anything.

I did however spend way more than planned.

Free Food...

I opened the door to my neighbor with pudding in hand for my condo meeting. She asked me if that was dinner. I said I might make a grilled cheese sandwich later. Needless to say, after the meeting, she went upstairs and brought me down a plate of chicken and noodles. Yummo!!! She's much older and married and I'm young and living solo so I think she feels like she needs to look after me which is just cute. Nevertheless, that was one less ramen noodle and grilled cheese dinner. =)

I joined my sister and brother in law for dinner tonight and he picked up the tab. I just wanted a chance to see my nephew on his birthday but I got dinner and company out of the deal for free. Score!!!

Finding My Purpose…

Lately I wake up in the middle of the night and can’t go right back to sleep. I sit there and try to figure out my purpose in this life. I am convinced that my purpose is not to just work to pay bills. I find that I don’t have the desire to spend money like I used to in the past. I’ve become more of a homebody because leaving the house means spending money which unfortunately means I just have to work that much longer and harder. I’m tired.

I am 32 and would love a family of my own. I have the cutest little nephew and when I spend time with him, I smile and laugh and find joy in simple things like banging on Tupperware. I’ve got a boyfriend of a year and a half but we’re both not in the best financial condition. You know my finances…just click on the net worth chart to the right. Umm…definitely not ideal.

My boyfriend and I met just after he purchased his own condo in August 2008. He got laid off that December and was unemployed for 6 months. His former employer eventually filed for bankruptcy and liquidated. So…not ideal for him either. It is going to take him some time to fully get back on his feet but he is not a lazy man by any measure and he is much more disciplined with his money. He joined the Army Reserves to pay for grad school so I know he only has a fraction of my student loan debt. He should be in pretty good financial condition in another year and he is employed with a very solid company. The only concern I have is that he may be under water with his condo. It’s plenty spacious though with 3 bedrooms and 3 baths so he could get pretty good rental rates and/or if things work out, there is plenty of room for me there in the short-term.

I often panic and wonder what I really have to offer? I am 32 and my net worth is in the tanker. I do have my own condo with 3 bedrooms and 2 baths and I have a lot of potential. But...I often wonder if this man really wants to gamble with potential? He knows I have another mortgage in student loans and credit card debt but he doesn’t know the full extent. He also knows that I am trying to land a higher paying position and he is very supportive and encouraging.

Last night my Dad was holding my nephew and asked me when I was going to give him a playmate. He said…you’re getting old now. What could I really say in rebuttal? I want kids but 1) there is an order to things in my opinion and I would like to get married first and 2) I can’t afford a child even though I know the child would be welcomed into the most loving of families. My Dad said they would help (can you smell desperation for grandkids) but I pointed to my nephew and said love and enjoy him. And umm...talk to your other daughter Dad…she has a husband AND dual income. =)

Tax Return and TGIF…

I am so grateful that it’s Friday. Today is my Nephew’s 1st Birthday. We are going to celebrate this weekend and give him lots of hugs and kisses. I am going to get him a small toy for his birthday for maybe $20. I re-gifted a $100 gift card that I had left from Christmas to help pay for his party. My sister and brother-in-law were really grateful and I am happy that I contribute even a little bit. It’s not a major party or anything. He just loves Mickey Mouse so that is the theme. The little guy has been such a blessing to the family.

Other than celebrating my nephew this weekend, I don’t have a lot of other plans that require money. I received my State Tax Return for $141 in the mail last night and my Federal Tax Return for $3,670 which was direct deposited today. I went in and made an immediate transfer of $3,000 to HSBC and I will deposit the $141 into my Savings Account at Bank of America. I will keep the rest in my Checking Account with my Employer where I pay all of my Bills and any Irregular Expenses. That account now holds ~ $1,000.

I have 3 savings accounts. One at HSBC with $10,000, one at Chase with $2,000 and I have a savings account with Bank of America that will now have $150. I utilize Bank of America’s Keep the Change Program where my purchases in my Checking Account are rounded off and deposited into Savings. I mostly use Cash and Bank of America for my personal spending.

So there you have it. I am not in "Bad" shape. My Emergency fund of $2,000 is funded. My $10,000 short-term savings account has been fully funded. The only way I see myself funding my $20,000 long term savings goal is with income from a higher paying job, annual bonuses and/or additional law income. Going forward, I need every extra penny for debt reduction.

I Need a Vacation…

Oh my goodness, Chitown needs a vacation. I cannot take it any longer. I haven’t gone on a vacation since I went to Jamaica with my Mom in July 2008. I am slowing losing my sanity.

My finances are in the toilet…Well not really. Everything is paid and on time but it seems like I live just to work and pay bills these days…Enough said.

Last year in June, my Dad suffered a massive heart attack and was literally on life support for 48 hours. Miraculously he is doing much better and cannot wait to golf this Summer.

My grandmother developed a severe case of Alzheimers and the disease is progressing very quickly. She lives with my parents and just woke up one day in October and started the most bizarre behavior. Since she is the oldest living person in our family at 87, we didn’t recognize the early signs like hiding things.

My Mom is having a hard time caring for her because it is a full time job. She is torn about putting her into a Home because she loves her so much but she is not trained to handle her care. The nice homes cost a fortune and I feel guilty about not being in a position to help out with the cost. We won’t just put here any where because the place is affordable. She is loved more than you can imagine and we have to know she will be tenderly cared for as if she was at home. Her social security and pension is minimal so the family would need to supplement the cost.

My parents are retired and my Mom takes care of my Grandma full time. My Dad works part-time just to pay for his health insurance which is almost $1,300 for the two of them. Ridiculous. With being on a fixed income and the increase in medical expenses from my Dad's heart attack, my parents don’t have a lot of extra money.

These are just more factors that fuel my fire to find a better paying position.

$60 Condo Assessment Increase...

So it's official. After the condo meeting last night, my assessments are increasing $60 to $285/month beginning April 1st. It wouldn't be so bad if they included water, heat or anything of the sort. Just ground maintenance, snow removal and garbage/recycle disposal. So that means that I will be forced to eat a few more ramen noodle meals in the near future.

Garbage Disposal is Dead...

My garbage disposal died last week…just took one last breath and died. I thought it might just need a little break but no...it's dearly departed. It is probably the original disposal. I’ve been living in my unit for 7 years.

So, I am going to price them this weekend. Based on Home Depot’s website, I am thinking that it will cost between $100-$200. My brother-in-law is pretty awesome. He is willing to install it for me.

Thankfully, I get get my once a monthly salary deposit on Thursday. Just one more thing…

Daily spending report: $23

$3 - Lunch
$20 - Taxi

Trying to land a new job is expensive. I work downtown Chicago. I had a networking dinner last night so I drove to work but instead of taking my car out of the garage, I took a taxi to the restaurant. Valet dowtown or another lot could have cost me just as much.  

I pay $188 for 10 parking passes at a downtown Chicago garage using my employee discount. Otherwise it would cost me $31/day to park on the occasional days when I have to stay after work. Since I ran out of passes this month, that $188 was an extra expense I had to bear. I usually drive in to work no more than 4-5 times a month so I find that I need to purchase passes about every quarter. 

Chase Cancelled My Checking Account...

I logged into online banking this morning and Chase cancelled my checking account due to inactivity. I swear I used the account within the last 6 months but they cancelled it anyway.

Chase is not my primary bank but I kept a checking account with them along with my local emergency fund since they're pretty much everywhere in Chicago. Now, I feel like I am at a disadvantage because I cannot easily transfer savings to checking in the case of an emergency to use my debit card. So, I am thinking that I may just transfer my $2,000 Emergency Fund to Bank of America.

I will be happy to rid myself of Chase completely once I pay off my $22k credit card balance. This may add fuel to my fire to try to eliminate this debt sooner rather than later.

Condo Assessment Increase…

Can Chitown get a break????????

My condo assessments are increasing at least $30/month beginning April 1st. They may increase $60+/month due to my neighbors vacating their unit and subsequently declaring bankruptcy. We haven’t received any assessments since April 2009. So my monthly assessment of $225 will probably increase to approximately $285 by April 1st. Ugh!!! Our association is so convoluted. We have one main association and then I think 8 different associations for each building. So we collect monthly assessments from each unit owner and then write one check for the entire building to the mail association. My condo association consists of 8 units.

Since we didn’t get income from the unit for almost a year, our reserves are low. So, not only should each of the unit owners pay $30/month to cover the one unit until we receive payment, we really need to put up an additional $15-20/unit to put our reserves back to a reasonable level.

Our association of 8 units is meeting this Wednesday at my home and then the main association meeting is a few weeks away. Oh boy!!!

Daily Spending…

So last week I spent way too much on food. I realized that I was buying both breakfast and lunch out of pure laziness. I was buying yogurt parfaits from the cafeteria at $3.33 a pop for breakfast. Then I was spending ~ $10/day on lunch and going with my coworkers on their afternoon run to Starbucks and occasionally indulging there as well.

Last week I spent $95 on food & dining. I would like to keep this at $50/week maximum. I would really like to keep it down to about $30/week. I am a single gal and I don’t really cook. I tend to spend a mint in the grocery store so I try to stay out of there as much as possible. I have staples at home and tend to buy lunch but make some kind of dinner at home or I eat at my parent’s house when I go over to visit.

I spent the sum total of $5.00 today. $1.00 for parking and $3.10 to be exact on chili from the cafeteria to go along with the chicken breast I made last night. I also brought some yogurt from home for breakfast. I am making dinner tonight so I don’t have any plans to spend any more money today. If my coworkers go out for coffee. I will go for the walk but I won’t get anything. I’ve done this before so they won’t look at me all strange and make me feel cheap. Starbucks is super expensive.

Weekly Spending Report – 2/15/10 to 2/21/10

Total Amount: $439

$150 – Professional Fees (Tax Preparation)
$100 – Business (Law Fees)
$95 – Food & Dining
$80 – Gifts (Dad’s 62nd Birthday)
$13 – Grocery
$1 – Transportation

Facebook...

I am going to put it out there to my 400+ friends on Facebook that I do real estate closings on the side. Hopefully I can generate some additional income throughout the year. 

I want to eventually become a Banking/Finance associate at a firm. I should be able to leverage off my 10+ years of Banking experience in large corporate, middle market, small business and loan workout.

We'll see. Other than paying for the professional writing course, I am trying to make it another no spend day. My tax refund is $3,600 so I am going to put $3,000 into savings and use the $600 to pay for the course which costs $595. 

I should have my return direct deposited within the next 2 weeks.     

No Money Day...

I didn't spend any money today. Gold star for Chitown. =)

Looking for a Blogger Like Me…

Anyone know of another blogger trying to fight off he debt monkey? As you can see from my blog roll, I read a lot of PF Blogs but none of the writers are like myself.

Can anyone direct me to someone also trying to get debt free and achieve a positive net worth?

Thanks a lot!!!

2009 Tax Return...

I finally filed my 2009 taxes and I will receive a decent return. I will get back a little more than I expected so I am going to be able to fulfill my $10,000 short-term savings goal. I currently have $7,000 in short-term savings with HSBC. I will transfer another $3,000 once I receive my return and keep the entire $10,000 balance out of reach. I also have $2,000 in an Emergency Fund at a local bank.

I don’t have a clue right now how I am going to fulfill my $20,000 long-term savings goal but once the $10,000 short-term goal is met, I am going to shift my focus completely to debt reduction.

Painfully Slow Process…

Getting this debt monkey off my back has been a painfully slow process but I have a goal to improve my net worth each month. Unfortunately, I also have a mental block. I am having trouble with slow progress even though I know slow and steady wins the race. Often times I try too hard to push progress that all I do is end up doing more damage. So, I am going to make a constant effort to be content in the short-term with making progress (even if it’s small) and recognizing the small victories.

Cost of Continuing Legal Education…

Well I have been out of law school for 2 years now and working in a non traditional position at a Bank. Since I do not work for a firm per se, I have to pay for my own continuing legal education. A partner at a firm that I work with, strongly suggested that I take a writing course to keep my skills sharp. He says it is one of the biggest criticisms for attorneys that have been out of the practice of law for some time. The class that he suggested that I take starts in March and costs $595. Ouch!

It was not just a mere suggestion either…it was a strong suggestion, particularly since I am trying to network and find a position and he is assisting. He’s asked me about the course several times and I have to bite the bullet and register. I don’t want to give any impression that I am not willing to put in the work when he is sticking his neck out for me in terms of making connections.

I am troubled that so early in the year, I already have to hit my savings for almost $600. Time to file my tax return...

What I Want…

I am going to write here what I really want….My Dream List.

• Associate position in a mid to large size Chicago firm.
• Minimum base salary of $125,000.
• Budget that works within the 60/40 formula.
• Contribute a minimum of 10% to retirement savings.
• Zero credit card and student loan debt.
• Free of student loan debt by age 40 (currently 32).
• Minimum of one year of living expenses in an emergency fund.

2010 is my year...

Well, 2010 is my year to get it all together. I am making some good connections and I hope to land a law position within the next 12-24 months. My current job is stable.

• Current base salary is $72k.
• All CC debt is consolidated at 3% until 1/2011.
• All private student loans are in repayment.
• 1/2 of my federal loans are in repayment.
• The remaining 1/2 goes into repayment in June 2010.
• I have savings from my annual bonus.

Goals for 2010:

• Use only cash and debit cards.
• Live below my means and within my budget.
• No more debt and no credit card use.
• Continue networking to land law position.
• Work to find avenues to increase my income.
• Use savings and not credit for emergencies.

February 2009 versus February 2010…

I just looked back at my sole post for February 2009 when I reported that I was credit card free. I am just so disappointed. I refinanced my home for no good reason only to run up my credit card debt again. Ugh!!! I will make this right.

January 2010 Monthly Report…

January has come to a close. My annual bonus was received and savings allocated. With the bonus came a large $10k improvement in my net worth. I have $9k allocated into savings with the following breakdown: $2K - Emergency Fund and $7K - Short-term Savings. My spending is a lot better and I am looking forward to making progress in 2010.

January 2010 Update…

I am only a couple days away from receiving my annual bonus and this is the first year that I will be putting it into savings instead of paying down debt. I no longer carry any credit cards in my wallet but I have adequate funds in my Checking/Operating Account for any Irregular Expenses.

From my bonus and a little extra money that I put aside, I am going to deposit $2,000 into a separate emergency fund and $7,000 into my HSBC account for Short-Term Savings. I have a $10,000 goal for Short-Term Savings so I will be 70% to goal. I plan to deposit any tax return that I receive into this account as well so I should be close to 100% by summer.

All of my $23,000 in credit card debt is consolidated on one card with an average interest rate of 3% through 1/2011. I plan to reduce this balance by $500/month through 2010. That is the best that I can do with my current budget.

All of my student loans will be in repayment by June 2010. Right now, over 75% are in repayment with a monthly payment of $850.

Status Update...2010

This is a big month and a big year for me.

I consolidated all of my little credit card debts onto one card at 3% until 1/2011. At month end, I will receive my annual bonus which will net after taxes approximately $6,400. I have a small emergency cushion right now a little in excess of $2,000 so I removed all of my credit cards from my wallet with the goal of no more debt. 66% of my student loans are in repayment. The remaining 44% in federal loans will enter repayment in June 2010. That’s it for now. Stay tuned...

Federal Student Loans...

I downloaded the federal forbearance form yesterday to find out that my lender only allows you to forbear for 3 years. Guess what??? I am already in year 3. So…I haven’t figured out my exact plan of action. About ½ will go into repayment in January 2009 and the remaining ½ will go into repayment in June 2009. Total monthly student loan payments will be approximately $1,300 per month.

$1,300 is a small fortune for a single woman making $72k per year with a monthly mortgage payment that is also approximately $1,300.

Whatever my budget will be…it will be tight. Very, very tight.

Returns & Debt Payments...

I returned $422 worth of new merchandise to stores last night. The amounts were credited to my credit cards reducing the overall balance.

I got paid today. I scheduled the following payments for November:

$233 reduced CC#1 by $200
$530 reduced CC#2 by $530 (no interest for 6 months)
$300 approx. in returns reduced CC#3 by $300
$158 to pay off CC#4
$641 reduced SL Debt by $250

Overall Debt Reduction (thus far) for November: $1,560 (including returns)

Cancellations...

I called to cancel my efax service but instead accepted a permanently reduced rate to $12.95 from $19.95. I can still cancel if necessary.

I also called to cancel my World Vision Donation which really hurt my heart. I will sponsor another child as soon as possible.

November Plan...

I get paid once a month. Here is the plan for November. I get paid on Thursday.

Reduce CC #1 by $200.
Reduce CC #2 by $550.
Return approx. $300 in merchandise and pay the min on CC #3.
Return approx. $200 in merchandise and pay off CC #4.
Make $640 private student loan payment.
Submit application to defer federal loans for one year.
Temporarily cancel charitable contributions and efax service - $50/month.
Bring lunch at least 2 times per week.

Time to Get Serious...

I am officially back and will be coming here more often to really give you the deal on my finances and my plan to get out of debt and save. I am really serious about getting this debt monkey off my back so stay tuned and see it happen.

Here is my current breakdown. I don’t need any criticism on the current state of affairs but feel free to criticize me on any of my future choices and to cheer on my successes. Thanks a lot. =)

*** Rounded Figures

Emergency Savings – $2,000
Credit Card #1 – $10,900 (Promotion APR of 3.99% fixed through 12/2010)
Credit Card $2 – $3,200 (Furniture Account – 6 months deferred to 3/2010)
Credit Card #3 – $1,900 (Revolving Account – Variable 7.99% rate)
Credit Card #4 – $300 (Revolving Account – Variable 17.99% rate)
Student Loan Debt – $232,000
Mortgage Debt – $122,300

First Student Loan Payment

I made my first student loan payment yesterday to the tune of $641.00. It’s definitely time to get focused and get out of debt. I have a solid plan so now it’s just time to execute.

Stash the Cash…

I decided to save my year end bonus in my HSBC account (if I get one) and to keep 2 separate savings accounts going forward. My hope is to continue to stash away all of my bonuses over the next 5 years which should leave me with roughly $25k if all goes well.

My plan is to also forbear my federal student loans for one more year and divert any extra money towards paying off my credit card. If I get the anticipated salary increase, the credit card will be repaid before the promotional APR expires and before all of my federal loans enter repayment after the forbearance period.

In the meantime, I will continue to make my private student loan payments and save $300/month into my savings account. If I receive any kind of tax return, I will put that money into my operating checking account so that I can pay for things like birthday gifts and other irregular expenses throughout the year.

What to do with my bonus…

I have committed to saving $300/month, paying $325/month towards my credit card debt and not incurring any more debt. My student loans enter repayment in September and I will begin paying the minimum on those which currently includes a mixture of interest only and principal and interest. My hope is to pay off the credit card debt and secure a salary increase in time to account for the increase in my student loan payments to principal and interest.

I am still trying to decide whether to take my annual bonus (if I get one) and put it into savings or whether I will try to tackle Student Loan #1 (see right column). Last year, my bonus (delivered at the end of January) after taxes was about $4k. I am thinking that it will be more like $5k this year since I got promoted to Vice President and my salary increased slightly by $5k. I am pretty certain (90%) that I will get a bump in my salary soon because my discussion with my boss have yielded an understanding and agreement that I am underpaid compared to my peers and for my level of experience and workload.

The problem that I have faced which has led to the increase in the credit card debt is not being prepared for unexpected expenses. When that happens, I am forced to use my credit card. If I have the reserves in saving, I won’t need to use my credit card and I can simply pay cash for those expenses. They have ranged from $1,000 for my car last month to the need for glasses which was $400 in June. All of which are now on my credit card.

I am leaning towards putting the bonus money in my HSBC savings account and leaving it there in case of an emergency and still committing to saving $300/month. If I pay interest only on my student loan debt and continue to save and reduce my credit card debt, I can see an improvement in my net worth next year.

Student Loan Update…

So I called my student loan provider because I submitted an application for interest only on my private loans and the payment seemed much higher than anticipated at $641.00. I applied for the Easy Pay 3 Plan where you pay interest only for 2 years, followed by 3 years of interest and ½ principal and then the remaining term is straight-line amortization principal and interest. My private loans have a 20-year or 240-month term.

I learned that only 3 of 8 private loans qualify under the plan because my payment has to be at least $50.00. So, I am forced into straight-line principal and interest payments on the remaining 5 private loans. The representative was really nice on the phone. Apparently, the student loan company is not budging on the private loans but they are willing to work with borrowers on their federal loans.

Right now, the representative said she is seeing no limit to the time borrowers get to forbear their federal loans. I am toying with the idea of requesting another year of forbearance for my private loans so that I can more aggressively pay off my private loans.

I may also get a salary increase because I am currently not receiving anything close to equal pay for equal work. My responsibilities at work have grown in size and complexity so I am hoping for a salary adjustment in the coming months. This would really help out a lot. My current salary is $72,000 and I am trying to get to $90,000 in the next few years where I will be more comfortable and able to support my entire student debt loan on a principal and interest payment. If I get a $12,000 - $15,000 bump, I won’t consider trying to jump ship to another financial institution. I really like my job, place of work and the people I work with. We’ll see.

For now, I automated payments to my credit card each month at $325.00. The $11,000 balance is fixed ½ at 2.99% and ½ at 3.99% until 5/2011 and 11/2010, respectively. I also automated savings of $300 per month. My current savings account balance is $2,000. My first $641.00 student loan payment is October 5th.

Update...

I have credit card debt again. My student loans are entering repayment. I make my first private student loan payment in October. =(

5-year goal:

• No more debt.
• Pay off credit card debt.
• Pay off $60k in private student loan debt (1/2 of my private loans).
• Pay interest only on federal loan debt.
• Save $20,000 emergency fund.
• Save $300/month towards long term savings.

Status:

• $72,000 base salary.
• $110,000 in federal student loans.
• $120,000 in private student loans.
• $11,000 in credit card debt.

Chitown Update…

Hi everyone! I am still alive! LOL

I am credit card free and working on a plan to attack my student loans and $1,500 in medical debt. The medical debt is from a surgical procedure I needed to have in December and right now I need to pay my $1,500 out of pocket maximum. My private loans enter repayment in April and I have the wherewithal to at least pay interest only on all my loans. I am hoping to get one more 6-month extension through October because right now, I have little to no savings and I would like to have the opportunity to save at least $2,000 in an Emergency Fund and payoff the medical bill. I still haven’t filed my taxes so I may be able to payoff some of the medical debt with my return.

Good news…I received a promotion and raise at work and my salary got bumped up to $72k. So while I am still behind the buck in terms of salary, I increased my income almost $20k in less than a year. I have to be pretty proud of that.

I am doing a little legal work on the side for an attorney who has a fairly successful private practice. So, I am finally getting some rewarding legal experience. She is also going to pay me on the cases that I work on and that she wins. Per her request, I am keeping track of all of my time and submitting it on a weekly basis. I haven’t received any pay yet but I hope to earn some money this way in the future. I also volunteered to do some pro bono legal work so I am well on my way.

Thanks to all who continue to stop by here. I appreciate all of the encouragement I have received of the last couple of years. =)

Refinance Complete & Credit Cards Paid…

The refinance is complete and the new loan funded. I took the refinance check over to the bank on Tuesday and paid on my CC right away. I got paid yesterday so I scheduled the last of the payoff on my CC for today. The refinance was $1,100 short of completely paying off the CC but since I don’t have a mortgage payment for the month of November, I was able to use my regular mortgage funds to pay off the remaining balance. DONE! I am so excited. I don’t have a lot of reserves but I have enough money to make it through the rest of the month. I have a pretty strict budget going forward so I am going to have to be disciplined from here on out.

My family decided on a grab bag for Christmas so I don’t have to worry about Holiday spending this year. With my sister’s first child due in March 2009, we are all aware of our spending and we would rather buy stuff for the Baby once the time comes.

As for my little car accident, I decided to put in a claim on my insurance to get my car fixed and my garage repaired. The damage to my car was a little more than I thought and since I plan to drive it for many more years, I decided I better take care of it as much as possible. The total end cost will be the $250 deductible. In the meantime, I have to put up the funds and get my garage fixed for $400. My insurance company will reimburse me so long as I keep all of my receipts. I am going to take pictures of all the damage this weekend. I am still embarrassed that I even backed my car into my garage. I mean, WHO DOES THAT???

The only last expense looming is a $260 medical bill which I also have the money to pay. I will probably wait to pay it with my December paycheck since I only get paid once at the end of the month and I haven’t received the bill yet. I am sure the payment terms are Net 30. So I will send a check to pay it off at the end of the month when I get paid.

So, there you have it. I am finally CC free. Now, time to find a better paying job and stick to my budget. Coming soon…

Refinance Complete...

The new loan will fund on Friday and my credit card will be paid off by the end of the month. I had another small accident on Saturday where I accidentally backed into my garage door. That is going to cost me $400 to repair and I still have a $270 medical bill to pay. At the end of this month, I will have sufficient cash flow to 1) pay off my $24,583 credit card balance, 2) pay for the garage repairs and 3) pay the medical bill.

What is helping me is that I do not have to pay a mortgage for November. Once the refinance is over, I will also be able to establish a $1,000 Emergency Fund.

Getting Some Relief…

I am in the process of refinancing my condo for 30-years at 5.875%. I started the process almost a month ago and I have been wavering every since but once my mortgage escrow increased $100 anyway due to higher property taxes, I decided it was the best move.

With the escrow adjustment, my mortgage payment went from $875 to $975. My mortgage will just increase slightly more to $1,045 with the refinance. I am closing the loan on Monday. My condo appraised at $165,000 and I am doing a 75% LTV refinance at $123,750 which will pay off my current $96k mortgage and provide me with roughly $24k to pay off my credit card balance in full by month end. I don't have any plans of relocating or selling my place anytime in the near future.

My student loans begin repayment in January, April and June 2009. It will be the first time in almost 12 years that I don't have credit card debt and God willing, it will be the last time. With the refinance, I will still have roughly $40k in equity in my home and a few months to save an emergency fund before my student loan payments begin.

While some may ask, what are you doing? A portion of my student loan and credit card debt went to pay off a $25k HELOC which at the time had a variable rate of over 10%. The HELOC was the result of an 80/20 home purchase that required no money down in 2003. The truth. I purchased a home that I couldn’t afford at the time and I did not have sufficient reserves. The HELOC was at a low 4% variable rate but once the Fed started increasing rates, the payment on the HELOC became too high. So, I refinanced the balance onto student loans that weren't in repayment and my credit card at a lower fixed 3.99% rate.

I am in a little better spot than most people today in that my property value increased from $129k to $165k, I have a decent paying $67k job and I have excellent credit.

With the refinance, I will be able to start paying on my student loans that are currently capitalizing at least $900 in unpaid interest per month onto my student loan balance. I have a complicated situation but all hope is not lost. It is going to require a lot of discipline and I will also have some reserves soon.

Please keep me in your thoughts. Thanks a lot!

Tight Job Market…

Two Chicago law firms to lay off attorneys and staff. This is going to make it even harder for entry-level attorneys like myself to find positions. There is an oversupply of experienced yet unemployed attorneys here in Chicago.

What Happened...

Credit Cards:

I had some unexpected expenses and start-up costs for my own firm. In order to get the legal experience that I need to break into a law firm environment, I started to do some research and writing for attorneys who own their own firm. They suggested that I start my own firm so that I can seperate my regular income from my law firm income and write off expenses. So several thousand went towards getting a laptop and starting a small firm of my own. Additional expenses that I have incurred on a monthly basis are also for my business so that I can have online access to legal resources and professional liability insurance. I haven't generated enought income to pay back those start up fees. I am still actively looking for a better paying permanant position but as everyone knows, the market is tough. I am paying between $500-$600/month on my credit card which is fixed at 2.99% and 3.99% for the life of the balance. I have only one credit card with a balance.

Student Loans:

My loans are still in forbearance. I just consolidated the totals in the chart. Before I had $10,000 there but that was just my goal payoff for the year. Starting in January, I will beging some type of repayment on my student loans but I am not sure how much. Things are really tight.

Charts...

See the charts to the right. Need I say more.

Short Update...

I am still alive. My personal tank of energy completely ran out so I needed to take a break. Everything with the new job is going well. I am still looking to land with a firm by next year but the experience I am gaining is invaluable.

The finances are still struggling but I am making the best of it. The next few months should show some significant improvement so I am happy about that.

Hope all is well with everyone.

Update on Chitown…

My new job is going well. Today makes 2 weeks. It’s both challenging and interesting and the days move by really quickly which is a definite plus. I have been much busier than usual so I don’t have as much internet time.

My debt refinance is complete, I paid my parents back in full, I have a plan going forward and I am doing well with my spending. In the next week, I will post the final damage, the plan going forward and I will begin posting a little more regularly as I get back into the swing of things.

Thanks for keeping up with me guys. =)

New Job...

I start my new job tomorrow at the Bank. My new salary kicks in at the end of the month since I am on monthly pay.

I decided to refi all of my credit card debt into one balance fixed at 3.99% for the life of the loan. Instead of 36 months, it will take me 48 months but I can now attack my student loan balances. The consolidation will be complete by the end of the month and I also made sure that I will be able to pay my parents back in full by the end of the month, if not by the end of this week.

Hang in there with me guys. At the end of the month, the picture will be bleak but from here on out, it should finally improve each month. No more catching up, just getting ahead.

Thanks for all of your support, comments and encouragement.

Debt Refinance/ Balance Transfer…

I am so tired of catching up!!! I currently have two credit cards with a combined balance of $9,300, $2,400 and $6,900.

The $6,900 balance is the remaining balance on a $25,800, 20% second mortgage resulting from my 80/20 home purchase 5 years ago. The current rate on this credit card balance is 3.99% fixed for the life of the loan. I have been paying $225/month to have the balance paid off in 3 years by 12/2010.

The $2,400 balance is the result of spending in March 2008. Thus far, I have been fortunate to be able to pay off the balance on my revolving card in full each month but there is no way that I will be able to pay this balance off by the end of the month.

My new $67,000 salary will not kick in until May 1 and will be first reflected on my paycheck at the end of May. Until then, I am in a cash flow crunch. I can continue to find ways to pay off the $2,300 balance or I can refinance the balances together and increase my monthly payment from $225/month to $250/month and have it repaid within the same 3-year timeframe. The payment will only increase to $250/month because I will pay down the balance by $800 within the next month with my tax rebate check and my regular monthly payment.

I just took a look and my credit card company is offering a 3.99% fixed rate for the life of the loan. For simplicity purposes, I am thinking about refinancing the balances together at the 3.99% rate and increasing my payment to $250/month. I can keep the balances separate but I like the idea of paying just one company, once a month.

I am just tired of being behind each month. I feel like if I refinance the balances together, then I can finally start attacking my debt in an orderly fashion, including my student loan interest which is accumulating at an unbelievable pace. So far, each month I have been so behind that any extra cash flow goes towards paying off my revolving balance in full versus have a balanced plan towards paying off revolving debt and attacking my student loans.

With the balance transfer, I would refinance my credit card debt to 3.99% fixed for the life of the loan, pay off my parents in full and finally be able to completely move to an all cash/debit system so that I can completely eliminate credit card debt from my life within 3 years.

March 2008 Goals in Review…

Pay off Revolving Credit Card Balance with Tax Return: $2,800

I am in a serious cash crunch to say the least and I have had to pay for a number of unexpected expenses including insurance deductibles and required minimum continuing education. I paid off the previous month’s balance of $2,700 in full but I have a new $2,300 balance to pay off for March. Don’t ask. I don’t know exactly how I am going to pay that balance off in full.

Pay Parents Back with Tax Return: $600

I decided (with my parent’s permission) to pay them back $100 per month. I am going to try to accelerate that payment but I already paid them back $100 in March and I gave my mom a $100 check last weekend for April. They really don’t’ care but it matters to me. I may have enough money in the coffers to pay them back by the end of the month.

Land a New Job and Higher Salary: Min $90k

I landed a new job but not with the $90k salary. I have a new job that I will be started on April 16th with a salary of $67k, up from $55k. I am still looking and posting for more positions at a higher salary. I am hoping to land another position by the end of the summer. This new job is still a step in the right direction and will ease my cash flow crunch.

Update…

There hasn’t been much to report as of late. I just got good news that a friend from law school landed a job at a mid-size firm in Chicago and I am so happy for him. I’m a little jealous too because he is in the Firm’s Restructuring Group which is the type of law that I want to practice. I am hoping to make the transition to a Firm by year end.

I am working on a plan to pay down debt over the next few months. My goal is to pay down $5k in loans this year and this is a lofty goal considering my lower income level. Despite accepting a job here at the Bank, I decided to send out my info anyway and apply for jobs in hopes of landing a higher salary sooner rather than later. I also want to keep my interviewing skills fresh.

That’s about it. I should be posting my new budget soon and my monthly report for March. My first day in the new position is April 16th but I’m not sure when my new salary will go into effect since I am paid just once at the end of the month.

Job Offer…

I received and accepted a job offer from the Bank. I will be moving into the position within the next 30 days. I am excited and a little nervous. The job definitely did not come with the salary I was hoping for but I did receive a $12k increase which is going to help out a lot. Additionally, sometimes you need to force change in order to get your career moving in the right direction. I have been working in the same position since graduating from undergrad 8 years ago so I need something else on my resume. I got too comfortable so I am taking this position to force change on myself, to learn new skills and get more experience. I am still looking to move into a Firm position within the next 12 months so this is hopefully just a stepping stone on my way to practicing law.

February 2008 Financial Review…

In February, my private loans capitalized so there was a huge increase in my student loan balance. All the principal and accumulated interest got rolled into a new loan balance on 8 different loans. My car if finally depreciating a little quicker and my 401k balance held relatively stable despite huge fluctuations during the month. Liquidity continues to be an issue as I don’t have any huge reserves.

Credit Scores for February

Transunion: 750
Equifax: 730
Experian: 777

March 2008 Goals…

• Pay off Revolving Credit Card Balance with Tax Return: $2,800



• Pay Parents Back with Tax Return: $600



• Land a New Job and Higher Salary: Min $90k

February 2008 Review…

Move to an all cash/debit system…

Not yet. I don’t foresee this happening until I land a new law position and until I pay off my credit card balance in full which should be this month.

Apply for law jobs…

I have all of my cover letters completed and my resume, writing sample and transcript copied but I haven’t sent them out. My first preference is the position I interviewed for last week. When/If I get that position, I can save the copies for later or send them out in the month of March is necessary.

File Tax Return…

Done. I filed my tax return over the weekend and should receive a refund in about 10-12 days electronically. The total for fed and state is about $3,300. The refund will go to pay off my accumulating credit card balance in full and repay my parents back for the help they gave me with my car/home repairs.

Thoughts on Second Interview…

The second interview yesterday went very well and I believe that I will get an offer. The good thing is that the Bank is looking to hire 3 Consultants in that area so my chances improve significantly. This would be a great move for me in terms of moving my career along.

I had a great day yesterday starting out with the good interview and followed up with the last Black History Event for the month at the Bank. There was a ceremony where educational and career achievements for African American workers at the Bank were recognized and celebrated. I got recognized for getting my law degree and passing the bar exam.

At the event, I was able to network and talk to a lot of people including the CEO of the bank (I had to pinch myself) and several other member of the Executive team. It was such a tremendous opportunity and one of the reasons why I love working for my Bank in particular. Where I work, we are a large regional bank with a close feel that I don’t think you get at other larger international banks. This is just one of the many reasons why I want to stay there because I can see myself getting the opportunity to advance. It amazes me also how much more comfortable I am with networking and meeting people. Two years ago, I would have broken into a cold sweat and quickly walked from the room hoping nobody noticed.

I will keep you posted on how things turn out. When all goes well, I should be transitioning from my position by the end of March. Either way, I feel like things will be getting better for me and soon.

Second Interview…

I just got a call from HR and I made it to the second round of interviews for the position at the Bank. This is excellent and welcome news especially since it’s my hope that this job will open doors for me in the restructuring / bankruptcy area of the law in the future.

I will keep you posted on how things go but the position will earn me no less than $90k/ year which will be a significant boost in income from my current $55k salary.

On a side note, my current manager is making me give up my flex schedule now that law school is over. While I knew it was coming, it is and was my hope that I would land a different position before having to return to a full five day workweek. I have the 4-day schedule for another month so I am hoping to make my transition to the new position within that timeframe. Besides, we’ve been so busy that most weeks, I end up working 5 days anyway and working late.

I’m Back…

Sorry for the lack of posting. I’ve been really sick with a sinus infection and I am on vacation this week. A lot has happened recently. For one, the interview went well and I am waiting to see if I get a call back interview. The HR representative spoke with the hiring manager and he was impressed with my interview so my fingers are crossed that I will land in the second round.

I went to the doctor today because my throat has been sore for 8 days now despite the antibiotics. Of course since I was going to the doctor, I automatically started feeling better (why does that happen?). One thing that wasn’t better is that my chest was still very congested and I would get winded very easily so she prescribed a different inhaler for my asthma so that my chest can clear up. Hopefully, I will be in tip top shape by next week.

I got into a car accident this morning on the way to the doctor. I was on the expressway (Chicago’s famous Dan Ryan) and a car in front of me thought he could cut into the next lane but couldn’t. So, he played car hopscotch and jumped right back into my lane and when I slowed down, the guy behind me rear-ended my car. I had to wait for the state police but despite the large impact, the damage is minimal.

On Saturday, my car started making the worst grinding noise and I knew something was wrong with the brakes. I was right. On Monday, I took my car in and I needed new brakes. That was $280.00

So, my luck hasn’t been so good lately in the financial arena and I am financing everything with my credit card which will have to be repaid with my tax return. I am looking to file my taxes by the end of next week. With everything that has happened to me in the last few months, I am trying to keep a smile on my face, think optimistically and believe that good things to come are right around the corner.

Charitable Donation…

I made a $35 donation to SOS Children's Villages today as part of Wooly Woman’s challenge over at Clawing Our Way. I have a $500 charitable goal for the year and I also make a recurring monthly donation of $35 to World Vision.

If you can make a donation to SOS Children's Village, please do and let Wooly Woman know so she can add the donation to the final tally. Let's give from the heart and help others less forunate. Despite my debt load, I am truly blessed.

Sick Again…

I am sick once again. My throat is on fire and my head is hurting. Why am I at work??? This is the fourth time since Christmas and I am just plain tired. I called the Doc yesterday and she said that it is probably a sinus infection that won’t go away without medication. So, she called in a prescription for me and I’m on antibiotics. Great!

Interview Update…

My interview yesterday went well. The hang ups that the guy had were my lack of banker experience and minimal experience dealing with clients. So, I had to sell myself on my strong ability to interact with people and my strong negotiation skills. I think I did a good job but I have to say that I am a little frustrated with the idea of working for a company for 8 years and having them continue to tell me that I lack experience in one area or another. This is especially the case when the only way I can the experience is to get an opportunity to advance.

I will keep you posted on how it goes but I am off on vacation next week. While I am off, I will be applying all over the city for jobs in the area and just mass sending out info to firms.

Retirement Allocation…

For the last few months, I have been making contributions to my 401k but the balance has not moved from the $27k - $28k level. I am thinking about moving all the funds to the balanced fund which is a mix of 60% equities and 40% fixed income.

What do you think??? Here is my current allocation. I am 30-years old and the current balance is $28.6k.

Here is the performance for the last 12 months.

Applied For Another Position…

I applied for yet another position last week at the Bank. Not to worry, I am also sending out information to law firms. I am just trying to hit all of my bases to increase my chances of success.

The position at the Bank would provide me with some transferable legal skills so it is a positive move in the right direction. There is another possible position here at the bank that may materialize in the future. However, I would prefer the one I posted for because it at least involves a small legal angle.

I got a call from Human Resources last week to ask me a few questions. Overall, I believe that I am qualified for the position and I am eager to move my career along. I have an interview on Wednesday.

February 2008 Goals…

I know this post is late but here are my goals for February:

Move to all cash/debit system

• I have a little cash so I am moving to an all cash/debt system as of today.

Apply for Law Jobs

• My goal is to land a law position within the next few months. I want to get out my information to firms by the end of the month.

File Tax Return

• I have yet to file my taxes. I am still receiving information. I just got more tax forms in the mail yesterday but I think I have everything now.

Don’t Forget to Vote…

January 2008 Recap…

Not much to report. January was not a good month. I put a portion of my student loans in forbearance until 2/2009. My private loans enter repayment in 4/2008 and I will be putting those into 6 months of forbearance.

My goal is to secure a law job within the next two months.

January’s credit check was good and clean. My credit scores are as follows:


Transunion: 738 (750 in December)
Experian: 777 (777 in December)
Equifax: 730 (733 in December)

I am not entirely sure why my credit score declined in January. It may be because Equifax was late in reporting two of my student loans. I am still pleased with my scores.

Review of January 2008 Goals…

It was a tough month for sure but here is how I did with my January 2008 Goals. This is the first time I set monthly goals but I actually liked the concept so I will continue in the future.

1. Move to all cash/debit system
   
   Negative. What cash? Broke is the word of the month.
   
   
2. Set up automatic payments for my student loans
   
   Done. Not only did I set up automatic payments for my student loans, but I also put the federal loans that entered repayment 1/1/08 into forbearance for 12 months since I did not get the legal job and my cash flow is strained.
   
   
3. Get job offer to join the Legal Department
   
   Negative. I got turned down for the position but I did have someone who has decision making power ask me if I would be interested in another position. It’s non-legal but it would be a step up in pay along the lines of the legal position that I posted for. Although it is non-legal and not particularly the direction I want to go in, I can’t be picky at this point if the job is going to increase my salary from $55k to at least $85-$90k. I have to get out of this debt chokehold.
   
   
4. Put $1,000 towards Emergency Fund
   
   That would also be a negative. Not only is my emergency fund depleted but I owe my parents $600 for the garage genie and my new windshield. My mom said there is no rush to pay them back. When I asked if I could pay them back with my tax return, she said sure. Thankfully, I have wonderful parents. They helped me out tremendously financially and also by making the phone calls to being there to get everything fixed and replaced.
   
   
5. Pay off December/Christmas Damage: ~ $3,770
   
   Done. It was paid off with my bonus which was supposed go towards repayment of my cc/heloc.

It was a tough month for sure. No doubt.

Feeling Cursed…

Someone must have put a hex on me or something. Last night when I got off the train, a storm was brewing which was blowing freezing snow all over the place and my car was covered with ice. There were whiteout conditions where you could barely see 5 feet in front of your car. So, I put the heat on to defrost the windows.

Well, as I was driving home later that night, I realized that a divot that I had in my windshield from a rock this summer spread the entire width of the windshield. D*mn! So, of course that has to be replaced now because 1) I could get a ticket and 2) it is rather distracting.

The cost will be $225.

So, I get home safely and the wind created a huge snowdrift against my garage door. Once I pull in, the garage door won’t close/stay down because there is too much snow compressed under it. After clearing the snow and trying several times to close the garage door, I am starting to give up and think there is something just wrong with the garage door…again. So I look up at the garage door genie (For those of you who don’t know, it’s the electric box on the ceiling that automates the garage door.) and it smoking, I mean really smoking.

So imagine this…I panic like SH*T, OMG, FIRE, call the fire department….NO…NOT YET…get the fire extinguisher. So I am running to the door between the garage and my condo and of course it’s locked. Fumble with the keys like in my movies when you are like (Lady come on!!!) and finally get it open. Then I am running to my door, dropping every bag on my shoulder and fumbling yet again with the keys. As I try to get my condo unit’s door open, I am thinking…Please God…let the extinguisher be where I remember…Please. Finally I get to the extinguisher and of course, I have no freaking idea how to use it. So, I am running back to the garage, hurriedly reading the directions and finally spraying the thing. Great, the smoke is dying down, it smells, and man…the ceiling in the garage is a little browned. Thank God that crisis was averted. Mind you, it’s like 10 o’clock at night and I know my neighbors are asleep and anyone who rides by will think I am a nut.

So finally, I was able to move my car back outside, manually lower the garage door and unplug the genie from the electrical socket. So, I obviously need a new garage door genie (I have the original one which much be at least 15 years old).

Cost + labor will be $360.

So, today is a $600 day for me. It has to go on my credit card because Chitown is officially flat broke. Shoot me where I stand!!!

Attacking My Student Loans…

I decided to attack my student loan balances before paying off my credit card. As it stands, my credit card/heloc stands at $7,500 with the balance fixed at 3.99% until paid in full. My private student loans carry an interest rate just below 9% and are killing me with interest every month.

I am committed to paying $200/ month on my cc balance which means it will be paid off in about 3.5 years and I will pay less than $600 in interest. I am also committed to ensure that I do not accumulate any more debt from this point on. It makes sense to me to throw whatever free money I have towards my student loans so that the load gets a little lighter.

I DIDN’T GET THE JOB…

I didn’t get either of the law positions here at the bank. There are no real words to express the disappointment that I feel. The hiring manager said that she would have hired me in a second if I just had 4-5 years of experience. She complimented me, said she was very impressed by me but said that she felt like she would be doing me a disservice because the department did not have the time and resources to train me properly. She was very kind and this is a person with a lot of power and influence, she offered to help make a few connections for me with other firms in Chicago, and even gave me a hug after I reached out to shake her hand.

With everything going on, I really needed something good to happen for me so I am tremendously bummed out right now. I wanted very badly to have some good news to share with you, my family and friends. I feel like I am somewhat letting them down as well. So, it’s back to the drawing board. I am probably going to take off a few days to research and apply for other positions.

I faxed over my forbearance request for the loans that entered repayment in January. I am going to be doing the same for my private loans in another month and again in May for the federal loans I already have in forbearance. In one simple word, I am TIRED.

Crazy Market…

There has been a lot of talk about a recession. A Recession is two consecutive quarters of the US economy slowing down. Thankfully the market rebounded yesterday. I guess I am not too troubled because at 30, I am in it for the long haul. The only thing that is truly bugging me is that I have been hovering around the $28k mark for my 401k despite my monthly contributions because of the massive fluctuations. It was my goal to reach $30k by the end of 2007 so to see myself down to $27k makes me a little peeved but I have to keep thinking long-term.

I made it through my second volunteer class for Junior Achievement. Yesterday, we discussed the decision making process and how decisions have either positive or negative consequences. The teacher was unexpectedly absent but the children still behaved pretty well and I was pleased with the lesson.

I am still battling my cold and everyone at work says I sound horrible. Ordinarily, I would stay home and not risk getting anyone else sick but we are swamped at work and still short-handed. Good news is that my second co-worker showed up yesterday and today and he looks better so perhaps he will be coming in more regularly. I know it’s been tough on him dealing with his ailing mother and his own personal health concerns. I am trying to suck it up and be understanding.

Sick Again…

I am sick again. This is the 3rd time in less than 2 months and I am a little irritated. I just got over a cold where I lost my voice about a week ago and here I am again, congested and irritable. While I love Chicago, the weather has been so loopy lately that everyone has the sniffles. While I am not surprised that I got sick, the weather isn’t the only reason why my system is down. The main culprit is STRESS!

You got it…STRESS. I am still waiting to hear about the job in the Legal Department, I am getting all kinds of notices that my student loans are entering repayment, the market is in turmoil which means I have to report yet another decline in my net worth, my managers want me to give up my flex schedule now that school is over and I dread coming to work every day doing my current job.

I just need a break. One break and I can begin to see something positive coming out of all of my hard work for the past 4 years. One good thing that is coming out of this mess with the market is that the interest rate on my student loans went down a little which means less interest will capitalize on my loans over the next few months.

Dream: A Balanced Approach to My Finances…

I wish that I could have a balanced approach to my finances. I love the idea of the 60% Solution and automating my finances. It would be a dream come true to see myself making progress in all areas including retirement savings, long-term investments, debt repayment, and short-term savings. Right now it’s definitely…Look at all that debt Chitown – In your dreams! It seems like something always comes up which lets me know that I definitely need an emergency fund at all times.

60% Solution

60% - Committed expenses:
Basic food and clothing needs
Essential household expenses
Insurance premiums
Charitable contributions
All bills -- even non-essentials such as satellite TV service
ALL taxes

10% - Retirement Savings
10% - Long-term Savings or Debt Repayment
10% - Short-term Savings for Irregular Expenses
10% - Fun/Personal Money

Here is how I stack up today against the 60% solution.



*** With the employer match, the total retirement contribution is 10%.

Note: Edited to include current minimum payments on my cc/heloc and student loans as committed expenses.

Volunteer Work…

I spent the morning volunteering with Junior Achievement. I was a little nervous because I have only volunteered in a camp counselor capacity and this was actually teaching a lesson to 30 students in 8th grade. I have to admit that I procrastinated on going to the school because I was second guessing my decision to volunteer but it was actually very rewarding. I will be going to back over the next 5-6 weeks to teach the remaining lessons on decision-making, education, career options, budgeting, credit and financial risk. Today’s lesson was about choices and self-knowledge.

Essentially, self-knowledge is a combination of your skills, interests and values. When you evaluate your own personal skills, interest and values, you are better able to find and choose a career that you will enjoy and find-rewarding. The kids behaved so well and they had some interesting career choices: school counselor, attorney (Smile), dancer, court reporter, actuary, singer and teacher.

It just goes to show you that when you give, you tend to receive much more in return. I had a blast and I am looking forward to meeting with them again next week. Also, as crazy as it seems, it made me feel more confident about getting up and talking in front of people. More practice is always good and sometimes, kids can be one of your toughest audiences.

Chase Upping ATM Fee to $3…

Chase hiked their ATM fee for non-customers up to $3 effective January 13th. For those of you in the Chicagoland area, you know that’s significant because there seems like a Chase on every corner.

$3 Chase ATM Fee

Credit Card Skimming...

This was an article published on CBS2Chicago.com today on a credit card scam.

Garrett's Popcorn Employee Charged With Skimming

This article just supports my decision to pay for credit card monitoring and it hits close to home.

TrueCredit Monitoring…

I pay for the TrueCredit 3-in-1 credit monitoring service and received my first alert today. I got an e-mail this morning from my student loan company informing me that my student loans would be entering repayment soon. This is the second tranche (and the largest) of loans to enter repayment 4/2008.

Just a few moments ago, I received an alert from Equifax so I went over to see what was up. Well, Equifax is late in reporting two student loans that I opened in 2006 so my credit score went down just a bit. I am thankful to know that the service is working properly. It is really important to me to keep a clean payment history and I want to be alerted right away when something changes. My sister and mother have both fallen victim to identity theft, I had my wallet stolen once a few years back and sometimes I receive my dad’s mail and vice versa because our names are so similar. The service allows me to sleep a little more comfortably at night.

TrueCredit Monitoring

Starting To Cook More…

I am starting to cook more now that I am done with school. I am learning a little each week because I am not a culinary master by any means. I am still learning about my grocery shopping habits and I haven’t mastered how to go into the store and not spend a fortune of stuff I don’t need. But, I am doing better.

I’m still not frugal enough to bring my lunch to work but I keep it reasonable and I don’t buy breakfast or dinner at all. Lately, I’ve been going over to my parents' house for dinner since I am single and they live only 10 minutes away. It’s a good chance for me to spend a little quality time with them throughout the week and although I told my mom she didn’t have to bother, she says it’s no problem. It’s a tremendous savings.

$2,000 Emergency Fund…

Based on PF Blogs, I know some finance experts advocate that you have $1,000 in an emergency fund. I am more comfortable with $2,000. One "real" emergency can cost you $1,000 and then you have nothing. I had a small fire once in my condo’s electrical box and had to have several panels replaced. That cost me almost $800 in one day.

With a $2,000 emergency fund, if you run into one emergency, you still have some funds leftover to handle the next one while you try to build the account back up to $2,000.

For now, I have a $1,000 e-fund but I am trying to build it back to $2,000.

Quote…

"Failure is simply the opportunity to begin again, this time more intelligently."

-- Henry Ford

Crazy Weather…

The weather here in Chicago has been absolutely crazy going from freezing and snowing to 60 degrees. Somehow I managed to come down with the flu last Thursday which turned into the worst chest cold that’s still hanging around. I am looking forward to a little R&R this weekend. For me, it will be a nice 3-day weekend because I am off tomorrow. Thank goodness.

I also have a 4-day weekend scheduled for next week when the bank closes in observance of MLK Day. Working in the banking industry does have its perks including observance of most federal holidays. Just one more reason why getting a legal position at the bank would be ideal.

January 2008 Goals…

Goals

• Move to all cash/debit system
• Set up automatic payments for my student loans
• Get job offer to join the Legal Department
• Put $1,000 towards Emergency Fund
• Pay off December/Christmas Damage: ~ $3,770

Emergency Fund: $1,000 in E-Fund

Establish $1,000 in an e-fund with the goal of it reaching $2,000 by year end. While I would like to have a $2,000 e-fund now, I am going to start with $1,000. I would like to put as much as possible towards my debt with any extra money going towards reaching the $2,000 mark.

Pay off my December/Christmas Damage: $3,770

One mistake I made was being too aggressive and putting too much towards my HELOC/CC debt in December ($900). The main expenses were the treadmill and clothes for work. My mom said she would help me out with the treadmill purchase but I am not sure that I want her to. Since it’s been delivered on Friday, I have been on it 3 consecutive days and I am already feeling better. I would have gotten on it sooner but I came down with the flu on Thursday.

The balance on my credit card is ridiculous. It will be paid off primarily with my bonus which was supposed to pay down my HELOC/CC. My family decided to do Christmas gifts at the last minute so those purchases are also reflected on my CC. For the first time, I was pretty frugal so the amount is the lowest Christmas spending since college 8 years ago. I also have a $50 and $25 Visa gift card that I didn’t give out and I will keep those for any upcoming birthdays, etc. where I will need a gift.

The CC balance includes some of my regular bills ($420) like utilities, gas, and charity which are charged to my credit card every month and paid for in full.

CC Breakdown:

• $1,002 – Clothing
• $705 – Treadmill
• $678 – Gifts
• $357 – Dining
• $297 – Utilities
• $166 – Entertainment
• $132 – Personal Care
• $129 - Groceries
• $121 – Business
• $88 – Gas
• $58 – Home
• $35 – Charity

Financial Advisor Called…

My Ameriprise financial advisor called me yesterday at home and left a message. He wanted to know if I wanted to set up an appointment to review my financial situation. Well, as you can tell…I haven’t been to my financial advisor in over 4 years. I went to him right before I purchased my home when I was doing good and still had a positive net worth. Now, I think he would fall out of his chair and have a heart attack. I cannot do that to the poor man.

I am going to wait until I get the legal position and higher salary and then I will seek some guidance and help to get myself back on the right track.

All Cash/Debit and Emergency Fund…

As of Sunday, I moved to an all cash/debit system where I will no longer use my credit card for any personal spending. I will use my Bank of America Keep the Change checking account for my day to day spending activity.

As I look at my 2008 annual goals, I have decided to fully restore the $2k balance in my E-fund before paying off my cc/heloc in full. By the end of January, all of my December damage will be paid off in full and by the end of February (maybe January), I will have fully funded my E-fund again.

If all goes well, there will be a slight improvement in my net worth at the end of January and every month from here on out. Plus, I can check off two of my 2008 annual goals: all cash/debit and reestablish my E-fund. =)

2008 Goals…

I didn’t really set any financial goals for 2007 because everything was in limbo with me finishing law school and taking the bar. Now that I am a licensed attorney, 2008 is my year to get my life in order personally, professionally and financially.

Annual goals should be S.M.A.R.T.

S - specific
M - measurable
A - achievable
R - realistic
T - time based

Here are my 2008 Goals:

 Secure law position and $30k-40k salary increase (Current Salary $55,000)
 Increase 401k contributions to 10% (Currently 5%)
 Pay off credit card debt (Current balance is $7,700)
 Improve net worth by $10k - $20k (Current Balance -$93k)
 Move to all cash/debt system
 Reestablish $2,000 E-Fund (Current Balance $0)
 Minimum of $500 in charitable giving (Current contribution $35/month)
 Save $7k towards $15k unemployment fund (Current Balance $0)
 Reduce student loan debt by at least $10,000 (Current Balance $210k)

I am setting very aggressive goals for 2008 but they are all contingent upon securing a law position with a much higher salary. I am working on it now. I am hoping to transition in to the Legal Department by the end of February.

No matter what, my Goals for 2008 will still include:

 Pay off credit card debt (Current balance is $7,700)
 Improve net worth by $10k (Current Balance -$93k)
 Move to all cash/debt system
 Reestablish $2,000 E-Fund (Current Balance $0)
 Minimum of $500 in charitable giving (Current contribution $35/month)

December 2007 Recap…

Not much to report. There was a slight dip in my net worth by $758. Student loan interest continues to capitalize each month. Repayment on a portion of my student loans began January 1 and will go into full effect 4/2008 and 6/2008. I took some of my liquidity and paid off $900 on my HELOC/CC. I am still deciding whether I am going to start attacking my private student loans which are at 9%+ or repay my credit card by 4/2008 which is at 3.99% fixed for the life of the loan. Part of me just wants to be credit card free. Plus, the minimum payment on my credit card is $155 with ~ $25 in interest per month.

December’s credit check was good and clean. My credit scores are as follows:
Transunion: 750 (750 in November)
Experian: 777 (775 in November)
Equifax: 733 (729 in November)

January’s recap will look a little funny because I will be depleting my WaMu E-Fund and paying off my December spending in full.

A Fresh Start...

Wishing you and your family a very Happy New Year!!!!

December Damage…

I am almost done assessing the credit card damage done in December. I am waiting for a few price adjustments to return to my credit card but it looks like the total damage for December will be ~ $2k including personal/emotional spending (~$500), monthly utilities (~ $300), Christmas gifts (~ $700) and some needed items for interviewing ($500). I currently have $1500 in my E-fund so I am a little short. I just got paid so the large sums I’ve been paying on my HELOC/credit card will be reduced to $200 in January while I add $500 to my E-fund to pay off my credit card balance. I’ve already moved back to my all cash/debit system that I was on before and I plan on keeping to that system for 2008.

The balance on my HELOC/credit card is $7,700 and will need to be reduced to $0 by April when my private student loan payments kick in. The plan is to reduce the balance to $7,500 at the beginning of January and then pay off another $4,000 at the beginning of February once I receive my paycheck and bonus at the end of January. That should reduce the balance to $3,500. My hope is that the balance will be paid off with my tax return and one more paycheck. Progress may seem slow but as most of you know, I only get paid once a month at the very end of the month.

I will need to replenish my E-Fund as soon as possible and I don’t have a good plan for how I am going to do it. I will come up with one soon.

Annual Bonus…

I got the figure for my annual bonus. It’s just shy of $6,000 so after 401k contributions and taxes, I will receive approximately $3,600. The bonus gets paid out with my monthly paycheck at the end of January. While I would like to replenish my emergency fund, I would also like to reduce my credit card balance as much as possible to eliminate it before April.

Right now, the balance is $7,700. I am going to pay off just $200 with my December paycheck that I received today and I am hoping to pay down $4,000 with my January paycheck and bonus which will reduce the balance to $3,500. If it weren’t for my December spending, I would have been able to put more than $200 towards the debt but it’s important to me that I pay off my December Damage in full (more on that later).

When it’s is all said and done, by the end of March, I will have ZERO crdit card debt and my EF will be empty. My plan is build back up my EF while I forbear my private loans for 6 months until October 2008. This will be easier when I get an attorney position with a higher salary. As of January, I will be moving back to an ALL cash/debit system again.

Merry Christmas...

Wishing you and your family a very Happy Holiday!

Christmas Presents…

Well some of the family reneged on the agreement we made to forgo Christmas presents. With everything going on, they felt like the Christmas spirit was being zapped from them and that they would feel better if they could get everyone a little something to open for Christmas. This wouldn’t be such a big deal but I already engaged in some emotional shopping this month.

I decided to purchase $25 gift cards for everyone and I will be personally writing something special in a card thanking them for their love and support this year. It’s not much, but it’s something and everyone will be getting the same $25 Amex gift card so there is no favoritism. Well…my little cousin and my best friend’s daughter both got $50 gift certificates to StrideRite so they can get some new shoes which can be expensive for little kids.

I also lucked up and found some inexpensive gifts for my three neighbors. They are getting a box of mixed Christmas cookies ($4 for 2 boxes) and a 4-piece Christmas mug set ($6 for four mugs). I got them on sale at the store and they are actually pretty cute. It’s just supposed to be a little token and I think they will be pleased for just under $10. The store also had Christmas bags and tissue paper for $1. It was a good day.

For the most part, my emergency fund is gone, gone, gone. As in Bye Bye!!! I feel a little bad about this but at the same time, my parent’s gave me that $2,000 so that I could get something special for myself. So, I got myself a few items of clothing that I can also wear to work and I purchased some Christmas presents. I will work to build my emergency fund up again in the next few months. This will be a lot easier when/if I get the attorney position at the bank.

Too Much Going On…

Ever get the feeling like there is just too much going on? In just the last few days, I received word that my manager’s young son passed away suddenly, my friend and co-worker hauled himself on the first flight out of town because his mom needs immediate heart surgery and my friend’s cousin was just killed in a car accident.

I haven’t had any time off from work since August and we’ve been really busy. I am supposed to have Friday off but I am covering for my co-worker and I am not sure if I will have to scrap my vacation next week to cover him as well if he is unable to return. We had a 4-person analyst team but two weeks ago, one member left to work at a competitor bank and now my co-worker is tending to his mother. That leaves just two of us to handle an entire part of the bank and we are very overwhelmed.

On top of that, I am interviewing, my ex boyfriend of 16 years broke my heart and the thought of spending the holiday without him makes me tear up. I am just so overwhelmed with…everything.

As for my personal finances…let’s just say there is some emotional shopping that is on my credit card at the moment and some much needed purchases like shirts to go under my suits and new winter boots which I haven’t purchased in over 8 years. Right now, the balance is over $1,000 and that just makes me want to crawl into a hole.

Interviews Concluded…

Well my interviews are finally over. I had one more today which was actually very encouraging. Two of the advantages that I have are eight years of banking experience and I also know how the bank operates. My clear weakness is the lack of direct legal experience but unless you have specific banking knowledge, other candidates with legal experience will face other but similar challenges.

Actually, another advantage that I have is that I may come cheaper than outside candidates who already work for firms earning significantly higher salaries. I won’t know anything for at least six weeks. Legal will be bringing in candidates in January after the holidays for additional interviews.

At this point, I am definitely aiming and hoping for the junior position. It would mean a nice bump in salary. I am hoping at least a minimum of $90k. With that salary, I will be able to pay both principal and interest on my student loans, save and invest long-term and increase my retirement savings to 10%. In addition, I have a pension which will provide a little more retirement cushion.

Employee Share Purchase Plan…

I cancelled my contribution for my employer’s share purchase plan. Last year, I contributed the amount of my raise (2%) to the plan. Going forward in 2008, I am going to need all the extra money that I can get when I begin repaying my student loans.

On another note, my spending this month got out of control. I will post about that soon.

Interviews…

My interviews got rescheduled for today. I actually have another interview tomorrow and Wednesday. Since I am already employed in the same building and it’s the holiday season, they were able to spread it out. I have a weird feeling about the interviews. I got the impression that they were pleased with my work experience but not pleased that I wouldn’t be able to hit the ground running. I am not sure what they really expect. I just graduated from law school in May and I just got sworn in last month. While I won’t be able to head a project right away, I can certainly contribute. Plus, I don’t care who you are, if you aren’t already working in the organization, you aren’t going to hit the ground running. You have to get acclimated to the organization and how it works. While I already knew that I wasn’t qualified for the senior position, I am still hopeful that they will consider me for the junior position.

This is my last ditch effort to remain with the bank. If they do not offer me the position, I will begin applying heavily elsewhere.

Interview…

It looks like I may get an interview in the Legal Department within the next few weeks. With the holidays looming, scheduling may be difficult but I am hopeful that it will happen soon. I am ready to make my transition out of my current job and finally earn a better salary.

***Update. They called and I have an interview on Tuesday. =)

Automating Bills and Savings…

Currently, I pay my mortgage each month by logging in to the company’s website. I am thinking about automating my payments with the company’s Pay/12 program where they automatically deduct my payment and any additional principal I designate from my checking/savings account each month. So long as the payment date that I select falls within the first and the sixth day of the month, there is no fee for this service. Since I get paid once a month on the next to last day business day, this wouldn’t be a problem for me. Also, I am planning to remain with my company and practice law so my pay schedule won’t change.

I am trying to automate as much as possible. My 401k contributions of 5% are automatically deducted. I use my bank’s bill pay service to automatically pay my condo assessments, car insurance and electric bill. All of my AT&T services are charged to my credit card in addition to my home security system and I pay the balance off in full each month. Once my student loans enter into repayment, I will also allow them to automatically deduct my payments so that I can receive a .25% interest rate reduction.

What do you automate?

Charitable Giving…

As many of you know, I am in a lot of debt…over $200k in fact. Every once in a while, I get something in the mail from organizations such as St. Judes, the American Heart Association and the American Cancer Society. I send them $10, $20 or whatever I can spare.

Recently I was introduced to World Vision and now I contribute $35 per month to help a child in need. I call him Mr. Wilson and he is a beautiful little boy in Africa. World Vision is a Christian humanitarian organization dedicated to working with children, families and their communities worldwide to reach their full potential by tackling the causes of poverty and injustice.

Please check out the website and decide for yourself if you would like to bring joy to a child in need.

World Vision

Potential Attorney Position…

I just wanted to give an update and let everyone know that I posted for two attorney positions in my place of work. One position is junior to the other but based on the job description provided, I am definitely qualified for the junior position. The more senior position asks for an experienced attorney with 8 years of banking knowledge and the junior position did not call for an experienced attorney but 4 years of banking knowledge. This is my 8th year with the bank so I sort of fall in between. I have been networking like crazy so I hope that I get an interview within the next few weeks and move into the legal department some time in January. Things are slow during the holidays.

Both positions are higher job grades so that certainly will mean a nice salary boost. In my posting, I asked for low six figures, recognizing that with my already low salary and move within the company, they may have come in way lower than would appeal to me for the long haul. If they come anywhere close to six figures for the lower position, I will be pleased because I know that there is a more senior position that I can eventually move into with just a little more experience. Also, at 30, I would be pretty young to have an in house position already so that means that I have a lot of growth potential not only with my company but also in the legal world which places great value on legal experience.

Ciao!!!

Thank You Gifts…

While my family isn’t engaging in gift giving this holiday season, I have a ton of thank you gifts to buy for people who have helped me out over the last few years with law school and also for my family who went in together for my Birthday Weekend. They can’t be simple tokens of my appreciation because these people have made a huge difference in my life and made it possible for me to be where I am now. I am going to have to put some thought into the gifts but I do want them to be special. No matter what, it is important to stop and say THANK YOU!

Birthday Weekend…

I had an awesome birthday! I was feeling a little down about not having a legal position yet and the demise of my relationship that when people asked about my birthday plans, I didn’t have an answer. I just wasn’t excited. Well…my sister and brother-in-law changed all of that.

My sister asked me to promise to give her my full cooperation and so I did…reluctantly. She said to be ready at 10 am on Saturday and to dress warm. Those of you who are familiar with Chicago are aware that the weather can be unpredictable. Saturday was no exception. It ended up snowing and raining and everything settled into a sheet of ice. So, my sister picked me up promptly at 10 am and we were off. I did pretty good…I made it halfway into the city before I asked her where we were going. Of course she wouldn’t tell me but she pulled out a red envelope which to my delight was what she called “Chitown Mail” like “Tyra Mail” on America’s Next Top Model. Too Cute!!! On the card was a clue to our destination that I could not guess for the life of me. She just laughed at me and told me to relax. The rest of the day unfolded with 4 more surprises, each accompanied with a card containing clues to each destination. I was so tickled. Nobody has every done something so special for me.

All in all, I left the house on Saturday and returned home after midnight. The day included lunch, a four hour trip to the spa, shopping, dinner where my parents and brother-in-law surprised me by showing up and hiding behind their menus, and a trip to a jazz club. For the most part, my sister wanted everything to be something I never did before and I had an absolute blast.

During our time on Saturday, I told my sister that my best friend forgot about my birthday and was actually scheduling my birthday on her crackberry (blackberry) while we were at lunch. Well, I ate my words when my sister told me to be dressed and ready to go on Sunday at noon. I was waiting in my condo foyer when who drives up…my best friend. Can you say, EAT MY WORDS!!! I was so delighted. She also wouldn’t tell me where we were going so I immediately knew she was in cahoots with my sister. We work about a block away from each other and often meet for lunch so when we started heading downtown on Sunday, I was thinking…We can’t be going downtown for lunch!!!! We made small talk in the car but I wanted to know so badly where we were going but I knew if I asked, I wouldn't get a peep out of her. So, when we got downtown and drove by the crazy Bears Fans tailgating at Soldier Field, my mind was racing trying to think of what we were going to do. When we turned onto Randolph Street and passed Macy’s (Marshall Fields) on State, I blurted out…ARE WE GOING TO SEE WICKED????? Then my best friend handed me my clue complete with a red envelope and my tickets to WICKED!!! I was sooo excited!!! I wanted to see it so bad but never really had anyone to go with or for that matter, the time…can you say BAR EXAM!!! Anyway, the play was awesome, so witty and funny and nothing like what I expected since I didn’t read the book.

Then my birthday ended in traditional fashion. A homemade dinner, surrounded by family and my favorite, CHEESECAKE!!!

I am 30 and I am going to love it!!!

*** Funny note. My sister is so cute but she has a terrible sense of direction. Therefore, I often had to help her navigate downtown. Oh but she is a smart cookie and a teacher too…she made sure she didn’t leave any identifying information on each of the Mapquest sheets. A smart cookie indeed and since everything was new to me, I didn’t have a clue where we were going. My brother-in-law did a lot of the planning with my sister. He is very outgoing which is refreshing. I have the best sister and brother-in-law!!!!

Credit Card Balance Reduced…

I paid down my credit card/heloc balance today by $900. The balance now stands at $7,700. I am still on my quest to pay it off by April 2008. My emergency fund is still in tact and I should have enough cash flow to get through the month. Additionally, the charges I put on my credit card due to lack of cash flow in November have also been paid in full.

I am not going to reach my goal of $30k in my 401k for the year but I am going to come close if the market would just cooperate. =) I get paid once more at the end of December.

On a great note....Yesterday was my grandmother's 85th Birthday!!!

30th Birthday...

Today is my 30th Birthday!!!

I had the most amazing birthday weekend.

I will post about it soon. =)