April 2010 Monthly Recap...

April was a decent month. My net worth improved for the 4th month in a row. That is a definite accomplishment.

My retirement account bounced back so that helped to improve my net worth considerably. I went over budget by $402. I used my Petty Cash Fund and the extra money I was holding in my Emergency Fund to cover the shortfall.

Beginning in June, you will no longer see the increase in my Federal Student Loans because all of my loans will be in repayment. While I am dreading the extra expense, I will be happy to see all of my liabilities decreasing on a monthly basis.

Below is my expense statement for April.

• I decided that my goal is to keep both Food/Dining & Grocery under $300/month. In April I spent $496 and that is still way too high. My grocery expense was a little higher since I tried out some new recipes.
• Transporation costs also hit me hard again in April. I decided to accrue $90/month towards my parking passes since I need them about every other month. This will reduce my expense from $450/month to $350/month.
• I also need to find a way to accrue for my quarterly water bill. It's about $120/quarter or $40/month. The next bill is due in July.
• I would really like to find a way to budget $100/month for both Personal Care and Entertainment - $200 total. When I look back at my expenses, this seems like a reasonable average amount that I tend to spend. I am going to cut back on the hair appointments even more from once a month and get just one pedicure each month and do one on my own.
• Credit scores remain strong and my credit history remains clean.

Blessed Friday...

My Dad went in this morning for his heart procedure. He actually did have a blockage where the stint they put in last summer started to collapse from scar tissue. They put in another stint but this time a medicated stint to ward off any further scar tissue. Hopefully this will work and he won't become a candidate for bypass. I stayed with him all day since my poor Mom has to juggle him and my grandmother with alzheimers. He was doing really well following the procedure but they kept him in ICU until tomorrow when he comes home.

Today was a very blessed day! It was also a NO SPEND DAY!!! =)

Payday...

I got paid today!

Time to get my budget together for May, pay bills and draft my April recap.

My budget for May will include a planned savings draw for the first time. I have some extraordinary expenses to pay. More on that soon.

Car Repair…

The Check Engine light came on this morning in my car while I was driving to work. My initial thought was…D*MN!!!

My 2002 Nissan Altima (The Green Machine) needs some work. I am going to call and try to get an appointment for my car. I know it needs the 85,000 mile service but I was trying to put it off and just get the oil changed and the tires rotated. It has about 84,000 miles on it right now. I am going to call them to see what the 85,000 mile service entails and make sure they will check/rotate the tires, change the oil, and find out what is making the “check engine” light come on. Also the air conditioner/heat doesn’t work properly so I need to find out what’s wrong with that too.

I have no choice but to make sure that baby runs for a long while to come.

Oh Boy!!!

Weekend Spending...

I got a pedicure on Friday. I planned a DIY pedicure but I used a gift card instead that I got for my birthday and paid the tip. It was the most relaxing hour that I'd had all week and the best $10 I spent all month. I also went to the movies as planned on Friday night for $15 and then went out for drinks. Unfortunately, the place also had a $10 cover so all together that was $20 that I didn't plan to spend.

Friday was a $45 discretionary spending day. Bad. I had only planned to spend $20 for the movie.

On Saturday, I didn't make it to Victoria Secret as planned to get the $25 gift card for my friend's bridal shower and I also realized I needed a card. So, I had to go to Walgreens to pick up a card and a $25 gift card. I resisted the urge to get the $50 gift card. I felt like I was being cheap with just a $25 gift but I had to tell myself that I will be writing a nice check for her wedding in just 3 weeks. So I still have the $25 visa gift card I got from Christmas to use for something else. I really heart gift cards. They come in handy. The shower gift ended up costing $32 with the almost $5 activation fee they charge.

To stave off a massive withdrawal headache, I made my first trip to Starbucks this month. Darn...$4.20 for a grande mocha. Won't be going back to Starbucks for a while. It didn't work either. I had to leave the shower early due to a massive headache. I stopped by the store on my way home as planned and picked up some bread, eggs and 3 bags of salad for the week. The entire grocery bill was just $9.20. I love Aldi!!!

Overall, I spent $57 more than I planned to spend this weekend. $10 for the pedicure, $20 for music/drinks, and $32 for the shower gift when I planned to use a gift card I already had to buy another gift. On the other hand, I still have the $25 gift card and I can use that to pay for something else.

Other than Metra train rides and $6 for parking on Wednesday for class, I plan on having another week of almost $0 discretionary spending. I get paid again on Thursday.

Weekend…

The weekend is here and I am truly grateful.

I just found out yesterday after my Dad went to the doctor that he will be having another heart procedure next Friday. He’s been having some discomfort/pain and since he had a massive heart attack last Summer, the cardiologist wants to go back in to check everything out. I believe the procedure will be relatively routine so I am hopeful and prayerful that he will have a very quick recovery.

I probably won’t be going to Kentucky for Derby next weekend since he’s having the procedure on Friday. If they need to repair anything, he may have to stay overnight in the hospital and I don’t want to be away. I know he’s going to be okay.

I may go to the movies tonight to see Death at a Funeral with Martin Lawrence. I could really use a laugh and I think it’s going to be pretty funny. Other than the bridal shower on Saturday, I will probably just hit the gym and relax this weekend. I may go over and sit with my Grandmother who has Alzheimers so that my Mom and Dad can go out to dinner and a movie.

I need to go to Aldi grocery store to pick up bread, eggs and potatoes for meals next week. It should cost less than $10. That’s about it. I am going to give myself a pedicure this weekend so overall, I don’t plan to spend more than $30 for the weekend with the groceries and the movie.

Have a terrific weekend everyone!!! Please say a prayer for my Dad. =)

Trudging Along…

Chitown is trudging along. I have another week before I get paid again on the 29th and it feels like a really long time away. LOL

I have another NO SPEND day planned today and it feels good. I cannot believe that I made it almost ½ a week with NO Discretionary spending. Yeah!!!

I have a wedding shower to attend this Saturday. I have a Visa gift card for $25 from Christmas so I am going to use it to purchase another $25 gift card to Victoria Secret since it’s a lingerie shower. I think I already have a card at home. Her wedding is next month so I am also going to need to get her a wedding gift as well. I usually just write a check.

As for the next week, I think my primary expenses will be related to transportation. The weather is supposed to be pretty crappy here in Chicago this weekend so I hope that it will be a rather chill weekend with minimal spending. I need another 10-ride train pass ($40) and I need to fill up my gas tank since it is very close to empty ($40). I am going to focus on bringing my lunch next week as well so keeping my food & dining expense down will be key to minimizing the damage this month.

I have a lot of stuff planned for May.

My best friend is from Kentucky and she invited me down to Derby the first weekend in May. I asked her if it was going to cost a lot of money and she said everything was already paid for so my expenses would be minimal. We are staying with her Mom so lodging is also taken care of and they are cookers so I hope food expenses will also be minimal. We’ve been best buds for 14 years and I have never traveled down to KY so I am excited to see her world.

Mother’s Day weekend is going to be rather relaxed this year. I am only budgeting $50 for gifts for about 4 Moms so I am going to have to be creative. Any ideas??? I am also running a 5k fundraiser for the Black Alumni Association at my alma mater that will cost $25. I’ve been training for it a little and running so I hope the weather will be nice because my school and the running trail is right along Lake Michigan. Beautiful. =)

I need to get a prescription filled that is not covered by insurance. I can’t remember how much it cost before but I think it was close to $175. Ugh!!! I burned myself really bad when I dropped a curling iron on my chest about a year ago on vacation. The fade cream that my doctor prescribed does not come in generic nor is it covered by insurance. If the burn was anywhere else I would say forget it but the medication is working and I need to keep up with the regimen.

So….keeping my food/dining and grocery expense down in May will also be key to staying within budget.

On A Roll...

I went three days in a row without any spending. Go Chitown!!!

Seriously...cooking the pasta and stretching it with protein sides helped a lot. I cooked a pot of jambalaya last night so I can stretch that for a few days as well.

I tried a new recipe for this Cajun Blackened Chicken last night that I found on my iPhone app and it turned out pretty good. Best thing about it was that I had all of the ingredients. My best friend was pretty amazed on Saturday at how well stocked my kitchen was with utensils and seasonings. I just need to put them to work.

I stopped by my parent's house last night and thought I was just going to come home and make a turkey sandwich and soup for dinner and that I didn't feel like cooking. It was about 5 minutes after I started defrosting the chicken breast when I remembered my original dinner plan. Oh well right...I was in it for the long run. So I cooked and now I have food for at least 2 days.

It's crazy though because I will sometimes have all this food and all I want is a PB&J sandwich. lol

I have class tonight so other than $6 for parking...today will be another day of NO discretionary spending. =)

Housing Value…

I currently value my condo at $165,000 but I am not so sure that is market value today. I got my place appraised as part of my refinance in November 2008 and it appraised at $165,000. There is a 3-Bedroom, 2-Bath condo currently on the market in my complex for $139,900. I paid $130,000 for my condo back in 2003.

Perhaps it would be best to value my condo at cost rather than at $165,000. This would kill my net worth but it might be more accurate. If the place sells at $130M, at least I am still afloat since my outstanding mortgage debt is $122M.

Another problem many condo owners are facing is that our complex and similar complexes are not FHA approved. It is difficult to find conventional buyers in today’s market. Heck, many of us weren’t conventional homeowners either but got out financing through some 80/20, 80/10/10 program. I know I did but these loans are no longer available it seems in today’s lending market.

What does this mean? Well, owners of distressed condo units are going to unload their properties for much less than the market value and depress the values of similar condos in hopes of finding a conventional Buyer. Consequently, many owners are also going to find themselves stuck and unable to sell since they now owe more than their condos are worth.

Things are just tough. I am fortunate that I can rent out my condo in the event I cannot sell.

Progress Report...

I had a great weekend. I invited my best friend over on Saturday to watch the Bulls vs. Cavs game and she gave me a cooking lesson. Hey...good food, good wine, good game and good company. I couldn't go wrong except I needed to buy groceries.

My best friend taught me how to make spaghetti which is definitely a meal that I can stretch. She is from Kentucky and the girl can cook. She agreed to come over and give me a few more lessons over the next few months. She understands what I am trying to do and is really very supportive. Love her!!! My grocery bill was a little higher this time around because I needed a few staples to cook the meal that I won't need the next time around.

I brought my breakfast and lunch today and I am going to cook something for dinner. I am also going to ask my mom to teach me how to make a few things like chicken salad and a turkey breast. Those are also meals that I can stretch.

I am overbudget and the excess came from savings. Anticipated expenses for the week are gas for my car (only the second fill up this month), parking for class on Wednesday night ($6) and maybe another 10-ride train pass which will be the last one for the month ($41).

I plan to bring my lunch all week and cook dinner. Then, I can make it through the rest of the month just needing about $100-$120 which will come from savings but will still leave my $2,000 efund in tact. Since I have one more month without paying all of my student loans, I should be able to put the $300 back into savings.

Lastly, I spoke with my Mom over the weekend. She and my Dad are probably going to help me with $300/month come June or July when my student loan payments increase. I told my Mom that I was thinking about getting a roomate and she was not pleased (I knew she wouldn't be) but I told her that I am running out of options. Mentally I am zapped from work and just thinking about having to get a second job makes me want to cry. She just said that I need to speak up and tell them I need help. So, I said I did and I will tell my Dad this week. He is going to agree with the snap of a finger which is just going to make me feel like crap too but oh well. I couldn't even go play golf with him this weekend because that was $40 I didn't have.

• Utilities are $105 higher due to my quarterly water bill.
• Transportation costs are $190 higher for parking passes.
• Medical bill from physical therapy is under misc/irregular expenses.
• My blow dryer died. I purchased a new one under personal care.
• Food& Dining and Groceries are my main focus right now to reduce.
  
  
  
  

Financial Boot Camp...

This is the first time I am getting “real” about my finances. I don’t pretend that I have all the answers and my income and committed monthly expenses will not stabilize until July. Until then, I am rolling with the punches and establishing new spending habits.

How so you may ask since you spend $100/month on personal care, buy people gifts and go out to eat? All of my adult life, I spent with reckless abandon and enjoyed every single minute of it!!! I will not lie. Another thing I will not lie about…I miss it too!!! Since I know this, I come here to confess and I come here to celebrate my victories. It’s a sickness to an extent but I feel like I am winning the battle.

I got my hair done every week to the tune of $200/month. I got a pedicure every two weeks in the Winter for $60/month and every week in the Summer for $120/month. I got a massage every 4 weeks at the Spa and I ate out every single day, sometimes taking a taxi just to get to my favorite restaurant. I was ridiculous and my spending was so out of control.

It is really hard to change all of that imbedded spending behavior overnight but I am making great strides. For some, my progress may not be fast enough. For ME, progress is something I never made before so I am delighted and encouraged.

What’s different now…well now is relative because it’s only been a few months since I got “real.” I get my hair done once a month for $50/month. I don’t get massages and I get a pedicure every two weeks for $50/month. That is my $100/month bill on personal care. This month, I cancelled my hair appointment.

I bring my lunch 2 times a week. I will do this more in the Summer because I can then go out into the courtyard, sit outside, read and enjoy the Chicago weather. When I buy my lunch, I aim for under $10/day whereas I used to go to a sit down restaurant and the tip alone would be $5. When I buy lunch, I don’t buy dinner. I cook more. I never used to cook. My oven still looks brand new and I’ve lived in my place since 2003. This is the kicker though…I am finding that I like to cook and I like to eat what I make so I am sure there will be more of that on the horizon.

I don’t give the extravagant gifts that I used to give. I used to spend at least $100 on my parents for Christmas, Birthdays and Mother’s and Father’s Day. I budget $50 now and everyone else gets a gift worth ~ $25 whereas it used to be $50. I look for other ways to give a gift and I am not ashamed to say that I have re-gifted a nice bottle of wine or a gift card to Macys. I just did this in February.

I know I have a long way to go but I am encouraged and I know that better days are coming. As I get comfortable with my spending and my new budget and paying on my student loans, I know further cutbacks are on the horizon. Stick with me…Chitown is going to make it and not just make it…Thrive!!!

Chicago...

It is a beautiful day in Chicago. I am going to get out and enjoy it.

Struggling...

I am seriously struggling. Work is beyond crazy. I mean seriously!!! I have a portfolio of 30 clients and they are all mad…just mad!!! I want someone to act right!!!

My 1 year old nephew got tubes in his ear yesterday and thankfully he is just fine.

I am tired of thinking about money!!! I know I don’t have a choice but I am tired!!!

I went back to my tracking and created a custom report from my last paycheck on March 30th through today and here is where I “really” am for this pay period. I’ve been looking at things on a monthly basis but I kept thinking…why don’t I have more cash in my checking account??? Well that would be because I spent some of my paycheck the last 2 days of last month!!! I should really report from paycheck to paycheck and not just monthly. I must do this going forward.

There is no way I am going to meet budget this month. I have another 15 days before I get paid again.

Monthly Progress Report...

I went grocery shopping this weekend and went over budget. I forgot I had to adjust my budget down from the usual $100 to $70 to account for the higher utilities this month. Consequently, I am adjusting my dining budget and I will just have to make it work. I need to accrue for my quarterly water bill. I also need to accrue for my yearly homeowner's insurance. I will have to pay roughly $250 for that in June or July. Thankfully, I have an extra $250 in savings already.

The weekend was cool. I make it to the gym a couple of times and I also met my Dad at the golf range. Thankfully, he paid for the range.

• Utilities are $105 higher due to my quarterly water bill.
• Transportation costs are $190 higher for parking passes.
• Medical bill from physical therapy is under misc/irregular expenses.
• My blow dryer died. I purchased a new one under personal care.
• Blew my grocery budget so I readjusted my dining budget.

No Spend Day...

Today was my second NO SPEND DAY of the month!!!

Spending Formula...

Oprah had Jean Chatzky on her show a while back when she was doing the Debt Diet. Jean suggested the following as the ideal spending formula.

I am completely out of balance and I have a lot of work to do.

Right now my housing expense is 41% and my debt level is at 38%. Thankfully my car is paid off so I fall below the 15% transportation goal to just 8%. The sad thing is because I am overextended in housing and debt, I also fail to meet the 10% saving goal and I am only able to allot 13% for personal spending compared to the 25% goal.

Below is how I will stack up against the spending formula for the rest of 2010.

Credit Cards...

Slowly BUT Surely, it is getting a lot easier for me to use cash and debit for all of my purchases. I wish I never used my credit cards and cannot wait to be free.

I have a goal this year of no additional debt. I have kept that goal thus far and intend to keep the streak going. I know it may seem like I go back and forth with my finances but this is the first time I have truly buckled down to make a difference in the right direction.

I am so grateful for my Blog Readers and for those that leave comments and ask questions. Thank you, Thank you, Thank you.

Anticipated Budget…

Here is my budget for the rest of 2010 unless rates change, I get a roommate, I find another job or I get offered a trip to the Moon. =)

I am evaluating the roomate scenario. I have emails out to several friends/family members to see if they know anyone who needs a place to stay. I would feel better with a direct referral than going through a service.

On another note, the new ex misses me. The breakup was sudden. He admitted that we didn't have a bad relationship but just not a great one and that he loves and misses me. I don't know what to do. He had become my best friend too.

Early Student Loan Repayment…

I am a little bummed that my student loans are going into repayment a month earlier than I expected. On top of that, they were talking on the news today about when Bernanke was going to start raising interest rates again. I swear my heart started to palpitate.

One No Spend Day....

I didn't spend any money on Easter Sunday and I spent $10 for lunch over the last two days. I badly need to go to the grocery store. I really really don't want to but I know I need to get some staples. My fridge is absolutely empty...such a bachelorette pad.

I went to McDonalds today and got a Cheeseburger Happy Meal with an Apple Dipper. The entire meal was less than $4 and less than 700 calories. Now I know why McDonalds stock is still doing so well.

I will be in the gym this evening. I just need to stop at home first to defrost salmon for dinner. I am going to try to make Thursday another no spend day. I have class tomorrow so I will need to pay at least $6 for parking in yet another garage.

Weekly Progess Report...

April is here and today is the first day of my new life. Change is in the air. My boyfriend of a year and a half broke up with me on Friday. Apparently the feelings weren't mutual. Enough said there right? So now I am starting over and starting new.

A lot of my dining, entertainment and transportation expenses increased with the relationship. For the first six months of 2009, my ex was unemployed and I superficially picked up the slack with dating expenses using debt. Since I will no longer be traveling into the city to stay/visit with him, my transportation expenses will decline. Just this month, I bought another 10 parking passes so I won't need them as often.

After a long and tearful weekend and some really kind works from my new friend and blog buddy Aaren, I am going to close the book and start anew with better choices.

Here is my monthly progress report thus far. Remember that I only get paid once a month so I pay ALL of my bills at the very beginning of the month and then I have to budget carefully until I get paid again at the end of the month. My next payday is not until April 29th. I am going to try for a lot of "no spend" days this month so I will often bring my lunch to work so that I can meet the $200 budgeted amount.

• Utilities are $105 higher due to my quarterly water bill.
• Transportation costs are $190 higher for parking passes.
• Medical bill from physical therapy is under misc/irregular expenses.
• My blow dryer died this weekend so I purchased a new one under personal care.

March 2010 Report...

1. Net worth improved from $153,834 to $151,994.
2. 401k and Investment Accounts bounced back.
3. Overall debt down $585. Come June that will be ~ $800/month.
4. Cash accounts took a hit due to overspending.
5. No additional debt or credit card use.
6. Cashed in Capital One miles to boost my E-fund by $175.

Here is a further Spending breakdown for March and my Credit Scores. Credit scores improved this month most likely due to debt reduction on my credit card. I am 90% to max on the card so that is definitely a negative.

The End of March is Here...

Month end is here. I get to report the tragic financial report for March soon...just kidding. It won't be that bad.

I am feeling the Windy City Financial Blues but the Weather in Chicago is simply gorgeous today!!!

Keep the Change...

I was able to transfer $19.20 into my savings account by using my Bank of America debit card in March. My checking account automatically rounds each purchase to the nearest dollar and transfers the difference into savings. Pretty sweet.

Monthly Progress Report...

Below is my monthly progress report. I lost it this weekend.

My friend’s birthday was on Friday. I was originally going to skip the birthday dinner but felt bad since she’s been to my last two birthday dinners. OF COURSE it was at an expensive Chicago restaurant, OF COURSE I had to take a taxi to get there, OF COURSE we split the bill, OF COURSE it ended up costing me $60 and OF COURSE, 5 out of the 6 people at dinner were women attorneys working at firms so it was a drop in the bucket for them. I did bum a ride off one of my friends back to the parking garage so I saved myself another taxi ride there.

On a side note, my best friend knows I am strapped for cash so we just met up on Friday for a $27 Thai lunch instead of going to an expensive restaurant. That was her birthday gift. She even told me I should skip the dinner when we were out at lunch. I should have listened to her.

My other friend who wanted to go on vacation was at the birthday dinner on Friday. I finally told her the "real deal" and I think she finally gets that I am pretty strapped financially. She is also coincidentally the friend who gave me ride back to the garage. Her firm pays for her monthly parking downtown.

I get paid tomorrow. It’s been 33 days since my last paycheck. I tend to lose my focus in the last week before I get paid again because it seems like it’s never going to happen.

April should be a better month but it is going to be very tight. I have to pay my quarterly water bill ($107), a straggling medical bill ($45) and for parking passes ($190). I got another medical bill in the mail for $30. I am going to call them because I don’t think they accounted for my $30 co-payment. I can get a copy of the cancelled check for proof if needed.

• The deficit is the reason for my low $100 checking account balance.
• No additional debt and everything paid for with cash and debit.
• I allotted more for transportation and Food & Dining in April.
• I am going to talk to my family & friends about gifts and let them know I have to cut back.
  
  
  

Rethinking 401k…

I am rethinking my 5% 401k contribution with the disappointing news about my raise and the upcoming increase in student loan payments. My checking account is pretty low and I am wondering if I should try to build it back up with the extra $250 over the next 2 months.

I have until next Tuesday to cancel.

Withholdings…

I increased my Federal Withholdings from 2 to 3 but the change only amounted to a $76 increase in my paycheck.

Every little bit helps though right?

Disappointing Raise…

My raise was a disappointing 4% this year from $72,700 to $75,600. I don’t want anyone to get me wrong and think I am not grateful but I am grossly underpaid. My Boss knows it and has acknowledged it to my face. Additionally, I am paid at least $10,000 - $15,000 less than my peers who are doing the same work and have comparable portfolios. Add to that, I have the most education, I volunteer for special projects, I mentor and I have been with the Bank for going on 11 years. I don’t like to cry discrimination but I am also the only Black female working in the Department and there is only one other Black male working here and he makes at least $10,000 more (confirmed). Additionally, I am the ONLY attorney working in the group and people ask me for advice all the time.

I had this discussion with my Team Lead in August of last year and was told that it was difficult to make a mid cycle adjustment without creating a new position or adding additional responsibilities. My first reaction was…Why the hell do I have to do more to get paid equitably but I said forget and told him I would be willing to take on more responsibility. That never happened and they made a conscious choice (in my opinion) not to fix the disparity at the annual review period where increasing my salary would not have amounted to an out of cycle adjustment.

He said we could discuss further and I said I would like that and I proceeded to state my case. It doesn’t matter. I could tell he knew I was disappointed because I cut the meeting short. We just lost two other Portfolio Managers in our group and we were already in a hiring mode. They are going to have to pay at least $15,000 to the next person to replace me soon. I already started looking for a new job because the increase after taxes will not be sufficient to pay the increase in my student loan payment come June.

At the end of the meeting, I just said Thank You, gathered up my portfolio, got up and went to the bathroom and balled. I don’t like to cry but I just felt defeated and pissed off beyond measure.

Investments & Perkins Loan...

I am going to focus on long-term investments instead of long-term savings whenever I get the opportunity. In the past, I opened a ShareBuilder account (now ING) and took advantage of the opening bonus. Occasionally when I have an extra $25, I transfer the funds to my ING account and make a $21 investment (after the $4 fee) into the S&P 500 Index Fund.

I also used to contribute 1%-2% into my Employee Share Purchase Plan. It is a pretty sweet deal because I am able to pay for company stock with a 20% discount. Not bad at all. I currently hold about 22 shares valued today at $1,345 and I would like to go back to contributing at least 1% ($60). The combined investments total $1,600 or 8% to my new $20,000 goal. Not bad.

I decided to attack my Perkins Loan first out of all of my student loans. It has the smallest remaining balance at $2,500, originally $3,000. There is a fixed monthly payment of $31.86 per month so I am hoping to eliminate that loan sooner rather than later.

Monthly Progress Report

Below is my monthly progress report. This is the first time I really tracked my expenses so closely. I have to say that it is helping out a lot. Seriously! I can really see where my money is going and I think I will be able to make some adjustments going forward.

• I definitely need to allocate more for Food & Dining and Transportation.
• Credit card buster is a one-time carry over from past credit card use.
• No additional debt and everything paid for with cash and debit.
• Overspent but doing much better.
• Decided against vacation next month.

Good News…

I am really excited for the weekend. I was supposed to take today off but I am still negotiating a deal. I am going to take Monday off instead. Yeah!!!

Some of you know, my Dad suffered a massive heart attack last Summer and he was also was diagnosed with Type II Diabetes a year before that in 2008. He went to the doctor yesterday for a follow-up appointment and he is doing really well. Thank God!!! We thought he might have to go on the pill form of insulin since his numbers haven’t been too good but he is still just borderline. He has to exercise more and go back to the doctor in 3 months.

I feel so happy. Such terrific news!!! =)

I Want Federal Help...

Call it what you want but I would love some help from the federal government with my student loans. I am not talking forgiveness here but I would absolutely love and appreciate the ability to refinance all of my student loan debt including my private loans into one loan at 3% for 30 years. I would even pay a reasonable origination fee.

Imagine…a new loan for say $235,000 at 3% for 30 years. Come June my student loan payments will be about $1,200 per month and some of those loans are just interest only. Under this scenario, my principal and interest payment would be about $1,000/month and I wouldn’t have to worry about variable interest rates ever again.

The total amount of interest paid to the government would be roughly $121,700. The loan is not able to be discharged in bankruptcy so the government would get their money and we all know the government will garnish your wages if you don’t pay on your loans and take any tax return you ever hope of receiving…

I know I am dreaming but...Stimulus for Chitown. =)

Student Loan Payment Increased…

I got notice this morning that my student loan payment with Access group is increasing from $768 to $781. I am not exactly sure why since three of my loans are still in forbearance until June.

Swamped...

I am swamped at work. Oh my....

I will be back this afternoon to post. Hang in there with me. =)

Upped My 401k Contributions...

So I went online and changed my federal witholdings from 2 to 3 and I upped my 401k contributions back to 5%. The changes won't show up until my paycheck at the end of April since I only get paid once a month. That will give me at least 2 months of 401k contributions before the rest of loans go into repayment. That's $1,400 in contributions to my 401k in 2 months!!!

I will find out about the raise by the end of the month. If I get a raise, I believe I will be able to keep my contributions at 5%.

Thief...

Someone stole my yogurt at work from the fridge and it has been confirmed that somone else's yogurt was also recently stolen. Boo!!!

Giving Up Free Money...

I feel bad about scaling back my 401k contributions from 5% to 1%. My employer matches 100% up to 5% of my salary which means I could be contributing about $700/month to my 401k or $8,400/year based on my current salary. That monthly contribution could significantly help to improve my net worth in addition to the debt reduction.

One of my readers Aaren (thank you Aaren) suggested that I change my withholdings since I received such large tax refunds over the past few years…around $3k. Based on my spreadsheet, I believe that changing my withholdings from 2 to 3 would allow me to bump back up my 401k contribution to 5% and cause minimal impact to my current budget.


Hopefully, I will find out in the next few weeks if I will get a salary increase. It is my hope that the increase in my salary will cover the increase in my student loan payment come June. If all goes well, not only will I be contrubuting 5% to my 401k but I will also be repaying all of my student loans and credit card debt without minimal impact to my current budget.


Fingers Crossed!!!

Golf…

Is one of my favorite hobbies but it is also an expensive hobby. Why oh why?

My boyfriend and I took my Dad to the indoor golf dome near my house on Sunday. We paid for my Dad and split the bill among the two of us to the tune of $24/each for just 30 minutes on the range. Thankfully, you could chip and put all day for free.

We are all outdoors people in my family and thankfully my bf enjoys to play golf. I picked up the sport right after taking the bar in 2007 and since I am a natural athlete, I did pretty good right off the bat and fell in love. It’s just really expensive. If we went out every week, it could easily cost $200/month just in green fees alone. My park district course is even $45 for residents….ridiculous.

I wonder how much I am going to be able to play this Summer.

Monthly Progress Report...

Below is my monthly progress report. The budget is officially blown.

• Transportation will likely increase another $60. I will need to pay for parking at the concert on Thursday and I will also need to fill my gas tank at least once more this month.
• I am right at budget on Food & Dining, Grocery and Personal Care.
• I don't anticipate any further expenses under personal care. I think I have enough Proactiv to last me the rest of the month.
• I may need another $100 for Food & Dining to last the rest of the month.
• I don't anticipate that I will any groceries that will cost more than $25.
• My best friend's birthday is on March 25th. I may see if I can push getting her a gift off until the following next week when I get paid again.

Getting paid once a month is tough for budgeting my money. Overall, I think I need another $200 to get through the month. I have the money in my checking account so I will not have to pull from Savings or use Debt. Despite blowing my budget, this is probably the best month that I have had in over 2 years. The iReconcile checkbook app on my iPhone really helps me track my expenses and keep me on track.

Dreaming...

In a perfect student loan paying world, I would have an extra $300/month.

Then I would save $100 in a vacation fund, $100 in a Christmas fund and $100 towards my long-term savings goal.

In a perfect world...

Forecasting...

It’s hard for me to forecast my debt payoff to see how long it will take me to repay all of my debt. First, I am on a graduated repayment schedule on most of my loans which means that I am paying interest only for 2 years before I start principal and interest payments on some of my loans. Not all of them qualified because the loan balance was too low. So, I am paying principal and interest on those loans. Second, a lot of things in my life are up in the air. Will I finally land a higher paying law position, will my current employer finally pay me market (I am grossly underpaid…more on that later), will I ever get married and share expenses? If I got married, would I sell my condo and use the equity to pay down my loans. Will I, Would I, Will I….

Assuming things pretty much stay exactly the same, with minimal salary increases and the application of my annual bonus ($7k after taxes this year), it would take me about 12 years to pay off all of my debt.

If you look at the snowball calculator below….I used the custom method to determine my order of payoff. Now that I have a short-term emergency fund, my immediate concern is the payoff of my credit card debt. The promotional rate is set to expire at the end of January 2011. All of my private student loans pretty much carry the same interest rate so I placed those in the order of principal amount due. My federal loans may have a higher interest rate right now but those rates are fixed. A few years ago, the rate on my Private Loans were over 10% variable so paying off the variable rate loans take priority.

I am not at all concerned right now about the $64,000 in federal loans that I have consolidated at 3.5%. If it took me the entire 30 years to pay that off, I wouldn’t be too upset. The rate is so low as well as the payment. Push come to shove, once the other loans are paid off, I would rather focus on my retirement savings instead of the $300 payment on the consolidated loans. That’s neither here nor there because I have so many other loans to pay off first.

With Bonus - 12 Years

Without Bonus - 19 Years

Forecasting 2010 Progress…

One my readers Kris gave me the idea to do a little forecasting.

Here is what I think the picture will look like by year end from January to December (rounded) if all things stay the same. We'll see how I do at the end of the year.

Savings – $9,300 to $13,300 (Change of $4,000)
Student Loans – $232,300 to $229,900 (Change of $2,400)
Credit Card Debt – $23,000 to $18,600 (Change of $4,400)
Net Worth – ($157,400) to ($143,500) (Change of $13,900)

Vacation...

I really want to go on vacation. Two of my friends have been talking about taking a small trip to Puerto Rico in April. The thought was that we would have some extra funds from our tax returns so we could afford to go. Now we all know my financial situation. My mental situation is not so good either. I would love to get away to just escape for a few days, get my head together and disconnect from it all responsibly. I did a little research today and the cost of the trip would be about $800/person and I would need to factor in my dining and entertainment costs as well.

I have $2k in emergency savings, $10k in short-term savings, $250 in long-term savings and $500 in my checking account. The $250 came from my state tax return and change from my piggy bank that I need to deposit this weekend.

The only irregular expense that I anticipate in April is my quarterly water bill which is usually about $100. There are no birthdays in April so I don't need my budget for gifts. I am going to run the numbers and see what I can come up with because I really want to get away for a few days and have some fun.

I Played the Lottery…

Yes I did and I want to win!!!

Depending on the amount....At a minimum, I would pay off all of my debt including my mortgage, pay off my sister and my parent's non-mortgage debt since that would put them back into solvency, stay in my condo and travel for a little while. Then I think I would come back and start a small law practice of my own.

I would live modestly and I would love to have a family of my own.

I Want a New Job….

I know the job market is tight but I want a new job and I want a new job today. I am ready to leave and move on to a new experience. I’ve been with my employer since I interned in 1999 and I’ve never really worked anywhere else. I am just ready to go. I am underpaid and overworked just like everyone else…except some of my colleagues who think they are above the rules, when administrative tasks of the job are beneath them and when they make $20,000+ more than I do and do the exact same thing. It's time to go.

Parental Support…

How many of you get help from your parents?

I wish my parents had deep pockets but that’s not the case. They’re retired and living on a fixed income. I know my Mom and Dad wish they could help but I don’t think I would ever ask them for help unless it was absolutely necessary. I certainly don’t think I could do it with good conscience while still having cable and eating out. I know my Mom has offered to help now that my Dad is getting social security. She said that if it gets too tough to let them know. I just shook my head okay but I felt bad that she even had it on the brain.

So do you get parental support? How do you feel about it?

Dental Claim Processed…

I paid $149 for ½ of my dental services last week. The claim has already been processed by Aetna and I am only responsible for $16. I should receive a reimbursement check from the Dentist office for $133.

Monthly Progress Report…

Below is where I am compared to my budget. It’s close. I don’t know if I am going to make it but I am going to try really hard. The chart does not include the $149 I paid at the Dentist last week because that I reimbursable. I expect to receive a check by the end of the month.

The extra $136 in credit card payment is a holdover from when I was using my credit cards. I use one credit card where AT&T charges my phone, cell phone, cable and internet and my home security gets charged on the card as well. I pay the card off in full each month as part of my utility payment. So there is no extra balance on that card now.

I am finding that my transportation costs are a lot higher these days with gas prices, the additional networking which requires parking downtown, taxi rides, etc. My boyfriend also lives in the City so if I stay with him on any given night, I have to drive in to work the next day which means I also have to use one of my $18 parking passes. I try not to do that more than once or twice a month.

I am over on gifts as well and my best friend’s birthday is on March 25th.

$160 Friday…

Today was an expensive day.

I bought my assistant at work a $20 gift card for her birthday tomorrow and my Mother a $50 gift card for her Birthday today. Once I added birthday cards and activation fees, I walked out of Walgreens $90 lighter.

Then my Sister called on my way home to ask me to pick up the pizza since it was on the way to my parents' house. That also totaled $50. She and I are going to split the cost but it hit my checking account pretty hard.

To round off the day, I needed to stop at Walgreens this evening to pick up my prescription and a few toiletries totaling another $20.

I am going to have to tighten my purse strings for the rest of the weekend. It’s only the 5th of March and when you only get paid once a month…payday is a long way from now.

WordPress or Blogger…

Is WordPress or Blogger better and why?

Come on Weekend…

I am really looking forward to the weekend. I went to the Alicia Keys concert last night and I didn’t get to bed until almost 1 o’clock this morning. Since I had a meeting at 7:30 am, I had to get up at 5 am and drive all the way downtown to work. It usually takes about an hour to get downtown from the suburbs with morning traffic. Thankfully the expressway was pretty open but now… I am just TIRED!!!

My Mom’s 61st Birthday is tomorrow. I am going to pick her up a gift card this evening and split the cost of a new pair of walking shoes with my sister. I will probably make dinner on Saturday night and go out to a movie with my boyfriend. What to see? What to see?

My Dentist Office Sucks...

My dentist office which is affiliated with a Major Well Renown Hospital here in Chicago and my alma mater (hint…Go Cats!!!) has a policy where you must pay up front now for services. They changed the policy about a year or so ago. I've been putting off x-rays for a year because who the hell has $500 to pay up front for the teeth cleaning, the Dr. visit and the x-rays?

So I just called the office to see if I could pay for the Dr. visit and the cleaning up front and if they could bill the insurance company for the x-rays. The woman comes back and asks if I could pay at least ½. So, I asked how much would that be today and she said something to the tune of about $300!!! Umm….NO!!!!

Let’s not even mention that I have to take a taxi from the South Loop to the North Loop just to get to the office to the tune of another $20. I love my dental hygienist which is the only redeeming quality of this office but unfortunately I will have to say farewell. Today is my last visit and now I have to find another Dentist.

Goals for March 2010…

Here are my goals for March. Wish me luck. =)

• No new debt other than accrued interest on my loans in forbearance.
• Spend less than my monthly income of $4,340.
• Improve my net worth for the third straight month.
• Workout 2-3 times per week.
• Blog 4-5 times per week.

Moved My Savings…

I am boycotting Chase after they closed my checking account last week due to inactivity. BOO!!!

I moved my $2,000 local savings account to Bank of America. Once I finally pay off my Chase credit card, I will probably just simplify things and stick to using Bank of America. Besides, I like their online banking and their mobile banking applications.

See ya Chase!!!

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.