July 2007 Monthly Report…

I have to say that I did not keep a close eye on my finances in July or my ending balances due to studying for the bar, taking the bar and immediately traveling the very next day to Mexico for an entire week to attend my sister’s wedding.

Therefore, I came up with an adjusted month end balance sheet that figures in full repayment of my current credit card balance which was generated during the month of July (except the $750 for my car repairs) and $600 in unexpected residual medical bills that I received in July from a surgery that I had in 2005. I decided to pay off my credit card with savings versus carrying a balance forward. I also removed my credit card from my wallet. This is finally the end of that nonsense once and for all. No more excuses.

So, the balance sheet below is more reflective of my financial condition today rather than at month end. I will report at the end of this month on how I did for the rest of August.

Basically, my net worth declined ever so slightly but certainly in the right direction. I finally received the tuition reimbursement from my employer so a portion went to savings and the remainder went towards paying off my credit card balance and the medical bills previously mentioned.

I am finally on my way.

Getting Back to Business…

I just got back from Mexico on Thursday and now I am back to work after a month off. The bar exam is finally over and my sister also had a beautiful wedding in Cancun.

Not so good news for my finances…

I am getting hit with $600 in residual medical bills from a surgery I had 2 years ago, my car needed repairs on Friday to the tune of $750 and my hotel roommate for the bar exam decided not to stay with me and I got stuck with the entire $400 hotel bill.

Needless to say, I have a credit card bill hovering around $3,000 which includes my car repairs, hotel stay/parking expenses for the bar exam, and other travel expenses. But, it does not include the $600 in medical bills which I still need to pay. So, the figure is more like $4,000.

I have to decide whether to take the money out of my current savings balance of $15,000 thereby reducing it to $11,000 or to transfer the balance to a 0% credit card and try to pay it off over the next 5 months before my student loans kick in. I don’t really want to take on any more credit card debt but at the same time, the $15,000 that I have in savings is my emergency fund and 3 months of living expenses (including $1,500/month student loan payments).

I am leaning towards a cash only system and a balance transfer. There are no more major expenses on the horizon for me and with passing the bar exam, I should be able to land a better paying position very soon. I better pass that darn test or I am in trouble. =)

Bar Exam Next Week…

Sorry for the lack of posts. The bar exam and my sister’s wedding are both next week and I am going a little crazy at the moment.

I still haven’t received my tuition reimbursement from work yet. There is a new process and I have to say that it absolutely sucks. But anyway, studying is going well. I am off from work for the next 2 weeks…yeah for me…so that I can study, take the exam and attend my sister’s wedding in Mexico. Thank god!!!

Hope everyone is well. I won’t be back to post until after I get back from Cancun…Cheers!!!

June 2007 Monthly Report…

Bad month but good news…I am finally on the path to financial freedom!!!

My net worth took what could be its last negative dip this month and I am very excited about the future. I officially graduated from law school and I am taking the bar exam at the end of this month. My current employer is allowing me to take all of my vacation in July so I can really focus and pass the exam the first time around. Otherwise, I will be taking the exam in February. I feel a little behind with my preparation because I have been working full-time. It’s my hope that the time off will allow me to not only catch up but to center my mind and focus on what is the most important exam I will ever take in my life.

This month, I had some pretty big expenses including my sister’s wedding shower and more bar exam expenses. Plus, my 401k did poorly this month and my car depreciated a lot. I haven’t received my tuition reimbursement so that will be reflected next month and will improve my net worth.

Therefore, my journey officially begins here at ($92,445).

Neighbor’s Condo on the Market…

While completing a total random search, I found out that I have a neighbor who is moving and their condo is on the market. It is a 3 bedroom, 2 bath condo just like mine. The asking price is $165k. I currently value my condo on my balance sheet at $160k. I cannot wait to see how the sale pans out.

Student Loan Repayment Plan…

LawsFinance asked me a great question on what my plan is to repay my student loans. The current balance is $202,933 which is astronomical but not fatal.

Below is a schedule for my student loans including current interest rates, balances and terms.

The IDEAL order of payoff will be as follows:

1. Perkins Loan ($3k and easiest to pay off)


2. Private Loans


3. Grad Plus Loan


4. Federal Unconsolidated Loans


5. Federal Consolidated Loans

Current Repayment Schedule:

1. Federal Subsidized/Unsubsidized – 1/2008


2. Private Loans – 4/2008


3. Federal Consolidated & Grad Plus – 6/2008

My Plan:

1. Save $20k over the next 6 months.


2. Forbear Federal Subsidized/Unsubsidized for 6-12 months.


3. Forbear Private Loans for 6-12 months.


4. Payoff $3k Perkins Loan with bonus.


5. Payoff first $4.9k Private loan with a combination of tax return proceeds and cash flow.


6. Begin repayment on Federal Consolidated & Grad Plus – 6/2008. Total estimated monthly payment will be $525.


7. Continue paying off my HELOC/CC which is at $17k and 3.99% fixed for the life of the loan.


8. Land a law position paying a minimum of $90k.

May 2007 Financial Update…

Now that I am officially a graduate, I received the proceeds from by Bar Loan during May. This is the last student loan I will ever have to take out. Thank goodness. Right now, the funds are sitting in my WaMu savings account and will remain there as Emergency Funds.

I did some accounting changes to help sink my personal spreadsheets with Quicken. I get paid once a month at the very end of the month so the below balances include my April and May paychecks and 401k contributions. Going forward, everything will balance and reconcile better.

My student loans are still in deferment until next year so accruing interest will hurt for the next few months. For the remainder of the year, I will be trying to get a handle on my post-law school expenses, find another job, and improve my net worth as much as possible.

Going forward, June should see some slight improvement with the payoff my credit card in full and my last tuition reimbursement check. Then, everything will go back to a normal person with a crap load of debt.

*** Had to edit chart due to a mistake.

I am crazy…3-Flat Apartment Building…

I want to buy this three flat apartment building that is right down the street in a neighboring town. It’s a well-maintained building and boasts 2-three bedroom units and 1-two bedroom unit. There is no garage but there are 6 parking spaces in the back. Tenants pay their own heat and electricity. The building is in an excellent, excellent neighborhood with award winning schools so I don’t think it would be hard to rent out.

The price for the building is steep at $425,000. There was a similar building that sold in my neighborhood a few months back for $360,000 but it only had 6 bedrooms as opposed to this building having 8 bedrooms.

I could live in one unit and rent out the other two but that would mean giving up my condo which I love. I have enough equity in my place and savings to pay the down payment on the building but it’s a huge gamble that can either pay off well or sink me.

My current salary is $55k but with annual bonuses, I bring in just over $60k. I just graduated from law school a few weeks ago and I am preparing to take the bar exam. I anticipate that my income will increase substantially once I pass the bar and get a law position.

What to do, what to do? This is type of building is exactly what I have been looking for and what I have always wanted. I think over the long haul, it could be an excellent investment.

Returning Items…

I am spending some time today returning a few items to the store which amount to a little over $400. My mother also has a few items to ship back for me which total approximately $800. These returns should reduce the balance on my credit card so I can pay the balance off in full. Currently, the balance stands at almost $1,900.

Some of the purchases are related to trying unsuccessfully to find a dress to wear for graduation. So, my mother is shipping those purchases back. I purchased multiple dresses because I wasn’t sure what would work. I ended up wearing a black suit with a nice blouse, go figure. =) Regardless, my credit cards are always paid off in full.

I am still waiting to receive my final grades for the semester so I can submit my forms for tuition reimbursement. The good news that I have is that my employer is semi working with me and is allowing me to take all of my paid vacation time off in July to study for the bar and 4 days unpaid to attend my sister’s wedding in Cancun, which is just 2 days after the bar. The time off will also give me a little time to decompress following the exam.

The bad/tough news…no vacation time left for the remaining 5 months of the year. Therefore, finding a new position will be paramount.

Forbearance Application Approved…

The forbearance for my consolidated student loans has been approved by Access Group. I have to say, I have been very pleased with Access Group as my student loan lender. So far, they get an “A” in my book.

I called yesterday to confirm that the forbearance was approved and also spoke the customer service representative about loan consolidation. Since my federal student loans for my last year are already fixed at 6.9%, I can perform a separate consolidation for those loans in January and extend repayment from 10 years to 15years. While it is my hope to eventually accelerate loan pay down, the immediate relief would be nice while I tackle higher interest private loans.

Law School Graduation…

The Commencement Ceremony on Sunday was excellent, short and sweet. I am so happy and extremely grateful that my close family members and friends were able to come and celebrate with me. My family means a lot to me if it weren’t for them, all the struggle wouldn’t be worth it. But, I am a believer that every generation is supposed to get stronger.

As the daughter of a retired (soon-to-be) school teacher and truck driver, the sacrifices that they made for me will be worth it in the end. I hope to make them very proud. As an African American woman, I strive to set a good and positive example for those around me. I am determined to find a law position where I am able to earn a competitive salary and one that will afford me the opportunity to mentor young people and provide valuable community service via pro bono work. I know that it will always be a challenge to find time but if it’s important, I will find the time.

For the past 4 years, I’ve worked full-time in a Banking Financial Analyst position while attending law school part-time. Classes were generally four nights a week from 6-9:30pm. Then, I would make a 1-hour commute home to do it all over again the next day. To say that the last 4 years has been tough would be an understatement but I hope it will be worth it in the end. One thing is for sure, I am no stranger to hard work. =) I am preparing for the IL Bar Exam now and will take the exam the last week in July.

As for my finances, I filled out a forbearance form for my student loans to give me a reprieve until I am able to secure a law position. According to my student loan website, it appears as though I was approved because it now reports that my first payment that was due 6/1/2007 is now due 6/1/2008. I am in the process of simplifying everything and separating long-term savings from emergency funds.

My goal for the remainder of the year is to improve my net worth to under (-$80k) and double my $55k salary. I will be happy if my salary increases to a minimum of $85k.

7-Day Money Challenge…

Yahoo! Finance has an article today called the 7-Day Money Challenge .

Basically, the challenge calls for 3 steps:

1. Calculate how much cash you need to cover a week’s worth of variable expenses such as gas, groceries, quick fast food stops, books, music, gifts, etc.
2. Be honest and don’t overestimate to give yourself a big cushion.
3. Set the calculated amount aside and only use cash, no debt or credit cards.

Okay…I am feeling up for the challenge except I will allow myself to use my debit card for gas since this is actually more of a fixed expense for me. I will let you know how it comes out. =)

Finished Law School (Long Post)…

I finished my LAST law school final on Wednesday night and I am sooo excited. =) I graduate this Sunday and I start the bar prep course next Wednesday. Yippee!!!

On a financial note…

I received the funds from my last and final student loan. I am placing the money directly into my high yield savings account, which has been depleted almost completely over the last few months. The only remaining money that I expect to receive is tuition reimbursement. I will also be placing this money into the savings account. All in all, these funds will serve as my emergency fund and should total approximately $20k.

As for upcoming expenses, I need a new computer. My Dell computer was temporarily fixed but, now the mouse on my laptop is not working. To top things off, it makes beeping noises for no apparent reason and I am always afraid of when and if it will completely black out again. I am going to back-up all the rest my files this weekend and keep a look out on deals. I am hoping that I may receive a few graduation gifts which may help me with paying for a new computer. Who knows? I don’t expect anything and I shouldn’t but you never know.

Student loans…

Repayment of my federal student loans starts in June according my student loan website. I am a little startled by how quickly the first payment is due but of course I knew that I was giving up the grace period on my federal loans when I decided to consolidate. I looked into forbearance and filled out the form to see if I can put off payments for a few months until I am able to pass the bar exam and find a better paying job. Right now, it looks like total monthly payments once all loans kick into repayment will be $1,650 per month. Can you scream….OUCH!

The initial federal loan payment is almost $500, which would leave with $50 after all expenses for the month are paid. So as you can see…there isn't any wiggle room and certainly not enough cash flow to pay all my student loans. I will definitely need to land a new job before April 2008 when my private loans enter repayment.

Here is the student loan breakdown:

- Consolidated Federal Loans: $497 – payments begin 6/1/07
- Unconsolidated Federal Loans: $238 – payments begin 1/1/08
- Private Loans: $915 – payments begin 4/1/08
- Total Monthly Payment: $1,650

Okay...it kind of hurts to put everything out here but this is my reality (my current reality...soon to be my past reality)!

Thank You Dell Computers…

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

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

Thank you Dell!!!

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

Dell Computer Died…

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

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

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

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

April 2007 Recap…

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


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

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

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




*** Had to edit chart.

Condo Market Value…

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

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

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

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

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

Decisions… =)

March 2007 Recap...

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

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

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

So, here goes my March recap...

Tragic Day…

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

March Madness...

Hello everyone!

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

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

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