We left off junior year of college. Fast forward to the end of senior year. My last semester was student teaching. Our school specifically forbade working during this time, so Lubby worked as a temp which led to a full-time job. I had taken an extra semester to graduate, so he was done with his undergrad and was waiting for me to finish. Then we would move to Texas for Seminary.
It is pretty difficult to land a teaching gig in January, but I was basically offered my choice of two after student teaching. Lubby already had a job that was getting us by (although barely). We could now have two full-time incomes, but were so used to living on so little we would be able to save up a ton for our move. I fought very hard to stay in Oklahoma for those seven months and start Seminary in the fall.
Lubby felt strongly that God was calling us to move right away, however. So, with tearful submission, I forsook my worldly wisdom and we moved to Texas on a wing and a prayer-- no jobs, no prospects.
I started this blog not long after coming here. If you go back to the very beginning you'll see some of the things we did to get by. I worked as a substitute; I donated plasma; after a month or two, Lubby finally got a job as a waiter at Cracker Barrel. We were living on love and faith, taking just about any job we could to get by.
And we did get by. Eventually we even started to thrive a little bit. And for both of us, those "take whatever you can get" jobs were the avenue for major blessings...
Saturday, September 24, 2011
Saturday, September 17, 2011
How I became a Homemaker pt. 1-- The Very Beginning
I got married when I was 18. My husband (often referred to as "Lubby") and I were about to enter our junior year of college as full-time students. Starting out, we had a tiny bit of savings and I had a part-time job. Our expenses consisted of $350 for rent, about $75 for electricity, plus gas and food. After a few months Lubby got a part-time job as well. Our luxury expense was a $.99 drink from Sonic once a week.
We were poor, but not miserable. We didn't have cable or Internet (although we had it at school and could sometimes pick up the wifi from the apartment's clubhouse). We got help from family, who occasionally bought us "extravagant" groceries like hot chocolate mixes and paid for our cellphones on their family plan. We even lived with my parents for a while, though that's a whole other story.
One thing that had always been of the utmost importance to me was to stay at home with my kids. Lubby and I talked extensively about our future plans and how we were going to pull that off. We had two more years of school, plus two and a half years of Seminary for him. I would use my degree to work as a teacher while he was in school, then he would take over as provider and I could stay home.
Little did we know all of the adventures we would have in the mean time.
We were poor, but not miserable. We didn't have cable or Internet (although we had it at school and could sometimes pick up the wifi from the apartment's clubhouse). We got help from family, who occasionally bought us "extravagant" groceries like hot chocolate mixes and paid for our cellphones on their family plan. We even lived with my parents for a while, though that's a whole other story.
One thing that had always been of the utmost importance to me was to stay at home with my kids. Lubby and I talked extensively about our future plans and how we were going to pull that off. We had two more years of school, plus two and a half years of Seminary for him. I would use my degree to work as a teacher while he was in school, then he would take over as provider and I could stay home.
Little did we know all of the adventures we would have in the mean time.
Wednesday, September 14, 2011
You're Never Too Successful to Learn Something New
Financial Peace University is starting tonight at our church. I am beyond excited, especially because my husband and I have the great honor of helping facilitate the class.
I am always a little bit shocked (and dare I say slightly offended) when people are dismissive of the class. I shouldn't be, I know. I'm working on that part. But it always seems the conversation goes like this:
Now I know, I know; this person doesn't mean to be as condescending as they are coming across. Really, the sad part is this whole conversation is a product of double ignorance on their part: ignorance of my financial position and ignorance of the freedom that comes with having no payments and cash in the bank.
It seems to me that often people try to defend *not* taking the class when I mention that we're doing it.
The whole thing reminds me of freshman English 102 and our first introduction to Greek tragedy and hubris: that age-old self-pride which tells the hero that he can do it all himself and ultimately-- without fail-- leads to his demise. It is not so much inability, but a refusal to learn. After all, it takes humility to learn; you must admit what you think is correct may not be so.
If you don't take Dave Ramsey's advice, you may still succeed with money. But if your attitude is that of "I have nothing to learn from anybody" you will almost certainly fail at life.
I encourage everyone to take this class. I believe everyone, no matter how successful, can learn something from it. But if you don't want to take the class, please don't act like you've got it all figured out and the rest of us poor plebeians should go ahead.
I am always a little bit shocked (and dare I say slightly offended) when people are dismissive of the class. I shouldn't be, I know. I'm working on that part. But it always seems the conversation goes like this:
"I'm so excited to start FPU!"
"Oh? I know someone who did that. As for us, we already have it together. We only have one credit card. And I have to have a safe car, but our payment is affordable. We got a great interest rate because we have great credit. But good for you that you're doing it."
Now I know, I know; this person doesn't mean to be as condescending as they are coming across. Really, the sad part is this whole conversation is a product of double ignorance on their part: ignorance of my financial position and ignorance of the freedom that comes with having no payments and cash in the bank.
It seems to me that often people try to defend *not* taking the class when I mention that we're doing it.
The whole thing reminds me of freshman English 102 and our first introduction to Greek tragedy and hubris: that age-old self-pride which tells the hero that he can do it all himself and ultimately-- without fail-- leads to his demise. It is not so much inability, but a refusal to learn. After all, it takes humility to learn; you must admit what you think is correct may not be so.
If you don't take Dave Ramsey's advice, you may still succeed with money. But if your attitude is that of "I have nothing to learn from anybody" you will almost certainly fail at life.
I encourage everyone to take this class. I believe everyone, no matter how successful, can learn something from it. But if you don't want to take the class, please don't act like you've got it all figured out and the rest of us poor plebeians should go ahead.
Friday, August 26, 2011
Taking the Plunge
You know that feeling when you jump from a great height into a freezing cold body of water? The shock of the temperature; the surge of adrenaline; the deep, desperate gasp of air as your face finally breaks the surface and you can breathe again?
Isn't it wonderful? That is my life.
For about two weeks I have officially been a home maker. I say two weeks not because I just started, but because two weeks ago summer break ended, teachers returned to work, and I didn't.
Like the hot, miserable soul, I dove into a freezing river.
It is a great and glorious feeling full of excitement mixed with the tiniest twinge of apprehension. The shock-- was this really the best idea? Maybe I'll drown-- perhaps the promise of relief was not worth it after all. But it's the surfacing that makes the whole thing worth while. That deep gasp of breath-- the peace and joy of a risk well-taken.
With all of the costs counted, my husband and I jumped in together. Tonight we will do our first budget in two years that does not include my school checks. And we will swim.
So, as I sit here with my coffee and my cats, it's hard to hear all of those on the bank telling me I shouldn't have jumped. Because in the end, it's a whole other kind of drowning not to jump.
Isn't it wonderful? That is my life.
For about two weeks I have officially been a home maker. I say two weeks not because I just started, but because two weeks ago summer break ended, teachers returned to work, and I didn't.
Like the hot, miserable soul, I dove into a freezing river.
It is a great and glorious feeling full of excitement mixed with the tiniest twinge of apprehension. The shock-- was this really the best idea? Maybe I'll drown-- perhaps the promise of relief was not worth it after all. But it's the surfacing that makes the whole thing worth while. That deep gasp of breath-- the peace and joy of a risk well-taken.
With all of the costs counted, my husband and I jumped in together. Tonight we will do our first budget in two years that does not include my school checks. And we will swim.
So, as I sit here with my coffee and my cats, it's hard to hear all of those on the bank telling me I shouldn't have jumped. Because in the end, it's a whole other kind of drowning not to jump.
Wednesday, August 11, 2010
What to do
I've been struggling with what exactly to do with this blog.
I originally started it to bring people very real numbers-- a case study in personal finance, if you will. Yes, I want to post general tips and information, but I feel that a real see-exactly-how-and-if-this-is-working type blog is needed out there and I'm exactly the kind of bare-it-all kind of girl to do it. Theory is wonderful, but example is inspiring (or at least instructive)!
Yet, I'm in a place where I don't really know if I'm free to do that anymore. I didn't post real budget numbers during the school year because it's socially unacceptable to talk about exactly how much you make.
I personally think the taboo on salary is ridiculous. If someone isn't getting paid fairly, they should have a right to know. If the company won't fix it, they should (and do) have a right to quit. I work in a school, so any parent could come up and demand to see how much I get paid, my benefits, and even my address and phone number unless I specifically request my contact info be withheld. But, on the off-chance I make more than my co-workers, I don't want to be resented.
Then there's my husband. He is on staff at a church, so that makes things more complicated as well.
What is the answer here? Is it okay to continue posting real-life budget numbers? If we simply combined our incomes and didn't label exactly how much one or the other makes, would that be better? Any answers would be appreciated...
I originally started it to bring people very real numbers-- a case study in personal finance, if you will. Yes, I want to post general tips and information, but I feel that a real see-exactly-how-and-if-this-is-working type blog is needed out there and I'm exactly the kind of bare-it-all kind of girl to do it. Theory is wonderful, but example is inspiring (or at least instructive)!
Yet, I'm in a place where I don't really know if I'm free to do that anymore. I didn't post real budget numbers during the school year because it's socially unacceptable to talk about exactly how much you make.
I personally think the taboo on salary is ridiculous. If someone isn't getting paid fairly, they should have a right to know. If the company won't fix it, they should (and do) have a right to quit. I work in a school, so any parent could come up and demand to see how much I get paid, my benefits, and even my address and phone number unless I specifically request my contact info be withheld. But, on the off-chance I make more than my co-workers, I don't want to be resented.
Then there's my husband. He is on staff at a church, so that makes things more complicated as well.
What is the answer here? Is it okay to continue posting real-life budget numbers? If we simply combined our incomes and didn't label exactly how much one or the other makes, would that be better? Any answers would be appreciated...
Saturday, August 7, 2010
FPU-- Drinking the Kool-aid
We've finally done it. This Dave-junkie and her wonderful husband have finally taken the plunge and enrolled in Dave Ramsey's Financial Peace University.
We're the youngest in the class, which is both sad and exciting. I look forward to bringing new and not-so-new insights to this blog as a result of this class.
We are technically on baby step 4, but we aren't working it. Lubby's school is going to cost us an arm and a leg this semester, so in order to avoid debt and have him graduate next May we are having to cashflow like crazy. But, that's a different post. I hope to bring more info on those numbers very soon.
Until then~
We're the youngest in the class, which is both sad and exciting. I look forward to bringing new and not-so-new insights to this blog as a result of this class.
We are technically on baby step 4, but we aren't working it. Lubby's school is going to cost us an arm and a leg this semester, so in order to avoid debt and have him graduate next May we are having to cashflow like crazy. But, that's a different post. I hope to bring more info on those numbers very soon.
Until then~
Thursday, July 22, 2010
The two rules to becoming a millionaire
Many times people avoid dealing with their finances or striving to do better for a very simple reason: they think it is too complicated. It is true, striving to navigate the world of mutual funds, IRAs, 401(k)s, 203(b)s, REITs, DRIPs, and on and on... wow. I'm stressed out just thinking about the massive amount I DON'T know about these things.
Really, though, there are only two rules to become wealthy, and they are the rules we live by. They are:
1. Live on less than you make and save the difference
2. Avoid debt
Everyone does better when these two rules are followed. Are there strategies for maximizing the return on that savings? Of course. but even if a body starts by hiding the money in his sock drawer he will be on his way to his first million. So start. We'll work on the details as we go.
Really, though, there are only two rules to become wealthy, and they are the rules we live by. They are:
1. Live on less than you make and save the difference
2. Avoid debt
Everyone does better when these two rules are followed. Are there strategies for maximizing the return on that savings? Of course. but even if a body starts by hiding the money in his sock drawer he will be on his way to his first million. So start. We'll work on the details as we go.
Wednesday, March 31, 2010
Carnival of Personal Finance
Blog readers! My article "How to suck the fun out of $10k" was featured in the Carnival of Personal Finance this week! Check it out!
Saturday, March 20, 2010
How to suck the fun out of $10k
Ok, well, the title might be a little bit misleading. After all, I think the following is fun! However, I'm a nerd :)
I mentioned in the previous post that we are receiving nearly $10,000 back with our tax refund. That's a full third of all the money we made last year! The exact number is $9,586 of basically found money.
I want you to think of the 22-year-olds that you know. Now think of handing one of those people 10 grand. Are you shuddering? I thought so.
However, Lubby and I are not your typical twenty-somethings. Hence the title of this post. We've already spent this money on paper, on purpose, before even getting it. The following is a break-down of how we've sucked the fun out of this huge amount of money.
9586
-195 tax preparer fee
9391
-2516 pay off carpet debt
6875
-5000 finish off emergency fund (3+ months)
1875
-1800 "pay back" to ourselves (we had to borrow personal fun money to live on sometimes)
75
-75 nice dinner somewhere
0
Now, I know this isn't as exciting as a whirlwind trip to New Zealand. Yet I get butterflies of excitement knowing that we will have our emergency fund finished and be ready to dump all of our extra income into IRAs, saving for said trip to NZ, and our mortgage.
Yes, I know you are amazed. I will consider coming to speak to your 20-something son or daughter about the virtues of financial wisdom. First you must be really nice to me :)
In all seriousness, though, why is our financial picture so far out of the norm for our demographic? It CAN be done, and it's not like we even make very much money. If you know someone just getting started in life, or someone who's lost hope in young America, or anyone really who might be inspired by our journey, please pass this blog on.
I mentioned in the previous post that we are receiving nearly $10,000 back with our tax refund. That's a full third of all the money we made last year! The exact number is $9,586 of basically found money.
I want you to think of the 22-year-olds that you know. Now think of handing one of those people 10 grand. Are you shuddering? I thought so.
However, Lubby and I are not your typical twenty-somethings. Hence the title of this post. We've already spent this money on paper, on purpose, before even getting it. The following is a break-down of how we've sucked the fun out of this huge amount of money.
9586
-195 tax preparer fee
9391
-2516 pay off carpet debt
6875
-5000 finish off emergency fund (3+ months)
1875
-1800 "pay back" to ourselves (we had to borrow personal fun money to live on sometimes)
75
-75 nice dinner somewhere
0
Now, I know this isn't as exciting as a whirlwind trip to New Zealand. Yet I get butterflies of excitement knowing that we will have our emergency fund finished and be ready to dump all of our extra income into IRAs, saving for said trip to NZ, and our mortgage.
Yes, I know you are amazed. I will consider coming to speak to your 20-something son or daughter about the virtues of financial wisdom. First you must be really nice to me :)
In all seriousness, though, why is our financial picture so far out of the norm for our demographic? It CAN be done, and it's not like we even make very much money. If you know someone just getting started in life, or someone who's lost hope in young America, or anyone really who might be inspired by our journey, please pass this blog on.
Friday, March 19, 2010
Age-old Tax-time Tips
Yesterday, Lubby and I had an appointment to have our taxes done. We've always done them ourselves before, but since we have a first-time home buyer credit in the mix this year we wanted to have a professional work on it. We went in with our tax forms and about half an hour later we walked out expecting $9,500 back from old Uncle Sam.
I learned a few things and was reminded of a few things regarding taxes in light of this experience.
1. There is nothing wrong with hiring a professional. Although I've been accustomed to doing our taxes myself, it was a nice break to let the pros do it. With the amount we're getting back it was well worth the $200. With 3 W-2s a piece, my home based business, Lubby's school tuition and our FTHB credit it was a pretty complicated return for the money.
2. Dave Ramsey's Endorsed Local Providers (ELPs) are great. Well, at least this one was. He really did make us feel at ease and even took the time to explain to us that Lubby's future career as a minister will give him a window of opportunity to opt-out of social security.
3. You do not want a tax refund. I know we're celebrating, but we honestly couldn't have kept the government from taking what they did. Most of that refund is from the house, which is a huge exception to the rule of "a tax refund is not a gift from the government." We only actually paid about $750. It's much better to keep the money every month than to get it a year later with not interest!
In my classroom, I have my students provide us with "three good things" to start off each class. One day a student's good thing was that she just got a new game and flat screen TV because her daddy got a tax refund. Another student chimed in and said that he can't wait to grow up and pay taxes so he can get a refund! I just had to laugh!
4. If you are getting a tax refund, decide how you will spend it now. It does you no good to get a few thousand dollars back if you blow it all. Pay off some debt, pad your emergency fund, or invest it. Just don't blow it!
I learned a few things and was reminded of a few things regarding taxes in light of this experience.
1. There is nothing wrong with hiring a professional. Although I've been accustomed to doing our taxes myself, it was a nice break to let the pros do it. With the amount we're getting back it was well worth the $200. With 3 W-2s a piece, my home based business, Lubby's school tuition and our FTHB credit it was a pretty complicated return for the money.
2. Dave Ramsey's Endorsed Local Providers (ELPs) are great. Well, at least this one was. He really did make us feel at ease and even took the time to explain to us that Lubby's future career as a minister will give him a window of opportunity to opt-out of social security.
3. You do not want a tax refund. I know we're celebrating, but we honestly couldn't have kept the government from taking what they did. Most of that refund is from the house, which is a huge exception to the rule of "a tax refund is not a gift from the government." We only actually paid about $750. It's much better to keep the money every month than to get it a year later with not interest!
In my classroom, I have my students provide us with "three good things" to start off each class. One day a student's good thing was that she just got a new game and flat screen TV because her daddy got a tax refund. Another student chimed in and said that he can't wait to grow up and pay taxes so he can get a refund! I just had to laugh!
4. If you are getting a tax refund, decide how you will spend it now. It does you no good to get a few thousand dollars back if you blow it all. Pay off some debt, pad your emergency fund, or invest it. Just don't blow it!
Tuesday, February 2, 2010
New Year's Resolutions
Yes, it is February. No, it is not too late to make resolutions.
I usually shy away from new year's resolutions. They're just so cliche, and I hate failure. But, to butcher an old adage: if you aim for nothing, you hit it every time. This year I have a list of attainable goals because let's face it: no one wants to be exactly the same person at the end of this year that they were the end of last year. Major "ouch" moment of self-reflection when I realized that I had not really improved personally over the last year. Let's not dwell...
"The List" (cue horror movie music) has several goals that cover various aspects of life: personal, relational, spiritual, financial, etc. The goal is to grow in a balanced way, and not to set the bar so high that you're discouraged by day 2. If you're like me, you really *really* want to set that bar ridiculously high. To allow for this, several of the goals (like the financial ones, of course!) have a goal and a challenge goal.
Now, it would be really cruel of me to tell you all of this and then not let you in on my goals/resolutions. What kind of PF blogger would I be then? A few of my goals that relate to finance are:
I usually shy away from new year's resolutions. They're just so cliche, and I hate failure. But, to butcher an old adage: if you aim for nothing, you hit it every time. This year I have a list of attainable goals because let's face it: no one wants to be exactly the same person at the end of this year that they were the end of last year. Major "ouch" moment of self-reflection when I realized that I had not really improved personally over the last year. Let's not dwell...
"The List" (cue horror movie music) has several goals that cover various aspects of life: personal, relational, spiritual, financial, etc. The goal is to grow in a balanced way, and not to set the bar so high that you're discouraged by day 2. If you're like me, you really *really* want to set that bar ridiculously high. To allow for this, several of the goals (like the financial ones, of course!) have a goal and a challenge goal.
Now, it would be really cruel of me to tell you all of this and then not let you in on my goals/resolutions. What kind of PF blogger would I be then? A few of my goals that relate to finance are:
- Cook dinner 4 times per week
This goal wasn't made for financial reasons, but obviously has financial impact. We don't usually eat out that often, but taking more control over what is made will help with the food budget. Look forward to hearing about adventures in the kitchen, including my new favorite: rotisserie chicken in the crock pot.
- Start tithing again
This is very important to both me and my husband. We've been out of practice for a while, mostly because I'm uncomfortable contributing to a church where we're not members, and I'm uncomfortable contributing to the church where we are members since we don't attend there.
- Open retirement accounts
I'm thinking Roths, but my district has a 203b option, too. I also need to learn more about my options with my teachers' retirement deductions.
- Pay extra on our mortgage (round up to $1,000)
- CHALLENGE GOAL: Pay down 20% of the loan this year (approx. $1900/pymt)
Yes, we bought a house. It's great. I would like to have it paid off in 5 years. Possible? Maybe not, but it will be fun to try.
What are your resolutions? If you haven't made any, it isn't too late. Post below so I can cheer you on!
Sunday, August 9, 2009
Frugal Flummox
Well, today was not exactly what I expected. I made an error that seriously interrupted my day and wasted a whole day's worth of income. Yet, there is a little bit of pride in myself and my ability to stand up for myself. Read on...
The error: I locked my keys in my car. Again.
Please understand, we only have one key to my car. And I was getting ready to go to work when I discovered it. Double-whammy. Sad thing is, I had been thinking just the other day that we should get some more keys made, just in case. Would have been more frugal to spend the extra few bucks to save the ordeal I just had. Where did I put that Murphy repellent...
So, I spend the next two hours calling my student to reschedule tutoring and calling around to locksmiths trying to find a deal. Finally find one, about $10 more than the cheapest guy, but seemed a lot less shady on the phone. Or not...
Mr. (lock)Smith finally finds the place, pulls up, and looks in my car window. "It will be $40 for the service and $80 for me to unlock it." (Did I forget to mention I've done this before? I know how easy it is to break into my car...).
I look at Mr. Smith, dumbfounded, and finally inform him that I don't have it, thank you, I'll call someone else. (I do have it, but there is no way on God's green earth I am paying him $120 to put a hanger in my window, thank you very much!)
Mr. Smith doesn't like that idea. He wants to know how much I expected. I told him the dispatcher said it would be about $40 for the service and $15 for the labor. (She told me $15+, but since I know there is pretty much no labor involved, I expect to only have to pay $15).
He calls, talks on the phone for a little bit, then calls me back and says he can do it for $80. I shrug and tell him I don't have it.
"How much do you have?" (I think this is the most unprofessional thing you can ask a customer!)
"$55"
"Cash? OK, but I just won't give you a receipt."
What do I care if he gives me a receipt? It's not like I'm going to pay him before I get my keys out! He pulls out what amounts to a small blood pressure cuff and a thick coat hanger, jams the cuff in the door to separate the seal enough to put the coat hanger in, and uses the bent end to pull my manual lock. The whole thing takes about 90 seconds. I retrieve the cash and pay the man.
Outside, he has the receipt (I thought there would be no receipt?) with $40 for the service and $15 for the break in and asks me to sign it and gives me the carbon copy. I ask for a card, but he won't give me one. When I get inside, I discover that the carbon had been altered underneath so that the copy I have says that I spent $80. Quite suspicious, but I can't think of any reason why that could negatively impact me. After all, I paid in cash and since he left how would he prove I didn't pay him $80?
After a quick call to my dad for some semi-legal advice (can this false carbon copy bite me in the butt?), I have mixed emotions. On the one hand, $55 is a huge amount of money for us at the moment. On the other hand, I feel somewhat proud and confident in myself, having stood up for myself and "haggling" down the price. I tend to be a "just pay the man" kind of person. Who knows, maybe this is the beginning of a more assertive me.
Now, I'm off to get some keys made for my car...
How about you? Anyone try to royally rip you off lately? Did you succumb? Did you stand up for yourself? I want to hear about it!
The error: I locked my keys in my car. Again.
Please understand, we only have one key to my car. And I was getting ready to go to work when I discovered it. Double-whammy. Sad thing is, I had been thinking just the other day that we should get some more keys made, just in case. Would have been more frugal to spend the extra few bucks to save the ordeal I just had. Where did I put that Murphy repellent...
So, I spend the next two hours calling my student to reschedule tutoring and calling around to locksmiths trying to find a deal. Finally find one, about $10 more than the cheapest guy, but seemed a lot less shady on the phone. Or not...
Mr. (lock)Smith finally finds the place, pulls up, and looks in my car window. "It will be $40 for the service and $80 for me to unlock it." (Did I forget to mention I've done this before? I know how easy it is to break into my car...).
I look at Mr. Smith, dumbfounded, and finally inform him that I don't have it, thank you, I'll call someone else. (I do have it, but there is no way on God's green earth I am paying him $120 to put a hanger in my window, thank you very much!)
Mr. Smith doesn't like that idea. He wants to know how much I expected. I told him the dispatcher said it would be about $40 for the service and $15 for the labor. (She told me $15+, but since I know there is pretty much no labor involved, I expect to only have to pay $15).
He calls, talks on the phone for a little bit, then calls me back and says he can do it for $80. I shrug and tell him I don't have it.
"How much do you have?" (I think this is the most unprofessional thing you can ask a customer!)
"$55"
"Cash? OK, but I just won't give you a receipt."
What do I care if he gives me a receipt? It's not like I'm going to pay him before I get my keys out! He pulls out what amounts to a small blood pressure cuff and a thick coat hanger, jams the cuff in the door to separate the seal enough to put the coat hanger in, and uses the bent end to pull my manual lock. The whole thing takes about 90 seconds. I retrieve the cash and pay the man.
Outside, he has the receipt (I thought there would be no receipt?) with $40 for the service and $15 for the break in and asks me to sign it and gives me the carbon copy. I ask for a card, but he won't give me one. When I get inside, I discover that the carbon had been altered underneath so that the copy I have says that I spent $80. Quite suspicious, but I can't think of any reason why that could negatively impact me. After all, I paid in cash and since he left how would he prove I didn't pay him $80?
After a quick call to my dad for some semi-legal advice (can this false carbon copy bite me in the butt?), I have mixed emotions. On the one hand, $55 is a huge amount of money for us at the moment. On the other hand, I feel somewhat proud and confident in myself, having stood up for myself and "haggling" down the price. I tend to be a "just pay the man" kind of person. Who knows, maybe this is the beginning of a more assertive me.
Now, I'm off to get some keys made for my car...
How about you? Anyone try to royally rip you off lately? Did you succumb? Did you stand up for yourself? I want to hear about it!
Thursday, June 11, 2009
Living "a month ahead"
While most people are living "month-to-month," my husband (Lubby) and I live "a month ahead." Let me 'splain.
(Just thought an update would be appropriate in regards to the car: we just sent $1400 to the bank, so our liability is down to $1055. Hurrah!) That means that after everything we've taken out so far (most of our bills are at the beginning of the month), we are left with about $500 in the checking account and little expected for the rest of the month. So, why am I not panicked?
It has to do with our version of the "zero-based budget." At the beginning of the month (or the end of the previous month), I: take a look at our budget for the upcoming month, put the 'envelope money' (gifts, groceries, blow, and clothes) in its respective envelope, add whatever money Lubby's school will deduct to the budget requirement, then take everything else and put it to the car. This accomplishes three things:
1. It makes sure we are attacking our debt aggressively by putting every extra penny toward it.
2. It ensures that no matter what happens, we can pay our bills for this month.
3. It give my husband peace of mind.
So, let's take June as an example. We had $3000 in the bank. With budget and school, we needed $1700. Thus, we had $1300 extra to send to the car, plus the $100 that was part of the original budget, or $1400. We were left with $1600
1600
-468 rent+water
-354 school
-150 groceries
-120 envelopes
508 remaining for the rest of the month
Let's say I bring in $300 this month and Lubby brings in $600. We will likely start July with about $1100, but since we were a month ahead, we still have time to catch our income up to our expenses. By the end of July we should be able to send another 'extra' payment to the car-- perhaps even pay it off.
I can understand why this system might not work for everyone:
-Having that money there could be a huge temptation since it feels like 'extra'
-It could be difficult to amass a whole month's living expenses ahead of time (although, if we can do it...)
However, I find our system to be infinitely better than living "month-to-month" and having to worry whether or not I will be able to pay the rent. As long as at least one income continues, I would say we have at least two months of being behind before we really run out of money and have to tap the emergency fund. Knowing I have food, and knowing well in advance if I really must only buy beans and rice next month, is what I call peace of mind.
(Just thought an update would be appropriate in regards to the car: we just sent $1400 to the bank, so our liability is down to $1055. Hurrah!) That means that after everything we've taken out so far (most of our bills are at the beginning of the month), we are left with about $500 in the checking account and little expected for the rest of the month. So, why am I not panicked?
It has to do with our version of the "zero-based budget." At the beginning of the month (or the end of the previous month), I: take a look at our budget for the upcoming month, put the 'envelope money' (gifts, groceries, blow, and clothes) in its respective envelope, add whatever money Lubby's school will deduct to the budget requirement, then take everything else and put it to the car. This accomplishes three things:
1. It makes sure we are attacking our debt aggressively by putting every extra penny toward it.
2. It ensures that no matter what happens, we can pay our bills for this month.
3. It give my husband peace of mind.
So, let's take June as an example. We had $3000 in the bank. With budget and school, we needed $1700. Thus, we had $1300 extra to send to the car, plus the $100 that was part of the original budget, or $1400. We were left with $1600
1600
-468 rent+water
-354 school
-150 groceries
-120 envelopes
508 remaining for the rest of the month
Let's say I bring in $300 this month and Lubby brings in $600. We will likely start July with about $1100, but since we were a month ahead, we still have time to catch our income up to our expenses. By the end of July we should be able to send another 'extra' payment to the car-- perhaps even pay it off.
I can understand why this system might not work for everyone:
-Having that money there could be a huge temptation since it feels like 'extra'
-It could be difficult to amass a whole month's living expenses ahead of time (although, if we can do it...)
However, I find our system to be infinitely better than living "month-to-month" and having to worry whether or not I will be able to pay the rent. As long as at least one income continues, I would say we have at least two months of being behind before we really run out of money and have to tap the emergency fund. Knowing I have food, and knowing well in advance if I really must only buy beans and rice next month, is what I call peace of mind.
Wednesday, June 3, 2009
Net Worth-- May 2008
Unfortunately, I will be unable to give a budget-breakdown for the last few months. Truth be told, I've/we've been somewhat rebellious with the uber-tight budget. The end of May found us at a restaurant nearly every day (sometimes twice a day). Thankfully, Lubby's steady part-time work and my three part-time jobs made for more wiggle room than I remember having ever in our married lives.
Follows is an update on where we stand as of the first of June:
Assets:
Checking: $3,000
Savings: $1,005
Liabilities:
Car: $2,435
Net Worth:
$1,570
**********
Would you look at that! A positive net worth! In only a few short months of focused dedication, we can not only afford to live, but pay down our debts and own more than we owe as well! Exciting! This net worth number is excluding student loans. Both my husband and I are blessed to have parents who shoulder that load for us. Should the time come when we take on that responsibility, I will add it to the "liabilities" list.
June is going to be a 'survival' month. We likely will not make as much money in June as our budget requires (about $1700 with Lubby's school). Fortunately, July looks like it will be much more lucrative-- we only need to make it until then. I shall explain how our budget allows for this 'short' month in an upcoming post. Until then~
For a look back, see February's update and January's initial post.
Follows is an update on where we stand as of the first of June:
Assets:
Checking: $3,000
Savings: $1,005
Liabilities:
Car: $2,435
Net Worth:
$1,570
**********
Would you look at that! A positive net worth! In only a few short months of focused dedication, we can not only afford to live, but pay down our debts and own more than we owe as well! Exciting! This net worth number is excluding student loans. Both my husband and I are blessed to have parents who shoulder that load for us. Should the time come when we take on that responsibility, I will add it to the "liabilities" list.
June is going to be a 'survival' month. We likely will not make as much money in June as our budget requires (about $1700 with Lubby's school). Fortunately, July looks like it will be much more lucrative-- we only need to make it until then. I shall explain how our budget allows for this 'short' month in an upcoming post. Until then~
For a look back, see February's update and January's initial post.
Tuesday, May 19, 2009
An unusual way to 'make' money...
Quick tip tonight: The government holds onto your stuff (or sells it and holds onto the cash) for you-- indefinitely. After all, if they kept it, it would be stealing.
You've probably seen the commercials/spam for services that locate untold millions of dollars that are "rightfully yours." Truth be told, there could be some money that is rightfully yours; and you don't have to pay someone to find it for you!
Simply visit unclaimed.org, click on your state, and the link will take you to your state's treasurer's website where you can search for your treasures (and that of your family). Be sure to check each state in which you have lived.
Although not really a method for earning money, it is a fun way to spend a few minutes online and perhaps receive some money anyway. I think my husband's family might have something owed to them...
I look forward to hearing about your treasures.
You've probably seen the commercials/spam for services that locate untold millions of dollars that are "rightfully yours." Truth be told, there could be some money that is rightfully yours; and you don't have to pay someone to find it for you!
Simply visit unclaimed.org, click on your state, and the link will take you to your state's treasurer's website where you can search for your treasures (and that of your family). Be sure to check each state in which you have lived.
Although not really a method for earning money, it is a fun way to spend a few minutes online and perhaps receive some money anyway. I think my husband's family might have something owed to them...
I look forward to hearing about your treasures.
Saturday, May 16, 2009
Hooray for Murphy-repellant
Murphy's Law: Anything that can go wrong, will.
A few weeks ago, the air conditioner in my car went out. It started making a noise that sounded like air escaping and then started blowing hot air. Not a good thing, especially when it's already consistently 80-90 degrees here.
When we bought the car, the air was blowing hot. I'm glad we checked, because it was October when we bought it. We had them check it out before we signed anything. It was a good thing, the salesman insisted, because instead of the 'just a recharge' fix he had previously insisted it was, it was a crack in the condenser, and that would have cost several hundred dollars to fix. But, since they caught it before we bought it, they fixed it for us-- no charge.
Fast forward to April. After a few weeks of light AC use, it starts making that ominous hissing sound and blowing hot. Since I have very little clue about anything under the hood, I couldn't remember what part it was that was broken before or what exactly was wrong with it. We took it in to an independent mechanic and got it diagnosed and repaired-- this time they replaced the whole condenser. Stupid, slimy used-car dealer not fixing it like they were supposed to... Oh, did I say that out loud?
Damage: $600
But you know what? That's OK! Because even though Murphy was in my back seat by right (I did finance the car, you know), we made it clear he was not welcome and kicked him to the curb.
How? Our mini-emergency fund. We followed Dave's advice (Dave Ramsey) and kept $1,000 in the bank "just in case." So, a problem that could have wreaked havoc on our finances was really simply a matter of getting it fixed, paying the guy, and taking it home.
Moral of the story: Get an emergency fund! Sock away every spare dollar you find until you have that little safety net safely in a high-yield savings account! That way, when life throws you lemons, you can say, "Hey, look! It's a lemon!" and get on with your life. Without the safety net, life throws you lemons, and all you can do is suck the juice out until your face is puckered grotesquely. So just do it. Start today. You'll be glad you did.
A few weeks ago, the air conditioner in my car went out. It started making a noise that sounded like air escaping and then started blowing hot air. Not a good thing, especially when it's already consistently 80-90 degrees here.
When we bought the car, the air was blowing hot. I'm glad we checked, because it was October when we bought it. We had them check it out before we signed anything. It was a good thing, the salesman insisted, because instead of the 'just a recharge' fix he had previously insisted it was, it was a crack in the condenser, and that would have cost several hundred dollars to fix. But, since they caught it before we bought it, they fixed it for us-- no charge.
Fast forward to April. After a few weeks of light AC use, it starts making that ominous hissing sound and blowing hot. Since I have very little clue about anything under the hood, I couldn't remember what part it was that was broken before or what exactly was wrong with it. We took it in to an independent mechanic and got it diagnosed and repaired-- this time they replaced the whole condenser. Stupid, slimy used-car dealer not fixing it like they were supposed to... Oh, did I say that out loud?
Damage: $600
But you know what? That's OK! Because even though Murphy was in my back seat by right (I did finance the car, you know), we made it clear he was not welcome and kicked him to the curb.
How? Our mini-emergency fund. We followed Dave's advice (Dave Ramsey) and kept $1,000 in the bank "just in case." So, a problem that could have wreaked havoc on our finances was really simply a matter of getting it fixed, paying the guy, and taking it home.
Moral of the story: Get an emergency fund! Sock away every spare dollar you find until you have that little safety net safely in a high-yield savings account! That way, when life throws you lemons, you can say, "Hey, look! It's a lemon!" and get on with your life. Without the safety net, life throws you lemons, and all you can do is suck the juice out until your face is puckered grotesquely. So just do it. Start today. You'll be glad you did.
Friday, May 15, 2009
Brief update
Wow, it's been a while! I've missed March and April's budget/net worth updates, plenty of government financial insanity, Swine Flu panic, and plenty of other blog-worthy subject matter in the interim. But, rest assured, I have not been sitting around doing nothing. No! Here is what I/we have been doing these past two months.
I have been substitute teaching. A lot. I feel like I work, work, work.
I have been teaching voice lessons as well. This does not take up a whole awful lot of time, but it is nonetheless a weekly time commitment. More will be added this summer when some of my students from the school will be taking private voice lessons.
I traveled out of state to help my dad in a craft show that my mom was unable to go to. Not a lot of traffic but a very good time with my dad and a few bucks to show for it.
I started another part-time job. I teach at a well-known test-prep company. (I always knew those ridiculously high test scores would pay off). The pay is actually pretty good for a part-time job, plus I get paid for out-of-class time I spend preparing for each class. And by pretty good, I mean better than my mom's job that she's good at and has been at for several years. Too bad it's only about 15 hours a week.
Outside of work, we rescued a 1-1/2 week-old kitten, bottle fed her, weaned her, and are now litter-training her (she's now about 8 weeks old). We've made some inexpensive improvements to our apartment to make it more home-y. Currently, we spend a lot of time researching, choosing, and driving by homes for sale in our area that are in (what we believe to be) our price range.
I've fallen off the bandwagon a bit as far as couponing goes. I've been working so much and had been spending much more time looking for deals than I really should have that I put it on the back burner for now.
This post is not really very meaty, but I wanted to give everyone an update and mini-explanation as to why I've been so silent before abruptly jumping into more intense subject matter.
Posts may continue to be somewhat spotty for the next few weeks as the school year winds down, but once summer hits, look forward to more consistent work. I look forward to reconnecting with my readers.
I have been substitute teaching. A lot. I feel like I work, work, work.
I have been teaching voice lessons as well. This does not take up a whole awful lot of time, but it is nonetheless a weekly time commitment. More will be added this summer when some of my students from the school will be taking private voice lessons.
I traveled out of state to help my dad in a craft show that my mom was unable to go to. Not a lot of traffic but a very good time with my dad and a few bucks to show for it.
I started another part-time job. I teach at a well-known test-prep company. (I always knew those ridiculously high test scores would pay off). The pay is actually pretty good for a part-time job, plus I get paid for out-of-class time I spend preparing for each class. And by pretty good, I mean better than my mom's job that she's good at and has been at for several years. Too bad it's only about 15 hours a week.
Outside of work, we rescued a 1-1/2 week-old kitten, bottle fed her, weaned her, and are now litter-training her (she's now about 8 weeks old). We've made some inexpensive improvements to our apartment to make it more home-y. Currently, we spend a lot of time researching, choosing, and driving by homes for sale in our area that are in (what we believe to be) our price range.
I've fallen off the bandwagon a bit as far as couponing goes. I've been working so much and had been spending much more time looking for deals than I really should have that I put it on the back burner for now.
This post is not really very meaty, but I wanted to give everyone an update and mini-explanation as to why I've been so silent before abruptly jumping into more intense subject matter.
Posts may continue to be somewhat spotty for the next few weeks as the school year winds down, but once summer hits, look forward to more consistent work. I look forward to reconnecting with my readers.
Friday, April 17, 2009
Tax day has come and gone...
Tax day is gone, and many Americans (myself included) have again waited until the last possible moment to file their taxes.
Filing, while not overly difficult, was somewhat complicated for us this year. We had four W-2s and a Schedule C (for reporting business income/loss), student loan interest reports, plus 1098s for form 8863 (Lifetime Learning Credit) that we eventually found we couldn't even use because we didn't have a tax liability. There's a lot of math involved-- more than just copying numbers from your W-2. Yet, when all was said and done, we will be receiving $631 back from the federal government, plus some from state as well.
This was the first year my husband and I have filed jointly. Previously, school bills and my business had led me to believe that it would just be easier to keep it all separate. I discovered this year that that is not the case. In fact, we likely would not have been able to get as much of a refund if we had filed separately.
Speaking of the math involved, why do so many of us wait until the last minute? Really, most people have 1-2 W-2s and might as well take the standard deductions. Doing taxes that way is very, *very* simple, and with all of the tax software out, even more complicated returns are not much more than clicking a few buttons.
But, per usual, people have waited until the last possible moment. Again. Myself included. If it weren't for deadlines, some things would never get done.
Filing, while not overly difficult, was somewhat complicated for us this year. We had four W-2s and a Schedule C (for reporting business income/loss), student loan interest reports, plus 1098s for form 8863 (Lifetime Learning Credit) that we eventually found we couldn't even use because we didn't have a tax liability. There's a lot of math involved-- more than just copying numbers from your W-2. Yet, when all was said and done, we will be receiving $631 back from the federal government, plus some from state as well.
This was the first year my husband and I have filed jointly. Previously, school bills and my business had led me to believe that it would just be easier to keep it all separate. I discovered this year that that is not the case. In fact, we likely would not have been able to get as much of a refund if we had filed separately.
Speaking of the math involved, why do so many of us wait until the last minute? Really, most people have 1-2 W-2s and might as well take the standard deductions. Doing taxes that way is very, *very* simple, and with all of the tax software out, even more complicated returns are not much more than clicking a few buttons.
But, per usual, people have waited until the last possible moment. Again. Myself included. If it weren't for deadlines, some things would never get done.
Wednesday, March 25, 2009
It's about what you do with it
I have to admit, I'm a sucker for testimonials. I recently spent hours on Dave Ramsey's website reading the "I did it" section about how people got out of debt, how much, how much they made, and how long it took them to do it. When I come across a new blog, I often decide whether or not to subscribe to it based on the author's 'about me' section.
This is why I try to create a balance on this blog between 'objective opinion' (quite the oxymoron-- I mean opinions and explanations of issues outside myself) and personal issues. There are a lot of things on this blog (and more to come) that most people wouldn't share with their best friend, but I chose to share them because I want to help and inspire people to be more and do more with their finances and lives.
With that in mind, I want to offer a little bit of inspiration today by encouraging you to take a serious look at what you have and what you really do with it.
I have to smile, laugh, or shake my head (depending on my mood) when I hear people talk about what they've been able to accomplish with only $3,200/month take-home. Now, I understand that $40k is a decent middle-class income. Still, my husband and I count any month we bring home $1,600 as a good month. That's half of the above-mentioned figure!
Do not get me wrong; I am happy for anyone who is making progress to get out of debt and save for their future, et cetera. What I want to know is, "where is she spending all of that money so that she thinks she is barely able to live on double my income?"
Do you know where our money is spent? Of course you do: on bills, groceries, gas, and some debt. I've posted that information for all to see. Even with some of the glaringly obvious omissions from our budget (such as health and car insurance--we have them, just not in our current monthly budget), $1,600 would cover them all. Whatever we make above our minuscule budget is gravy we use to advance our financial goals.
What would you do if you had to live on $1,600 a month? What would get cut? Before you go crying that it is impossible to live on so little where you live, let me tell you that I live in a big city-- not NYC, but not Podunk, USA either.
What would I do with $3,200? I would pay off my car yesterday, have a close-to-funded Roth IRA for 2008, have two maxed-out Roths for 2009, dollar-cost-averaged, add $7-10k to our savings, and start saving for a nice, 7-day Caribbean cruise to be taken some time next winter (because, after that much saving and investing, we deserve to take a vacation!).
So ask yourself, what do you do with the money you have? Really, the above scenario sounds like the testimonial of a rich person, but it's actually the testimonial of a lower-middle-class person who tells her money where to go rather than wondering where it went.
This is why I try to create a balance on this blog between 'objective opinion' (quite the oxymoron-- I mean opinions and explanations of issues outside myself) and personal issues. There are a lot of things on this blog (and more to come) that most people wouldn't share with their best friend, but I chose to share them because I want to help and inspire people to be more and do more with their finances and lives.
With that in mind, I want to offer a little bit of inspiration today by encouraging you to take a serious look at what you have and what you really do with it.
I have to smile, laugh, or shake my head (depending on my mood) when I hear people talk about what they've been able to accomplish with only $3,200/month take-home. Now, I understand that $40k is a decent middle-class income. Still, my husband and I count any month we bring home $1,600 as a good month. That's half of the above-mentioned figure!
Do not get me wrong; I am happy for anyone who is making progress to get out of debt and save for their future, et cetera. What I want to know is, "where is she spending all of that money so that she thinks she is barely able to live on double my income?"
Do you know where our money is spent? Of course you do: on bills, groceries, gas, and some debt. I've posted that information for all to see. Even with some of the glaringly obvious omissions from our budget (such as health and car insurance--we have them, just not in our current monthly budget), $1,600 would cover them all. Whatever we make above our minuscule budget is gravy we use to advance our financial goals.
What would you do if you had to live on $1,600 a month? What would get cut? Before you go crying that it is impossible to live on so little where you live, let me tell you that I live in a big city-- not NYC, but not Podunk, USA either.
What would I do with $3,200? I would pay off my car yesterday, have a close-to-funded Roth IRA for 2008, have two maxed-out Roths for 2009, dollar-cost-averaged, add $7-10k to our savings, and start saving for a nice, 7-day Caribbean cruise to be taken some time next winter (because, after that much saving and investing, we deserve to take a vacation!).
So ask yourself, what do you do with the money you have? Really, the above scenario sounds like the testimonial of a rich person, but it's actually the testimonial of a lower-middle-class person who tells her money where to go rather than wondering where it went.
Friday, March 20, 2009
Dave Ramsey wouldn't approve...
I do admit that I am a pretty big fan of Dave Ramsey. I like his no-nonsense, common sense approach to personal finance and his Biblical/charitable perspective is no turn-off either. Still, I did break a cardinal rule a few months ago-- I bought a car using credit instead of cash. Here is why I believe Dave to be wrong in this particular case.
Dave would say I should have sold my car, bought a clunker, and saved for a newer car and paid in cash.
Here's the scenario-- I already drove a clunker. It looked decent, but it had who knows how many miles on it (the odometer broke 5 years ago at 144k+), everything leaked, and was getting *horrid* gas mileage. Our gas budget at the time was $600/month. Yikes! I was in school at the time and worked very little (the program I was in specifically forbade working); Hubby worked two jobs and our out-go was still 100% of our income. We had zero room to 'save up' for anything, even though I budgeted the blood out of every penny we got. Ask anyone who knows me-- if there was room to be saving, I would have been saving.
We had about enough money in the bank to pay for exactly the same car I already had or to make a pretty darn good down payment while leaving a $1,000 emergency fund. We shopped around for a while, found this car and got a payment of $103/month. The car gets decent gas mileage (24ish) and we were able to drop our gas budget in *half.*
So, we added $100 to our monthly bills, but saved $300 per month in gas. This means we could make 3x payments and be out of debt very soon. Plus, the sale of my old car brought an injection of cash roughly equivalent to 1/5 of the original balance.
I am very debt-averse and I grew up in a family that does not believe in car payments. No one is foolish enough to buy something that loses half it's value as soon as the deed is done, or so I thought. However, with some research, I was able to find a vehicle old enough to be price-stable and new enough to last a good long time, priced where I could sell it in a year for about the price I paid if I wanted to. We specifically got something family-friendly so that I could drive it for ten years if I so choose.
We are dumping this debt as soon as possible. We don't even own a credit card (although if we had longer to pay on the car I would consider a 0% for that purpose only...). Although I agree with Dave 99.9% of the time, I really believe that we made the best decision for us at the time. I will drive this thing into the ground and never have a car payment again.
Dave would say I should have sold my car, bought a clunker, and saved for a newer car and paid in cash.
Here's the scenario-- I already drove a clunker. It looked decent, but it had who knows how many miles on it (the odometer broke 5 years ago at 144k+), everything leaked, and was getting *horrid* gas mileage. Our gas budget at the time was $600/month. Yikes! I was in school at the time and worked very little (the program I was in specifically forbade working); Hubby worked two jobs and our out-go was still 100% of our income. We had zero room to 'save up' for anything, even though I budgeted the blood out of every penny we got. Ask anyone who knows me-- if there was room to be saving, I would have been saving.
We had about enough money in the bank to pay for exactly the same car I already had or to make a pretty darn good down payment while leaving a $1,000 emergency fund. We shopped around for a while, found this car and got a payment of $103/month. The car gets decent gas mileage (24ish) and we were able to drop our gas budget in *half.*
So, we added $100 to our monthly bills, but saved $300 per month in gas. This means we could make 3x payments and be out of debt very soon. Plus, the sale of my old car brought an injection of cash roughly equivalent to 1/5 of the original balance.
I am very debt-averse and I grew up in a family that does not believe in car payments. No one is foolish enough to buy something that loses half it's value as soon as the deed is done, or so I thought. However, with some research, I was able to find a vehicle old enough to be price-stable and new enough to last a good long time, priced where I could sell it in a year for about the price I paid if I wanted to. We specifically got something family-friendly so that I could drive it for ten years if I so choose.
We are dumping this debt as soon as possible. We don't even own a credit card (although if we had longer to pay on the car I would consider a 0% for that purpose only...). Although I agree with Dave 99.9% of the time, I really believe that we made the best decision for us at the time. I will drive this thing into the ground and never have a car payment again.
Subscribe to:
Posts (Atom)