Me vs Debt Me vs Debt Recent college grad's mission to get out of debt and master personal finance. I want to share tips, successes, and motivation. I also want some public accountability. Mostly I want to use my money to make interest, not pay it. Articles
Giving Myself a Raise
2008-04-24 11:55:00 I've been trying to listen to the Richest Man in Babylon during my commute. I've heard its a great book, but to be honest it's difficult to listen to. The one thing that should ring loud and clear from this book is this:Thou shalt payest thyself first!Please excuse my poor Babylonian grammar. The whole book is full of it - which makes it really hard to take seriously - for me anyways. But that's not my point. This book shed some new light on an old familiar saying. The first section of the book really brought a whole new meaning to 'pay yourself first'.It seems so obvious when you think about it. Find a way to live on only 90% of your earnings. With a little bit of discipline, its a simple habit to form. Just like you make due on your salary minus taxes. Its just something you have to live with. So take your share too! After a while, your money can start working to make you more money and that's the road to financial independence.Although paying down debt gives me... More About: Giving , Saving
Extended Warranty Saves the Day!
2008-04-23 23:40:00 That extended warranty paid for it self a couple times over. Dell had a technician out here to replace parts within 24 hours of the phone call. I never mentioned the water and they never asked. My computer is good to go and best of all ... my spreadsheets are right where I left them :) More About: Warranty , Spreadsheets , Extended , Saves the Day
Bad Kitty! Don't Put Off Backing Up Your Data
2008-04-22 12:37:00 Yesterday morning the thought of backing up my wonderful spreadsheet collection crossed my mind. I was working on a report for work and I had my flash drive in, ready to go. Nah, this computer is in great shape. I'll do it later.Famous last words.When I got home from my bike ride last night I poured myself a big glass of water. I set it down while I booted up the computer, then I went to grab some food. By the time I got back the glass of water was keeled over on the keyboard and the screen was dark. Bad kitty! I yelled as I threw my cat out the door.Its not her fault. She can't resist a tall cool glass of water any more than I can. This one was my fault all the way. First of all, I know better than to leave water anywhere within her reach - especially not by my computer. Second of all, I put way too much time into those spreadsheets not to keep a back up. I got paid today and I'm second guessing where the money should go because I don't have it in front of me.I coul... More About: Data , Kitty , Spreadsheets , Backing
Free tutoring on Mother's Day
2008-04-20 20:15:00 Sorry to keep spamming you with tutor.com stuff, but there is an update...First of all, I want to extend a friends and family discount.Just in time for finals, here are 50 free minutes of online tutoring.To redeem, log on to tutor.com and use the promo code AISR50F.Update: If you sign up by May 11, you can take advantage of free tutoring all Mother's day. Happy learning :) and thank you for supporting my side job! More About: Free , Tutoring
50% Party + Bike Update
2008-04-20 19:34:00 Ok, its not a party, but it is a fact. Remember last year's credit card debt? I've officially paid more than I owe! Even though I've still got over $9000 to go, it seems like nothing compared to where I started. I'm on track to meet my end-of-year pay off goal. Woo!Although I don't think I'll be buying a new bike, I am going to put some cash into my old bike. As gift to me, I 'm dropping some money on bike repairs. I got myself a book, a multi-tool, a new chain, and I'm in the market for a new saddle all for under $100 . I spent some time this weekend cleaning the cassette and sprockets and replacing the chain. Although its a relatively heavy bike, its riding just fine. I may not be riding to work every day, but I'll go a couple times a week for sure. I consider these purchases to be an investment. Care and maintenance should make a bike last for many, many years. By the time I save up for my next new bike I'll be ready to make it last forever :) More About: Party , Bike , Update
Tagged Me for a Meme
2008-04-17 13:50:00 Mike @ From Mike tagged me for a meme.What is a meme? I'm new at this. Well this one is a six word memoir. Here's mine:Mistakes have made me smarter, stronger.Mistakes? Oh yes, I've made them. Now I can see them coming from miles away. When it comes to money I know what questions to ask, what pitfalls to avoid, and how to get the most out of every dollar I spend. I know exactly how little I can live on without sacrificing quality of life. I've always got my eyes open for new ways to make extra cash with minimal effort. I look forward to investing and saving once my debt is paid off. Honestly, I doubt I would have this wisdom, persistence, and self control if I hadn't hit rock bottom. My financial wounds will take years to heal, but I'll always be better for fixing them myself.The rules of the meme are: 1. Write your own six word memoir2. Post it on your blog and include a visual illustration if you want3. Link to the person who tagged you in your post4. Tag at le... More About: Meme , Links , Tagged
Wanted: A New Bike
2008-04-15 13:00:00 I want a new bike. I've been struggling with this for the last week or two. I'd like a nice light bike that I could ride to work everyday. My current bike is a 'comfort hybrid' which means its somewhere in between mountain bike and road bike with a big seat :) Honestly, its not really all that comfortable for long distances and it sure doesn't take hills very well. Now that spring has given us a preview of the warm months to come, I'm excited to start riding to work instead of driving. My commute is about 11 hilly miles each way. Given that May-September will be bike friendly weather, its a great chance to save money on gas, get some exercise, and reduce my carbon footprint. That economic stimulus check could buy me a new bike to make it more enjoyable...Buy wait! I've been looking forward to NOT stimulating the economy. I've made great progress already, but come on. I'm still in debt. That six hundred dollars would sure make a nice dent in the 2008 challenge gra... More About: Bike , Wanted
4 Payment Maximum with Citibank
2008-04-08 13:31:00 The maximum number of payments (4) have already posted or been scheduled for this billing period.Maximum number of payments? Are you kidding? If you like to send in multiple payments per month, beware of Citi bank online bill pay. Its just another subtle way to keep you from paying down those balances to quickly. Grrr.I've gotten into the habit of sending in payments right as funds become available. Snowflaking. It makes sense for two reasons: 1) minimize the average daily balances and thus the finance charge and 2) psychological boost of seeing multiple payments in any given statement. Going to have to re-evaluate that strategy for the next billing period. Save up the small payments to make a few big ones. Just thought I'd give you a little heads up if you have a CitiBank card somewhere in your snowball list! More About: Payment , Citibank
Rich Dad, Poor Dad and Debt Reduction
2008-04-07 13:26:00 I listened to Rich Dad, Poor Dad during my commute last week. I thought it was a great book - not necessarily because of the advice it gave, but the comparison of two extreme ways of thinking. There weren't a lot of specific tips and thats ok - I like to find my own way. It was more inspirational to hear how your mindset influences your finances.One of my favorite parts was how Poor Dad said, "I can't afford it."By saying that you can't do something you are giving up. You're brain stops working.While Rich Dad asked,"How can I afford it?"By asking the question, you've pretty much told your brain its possible and put it to work on finding a solution.If you put this into the context of debt reduction, you get my story. I didn't like the thought of paying off debt for the next three years so I asked myself how to do it in one year. I figured out that I needed to make more money. Should I ask for a raise or get a second job? How about both? I figured out how much more mone... More About: Books , Debt , Reduction
The Hard Work Pays Off
2008-04-04 13:55:00 I've been working hard this year. My company is small, so workloads come in waves. There are lulls when not much mechanical work needs to be done. Then sometimes I've got to balance several projects at the same time. Recently its been a balancing act. But the hard work pays off. My bi-annual review was positive and I was offered a raise. Not the 4% raise I was hoping for... a 7% raise... awesome! That was a huge surprise given the fact that I just got a raise back in November. This more than makes up for the tutoring income I sacrificed last month and I hope it justifies my time off of the blog. It will help greatly with the extra hospital bills that came my way last month and I think its safe to say that my job is secure for now. And that, of course, is priceless. More About: Work , Hard , Pays
Monthly Review - March 2008
2008-04-02 13:08:00 March was a busy month for me. Put in a lot of time at work followed by some much needed rest, relaxation, and catching up with good friends. My income wasn't quite where I wanted it to be, but my income tax return helped make it a great month. Here are the numbers...March ChallengeGoal: $400 Additional IncomeActual: $269.58I thought about counting my income tax here, but then I'd probably have to subtract it every other month of the year, right? I didn't meet my goal this month, but I have a feeling the extra work I put in over the last month will translate into a raise this month at my review. A 4% raise would translate into over a hundred dollars a month added to my budget for here on out. Plus even more into my 401k once I start getting matched funds in June. Not to mention, if this project brings in funding, it will be a nice bonus. In my opinion, its worth it.Here's the complete list:Money Makin' (Extra Income)$158.13 Tutoring$3.85 From Prosper Loans$28.60 Sprint... More About: Review , March , Monthly Review , March 2008 , 2008
Day 19...
2008-03-21 12:53:00 Today will be day 19. As in 19 days of work straight.I just spent the last fifty minutes writing a post about my first call from collections. It disappeared when I hit the publish button. I'll write it again tomorrow morning, but for now... I'm mentally drained.Gotta save some of this caffeine lift for a few semi-important meetings at work today. I'm making it a goal to write my first patent application this weekend, I'll be getting some guidance from our contracts office. I'm also going to have to fill out some paperwork to get the ball rolling on a very likely grant from NIH. This will all be worth it if that goes through... we get a percentage of the funding we bring into the company, bonus! Oh yeah, and I'm getting my stitches taken out, finally!All work and no blog makes Amanda sad.I'll be back this weekend between boyfriend time and family time. Until then, check out these carnivals. I haven't gotten a chance to read through all the posts yet. Give me your re...
Some giveaways around the blogosphere...
2008-03-19 16:03:00 Work sucks. Freebies rock. Win a Craftsman Cordless Drill! at Rather Be Shopping for sharing your home improvement story.Subscribe to Cash Money Life to find the secret phrase and get some PF reading materialTell Debt Kid what you'd do with $10k to win $100 in your Lending Club Account More About: Giveaways , Blogosphere
Life After Debt: Roth IRA
2008-03-17 14:27:00 I often think about how I will use the funds that are tied up in debt reduction once the debt is gone. Currently, I aim to put $1400/month towards debt reduction. If things go as planned, I will be debt free by January 2009. What is my first major goal?Near Term Goal: Open a 2008 Roth IRA with Vanguard I will save up at least $3000 to open a Roth IRA with Vanguard. I say at least $3000 because thats the minimum opening balance for many of Vanguards funds, but I could end up contributing more if I redirect all $1400/month to the cause from January-April 15th.I'm happy with my ShareBuilder Account so far, but if I want to invest anymore I'll have to pay $4 per trade and an annual fee of $25. Not too bad, but there are no fees with Vanguard. If I choose to invest in a balanced target retirement fund, I wouldn't have to worry about keeping my portfolio balanced. Plus I could take a little bit out of each paycheck to dollar cost average for the long term. Which takes me to an... More About: Life , Debt , Sharebuilder
More Balance Transferring
2008-03-16 12:03:00 I mentioned that Citi increased my credit limit... well I took advantage of that by transferring a large portion of my Capital One balance over there.My Capital One card had three different interest rates - 14.4%(standard), 2.99%(fixed), and 0% (for 3 months). Of course, every payment I made went to the lowest rate balance first. I decided to transfer about $2k to Citi with no fee at 6.9% APR for six months. Then I sent all of my income tax funds to Capital One leaving me with a balance of $168. I should be able to pay that off with money from my next check :) This move reduces my monthly finance charge by about $20 and leave me with just two credit cards! Down from ten... um yeah. Wow, that feels good.Prosper loan continues to be my highest APR at 14.4%, however I think I'd like to focus on reducing credit card balances before P2P loans in an effort to raise my credit score.I feel like I'm making progress, I see light at the end of the tunnel! More About: Balance
Link Love - Taxes Returned Edition
2008-03-14 12:56:00 I got the rest of my income tax return today :) I paid off my car insurance for the next six months and sent a big fat electronic check to Capital One. Debt reduction: 42%. Awesome! If you like things that are awesome, be sure to check out a couple must read posts from the past week or so:Steward at My Family's Money writes about why his family is committed to living debt free. Great post!In response to the Dave Ramsey series going on at the M-Network, From Mike describes his own Debt Snowball approach. This variation of the Ramsey approach makes sense to me. Once my debt snowball outgrew my emergency fund goal, I decided to put it on hold too.Jacob at Early Retirement Extreme sees value in a book that doesn't get much love from PF Bloggers. He says that Rich Dad Poor Dad is about changing you mindset and beginning to think the part. He makes a great analogy to healthy living with Fit Dad, Fat Dad. More About: Love , Taxes , Links , Link , Edition
Worker's Compensation
2008-03-13 12:49:00 I'm new to the full time work force so I never really thought about worker's compensation... until yesterday when I had to go to the emergency room. At work I'm building a model for a project we are trying to get funding for. The deadline is approaching quickly, I've definitely been rushing through it.Well yesterday I accidentally stabbed myself in the hand with a razor knife... ouch. Always cut away from yourself... I know! Somehow the common sense turned off for a second and next thing I know I'm bleeding everywhere.Getting cut at work is no huge surprise. It happens all the time. What surprised me was the depth that I could see into my hand when I went to wash it out. I knew I needed stitches. I put pressure on it, called HR, and went to the hospital.The whole time I was more worried about paying for the hospital visit than the pain in my hand. I'm still paying for my last hospital visit after all... To make matters worse, I just signed up for a High Deductible Hea... More About: Compensation , Worker
$149 Mystery Credit
2008-03-11 13:49:00 Not that I'm complaining... but I have a $149 mystery credit in my checking account. I checked my account quickly this morning to verify the balance and this popped up in the pending credit section. I have no idea what it could be.I'll update once I know what it is... until then... any guesses?The not-so-exciting conclusion to the mystery: its part of my state income tax return. Weird because the full amount in over $500 and they said it would be direct deposited on Friday. Oh well, I'll take it. Another snowflake... More About: Credit , Mystery
The Carnival of Debt Reduction is Up
2008-03-11 12:49:00 Ana @ Debt -FREE Revolution hosted the Carnival of Debt Reduction . She highlighted my dumbest purchase ever post. Some other posts that caught my eye:Prosper Rocks! @ Debt Reduction Formula - Ryan read about my experience at Prosper and was inspired to take some of his debts away from the credit card companies. His listing was funding in less than an hour! Rock on, Ryan!The Irony of Debt @ Paid Twice - I can relate to this post. I still have the buy now, pay later attitude... even with my debt. I have spreadsheets filled out a month in advance, ugh. The transition of mindset is a tough one.
4 Credit/Debt/Money Documentaries
2008-03-09 16:08:00 A few recent posts at From Mike and My Money Blog have sparked my interest in money/debt/credit related documentaries and videos. My original list included 7 videos. Thats too many for one post, so this will have to be continued. Here's four to get you started :)Maxed OutThe subject of both aforementioned posts was Maxed Out. Although I remember enjoying Maxed Out the first time I watched it, it seems a little dramatic now... and not all too informative. It definitely plays on emotional response. Thats one way to spread the word. Some of the other videos I've found are definitely more educational. Have you watched this? What do you think?The first two minutes of this clip are the highlight of the movie in my opinion :)Here's the full video:The Two Income Trap: Why Middle-Class Mothers and Fathers are Going BrokeThis is an interview with Professor Elizabeth Warren discussing her book (published in 2003). She has some interesting yet bleak statistics on the middle class lo... More About: Credit , Debt , Documentaries
Anyone Interested in a Sharebuilder Referral?
2008-03-08 17:11:00 I've been pretty happy with my Sharebuilder account. I'm looking to invest in a couple of specific companies as part of my 2007 IRA. I'm almost out of my 7 free investments so I thought I'd try to tap into the referrals. Here are the terms:Just enter the names and email addresses of friends, family and colleagues below. You?ll get 5 Free ShareBuilder Automatic Investments when someone you refer starts investing through ShareBuilder, and they?ll get $25 to invest!So there you have it, I get five free trades (a $20 value) and you get $25 plus 7 free trades if you open a new IRA. I have 5 referrals available. Is anyone interested? I'll need your email address to send the link... let me know if you have any questions. More About: Referral
Payday and I'm Pumped!
2008-03-07 14:47:00 Payday has taken on all new dimensions to me. Everyone loves getting paid. I love paying bills! Direct deposit, online bill pay, fill in the spreadsheets, calculate the networth, update the sides bars, woo!Take that, debt. More About: Payday
Refund and a Credit Limit Increase
2008-03-07 13:18:00 The last month of my previous contract with Sprint (back in October) I accidentally paid the bill twice. Who does that? Me. I sent a check at the beginning of the month and then paid by phone later in the month. So you think they'd just credit my new account or send me a refund check? Nope they just continued to send me bills for -$28.60 every month. I called to ask them to send a refund check and they refused. "Thats not our policy, you have to go to a Sprint store." Once I was driving and I saw a store that clearly said Sprint. I went in to ask for my refund, but they were not an official Sprint store so they weren't authorized to give it to me. I eventually wrote it off. After they sent me an extra $75 in my rebate check I figured we were even. Then last week, out of nowhere, I get an automated call telling me I'm finally getting the refund. It was in the mailbox yesterday and now its in the bank. I thought this money was a lost cause so its now going toward my mo... More About: Credit , Citi , Bank
My Dumbest Purchase Ever... Debt Reduction Scam
2008-03-06 13:02:00 Debt Kid is asking readers to share stories of their dumbest purchase ever. Go leave a comment or a trackback from your blog to win his dumbest purchase ever... a DS Lite.Honestly, its about time I got this off of my chest. It was so dumb that I pushed it out of my mind until I read Debt Kid's post. My dumbest purchase ever: I got sucked into a debt reduction scam during my sophomore year of college.At that time I has maybe $3000 in credit card debt. By then I had put at least four semesters of books, a pair of glasses, dentist bills, and groceries on credit. I only worked about 10-15 hours a week while going to school full time. Even at $12/hour, that was barely enough to pay my rent and bills. I paid more than the minimum every month, but I just couldn't get ahead. My rent alone was about $500/month so that I could live within walking distance to campus. My phone bill was something like $60/month. I didn't need a car, but once you added in utilities and groceries, I... More About: Debt , Scam , Purchase , Reduction
Blog Festivities!
2008-03-05 13:40:00 I'm finally catching up with some writing AND reading this week. Here are some links for you:No Credit Needed hosted the Carnival of Debt Reduction. He included my post about how to handle a balance transfer in your debt snowball. Some other posts that caught my eye:When I Woke Up and Smelled the Coffee @ Being FrugalThe Waiting is the Hardest Part @ Not the Jet SetBroke Grad Student hosted the Festival of Frugality. He selected my dumpster diving post as a Top Ramen. Woo! No one appreciates extreme frugality like the broke college student! Some articles I enjoyed reading, just to name a few that are new to me:The Making of Homemade Soap @ Bad Human! Don't Take Chemicals From Strangers!Is there anything more wasteful @ Uncommon SenseBuy a Shop Manual @ Save and Conquer More About: Links , Blog
Student Loans Out of Deferment
2008-03-04 12:59:00 Well both of my federal student loans are officially out of deferment. With about $31.8k in a consolidated Direct Loan @ 4.375% and about $13.4k in a Perkins Loan @ 5% the bulk of my monthly payment goes to cover more than $180 in interest. I get so focused on paying off my credit cards that I forget about the mountain of debt waiting for me once I'm 'out of debt'. Goodbye Debt, Hello.... Debt. At least the student loan interest is deductible. This is my first year paying taxes and I'm already sick of it. Plus hey, don't expect me to run out of debt reduction rants anytime soon!I've already started thinking about how I'm going to allocate debt reduction funds once the credit cards are paid off. Of the $1400 monthly snowball I plan to redirect at least $400 to my Roth IRA. Of the remaining $1000, I'd like to put $500 towards a rockin' emergency fund. I'm dying for some security and freedom, really. That leaves me with only $500 extra for my student loans. And based... More About: Student , Loans , Student Loans
Monthly Review - February 2008
2008-03-03 19:38:00 February ChallengeGoal: $400 Additional IncomeActual: $432.28I met my goal to make an additional $400 this month with very little work on my part. Thats lucky for me because I had very little time to focus on bringing it in this past month. Thanks to those that have used my referral link to sign up for online tutoring, prosper, and ING; every little bit helps! Also thank you to the folks that traded me a futon and tv for cash... you rock! (Little did they know I probably would have paid them to get that stuff out of my apartment!) Here's the complete list:Money Makin'$289.68 Tutor.com$90.00 Stuff on Craigslist$25.00 Prosper Referral$7.60 Prosper Loan Payments$20.00 ING ReferralsFebruary Net WorthNet Worth: ($56,636)Increased: 3.66%I redirected some of my debt reduction funds and cash into a Roth IRA this month. I should be back on track with debt repayment in March. My income tax return should be here within a week or two - so look for a steep drop in outstanding debt very s... More About: Review , Monthly Review , February 2008 , February , 2008
A Debt Snowball Dilemma: The Promotional Balance
2008-03-02 14:36:00 The Debt Snowball MethodIf your looking to get out of debt, you're bound to run into the phrase Debt Snowball again and again. And with good reason - its a great strategy! You'll typically see it outlined in one of two ways: lowest balance first or highest interest first. There are advantages to each. Ultimately, the best method for you is the one you will stick to. It takes focus and determination to climb out of the hole. Here's a quick overview of two common strategies:Lowest Balance FirstList all of your debt in order from the lowest balance to the highest.Designate an amount to put towards debt each month... as much as you can spare.Pay only the minimum on all debts except for one with the lowest balance.Put the rest of the into the lowest balance debt and don't stop there. Anytime you run into a few extra bucks above and beyond your amount from #2 go ahead and throw that at your lowest balance debt too. Those 'debt snowflakes' will make a huge impact on your tota... More About: Prosper , Dilemma , Promotional
National City Visa - Paid in Full
2008-03-01 20:34:00 My six month long debt snowflake target has been eliminated! I transferred $7000 to a National City Visa at 0% back in August. I've paid it off just in time - not a single dollar in finance charges! Now I'll be able to consider adding the National City's Everyday Rewards to my cash back strategy. More on that later.The next highest interest debt on my list is my Prosper loan at 14.94%. Thank you, lenders, for helping me out of a bind, but now its time to pay back and move on. More About: Paid , Full
This Week at the Carnivals...
More articles from this author:2008-02-28 18:57:00 Its been a busy week, but I'm getting back into the swing of things :)Be sure to check out this weeks blog festivities, great themes!Being Frugal hosted a groovy 70's edition of the Carnival of Debt ReductionBroke Grad Student hosted a college years edition of the Carnival of Personal Finance More About: Carnivals , Week 1, 2, 3, 4, 5, 6, 7 |
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