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
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...
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
College Memories: Dumpster Diving
2008-02-28 01:15:00 Dumpster diving? It sounds much worse than it is. Some of my best friends in college were close to being classified as 'Freegans'. They liked living under the radar and outside of the influence of capitalism. Lets admit it, most people are wasteful. Why shouldn't there be a subculture that thrives on the waste of others?On the way home from a late night at the library my roommate asked me to stop at Zingermann's. But they're closed at 2am, aren't they? Yeah, exactly the point. We parked the car and went around to the back. We grabbed two large, tied bags of bread from the dumpster and carried them over our shoulders - the bakery equivalent to Santa Claus. Feeling in the spirit, we crept into the co-op homes of few friends and left several loafs for them to find in the morning. We stopped at a park near our apartment to share some bread with the homeless folks that stayed there. By the time we got home we still had too much bread for two people. We stuffed the free... More About: College , Memories , Diving
Kudos to Teenage Investors!
2008-02-24 17:26:00 Foxie from Dreaming of Ferraris is not even 20 years old and she's already thinking about opening an Roth IRA. She recently finished reading Smart Women Finish Rich and which brought her attention to the long term tax advantages of these accounts. Does anyone else wish they would have been thinking that way at that age?She's not alone, but I'm always surprised by economically wise teenagers. While I was wasting my small earnings on chicken fingers at Denny's there are were kids thinking about tax advantaged retirement accounts and aggressive investment strategies. Wow. I didn't even save up enough to get me through a whole year at college. I wish I would have friends like these.Take William, for example. William is my former college roommate's younger brother. He was a sophomore in high school when we were entering college. They came from a very well-off family so she never needed a loan, but he took one out in her name. It came with a one year grace period. He inves... More About: Investing , Kudos , Investors , Teenage
Debt Reduction vs. Retirement Investing
2008-02-23 18:50:00 I've wobbled back and forth in the ongoing dilemma of debt reduction vs. retirement investing. My drive to eliminate debt is strong and I've reach a point where I feel confident that I'm on track to do both.My highest interest debts have been eliminated. Last June my average APR was somewhere around 25%. Now all of my standard APRs are below 15% -- the average is below 10% with a portion of my balances at 0% APR until July and another portion fixed at 5.99% until its paid.I've eliminated one third of my personal debt and I'm definitely on track to eliminate the rest if not by December 2008, then definitely by January 2009. That one month set back won't cost me much in terms of dollars, but not investing in a 2007 Roth IRA would be a forever lost opportunity.That being said, I have decided to re-direct a small portion of my debt reduction and emergency funds to an IRA with Sharebuilder . With a referral I was able to get a $25 sign up bonus plus 7 free trades (email me for m... More About: Retirement , Investing , Debt , Reduction
I Can't Stay Away!
2008-02-21 01:53:00 I've been out of the loop trying to reconcile some personal issues, but I can't stay away! Things are going just fine and I plan on getting back into the blogging groove as soon as possible. I have carnivals and festivals to catch up on, sidebars to update, emails to read, and news about a possible career change! Stay tuned :)
'Get More' with Discover Open Road
2008-02-08 13:19:00 Last month I switched my Discover Card to an Open Road Card. They offer 5% back on gas and auto related expenses (less than 1% on everything else).My monthly gas expense typically runs between $100-$150. I put $100 on Discover @ 5% back and up to $50 on Chase Freedom @ 1%. That way I earn slightly more than if I were charging it all to Chase @ 3% (for a high spending category) plus I get 3% back on my next highest spending category (which varies). This works out fine for me. I track my spending anyways and its no problem to switch between just two cards.I originally thought that I'd lose 'Get More' cash bonuses when I switched to the Open Road card, but I haven't. This month they are offering an addtional 5% on up to $200 spent on Dining out, Florists, Candy Shops, Book Stores, and Pet Stores. I signed up. I need to buy some pet food anyways so why not get 5% back? Does it tempt me to dine out? Well maybe, but I tend to go out with my boyfriend a couple times a month a... More About: Rewards
Update on 2008 Financial Goal
2008-02-06 12:34:00 When Moolanomy reviewed his progress towards meeting his 2008 financial goal he realized that he might fail. His goal was to reduce utility costs by 10% or $35 per month. With a new baby and relatives in house to help out, costs are actually going up.Faced with this new information he sees three options:Do nothing and accept the failureTry harder to achieve the goalRevise my goal to reflect new assumptions and conditionIf you fail to foresee changing conditions when you set you're goal you have to be willing to adapt and continue to make progress towards a revised goal. Thats exactly what he has in mind. He's going to take some time to revise and reflect while still working towards locking down energy loss in places like insulation.In this post he also asks me how my 2008 resolution is coming along. As I have recently noted, I'm on track to meet my goals, but I'll be a little more specific here.My original goal was to eliminate almost $17k personal debt by putting at least ... More About: Financial , Links , Goal , Update
Investing in a Roth IRA
2008-02-04 15:14:00 The debt reduction vs. retirement savings question has been rolling around in my head for quite some time now. I've gone back and forth on the issue, but now I'm finally ready to get started. Beyond the obvious arguments for funding a Roth IRA here is a snapshot of my reasoning:No minimum investmentMrs. Micah's decision to become an investor was my first push. Sharebuilder IRAs don't have a minimum investment amount (as opposed to the Vanguard funds I had in mind with $3k minimum investment). That means I can put something into my 2007 IRA without doing to much damage to my debt reduction plan. Goals don't have to be set in stone. With any big plan you have to be prepared to adapt when presented with new information. I will eliminate my debt, there is no question about that. The time is running out, however, to invest in a 2007 IRA. Once I have saved up enough to qualify for a Vanguard Fund, I'll probably be considering a transfer. Until then, I can deal with the a... More About: Investing
February 4th Edition of Credit Report Stories
2008-02-04 13:37:00 Welcome to the February 4, 2008 edition of credit report stories!RacerX presents 720 FICO and Beyond posted at Life, Liberty and the Pursuit of Money, saying, "With Rates dropping it could be a great time to refinance or consolidate debt. But to get the best rate you have to have at least a 720 Score!"Taylor presents A Truly Free Credit Report posted at Super Blogging.Raymond presents Tips and Advice On How To Raise and Improve Your FICO Credit Score posted at Money Blue Book.Submit your blog article to the next edition ofcredit report storiesusing our carnival submission form.Past posts and future hosts can be found on ourblog carnival index page. More About: Stories , Credit report , Edition
First Carnival of Cash Back & Rewards
2008-02-04 03:00:00 Welcome to the 1st Edition of the Carnival of Cash Back & Rewards The Carnival of Cash Back & Rewards was started to gather opinions on rewards programs and bonuses all in one place. First and foremost I advocate responsible spending. Once you have that under control why not take advantage of free and easy money? Read these bloggers opinions on whether or not its worth your time. This week we've got everything from writing contests and government handouts to MyPoint rewards and credit card reviews.Cashback Credit Card Reviews Jim presents Citi CashReturns: We Got A $500+ Rewards Check posted at Blueprint for Financial Prosperity. (That's $500+ in one month due to wedding expenses! Way to take advantage of the 5% promotional period, Jim!)Steward presents Did I Make the Right Credit Card Choice? posted at My Family's Money, (Chase Freedom seems to be the big winner for those with spending habits under $2k per year. Steward estimates that he'll save $422 for one year ...
Getting Reacquainted with Craigslist or Reduce Clutter, Make Money (Part 3
2008-02-03 23:01:00 Around the beginning of the year some friends of mine left the country. They offered to let me have a bunch of stuff that they couldn't sell - a futon, a couple tvs, shelves, a snake, some plants, etc. I took some things that I really didn't need in hopes of selling it for extra cash. This stuff has been taking up space in my apartment for wayyyy too long. Its time to get reacquainted with Craigslist!I spent some time cleaning up and taking pictures of said items then writing brief descriptions. At this point I'm pretty much willing to give the stuff away to get it out of my place. I put very low prices on each item. The futon has just sold for $40! Way to start off the month of February. I'll be re-listing the books and DVDs that didn't sell last round. I'm also going to check out cash4books.net upon suggestion of a commenter. No more procrastinating!See also:Reduce Clutter, Make Money Reduce Clutter, Make Money (Part 2)
Spend Time Not Money
2008-02-03 19:39:00 I spent some time with an old friend this weekend. We grew up together -- as in best friends from age 6 on. Honestly, there is nobody that knows me better, but our lives are quite different now. She had two children - a girl and a boy - before the age of 20. She never had a chance to really think about a career much less pursue one. There were some hard times, but they are doing well now. They were some of the only people that I bought presents for this year. I bought the boy a children's accoustic guitar and the girl a dancing game. Usually my friend has a hard time pulling them away from tv and video games, but I spent some time getting them hooked on my presents.Chris is only six, but he can now officially tune a guitar and read tab! He played and played until his fingers were sore. We got through Mary Had a Little Lamb, Row Row Row Your Boat, and Twinkle Twinkle Little Star. It really is amazing to see a kid start to understand something new! Plus its kind of cool to... More About: Money , Time
January Review
2008-02-01 14:55:00 January ChallengeGoal: $400 Additional IncomeActual: $402.94I met my goal to make an additional $400 this month, but just barely. I procrastinated, putting off work until the end of the month. A few things come up and I end up behind. From now on I'm going to try to stay on track to meet my goals all through the month. That way I actually a chance to exceed my expectations.I relied pretty heavily on cash bonuses and rewards this month with less than 11 hours of in-session tutoring. Here's the complete list:Money Makin'$268.69 Tutoring$50.00 Cash Back from Chase$8.00 National City Points$25.00 Prosper Referral$11.25 From Prosper Loans$20.00 Cash Back from Discover$20.00 GiftJanuary Cash BackChase: 2.2%Discover: 6.3%Average Cash Back Rate: 3.3%I averaged 3.3% cash back this month using Chase Freedom and Discover Get More. That's my highest so far on record. Discover was particularly high because I found a great deal on a Christmas present for Dad on Shop Discover. They of... More About: Review , January
First Credit Card Payoff Scheduled
2008-01-28 04:39:00 My debt snowball has been long in the making and will soon be ready to knock out my first card. I now have a tentative payoff date.Current status with balances and interest rates:CC1: $1616 @ 19.99% (Started at $7000 in August!)PL1: $3925 @ 14.94% (Prosper Loan used to be my lowest rate!)CC2: $4147 @ 11%CC3: $2352 @ 0% until July 2008, 13.74% AfterCC4: $1705 @ 5.99%Credit card 1 was my highest interest AND highest balance. I decided my best financial decision was to pay it off first. By choosing high interest first (as opposed to smallest balance) I decided to pass on the small victory associated with paying off credit cards right away. I am proud of my decision to pass on instant gratification. The slow process of eliminating the highest interest card is much more satisfying anyways.I've worked out my finances for the next six weeks. I will have CC1 paid off on March 7, 2008 or possibly sooner depending on my tax return. After that things will start rolling very quickly. ... More About: Card , Credit Card
Can I make $100 in 6 days?
2008-01-26 16:02:00 Yes, I think I can.My January Challenge is nearing the end. I'm standing at 73% as of morning of the 26th. I need just over $100 to meet my goal. Can I do it? Yes, I think I can. I have 7 hours scheduled to tutor from now until the end of January. They pay us $5.50 while we are waiting for a student during our scheduled hours, full pay rate while in-session. Even if nobody logs on during my scheduled hours thats $38.50 guaranteed. To make the other $60 I'll have to put in about 4-5 hours of in-session tutoring. During peak hours its easy to log on, float, and pick up a few sessions. Five extra hours in 6 days? I can do that.Its funny because yesterday I was feeling defeated. Putting in extra time at work this week - which happened to be physical labor - in addition to coming home and tutoring has worn me out. Mentally and physically drained, exhausted. I sat down on my bed after work last night and fell right asleep. Didn't even have a chance to change my clothes ... More About: Days , Make
On Track to Meet my Goals (Check the stats!)
2008-01-24 16:33:00 Please direct your attention to the 2008 Challenge bar chart mid way down the right side of the page. I've paid almost 1/3 of my revolving debt since August! What a great feeling! I'm really on track to eliminate credit card debt in 2008.Back in October I went to the snowball calculator and entered in numbers from my budget. At the rate I was going (paying almost 50% of my net salary to debt including personal debt, student loans, and hospital bills) it would have taken me until July 2010 to pay off my credit card debt! I'm not kidding, I have the printout with notes right here in front of me. Thats when it hit me. I can't live like this for three more years. I had to make some changes and start getting serious about paying debt. I plugged in a numbers to represent a few different scenarios. First I used $300 to represent a) approximately the additional income I could bring home with a $5000 raise or b) a reasonable amount to make from my second job each month. That addition... More About: Goals , Check , Meet , Stats , Track
ING Rates Drop
2008-01-23 14:55:00 ING has reduced its rates again today. Not a huge surprise after the FED lowered the target for the federal funds rate by 0.75 yesterday.The current rates:ING Orange Saving s Account: 3.65% APYING Electric Orange Checking Account: 2.47% APY(Bummer.) More About: Rates , Drop
Prosper Debt Consolidation Loan - Tips for Potential Borrowers
2008-01-21 13:41:00 This is a guest post submitted to Prosper Blog. Thinking about using a debt consolidation loan to get rid of high interest debt? Don't just jump into it, do it the right way. Here are some tips for selecting the right amount and price.Examine Your BudgetIf you haven't already created a budget, now is the time. List every monthly expense you have. Here is the example Prosper provides:Monthly expenses: $ (Fill in Total)Housing: $Insurance: $Car expenses: $Utilities: $Phone, cable, internet: $Food, entertainment: $Clothing, household expenses $Credit cards and other loans: $Other expenses: $If you leave something blank here, be sure to explain. For example, no rent because you live with your parents. Cool, make sure to mention that. You might want to include 2 lists or total monthly expense figures: 1) current monthly expenses and 2) total monthly expenses with your prosper loan. This can be especially useful if this loan will decrease your monthly expense load.Be conservativ... More About: Debt Consolidation , Tips , Loan , Debt
Monday Morning Carnival Review
2008-01-21 12:36:00 Good morning. I had busy weekend and I'm just getting back into the swing of things. I'm going to start with linking to some of this weeks blog carnivals. I'll be back with links to my favorite posts once I've gotten a chance to read through.Brip blap hosted the second Carnival of Peer to Peer Lending. Thanks for including my post, Hey Prosper Lenders! Question from a Borrower?. Some more articles that caught my eye here: Brett presents Lending Club Statistics: Rejecting Most Loan ApplicationsThe Dough Roller presents How I Overcame My Fear of Lending Money on Prosper.comThe Baglady hosted the 1-2-3's of debt reduction at the Carnival of Debt Reduction Love the concept. Thanks for including my post Risking the Minimal Emergency Fund. Some more great posts for debt reducers:Tips To Kickstart Your Debt Reduction posted at The Happy RockKiller Credit Card Fees and How to Avoid Them posted at Cash Money LifeGreen Panda Treehouse hosted this week's Carnival of Personal Finan... More About: Review , Morning , Monday , Monday Morning
Announcing the Carnival of Cash Back & Rewards
2008-01-19 14:03:00 I don't know about you, but I've made a lot of money through cash back rewards and sign up bonuses this year. I'd love to have a place to share success stories, tips, and strategies. So here it is -- another blog carnival - this one is dedicated to free money!The first ever Carnival of Cash Back will be hosted right here at Me vs Debt on February 4th! This will be the ultimate resource for free money in the form of cash back, rewards programs, sign up bonuses, and the like. This is not a carnival about credit cards per se, but a carnival about working the system to your advantage. If you can make money why not? And if you are totally against rewards, why? Write a post about it. Reviews of rewards programs, unique cash back strategies, and links to bonuses are all welcome! Go here to submit an article by February 3rd and email me if you are interested in hosting.Here are some posts of mine that illustrate the spirit:November Cashback Rewards : 2.8%Using Credit Cards Respons...
When it Comes to Snowflaking...
2008-01-18 17:42:00 When it Comes to Snowflaking, I Do Not Mess AroundSo far this month, I've sent 16 snowflakes ranging from $1.70 to $86.88 to my highest interest debt. Last month, 19 snowflakes -- cutting the total balance in half!Every dollar that comes my way is a potential snowflake. Each time I decide not to spend, a snowflake falls right into the online bill pay queue. When my boyfriend picks up the tab for dinner, my share is snowflaked.I continue to call my highest interest card and request lower rates. You won't lower my rate? Fine. You've officially become my snowflake target. Enjoy collecting 19.99% on my soon-to-be balance of $0.
When it Comes to Snowflaking...
2008-01-18 17:42:00 When it Comes to Snowflaking, I Do Not Mess AroundSo far this month, I've sent 16 snowflakes ranging from $1.70 to $86.88 to my highest interest debt. Last month, 19 snowflakes -- cutting the total balance in half!Every dollar that comes my way is a potential snowflake. Each time I decide not to spend, a snowflake falls right into the online bill pay queue. When my boyfriend picks up the tab for dinner, my share is snowflaked.I continue to call my highest interest card and request lower rates. You won't lower my rate? Fine. You've officially become my snowflake target. Enjoy collecting 19.99% on my soon-to-be balance of $0.
Get Free Tax Advice and Watch Out for IRS Phishing Scam!
2008-01-18 15:10:00 Thanks Michelle from H&R Block for pointing out that H&R Block is providing free tax advice through January 31! From the press release:H&R Block?s 110,000 tax professionals will hit the streets today in communities around the country for National Tax Advice Day to raise awareness of this year?s tax benefits. Additionally, H&R Block is offering taxpayers help with their most difficult tax questions for free through Jan. 31 by accessing H&R Block?s Ask A Tax Advisor online feature available at www.digits.hrblock.com. The typical H&R Block client is served by a tax professional with more than 8 years of experience and more than 250 hours of training.What a great deal! You should especially take advantage of this if you are DIY with your taxes. Some free input could save you big money. Go here to read the official press release and here to take advantage of free advice.She also points out that the H&R Block website has information about an IRS Phishing sc... More About: Watch , Taxes , Free
Get Free Tax Advice and Watch Out for IRS Phishing Scam!
2008-01-18 15:10:00 Thanks Michelle from H&R Block for pointing out that H&R Block is providing free tax advice through January 31! From the press release:H&R Block?s 110,000 tax professionals will hit the streets today in communities around the country for National Tax Advice Day to raise awareness of this year?s tax benefits. Additionally, H&R Block is offering taxpayers help with their most difficult tax questions for free through Jan. 31 by accessing H&R Block?s Ask A Tax Advisor online feature available at www.digits.hrblock.com. The typical H&R Block client is served by a tax professional with more than 8 years of experience and more than 250 hours of training.What a great deal! You should especially take advantage of this if you are DIY with your taxes. Some free input could save you big money. Go here to read the official press release and here to take advantage of free advice.She also points out that the H&R Block website has information about an IRS Phishing sc... More About: Watch , Taxes , Free
Taxes: DIY or Tax Professional
2008-01-17 13:52:00 This post was inspired by Monroe on a Budget.Do you do your own taxes? In most cases it really is beneficial to seek advice from a professional. Thats easy for me to say - my mom is a certified tax adviser for H&R Block. She offers to do returns for my friends for cheap or free - even just out of high school with minimum wage jobs she knew how to get them much more money back than they could have gotten alone. All legally. Just because you have Turbo Tax and you think its easy to use does not mean you know how to use it.If you aren't convinced that a tax professional could get you a better return, maybe its worth a test run. Try it yourself. Then go to a tax professional. Make an informed decision based on the results.I'll be back with some examples of loopholes that you may not be familiar with.Read more:Free Tax Advice From H&R Block @ Me vs DebtDIY or Tax Professional @ Saving Advice ForumsHow to Get Five Times Your Tax Returns Back @ Free Money FinanceSome resou... More About: Taxes , Fess
Taxes: DIY or Tax Professional
2008-01-17 13:52:00 This post was inspired by Monroe on a Budget.Do you do your own taxes? In most cases it really is beneficial to seek advice from a professional. Thats easy for me to say - my mom is a certified tax adviser for H&R Block. She offers to do returns for my friends for cheap or free - even just out of high school with minimum wage jobs she knew how to get them much more money back than they could have gotten alone. All legally. Just because you have Turbo Tax and you think its easy to use does not mean you know how to use it.If you aren't convinced that a tax professional could get you a better return, maybe its worth a test run. Try it yourself. Then go to a tax professional. Make an informed decision based on the results.I'll be back with some examples of loopholes that you may not be familiar with.Read more:Free Tax Advice From H&R Block @ Me vs DebtDIY or Tax Professional @ Saving Advice ForumsHow to Get Five Times Your Tax Returns Back @ Free Money FinanceSome resou... More About: Taxes , Fess
Blog Festivities for the Week of 1/13/2008
More articles from this author:2008-01-16 11:38:00 Plonkee Money hosted the Carnival of Personal Finance - Thanks for including my post How to Increase Your Interest Rates. I'm still reading through these, wow there are a lot of entries here. Some more posts that I enjoyed thus far:How I Taught my Preschooler the Value of a Dollar @ Being Frugal (Don't know why, but this struck me as super cute. Way to be financially responsible, Sam!)8 Things You Need to Know About a Roth IRA for 2008 @ Chance Favors (I'm all about starting my first Roth IRA this year, you should consider it if you haven't already.)Frugal for Life hosted the Festival of Frugality. Thanks for including my post Finding Balance on a Tight Budget - Part 2. I'm still reading through these but some posts that caught my eye include:Making Socks Last @ Early Retirement Extreme (Ok, I don't usually go so far as repairing socks, but I'm with you on identical socks all the way.)Making Sure Free is Really Free @ Being Frugal (My boyfriend got sucked in by that jing... More About: Links , Blog , Week 1, 2, 3, 4, 5, 6, 7 |
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