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
Carnival Love
2008-05-13 13:25:00 No, not carnie love... carnival love!Stop by and check out:Debtor's Prison at the Carnival of Debt Reduction courtesy of Debt Free RevolutionThe Carnival of Personal Finance @ Money Under Thirty More About: Love
First Step in Debt Reduction: Admit the Problem
2008-05-12 13:37:00 The first step in debt reduction is really the hardest: admit the problem. Maybe you think this sounds trivial, but I swear it was a turning point for me. I spent years trying to hide stress from family and friends. I wanted them to think I was doing ok. Most of all I didn't want to talk about it. I didn't even want to admit it to myself. I refused to add up the grand total because I knew I was over my head. That seems light years away now.Starting this blog was a great way for me to come clean about my situation. Being somewhat anonymous empowered me to be completely honest. Soon enough, I was comfortable enough to come clean to everyone in my life. There's pretty much nothing for me to hide now.Another important part of this step for me was summing it all up. In the beginning, this gave me a cold hard look at what I was up against. There is no way to form a realistic plan if you don't understand your goal. Once I started tracking my progress I was able to create a... More About: Blogging , Debt , Problem , Step , Reduction
Some Random Freebies
2008-05-11 05:22:00 Random freebies I found useful:Free CFL lightbulb from Accent Energy. To redeem, fill in information and enter promo code: EARNRWG.Free sample of Playtex Gentle GlideFree Purina Cat or Dog foodA penny saved is like two pennies earned! I won't sign up for things I don't need, but I'll never pass up a free or heavily discounted product that I'll have to buy anyways.My boyfriend gave me a hard time about taking a couple minutes to print out some coupons before we went up to CVS. Then he saw me save more than 60% at the cash register. He gets it now :) More About: Freebies , Random
Debt Repayment Update - How Shoud I Proceed?
2008-05-10 20:31:00 The arrival of my economic stimulus check has me looking ahead at this month's progress. I use a set of spreadsheets to document my cash flow and repayment status each month.Based on these estimates, my debts as of the end of May 2008 will be as follows:Chase CardBalance: $1240APR: Fixed 5.99%Utilization: 65%National City CardBalance: $3396APR: 3.99% until November 2008Utilization: 41%Lending Club Balance: $2532APR: Fixed 11.66%Utilization: N/A (Total Debt s Outstanding: $7168. Only 38% of what I started with!)So I'm right on track - if not ahead of schedule - to meet my December 2008 payoff goal. That rocks! Here's the problem, I'm not sure as to the best way to proceed.There is a major downside to Lending Club loans from a borrowers perspective. They don't have an online payment system. They automatically deduct the agreed upon amount from your account each month. You can pre-pay the entire balance, but only when you are ready to pay in full. At that point you email them... More About: Credit Cards , Update
PF Blogger Map!
2008-05-09 16:37:00 PT Money posted a pretty sweet map of the world of personal finance. Here is what PT suggests we do with the map: Satisfy your curiosity. See who blogs from your City, State, Country Connect with pf bloggers who live in your area. Plan a blogger meet-up. Develop group writing projects based on geographical region (North vs. South, Canadian perspective, etc.) Use the map on your pf blog or network site (get the code on the map page) Whatever else you can dream up. Get creative.The actual graphic doesn't fit my page but here is the link:Check it out :) More About: Blogger , Blogging
Score Watch Alert (Welcome to the 700s!)
2008-05-09 12:11:00 Its about time that I give you an update on my FICO score. In my first Score Watch post, I annotated some ups and downs that come with the initial stages of debt reduction.It starts off really slow. When you're far in debt, the best financial decisions are not always the best credit score decisions. Sometimes its in your best interest to find a good balance transfer offer to help lighten the load of finance charges. That is rough on the FICO score. Make that two or three balance transfers and you can expect some turbulence. Don't be discouraged! Use that money you save to pay down the balances and things start to accelerate.At the beginning of this graph I had over $19,000 in revolving debt, almost 90% credit utilization. Now I have less than $5,000 revolving on my credit cards (and about $3000 in a secured PTP Loan) which brings my credit utilization down to under 20%.Last July I had something like 10 credit cards carrying a balance every month with APRs up to 30%. Now I c... More About: Alert
Return to the Carnivals
2008-05-09 01:09:00 I've finally starting to return to the carnivals. I'll be spending a little time this morning at the following blog festivities:Antishay presents The Carnival of SnowflakingThe Festival of Frugality @ Frugal for LifeCarnival of Family Life hosted by Riley at All Rileyed Up! Lazy Man hosts The Carnival of Personal Finance More About: Carnivals , Return
CVS Freebies and Deals
2008-05-07 13:37:00 No way! Some of the free stuff was actually in stock at my local CVS :)I took a stroll through the toothpaste isle after picking up an Rx yesterday. Imagine my surprise to see the Aquafresh toothpaste AND the Colgate toothbrushes in stock. Pumped about my free items and armed with a $5 off of $25 coupon from the Pharmacy I started browsing for more deals. Here's what I came out with:3 Aquafresh Toothpaste @ 2.992 Colgate Toothbrushes @ 3.991 Tums @ 4.691 Nivea Body Lotion @ 5.99I ended up spending $23.99 and I got back $21.64 in extra care bucks. So its kind of like I got all of that stuff for $2.35. Plus I got another $5 off of $25 coupon so I can basically go back and get about $26 worth of stuff for free because of the $24 I spent last night. If I continue to find deals like this in stock I could be potentially enter a never-ending loop of free oral hygiene... Score!If you are interested in free stuff be sure to check out Money Saving Mom's weekly CVS scenarios. If I wo... More About: Freebies
My Stimulus Check is Enroute
2008-05-06 12:33:00 The IRS Stimulus Payment Status website finally gave me an ETA for my stimulus check. It should be in my account by Friday morning. Where's your stimulus check? More About: Check
Balance Transfer to National City
2008-05-05 12:06:00 I'm always looking for a good balance transfer deal - even now that all of my rates are fairly low. I called up National City to see if they had any deals going on. They offered my 3.99% APR for six months with no fee. I'm taking $3500 from Citi Card over to National City. Here's why:Citi CardBalance : $3500Credit Limit: $4400APR for 6 months: 6.99%Estimated interest for 6 months: $112Initial Credit Utilization: 80%National CityBalance: $3500Credit Limit: $8250APR for 6 months: 3.99%Estimated interest for 6 months: $63Initial Credit Utilization: 42% As you can see, both my finance charge and credit utilization are almost cut in half with this transfer. I'd love to see some improvement in my credit score, reducing the individual card utilization should help. Plus, that will be a little extra cash going towards the principal balance each month - snowflakes on autopilot from just one phone call. I should be able to have the full balance paid off within the 6 month time frame ... More About: Transfer
April 2008 - Income, Networth, Cashback Review
2008-04-29 13:45:00 This was a great month for me. I had some very positive reviews at work and I was offered a raise. Even though it won't be listed in the April Challenge, I'll be making more money each month which always helps. Unfortunately, my expenses seem to be going up at the same time. I splurged on dinner with my boyfriend this month and drinks with a friend. I also spent more at the grocery store and the gas pump. Watch for some budget updates in May. Its time to take lifestyle inflation countermeasures. As for now, check out the numbers for April...April ChallengeGoal: $400 Additional Income Actual: $402.85So close! I went ahead and picked up an extra tutoring session to meet my goal. Why not, right? Thanks to Katherine aka Gaming Girl for making my first donation! Every little bit helps :) I've also become a signup bonus junkie. If you'll give me free money, chances are I'll try your service. See Comerica bonus. See also, Revolution Money Exchange. Anyone out there have... More About: Review , Cashback , 2008
Quick Poll: Will Early Rebates Stimulate the Economy?
2008-04-26 14:41:00 Friday Bush announced that the rebate checks will be going out four days early in an effort to stimulate the economy. What do you think?I'm guessing it won't make a bit of difference in anything except for possibly sentiment. There are really only two options - spend or save - with save also implying debt repayment. I'm guessing that anyone that would spend has already spent some to all of what they are expecting. Then there are the savers and debt re-payers. That may have an effect on future economies, but we won't see any results from them now.I'm in between the two types - I'll use most of the return for debt reduction. But I decided to go ahead and spend on bike repair and guitar stuff that I've been wanting for a long time. I don't know if that counts because I probably would have done it anyways. I just used the stimulus check to further justify these outside-of-the-budget purchases. Oh and the money I'm spending - it has already been spent.But alas, there a... More About: Economy , Poll , Quick , Early , Rebates
Life After Debt: Emergency Fund
2008-04-25 16:00:00 As a follow up to last month's post Life After Debt : Roth IRA, I've decided to discuss my next major goal. My goal will be to build a $13,000 emergency fund in 2009.Minimum Monthly ExpensesHow do you determine monthly expenses? I decided to look at the bare minimums living expenses in my budget: rent, utilities, phone, minimal gas and food, minimum payments on student loans.Assuming that I have paid off credit card debt by the end of the year, my monthly living expenses could be reduced to less than $1400/month in an emergency ($1200 once I've paid off my hospital bills). That $13,000 should be enough to allow me to live comfortably off of my second job for more than a year if an emergency situation arises such as job loss, grad school, career change, or I decide to travel around with my nomadic friends for a while. It will also be enough to help cover one time expenses such as car repairs, medical expenses, or emergency travel. You never know. I like to have options. I also ... More About: Fund , Saving , Emergency
Joined Paperback Swap
2008-04-25 12:10:00 The concept of Paperback Swap is just as simple as it sounds. You list books you're ready to part with, then you make a wish list of your own. You automatically get 2 credits after listing your first 10 books, than an additional credit every time you mail one out. I think the concept is great. Six books that I listed were requested right away. You can print a mailing label and postage right from your computer. These are all books I tried to sell online with no luck. This is a great way to connect these books to people. The only cost is postage on books sold. Assuming I'll get a few back, it works out to be a good deal. Please join and list some good PF books! Thank you :) More About: Books
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
More articles from this author: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 1, 2, 3, 4, 5, 6, 7 |
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