Ceejay74's Personal Finance Blog

Made a small payment to my reserve line today; $29 went toward principal debt. So for the August challenge, I've paid $1150 so far, with $1035 to go.

I'll probably see what I can shuffle around to pay off some of NT's overdraft balance, but it'll be an international wire transfer to his UK checking account, so a little complicated. I signed up for Western Union and MoneyGram, but it looks like MoneyGram is the cheaper option for now--$25 to transfer $800. I'm hoping I can work something out with PayPal accounts where maybe we could get charged even less, but I'm not sure that's going to happen.

OK, I've updated my info with scary, scary new numbers, and made a new payment plan that incorporates the minimum principal we all typically pay in a month, plus $555 to pay down principal in the proposed amount of our spring '08 England trip (figured into our debt as $5,000 estimated future debt).

I'm calling it The Ad Hoc Plan, because hopefully I'll be able to switch to a more aggressive plan once I find out what NT's going to bring home once he finishes the temp-to-perm transition (which feels like it's taking forever!)

The new goal is to pay off $2,185 of principal per month through March 2008. We've paid $1121 so far in August, so we have $1062 to go by 8/31/07.

Well, I'm still getting my new total debt (with NT's now included) figured out, and waiting to hear what NT's salary will be so I can work out a payment schedule. Meanwhile, I'm going to keep to my 1099 + 555 Plan like nothing happened, because it will help me stay sane to have something to keep track of.

My mortgage payment came through and $283 went toward principal. So $683 down and $971 to go for the period of 7/26 to 8/26.

I'm going to update my sidebar without NT's debt for the time being. When I do update it with all I know, I'm going to keep that first successful goal for 7/26 at the top, just to remind myself that I didn't fail, just had to shift my priorities.

That was my mantra in my late 20s, when for a period of time I was diligently chipping away at mine and AS's $50K or so of debt (much of it student loan, some credit card). Well, I turned 33 this year, and when I totaled my debt in March, it had more than quintupled! Granted most was mortgage debt, but a good deal still student loan and much more credit card than before.

Another adult entered my household this year as well, with his own adult-sized debt. I just "took on" (psychologically) NT's debt as well last night, and that adds another $141K to my $277K, bringing me (psychologically) to $418K in debt. Whoa, close to half a million. That's nutty. At this point, you can't even freak out because there's no human reaction befitting that. And that's not counting the 4 years of college he hopes to get, I imagine to the tune of not much less than $40K total. And. And. And...

On the upside, whereas mine & AS's assets are only about $180K worth of home (that's an estimate; we bought it for $207K but I know home sales have been sluggish in my building) and $26K of retirement funds (probably less from the recent crash, but soon to build to that again), NT gives me (psychologically) with his debt a home worth $260K and a retirement fund of unknown value. That gives the three of us assets worth $466K not counting NT's retirement.

Coming to a net worth of $48,000 between us. (If you don't count the upcoming college costs, which could very well take us down to net worth of $8K.)

As a pick-me-up it ain't much, but I'll take it. Now to roll up my sleeves (or should I say shine my shoes?), because I have some fancy financial footwork ahead of me.

NT's rental income isn't quite covering his mortgage and credit card payments, so I have to come up with an extra $400 per month. He also has a new job which we should (hopefully) find out the compensation details of soon, but unfortunately I was already eyeing that extra income and thinking about where I could put it, so it's a bit of a downer that I have to spread it a little more thinly than I thought.

First step today: move back a credit card payment that I usually pay early, and use that money to do an emergency transfer into his checking account to cover some bills hitting tomorrow. Hoping everything happens in the right order; if not we'll have some overdraft fees to contend with.

Sigh. The funny thing is, I knew some reckoning was coming for at least a couple months, ever since NT told me he hadn't checked his accounts for awhile and wasn't sure the payments were being covered. I think the reason this all seems overwhelming is a tiny straw: AS charged $13 for drinks last night on our check card, and NT bought a messenger bag on one of his credit cards for $70. Now, neither of them rebels very often, and I've been reining them in pretty strictly since March, so these aren't huge deals in the grand scheme of things. But finding out about them at the same time that I'm trying to deal with all this just makes my stomach feel hollow.

Ah well. no one I've encountered on this site is in anywhere near this kind of debt, but at least I know you guys will be thinking of me (hopefully sympathetically) and pulling for me. It makes me feel less isolated.

Thanks for listening!
CJ

Just realized I had enough money to cover another $200 payment that was scheduled for next month. So $400 paid, $1,254 to go for August!

I may not get very far in this challenge before I have to reformulate it--but if so, it will be reformulated to be even more aggressive about debt repayment, so that'll be a good thing! Meanwhile, until I find out what NT's exact salary will be, it's business as usual with the 1099 + 555 Plan.

Well, I think maybe what I'll do, since someone mentioned starting a savings account for my emergency, entertainment and travel funds, is open a "goal savings account," which my bank offers. It's linked to my checking account, it's free as long as I make a $25 monthly automatic deposit, there's no minimum balance, and it even earns a teeny bit of interest. I'll keep my own records as to which parts of it are allocated to various funds.

This is, of course, assuming that NT gets offered enough money to meet some of my debt-repayment goals. Those come first, but I think it would help us control our spending if there were separate, finite funds for various things.

Our spending has been way controlled since I started budgeting us back in late March, but thinking long-term, if I'm going to keep my household on board, I have to be willing to spend a little on travel and entertainment! Don't want any mutinies down the road. :-)

Great news this morning: NT got confirmation that his current temp assignment is giving him a permanent job! He doesn't know the details of pay, but they know the minimum that he would take and have said it will be more than that for sure. He hasn't found out many other particulars either. One thing he stipulated is that he'd want a somewhat flexible schedule so he could go back to volunteering (tutoring disadvantaged youth), and they said that would be fine. He's going to continue temping as their receptionist until they get the new position all straightened out, so we know we'll have steady income from now on.

Now that I know we'll easily be able to stick with my accelerated payoff challenge, I'm thinking more about how some people on this site set money aside, and wanted to know how they do it. Those of you who build up funds for home improvement, travel, entertainment and emergencies, do you keep them as cash in envelopes, or separate offshoots of your checking accounts, or do you keep the money in your regular account but just pretend you can't use it?

I'm really hoping this job pays enough for my dream goal: paying for NT's school upfront. Well, by upfront I mean taking out student loans, but then paying off an equivalent extra amount on my consumer debt, so that we continue to pay down principal at the same rate and end up with less "bad" debt. Fingers crossed, though that's a bit more money than I expect him to be offered! :-)

CJ

Well, the next month of my challenge doesn't technically start until July 26, but I realized I have enough money to make a small payment, so I put $200 toward principal debt. My line of credit debt is now less than $1,000!

So, $200 paid, $1,454 to go by Aug. 26.

In other good news: Our best friends' ceremony was this weekend. I had all sorts of chunks of money set aside for all our various obligations for it. Well, it looks like we got in at least $20 under budget, and that's after buying a few extra things. If the grooms remember to pay us back for those, we'll be more like $60 under budget!

Also, NT is almost certainly guaranteed a job at the place where he's temping. It should be quite a bit more money and a lot more fun for him. He's waiting to hear from another place as well, that has its own pluses. Either way, we should be a lot better off soon!

CJ

Debt starting 7/26:
Personal loan: 29,525
Reserve line: 1,101
Credit card: 18,197
Trip to England: 5,000
Mortgage: 183,996
Loan from Dad: 7,000
Student loan 1: 16,129
Student loan 2: 3,388
Student loan 3: 12,848
-------
7/26 total debt: $277,184

Goal for 8/26: $275,530

6/26 total debt: $278,917
Goal for 7/26: $277,263

Actual debt balance on 7/17: $277,184

Ahead of goal by $79!

Yee haw! My final payment for the month came through; I was expecting $398 to go to principal but wasn't sure since this is my brand new loan. Instead, they whacked $475 off the principal balance! This means I met and exceeded my first month's goal for my 1099 + 555 Challenge! Let's hope it bodes well for the rest of the challenge as well.

Results for the first month coming as soon as I tally them...

I'm sorry; I try not to be controversial in places where it might be problematic.

But I just came back from a "bachelor party" for two male friends having a commitment ceremony next week. These are two friends who are moral, upright, religious and kind on all counts, and compeletely in love with one another (for the past 5 years). Yet family members who have supported them being together are having a problem with them having a commitment ceremony.

These familial haters keep bringing up the Bible or God, thinking the two lines of the Bible condeming homosexuality are somehow more powerful than the dozens of lines condemning shellfish and poly-cotton blends. I just don't get it.

I get having an opinion of something; I happen to think that eating, killing or using for entertainment an animal is just as wrong as eating, killing, or using for entertainment a human. But I realize I may not have all the answers where that is concerned, so I still love people who do such things to animals.

Basically, unless you kill or harm a human being deliberately, I will at least respect your basic nature. I can't believe these friends have to face so much petty judgment from these family members, who have taken a huge step interpreting God's will (where they've freely assumed other parts of the Bible are just dated per the era they were written in). I can't believe they'd take such a risk with the love of their sons/brothers.

Their loss, though. I will love these men their whole lives, feeling fortunate that I met them and know them.

Sorry again, but I just had to vent. This is so wrong.

CJ

Today a student loan payment showed up (I paid it over a week ago, but I don't count anything till I see it registered in the online balance), so $50 toward my goal. $1093 paid, $561 to go!

I have a loan payment going out Monday that I estimate will pay $398 toward interest, which would leave only $163. Well, I have enough money in the bank to do that and still cover expenses till NT's payday on Friday, so I went ahead and made an extra payment of $165 to my reserve-line debt. $1258 down, $396 to go. Now I know I'll hit my goal when my loan payment clears next week. Hooray!

I just retotaled my monthly budget because one of my regular payments went down. (I'll still pay extra on it; that's how it got lowered. But I do like to see my base budget.)

It hit a nice round number (with the help of rounding up every bill amount, of course): $4300. There are three adults in my household. $1040 is for groceries and other household expenses, $1892 for mortgage and association dues (including all utilities and cable TV), $141 goes to phone and internet for all three of us, and the rest ($1227) goes to debt (credit card, personal loan and student loans).

I know I could cut down a few other things, but if I just get rid of my straight-up debt, just think! $1227 a month left over to save, pay down my mortgage, up my 401(k), etc. That gives me even more impetus to push ahead, even if it takes years.

CJ

Made my regular payment to my reserve line today, plus a little bit extra, so that's $55 more toward principal.

My goal is to pay $1654 by 7/26, so that puts me at $611 left to pay, $1043 paid already. I have 2 more regular debt-bills this month, which should pay $398 and $51 in principal, leaving just $162 to reach my goal. Well, I was trying to save up $200 for an extra payment to my reserve line (small, high-interest debt driving me crazy), but even if I just put together $170 I should be in the black (goalwise). That's encouraging, since this is my first concrete goal and I really want to make it to show I can! :-)

CJ

My regular credit card payment hit: $306 toward principal.

$988 paid to principal so far this month, $666 to go by 7/26! Woo hoo, I'm past the halfway point!

Paid an extra $200 toward debt today; $682 paid to principal so far this month, $972 to go by 7/26!

Well, I was looking at my budget projection for the next month and a half, and I had about a $480 surplus. Now, that accounts for some fun stuff that's planned, such as tickets to a music show, anniversary celebration, niece visit and friends' wedding expenses, but it doesn't count at all for spending money. Sometimes my little household goes around with little or no spending money, and we all know credit cards are only for budgeted items and emergencies, so we just don't often make impulse purchases. But it's nice to be able to do that, so I thought, I'll withdraw half that surplus and distribute it equally, $80 for each of us, and just tell the others it has to last them a couple weeks, but who knows? If there are no unexpected expenses, they might get some more.

Then AS called and said she'd had to go to the eye doctor, dentist and pharmacy today. I went back in and voila, $200 more gone to medical expenses! LOL, glad I didn't take out the full surplus or anything! I talked to AS, and she has some more expenses coming up, but we'll be able to plan for them. Plus, she'll be able to cover some of this eventually with flex spending.

Soo, I decided to still distribute the money I took out of the bank, but to let AS & NT know to hang onto some of it--don't know when we'll have some more spending money.

All in all, the budget is tight, but balanced. And I can always put some of my own share of the spending money back in if I need to; but I've got other places I can cut back if needed. Here it is, spending money already withdrawn (and much abridged):
Balance 7/5: $448.92

Bills & Expenses 7/1-7/15: $481.84

$32.92 SHORT

Income 7/15-7/31: 3271.21
Bills & Expenses 7/15-7/31: $2754.67

$483.62 LEFT OVER

Paychecks & Income 8/1-8/15: $2405.32
Bills & Expenses 8/1-8/15: $2839

$49.94 LEFT OVER

Not too shabby, and this plans for some extra pay-ins to principal debt!

Well, I haven't made too much progress in my 1099 + 555 Plan, but a little. Most of my bills are coming soon, so I'll see the needle move more then.

On Friday I paid $200 to my smallest, highest-interest debt, the line of credit on my checking account. Not a scheduled payment, just extra to principal. And today my regular mortgage payment hit, so $282 to principal.

$482 down, $1172 to go by July 26!

CJ

Sigh...having a slow point at work and wish I had something to report about my 1099 + 555 Plan, but I won't be paying any bills or having any extra money to pay anything down until Friday. I don't know what NT's paycheck will look like, but I'm hoping it's over $400. Then I'll put $200 toward debt, $200 toward upcoming summer expenses (weddings, visits, anniversaries), and any little bit left over will be fun money to distribute evenly between the three of us.

I thought I had my summer expenses pretty much figured out, but I just realized I have a 10-year anniversary coming up in late July and a niece coming to visit in August (I never see her, so I want to make it fun). So I have to see what I can do to come up with extra money, because I don't want to derail my payoff plan before it even starts! I have some time to figure it out, luckily.

Now that I've joined this site, I enjoy thinking of all the things I do that are free, or save money.
- I've been really good about my spending money; I gave myself $60 about three weeks ago, and I still have $16 left! That means I only spent about $2 a day on average.
- Last night, NT & I went to the mall and got a new power supply ($70 value) for our computer free, because we were still under warranty.
- I'm getting a coffeemaker, a pound of coffee and a box of filters for only $16, and AS is going to put our old one to use at her office. I just have to call the coffee company after I get it to cancel our "membership." I've done it before so I know it'll be no big deal.
- We're going to sell back one of AS's old textbooks for $19.
- I harvested some more peas, and some tiny carrots and onions, from my community garden.
- I'm gathering up store receipts that have anything slightly medical on them; I have a ton of flex spending left that I need to use, and I can get reimbursed for things like Tums and aspirin. So far I've got about $23 worth of receipts.

Maybe I'll try to sell some used books to the bookstore this weekend or something. Also, I already have money allocated for a rental car in July, but I bet I could find a better deal before then. I'd love to have money set aside for all summer festivities before they happen, so I can enjoy them guilt-free.

CJ

Debt starting 6/26:
Personal loan: 30,000
Reserve line: 1,721
Credit card: 18,503
Trip to England: 5,000
Mortgage: 184,278
Loan from Dad: 7,000
Student loan 1: 16,129
Student loan 2: 3,438
Student loan 3: 12,848
-------
6/26 total debt: $278,917

Goal for 7/26: $277,263

OK, so I figured out how I'm going to "save" for my trip to England while putting the money toward debt instead of actually saving: I'm just going to make sure I pay off an equal amount to what I think I might pay (worst-case scenario) for the trip.

I'm saying the trip will cost $5,000, even though hopefully it will cost less. It's in nine months, so I have to pay off extra debt to the tune of $555 per month between now and then.

Right now, I pay off an average of $1099 of debt per month. Thus, for the next nine months, I have to average $1099 + $555 in monthly debt reduction, or $14,886. (I've already added the $5,000 to my total debt, even though it's hypothetical, and will treat it as real debt until the trip, so I'm under no illusions as to what I have to do.)

Next entry: My starting point of debt.

We were talking today about how we really want to go to England next year for NT's sister's wedding (we'll also work a lot of family and friend visits into as short a time as possible). We have no idea how much plane tickets (for 3 people) will be in April, nor what our lodging expenses will be (whether we can swing staying with others the whole time, or if we'll need to get a hotel part of the time), nor whether we'll need a rental car for part or all of it (probably, and gas is ungodly expensive in UK compared to US).

So I decided to presume worst-case scenario and begin to prepare for that. I went on orbitz.com and started planning a 7-day vacation for 3 people with airfare, hotel, rental car and gas, and $500 (250 pounds) spending money for the entire week. It came to about $5000. (Yikes!) So, I'm thinking that's the outside number and we'll be able to get in WAY under that.

At first, I was going to try and save the actual money for the trip, but then I realized it would be a waste to sock that money away while we're still paying interest on debt. So I'm going to add $5000 to our overall debt calculation, pretend it's already there as a 0% interest debt. Then I'm going to pay off debt as aggressively as possible in other places instead of saving that money. When it comes time to pay for the trip, I'll use a low-interest credit card for it. I think this will save us paying some interest in the long run, and seeing that $5000 debt on my list will drive me nuts, causing me to really pinch pennies and pay debt off faster. Plus, the actual trip will probably be much cheaper, and our tax refund should pay for a good chunk of it, so I'll get to wipe off some "debt" after the trip instead of adding some on!

I did go ahead and deposit the loan check that I got approved for. (Thank you for the advice!) As soon as it clears (probably tomorrow) I'll pay off some higher-interest debts, reconfigure my monthly bills & budget, and see if there's now room to put some extra money toward principal on some of my debts.

I realized today that NT will probably get Wed. July 4 off without pay, since he's just a temp. I don't think his temp agency gives paid holidays and I know his temporary assignment won't. But I hadn't factored any of his income into our budget yet, so it's not too big of a disappointment.
CJ

One thing I really like about other people's blogs is how they document all the small money triumphs. So I thought I should list some good things that have happened to us this week:
-$6 refund check for recalled product came in the mail, along with coupon for free bottle of mouthwash.
-Coupon for free 2-liter of soda came in the mail.
-AS got a small raise; should mean about $40 per month if we're lucky!
-I asked both NT and AS if they needed any more spending money (I'd given them $80 apiece 10 days ago) and they both had almost half left and agreed to try and stretch that for another week! They're really getting behind this saving-money thing.
-Picked a small bag of lettuce and some peas; our first harvest from our community plot! Made a salad with today's lunch and some lettuce left over for sandwiches tomorrow. Free veggies taste good!
-Detected some unauthorized charges on one of our check cards; got them taken off and card canceled with no trouble!

Maybe once I understand more about the $20 challenge idea, I can put stuff like this toward that. Still reading and trying to figure it out: Do you keep a separate bank account? Stuff it in your mattress? :-)

CJ

I got approved for a personal loan that will roll three other debts with high interest into one loan with an OK (8.99%) interest rate. No fee for taking the loan, the payments will be $60-$80 less than the three together are now, and it has fixed payments and fixed interest and pays off in 60 months, with no penalty for early prepayment. Moving debt around didn't work when I wasn't serious about paying it off, but now that I am, this should help me pay more off, faster.

If it still seems like a good idea on Monday, I'll probably do it.

CJ

Thought I'd share my main money-management tactic: I keep an unsent e-mail in my draft folder of my Yahoo account, and check my checking account online daily. I list my current balance, list all the income and debits I expect for the month (in half-month groups), and see whether I'm ahead or behind.

NT's income is irregular as he's a temp, so his money is surprise bonus money, and we use some for spending, some for paying down debt. AS and I have regular paychecks twice a month.

It's a nice system because I go in daily and change the balance, then delete items that have come through, or add items for upcoming income or debits that I've just found out about. I have a general budget document that I keep as well, but this one gives me a more specific idea of where we are, because it factors in the unpredictable stuff.

Here's a sample of what my "number crunch" looks like right now:

Balance 6/22: $1589.86
Pending check card auth: 108.21
(SIMONDELIVERS.COM INC $99.23
AMAZON.COM $8.98)
Available balance = $1481.65

June 16-30 upcoming debits:
$60 spending money
$20 for farmers market
$19 for Nat'l Geographic
$450 for Wii plus accessories
28th: Comcast $45.95
American Express $372
16th-30th: Groceries $161.03
keep $350 for next month
= $1477.98

$3.67 LEFT OVER

July 1-15 upcoming income:
$6 Agent blue refund
6/29 CJ paycheck $1362.32
7/1 parking rental $75
7/5 AS paycheck $938.32
Add back in $350 from last month
= $2731.64 + 3.67 = $2735.31

July 1-15 upcoming debits:
1st: Citimortgage $1356.97
2nd: Firstmark $71
4th: NT Bus Pass $76
5th: Association dues $520.97
6th: Reserve Line $89
9th: Netflix $10.70
14th: Barber (for all 3 of us) $60
1st-15th: Groceries $440
Gift for friends' wedding: $100
= $2724.64

$10.67 LEFT OVER

July 16-31 upcoming income:
7/16 CJ paycheck $1362.32
7/19 AS paycheck $938.32
= 2300.78 + 10.67 = 2311.45

July 16-31 upcoming debits:
15th: T-Mobile $95
Bremer $95
16th: Capital One $564
21st: Rental car for friends wedding: $190
24th: Barber $60
28th: Comcast $46
American Express $366
misc household $100
16th-31st: Groceries $440
keep $350 for next month
= $2306

$5.45 LEFT OVER

Looks like we're cutting it kind of close, I know, but NT gets some kind of money every Friday that's not factored in until we get it. Today's was just enough to break us even for the next month, but next Friday's will be a lot bigger because he worked full-time this week. But we don't know how much, so I haven't put it on.

CJ

I got my family on the straight and narrow sometime in mid-March. Didn't have time to estimate my debt then, just needed us to cut some spending and come up with a workable paycheck-to-paycheck budget, fast. But in mid-May I finally sat down and counted up our* debt. Not pretty, but best to know.

Debt as of 5/24/07:
Credit card:
RL: 2,766 (pays off $25/mo)
CO: 19,218 (pays off $420/mo)
AE: 18,819 (pays off $340/mo)
----------
Total credit card debt: 40,803

SM: 16,129 (deferred; AS in school)
FM: 3,489 (pays off $55/mo)
DL: 12,500 (deferred; AS in school)
----------
Total student loan debt: 32,118

Home loans:
CM: 184,559 (pays off $280/mo)
BM: 10,288 (no $ to principal)
Dad: 7,000 (not paying regularly)
----------
Total home debt: 201,847

Total debt: $274,768

*Disclaimer: This is just me and AS. Third person in our household, NT, just joined eight months ago from another country. I haven't yet asked him for his exact debt, but I do know it's part mortgage (don't know how much - $60K?) and part credit card (fairly substantial - $10K-$20K I'd guess, and he's got it on a 0% card). He's renting his foreign property and using the proceeds + tax refund to pay the mortgage and his minimum credit card bills. Sooo, eventually I'll need to wrap my head around his stuff, but at least he's building home equity, keeping on top of bills, paying off some debt and not paying any interest. It doesn't affect our lives directly, so I'm tuning it out for the time being. More on this at some point!

Greetings! I need to check out some other blogs on this site to figure out the best way to do this, but I thought I should post something just to get started. It's funny, I'm now the third of all three people in my household to have started a blog for the first time this month! Leave it to me to have the most boring and dorky (although not to me, and apparently I've found some like-minded people on this site). I look forward to sharing the minutiae of my financial life with anyone who will listen (or read).
CJ