Holy crap. I did it. I paid off my entire debt before the end of March. Thank you Jesus! I'm just so grateful at this point in my life! I was able to really watch my spending and buckle down and get my debt paid off earlier than I had expected. Today is a day of celebration and freedom!! :)

Now I'm going to really hit my Emergency Fund HARD and find a charity to tithe to. I'm so blessed!

The Good and The Bad

The good:

Today I'm off work because I have to work Saturday--it is a nice break to get a day off during the week for sure, so I'm just going to take it easy today and get some things done around the house and take the girls out for a Mommy/Daughter day.

I called up Credit Card Company #1 to cancel my card prepped and ready to say NO to the offers to keep me around, well...needless to say, it didn't happen. Why you ask? Well, as you know, this credit card had a 0% interest introductory rate for 12 months and I've paid it off in advance (that's the only reason I got this card in the first place!). What I DIDN'T know is that I can have a 0% interest BALANCE TRANSFER for 12 months. What? Balance transfer on less than $300?? You might be thinking...Well, the thing is, I haven't been completely honest with you all. Where as I am about to be debt-free technically, legally, I won't be. I let boyfriend use my credit to get on his feet with some things and so now he owes me money for credit card debt and for a truck loan. He helped me get on my feet when I was unemployed for 6 months, so I was more than happy to help him get on his feet as well. What can I say? I don't regret it at all and he is amazing with making payments far exceeding the minimum balance and never late. (And yes, we have a signed, written agreement between the two of us).

In any event, since Credit Card Company #2 decided to raise my APR by 2 percentage points because of the recession, I figure this is a great way for boyfriend to save on the APR and stick it to CCC #2 and their ridiculous increase. This really is a great deal and while he's getting his credit card debt paid off, it's nice he won't have to pay any more interest on it!

The bad:

I took my cat Toddy into the vet today to get checked out...while the vet didn't feel any tumors or anything abnormal, she said he has some arthritis in his right knee and that he could have one of a number of things wrong. She took some blood from him ($121.00) and is going to get it tested so we will have results by tomorrow; here are the possibilities:

1. Thyroid disease--treatable and manageable
2. Diabetes--same as above
3. Cancer--treatable
4. Kidney disease--incurable/untreatable

She said as far as things go, we're going to hope for #1 because that's the best that could happen at this point. She said if his blood work comes back clean then we have a problem; he's been losing weight but eating like a pig and there is something going on. If it comes back negative we'll have to do ultrasounds or x-rays ($$$$$$) and then go from there.

So, please pray for my kitty that nothing serious is wrong and that it can be treated immediately.

I'm off to enjoy my day (and meet with my AF recruiter!!) Hope you enjoy yours!

UPDATE: Emergency fund vs. Credit card

I found this article online My Two Dollars with the reader asking advice on the same situation as mine; The only difference between our situations that she has 8 months left on her 0% interest and has enough in her EF to pay it all off, whereas I'm down to only 4 months, plus I don't have enough in my EF to cover my credit card debt.

The advice that she was given was to leave her EF alone and just pay on her credit card. I think his advice is solid; if I had 8 months left as well, I would do the same thing. I just have 4 months left to pay $3400. I think I will continue my payment schedule as laid out and then if worse comes to worse, I'll use my EF as a fall back.

I hope I don't have to use my EF at all, I don't want to, but I also don't want to have to pay $100s of dollars in interest to keep the cash on hand, you know?

The Good and The Bad: Money edition.

I'm starting a new segment called the Good and the Bad; I'm going to focus on what's going on in my life, obviously the good parts and the bad, this will help me keep focus and keep a positive attitude despite any bad that is going on, I hope you enjoy. Leave some feedback and let me know what you think.

The Good:

I put $317 towards #1 credit card. It's a 0% interest credit card until June so we have to get that paid in full by the end of May; there is no way in H E double hockey sticks I'm going to pay back interest on that puppy. My emergency fund is slowly growing every month, thank goodness. It feels good to see that balance get larger every month!

The Bad:

I need new contacts. Bad. I'm wearing my glasses today, ugh, and I may just have to use the emergency fund money to buy 6 months worth of contacts. I don't think I could continue wearing my glasses; I'm already starting to get a headache. Damage? Around $200. :( Upside? At least the money is there and I don't have to rely on my credit card! :)

My #2 credit card sent me a letter stating they're raising my interest by 2% (!) due to the credit crunch, not due to my credit or anything else I may have done (which is nothing). Ugh. I have the best rate that they offer and when I first opened it, it was 2% higher, so I've done really well in lowering it, but back up she goes. This just means I have to focus harder to pay it off--not like I'm already not doing that!

With boyfriend out of work until at least next month or until he finds something, I'm responsible for taking care of the credit card payments. :( He was making AWESOME money and we put a huge dent in our card debt and now it comes to an almost stand still. That just sucks. Once he starts school though, the VA will send him another check and that extra money sure will help, but not that much, especially if he isn't working that much.

Conclusion: Although things aren't going exactly my way, I can handle the extra little pressure. At least I have a job! :)

Yay!

I just made a payment of $317 to my 1st and lowest credit card balance, this means I only owe $120.62 on that card! I'm so excited! Even though it's not going to be paid off because boyfriend owes money on it, it will be so nice knowing I can focus on paying my other credit card off! :)

My 2nd card has the highest balance at this point, but I'm still working out my amount with boyfriend's amount. I will definitely be debt-free before the end of the year, I can feel it.

I got the book Debt-Proof Living by Mary Hunt from the library on Monday (she also has a website) and I'm almost done with it. I've been devouring it everyday and learning new information everyday. If you haven't read it, I HIGHLY recommend it. She has great insight on managing debt, as she was $100,000 in debt once. YIKES! If you've read her book or are familiar with her ideals, last night I discussed with boyfriend starting our Freedom Account. This is basically a separate checking account that is used only for larger, expected (and unexpected) instances that sometimes require large amounts of money.

One designates which categories are going to be covered by the Freedom Account. I chose Clothing, Car repairs/upkeep, and Vacation. Then one figures out the yearly amounts in which to cover those categories.

• Clothing

$600/year or $50/month

• Car repairs/upkeep

$1200/year or $100/month

• Vacation

$1200/year or $100/month

So basically boyfriend and I will be paying $225/month together or $112.50 individually into this account. The cool thing about this system is that there is money to cover those things, thereby eliminating the need for a credit card or a loan. The idea is that one builds up this account so in the event of an emergency or a need, the money is there and there is no stress about coming up with $250 to make a car repair or a $375 plane ticket; it's already taken care of.

I'm really excited about starting this! I've put my credit cards on ice in the freezer and once credit card #1 is paid off, it's going to be closed. I will continue to keep #2 just because I think one should have at least ONE credit card, just in case. I feel I'm pretty well-informed on financials but after ready Ms. Hunt's book, I feel even more empowered. Check it out if you can! :)

Black Friday (of doom) and other random thoughts

So I'm sitting here at work looking at PF (Personal Finance) blogs listening to my coworkers talk about Black Friday ($20 500-thread count sheets at Walmart! Ugh, I need new sheets). I haven't been to a Black Friday in over seven years and frankly, as good as the deals are, I can't afford to go. The idea of waking up super early to go fight traffic and fight crowds just makes me want to stay at home with my dogs. Are any of you planning on hitting the sales?

Anyway, I'm going to the library on my lunch break to get some books that I've been wanting to get on personal finance and debt. I need to get focused and get boyfriend on track with spending no money. Since he's been in down by the border, the only time he spends money is when he comes back to visit and last visit we spent a chunk. This is good because it keeps his spending next to nothing and me in charge of the finances (of which I love being in control). I'm slowly taking care of his finances and keeping them on track for him. With him being gone it has greatly improved our relationship as well as his debt.

In other news, I've also put a number of items up on craigslist and we'll see if any of them sell. If not I'm going to take them to my fave used bookstore and see if I can get store credit for them; otherwise they're definitely going to Goodwill. For some reason I just want to load up my car with things that I just can't stand to have around the house anymore. I really should have a yard sale but I'm one of those impatient people that when I want something done, I want it done now. I'm going to see if one of my friends wants to do it at her house, I'll see if she's down for it. That would help put money down on my VitaMix or for my contacts that I desperately need. Even if I make $100, that would almost pay off my blender. Maybe that's what I should do before dropping it all off at Goodwill...but right now that stuff is clouding my brain and that's bad Feng Shui. Why does it seem like stuff is taking over my life? AHHHH...

October on $150

inspired by small notebook's no spend month, one estate sale/thrift store loving girl with three rescued animals goes on a mission to see if she can only spend $150 in october. what will she discover? can she survive? what will the $150 cover?

• food--more specifically groceries, takeaways, and restaurants. also animal food and any treats


• gas for my honda


• household necessities--let's count toliet paper, cleaning supplies, light bulbs, batteries, etc.


• entertainment--theatre tickets, book stores, etc.


• clothing--this should be easy. i hardly ever buy clothes.

what won't this cover?

• rent


• utilities


• bills (credit card, insurance)


• savings


• charity

the boyfriend always says i'm frivolous. i'm really not. but i do like to go to thrift stores and i hardly ever spend $50 or more on something. but the little stuff adds up quick. i'm hoping to be able to stretch this month's paychecks to be able to donate more to charity and to put more on my credit card debt.

tomorrow is day one which could prove to be difficult since i don't get paid till thursday, but i think i can go one day without spending. i'm going to compile a list of cheap, yummy meals that i can prepare at home to lower my costs. luckily i have a freezer loaded with chili and ratatouille so that will last me a while (if i don't get bored of it! oh well). i do know i'm going out to lunch with my coworkers on thursday so that will cut into my spending already. i'm also going to take a lot of my dvds and other items and put them on craigslist to add to our travel fund. the bonus of this month is that i have a $50 target gift card if things prove sketchy or in case of emergencies, but i'm going to see if i can do without. i'm going to put my debit cards away (ahh) and not use them this month. if the family at small notebook can do it. so can i.

Mint.com: How did I not know about this?

anyone who knows me well knows that i love payday specifically to pay bills. nothing gets me going like paying down my debt. seriously, i have an excel spreadsheet that outlines my debt, notebooks where i write down everything.. it's like an obsession. i just love knowing how much money i have and how much debt i owe..and then watching the $$ go down (on the debt side!!! not in my account!)

there was a really great post on apartment therapy today How To: Get Real About Needless Spending. well, a few individuals commented on mint.com to track one's spending.. i immediately went to check it out. from the mint.com about page you can find out more about this FREE site that uploads your accounts from checking and savings to credit cards and investments; it tracks your spending and let's you know where one's money is going (categories like utilities, food, gas, shopping, etc.). it even shows your spending habits compare with the average american, compares this months with previous months...i could go on and on about the cool features that this site offers.

it's like the shameless grandmother that points her witchy-poo finger in your face and says, "you spent HOW MUCH on that?" yeah. it's shaming, but it's a huge wake up call to me and where exactly all my money is going. i think this tool is really going to maximize my awareness and i'm really exciting about using it on a daily basis.

the only problem i found thus far is that it said i had a $50/month grocery budget and a $20/month gas budget. really? $20/month for gas?! i can't even fill up my tiny honda civic for that...granted i don't use a lot of gas and fill up about once every two weeks but $20/month? really? i need to find out where they come up with the numbers on that one.

anyway, please, if you're like me and am money obsessed or even just want to track your habits, check it out and sign up. :)

DYI: Success!

Before: Fuzzy wuzzy was a bear...

so it worked. really. grabbed the ruby and went into the bathtub to try this whole "at-home grooming thing." it wouldn't be official without the "thing"..anyway, so she looks a little pathetic because i shaved her face to get the poodle look and BF says she looks like an anteater. :( aww..poor rubbles (pronounced roobles. she wouldn't let me shave her legs so i shaved her head, her face, and her body, but no legs. seriously now she looks like the funniest looking creature. ever. i love it. i've read that grooming your dogs can create a bonding experience.. yeah, right. me in the bathtub covered in fur. juno looking at me like i'm trying to steal her soul. practice makes perfect, obviously, but i'm really excited and motivated to get this down to save a ton of money.

AFTER: so pretty. tee hee

speaking of money, i'm doing really well on the whole.."i'm trying to be debt-free thing." really. whenever i'm hungry and need to get something to eat, i've been resorting to *gasp* the pantry. and i've come up with some yummy meals on the fly and concocting some pretty darn good food. i'm going to only buy things when i need them (i know, novel idea, right?) instead of impulse shopping. i'm going to resort back to my old ways that i had in england of using the envelope method that i've mentioned before. i get paid this thursday so i'm excited to get it started (although the final season of will and grace comes out on tues and will be almost all of my fun money for two weeks. crap.) but this is where the fun part comes in. prioritizing..figuring out what i want to spend my money on and the most important items. yay!

i know, i get way too excited about bill paying. what can i say? i'm a geek. :)

Money money money.. MOOONNNEEEY

For the first time in my adult life I am making more money than I ever have, living on my own, and paying my own bills. Being fair, I've been on my own for 7 years, but I was married so we had two incomes.

Interestingly, we didn't have much debt because I watched it like a hawk and loved paying the debt off. Before we moved back to the States last May, we were a couple grand in the green and none in the red. After moving back, it's been a constant struggle. First I had a job, then I was laid off. I didn't use my credit card ONCE while I was laid off and really pinched my pennies. I was doing so well once I finally had a job but guess what happened? My debt went up, up, up. WTF?!

So now, I'm struggling to be debt free yet again. I want to be able to save money to buy a new car in a few years and put a down-payment on a house. I just don't understand how I could be so irresponsible to get back in this position but I'm hitting it head on.

I've been searching the net for ways to reduce spending. So you're thinking, well, duh. Just stop. Yeah, it's pretty easy to do that, but I'm going to go back to the way I used to handle debt. I think the main problem is that I'm paying rent. BOOM $600 down the drain on the first of the month and that, well, sucks. I'm trying to find my groove with my new found income so I'm floundering right now.

Here are my own tips and hopefully they can help you achieve a debt-free lifestyle. Obviously most of these you've heard before, but this works for me. If you have some good tips to share, please do. I still haven't managed the dreaded "B" word (budget) but I'm going to try, yet again.

• Pay yourself first. Always allot at least 10% of your income into a high interest savings account like ING Direct.


• Attack the highest interest rate and pay the most money on it. I have two credit cards, one with zero percent interest for 18 months and one with pretty decent interest rate. I pay a little above the minimum on my zero percent interest and throw a big chunk at the higher card; why put a lot towards something that won't accrue interest until after 18months? The plan is to pay it off before that period is up and the extra money on my other card will lower the balance.


• Tithe. I donate money every single month to one of my favorite animal charities, the ASPCA. I know, you're thinking, if you want to pay your debt off, aren't you better putting that money towards your debt and THEN to charity? Uh uh. I always believe you have to give to receive and to know that my money every month will benefit animals, I'm willing to make that sacrifice.


• Do the envelope trick. I ALWAYS pay with my debit card, I love it and couldn't live without it. The problem with that is one doesn't see where the money is going and it is a lot easier to spend. By labeling envelopes such as "Groceries" and "Fun Money" you put the cash in the envelopes allotted for that month or two week period. When the money is gone, it's gone and you have to either wait till next pay period or learn to spend more wisely. When I was married we gave each other $40 for two weeks. This counts for snacks, magazines, clothes, etc. Once it's gone, it's gone. It will really make you think twice about buying that magazine.


• Look for ways to make money and I don't mean open up a lemonade stand. Gone are the days were people sold items on ebay for money. Now don't get me wrong, you USED to be able to make money on there, but now that executives have become so greedy, it's no longer the way to make quick cash. Craigslist on the other hand, yes. Why is Craigslist better than ebay IMHO? Well first and foremost, it's free! You can list your items on there as long as you like at no charge to you and no stupid fees. Another benefit is that you don't have to wait for payment or ship the items out, you have the person come pick up the item for you. Most cities have a Craigslist, check it out, list your stuff, make some cash.


• Really think about an item before you buy it. I mean overnight, not five seconds later. If you still want it after 48hours, then buy it. But giving yourself some time to think about an item, it allows time for you to reflect on what you're looking to buy.

I hope this helps! I'm excited to be debt-free once and for all. Onward and upward!

Best,
LL

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