Murphy & my car
So I’m moving soon, and have to pay extra deposits and such. I also made the mistake of looking at my past year’s expenses on my truck and thinking, I did good this year and I can decrease my car (truck) fund next year. I think Murphy heard me.
After driving home from looking at the new house we’re going to rent, everything died on my car and it just stopped working. Just prior the dash lights were fading, the windshield wipers were slow as molasses. The window was moving up and down like snails. Hardly any heater air was coming out, even on 3 (it was raining really hard, and the windshield was fogged up). We were halfway home. We think it’s the alternator. So now I have a broken truck out in the parking lot, I’m out $100 for the tow, and $150 on a rebuilt alternator (I had to pay $50 extra until the core gets returned afterwards). J offered to fix it, so I’m stuck until he does. If he can’t, or if the rain keeps up and he doesn’t feel like standing in a cold downpour to fix it, I will have to pay yet again, a second tow and a mechanic to fix it. And of course, there are complications – the bolt was loose, the belt was looser than it should be, and a plug that goes into the alternator has a wire sticking out, broken. Is it one of these things or something completely different? Time will tell, though I really really want a working vehicle back (it’s been broke since Thurs evening).
Ugh. My car fund is empty, so even more will be coming out of my EF savings. I just can’t win this month! And I know there will be extra expenses with moving, like renting a truck, maybe getting a wireless router for internet, various deposits for utilities and such (I’m sure).
I’m moving!
Argh, just when I’m getting back in control, when all my finances are being beat into submission, I up and decide to move! I’ll be moving into a new house Thanksgiving weekend, and having all those extra deposits to pay. That’ll mean putting off some debt payments and/or dipping into my EF savings for a little while.
My current living situation is a bit unique. I live (illegally) in an artist studio. More than half of everyone else in the building does too, and it’s not a big deal, but there are some related items that make it a challenge. The space is largely unheated (the heat is in one room, since a prior tenant built a wall around it to make a bedroom space, which resulted in 75% of the area being unheated (and it was in the upper 40s most of last winter). There are no laundry facilities, and I have to drive 15 minutes to get to a coin laundry (the washer/dryer got removed the week after I moved in). But the biggest detractor is the amount of homeless people that walk by the studio in front of our windows, every day. With the economic changes, the number of people that walk by has increased immeasurably. There is a big encampment up above that they all live in, in a large greenbelt to the side of the big interstate, which they access by walking by and then up a path just down the train tracks from the studio. There are a lot of men, and lately, a lot more younger men, latinos, white, you name it. It’s getting so that we’re worried to have the windows open. A girl in the building next door just told us that someone tried to break into her space, and one of the homeless people killed another within 1/4 mile of us. So we want out. I look at craigslist every so ofte, and when I did so last Wednesday evening, one place looked promising. J looked at it Thurs morning and it was great! Well, good enough anyway. We just got approved yesterday and I gave my current landlord notice.
The house we’ll be renting is the same price. It just has a lot less space. And it’s missing the 14′ ceilings. and the cool art neighbors. And the big open wide space for the cats to run around in. But it actually has a yard, a really really huge one, and we can have a ginormous garden (4′x75′) plus there is a basement for all of J’s stuff (which are quite volumous, he’s a bit of a packrat), a washer dryer, a larger kitchen, heat, and a really nice neighborhood in an area that I’ve been desperate to move back into.
So now I have to pony up:
First and Last month rent ($1800)
$250 damage deposit
$250 cleaning deposit ($175 is non-refundable for carpet cleaning, and it’s an ugly hunter-green carpet)
$250 pet deposit
My current place I had no deposit (after all, the walls are not structural and they don’t care what kind of build-out or demolition you do whatsoever). I only paid first and last month rent. SO the new first/last month rent is just like paying rent. I didn’t pay this month’s rent – that will become the new place’s “last” month rent. The triple $250 is what I have to figure out how to pay. That will probably mean no debt payments next month and some dipping into the EF. A temporary loss for a large gain.
One of the best things about the building I’m in now is that because it’s a commercial space, the utilities are very cheap. My $20/month in electric, my $60-$80 in gas heating (only in the winter), and my $15 garbage will be significantly increased I’m sure. Plus I’ll be getting internet. It’s been so many years since I’ve had to have it I’m not even sure who offers it and how expensive it is! It will definitely be nice to have access to it again. Again, since I’m in a commercial area, no dsl, no cable. Clearwire we tried, but the location we are in the building didn’t give us a good signal, so it was a waste of a year’s commitment (rarely useable).
J has agreed to pay more rent, which is nice. I hope he can afford it. He has no savings, he hasn’t paid off his credit card (it only has a small balance, under $1K), and he refuses to budget or talk about money. It’s his big trigger point. I’ve assumed that all the deposits will be paid by me, since he doesn’t have the money. I’ve also ensured that if he can’t pay rent, I can afford it. That’s why we’re in a tiny house. If I could count on him paying more, then I would have gone for the next step up in houses (larger, enough room, a second floor maybe), but I’d rather suffer a small space to continue keeping my rent manageable. I don’t want to overextend on housing and slow down my debt payments.
Net Worth: In the black (at least)
This is my first net worth calculation! I don’t own a home. I have a lot of debt. But I invested a sizeable amount (with an excellent match by my employer) in my 401K when I was in my 20s. When all is calculated, I come out with a positive number. Not very high, it’s only 4 digits, but it’s a start, and it will continue to grow as the economy improves, as I pay off my debt, and increase my savings. I expect I’ll see growth into the 5 digits by March of 2010.
So here are the numbers (and excuse the boring plain text – I’ll get a pretty & colorful table by the time I do my next posting):
Assets:
Cash $700
Savings $849
401K (current) $4520
401K (rolled over) $39,392
Net Assets: $45,569
Liabilities:
SBA: $27860
Line of Credit: $304
Citibank: $0
Discover: $4065
US Bank: $6014
Net Liabilities: $38,243
Total Net Worth: $7,218
Freebies!
What personality type are you: do you use freebies the moment you get them, or do you save them for a rainy day? I tend to be more of the latter type. As part of my being more frugal while my funds are low, I have been avoiding purchasing small things unless I dearly need to. Yesterday I ran out of cream, so couldn’t and didn’t make coffee at home. When I got to work, I felt the lack like a big empty hole inside. Something was missing! Oh yes, my caffeine addiction! My pseudo-breakfast!
I was all set to just go and buy a coffee at the place down the street, which I have been oh, so good about avoiding in the last 2 weeks. But then I remembered I had a free coffee waiting to be used! I have been saving up their coffee stamp card until I really needed it, and today was the day. I got a luscious white chocolate mocha. Yum. Totally delectable and totally free. Am I ever so glad I waited to use it.
That was yesterday, and today I’m drinking office coffee (not as good, but also free). I think I may have some more free coffee cards stashed at home. I probably also have a free CD coming my way from Easy Street Records that I haven’t cashed in. There are definitely some albums I am interested in getting. Hmmm, what else can I cash in this week, which seems all about making do with what you’ve already got.
Citibank, I look forward to parting ways!
I recently heard that Citibank, in preparation of the upcoming consumer credit protection bill being enacted in February, raised rates significantly, to 30%, for some of its customers. Yet another reason I’m glad to be closing my account with them!
You’ll remember my post last winter, when they sent me a notice of increasing rates. I could choose to opt out, but they would close my card at the date of expiration and I would have to pay off the balance at that time. As a long-time customer of 18 years, I did open it in college after all and it was my first credit card, this is how they repay my loyalty? Well screw them, I said at the time. This just makes me extra glad that I’m going to get rid of the card next year.
Oh, I plan on closing it myself iin advance of that date, which will be much better for my credit score. But it makes my poor, little consumer heart glad to give them the old heave-ho. I don’t carry a balance, and always pay them in full 100% and have for the last year.
I can’t wait until my debts are paid off. I can tell you I don’t plan on using credit cards much anymore!!
Frugality slipping with the cold
It’s cold, it’s Sunday, and I’ve got a hankering for pot roast tonight. I’m still doing really well eating food in the fridge/freezer/cupboards, but there definitely needs to be some surplus to make everything stretch ’til Nov. 6. I think I’ll go splurge for today and then make do on the rest of the week until Friday, when Thursday’s paycheck clears. I have had such a craving for 4-hour, slow-cooked pot roast, in the last several weeks and I haven’t yet managed to indulge. So I’m off to go buy the roast, some veggies, an inexpensive bottle of red, and then dinner and 2 days of leftovers will follow!
Oh, and I finally went out and bought new shoes, and all the warm clothes I need to make it through the winter. The thrift stores haven’t been providing, and I rarely find good quality, wearable clothes I can wear to work. So I overindulged and overspent on my budget, but limited myself to 2 pair of cheap, sale pants (about $28 and $34), two second layers (one $35 after mailer discount, and $22). I now have enough clothes to not wear the same things in the same week!
Plus, I also bought dansko shoes, $130. Those are never on sale. But then I get my money’s worth. My current pair has the sole completely cracked through (you can look inside and see how it’s built!), and there’s a big fat hole where my big toe is on the other one (it’s sad, but I made do with it all last winter, but I’m now ready to upgrade). If the new pair lasts anything like the others, they’ll last me 3 years of wearing them every day in the winter (once sandal season is over). I usually wear my clothes into the ground, so as long as they are comfortable, relatively flattering (ie, they don’t look bad), then it’s a good investment. I just read on another blog that a trick to buying clothes is to try them on without looking. If they *feel* good, then go ahead and open your eyes and see if you like the way they look. I tried it and it worked pretty well! There was none of that temptation to get something even if it is ill-fitting (though cute).
I also couldn’t stand the thought of going into the thriftstore yesterday when it was Halloween. I think it is their busiest shopping day! I couldn’t handle the crush.
So my efforts to not spend ANY money were a bit unrealistic. I have stuck to things I needed to and was going to get anyway, so I don’t feel that bad. I was hoping to push the spending to next month’s budget, but most of it is on a my Macy’s credit card (which I always always pay in full), so it won’t hit until the November budget. I am going to be careful to not spend much at the store on food. Here’s what I’m planning on getting. Let’s see what I end up buying when I get back:
3 lb chuck roast
4 red potatoes
2 onions
1 bottle red wine ($5-7 range)
baguette
lime juice
I do have to say that it’s not that hard being frugal if you have a semi-well stocked pantry. I made chocolate chip cookies last night (my alternte was apricot thumprint cookies, but i’ll probably make that this week with our canned apricot jam from this summer) with split pea soup (the only thing we had to buy was carrots which I’ll also use for the roast tonight). Breakfast this morning was cardamon french toast (we’re now out of eggs and running low on sandwich bread), and scrambled eggs with goat cheese and scallions. Doesn’t sound that frugal, does it?! I just have to say, if you’re gonna be cutting back, there’s nothing like splurging on a dessert when you normally don’t to make you feel like something special!
Update: I did good! I bought almost everything on my list and nothing else! Total bill: $27. Mmm, only 2 hours to go ’til dinner is ready. I’ll toast (with the red wine I just got) to that!
Should I get a 2nd Job?
Part of the reactionary planning I’ve done since finding out about my pending SBA loan maturing is considering whether or not to get a second job. I realized I had been slipping on my debt repayment plan. I had to bring it up a notch to stay on track and handle paying off as much as I could before the deadline comes. My options are to either reduce expenses and/or increase income. That’s really the bottom line.
I don’t have all the fat trimmed from my budget. I could get rid of my personal cellphone (I also have one for work that I can use personally). I could cut netflix. I could cut the gym membership which to be honest, I don’t use all that often right now. I could eat more ramen. But I’m not quite ready to cut any of those, at least right now. So that leaves increasing my income. I can’t really increase my hours or pick up shifts (it’s an office job). If I’m not willing to cut expenses and I can’t increase my current salary, that leaves other work.
I’ve had a second job before. About 3 years ago I decided to get a weekend waitress job working brunch. I pulled in almost nothing for salary but averaged about $100/day in tips. That’s about $900/month. This was right after I landed my current job, so I was working 7 days a week. I was really money hungry at the time, after being unemployed for a few months. See, I’m not afraid of hard work!
What I remember most about that time is trying to deal with the complete lack of free time. I also was dealing with a very sick, old, blind dog (hey, he was 17). I was also single at the time. I also had a full-time 40+ hr a week job. I remember never getting enough sleep, not having a social life to speak of, and after several months, going crazy from not being able to get away from it all!
I love my down time. I love my privacy. I like to sit and read a book for an entire day on occasion, and I just couldn’t do that. Fast forward to now. I’ve been thinking quite hard about the trade-offs. Making a few hundred extra a month vs. the loss in quality of life. I think I’ve decided for the moment that a second job is not maintainable, or valuable enough to have. So I’ve become used to the idea of my journey being more maintainable, but longer than it could otherwise be.
I’m not completely closed to the idea, of course, but for now, it is the right decision for me.
What % are you paying towards debt?
I recently created a 10-month average of my budget and expenses and have been having fun playing with the numbers. Including my paychecks, rent reimbursements from my bf (he only pays 1/3 rent) and that yearly IRS refund, my income averages to $3,400 monthly.
Here’s how it works out.
Food = 15%
Bills (rent, utilities, insurance) = 36%
Savings = 2% (my EF had a big chunk in it prior to 2009)
And finally…
Debt = 26% (both minimum payments and extra towards principal)
Kinda fun to see it all laid out on paper.
So what percentage of your monthly budget is for debt payments? To calculate it, add up all your minimum required payments plus any extra you might make. Divide that number by your total monthly income. Move the decimal point two places to the right (ie, multiply by 100) to get the percentage you pay towards debt.
If you are one of the smart, hardworking types that are on the other side of the coin, meaning you have no debt and are saving or investing money, what percentage are you saving/investing?
$18 for the next week
I have $18 in my checking account to last me until Nov. 5. Even with a pretty solid budget, here’s how it came to pass: Flu season has already started where I work. I maxed it out and rather than eat into my vacation, I elected to have unpaid days off in my timecard, resulting in a smaller paycheck than usual (by about $200). I’ve been aggressive with my debt and bill paying this month, probably more than I should have been, but I was making up for the last 2 months of no extra debt payments. I think I was also behind on my car insurance and ended up overpaying a month (rather than deduct what I had sent in after their bill made it into the mail).
So last night, I looked at my checking account balance to find only $18! Ugh! And I don’t get paid until next Thursday, 11/5. I did transfer some cash over from my savings account, which I fully plan on replacing when I get paid, in full. However, I also plan on NOT SPENDING MONEY as much as physically possible between now and then.
I’m out of gas, I have some food in the fridge, but no big protein sources (ie, chicken, pork, beef or tofu). I ran out of frozen food entrees in the freezer at work. What’s a gal to do? Well, enter the week of living frugally (much more than I have ever done in the past). It will be even more challenging with my bf being in the same boat (his financial reasons for being broke involve bad spending, no planning, and not debt repayment like me, but the results are the same).
Today I had leftovers. I ate oatmeal that I had kicking around in my desk drawer for breakfast. I plan on bringing more in through the duration. For lunch I had leftover chicken pho soup (Vietnamese chicken soup) and rice and fried tofu from Uwajimaya that I bought yesterday (enough for 3 meals). I have apple, bread and peanut butter. That will last me through the afternoon munchies.
I will be creative and more vegetarian at home for meals. There are a bunch of eggs, I can scramble, make a quiche (we have leeks in the garden p-patch that we haven’t used yet and there’s a rasher of bacon in the fridge that is probably still good inside its paper wrapping). I have a can of chickpeas that I can turn into a pasta dish with cream, onions, and bacon. I will probably have to go buy some carrots to make some split pea soup, and I’ll buy a tub of lettuce from Costco (all should be less than $10). I can make cookies for snacks, got the butter, flour, chocolate chip or preserves (for choc chip or thumbprints). I have lots of bulk grains and legumes. I don’t have a ton of fresh veggies though. I think I can scramble a can of tuna for lunch tomorrow, or maybe I’ll do baked potatoes, which are always filling and warming on these cold days. I think I still have ramen left over from a case bought at Costco.
I put $15 of gas in my truck and will not allow myself to buy a coffee, go out to lunch or dinner, drive anywhere unnecessary that might use my precious ½ tank of gas, or use my credit card at all. I may have to dip into my partial savings, but as I mentioned above, my next month’s bills will be lower by about $90 due to my overpayment.
ARGH, bad timing, but the lessons are good ones to take to heart.
