Also, why do I seem to live paycheck to paycheck? I'm doing everything right...
1) i contribute 12% to my 401K
2) i have three months of emergency savings in a high-yielding savings account, and I contribute more each month
3) I contribute $150/month to a Roth IRA
4) I give $$ and time to charity
5) I have disability, life, accidental death and dismemberment, renter's, medical, vision, dental, and auto insurance, all with the highest deductibles possible.
6) I have an FSA.
7) I have zero debt.
8) I make all of my purchases with a 5% cashback rewards credit card, which i pay off at the end of the month in full.
9) I just received a raise.
10) I am looking for ways to increase my income.
11) I don't eat out or spend frivolously.
and finally, 12) I live well below my means.
I think 12) is the problem--I cut back areas of spending, only to put that money away in a Roth or other savings vehicle. so why do those numbers grow so slowly? i feel like i should be a millionaire by now, or at lease a double digits thousandaire (10+ thousand), but I'm barely breaking 4K in my savings account. My total net worth is only around 8500, including roth and 401K. I guess I should focus on the fact that at this time last year my net worth was -$11,000. Why, that's a 19K difference! not too bad.
i just wish it were easier to perservere. my debt was conquered at a much faster rate than my savings goals are. My goals there are MUCH less attainable and will take ALOT more time. it's going to take me decades at this rate...
1) save up 6 months of emergency funding. That's about $10,000 bucks! less if i move to a cheaper place to live in june. we're rounding up. $5600 more to go.
2) save up for a new-to-me car. my tastes are becoming more expensive, I don't want a beater anymore. something cheap and reliable would be nice. power locks, windows, doors, sunroof, 4 door, automatic, cd player, jack for my mp3 player...actually starts, good gas mileage...now we're talking. nothing fancy. i think a 2000 to 2003 model would be good. $7K
3) save up to travel. europe is expensive! at least $8K
4) house fund. $20 to 30K.
5) max out roth and 401K's. 19K a year (more in the coming years)
argh. so much more to go...
Monday, January 29, 2007
Beating a dead horse...
I'm currently helping my boyfriend apply to Ph.D. programs all over the country. His motivation, along with my own need to get out of my current employment situation, has inspired me to get pro-active and start doing rather than just bitching all the time. the multitude of scenarios running through my head at any one time is overwhelming. Here are some ways I see the next 6 months playing out--the first two assuming I stay in my current city (which is preferable), the next few entertaining a big move/drastic measures:
1) lobby for part-time work and take classes in the fall. my work told me they would pay for classes that I need in my field when I started. they haven't made good yet. also, there is pressure to get licensed, and i need formal instruction in order to pass. I may extend this to add a sabbatical of sorts in the summer?
upsides: I'd get to take classes! more freedom! and best of all, no fieldwork (well, minimal, since part time precludes too much traveling)!!!! I could save up the eight months beforehand to make up for some of the lost wages.
cons: i'd still be in the same hateful job for the eight months beforehand. AND, i'd be in the same position AFTER classes were over. In addition, loss of benefits, medical coverage, and wages.
2) apply for a County job. If need be, use that offer to leverage benefits with my company now.
pros: a change of pace, maybe the same salary(?), hopefully less fieldwork, better benefits (?), possibly a sabbatical in between jobs, maybe I could bargain classes out of the deal? alot of unknowns here, but almost anything would be better than my current job. freedom! i'd get to LIVE in my city! i could take extra-curricular courses like tae kwon do and dance classes, which would make up for the possibility that the job sucks!
cons: uncertainties, what if the job sucks even worse? not too many cons here.
3) apply for that far-off job. I love this position, and it's perfect for me.
pros: get to see my grad school friends again! get to do work I think I would love! maybe progress in the state hierarchy! maybe get to create a government dept. for a state! go surfing again!! i would definitely get it, since I have so many contacts in the area--i was the TA for the kid who is filling in right now, and one of my grad professors posted the ad!!
cons: a paycut in a higher cost of living area, I REALLY don't want to move, I don't want to live in my grad school again, i don't want to be that far away from my family again, this state is VERY disorganized and too laidback for my workplace personality, reptilian sized mosquitos and cockroaches, most of my good friends have moved away or will in the next year, etc., etc., etc.
4) this isn't an option at this point, but it's something to think about: quit my job when my lease is up, put my stuff in storage, and take an extended vacation to visit all my friends in various places--San Fran, NYC, VA, TX, MO, CO, IL, HI. i'd save up beforehand, and apply to various jobs as well. I probably would spend alot of the time (like a month) staying w/ my boyfriend to see how we get along when we're in the same city. It combines all of my personal needs. I could pull this one off, but it's drastic in nature.
pros: travel! family! friends! boyfriend! fun! love! everything i need to sustain my soul... also, no rent, no bills while traveling.
cons: I point blank can't afford to go galavanting around the country without knowing I have a job and apartment lined up for me at the end of it all. medical coverage is expensive, too.
oh the agony...the only consolation in this is that i live in America, which affords me the luxury of so many options. I'm grateful, but honestly sometimes I wish it were a little more restrictive.
Here's what I plan to do in the next week (i'm actually IN TOWN for a whole seven days!):
1) talk to my supervisor about the part-time/classes idea. get it out there, at least. if they refuse, I will tell them I can't stay on with the company for much longer. (is that wise, or should I just search until I find something, and then quit?)
2) apply for the County job. the cons here are minimal. This seems to be my best course of action.
3) apply for the far-off position. it really is perfect for me. I think I need to give it a try. at the very least maybe they'd fly me out to the state to interview and I'd get to see mi amigos??
4) start packing. i'm going to have to move in june, anyway. might as well cut through the clutter. send some stuff back home with my mom and sister when they come to visit.
wish me luck!
1) lobby for part-time work and take classes in the fall. my work told me they would pay for classes that I need in my field when I started. they haven't made good yet. also, there is pressure to get licensed, and i need formal instruction in order to pass. I may extend this to add a sabbatical of sorts in the summer?
upsides: I'd get to take classes! more freedom! and best of all, no fieldwork (well, minimal, since part time precludes too much traveling)!!!! I could save up the eight months beforehand to make up for some of the lost wages.
cons: i'd still be in the same hateful job for the eight months beforehand. AND, i'd be in the same position AFTER classes were over. In addition, loss of benefits, medical coverage, and wages.
2) apply for a County job. If need be, use that offer to leverage benefits with my company now.
pros: a change of pace, maybe the same salary(?), hopefully less fieldwork, better benefits (?), possibly a sabbatical in between jobs, maybe I could bargain classes out of the deal? alot of unknowns here, but almost anything would be better than my current job. freedom! i'd get to LIVE in my city! i could take extra-curricular courses like tae kwon do and dance classes, which would make up for the possibility that the job sucks!
cons: uncertainties, what if the job sucks even worse? not too many cons here.
3) apply for that far-off job. I love this position, and it's perfect for me.
pros: get to see my grad school friends again! get to do work I think I would love! maybe progress in the state hierarchy! maybe get to create a government dept. for a state! go surfing again!! i would definitely get it, since I have so many contacts in the area--i was the TA for the kid who is filling in right now, and one of my grad professors posted the ad!!
cons: a paycut in a higher cost of living area, I REALLY don't want to move, I don't want to live in my grad school again, i don't want to be that far away from my family again, this state is VERY disorganized and too laidback for my workplace personality, reptilian sized mosquitos and cockroaches, most of my good friends have moved away or will in the next year, etc., etc., etc.
4) this isn't an option at this point, but it's something to think about: quit my job when my lease is up, put my stuff in storage, and take an extended vacation to visit all my friends in various places--San Fran, NYC, VA, TX, MO, CO, IL, HI. i'd save up beforehand, and apply to various jobs as well. I probably would spend alot of the time (like a month) staying w/ my boyfriend to see how we get along when we're in the same city. It combines all of my personal needs. I could pull this one off, but it's drastic in nature.
pros: travel! family! friends! boyfriend! fun! love! everything i need to sustain my soul... also, no rent, no bills while traveling.
cons: I point blank can't afford to go galavanting around the country without knowing I have a job and apartment lined up for me at the end of it all. medical coverage is expensive, too.
oh the agony...the only consolation in this is that i live in America, which affords me the luxury of so many options. I'm grateful, but honestly sometimes I wish it were a little more restrictive.
Here's what I plan to do in the next week (i'm actually IN TOWN for a whole seven days!):
1) talk to my supervisor about the part-time/classes idea. get it out there, at least. if they refuse, I will tell them I can't stay on with the company for much longer. (is that wise, or should I just search until I find something, and then quit?)
2) apply for the County job. the cons here are minimal. This seems to be my best course of action.
3) apply for the far-off position. it really is perfect for me. I think I need to give it a try. at the very least maybe they'd fly me out to the state to interview and I'd get to see mi amigos??
4) start packing. i'm going to have to move in june, anyway. might as well cut through the clutter. send some stuff back home with my mom and sister when they come to visit.
wish me luck!
Saturday, January 27, 2007
don't mess with taxes!
I cannot WAIT to do my taxes! I don't know why, but ever since I got my first job, I've waited on pins and needles for my W-2, 1099, etc. forms so I could get my hard numbers. It puts the politics of tax cuts and changes in a more personal light.
Unfortunately, I've run the numbers in a draft, and it looks like i'm going to owe at least a couple hundred dollars. I don't itemize yet, so there's no real hope for a reprieve.
The ONLY good thing Bush has done for me is cut taxes.
Unfortunately it's causing the U.S. to seriously rack up debt at an unprecedented rate. I wouldn't mind paying more taxes if they were for improvements in laws concerning issues like health care and education and environment. now, i know my $$ is going towards the war in Iraq, something I don't approve of. I really wish there were some way to ensure our dollars went to the issues we cared about. It's MY money. I should be able to do with it what i want.
Unfortunately, I've run the numbers in a draft, and it looks like i'm going to owe at least a couple hundred dollars. I don't itemize yet, so there's no real hope for a reprieve.
The ONLY good thing Bush has done for me is cut taxes.
Unfortunately it's causing the U.S. to seriously rack up debt at an unprecedented rate. I wouldn't mind paying more taxes if they were for improvements in laws concerning issues like health care and education and environment. now, i know my $$ is going towards the war in Iraq, something I don't approve of. I really wish there were some way to ensure our dollars went to the issues we cared about. It's MY money. I should be able to do with it what i want.
Friday, January 26, 2007
The Downside to Rewards credit cards
My plans for the next 6 months keep changing. I am frustrated. I just want everything to stand still for a second so I can adjust.
I wasn't able to save $500 from my second paycheck in January--I had a credit card payment that was due. It took up most of that $500 due to purchases that should be reimbursed by my employer. I was using MY credit card because I get 5% on gas and 1% on some other purchases...but an extra $5 to $15 is not worth it if they take three months to reimburse me. !
Apparently the reimbursement lady (who is TERRIBLE at her job under normal circumstances) has shingles. Who gets shingles (at 33 years old)? So...who knows when I'll get my $400? I certainly don't.
The other kicker? I seem to be spending ALOT more money now that I use a credit card to pay. When I was using my debit, I feel like I was more careful. Don't get me wrong, I still pay it off every week, but the $$ is accumulating at a faster rate than I seem to be able to pay it off. Purchases made last week show up this week, etc., so I can't keep track of the balance at any one time. I have already gotten one $50 reimbursement check with it, and expect another one this month. That seems awfully fast. I need to be more careful with it, i have just been swiping and going, getting back in the habit of not really being too careful with what I'm buying.
In other news, my life can go in a million different ways in the next six months, but not one of them is appealing to me. At least, in not one of them do i get everything (or even most) of what I want. phooey. life sucks without money. If i had lots of it i wouldn't need to worry so much.
I wasn't able to save $500 from my second paycheck in January--I had a credit card payment that was due. It took up most of that $500 due to purchases that should be reimbursed by my employer. I was using MY credit card because I get 5% on gas and 1% on some other purchases...but an extra $5 to $15 is not worth it if they take three months to reimburse me. !
Apparently the reimbursement lady (who is TERRIBLE at her job under normal circumstances) has shingles. Who gets shingles (at 33 years old)? So...who knows when I'll get my $400? I certainly don't.
The other kicker? I seem to be spending ALOT more money now that I use a credit card to pay. When I was using my debit, I feel like I was more careful. Don't get me wrong, I still pay it off every week, but the $$ is accumulating at a faster rate than I seem to be able to pay it off. Purchases made last week show up this week, etc., so I can't keep track of the balance at any one time. I have already gotten one $50 reimbursement check with it, and expect another one this month. That seems awfully fast. I need to be more careful with it, i have just been swiping and going, getting back in the habit of not really being too careful with what I'm buying.
In other news, my life can go in a million different ways in the next six months, but not one of them is appealing to me. At least, in not one of them do i get everything (or even most) of what I want. phooey. life sucks without money. If i had lots of it i wouldn't need to worry so much.
Wednesday, January 24, 2007
FSA? Help!
I am the proud owner of a brand spanking new FSA. Unfortunately, I have no idea how to use it. the packet given to me by my employer offered no help, just allowed me to pick a number to contribute to it and an application.
Since it's my first time using it and I plan on quitting somewhat soon, I chose $150. I could do more, but really, I need a practice year.
I thought i knew how to use it: fill out the claims form that was in the application, and voila! they reimburse you with the $ you contributed. However, I don't really understand that method...i think i'm missing something here. if i pay at the counter with after tax dollars, then shouldn't i get reimbursed the cost of the drug plus whatever the tax would be on that $? Maybe i'm looking at it backwards, but it isn't making sense to me.
Anyway, aside from that...i went to go pick up my birth control from the pharmacy last weekend, and made a big to-do about my FSA and needing a separate receipt (i was making some other purchases, like shampoo...for 60 cents!). The lady at the counter asked for my card to swipe. not my credit card, mind you, my FSA swipey card. WHAT? I have no such thing, and no one has ever mentioned this to me. Also, i just received my new health insurance cards in the mail, and there is no swipey card. WTF.
so I ask you: WTF?
Since it's my first time using it and I plan on quitting somewhat soon, I chose $150. I could do more, but really, I need a practice year.
I thought i knew how to use it: fill out the claims form that was in the application, and voila! they reimburse you with the $ you contributed. However, I don't really understand that method...i think i'm missing something here. if i pay at the counter with after tax dollars, then shouldn't i get reimbursed the cost of the drug plus whatever the tax would be on that $? Maybe i'm looking at it backwards, but it isn't making sense to me.
Anyway, aside from that...i went to go pick up my birth control from the pharmacy last weekend, and made a big to-do about my FSA and needing a separate receipt (i was making some other purchases, like shampoo...for 60 cents!). The lady at the counter asked for my card to swipe. not my credit card, mind you, my FSA swipey card. WHAT? I have no such thing, and no one has ever mentioned this to me. Also, i just received my new health insurance cards in the mail, and there is no swipey card. WTF.
so I ask you: WTF?
Friday, January 19, 2007
Thursday, January 18, 2007
Raise and Life Changes Abound...
So...lots to post about, and I have very little time to do so. I do have news, though (!): I got a raise.
...a 10% raise. Yesss!
the Lord hath provided. Just as I was worried about scraping by to fund my little mental health sabbatical from work, a solution presented itself. It won't solve it completely, but boy will that extra $250/month be nice! it's an extra $8 a day. :)
My review was emotionally exhausting, though. They had me in the field for a half day, and then my supervisor told me he had some work for me to do in the office, so he sent someone relieve to me. I drove back to the office. When I got there, he says that he doesn't have work right then, and I'm to have my review in 30 minutes. I'm not a fan of surprise reviews...I would have prepared something to say about how unhappy I am had I known it was yesterday. Instead, I blanked. They started talking about how happy they were with my performance, where they saw me in the company in the next two to five years, and raved about me, basically. And then they gave me a raise. I think, in the midst of all that positivity, and since I'd been working 12+ hour days and was very tired, I just couldn't figure out how to say I wasn't happy. I'm very mad at myself for missing that opportunity.
Then again, I was thinking about it, and I'm at the point where I'm not really sure why I hate it. I just know I do. It may be the company, or it may be the work itself, or even just the hours. I just can't tell anymore. the unhappiness has blanketed my consciousness. I need to leave. and I need to leave now. I don't give up on something until I reach some sort of breaking point, and I'm there. I have been for a while now. I hate to admit this, but I'm just there for the paycheck. I get nothing else out of it anymore except the comfortability of the familiar. I just can't afford to quit yet.
This brings me to the next big news in my life: my dear beloved roommate got engaged a couple of weeks ago. I love her, and I love her boyfriend (excuse me, fiance. or is it fiancee? i don't know french). But their happy union wreaks havoc on my financial and social life in many ways:
1) She is the best roommate I've ever had, and I've said many a time that if I couldn't live with her, I was going to start living by myself. It's true, I have had some very bad roommate experiences, and she's amazing.
2) She's going to stay until the end of our lease, July 1. I LOVE my house, and I LOVE my room and roommates. It's perfect for me, and I am really bummed that that will be no more.
3) My other roommate and I are fine, but I don't think we'll choose to live together without Kelly. It sucks, but we're just not that close.
So what does this all mean?
a) i revised my escape plan to have my last day of work to be near the end of June. That way, I can move my stuff to storage while I travel for a few months. Saves on rent!! This is key.
b) My original plan was to keep living where I was, and just have a place to go back to while searching for a job in my city whenever I was done traveling. now when I get back (and I DO want to come back here, I'm not done with the city yet), I won't have a place to live OR a job. This is bad...very very bad. It can take 3+ months to find a job here!!
c)No one will want to rent to a person without a job. argh.
I don't know what to do. I want to be all devil may care and free, but the logistics of this thing are daunting. not being able to rent a place? what about the job thing? i am not even sure where I want to work yet!!
Some solutions I came up with:
--crashing at friends'/subletting a cheap, furnished room until I have a job and can get my own place. do they even sublet places to people without jobs? esp. if I have good references and the money upfront?
--where o where will i park my car while i'm out galavanting?? I could maybe leave it in my current work parking garage, but they may tow it when they see it's been in there for a long ass time. I do kind of know the parking attendants, though, so I may be able to convince them that I am just going to be away on fieldwork for a long period of time. they are familiar with our cars being in there. once i left it in there for 3 weeks straight.
--ummm...that leaves the job stuff. i don't want to worry about the job thing while i'm away, hence the saving like a madwoman craze that has currently accosted my soul. I don't want to touch the emergency fund after the travel fund runs out, but it may be necessary if I can't find a job in a timely manner. Also, I don't want to take anything that's offered just because I'm desperate to have a job. you know?
--should I keep my health insurance through COBRA or just get disaster insurance?? it's max 4 months, i hope.
--can i keep my 401K in my workplace while I'm figuring out what to do?? it'll be over 5K by then.
Feel free to make suggestions. The problem with personal finance sites/books is that they tell you how to live within your means IF and only if you can count on staying in your job for a long period of time. they DON'T tell you what to do/how to prepare for a major life change, aside from the emergency fund. but if you KNOW you are going to make a major life change, then i do not consider that an emergency. huh.
So many things are going through my head now. I need to buckle down. That $800 to $1000/mo i'm going to save for the next six months is certainly going to come in handy...i can't wait to start traveling and having fun.
...a 10% raise. Yesss!
the Lord hath provided. Just as I was worried about scraping by to fund my little mental health sabbatical from work, a solution presented itself. It won't solve it completely, but boy will that extra $250/month be nice! it's an extra $8 a day. :)
My review was emotionally exhausting, though. They had me in the field for a half day, and then my supervisor told me he had some work for me to do in the office, so he sent someone relieve to me. I drove back to the office. When I got there, he says that he doesn't have work right then, and I'm to have my review in 30 minutes. I'm not a fan of surprise reviews...I would have prepared something to say about how unhappy I am had I known it was yesterday. Instead, I blanked. They started talking about how happy they were with my performance, where they saw me in the company in the next two to five years, and raved about me, basically. And then they gave me a raise. I think, in the midst of all that positivity, and since I'd been working 12+ hour days and was very tired, I just couldn't figure out how to say I wasn't happy. I'm very mad at myself for missing that opportunity.
Then again, I was thinking about it, and I'm at the point where I'm not really sure why I hate it. I just know I do. It may be the company, or it may be the work itself, or even just the hours. I just can't tell anymore. the unhappiness has blanketed my consciousness. I need to leave. and I need to leave now. I don't give up on something until I reach some sort of breaking point, and I'm there. I have been for a while now. I hate to admit this, but I'm just there for the paycheck. I get nothing else out of it anymore except the comfortability of the familiar. I just can't afford to quit yet.
This brings me to the next big news in my life: my dear beloved roommate got engaged a couple of weeks ago. I love her, and I love her boyfriend (excuse me, fiance. or is it fiancee? i don't know french). But their happy union wreaks havoc on my financial and social life in many ways:
1) She is the best roommate I've ever had, and I've said many a time that if I couldn't live with her, I was going to start living by myself. It's true, I have had some very bad roommate experiences, and she's amazing.
2) She's going to stay until the end of our lease, July 1. I LOVE my house, and I LOVE my room and roommates. It's perfect for me, and I am really bummed that that will be no more.
3) My other roommate and I are fine, but I don't think we'll choose to live together without Kelly. It sucks, but we're just not that close.
So what does this all mean?
a) i revised my escape plan to have my last day of work to be near the end of June. That way, I can move my stuff to storage while I travel for a few months. Saves on rent!! This is key.
b) My original plan was to keep living where I was, and just have a place to go back to while searching for a job in my city whenever I was done traveling. now when I get back (and I DO want to come back here, I'm not done with the city yet), I won't have a place to live OR a job. This is bad...very very bad. It can take 3+ months to find a job here!!
c)No one will want to rent to a person without a job. argh.
I don't know what to do. I want to be all devil may care and free, but the logistics of this thing are daunting. not being able to rent a place? what about the job thing? i am not even sure where I want to work yet!!
Some solutions I came up with:
--crashing at friends'/subletting a cheap, furnished room until I have a job and can get my own place. do they even sublet places to people without jobs? esp. if I have good references and the money upfront?
--where o where will i park my car while i'm out galavanting?? I could maybe leave it in my current work parking garage, but they may tow it when they see it's been in there for a long ass time. I do kind of know the parking attendants, though, so I may be able to convince them that I am just going to be away on fieldwork for a long period of time. they are familiar with our cars being in there. once i left it in there for 3 weeks straight.
--ummm...that leaves the job stuff. i don't want to worry about the job thing while i'm away, hence the saving like a madwoman craze that has currently accosted my soul. I don't want to touch the emergency fund after the travel fund runs out, but it may be necessary if I can't find a job in a timely manner. Also, I don't want to take anything that's offered just because I'm desperate to have a job. you know?
--should I keep my health insurance through COBRA or just get disaster insurance?? it's max 4 months, i hope.
--can i keep my 401K in my workplace while I'm figuring out what to do?? it'll be over 5K by then.
Feel free to make suggestions. The problem with personal finance sites/books is that they tell you how to live within your means IF and only if you can count on staying in your job for a long period of time. they DON'T tell you what to do/how to prepare for a major life change, aside from the emergency fund. but if you KNOW you are going to make a major life change, then i do not consider that an emergency. huh.
So many things are going through my head now. I need to buckle down. That $800 to $1000/mo i'm going to save for the next six months is certainly going to come in handy...i can't wait to start traveling and having fun.
Thursday, January 11, 2007
$7 a day?
For various reasons I won't go into right now, I've determined I will be financially ok if I stash away $1000 a month extra for the next 6 months. Today I placed $500 of my last paycheck in my savings account. This is going to pinch...time to work out the math:
What I'm saving so far on a $50K salary:
12% of my gross salary in a 401K ($500 a month pre-tax), net: $2710 per month
$225 in normal savings (after tax) leftover: $2485
$150 to a Roth IRA (after tax) leftover: $2335
Necessary fixed expenses (rent, utilities, cable, phone, gas, medications): ~$1100 leftover: $1235
EXTRA SAVING: $1000/month leftover: $235
So that means I need to eat and do everything else with $235 a month, if I want to save $1000! There's Just No Way. Especially with the way I've been living, throwing money at everything without really caring. I am out of debt, I'm saving each month, I have a Roth IRA, I'm contributing a good amount to my 401K, I have a 3 month emergency fund (covering bare essentials), and I'm getting 5% cash back on some of my purchases (and at least 1% on the rest)...most of the time I figure I've earned the right to live (and buy) the way I want to, as long as it's below my means. But it's just not cutting it.
I'm really discouraged at how little I've saved so far. I mean, I JUST got out of $11,000 of debt last October...you'd think I'd give myself some credit. But it's just not growing as much as it feels like it should. I'm doing everything right!! Where is the reward? I'm pinching pennies and think about money all the time...and still I don't see the evidence.
I've determined that it takes about $500 a month of increases to really see any sort of satisfying growth in a savings account, at least for me. When I changed my 401K last October, it was growing so slowly i hated to check my balance. Now, it's increasing like crazy! I think I just like to see the thousands' digit go up. Now, every two months, i gain another thousand. THAT is progress. I need to do the same for my post-tax savings, I think...
So, on that end, I'll revise my savings goal to a more liveable $500 a month. I will probably take end measures to try to save more, such as placing $1000 in savings ($500 per paycheck), and taking out just what I need to live if I go over. I HATE taking money out of my savings, so hopefully this will give me more motivation to scrimp and live off my goal of $7 a day (what's left if I save an extra $1000/month!).
Before I upped my 401K contribution and when I was in debt, I was able to pay $1000 a month (or close to it) to cc debt. I meant to give myself a short break and start saving that money again, but obviously it hasn't happened. It's not like I'm going on shopping sprees, but somehow I lose track of all the little things and I don't have much left over at the end of the month. Of course, plane tickets really whomped me in December--that's probably what ate up my November-December cc debt payment money that I didn't owe anymore.
Now, my friends, it's time to get back on track. Luckily (or unluckily), I now have a reason to start being frugal again. If I actually pull this off, it will be a miracle. But I will feel loads better about my short-term future.
What I'm saving so far on a $50K salary:
12% of my gross salary in a 401K ($500 a month pre-tax), net: $2710 per month
$225 in normal savings (after tax) leftover: $2485
$150 to a Roth IRA (after tax) leftover: $2335
Necessary fixed expenses (rent, utilities, cable, phone, gas, medications): ~$1100 leftover: $1235
EXTRA SAVING: $1000/month leftover: $235
So that means I need to eat and do everything else with $235 a month, if I want to save $1000! There's Just No Way. Especially with the way I've been living, throwing money at everything without really caring. I am out of debt, I'm saving each month, I have a Roth IRA, I'm contributing a good amount to my 401K, I have a 3 month emergency fund (covering bare essentials), and I'm getting 5% cash back on some of my purchases (and at least 1% on the rest)...most of the time I figure I've earned the right to live (and buy) the way I want to, as long as it's below my means. But it's just not cutting it.
I'm really discouraged at how little I've saved so far. I mean, I JUST got out of $11,000 of debt last October...you'd think I'd give myself some credit. But it's just not growing as much as it feels like it should. I'm doing everything right!! Where is the reward? I'm pinching pennies and think about money all the time...and still I don't see the evidence.
I've determined that it takes about $500 a month of increases to really see any sort of satisfying growth in a savings account, at least for me. When I changed my 401K last October, it was growing so slowly i hated to check my balance. Now, it's increasing like crazy! I think I just like to see the thousands' digit go up. Now, every two months, i gain another thousand. THAT is progress. I need to do the same for my post-tax savings, I think...
So, on that end, I'll revise my savings goal to a more liveable $500 a month. I will probably take end measures to try to save more, such as placing $1000 in savings ($500 per paycheck), and taking out just what I need to live if I go over. I HATE taking money out of my savings, so hopefully this will give me more motivation to scrimp and live off my goal of $7 a day (what's left if I save an extra $1000/month!).
Before I upped my 401K contribution and when I was in debt, I was able to pay $1000 a month (or close to it) to cc debt. I meant to give myself a short break and start saving that money again, but obviously it hasn't happened. It's not like I'm going on shopping sprees, but somehow I lose track of all the little things and I don't have much left over at the end of the month. Of course, plane tickets really whomped me in December--that's probably what ate up my November-December cc debt payment money that I didn't owe anymore.
Now, my friends, it's time to get back on track. Luckily (or unluckily), I now have a reason to start being frugal again. If I actually pull this off, it will be a miracle. But I will feel loads better about my short-term future.
Wednesday, January 10, 2007
Just Enough To Live...
I heard from a friend of a friend that his dad's friend's daughter's husband (yeah, i KNOW) won a scratch off lotto ticket--to the tune of $5000 per month for the rest of his life. Are you kidding me? Even with taxes and future inflation, that's some peace of mind. It's enough to live off of, if you didn't want to work, BUT it's not enough to draw major media attention, blow it on something stupid, etc. It's the perfect amount of money to win.
I've spent the past week or two dreaming, off and on, of what I'd do if that were me...
As much as I hate lottery/gambling/etc., i may just have to scratch my itch (pun intended) and buy one. You never know.
I've spent the past week or two dreaming, off and on, of what I'd do if that were me...
As much as I hate lottery/gambling/etc., i may just have to scratch my itch (pun intended) and buy one. You never know.
Tuesday, January 09, 2007
A Million Reasons To Blog
Oh man! Am I ever the bad blogger. I just can't seem to get back into it. Life is crazy busy and I've been in my home city for exactly 2 days since mid-December. So, once again, I am sorry.
I have thought about topics, though! Finances are still pervasive in my life. Among them:
--The Talk with my mom about my parents' finances over Christmas break. whooo boy.
--Long distance relationships and does the cost even out?
--My new plan for '07.
--the engagement of my roommate (congrats to her) and its consequences on my financial situation
--Taxes went down!
--Taxes in general. Need to figure out why i always owe Uncle Sam but California always owes me. ??
--Still trying to use work as much as possible to save moolah. I could do better, though, I think.
But all that will have to wait. For i just got back to the hotel from the field and I'm huuuuungry. Off to spend work's $$$!
I have thought about topics, though! Finances are still pervasive in my life. Among them:
--The Talk with my mom about my parents' finances over Christmas break. whooo boy.
--Long distance relationships and does the cost even out?
--My new plan for '07.
--the engagement of my roommate (congrats to her) and its consequences on my financial situation
--Taxes went down!
--Taxes in general. Need to figure out why i always owe Uncle Sam but California always owes me. ??
--Still trying to use work as much as possible to save moolah. I could do better, though, I think.
But all that will have to wait. For i just got back to the hotel from the field and I'm huuuuungry. Off to spend work's $$$!
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