Ello Dere

That is the way they say, "hello, there" up in Minnesota.

So I was trying to figure out why everyone is SO FREAKED OUT about the stock market plummeting recently--young buy and hold investors in particular. Wouldn't this be a GOOD thing? I mean, even the worst markets don't last thirty years.

I know people nearing retirement age are probably a little worried, however, most of their money should be in bonds and stable funds by this point.

I guess I just don't really understand how lowering stock prices can affect the unemployment rate, or ...cause a recession??

I've been reading up on the recent crash as much as possible, and I get that the market is correcting itself because stupid people gave loans out to people who couldn't afford to pay adjustable rate mortgages over the long run. I get that. i also read that no one is really going to get in trouble for this practice because all the investors spread out the risk by packaging the loans into various sellable...packages. and then someone else packaged them as securities...in hedge funds (?). and they used MORE borrowed money to buy them, which is causing OTHER people to default on THEIR loans, etc. etc. etc. also there is something called a DRO. Apparently back in the day (in the 80's), it would have been off with someone's head for causing such a SNAFU. Not so much anymore. And apparently the Federal Funds head honchos are covering everyone's butts by cutting interest rates and printing more money (how does this help exactly??). There's just so much I don't understand.

I've graduated

Every day, I peruse the pf blogs and other websites, like MSN Money or Yahoo! Finance. Every day, I am entertained or learn something new, or revisit an issue I have thought about previously. I love thinking and reading about personal finance, and how each issue relates to my situation. I just love it.

One site in specific that I look at is the Women in Red message board. I post on there once in a while, and always receive good feedback. Lately, however, the posts have gotten repetitive and boring. The same woes about being in debt, the same advice to cut back on the same expenses, the same desperation associated with being heavily in debt.

After nearly a year of being out of debt, I sympathize with these posts, but I am getting bored with reading about the same issues regarding being in debt.

I started reading the Your Money board. It is for people out of debt, presumably, that have money left over after paying their bills, and who are looking to spend (or save) it wisely.

I can identify with this board a little bit more fully. It feels odd to have moved past the point of debt--I know, in my heart and head, that I will do anything to stay out of it, and if I get back into it, I have the tools and smarts to get out of it as quickly as possible.

I've learned so much in the past year. SO. MUCH. The tools and ideas behind money are actually very simple, and I feel like this list will be obvious, but here are my top ways to use money smartly:

1) Spend less than you earn. Make a spending journal, figure out how to lower your expenses.
2) Evaluate EVERY purchase, cut out where you can. Figure out what is MOST important to you. spend accordingly.

One and Two make sure you have extra money available for emergencies and peace of mind.

3) Pay down debt--the less bills you HAVE to pay every month, the better off you'll be if an emergency strikes.

Three just gave you an enormous feeling of accomplishment and wiped a bunch of worries off of your brow.

4) Having an emergency fund further lowers your worries. Have enough in there to cover the renter's, auto, health, and other insurance deductibles (these should have been raised in #2), plus enough for 3 months of expenses (or enough to cover you until long-term disability benefits kick in), for a worse-case-scenario emergency fund.

5) Anticipate your needs. Start saving up for the things that you KNOW you will need, like retirement funds, a new car, or computer.

6) Unless you are very into researching individual stocks, invest in no load, low expense ratio, index mutual funds.

7) Figure out how to reuse your money. Little ways count! Use ebates, hotel points, airline rewards, fatwallet, rewards credit cards, gift card prescription offers, rebates, coupons, etc. etc. etc. There are SO many ways. If you could reuse ALL of your money, you would double your salary.

8) Invest in your health, well-being, friends, family, and give back to the world. You will get back what you give tenfold. That is a great return on your investment.

When To Buy Everything.

Check this article out. Some of them really surprised me--for example, get gas on Wed. evening/Thurs. morning before 10 AM? Cool.

Moolah Update

Checking: $1900

Retirement:
401(K): $6,055.44
Roth IRA: $1058.59

Total Retirement Fun (12/22/06): $3,485.99
Total Retirement Fun (2/07): $4,479
Total Retirement Fun (3/07): $5,820
Total Retirement Fun (6/07): $ 6,965
Total Retirement Fun (7/07): $7153.37
Total Retirement Fun: $7113.74**
**Total is down from the recent drop in the stock market. My response to this is, "SALE ON STOCK!!!" and I'm kind of psyched. No freaking out here...it will rebound sooner or later.

Total Emergency Savings (09/06): $2,035
Total Emergency Savings (10/06): $2,583
Total Emergency Savings (11/06): $2,977
Total Emergency Savings (12/06): $3,225.97
Total Emergency Savings (2/07): $4,260.16
Total Emergency Savings (3/07): $6,750
Total Emergency Savings (6/07): $7,815
Total Emergency Savings (7/07): $13,151.28
Total Emergency Savings: $14,756.25


Total Net Worth (Emergency Savings + Retirement Fun): $21,870.28

Woo Hoo! My net worth is (still) over 20K!!

New Computer!

Yesterday, i posted from Vicodin land. Today, I come to you from my brand new laptop. I heart it! I can finally give back the 'loaner' from my company (technically they have forgotten I still have it), and feel free to write and do whatever I want on this one, because it's ALL MINE!

Anyway, I was home yet again today, nursing my gums back to health, and trying to catch up on all the errands I have to do. Among them are many things that will yield money back on previous purchases, if I do them correctly. For example:

1) $68 back from the stupid ripoff rental place, IF my landlord provides the lease soon.

2) $60 back from Midas, IF they approve my refund for the faulty tires they gave me back in April (seriously, this has been going on since April).

3) $35 in gift cards to Amazon from Cox communications, IF I send in the form in time.

4) health insurance, IF I send in their requested form.

5) Rebate on our solar power, IF our management company figures out how to turn the sucker on.

I swear, sometimes I feel like NO ONE knows how to do their job!!!! I have called Midas and our power company and our landlord and our management company about these issues at least a dozen times each about the various issues. I can't believe how irresponsible and drag-feet-y people are!!! Just do it. Please! It's almost become not worth it for $60 or so to have to deal with the stress of calling constantly, keeping up with who is supposed to get back to me about what, and who is the new contact person for each issue.

Sometimes I think they do this on purpose, so people quit bothering them and they get to keep the money.

But for real, they should have figured out our power bill by now. The only reason we moved here is so we'd have solar power...

Coming to you from Vicodin Land

...Here i am! I had my wisdom teeth removal surgery yesterday, and while I FREAKED OUT in the chair, just before I went to la la land, all went well. I don't feel that bad, even before I took the vicodin, so all in all, it wasn't as bad as expected. My bf's been amazing and a great nurse. I have my follow-up appt. next monday, so I'll have to shell out more $$---my initial visit was about $70 (and I think they are trying to charge me more now), the surgery cost me ~$250, and the follow up will probably be about the same as the initial. Ugh.

But I think that's the last of my scheduled medical appointments, until November when I'll need to get a refill on my birth control pills. That's good.

Last week and this past weekend I was in Minnesota for bf's mom's funeral. She died last Wednesday, and I flew out on Thursday. It was an expensive ticket, but I think bf and I are going to split the cost. I was really glad to be there for him, and I think this is what they'd call an 'emergency,' so I deemed it a necessary expense. It was nice to meet his family, at least, even though it was a very sad occasion.

Bf flew back with me on Sunday, and I had surgery early Monday morning. Let me tell you, I hate this non-chew diet. How do people do liquid-only's? It's excruciating, and I'm hungry for munchies non-stop.

I took this whole week off in order to recuperate. I'm looking forward to the time when I'm feeling a little better. After that, only 5 work days until I'm in school!!! I went to ehealthinsurance to find interim, emergency insurance while I'm in school, but they haven't confirmed its existence yet. So...here's hoping.

Other than that, I think I'll order my books today, and probably try and do some reading (I checked out 'The tightwad gazette' from the library), and lots of tv watching.

Time for Charity

Also as part of my happiness challenge, I'm devoting $50 a month to a charity. Does it matter which one? Not really. I'm going to be researching and featuring various charities each month in the blog to try and figure out where to put my money.

this month I donated $50 to a the rebuilding efforts of a Mexican orphanage. I have a co-worker and friend that is working to rebuild an orphanage with his church. He sent an email around last week (cleverly of him it was payday), asking for donations. I felt compelled to give--not only was it to a worthy cause, but it was to support a friend who had ties to the project. It was wholly gratifying. After all, $50 isn't hardly anything to me, but it's the difference between sleeping on the floor or with blankets and pillows for the orphans.

What's cool is that I'll get to see pictures of what I donated.

Let me know if you also want to donate; I don't have details now but i know I can get you in contact with the church directly. and yes, it is a tax write-off.

Shopping Spree...Sortof

So Saturday I posted about relaxing a little, and my first step was to loosen the reins Sunday when I went around to the shops.

I visited the mall for the first time in months, probably. It was ...boring. I don't know when it happened, exactly, but the girl who would go around for hours and try on things and then put them back before I could buy them is dead. She's gone. I hate shopping now! All the useless, overpriced junk! I can't believe how much time, resources, and energy is used to mass produce STUFF!

Anyway, I left the mall after an hour, only buying a slice of pizza and some copies of my new house keys. I then went to Target, as I had some stuff to return, and gave myself loose reins. I wandered around, looking at everything, and still ended up only buying things I had either thought about buying this week, or were on my list. So, I bought a toaster, some groceries (less expensive than at Von's!), and...that's it. All in all, the total was less than of the stuff I returned, so I ended up in the plus for that trip. I then went to the grocery store, where I STILL only bought stuff on my list. I ended up being within my budget for the week.

So this means that even when I mean to spend money, I don't??? I can't spend money if i TRY!

This is good news for my wallet, but I think is representative to the crazy strict money diet I've been on. Depriving myself has become a sport. Masochist alert!

Also, some other things are falling into place, in terms of increasing the happiness quotient. I hung out with my old roommate at our other old roommate's wedding this past Saturday, and she mentioned that I could get a week free at her yoga studio if I mentioned her name. It's kind of far away, but since I wanted to check out different places anyway, I may go. I need to take some sort of social workout class, i think. I've been dying to join a yoga studio or pilates or something of the sort, but haven't had the money, time, or availability (always traveling for work...). So, that is something I need to do now that I will be going part-time.

All right now. 7 days til I get my wisdom teeth removed; 21 days until I start school! woo hoo!

Ahhh. I can relax now.

I've been so happy since meeting with my CFO--it's not that I'll not have to dip into my savings AT ALL; I probably will for car repairs, various medical procedures and the "above-and-beyond" kind of thing that my second paycheck usually takes care of--but it's that I won't HAVE to for every day living. I never realized how much I would hate spending the money that I've saved up. and I do mean HATE.

I worked so hard to get out of debt last year, and then immediately I had to start saving for the school year. I was anticipating being superfrugal for the next nine months, as well, so that would total two and a half years of deprivation.

Did I say deprivation?

Why would I say that? Because I have been living without. Very without. I have been spending on what was slightly above necessary--maybe an extra fifteen bucks on groceries every once in a while, a book or two, but I haven't been...LIVING. Because LIVING required me to spend a little more on a dance or work out class or eating out with friends or whatever.

From the outside, it certainly doesn't look like I haven't been living; I go to work, take vacations, eat ok, etc. But I know I have been turning down and actively electing not to do things because they cost money. And maybe that's causing me to be a little unhappy.

So, pursuant to my Happiness post, I need to make some changes. Of course, since now I'll be in school AND working, instead of saying I don't have the money, I can easily say I don't have the time. It's always one or the other, isn't it?

The Final Word

Well, I talked to my CFO today, as scheduled. Good NEWS!!! They are going to pay me my current salary, just broken down to hourly. That's about $28.60, minus taxes. I currently pay out about 31% of my paycheck, between my 401K, medical insurance, dental/vision incurance, FSA, and taxes. However, when I'm part-time, I will not have health insurance or a 401K contribution, so I expect to make approximately $21 an hour or more. $21.50*20 hours per week*4 weeks = $1720.

I currently spend about $1770 a month. I can easily cut out $50 a month from my spending if I'm careful.

Yippeee! I can leave my $14,500 I've saved up in my HSBC savings account, and have a great emergency fund for the next 4 months. In the spring, I'll earn even more money (and possibly earn back my right to have health insurance), increasing the unlikelyhood of using that money for basic living expenses.

Not only THAT, but they are paying for my tuition IN FULL. Also--at the request of the CFO--they are paying for books, too! Books I'll likely get to keep!

So today was full of great news. Much better than I expected. It makes it so much easier to think about being in school.

Getting My Stuff Together

So tomorrow is the big day--I meet with the CFO of my company, who decides how much of my emergency/school fund I'll actually use for the next nine months. I'm asking for my current salary, just broken down to hourly--which should be about $28/hr gross. Also, I'm asking them to pay for my tuition.

Those are the big guns. I won't get that, of course, but it can't hurt to ask. The bare minimum? they pay for half my tuition and I net $1000 a month (about $17/hr for 20 hours a week). I also hope to not have to move my 401K. So those are my terms.

Also today I got those fillings in my teeth. $130 buckaroonies. Eck. My first ever fillings...didn't hurt, but I drooled all over myself 'cause the left half of my face was numb. only one more surgery to go, and 26 more days!!!