This is my Mom's birthday weekend, so she will be in town and as much time as possible will be spent with her and my brother and sister. I will also be spending quite a bit of time in North Austin dog-sitting for a close friend. I will also be trying to spend time with another friend who is moving this month. And I have about a million errands to run in between. And I am totally exhausted.
And of course this would all occur the last weekend I have to earn money for rent.
Friday, July 31, 2009
Sunday, July 26, 2009
Forming What Hypothesis?
A few days ago a commenter asked me to explain why "Forming Our Hypothesis" is part of Year Three's title.
Some of you may remember that Year One was titled "In Which We Begin a Social Experiment." I also referred to Darling and myself as the Lab Rats. This experiment is designed to contradict the common knowledge that good credit is essential to financial well-being. Because we are presenting a rather controversial theory, my husband and I are prepared to be proven wrong. Come 2027 we may find ourselves homeless and hungry on the streets of Calcutta due to our credit rebellion. Or five years from now we might find ourselves desperate to settle down and paint a nursery at a fair mortgage rate. That's why it's both a challenge and an experiment.
Our mission statement sets a completion date (August 2027), several goals (children, land, home, total financial freedom), and some parameters (social and environmental responsibility, no credit industry.) Lately I've been examining our theories more closely. The further my husband and I drift from the beaten track, the more closely we scrutinize our supposed needs and wants. Do we really want to own land? Is it fair to count the land my Mom will leave us when she dies? Is there really any such thing as an environmentally friendly automobile? If we drift too far from mainstream culture, does it render this blog useless?
Basically, in the next year or two I want to determine exactly what I want this experiment to prove. I also need precise numbers and figures to shoot for. We're not just going to survive by the skin of our teeth for 20 years and announce ourselves successful. I want to show that people can thrive without credit. I need to determine exactly what this means, first. How much money in the bank, what quality of land, etc.
Some of you may remember that Year One was titled "In Which We Begin a Social Experiment." I also referred to Darling and myself as the Lab Rats. This experiment is designed to contradict the common knowledge that good credit is essential to financial well-being. Because we are presenting a rather controversial theory, my husband and I are prepared to be proven wrong. Come 2027 we may find ourselves homeless and hungry on the streets of Calcutta due to our credit rebellion. Or five years from now we might find ourselves desperate to settle down and paint a nursery at a fair mortgage rate. That's why it's both a challenge and an experiment.
Our mission statement sets a completion date (August 2027), several goals (children, land, home, total financial freedom), and some parameters (social and environmental responsibility, no credit industry.) Lately I've been examining our theories more closely. The further my husband and I drift from the beaten track, the more closely we scrutinize our supposed needs and wants. Do we really want to own land? Is it fair to count the land my Mom will leave us when she dies? Is there really any such thing as an environmentally friendly automobile? If we drift too far from mainstream culture, does it render this blog useless?
Basically, in the next year or two I want to determine exactly what I want this experiment to prove. I also need precise numbers and figures to shoot for. We're not just going to survive by the skin of our teeth for 20 years and announce ourselves successful. I want to show that people can thrive without credit. I need to determine exactly what this means, first. How much money in the bank, what quality of land, etc.
Saturday, July 25, 2009
Settling In, More Automatic Deductions
Things are going really well at the co-op. We are slowly unpacking and adjusting to this new lifestyle. The coolest thing about our new home is the variety of food available; it's sort of like living in an all-you-can-eat health food buffet. Yesterday I was asked what Darling and I would like to add to the shopping list, which already included more types of cheese, veggies, and grains than Darling and I would purchase in a year. Buying both beans and rice in a single shopping trip can be a struggle for Darling and me sometimes, so it's really exciting to live with such an impressively stocked organic pantry.
I'm working this weekend at the restaurant, making lots of money and not exactly enjoying myself. Still not sure if I'll be getting that vacation paycheck...Our money situation is weird right now. I honestly feel pretty detached from the whole situation. It doesn't help that U-haul, whom I expect to over-charge me, still hasn't charged the full amount I was expecting to owe. So I'm sort of waiting for them to drain my account. I know the sensible thing to do is call them, but I'd rather they make the first move. So I'm neither sure of the next couple of weeks income (will I get the check?) or expenses (how much will Uhaul try and get off me?).
One positive thing I did today was set up an automatic savings plan with Ing. It annoys me that it's been four months since we made a deposit to our savings account, so I'm experimenting with small weekly deposits. After a bit of agonizing, I decided to start at $10 every Friday.
Making this choice was difficult because we're already deducting $20 a week to pay for student loans. On the one hand, I'm theoretically saving more money in the long run by paying off debt (which accrues over 5% interest) than by actually saving money (at less than 5% interest). But I'm a big believer in having an emergency fund and contributing to a retirement account. And if I can sacrifice $20 a week to the corporate moloch, I can surely put aside $10 a week in the name of preparedness. My hope is to create an out-of-sight, out-of-mind situation. But $120 a month is hard not to think about.
I'm working this weekend at the restaurant, making lots of money and not exactly enjoying myself. Still not sure if I'll be getting that vacation paycheck...Our money situation is weird right now. I honestly feel pretty detached from the whole situation. It doesn't help that U-haul, whom I expect to over-charge me, still hasn't charged the full amount I was expecting to owe. So I'm sort of waiting for them to drain my account. I know the sensible thing to do is call them, but I'd rather they make the first move. So I'm neither sure of the next couple of weeks income (will I get the check?) or expenses (how much will Uhaul try and get off me?).
One positive thing I did today was set up an automatic savings plan with Ing. It annoys me that it's been four months since we made a deposit to our savings account, so I'm experimenting with small weekly deposits. After a bit of agonizing, I decided to start at $10 every Friday.
Making this choice was difficult because we're already deducting $20 a week to pay for student loans. On the one hand, I'm theoretically saving more money in the long run by paying off debt (which accrues over 5% interest) than by actually saving money (at less than 5% interest). But I'm a big believer in having an emergency fund and contributing to a retirement account. And if I can sacrifice $20 a week to the corporate moloch, I can surely put aside $10 a week in the name of preparedness. My hope is to create an out-of-sight, out-of-mind situation. But $120 a month is hard not to think about.
Wednesday, July 22, 2009
Moving Days
Sunday Darling and I were up at five to pickup the moving truck, disassemble and pack our heavy antique furniture, drive it two hours to my Mom's, unload and reassemble the heavy furniture, move my Mom's house around so it all fit the way she liked, drove back to Austin in the scariest storm ever, dropped off the truck and walked two hours to get home by midnight.
Monday I woke up at five to go to work at the bakery, then picked up the moving truck to move all of our furniture. Upstairs. We had to make about three trips. We had just enough energy to put sheets on the futon before passing out that night.
Tuesday I woke up at five again to work at the bakery, then I went to our old place and cleaned it for seven hours. Darling came home from school and we carried lots of stuff to Goodwill and then we carried some more stuff to our new home.
Today I woke up and went to the bakery so tired I could barely keep my eyes open. We did a walk-through with the landlord, who looked pleased by my cleaning but didn't mention our deposit. We'll see him next week to deal with that.
Finally, this afternoon we had some semblance of relaxation. After the walk-through we came home and I made beet-cucumber-apple-celery juice and veggie sandwiches while Darling put a load of laundry through. We watched a DVD while eating, then I did the dishes and my husband arranged our room a little. Soon we will have time to actually unpack, and maybe even catch up on our sleep. Maybe.
Monday I woke up at five to go to work at the bakery, then picked up the moving truck to move all of our furniture. Upstairs. We had to make about three trips. We had just enough energy to put sheets on the futon before passing out that night.
Tuesday I woke up at five again to work at the bakery, then I went to our old place and cleaned it for seven hours. Darling came home from school and we carried lots of stuff to Goodwill and then we carried some more stuff to our new home.
Today I woke up and went to the bakery so tired I could barely keep my eyes open. We did a walk-through with the landlord, who looked pleased by my cleaning but didn't mention our deposit. We'll see him next week to deal with that.
Finally, this afternoon we had some semblance of relaxation. After the walk-through we came home and I made beet-cucumber-apple-celery juice and veggie sandwiches while Darling put a load of laundry through. We watched a DVD while eating, then I did the dishes and my husband arranged our room a little. Soon we will have time to actually unpack, and maybe even catch up on our sleep. Maybe.
Saturday, July 18, 2009
Yikes...
When I reserved a moving truck last week, I made a mental note to keep an eye out for my driving license. I only ever take it out when I want to drink, which isn't very often, and half the time I use my state I.D.
I'm supposed to pick up the truck tomorrow morning, 98% of my house is packed - including the license's usual hiding places - and I still can't find it. This is vaguely infuriating. It might have been missing since April, for all I would have noticed. Where can it be?
Looks like Darling will be the designated driver tomorrow. Though come to think of it, I can't say I've seen his license recently either.
I'm supposed to pick up the truck tomorrow morning, 98% of my house is packed - including the license's usual hiding places - and I still can't find it. This is vaguely infuriating. It might have been missing since April, for all I would have noticed. Where can it be?
Looks like Darling will be the designated driver tomorrow. Though come to think of it, I can't say I've seen his license recently either.
Current Exercise Routine
The Brookings Institute tells us that about 60% of early deaths are the result of chronic illnesses influenced by "behavioral, social and environmental influences." I'd like to know more about that statistic. I mean, what diseases don't involve "environmental influence?" And which category does, say, HIV fall into? And are mental illnesses - and resulting drug addictions - taken into account? I'm not saying it's not a worthwhile statistic, but it's worded in a curiously vague manner.
Feel free to roll your eyes at me and say, "Tread, the point is that people should take personal responsibility for their health. If people didn't smoke or eat McDonalds 'till they exploded and got excersise, we wouldn't need universal healthcare." Although I wouldn't altogether agree with you (which is rather peevish, since I literally put words into your mouth), I totally agree that it's about time Americans get out of our cars and start taking control of our fitness.
Am I taking my own advice? Not without a fight. At least, that's how it feels. Two weeks ago my best friend invited me to enjoy her torture chamber, which looks to the untrained eye like a well-equiped weight room. She has created a full-body weekly regime, which involves muscles I neither knew of nor have any desire to tone. But, knowing that weight training has many benefits, I returned Friday for my second work-out and look foward to my next. I've also been jogging about once a week and doing yoga most mornings.
Unlike the weight training - which hopefully will grow on me once my muscles knit back together - jogging makes me feel great. And the yoga helps me deal with chronic back pain I've suffered for well over ten years. All things considered, it's a surprisingly comfortable and frugal routine.
Feel free to roll your eyes at me and say, "Tread, the point is that people should take personal responsibility for their health. If people didn't smoke or eat McDonalds 'till they exploded and got excersise, we wouldn't need universal healthcare." Although I wouldn't altogether agree with you (which is rather peevish, since I literally put words into your mouth), I totally agree that it's about time Americans get out of our cars and start taking control of our fitness.
Am I taking my own advice? Not without a fight. At least, that's how it feels. Two weeks ago my best friend invited me to enjoy her torture chamber, which looks to the untrained eye like a well-equiped weight room. She has created a full-body weekly regime, which involves muscles I neither knew of nor have any desire to tone. But, knowing that weight training has many benefits, I returned Friday for my second work-out and look foward to my next. I've also been jogging about once a week and doing yoga most mornings.
Unlike the weight training - which hopefully will grow on me once my muscles knit back together - jogging makes me feel great. And the yoga helps me deal with chronic back pain I've suffered for well over ten years. All things considered, it's a surprisingly comfortable and frugal routine.
Mid-Move
I woke yesterday at 6:30 in the morning to do the dishes, scrub the toilet, and start boxing our entire house.
Supposedly we had a prospective renter coming in at 9 a.m. to view the house, and another at 3 p.m., which is why I was up so early. Neither showed. I suspect trickery on the part of my landlord. But at least we got a lot done.
This morning I woke up at six in the morning to go down to the bakery to train on cake baking and decorating. Got home at noon and crashed in bed for a couple of hours. I need to pack the rest of our kitchen and everything else that isn't going to my Mom's house, because we're loading it up first thing tomorrow morning.
We're hoping to sleep in the new place Monday night, and we're turning in the keys to this apartment on Tuesday. It doesn't feel quite right. We're not just moving to a new home, but a whole new way of living. Next week we'll be sharing a house, pantry, and bills with seven other people. Next month I'll probably have a completely different job, schedule, and budget. It's exciting and good, but really scary.
Supposedly we had a prospective renter coming in at 9 a.m. to view the house, and another at 3 p.m., which is why I was up so early. Neither showed. I suspect trickery on the part of my landlord. But at least we got a lot done.
This morning I woke up at six in the morning to go down to the bakery to train on cake baking and decorating. Got home at noon and crashed in bed for a couple of hours. I need to pack the rest of our kitchen and everything else that isn't going to my Mom's house, because we're loading it up first thing tomorrow morning.
We're hoping to sleep in the new place Monday night, and we're turning in the keys to this apartment on Tuesday. It doesn't feel quite right. We're not just moving to a new home, but a whole new way of living. Next week we'll be sharing a house, pantry, and bills with seven other people. Next month I'll probably have a completely different job, schedule, and budget. It's exciting and good, but really scary.
Tuesday, July 14, 2009
Health Insurance...The Waiting Game
Beany asked me what I'm doing about health insurance right now.
It's hard to answer this question without getting angry or political. So here is my short response:
Since last October I've signed up for and dropped out of a crap employee benefits program as well as personal coverage. Both featured large premiums and unrealistic deductions.
The price of personal insurance is not worth the meager coverage, and I enjoy my job too much to seek one with better benefits. So now I'm playing the waiting game.
I'm willing to do this because health care in the U.S. is about to get a whole lot cheaper. It makes good television to see regressive politicians dragging their feet, whining, and making ridiculous claims against reform, but it's fairly inevitable. They might as well be making a case against desegregation or woman's suffrage. The rest of the world finished this debate halfway through last century.
I do not recommend forgoing insurance if you need and can afford the care. But if you are money-poor, relatively healthy, and careful, I think an interest-bearing emergency fund (perhaps an HSA) is a more sensible place to put your money for the time-being. In the meantime, visit clinics (such as planned parenthood) for annual check ups.
It's hard to answer this question without getting angry or political. So here is my short response:
Since last October I've signed up for and dropped out of a crap employee benefits program as well as personal coverage. Both featured large premiums and unrealistic deductions.
The price of personal insurance is not worth the meager coverage, and I enjoy my job too much to seek one with better benefits. So now I'm playing the waiting game.
I'm willing to do this because health care in the U.S. is about to get a whole lot cheaper. It makes good television to see regressive politicians dragging their feet, whining, and making ridiculous claims against reform, but it's fairly inevitable. They might as well be making a case against desegregation or woman's suffrage. The rest of the world finished this debate halfway through last century.
I do not recommend forgoing insurance if you need and can afford the care. But if you are money-poor, relatively healthy, and careful, I think an interest-bearing emergency fund (perhaps an HSA) is a more sensible place to put your money for the time-being. In the meantime, visit clinics (such as planned parenthood) for annual check ups.
Sunday, July 12, 2009
Carousing and Consequences
Last night I went drinking with co-workers. Didn't spent much money in the process, but Darling spent quite a bit this morning attempting to curb my hangover. He bought cereal, a green smoothie, lemonade, bread, and ice cream in the hopes I would keep something down. The real financial hit was still feeling too queasy to work today.
Not frugal.
At least we've saved the money to pay this month's pr-rated co-op payment.
Not frugal.
At least we've saved the money to pay this month's pr-rated co-op payment.
Saturday, July 11, 2009
Tresure Map
I LOVE Millionaire Mommy Next Door's latest post. I think it's hilarious that a Realtor would insist you should by a house, at a higher price that you are willing to pay, because "you can't paint when you rent." Reminds me of the many overweight, unhealthy carnivores who have told me they couldn't be a vegetarian because "they need lots of protein." Ignorant much?
A while ago I took Millionaire Mommy's advice and created a Treasure Map. Because I rarely buy magazines, and the ones I do are expensive sustainability-related trade mags related to Darling's degree, I didn't feel good about cutting up the ones we have. So I've relied on ones found at the laundromat next door. After a few months (and only about three publications) later, I finally have something that looks like a completed project.
Since I don't have a digital camera, I thought I'd break it down for you:
According to the just-about-completed product, my rich life involves quite a bit of travel. There are images of mountainous tundra, deserts, tropical beaches, and fields of flowers. There is a map with a pin in Madrid, and a painting of Venice. I want to see all these things, visit these places. A large image of a yurt dominates.
Wildlife is also central to my map. There are pictures of wolves, foxes, bees, and buffalo.
Conversely, quite a few pictures represent a comfortable homestead. There are four images of pantries, pictures of preserves and a set holiday table, a candle, books, two beds, curtains, drapes, a lap dog, a toy truck, chickens and worms. These images are mostly old-fashioned and quaint: the beds are made with quilts, the pantries are filled with canned food and antique bread boxes, the curtains are hand-painted.
There are 6 words/phrases: Community, Nature, Experience, At Ease, Grow, and Revolutionary.
Strangely enough, there isn't a single image of money or wealth. There are no people, cities, or houses. There is nothing modern or technological at all.
Where does my treasure lie, then? According to this map, I am seeking a life that is at the same time simple and comfortable, yet unrestrained by distance and geography. Money is not a dominating factor in this life: I don't need a cruise ship or four-wheel vehicle to get where I'm going. Give me a back-pack full of books and the occasional barn to crash in, and I'll be satisfied.
While flipping through one of the magazines, I found a quote by a man named Patrick Dunne, who was discussing his love of old-fashioned dinnerware:
A while ago I took Millionaire Mommy's advice and created a Treasure Map. Because I rarely buy magazines, and the ones I do are expensive sustainability-related trade mags related to Darling's degree, I didn't feel good about cutting up the ones we have. So I've relied on ones found at the laundromat next door. After a few months (and only about three publications) later, I finally have something that looks like a completed project.
Since I don't have a digital camera, I thought I'd break it down for you:
According to the just-about-completed product, my rich life involves quite a bit of travel. There are images of mountainous tundra, deserts, tropical beaches, and fields of flowers. There is a map with a pin in Madrid, and a painting of Venice. I want to see all these things, visit these places. A large image of a yurt dominates.
Wildlife is also central to my map. There are pictures of wolves, foxes, bees, and buffalo.
Conversely, quite a few pictures represent a comfortable homestead. There are four images of pantries, pictures of preserves and a set holiday table, a candle, books, two beds, curtains, drapes, a lap dog, a toy truck, chickens and worms. These images are mostly old-fashioned and quaint: the beds are made with quilts, the pantries are filled with canned food and antique bread boxes, the curtains are hand-painted.
There are 6 words/phrases: Community, Nature, Experience, At Ease, Grow, and Revolutionary.
Strangely enough, there isn't a single image of money or wealth. There are no people, cities, or houses. There is nothing modern or technological at all.
Where does my treasure lie, then? According to this map, I am seeking a life that is at the same time simple and comfortable, yet unrestrained by distance and geography. Money is not a dominating factor in this life: I don't need a cruise ship or four-wheel vehicle to get where I'm going. Give me a back-pack full of books and the occasional barn to crash in, and I'll be satisfied.
While flipping through one of the magazines, I found a quote by a man named Patrick Dunne, who was discussing his love of old-fashioned dinnerware:
I believe in time. I believe in history. I believe in memory. I believe in the memory that ritual evokes. And I believe we live in a society that has become amnesiac, and that this constitutes the most profound form of anarchy. I believe that loving old things is a criticism of the modern world. I believe that loving the rituals of the table is also a criticism of the modern world. I believe in pausing to be a part of what you are doing when you are eating, rather than being this unconscious lump that just goes on disposing of things and being disposable.
Friday, July 10, 2009
Why Minimum Payments Might Not Cover Interest
Lizzie mentioned that it doesn't make sense for a minimum payment not to cover the interest, pointing out that the total amount would become larger. I ought to explain that Darling and I have a rather sporadic payment style with this loan which keeps things from looking normal. It also reflects how good companies are at ensuring you pay the most interest possible over the longest period of time.
If I paid the $125 "monthly installment" - which is what the company calls our minimum payment - every month without variation, about $55 would be knocked off the principle every month. Most of the time I try and send at least $150. When you send more than the monthly payment to a loan company credits your account and reduces the next "monthly installment."
So if I pay $150, they only bill me for $100 the next month. If I send $250, they don't bill me the next month at all. At one point I was so ahead with payments (sending about $200 every month for a while), they didn't want me to pay for another six months. Strangely enough, this was the point that my loan was sold from one company to another without my permission or knowledge. Apparently my over-payments were too rapidly reducing the worth of the original company's investment.
Even though the loan company stops billing, interest is compounding. So if I went that six months without sending a payment, about $420 in interest would have accrued! And when I did finally send a payment, it would be applied to the interest rather than the principle. So if I had six months credit with the loan company and chose not to pay until I received another bill, and then only paid the minimum, it would take another six months before I wold pay off the interest and start chipping away at the principle! So for that year, my loan would in fact have grown rather than diminished.
Loan companies do not benefit from borrowers who speedily pay off their debt. Student loan companies are particularly vulnerable. Someone who pays their credit balance every month will always be a customer, always a potential future asset. Eventually that person will hit a snag, charge an emergency, and pay at least a little interest over time. Someone who pays their college debt is done forever. That's why interest rates are relatively low, it's so easy to get deferments and lower minimum payments, and why credit-industry-driven media insists that student loans are good debt.
If I paid the $125 "monthly installment" - which is what the company calls our minimum payment - every month without variation, about $55 would be knocked off the principle every month. Most of the time I try and send at least $150. When you send more than the monthly payment to a loan company credits your account and reduces the next "monthly installment."
So if I pay $150, they only bill me for $100 the next month. If I send $250, they don't bill me the next month at all. At one point I was so ahead with payments (sending about $200 every month for a while), they didn't want me to pay for another six months. Strangely enough, this was the point that my loan was sold from one company to another without my permission or knowledge. Apparently my over-payments were too rapidly reducing the worth of the original company's investment.
Even though the loan company stops billing, interest is compounding. So if I went that six months without sending a payment, about $420 in interest would have accrued! And when I did finally send a payment, it would be applied to the interest rather than the principle. So if I had six months credit with the loan company and chose not to pay until I received another bill, and then only paid the minimum, it would take another six months before I wold pay off the interest and start chipping away at the principle! So for that year, my loan would in fact have grown rather than diminished.
Loan companies do not benefit from borrowers who speedily pay off their debt. Student loan companies are particularly vulnerable. Someone who pays their credit balance every month will always be a customer, always a potential future asset. Eventually that person will hit a snag, charge an emergency, and pay at least a little interest over time. Someone who pays their college debt is done forever. That's why interest rates are relatively low, it's so easy to get deferments and lower minimum payments, and why credit-industry-driven media insists that student loans are good debt.
Thursday, July 9, 2009
An Imaginary Windfall
When I asked about the cost of living at the co-op, the response was something like this, "Rent is 645 a month, but you'll both have to pay $245 a month for food, utilities, and so on. Every individual pays $245."
So what I heard is that we would owe a monthly $645 for rent, and two $245 payments for bills, food, insurance, etc.
I just found out that rent is not $645. Rent is $400. Every time I asked about rent, people responded with the total rate for a single person, then amended their response to suit a couple. So all this time I was overestimating our monthly payment by nearly $250 a month!
Even though we haven't saved or earned that $245 yet, just knowing we won't need it to cover living expenses feels like such a windfall. I find myself thinking, "what will we do with that much money every month?
I wonder if it's worth re-convincing myself that we're barely getting by, and directly depositing that cash directly into a savings account for a few months, and dealing with it when it's a real "windfall."
So what I heard is that we would owe a monthly $645 for rent, and two $245 payments for bills, food, insurance, etc.
I just found out that rent is not $645. Rent is $400. Every time I asked about rent, people responded with the total rate for a single person, then amended their response to suit a couple. So all this time I was overestimating our monthly payment by nearly $250 a month!
Even though we haven't saved or earned that $245 yet, just knowing we won't need it to cover living expenses feels like such a windfall. I find myself thinking, "what will we do with that much money every month?
I wonder if it's worth re-convincing myself that we're barely getting by, and directly depositing that cash directly into a savings account for a few months, and dealing with it when it's a real "windfall."
Facing Interest Head On
Do you ever stop and look at much interest you pay on your debt? It's heartbreaking!
Because of over-payments I'd made in the past, my latest student loan bill was for only $50. As usual, I sent as much as I could: $80. Despite paying 60% above the minimum, only $2.32 was applied to the principle balance!
Every Friday this month I've arranged to have $20 debited from my account to feed the student loan interest monster. Then when I make our real payment in a few weeks we will be able to make a dent in the total.
I'm using money "rounded off" from my bakery paycheck. Basically, I get $220 a week, but budget for $200 to make the numbers rounder. That $20 is out of sight and out of mind..
Because of over-payments I'd made in the past, my latest student loan bill was for only $50. As usual, I sent as much as I could: $80. Despite paying 60% above the minimum, only $2.32 was applied to the principle balance!
Every Friday this month I've arranged to have $20 debited from my account to feed the student loan interest monster. Then when I make our real payment in a few weeks we will be able to make a dent in the total.
I'm using money "rounded off" from my bakery paycheck. Basically, I get $220 a week, but budget for $200 to make the numbers rounder. That $20 is out of sight and out of mind..
Sunday, July 5, 2009
July 2009 Priority List
It's been ages since I've posted an old-school priority list, and almost as long since Darling and I have even sat down to write one up. July's as good a time as ever to get back on track:
1. Bills, $105/Saved
2. July Co-op Payment, $323/Saved
3. Moving Truck Rental, $100
4. Calculator, $60
5. August Co-op Payment, $910
6. Two Optometrist Appointments, $300
7. Fall History Class, $150
8. Fall Physics Class, $150
9. Family Loan Payment, $100
10. Student Loan Payment, $100
11. Violin, $80
12. Savings for Dentist, $40
13. Discretionary Spending, $100
14. Scanner Printer, $60
15. Savings, $150
16. IRA, $20
1. Bills, $105/Saved
2. July Co-op Payment, $323/Saved
3. Moving Truck Rental, $100
4. Calculator, $60
5. August Co-op Payment, $910
6. Two Optometrist Appointments, $300
7. Fall History Class, $150
8. Fall Physics Class, $150
9. Family Loan Payment, $100
10. Student Loan Payment, $100
11. Violin, $80
12. Savings for Dentist, $40
13. Discretionary Spending, $100
14. Scanner Printer, $60
15. Savings, $150
16. IRA, $20
Net Worth Weigh-In
I'm moving this from my sidebar, but still want it to be available for perspective.
July 2009: -$12,507.80
June 2009: -$13,663.13
May 2009: -$14,169.82
April 2009: -$13,815.88
March 2009: -$13,899.81
February 2009: -$15,627.75
January 2009: -$13,840.65
December 2008: -$14, 484.88
November 2008: -$14,972.61
October 2008: -$12,873.85
September 2008: -13,845.57
August 2008: -$13,776.16
July 2008: -$13,682.62
June 2008: -$12,970.73
May 2008: -$13,516.09
April 2008: -$13,412.29
March 2008: -$13,596.18
February 2008: -$16,665.15
January 2008: -$17,706.82
December 2007: -$18,098.43
November 2007: -$15,745.75
October 2007: -$15,424.12
September 2007: -$15,455.97
August 2007: -$13,793.49
July 2007: -$14,406.57
June 2007: -$14,748.30
May 2007: -$16,158.00
July 2009: -$12,507.80
June 2009: -$13,663.13
May 2009: -$14,169.82
April 2009: -$13,815.88
March 2009: -$13,899.81
February 2009: -$15,627.75
January 2009: -$13,840.65
December 2008: -$14, 484.88
November 2008: -$14,972.61
October 2008: -$12,873.85
September 2008: -13,845.57
August 2008: -$13,776.16
July 2008: -$13,682.62
June 2008: -$12,970.73
May 2008: -$13,516.09
April 2008: -$13,412.29
March 2008: -$13,596.18
February 2008: -$16,665.15
January 2008: -$17,706.82
December 2007: -$18,098.43
November 2007: -$15,745.75
October 2007: -$15,424.12
September 2007: -$15,455.97
August 2007: -$13,793.49
July 2007: -$14,406.57
June 2007: -$14,748.30
May 2007: -$16,158.00
Happy 4th and Reconsidering Liabilities
Wow, it's the fifth already and it didn't occur to me until last night to calculate our net worth!
This was largely the result of having my Mom in town. She dropped in for fourth of July Weekend, so I had to get a couple of shifts covered at the very last minute. Friday I spent $9 taking us all to Barton Springs, then we watched a free performance of The Music Man. Saturday morning my brother and sister-in-law came for breakfast and brought a waffle maker, strawberries, and vegan bacon. I prepared the food and we all played a great strategy board game called Ticket to Ride.
That all sounds very frugal, but we spent an astounding amount of money this weekend. We spent about $130 of my $200 bakery paycheck - and I can't even really tell you what all we bought. We ran to the little store next door three times, popped into Wheatsville for fruit and yogurt, treated Mom to one restaurant meal, and bought groceries from Whole Foods for a barbecue we ended up not having. At least our pantry is fairly well stocked now...
Our assets are up 357.59 from last month, totaling $978.01. This is the first month in several that we actually had rent by the first of the month - though we were of course helped by the reduced rate. I still need to determine what rent will be at the co-op for our 11 days there this month.
I don't feel good about it, but I've made the decision to stop calculating my debt to th HR department into my net worth. Since I can't get a bill or even a record of previous payments, I'm basically picking numbers out of the air and calling them "liabilities". As a result, my records are confused and it makes the entire practice feel futile. While I'd be happy to pay whatever it is I owe my workplace, I'm not going to write them a blank check. I quit making payments a few months ago and have been totally ignored since I asked for a balance (besides a compliment on my new hairstyle). If I ever receive a proper balance sheet, I'll adjust my net worth accordingly. Until then, it seems the only reasonable course of action is to consider the debt forgiven.
Which is not how I wanted to achieve my highest net worth, but so be it. My liabilities, now limited to the amount I owe my student loan company and brother, comes to $13,485.81. Besides the exclusion of the unknown debt to my employers, this debt should not have dropped in June because I did not make any payments.
Because I was making double the minimum payments to the student loan company in earlier months, I technically did not owe them money. But by not making payments, I racked up $70 in unpaid interest. Strangely enough, I only had a $50 minimum payment due this month, which meant they weren't even charging me enough to cover the interest accrued since my last payment.
I made an $80 payment today, then arranged to have $20 deducted from my account every Friday. Most months that won't cover the minimum payment, but it will eat away at the interest before it has time to really compound. Now I can feel certain that my normal monthly payments will go straight to the principle.
My current net worth is -$12,507.80.
This was largely the result of having my Mom in town. She dropped in for fourth of July Weekend, so I had to get a couple of shifts covered at the very last minute. Friday I spent $9 taking us all to Barton Springs, then we watched a free performance of The Music Man. Saturday morning my brother and sister-in-law came for breakfast and brought a waffle maker, strawberries, and vegan bacon. I prepared the food and we all played a great strategy board game called Ticket to Ride.
That all sounds very frugal, but we spent an astounding amount of money this weekend. We spent about $130 of my $200 bakery paycheck - and I can't even really tell you what all we bought. We ran to the little store next door three times, popped into Wheatsville for fruit and yogurt, treated Mom to one restaurant meal, and bought groceries from Whole Foods for a barbecue we ended up not having. At least our pantry is fairly well stocked now...
Our assets are up 357.59 from last month, totaling $978.01. This is the first month in several that we actually had rent by the first of the month - though we were of course helped by the reduced rate. I still need to determine what rent will be at the co-op for our 11 days there this month.
I don't feel good about it, but I've made the decision to stop calculating my debt to th HR department into my net worth. Since I can't get a bill or even a record of previous payments, I'm basically picking numbers out of the air and calling them "liabilities". As a result, my records are confused and it makes the entire practice feel futile. While I'd be happy to pay whatever it is I owe my workplace, I'm not going to write them a blank check. I quit making payments a few months ago and have been totally ignored since I asked for a balance (besides a compliment on my new hairstyle). If I ever receive a proper balance sheet, I'll adjust my net worth accordingly. Until then, it seems the only reasonable course of action is to consider the debt forgiven.
Which is not how I wanted to achieve my highest net worth, but so be it. My liabilities, now limited to the amount I owe my student loan company and brother, comes to $13,485.81. Besides the exclusion of the unknown debt to my employers, this debt should not have dropped in June because I did not make any payments.
Because I was making double the minimum payments to the student loan company in earlier months, I technically did not owe them money. But by not making payments, I racked up $70 in unpaid interest. Strangely enough, I only had a $50 minimum payment due this month, which meant they weren't even charging me enough to cover the interest accrued since my last payment.
I made an $80 payment today, then arranged to have $20 deducted from my account every Friday. Most months that won't cover the minimum payment, but it will eat away at the interest before it has time to really compound. Now I can feel certain that my normal monthly payments will go straight to the principle.
My current net worth is -$12,507.80.
Thursday, July 2, 2009
Stuff Shuffling
I put in a request for paid vacation the week we move. Not only will it be nice to earn a paycheck while packing and cleaning, but it will give me an idea of how the HR department at work is feeling about me (and my as-of-yet-undisclosed amount of debt to them). There is a good chance they will deny the request, but it's worth a try...
Every apartment we've had before this one required a "last month's rent" as part of the deposit. I'm a little anxious about paying a final rent the same month I cover my first mortgage payment (at the co-op, one does not have a landlord, current members are paying back the money previous members spent on the original mortgage. It's actually possible that 20 years from now Darling and I will be "paid back" ourselves). However, we have a reduced rent for our last 21 days here and I expect our first co-op payment to be pro-rated. Need to confirm that, of course.
A couple of days ago a neighbor knocked on my door to offer free furniture, bedding, and other goodies. A few people across the way are moving and opened a temporary free store. I picked up an electric shaver (promised Darling one of those, oh, four years ago), a down blanket, a nice towel, a futon cover (I've been planning on spending about $30 on a new one), a little blue rug, a veggie peeler, a small plastic storage unit, and a framed Matisse poster. I then joined their efforts to finds homes for desks, futons, and couches. By the end of the day I had found a new home for our bed and box springs (I didn't tell the new owner that his will be the set's fourth home) and our beloved comfy couch.
So two of our biggest pieces of furniture are out of the house, now we need only worry about my Grandmother's dining table, large dresser, and a couple of bedside tables that are going to my Mom's house in a couple of weeks.
Every apartment we've had before this one required a "last month's rent" as part of the deposit. I'm a little anxious about paying a final rent the same month I cover my first mortgage payment (at the co-op, one does not have a landlord, current members are paying back the money previous members spent on the original mortgage. It's actually possible that 20 years from now Darling and I will be "paid back" ourselves). However, we have a reduced rent for our last 21 days here and I expect our first co-op payment to be pro-rated. Need to confirm that, of course.
A couple of days ago a neighbor knocked on my door to offer free furniture, bedding, and other goodies. A few people across the way are moving and opened a temporary free store. I picked up an electric shaver (promised Darling one of those, oh, four years ago), a down blanket, a nice towel, a futon cover (I've been planning on spending about $30 on a new one), a little blue rug, a veggie peeler, a small plastic storage unit, and a framed Matisse poster. I then joined their efforts to finds homes for desks, futons, and couches. By the end of the day I had found a new home for our bed and box springs (I didn't tell the new owner that his will be the set's fourth home) and our beloved comfy couch.
So two of our biggest pieces of furniture are out of the house, now we need only worry about my Grandmother's dining table, large dresser, and a couple of bedside tables that are going to my Mom's house in a couple of weeks.
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