Personal Finance Student

My husband's new payraise finally went into effect with this paycheck and it looks like my projection of our takehome was off by about $200/paycheck! I can't believe this! I just checked our bank account (it's direct deposited) and am bummed. I have no idea how I was so far off, usually I'm pretty good at estimating those types of things. I took taxes, 401k contribution, benefits, etc. into account. I think I may have messed up on the tax withholdings though. We'll see. I'm anxious for my husband to bring the paystub home so I can look it over and find my mistake. Ugh, I guess I have to realize that I may need to go back to the drawing board with our budget. Oh well, it's more money nonetheless, just wish I hadn't gotten my hopes up!

I was talking to a friend today and I asked if they were still thinking of selling their home and buying another (upgrading) in light of what's going on in the economy since the "experts" are saying we could see a "deep recession". They are a young couple with two small children and in a 4 bedroom home, just not the best of the best schools and the first will start school in about 1.5 years. Anyway, they said that they were still considering it since their decision "has to do with [their] personal budget, not the economy..."

This doesn't make sense to me. I think the economy, especially of late, has a lot of effect over my personal budget, just look at gas and food prices. We've had to adjust these in the last year to keep up with the prices. It seems like the economy, especially with what's going on right now, would have a lot to say about selling/buying a home right now.

Am I way off or did that comment not make the most sense?

Well, Broken Arrow's entry this morning about Wachovia possibly being at risk for failing got me going this morning to research what'll happen if my bank fails. I bank with Wachovia and since we don't have any savings (not yet anyway, just opened an ING account!), I'm mainly concerned about accessing my account to pay bills. I know that FDIC will cover any money I do have in checking since I definitely don't have more than their limit.

Anyway, from what I've read, my money may be unavailable for several days if something did happen so I am preparing just in case. I have filled my car with gas and we are taking some money out today. We're taking enough to cover our rent (due on the 1st) and to have some cushion. We're fine on food. I am not too worried about anything horrible happening, I think my money will be fine overall, but I feel better knowing I'm prepared and won't be late on any bills. (I don't have any other bills due for about two weeks.)

I just saw on CNBC that Wachovia is in early talks about a deal with Citigroup so who knows, maybe it's good I'm preparing, either way, I feel better now.

I just set up our Freedom Account with ING today (an ING savings account). I think I will keep our Emergency Fund as another subcategory, for the time being at least. I have set up two automatic payments a month to coincide with our paychecks. It will deposit $153 each time to cover the $262/month for auto, clothing, date night/family activities, vacation and gifts as I mentioned in my last entry as well as $44/month to the EF. I know it's not much to the EF right now, but it'll add up and it's a start.

I will also add a $20 Challenge subcategory and add any leftover money from each payperiod (basically, any unused "cushion" that's built into the budget) as well as any "extra" money we get. Adding the $20 Challenge category completes another goal for 2008! Our $20 challenge is officially started! It feels good to have taken some steps in improving our future.

I made an initial deposit of $446. Our health insurance reimbursed us this amount from our FSA, but we haven't paid it out of pocket to the hospital (for baby #2's birth) yet so moving it to this account will ensure we don't touch it until we need it.

Well, my husband and I had another heart-to-heart last night and it went really well. I think we'd both gotten frustrated with each other over finances. I have just finished reading Debt-Proof Living by Mary Hunt that I'd seen mentioned on the blogs several times and told him about some of the things she discusses. I liked her system for dealing with the unexpected expenses throughout the year and we've decided to start our own Freedom Account this next pay period (Sept. 30th). We'll have the following sub-categories to start with:

Auto Maintenance & Repair - $1,000/year
Date Night/Family Activities - $360/year
Gift - $360/year
Clothing - $360/year
Vacation (airline tickets home) - $900/year

This will require a deposit of $262/month which I will automate into an account that is NOT affiliated with my current bank. I do not want to see the balance everytime we log in. I think it will be easier for us if it's out of sight. I have already set up the Excel spreadsheet as the book suggests and am ready to start; it's exciting and feels very empowering to be taking such proactive steps in our financial management.

Oh, my husband also agreed to staying in the apartment for an additional year (to January 2011) in order to achieve our goals of paying off ALL credit card debts and building up a downpayment fund before buying a house. This is a HUGE step for us. I have worried for months about how I'd feel and what we'd do when fall 2009 came and we were still in debt facing the decision to buy a house or not. With our current plan, I project we'll make our last credit card payment in May 2010. Then we can sock away all the money currently going to debt repayment to a downpayment fund June-December 2010.

Any suggestions on creating this second bank account for our Freedom Account? Is it wise to go to a different bank? I'd love to hear any advice from those already doing this; thanks!

I can't believe it, but it looks like I have hit another goal that I set in August. I had hoped to get the credit card debt to under $26k and after looking at this month's numbers, that goal has been achieved! I usually use the current month's statements (before any payments) for the monthly overview, but decided to factor in last week's extra payments this time. (I was too excited to see how that $1,000 payment would affect things!) Anyway, I was very pleased to see that goal achieved.

I don't have my most recent car loan info in front of me and my student loan #2 info is "temporarily unavailable" online, so I just kept the balances from last month. What does this mean? It means my total debt is, in actuality, even less that what appears below. Oh how nice that is!

Current Debt: September 2008

Student loan #1: $2,372

Student loan #2: $1,575

Bank of America #1: $10,281 (Paid $1,000 towards it last week!)

Bank of America #2: $10,084

0% Bank of America #3: $4,579

Chase #1: $269 (Paid off last week!)

Chase #2: $11 (Paid off this month!)

0% Citi: $2,020

Target: $445 (Paid off last week!)

Overdraft: $2,509 (Paid off last week!)

401K Loan 1: $862 (Pay off 07/31/2009)
401K Loan 2: $4,128 (Pay off 07/16/2011)

Car loan: $15,944


DEBT TOTALS

Credit cards & Overdraft: $25,964 after last week's payments!
Student Loans: $3,947
401K Loans: $4,990
Car Loan: $15,944

THE BIG DEBT TOTAL: $50,828

Well, I mentioned in my last entry that we had some car issues to figure out so I was keeping a cushion in our budget this pay period instead of paying down more debt. It's a good thing I did since I just found out it'll be $700! UGH. I had hoped for half that (or less); I hate cars sometimes. Luckily, we'll have it in cash to pay. It just stinks since I'd hoped to have that money to send to a credit card instead.

Well, this is how we've used our bonus so far...

1. Paid off our overdraft - $2500 (we can now check off that goal!)
2. Paid off Chase - $269
3. Paid off Target - $242
4. Extra payment to Bank of America 1 - $1000
5. Charitable contribution

Out of our paycheck we made the following payments...

1. Citicard - $40 (minimum + $10)
2. Bank of America #3 - $65 (0%, minimum + $20)

I still have a cushion in the budget of about $500 which I'll put towards credit cards and savings if it's still available at the end of the pay period. We have a few car issues to find out about before I use it for debt payments, I really don't want to overdraft again.

Today is a happy day!

Well, we got the bonus check yesterday and had originally budgeted for $3,000 after taxes (we were trying to be conservative). We found on last Friday that we'd get more than last year so I again figured conservatively that after taxes, we'd see $4,375 or there about. I was completely off and we got a check for $5,300! Yeah! So, although we had unexpected expenses these last couple of months that has caused us to overdraft, we will be able to pay that off as well as pay much of the other debt we'd hoped to pay off with the $3,000 bonus. That's exciting! We've deposited the check and are now just waiting for it to post....

The yucky part was that we were supposed to see my husband's raise in this paycheck, but it didn't come. His manager is looking into why we didn't get it and I'm sure we'll get that back pay, but I am excited to see that so I can make sure that my new tentative budget will be correct.

I still have family in visiting so I will have to wait until this weekend or next week to do our September monthly overview, but it should be a fun one to do since we're paying off some debt.

Well, I can check off this "goal" as of the first week of September. I have taken about a two week hiatus from the internet as guests have been here and I just haven't felt like getting on. Hopefully, I'll do better as things settle down here with our toddler and newborn.

Tomorrow we should see my husband's new raise in the paycheck as well as his bonus check. We found out Friday the gross amount of his bonus and we expect to see more than we'd budgeted for. Unfortunately, we've had more unexpected debt in the last two weeks. I'm trying to look on the bright side though and that is that the bonus should cover it, we just won't see the "extra" in our budget. Oh well....

I'll also look at the bright side in that both baby and I are happy, healthy and doing well.

Well, my husband's paycheck was direct deposited into our bank account today and it didn't contain his new raise. I'm disappointed; we thought it would start this pay period, but I guess we'll have to wait two more weeks. It would have been nice to have it start today since my mom is coming to visit tomorrow and I'm having baby #2 next week. Actually, perhaps those things will help us save a little bit of money since we won't be going out too much once the baby comes. I'll keep my fingers crossed.

I know I can't really complain, a raise is a raise and I'm grateful. I'm just excited to send more money to pay down our debt. As it is the following is set to go out on the 2nd of Sept.:

Bank of America: $200 (min. $184)
Bank of America: $200 (min. $183, this will get it below $10k balance!)
Chase: $12 (this will pay it off)
Car Payment: $334 (min. only)

We just got an extra $150 check in the mail (from my husband's freelance work). I just deposited it today to cushion our account more this pay period since we've have more surprises this pay period. I hate "surprises".

I don't know if you've heard of Angel Food Ministries before, but basically it's a nationwide co-op that orders a set menu once a month (the menu varies each month though). The order retails for an average of $65, but you get it for $30. There are no qualifications or applications, anyone can order. You can order as much as or as little as you want each month or even every few months, there isn't any commitment or membership to join. It was actually started as a way to help people get a "hand up" during financially stressful times, but anyone can use it and according to the article below, even doctors and lawyers are.

I tried it for the first time in June and figured that whatever I don't use right away will just go into my food storage and so it will help that slowly build too. Anyway, I won't go into it all since all the info is on their website (

www.angelfoodministries.com), but I thought others might be interested since we all seem to like finding good deals.

Here's the link to the article: http://fredericksburg.com/News/FLS/2008/052008/05312008/3837...

Oh, in my food storage research I also came upon this site that actually will give you menus with recipes based on the Angel Food Network's food distribution for the month(http://www.hillbillyhousewife.com/angelfood/).

Here's a review that I sent to some friends after my first month:

Going in and paying for the food was easy, just take a money order or cash. I got a receipt and took that with me when I picked it up a few weeks later. I had about an hour window in which to pick it up and went with a friend who had also ordered for the first time. Everything was already organized into orders and all the frozen/refrigerated items were put together in a trash bag. We got our orders loaded in our car in a matter of about 5 minutes of arriving, all we had to do was give them our receipt.

All of us have been pleased with the food we got. My son, husband and I ate the pizza that same day and hamburger patties that night. We liked everything. We had run out of milk so I used the shelf stable milk that came with the order (it's not powdered milk as I'd guess, but fresh liquid milk in a carton and it didn't expire until March 2009 - yeah for food storage!). I have mixed it with reconsituted powdered milk and put it in the frig. No one had noticed a difference yet and I think it's tasted fine on cereal, etc. We are making two of the steaks tonight and they look good.



All the meat, except for the chicken tenders and chicken legs/thighs, were vaccum packed. The dessert item was a 4 pack of Boston Cream Pudding. I am attaching a photo of everything we got, except the pizza and milk (already used) and the pudding and eggs (I forgot to take them out of the frig).

In a nutshell, I'm happy and so were my two friends. We are ordering again this month. I plan to order for the next two months at least and stockpile a little before the baby comes. If we don't use all the meat each month, I may go to every other month, but three months in a row should give me a good feel as to what we're using. The menu is supposed to feed a family of four for a week.

UPDATE: I have now ordered three months in a row and have only gotten one or two things I didn't really care for or felt like I just couldn't use. Overall, I think it's a great deal and plan on continuing to buy from them.

Have any others used them and if so, what did you think of the food?

I was talking to a friend yesterday about how I make smoothie "kits" for my husband's breakfast in the morning. He is usually rushing and this is a very fast and easy to carry breakfast that he likes. It doesn't cost much and I have made them up to a few days in advance.

I put everything, but the ice cubes, in a large empty yogurt container that I've labeled "Smoothie". I usually put it together in the order that I have written the recipe down, if you put the sugar in first, it will stay at the bottom of the container, etc.

Smoothie Recipe
1 whole fruit (I usually do a banana cut in 2 pieces or some pieces of canned peaches.)
1/2 cup of milk (I sometimes use reconstituted powdered milk, but you don't notice because of all the other ingredients.)
1 cup yogurt (I use flavored yogurt, either strawberry or peach usually.)
2 tablespoons sugar

Put 4 ice cubes and the smoothie "kit" into the blender. Blend on high until smooth (perhaps 30 seconds). You're good to go.

Enjoy!

I have also gotten into making snacks for my husband to take to work so that he won't visit the snack machine as often. It saves money and is good for his health. Here are some of the things I have done:

*Cut up an entire stalk of celery ($1.36) and put into snack-sized tupperware containers, sometimes with baby carrots. He takes another small container of ranch dressing.
*Make brownies, cut into pieces, wrap in syranwrap and freeze. He can take one and it'll thaw at work.
*Cut a cake into pieces and put into small tupperware containers.
*Put almost anything such as jello, pudding, applesauce, etc. into small tupperware containers, it's much cheaper than buying it already done!
*Chips and homemade salsa
*He also keeps a large box of microwave popcorn at his desk. He's become known as the "popcorn guy" because he eats quite a bit of this.

I hope this might help gives ideas to others. I'd love to hear any of your suggestions! My husband has a microwave and refrigerator available to him at work.

Thanks!

I just got back from my husband's office where we got our wills, advanced directive and durable power of attorney for health care documents notarized. YEAH - I can now check off one of my goals on the sidebar. I'm glad we've gotten that done; it brings such peace of mind.

We also have most of the paperwork for a living revocable trust done, but we need to ask someone to be the successor trustee (we have a person in mind, just need to talk to them). We also need to take it to an attorney and have it looked over. Once all that is done, we will feel completely set (for now) with having those important life documents in order.

$49.29 was just reimbursed to our bank account from our flexible spending account (FSA). It took about a month for this to happen so I'm wondering it getting a Consumer Accounts Card would be a good idea. We're about to have a baby (in 1.5 weeks or so) and are funding our FSA accordingly, but don't want to have that hospital bill taken from our bank account for any amount of time. The card seems like a good idea since it is a debit card for the FSA account and can only be used for approved things or it's declined.

Does anyone else use a card to access their FSA? Has it worked well? Is there anything I should know? I'd really appreciate any feedback!

I just changed our 401k contribution to 6% of my husband's salary (that's the max. his company will match) so that it will go into effect on this next paycheck. We expect this paycheck to be the first to show his raise and want this to already be in place, that way we'll still see an increase in our take home, but we won't see it all, which is probably good.

I just got my CafePress.com check in the mail, $40.15. That will be deposited tomorrow and will help cover the things I have gotten for my toddler son. I just visited the back-to-school sales last night to get crayons, shapes/colors bingo, alphabet bingo, markers, paint, etc. The rest will add a little more cushion to this pay period.

Here's our current status for August; not the best. We had a few unexpected expenses that threw off our budget and left us with about $1500 more debt. Luckily yesterday we got our homeowner's insurance refund check in the mail and I have sent a third payment to Target this month ($165) and an extra $100 payment to overdraft.

I'm also bummed to see that my husband's 401k lost approximately $257 this month. I know this is one area that I need to learn more about; I sure don't like to see it going down!

Current Debt: August 2008

Student Loan #1
% V, Outstanding: $2,435

Student Loan #2
4.3% V, Outstanding: $1,575

Bank of America
10.24% V, Outstanding: $10,390

Bank of America
9.90% V, Outstanding: $10,211

Bank of America
0% to 03/2009, Outstanding: $4,635

Chase
15.43% V, Outstanding: $261

Chase
10.99%, Outstanding: $10

Citi
0% to 07/2009, Outstanding: $2,060

Target
22%, Outstanding: $445

Overdraft
18.00% V, Outstanding: $1,365

401K
Loan 1, Outstanding: $937 (Pay off 07/31/2009)
Loan 2, Outstanding: $4,233 (Pay off 07/16/2011)

Car Loan
9.90%, Outstanding: $15,944



DEBT TOTALS
Credit cards & Overdraft: $29,377
Student Loans: $4,010
401K Loans: $5,170
Car Loan: $15,944


THE BIG DEBT TOTAL: $54,501

Total Savings: $0
Total Retirement: $46,750

Well, we finally got word of the raise and it'll add a good $10k to my husband's salary. This is going to make a BIG difference in our debt repayment plan. I'm so excited! We talked today about funding his 401k up to the match (6%), putting $100/month in savings and then putting the rest of the raise completely to debt. We also talked about not changing our lifestyle expectations with the raise so we're on the same page. This is so exciting and such a relief. They'll officially announce his promotion to the department on Wednesday. His yearly bonus is due to come on Sept. 15th and we find out tomorrow if it'll be based on his old or new salary. (Keeping our fingers crossed that it'll be based on the new salary!)

So...here's a breakdown of the new anticipated budget. I expect to see $2550 each pay period (bi-monthly) after taxes and other deductions. I think it'll start on August 31st.

BUDGET

$5100 take home

$850 rent
$40 water
$80 charitable offering
$300 food
$334 car payment
$300 gas
$100 fun money (the money we don't have to be held accountable for, $50 each)
$40 haircuts (we'll rotate in getting this, I need to learn to cut my husband's hair and save a bundle!)
$150 car insurance
$70 student loan #1 payment
$54 student loan #2 payment
$55 cable/internet
$120 cell phones (no home phone)
$200 electric
$515 tithing (charitable offering)
$100 cushion/misc.
$100 savings
$1692 DEBT REPAYMENT ($538 in minimums)

I don't have any special accounts or withholdings to pay for special things when they come up (such as car registration, etc.) but expect to use the cushion or take it from the extra debt money when they come due.

Yesterday I paid the following:

Bank of America: $210 (min. $190)
Chase: $65 (min. $42)
Chase: $60 (min. $41)
0% Bank of America: $56 (min. $46)
0% Citi: $40 (min $30)

We got a credit from Verizon and changed our car insurance coverage so we were under budget for both of these expenses. I'm putting the difference towards a second Target card payment on Monday.

Target: $189 (second payment this month)

I've heard that paying an extra $10-20 above the minimum can make a big difference in paying off credit cards so this is the strategy I'm taking. I'm focusing on the highest interest to pay off first, but everything else will get an additional $10-20 as well.

Happy Weekend Everyone!

It feels like whenever we get ahead a little bit on our debtload, we accumulate more. Thankfully, it is not usually quite as much as what was paid off, but it's still so frustrating! We have my husband's bonus coming up in September and I had hoped to have no overdraft or any new debts that would claim the bonus so it could all go to credit cards, but in August alone we have accumulated about $1500 in new debt. Although we expect the bonus to be quite a bit more than this, it's still incredibly frustrating.

Looking at what we owed in Dec. 2007 (in terms of credit cards only) we were at $33,472. In May 2008, we were at $28,757. Now in August we are at about $29,622! It just seems we always take two steps forward and one step back; I just wish we could keep going forward.

I guess I have to look at the bright side and see that we DO owe less than we did in December and just not think of all the money that we've paid, but has been canceled out due to new debt.

On a good note, we have had some good news on unexpected money coming our way. My husband has done some freelance work and has a check in the mail (not sure how much). I have a check coming from CafePress (about $40) AND we have a homeowner's insurance policy refund check ($492) coming in the mail. Here's to hoping no more debt will creep in so we can put all of this and the bonus to our current load. Oh, best news of all is my husband is getting a promotion...they will probably be negotiating the new salary tomorrow, wish us luck!

I just made up another batch of flaxseed egg substitutes since I want to make muffins later today. Did you know you can use ground flaxseed and water as an egg substitute? I learned this while doing research for my food storage and ways to lower my food costs. I have used it in cakes, muffins, bread, etc. for the last couple of months and have been happy with the results.

Here's the basic recipe to replace one egg:
1 tablespoon ground flaxseeds
3 tablespoons water (or other liquid)
Stir together until thick and gelatinous.

I like to do 1/4 cup ground flaxseeds and 3/4 cups water and let it thicken in the frig. I use 1/4 cup of the mixture for each egg I need when baking. It's good for 2 weeks.

Here is the cost breakdown:
Hodson’s Mill Milled Flaxseed at Wal-Mart
Retail Price: $1.84
2 Tblsp*26 servings/1lb bag = 52 Tblsp
1 egg sub = 1 Tblsp
$1.84/52 = .035 cents/egg sub
.035 cents * 12 = .42 cents per DOZEN

More Important Info to Know
Once you open the flaxseed you should keep it in your frig or freezer. It's also really good for your health; it helps lower cholesterol! Look for the flaxseed in the baking aisle. I found mine right by the flour and baking soda.

Enjoy!

I figured that even though I just started blogging about our finances, I'd post the goals for the rest of 2008. I think goals that you can measure progress against are important so here we go...

1. Pay off overdraft.
2. Get our CC debt to under $26K.
3. Start the $20 Challenge.
4. Be consistent in living our budget - no more overdraft!
5. Get our important life documents in order (will, advanced directive, etc.).
6. Have baby #2. This is one goal I know I'll achieve since I only have 3 weeks left!

I think I'll add these to the sidebar so I see them everytime I get on. I need to post them around the house too for my husband and I to see all the time.

Thanks to MariRDH's Personal Finance Blog for this tip! She posted this information:

80% off at Restaurant.com thru 8/10/08

In honor of 08/08/08, Restaurant.com is running this special.

$25 gift certificates for $2...Sale expires Aug 10 at 11:59pm -
Enter Discount Code: FIRST At Checkout and Hit "APPLY"

SO....

I have just ordered 3 $100 gift certificates and 5 $50 gift certificates to Restaurant.com for only $44! I'll use these for Christmas, birthday and wedding gifts. This way the recipient can choose the restaurant AND there is no expiration date! The people that I'll be giving these to like to eat out and travel so even if there are not a ton of restaurants in their home area; I feel confident that they'll enjoy this while on vacation.

This is so great! Thanks again MariRDH's Personal Finance Blog!

*No expiration date applies to Restaurant.com Store Credit Certificates only. See comments.

OK, down to the nitty gritty. I have been keeping a personal record of our debt status for a while now. Here is the last one I did for July. Since I did this, we have transferred a some CC balances to 0% cards, but have also charged about $200 to our Target card and have about $700 in overdraft (UGH), but hey 8-8-08 is our turn-around day and things are going to get better from here on out!

Current Debt: July 2008

Student Loan #1
% V, Outstanding: $2,567

Student Loan #2
4.3% V, Outstanding: $1,623

Chase
15.43% V, Outstanding: $4,664

Bank of America
10.24% V, Outstanding: $10,502

Bank of America
9.90% V, Outstanding: $10,315

Chase
10.99%, Outstanding: $2,102

Target
22%, Outstanding: $0

Lowe’s
22%, Outstanding: $0

Home Depot
Outstanding: $0

Overdraft
18.00% V, Outstanding: $0

401K
Loan 1, Outstanding: $1,012 (Pay off 07/31/2009)
Loan 1, Outstanding: $4,336 (Pay off 07/16/2011)

Car Loan
9.90%, Outstanding: $15,944


DEBT TOTALS
Credit cards: $27,583
Student Loans: $4,190
401K Loans: $5,348
Car Loan: $15,944

THE BIG DEBT TOTAL: $53,065

Well, I have been lurking among your personal finance blogs for a while and have really enjoyed seeing the sense of community and encouragement shared. I am like some others here; I am in debt, but desparately wanting to get out and build my financial resources. I hope this blog will help keep me on track as I share our financial details with others. I have been too embarrassed to share these with anyone other than my husband.

My husband and I feel like yesterday, 8-8-08, is the "new beginning" to our personal financial story. We are both finally on the same page, we have the same goals and agree on what we need to do to get there. We are both committed and 8-8-08 will go down in our personal financial history as a day of great importance.

I'll be posting more information soon as we get down to the nitty gritty.

Thanks for everyone who's shared their stories. I have enjoyed reading your blogs and have now found the courage to share mine!