Change is Coming!!!

My lease is up the end of August and my moving plans (as of today) will be saving me a lot of money!  I currently pay $920 for rent/month plus utilities of $70 (gas & electric, internet/cable). 

I will be moving into an AMAZING house in La Jolla (about a mile from the beach)!  I will have a smaller bedroom and will share a bathroom but rent will only be $700!  Utilities, split 4 ways should only be about $50! I am so excited…I can’t wait.  Not to mention it is a house, so I will not have to deal with random people walking around my complex all up in my business!

 Not to mention, word is traveling around the office that we (me and a few others who came into the company around the same time I did) will be receiving promotions soon!  That will be some added income that will hopefully come close to covering my monthly car payment!

 My new expenses will be the following:

Rent	700
Utilities	50
Student Loans	600
Car Payment (estimate)	300
Car Insurance/Gym	150
Cell Phone	60
Food	150
Gas	80
Fun	150
TOTAL	2240

I currently bring home $3,050 a month, so this will leave me with $810 a month of discretionary spending.  I am planning on putting $400 into savings a month with $400 remaining for whatever comes about during the month.

I am happy that I will still be able to save a decent amount with plenty of discretionary spending, WHILE taking on a car payment! Woo!!

Mid-Year Update

It is officially the first day of the second half of 2009.  Crazy how time flies these days.  I hit my one-year mark with my company June 23^rd….I get a $250 gift certificate, so I am pretty excited about that.  I’m having doubts about how much longer I want to stay with my company, but I figure I will probably stay through the end of the year at least, and start looking for something different early next year. 

I have also decided that I am going to be moving home as of September 1^st for a couple of months.  It would help my parents out if I paid them rent instead of some stranger, and it would help me out because I will only be paying them $500/mth.  I should be able to save close to $700/mth for these two months which will be a nice cushion!

Also, I have decided to purchase a new car next month!  I am thinking sometime toward the end of August.  I just want to get rid of my car before I have to pay hundreds of dollars for anything else!  The plan is an ’09 Toyota Camry (white).  I am going to start making a spreadsheet of costs/loan figures, etc.  I don’t think I will be able to claim the cash to clunkers voucher, because my car has not been registered and insured under my name for a year.  Which is fine…I should be able to get about $2,500 for it if I trade it in.  That said, I should have about $8,000 to put down, leaving me with ~$300-$325 monthly payment, which will easily be manageable.

Stresssed Ouuut

That’s me right now.  I have a lot going on these next few weeks/months and of course financial s**t is stressin me out.  I feel like I’m a pretty organized person, but when I can’t stick to my budget it stresses me out. 

This past week and a half I had a friend in town.  Neither she nor I were planning on her staying at my place the whole time, but I guess a few of the people she thought she would see more…were busier than expected.  It was fine that she stayed with me, but I felt obligated to entertain her…she was only here for a short period.  Needless to say, I probably spent close to $100 more than I would have, had she not been staying with me the whole time. L F**k.

That set me back quite a bit, and has made me feel a bit stressed about how much money I have to spend in Texas and Vegas for my friends weddings the next couple of weeks.  I am hoping to be able to stick to the money I have set aside in savings for these events, but it is definitely going to be tight.  Ugghhh.

I’m hoping that after fourth of July, when I get paid on the 7^th, I will be back on track.  I should be able to still save a good chunk of change in July (probably more like $400 instead of $500)…but that’s fine.  Things come up. 

Another thing I’m irritated about is my damn savings with FNBO Direct.  They keep lowering their APY…it is now down to 1.5% from 2.2% a few months ago.  I was hoping that I could earn a little extra money with the higher rate, but now it’s pretty pointless to have my money there, because it’s not earning much more than my savings with Chase, and I have to wait 3-4 days anytime I want to transfer money in/out, unlike the immediate transfer with Chase. Irritating.

10 Financial Commandments of Your 20’s

I found this article on Kiplinger called “The 10 Financial Commandments of Your 20’s” http://kiplinger.com/columns/starting/archive/2009/st0107.htm.  I decided I would go through all the commandments and figure out where I stand right now and what I can improve on. 

1. Plan Ahead -  I try to do this as best as possible.  It’s hard with a car that is getting older, but so far, I have always had cash to pay for random expenses that have come up, without getting into any more debt.  I also have goals and plans for how I am going to attain those goals.

2. Live Within Your Means -  I definitely live within my means…I am able to put a good chunk of money into savings.  I am good about not going shopping and spending money on stuff I don’t need….but I definitely will have a random day ever few weeks where I spend money on things I don’t need…probably because I haven’t bought anything unnecessary in a while and sometime it feels good to be able to! Ha ha

3. Make Saving a Habit -  I have definitely been good about doing this.  I typically put between $400 and $500 into savings from my first paycheck every month.  There are some months where I need to use a little bit of that savings money, but for the most part, AT LEAST $400 is saved every month.

4.  Pay off Your Credit Cards – Done January 2009 and I have paid off the monthly balance ever since!  I vow to never have any credit card debt ever again (sounds crazy but I am going to do everything I can not to!)

5. Start Investing -  I have a 401k plan with my company and currently contribute 3%.  I know I need to raise that percentage, but right now I need the extra monthly income to save/pay down debt.  Hopefully within the next couple of years, I will be able to invest some money in the market….I’m not really antsy to get in it these days cuz it’s pretty much in the shitter, but in the future I will definitely want to .  Right now I am happy with my savings earning a little bit every month….better than losing money. J

6. Establish Credit -  I have done this.  The last I checked, my score was around 720.  That was about 5 mths ago, when I had just paid off all of my credit card debt and had just begun making consistent payments on my student loans.  I’m hoping it has come up at least 5-10 points since then…I will need that good score when I want to purchase a new-er car in October! 

7. Have a Marketable Skill -  I have a marketable skill in Accounting and once I get my CPA (hopefully by the end of this year) I will be even more marketable.  There is always a need for financial work cuz no one knows how to manage their money or hold themselves accountable these days!  I’m going to look into learning some more tax stuff to work with that on the side.

8.  Cut the Financial Umbilical Cord – Done quite some time ago.  No financial umbilical cord here!  (Just read my post prior to this one J)

9. Marry Wisely – Not even close…but when I am, I plan to marry VERY wisely!!

10.  Have Some Fun -  This is one I need to work on.  I have good months and bad.  One month I am able to have a balance between paying bills/saving money and spending money on goin’ out/eating out/fun type things, and the next month, I spend a litttttle bit more than I had budgeted for fun.  I will eventually figure it out…it’s just that some weeks are busier/filled with more entertainment than others.

 

Random Thought

It’s a Friday… typically a day of reflection for me.  Sometimes I get overwhelmed with the fact that managing my personal financial situation is going to be a lifetime reality.  I think of where I’m at right now, where I would like to be, and all the things that will come between (good and bad) and my head just starts goin crazy. 

There are a few people I know who have been fortunate enough to have had 10’s of thousands of dollars passed down to them (for whatever reason) and have that to “start out with”.  I can think of many others who have parents who will continue to pay their cell phone bill, car insurance, etc. for YEARS to come.  I get a little jealous, a little angry, a little bitter…and then I snap out of it.  Oddly enough…I wouldn’t REALLY want any of that for myself.  Actually, I don’t need that for myself. 

I know I would be just as financially attentive no matter what kind of financial situation I “started out with”.  I take it as a personal challenge….I love challenges.  I’m going to get to where I want to be thanks to MYSELF and no one else…and that is not only empowering, it makes me feel sad for people who can’t/don’t want to be financially responsible for themselves.

I’m 24 and I have a long ways to go and a lot to learn, but I am excited for the journey.

Wedding Bells

Those bells definitely aren’t for me!  Not ready for that kind of a thing yet.  BUT…Two of my best friends are getting married in the coming month.  The first wedding is the end of June in Abilene, TX (can’t be anything like San Diego, cuz I had never heard of it before she moved there), and the second wedding is July 11^th here in San Diego.  I will be a bridesmaid in both (one dress is gorgeous, the other makes me look like a chick that lives on a polygamist ranch).  I have already paid for a lot of the expenses related to these two events, but I really can’t wait until they are over, so I will really only have saving for a new car to focus on.  I currently have $782 in my WAMU savings account to cover the remaining expenses related to these two weddings ($300 of that must stay in savings as a minimum balance) so really I have $482 to spend.  Some of the expenses I still have to shell out some cash for include:

1) Abilene Trip: Rental Car/gas (~$90), Wedding Gift and Bachelorette Gift (~$70), and    food while in Texas (~$50).  Grand Total $225 (adding in a $15 buffer).

2) San Diego Wedding: Trip to Vegas for Bachelorette (~$100), Shoes (~$40) Grand Total $140.

I am hoping that this $365 is all I will need to spend related to these weddings, but who really knows, right? The brides are always adding somethin’!  Even if I could keep the total to $400, that would leave $382 in my WAMU, easy-access savings account.  I plan to make that balance $500 after the weddings, and then ever last bit of what I can save from then until October will be added to my FNBO direct savings for a new car! Hollllaaaa!

Summer Cleaning

I spent about an hour and a half yesterday going through and cleaning out my closet.  I came up with a trashbag-full of clothes I am going to drop off at charity.  I found myself thinking “why did I buy that…I never even wore it” about probably 10 of the items.  That is a bit ridiculous.  Adding those items up, that was probably well over $150 I spent on clothes to just sit in my closet.  Also, I recognized that a lot of those items were “going out” types of items that I bought ahead of time, and then wasn’t ever in the mood to wear when I would go out.

So irritating.  I have decided I am going to be smarter with my spending on clothes.  Sometimes I will buy unnecessary items just because they are “cheap”.  No matter how cheap they are, it is not a good purchase if they are going to SIT IN MY CLOSET! 

My new strategy:  Find quality items at a good price and keep the receipts.  If I don’t wear the item within a month, return it (given there is a return policy).  I feel like psychologically, this will help prevent me from buying frivolous items that I don’t really need.

My next clothing-type purchases I have planned are: two new pairs of flat or low-heeled shoes for work. (black and brown).  The ones I currently have are over a year old, and need to be replaced badly.  I am hoping to spend no more than $60 total on these two items.  We will see how that goes!  I’m going to check out the NineWest Outlet…they usually have cute shoes for good prices (sometimes do a buy one get one 50% off).  I would also like to get a few nice tops…not super dressy, but not super casual.  (Sounds like I really know what I want huh???)

Relax, Brittany

Lookin’ on the bright side:

            1) I have NO credit card debt (paid that off in full in January ’09)

            2)  I am able to put between $450-$500 into savings each month.

            3) Recently reduced my monthly student loan payments from $710 to $596.

            4) I am 24 years old and have a 401k with an active contribution/match by my employer

            5) Currently have $6,000 in savings

            6) Only need to add $2,000 more to savings for a $10,000 down payment on a new-ish car 

            7) I have my bachelor’s and master’s degrees; currently working on CPA (certified public accountant)

 Dark clouds that loom over head:

            1) Currently have $46,000 in student loan debt

            2) No investments (besides 401k)

            3) Want to save for a down payment on a house within the next couple of years

I have been stressed about financial decisions lately, but making this list has helped me realize that I really am in a fairly good situation financially.  I guess I get overwhelmed at times with the large amount of student loan debt I have, but I am 24 with a master’s degree making ~$55,000 a year, so I can’t really complain.  

I will be able to start throwin’ down a lot of money at that debt as soon as I take care of a few “necessities”.  Also, when I think about the unexpected/large expenses I have had over the past year, they have all been related to my 1997 Jeep.  I am currently saving for a new car (Hopefully a new car will be mine around October 2009! J)  Although I will then have a car payment, I will not have to worry about large, unexpected, out-of-pocket expenses, and the payment should be very reasonable by putting $10,000 down.

Putting this on paper helps to put my mind more at ease.

Student Loans

As far as student loans go…I have come to a realization.  I am 24 years old and have my Master’s degree.  I had zero student loan debt after my undergrad, and am now $46,000 in the hole.  My minimum monthly payments are $678.  I was trying to pay down more than the minimum for the past 8 months, but I have decided to switch it up a bit.

My total student loan debt was at $48,141 as of the middle of February.  Three months later, it is down to $46,690, while only paying the minimum the past 2 months.  So the principal of my debt has gone down almost $1,500 in 3 months.  That is not too bad considering that $48,000 is quite a bit of money for interest to accumulate on.

I have decided to rearrange my financial focus.  I am not going to be trying to pay more than the $678 for the rest of 2009.  I am currently in the need of a new car.  Therefore, I am going to put all I can into savings so that I will be able to put a good chunk of change down, while still maintaining a bit of an E-fund.  I don’t anticipate losing my job anytime soon, so I’m not planning on saving away 6 mths like the financial gurus tell you to do.  My e-fund up to this point has been used on major upkeep to my car, so once I get a new one, there will no longer be $800, $900 payments made every 4 mths, thank God!

I don’t have any credit card debt (or what they call “toxic debt”, what I call “stupid debt”) and don’t plan to take any on in the near future.  That said, if I can get my student loan debt down to around $41,000 by the end of this year, I will be satisfied.  I usually get about a $2,000 bonus at the end of the year, and this year, $1,200 of it will be used to pay down my student loans.  So that extra bit at the end of the year should make up for only paying the minimum the next 7 mths. 

Another factor that allowed me to feel comfortable moving away from paying more than the minimum on my loans, is the fact that any interest I pay will be tax deductible up to $2,500.  So, paying this interest on the loans can actually help me when it comes down to it.  In that case, I am in no rush to pay them back, and will instead focus on other things that are more important at the moment.

Decisions, Decisions

May is looking to be a pretty good month.  I recently changed my withholdings, so my paycheck is about $200 more a month!  I am excited about that…gives me more room to breathe. 

I am trying to think my way through a dilemma that is ultimately up to me, is based on so many things, and can go one of two ways.  I am currently paying $920 for rent, about $20 for utilities, and $55 for cable/internet.  Taken together, that is almost a grand I drop each month on housing and utilities.  My place currently is very, very nice.  I live in a 2 bedroom/2 bath with a roommate.  My room is HUGE…almost too big, although I won’t complain about that.  It has laundry in the unit, underground parking with lots of visitors parking, and is very conveniently located for work and extracurricular activities.

 But I feel like I am not there enough for it to really be worth paying that much.  Not to mention that I really want to buy my own place (a condo) sometime in the next year and a half, so I contemplate why I am spending so much when I could be saving towards a down payment.  If I have to live in a bit shabbier of a place for the next year or so, in order to save, should I do it?

I realize it would only really be worth it if I could save at least $200 a month.  At that point, I don’t know what kind of place I can get for $800 (including utilities) in San Diego that I will be ok living in after living in the place I am currently at.  In addition, I would have to pay for the cost to move (truck, movers, etc.), as well as a deposit for a new place. 

As of right now, I am leaning toward staying in my place.  I hate paying as much as I do, but I don’t know if I want to go through the hassle of moving right now.  If I get serious about purchasing a place, I won’t be paying this much for all that much longer, and I will be able to pretty much deduct my mortgage payments in the future (because I will be paying practically all interest early on- which is tax deductible).

The next few months, many things can change, so I will just have to see where the wind takes me.