Women in Red Racers - West Region

[sealy]

Rocky will be still be able to see these pages?
If not I will need some time to copy my info
into the new page.  Looking forward to new
consolidated page.

[speechchick71]

Hi all, popping in from the South board to post this. I though it might be interesting for those who want to learn more about planning their finances:

I don't know if any of you know about this but there are free college courses you can take for information purposes only (not credit although I think you can get some sort of certificate). If you google "coursera" you'll get the website and see all of the courses available but I thought this might be a good topic for those of us on these boards. It's being offered from University of Florida and, again, it's FREE. You don't need to apply or anything and you're not considered a student. This course is on personal and family financial planning. It doesn't start until Aug 20 and I think it's 7 weeks long. You create an account and then log in for the readings/homework/presentation. I did (part of) one on Thomas Jefferson and it was really interesting. You don't need to do the homework although in this case it might be a good idea.

Here is the link to the class: www.coursera.org/course/uffinancialplanning but again, if you just go to coursera.org and do a search, you might find other courses that are interesting to you!

[esteroid]

Greetings, everyone! I haven't been participating in the message board for a long time, but I want you to know your encouragement still follows me. I can't remember when I posted in the forum, but it's been a couple of years, anyway. I check back every few months to see that you're all still doing the good work of getting rid of debt and to draw from your inspiration!

I, too, have been hard at work, following your stellar examples. Although the total debt difference from my very first post isn't that huge, in the interim I paid off the car loan listed (old VW bus I bought for summer fun. Yes, it runs, too!) and bought a new computer on credit (one year to pay with no interest, and I made it). I refinanced my home to save 2.5 percentage points and lowered my house payments by about $200. I finally gave up on the 20+-year-old, 250,000 mile car and bought a new one, but I had $10K to put down so they gave me a really good interest rate on the balance. I have an emergency fund, not as large as I'd like but it continues to grow. All is well, your lessons stuck! I still haven't achieved any of those big $$ milestones, but I'm within $1,500 of having the credit cards completely paid off and that's huge for me. I have gone from credit card debt of 13,163.67 to 1,581.81, which is a drop of almost $11,582, and I am proud of that!

Thank you for being here!

Esteroid: (Nov. 4, 2009 $14,663.67)
CC#1 (BOA) $7,130.90 Interest rate = 10.24%
CC#2 (AKUSA) $6,032.77 Interest rate = 10.5%
Car loan $1,500 Interest rate = 6%
TOTAL $14,663.67

Esteroid: Aug. 11, 2014
CC#1 (BOA) $989.12 Interest rate = 10.24%
CC#2 (AKUSA) $592.29 Interest rate = 10.5%
Car loan $8,649.69 Interest rate = 1.89%
TOTAL $10,231.10

[Rocky Mtn Saver]

Congrats, esteroid, on reducing your overall interest rate by a lot!!  Even though you may still have some debt, you're paying soooo much less for it that it makes sense.  That's awesome improvement! 

[snapdragon]

UPDATE: snapdragon 8/15/14 $17,276.86 (8/6/12 $28,849.00 WU 79,80)

Going in the right direction. 

[sealy]

Aug 11, 2014 8:22:10 GMT -5 speechchick71 said:

Hi all, popping in from the South board to post this. I though it might be interesting for those who want to learn more about planning their finances:
Here is the link to the class: www.coursera.org/course/uffinancialplanning but again, if you just go to coursera.org and do a search, you might find other courses that are interesting to you!

THANKS speechchick71

[ambellamy]

Its been so long since I've posted.... but we have awesome news... We're pregnant!!!!

Paying down the mortgage is taking a slower turn since we are spending money to make our condo more user friendly and baby friendly (think lots of Ikea built in storage units)... but I wanted to come by to let everyone know we are still trucking along.

Ambellamy(2): 8/21/2014 $108,225.73 (10/03/2009 $127,176.40)  

$18,950.67 Paid     
$108,225.73 left to go! 

[Deleted]

Great suggestion Rocky Mtn Saver!  I am working on building up my EF right now, but once that is complete I'll send all extra money to CC#2 to get that paid off.  My fiancé said he would pay of my CC#3 in December (before I have to start paying interest on that card) and I could just make a monthly payment to him at 0% interest, which will be nice.

On that note, here is my update:

amiteraus: 8/28/14 $25,934.51 (6/26/14, $35,191.85, W80)

Debt	Interest Rate	08/28/14	06/26/14	PTD	% PTD	Final Payment Date
Medical Bill #1	12.00%	$860.42	$1,113.29	$252.87	22.71%	--
Medical Bill #2	0.00%	$692.66	$1,192.66	$500.00	41.92%	--
Medical Bill #3	0.00%	$378.71	$578.71	$200.00	34.56%	--
Auto Loan	6.90%	$3,696.01	$3,881.71	$185.70	4.78%	--
Student Loan	3.88%	$0.00	$7,881.60	$7,881.60	100.00%	7/22/2014
CC #1	13.24%	$6,737.57	$6,859.96	$122.39	1.78%	--
CC #2	16.99%	$11,711.89	$11,756.67	$44.78	0.38%	--
CC #3	0% until Jan 2015	$1,857.25	$1,927.25	$70.00	3.63%	--
Total	--	$25,934.51	$35,191.85	$9,257.34	26.31%	--

[sealy]

My goals for the next 6 months:

1. Be at least one month ahead on my house payment.
2. Have my car paid off.
3. Have CC #1 out of the double digits.
4. Have at least $1000 in my EF.
5. Lose weight by being healthier.
6. Relax and enjoy being me.

one down.  I plan to put $1000 per month in
my savings without touching it and also my
extra duty checks will go in my savings account
too.

[seriousthistime]

I'm popping in from the Midwest Racers to ask if anyone here is familiar with the Carson City/Reno/Sparks, NV area.  I'm considering moving there and would love to know the pros and cons of the area.  

I have kids living in Vegas and Silicon Valley so I want to be closer to them.  Moving time is a year or two down the road but it never hurts to plan. 

Any advice would be welcome.  I want to live in a place with low humidity, milder winters, and temps in the 80s/low 90s during summer days, dropping into the 60s at night.  I want mountains and water, so being close to Lake Tahoe seems ideal. Oh, and reasonable cost of living.  

Thanks in advance. 

[Rocky Mtn Saver]

Aug 30, 2014 20:49:36 GMT -5 sealy said:

My goals for the next 6 months:

1. Be at least one month ahead on my house payment.
2. Have my car paid off.
3. Have CC #1 out of the double digits.
4. Have at least $1000 in my EF.
5. Lose weight by being healthier.
6. Relax and enjoy being me.

one down.  I plan to put $1000 per month in
my savings without touching it and also my
extra duty checks will go in my savings account
too.

Wow, your situation must have changed greatly recently!  That's a huge amount to now have available after all expenses and debt paydown, to put into savings!  What kind of time frame are you planning on getting rid of your +$10k of cc debt?  I don't see where you've updated your debt paydown on that in a while, so I was curious. 

[sealy]

Rocky I've had it during the year. I just always end up spending it on something I don't even remember what and continued to use my card. On top of that I don't get a regular check during the summer and I don't prepare for the summer so I usually end up using a CC during the summer. This year I plan to break that trend. I will be better prepared this year. I also will be making quilts and selling them. I have plenty of fabric. I am going to be gazelle intense. I want to be out of debt this time next year. I'm planning on going to Tennessee to do my debt free scream.

[Rocky Mtn Saver]

Sept 3, 2014 11:03:18 GMT -5 sealy said:

Rocky I've had it during the year. I just always end up spending it on something I don't even remember what and continued to use my card. On top of that I don't get a regular check during the summer and I don't prepare for the summer so I usually end up using a CC during the summer. This year I plan to break that trend. I will be better prepared this year. I also will be making quilts and selling them. I have plenty of fabric. I am going to be gazelle intense. I want to be out of debt this time next year. I'm planning on going to Tennessee to do my debt free scream.

Good for you for working to break cycles! 

[sealy]

My races and issues

sealy(1): 09/06/14 $16,219.69 (2/1/13 $30,372.61 W68) difference $14,152.92

sealy (2): 09/06/14 $308,315.67 (12/04/12 $321,652) difference $13,336.33


I still have 2 more CC that I haven't raced one because I bought my son a laptop
so he could do his college homework. The other because I didn't prepare for summer
and reused CC#2.  Their totals are $2,636.10 and $472.97

Lesson learned but I am going to stop this cycle.


I've listed my bills below

1. cable $143
2. cellphone me $120 son $50
3. water $66
4. electric $4.00 we have solar will get an accumulated bill in Dec. which may be high due to me being hot and running the ac.  
5. gas $20 may be higher in the winter
6. food put $300 in an envelope on the 1st still have $52.42 left over.
7. car gas I don't know I just fill it up when it's empty
8. owe school cafeteria about $9 for lunches
9. dog food about $60 (2 dogs usually I buy 2 bags a month and sometimes will give them canned dog food as a treat)
10. fast food I don't know but I'm sure it's a lot.  I have printed out my bank statements from Jan to Sept. I'll be going over them soon.
11. movies less than $40 per month
12. netflix $7.99 will keep this going
13. doctor copay $10 each for my kids when they go this isn't a regular payment and $20 for me again not regular
14. mortgage $2310.65
15. car insurance $120
16. lawn $45

That's all I can think of at the moment. 

[murphath]

seriousthistime:
Re your question about Carson City/Reno/Sparks area.  DD1 lives in Reno but works in Carson City.  Weather in summer is very HOT--too hot for my blood, but if you're moving from a hot/humid area, it will probably be okay for you.  DD likes proximity to skiing in the winter.  It does snow there, too. No state taxes in Nevada so that's a plus.  Housing is also less expensive.  DD paid $178,000 for a 3 bed/2 bath home that would cost @ $450,000 in our part of Calif..  The Silicon Valley will be at least a 4-5 hour drive from that part of Nevada.

We only go to visit DD in Spring and Fall.  Just too hot in summer and too cold in winter.  She doesn't drive home during winter, either.  There can be a lot of snow requiring chains.  We are going up in Jan. when she and fiancé get married but will take the train.  That's a nice way, (albeit, long) to travel to/from there.

DD's fiancé was born in Reno which is why they live there.  It definitely would not be her first choice of locations--she much prefers the coastal area of San Diego.  But he likes the desert and all the activities it offers: dirt biking, shooting, etc..

[Rocky Mtn Saver]

Sept 6, 2014 21:03:51 GMT -5 sealy said:

My races and issues

sealy(1): 09/06/14 $16,219.69 (2/1/13 $30,372.61 W68) difference $14,152.92

sealy (2): 09/06/14 $308,315.67 (12/04/12 $321,652) difference $13,336.33


I still have 2 more CC that I haven't raced one because I bought my son a laptop
so he could do his college homework. The other because I didn't prepare for summer
and reused CC#2.  Their totals are $2,636.10 and $472.97

Lesson learned but I am going to stop this cycle.


I've listed my bills below

1. cable $143
2. cellphone me $120 son $50
3. water $66
4. electric $4.00 we have solar will get an accumulated bill in Dec. which may be high due to me being hot and running the ac.  
5. gas $20 may be higher in the winter
6. food put $300 in an envelope on the 1st still have $52.42 left over.
7. car gas I don't know I just fill it up when it's empty
8. owe school cafeteria about $9 for lunches
9. dog food about $60 (2 dogs usually I buy 2 bags a month and sometimes will give them canned dog food as a treat)
10. fast food I don't know but I'm sure it's a lot.  I have printed out my bank statements from Jan to Sept. I'll be going over them soon.
11. movies less than $40 per month
12. netflix $7.99 will keep this going
13. doctor copay $10 each for my kids when they go this isn't a regular payment and $20 for me again not regular
14. mortgage $2310.65
15. car insurance $120
16. lawn $45

That's all I can think of at the moment. 

sealy, If you want some brainstorming from the other Racers, we'll also need to know:

1.  Car payment
2.  Minimum payments on all debts
3.  Monthly guaranteed take-home pay
4.  Monthly average overtime or second job pay.
5.  Savings amount in your EF. ($1000?)


So far, you're at $3600 monthly expenses, 65% of which is your mortgage PITI.

[sealy]

Thanks Rocky Mountain.

If you want some brainstorming from the other Racers, we'll also need to know:

1. Car payment:. $276.93
2. Minimum payments on all debts: so far they are $25, $258, $25,
3. Monthly guaranteed take-home pay: $5,700
4. Monthly average overtime or second job pay:. ~ $700 - $1,000
5. Savings amount in your EF. ($1000?): 1,420.60.


So far, you're at $3600 monthly expenses, 65% of which is your mortgage PITI.

[Rocky Mtn Saver]

Sept 8, 2014 10:39:26 GMT -5 sealy said:

Thanks Rocky Mountain.

If you want some brainstorming from the other Racers, we'll also need to know:

1. Car payment:. $276.93
2. Minimum payments on all debts: so far they are $25, $258, $25,
3. Monthly guaranteed take-home pay: $5,700
4. Monthly average overtime or second job pay:. ~ $700 - $1,000
5. Savings amount in your EF. ($1000?): 1,420.60.


So far, you're at $3600 monthly expenses, 65% of which is your mortgage PITI.

Okay, so adding up all your expenses as listed, including car payment and minimums on all debts, you should be seeing this:

$5700 minimum monthly pay
$4200 minimum monthly expenses (I estimated gas and copays but not fast food)

$1500 leftover before OT or $2200 to $2500 after OT

The question you need to determine is where the leftover money is currently going.  Even though your PITI is higher than recommended (40% of minimum net pay), your fixed expenses are actually not terrible (~75% of net).  That's great news!!

But, if you have between $1500 and $2500 left over every month after expenses, why are you carrying $472 debt for a laptop for your son?  This is just an example, but why did you break out a credit card and why does it still have a balance, when you have $1500 minimum for spending miscellaneous in your budget every month?  This is the kind of thing that I think you need to focus on. 

Perhaps it might help you to analyze how accessible your safety nets are.  Have you permanently destroyed all your credit cards that you can use?  Really, permanently destroyed them, perhaps even closed them?  I don't think you can afford to have one in your possession right now. 

Also, have you considered moving your Summer savings account to an institution that's not connected with your other accounts?  I find that I save much better when my targeted savings account at a CU that has no debit card, no checking account, and is not located physically within a 10 mile radius of me. If I can't access it easily, it hardly ever gets touched. 

You mentioned using an envelope for grocery expenses.  I suggest you might consider using envelopes for all your expenses, including spending cash, for the foreseeable future.

[sealy]

Rocky thank you so much for helping me
I tried to save my funds but just haven't and
haven't been able to find out where it's going.
I know that right now my issue was the fact
that I didn't save for summer and needed to pay two
mortgage payments instead of one. I have two online accounts that I can put money in. I want to turn my boat around.
I put $1000 away but everything seems to come and take it away. I am determined to get out of this hole this school year. And be better prepared for summer. The $472 is a best buy card that allows small payments for at least a year if you charge over $400

[Rocky Mtn Saver]

Sept 8, 2014 13:58:47 GMT -5 sealy said:

Rocky thank you so much for helping me
I tried to save my funds but just haven't and
haven't been able to find out where it's going.

Envelopes.  Seriously, envelopes.  I've done it and it works.  Divvy your cash into category and/or weekly envelopes.  Everything you spend comes from an envelope except bills you pay online or via checks in the mail.  Receipts go into envelopes when cash comes out.  No debit cards, no credit cards, no taking from savings.  With enough motivation, you will figure it all out. 


I know that right now my issue was the fact
that I didn't save for summer and needed to pay two
mortgage payments instead of one. I have two online accounts that I can put money in. I want to turn my boat around.
I put $1000 away but everything seems to come and take it away.


I suggest that you figure out what you will need extra for next summer (how much were you short this summer?), divide it by the number of months until then, and put an equal monthly amount into a separate savings account (in a different institution if you need to) earmarked solely for next summer's expenses.  Do not link the account to anything nor have a debit card.  Then go back to focusing on your current budget issues. 


I am determined to get out of this hole this school year. And be better prepared for summer. The $472 is a best buy card that allows small payments for at least a year if you charge over $400

[sealy]

Rocky I will need at least $3,000 that's if I pay one month extra on everything.

[Rocky Mtn Saver]

Sept 9, 2014 0:21:24 GMT -5 sealy said:

Rocky I will need at least $3,000 that's if I pay one month extra on everything.

Okay, that's completely do-able!  $3000 divided by, what? 7-8 months?  You sock away $400-$500 monthly for next summer, separate from everything else and unaccessible until then.  You should be easily able to use part of your OT money for that and still have plenty leftover to put into your regular savings each month. 

That means that you'll still have the $1500 extra roughly every month to square away your current month's budget problems. 

[snapdragon]

I still have 2 more CC that I haven't raced one because I bought my son a laptop
so he could do his college homework. The other because I didn't prepare for summer
and reused CC#2. Their totals are $2,636.10 and $472.97


Sealy - Is your son paying you back for the purchase of the laptop? I know that when I started CC I bought my own Toshiba and made payments on it which was $2400 in 1995/6. Hopefully you are being paid back. I know for sure I used my computer for more than just school. So I would assume would he.

[sealy]

Snap - He isn't going to pay me back.  It was a birthday present and he is still in high school.

Rocky - I paid $200 on my best buy I'll be using my extra check to pay it off.  I won't put it
             in the EF this time because I don't want to dip in the $1,000 EF or use any card.  I am due  
             to get $700 on this extra check.  

[Rocky Mtn Saver]

Sept 9, 2014 22:37:20 GMT -5 sealy said:

Sounds great!  Not everyone has an extra $700 to work with every month! 

Okay, so $472 on the Best Buy card.  Then you need to destroy any physical card they gave you. 

Then you'll have $227 left to start your "Next Summer Fund".  I would suggest adding that goal to your WIRR Savers reporting.  In October, you'll be starting to put $400-$500 into it monthly as soon as you get paid.  Don't wait.   

Now, how's your budget plan going for September and October?  Did you give any thought to using envelopes? 

[sealy]

I actually took my car in for service and paid cash. I went in for an oil change. I was prepared for that but I also needed a tire. After talking to the sales guy he went through my file and discovered I had a warranty so my tire was prorated. I was able to get another one that was better discounted.

[ses]

I have been lurking the past few months getting inspiration from you all.  I usually hang out on the CS/NS thread but this summer I had some rather expensive surgery and have been working hard at getting everything paid down without invading my savings.  Thank you all.

Sealy I read some of your posts and remembered when you first started and were so stressed about everything.  I'm glad to see the back taxes are all paid off, as I remember I was kind of tough on you about them.  I am totally amazed at your progress!  Especially your grocery budget when you are feeding a teenage boy.

I looked over your expenses and have a few ideas.  Here are some observations, and a few questions,too.


2311     Mortgage
   45     Lawn

   66     Water
   40     Gas
  170    Cell phones
     4    Electric

  120    Car Insurance
  227    Car Payment
      Gas, Oil and repairs

  143    Cable
     8    Netflix
    40   Movies

  285    Debt #1
   25    Debt #2
   25    Debt #3

 300     Groceries
    9     Cafeteria
  60     Pet food
      Fast food

   50    Medical-Co-pays and meds

3958    Listed Expenses


Income
  primary job
  (5700 x 10 = 57,000 /12 mo) =4750/mo
  secondary income  700-1000/mo


I suggest you open an account at a CU or ING (that is not too easy to raid for other things) and call it your Summer Fund and deposit 1000/mo.  This will automatically provide 2 months income for summer.  This is only one payment (to yourself) for summer expenses.  No more panic to get ahead a month or two on specific bills--the money is already there.  And no using CCs.

This makes your monthly income 4750--still more than your listed monthly expenses.

Now start an account for Automotive Expenses with your "former" car payments ($277). By the way congrats.  This will cover your gas, oil and repairs.  You might want to use a debit card designated ONLY for automotive expenses or a prepaid CC that you refill monthly.  This will also build to become a down payment for your next car.  Just planning ahead so you will not have to use your emergency fund.

Then open an account for Medical Expenses and deposit 50/month.  Let it grow and hopefully you never have a need for it.

Now for your last account, this is for your Emergency Fund.  An emergency fund is for "emergencies"!!!  Not Summer expenses, Summer comes every year.  Not medical expenses, you have kids these expenses are a given.  I don't remember how many kids or their ages.  This is where your secondary income goes.  If you throw about 600-700 a month you will be close to your $10,000 within about 15 months or the end of 2015. 

Monthly Income:
     5700
    -1000 Summer Fund
     4700
    -3958 Listed expenses
      742

You have 742 dollars not allocated each month.  I agree that the envelope method is a great way to keep track of "unknown" expenditures.  Just keep all receipts no matter how small, especially the small "leaks".  
I noticed you have not mentioned clothes, personal care, allowances or gifts.  Do your kids get allowances, do you get an allowance- a little bit of money just to blow, Starbucks or whatever.  Birthdays and Christmas come the same time every year, plan for them.


Now to step away from the budget for a moment.  You have come so far, but I think your mind set is still back in panic mode where your money, or lack of, ruled your life.  You now need to rule your money.  You now know how to say NO, not that we are all successful all the time at that.
One way for me to rule my money is to sit down the day after my paycheck is deposited and pay all my bills.  I do most of them on-line, only a couple are still a paper check.  Whatever is left is what I have.  Treat your Summer Fund, Automotive Fund and Medical Fund as just another bill you HAVE to pay.  Pay the amount you picked, 600-700, to your Emergency Fund.  If there is any unspent money before the next payday make an extra payment to your CC.

You will have noticed I have not mentioned the fast food issue.  Why do you get it- too tired to cook, the kids clamor for it, its just there.  I learned to make some of my favorites (only healthier) and include it in my menu plan.  Helped me break the habit.  I also try to have a go to "I don't even have to think" meal in the pantry for those days I don't  want to admit my house even has a kitchen.
Oh, I wanted to ask if you can get a prepaid lunch card for the cafeteria for those days you didn't manage to pack one?  We all have those days so accept them and have a plan.
Another question.  About your electric bill (solar--how I envy you) after you have your settle up payment in December can you calculate what a fixed(average) monthly payment would be then pay that amount every month until next years settle up payment?  I'm all for evening out payments through out the year whenever I can. 


Hope some of this might help or give you something to think about.  Sorry for such a long post.



           

[murphath]

sealy:

Are you a teacher?  Is that why you are on a 10 pay schedule?  Lots of my family members have been teachers and their districts allowed them to opt for a 12 month pay schedule.  Do you have that option?  If so, I'd suggest you changing.  It certainly alleviated the summer money stress for my fam/friends.

[snapdragon]

UPDATE: snapdragon 9/15/14 $16,764.27 (8/6/12 $28,849.00 WU 79,80,81)


Another step. So very stressed right now. Life enjoys giving people wedgies.

[startsmart]

UPDATE

startsmart: 9/16/2014 $429.11 (3/19/2008 $14,157.31 W155,695)