TeacHer Finance

The Pros and Cons of Teaching, Financial and Otherwise

2012-01-29T08:51:00.002-05:00

I mention all the time that I really love my job. And it's true, I do. I find teaching challenging, intellectually fulfilling, and emotionally rewarding.

But it isn't a career for everyone. Even as a teacher who loves the profession, there are days - sometimes weeks - that my job is exhausting, frustrating, and maddeningly bureaucratic.

In my real life (you know, not on the Internet :) a lot of people ask me about teaching, many of whom are interested in pursuing it as career change. I try to be as honest as I can - depending on how much time we have and what kind of day it's been, of course - but I wanted to share the typical teaching pro/con list I run through. Some of these points revolve around finances and some don't, but I think this is a decent break-down of the profession, at least as I see it.

Teaching: Pros

+Obviously, your whole day is spent shaping the hearts and minds of the next generation. This is something to be taken very seriously, but for the most part it's a wonderful position to be in.

+Excellent health insurance. Excellent.

+A predictable, "normal" schedule. No weird midnight shifts.

+In most states, a pension. Even if it won't amount to much, it's a better pension than most Americans receive. Which, of course, is none.

+A lot of opportunities for extra income, at least in high schools.

+For the most part, stability. This depends on the area of the country you live in, but generally I don't worry about getting laid off.

+Autonomy. Again, this is somewhat dependent on the school you're in, but teachers have a pretty large degree of control over how to teach their material.

+The physical work environment. I have a large, bright, cheerfully-decorated classroom. I can't imagine getting a "promotion" and being stuffed into a tiny cubicle at the district's central office.

+Spending my day serving the public, as opposed to serving shareholders.

+Summers off. I had to say it, even though I've never actually taken a summer off.

Teaching: Cons

-The pay. Obviously.

-The inability to get a raise for performance, at least in most districts. It's very frustrating that I get paid the same amount as the teacher in the next classroom who reads the paper while the kids do nothing all day, and there's nothing my principal can do to reward my hard work.

-The low-grade lack of respect that American society has for teachers. It's not overt, but it's there.

-The never-ending social nature of the job. All day, every day people are around you, talking to you, and you're expected to give cogent responses. I'm a very social person, but even I find it exhausting sometimes.

-Bureaucracy. I teach in a large district so this is especially problematic, but even small districts can be frustratingly ridiculous and slow when it comes to decision-making.

I could probably go on, but these are the big points I make to people who ask about the good and bad of public school teaching.

How does this list compare to your job's pros and cons? Teachers, what did I miss?

Voting Ends Today!

2012-01-26T10:00:00.001-05:00

Just wanted to put in one last plug to vote for me for "Most Fascinating Blog" over at Online PhD Degrees. Voting ends today at 11:59 PM.

If you have a chance to head over and cast your ballot for me, I'd really appreciate it!

Right Now: My Favorite Money Saving Strategies

2012-01-24T17:33:00.002-05:00

A few weeks ago, one of my favorite fellow-PF bloggers Jessica over at Homeowner By 30! wrote a great post about how she's really evolving financially. I feel the same way. When I started blogging I was desperately in debt. I stressed out every month about being able to pay all my bills, and I never felt like I would be able to make progress with my finances. I'm not as much of a financial rock star as Jessica, but I'm in a way better place now. My only remaining debt is manageable. My monthly cash flow is plenty to cover my needs and most of my wants. I'm slowly building savings.

In other words, I've made progress.

And as I continue to make progress, my favorite money-saving strategies change. Partially this has to do with beefing up my frugal muscles, partially this has to do with what I'm interested in at the moment. So I thought I'd share my favorite money-saving strategies - for right now at least:

1. Buy used

I'm really into buying used right now. Appliances (Craig's list), clothing (thrift shops and Plato's Closet), and furniture (also Craig's list) offer great deals on gently used products. Aside from the money saved, there are other reasons I like buying used. First, there's the challenge, the "hunt." It's fun to seek out just the right item at just the right price. Second, there's the environmentalist aspect. It's much more Earth-friendly to buy used than new - and to sell or donate your old stuff as opposed to throwing those items out. Third, I find that by buying used you end up with really unique items. All in all, I'd say buying used is the ultimate win/win.

2. Stack coupons on top of store sales

Holy moly can you save a lot of money buying stuff this way. This strategy takes a bit of effort - I consider it a PF blogger best practice to check the Internet every so often for both coupons and big box store sales to see what matches up, but every so often you can just stumble into an awesome deal. Last weekend I went into Target to get some face wash and decided to check on Lean Cuisine prices. Turns out, they were seriously on sale and I had coupon in my wallet. I ended up getting eight lunches for about $1 each!

3. Double every recipe you make

I like to cook, but this school year I found myself eating out quite a bit. I was able to identify the reason: I kept coming home from school tired and hungry with nothing prepared. So I decided to do some trouble-shooting. Recently, I've been doubling pretty much every dish I make and either freezing the leftovers or keeping them in the fridge for later in the week. That way, I'm guaranteed to have healthy, cheap food on hand for those 14-hour days. Actually, I sort of can't believe I haven't been doing this for ages.

4. Negotiate

This strategy largely connects back to strategy #1, but one of the most valuable lessons I've learned in my 26 years is that almost everything is negotiable. For example, I got 30% and 40% off of my two most recent furniture purchases simply by negotiating with the sellers via email. It never hurts to ask for a price reduction or a waived fee. Like mama says: the worst they can say is no.

What are your favorite money saving strategies of the moment?

I'm Nominated!

2012-01-21T09:42:00.003-05:00

A few days ago I received an email notifying me that my blog had been nominated for an award! I'm nominated for "Most Fascinating Blog of the Year" by Online PhD Degree Programs. This site recognizes blogs that are written by teachers, librarians, and students. I'm nominated in the category of teaching blogs.

Voting begins today and ends on January 26th at 11:59 PM. I would really love it if you would vote for me! There are 100 blogs on the ballot, but instructions are provided if you'd like to search by my blog name.

If you'd like to cast your vote, please click here.

Thanks so much for being such wonderful readers! I can't tell you how much writing this blog has enriched my digital life over the past few years and I have all of you to thank!

Have a great weekend!

2012 Revised Saving Strategy

2012-01-19T21:37:00.003-05:00

So, I've decided to revise my 2012 savings strategy...just a little bit. My usually indecisiveness has struck again, but this time I think it's actually benefitting me. At least, I think it's benefitting my long-term financial picture.

I've decided that priority #1 for 2012 is fully funding my Roth IRA, as opposed to my original first priority of fully funding my Freedom Fund.

Why you ask? I really think that over the long term, starting to fully fund my retirement account while I'm in my mid-twenties is the best financial move I can make. It should yield me a higher net worth when I reach my retirement years while at the same time - because it's a Roth - remaining pretty flexible. That is, if I really need the money I can get it. But I'll do everything I can to avoid tapping my Roth so that I can reap the rewards of leaving the money in the account to grow over the next 30-40 years. I don't feel the same pressure to leave money in my Freedom Fund, which is admittedly something I need to work on.

Speaking of my Freedom Fund, I'm still trying to fund it to three months of living expenses in 2012. In fact, I'm in the process of scraping extra money together to stuff into it right now. It's just that cash savings isn't priority #1 for 2012 anymore.

How are your 2012 goals going? Having you already changed or abandoned any? Please tell me I'm not the only one!

Updates: +/-

2012-01-16T18:26:00.003-05:00

+ So far, it seems that the antibiotic is helping my cat. She hasn't had another wheezing attack in a few days.

- I spent $153 on my car today and will have to spend another $200 tomorrow.

+ I'm back on Weight Watchers and lost a pound this week. I was sort of playing fast and loose with the PointsPlus system, so this was a pleasant surprise.

- Because of my current financial woes I had to back out of a birthday celebration on Saturday night that I really wanted to go to.

+ Someone bought my old desk for the full asking price of $100!

+ I modified my saving strategy for 2012 just a little, which is partially the reason that my current Freedom Fund reserves are a so low. More on that in my next post.

+ I'm very excited about the Jason Wu for Target line that's launching on February 5th. I'm making room in my budget to purchase a few of the super cute dresses. I'm also planning on getting to Target around 6 AM on February 5th. Hopefully, with a Target coupon in hand. Feel free to judge me.

I will muster up the energy to post something real soon, I promise. In the meantime, what's new with you?

2012 is Not Going So Well

2012-01-10T20:19:00.003-05:00

2012 is starting out on a couple of really rough notes, financially speaking. First, my car needs work.

Like, almost $400 in work. And that's with coupons.

Nothing is broken, exactly, but I'm way overdue for a few preventive maintenance items. I'm running on borrowed time with my serpentine belt, for example, and if that thing snaps in the middle of the highway, I'm pretty screwed. So, the work must be done ASAP.

Also, my cat is having some kind of respiratory issue. She has these wheezing fits, which are really scary for about sixty seconds. I took her to the vet today, and the results were inconclusive. She's on a course of antibiotics now, but may need a chest X-ray. So, right now I'm out $175, but if she needs the X-ray (likely), that'll be another $250. And I have to fight with her every day, twice a day, to give her these damn antibiotics. She can be a stubborn bitch, just like her mom.

To make matters worse, I'm having a lot of trouble selling my old desk.

So far, 2012 is financially sucking. It's times like these when I have a really hard time staying positive about my finances. I need to get over the $2,000 hump with my savings. It seems like as soon as I start edging towards $2,000, I get hit with some kind of emergency.

If you can't tell, I'm frustrated!

TeacHer's Favorite Things

2012-01-08T19:50:00.003-05:00

I am not Oprah (shocker). But since I wish I was Oprah - and I don't have too much to report right now, financially speaking - I thought I'd do a Favorite Things post.

Right now, these are my favorite things:

1. Portlandia. Hilarious.

2. Filthy Farmgirl soaps

Honestly, you have to try these soaps. I was first introduced to them at a market in NYC and now I'm obsessed. They're completely natural and smell amazing. Plus, shipping is free. You won't be disappointed.

3. Craig's list

I've been searching for a new desk for almost a year and I finally found it on Craig's List last week. For $200 I have a totally unique piece a furniture that I probably never could have found - let alone afford - at a traditional store. I love it so much - I can't stop looking at it!

4. The library

I spent two blissfully relaxing days over Christmas break reading Maine - but since I got it from the library, that means I essentially got two days of free entertainment. Love it.

5. This popcorn popper

I hate microwave popcorn but making popcorn on the stove is a hassle. Enter this nifty device. A quick, healthy snack is just 3-4 minutes away!

So, it looks like my current favorite things aren't actually things. But whatever. I said I wasn't Oprah.

What are your favorite things (or not things) right now?

2012 Personal Goals

2012-01-02T17:05:00.002-05:00

First: Can you believe that I had school today?!

Now, to round out my 2012 goals posts, I wanted to just write a quick post about my 2012 personal goals. They're pretty straightforward, so this will be brief!

My two 2012 personal goals are:

1. Begin researching and writing a novel
2. Read at least 15 books.

About the novel: I have a pretty decent idea for a novel I'd like to write. I was actually inspired by a very moving NPR story on the topic, but aside from that story, I really don't know anything about the subject matter. In order to bring my idea to life, I'll have to do some pretty intensive research. But I'm very serious about this idea, so I want to spend 2012 doing my research and developing my characters fully, even if the novel doesn't get finished. I'm really excited about this!

My second personal goal - to read 15 books - is pretty self explanatory. In the past few months I've become pretty lazy about reading. Not only do I miss getting lost in a story, but I think that reading more (particularly fiction) will help support my goal of working on my novel. Fifteen books is slightly more than one per month, which I think is very manageable.

So that's it for my 2012 goals! I can't wait to dive in!

2012 Health Goals

2011-12-29T18:21:00.002-05:00

Newsflash: I am not the world's healthiest person. I did quit smoking three years ago, but that's basically the only healthy thing I've done for myself in years that I've actually stuck to. So this year, I have a couple of health goals:

1. Complete the couch-to-5K running plan

2. Eat out 52 times or fewer

About the running: I've made a lot of goals in the past that have focused exclusively on losing weight. While I do want to lose some weight, I'm trying to think about my health in a more comprehensive way. Weight doesn't equal health, but fitness does. The reason that I like the couch-to-5K plan specifically is that it's very manageable time-wise and it starts really slow, which I definitely need. I'm planning to start the plan in the middle of February 2012 as I've signed up for a series of yoga classes that run through January. I don't want to take on too much at a time :)

And the eating out challenge: That's how I'm going to be referring to this goal, as a challenge, because it will be. In the past six months I have gotten into the very bad habit (both financially and health-wise) of eating out way too much. So I'm going to challenge myself in 2012 to eat out no more than 52 times. Why 52? Because that would average eating out once per week, which would be a significant improvement for me. Below are a list of rules for this challenge:

1. Both take-out and restaurant dining count as eating out. That includes pizza delivery.

2. Going to a restaurant or bar and just ordering a drink does not count as eating out, unless I order food.

3. Eating out with my parents does not count against my 52, but I see them only a few times a year so this really wouldn't make a big impact on the challenge anyway.

4. Going out just for ice cream in the summer does not count as eating out.

5. Eating out when I'm visiting family or away for school reasons (like the AP reading) does not count against my 52. I debated a lot about this one, but if I have no reasonable option of eating at home then I think it's silly to count it against the challenge. I also don't want to force this challenge on my family, so if I'm visiting a family member, I'm not counting that either.

What do you think? Do you have any health goals for 2012? Please, share!

2012 Financial Goals

2011-12-27T09:43:00.002-05:00

Yesterday I wrote that I want to do one post per day, every day this week about my 2012 goals. Today I want to provide some details about my 2012 financial goals. I have only two financial goals this year and I'm really excited about accomplishing them:

1. Establish and maintain a $5,000 Freedom Fund

2. On a monthly basis, begin contributing the annual max-out amount ($417) to my Roth IRA

First, about the Freedom Fund: I thought a lot about the amount that I want to keep in cash savings. Having some type of emergency fund is a very important part of a healthy financial plan so I initially had the goal of building a $10,000 fund, but I just feel silly keeping a ton of money in cash when the Roth IRA is so accessible in the case of a real emergency. So I settled on $5,000. Five thousand dollars is enough to last me for three lean months if I were to lose my job, enough to replace a car transmission, enough to pay for a health emergency for my cat. Basically, right now, I think that $5,000 is enough. Also, to make this goal a little more of a challenge, I'm trying to get it accomplished before this school year is up - by May 30th, 2012.

Now, about the Roth: I won't actually be able to max out my Roth this year, but I want to get solidly into the habit of maxing it out. So as soon as I have $5,000 in my Freedom Fund, I'm going to set up $417 automatic monthly contributions to my Roth. Even if I only contribute the $417 for a few months in 2012, that's ok. It's the habit that I'm working on, not the dollar amount....this year.

So that's it for this year, financially speaking. Looking over this post, I suppose I could have been a little more ambitious. But I'm happy with the goals I've set, and I'm excited about shifting from debt payoff to savings.

Tomorrow, I'm going to discuss my 2012 health goals, but I'd love to hear about your financial goals for the upcoming year. What are you planning to accomplish in 2012?

Updates and 2012 Goals

2011-12-26T10:18:00.003-05:00

I hope everyone had a wonderful holiday! I certainly had a nice Christmas at home with my family. I also received a Liebster Blog Award from the wonderful If I Were a Wealthy Girl. I will be passing on the award to my five favorite bloggers early next week because this week I want to do one post per day about my 2012 goals.

This is the first year since I started blogging that I feel really good about the goals I've set. I think they're very reasonable and they're all very important to me. In the past I've set goals just for the sake of setting them, but I really, really want to achieve every goal on my list this year.

If you have a chance to check out my 2012 goals page, please do! Tomorrow I'll be posting the details about my financial goals.

Happy Monday!

Christmas 2011: My Gift Buying Strategy

2011-12-20T17:43:00.003-05:00

A lot of PF bloggers - and probably regular people, too - set a small amount of money aside every month in anticipation of needing a large sum of money every December. The money builds up over the course of the year and by December a large amount of money is available for the purchase of holiday gifts. What a great idea!

But that requires both advanced planning and the willpower to save. I'm good at advanced planning, but I suck at saving. This will have to be addressed in 2012, but since it's still 2011 I had to come up with another solution.

I decided in August that I was going to do a little bit of Christmas shopping every month in the time leading up to Christmas. The money would come out of my monthly discretionary budget, and I'd only buy one or two gifts a month.

I have to tell you, this strategy worked like a charm. I'm going to do this from now on. Here's why I love my approach:

1. No December 1st "OMFG, Christmas is 25 days away and I have no gifts and no money to buy them with!" with freak out.

2. I get to spend a decent amount of time thinking carefully about what to buy for each person, as opposed to being rushed at the end of the year and forcing my loved ones to come up with a bunch of silly ideas.

3. The feeling of accomplishment that comes with working on a goal for months. It makes the build-up to Christmas feel exciting as opposed to stressful.

How did you budget for Christmas gifts this year? Did you stick to a budget; did you shop sales and use coupons? Did you try something new, or do you have a tried-and-true method that works for you? Please, share!

Danger, Will Robinson!

2011-12-18T10:25:00.002-05:00

My favorite store in the world, Anthropologie, is moving into my neighborhood. Like, a mile away.

On January 27th.

Start sending me willpower vibes. I will need all the strength I can get!

Sometimes Shitty Customer Service Actually Pays Off

2011-12-17T16:44:00.003-05:00

One of the many things I spend money on for my classroom is tissues, so I was totally pumped a couple of months ago when Safeway was offering 200-count boxes of their brand of tissues for $1.00 each. I had to get a raincheck because the store that I was in was out of stock. Today I decided to call that raincheck in. Little did I know that the bitchiest woman on earth would end up getting me 600 tissues for free.

I went to a different Safeway than the one I actually got the raincheck from because it's close to the big CVS (where I got three 12-packs of diet Coke for $8!). And this Safeway is crappy. First, I couldn't find the tissues because the aisles were totally mislabeled. Then, they didn't have the 200-count tissues. So I went to the customer service station to ask about getting the raincheck extended. And that's when the waiting began.

There was no one at the customer service desk, so one of the checkers called over the loudspeaker for help. And I waited.

And waited.

Finally, a very cranky woman came to the desk and just looked at me. No "how can I help you?" or "what do you need today?" She just looked at me. So I explained the situation and she said they couldn't extend the raincheck. She was about to walk away without offering further help when I asked if I could just substitute a different count box of the Safeway brand tissues.

"Fine," she called over her shoulder.

So, I went and got 10 boxes of 260-count tissues and paid $1.00 each for them. Score!

I was annoyed about her shitty attitude, but at the same time it got me 600 tissues for free. I think I can put up with 10 minutes of waiting and a sour puss for that.

Sidebar: If you could possibly send a couple of boxes of tissues into school with your kids to give to their teachers from time to time, their teachers will really appreciate it. Pens and pencils are always a nice surprise, too!

Bad Financial Habits: I Still Have Them

2011-12-12T17:23:00.002-05:00

It is an exceedingly rare circumstance under which I discuss my personal financial accomplishments in my "real" life. One of the reasons I choose to write this blog is that I get to discuss - with like-minded people - a topic that is taboo in most circles. But every once in a while an opportunity arises that I can get to toot my own horn a little bit. A couple of months ago I was talking to some of my teacher friends about how much we pay in rent. One of my friends was astonished that I pay over $1000 each month for my apartment. I told her that I don't really feel guilty about spending so much on rent because I've still been able to pay off a lot of debt over the past couple of years. She prodded me a little about how much - exactly - I've paid off and I told her "about $30,000."

Both of my friends' jaws dropped (which kinda made me feel proud!).

Finally, the other friend said, "Wow, you must be really disciplined. I'm so bad about spending money."

My immediate response was, "Yeah, I've cut out a lot." Which is true. I have gotten into the habit of really scrutinizing every purchase, and, more often than not, I put things back on the shelf/rack that I had originally intended to buy. But the truth is, I still have a lot of bad financial habits, including:

1. Wastefulness

I have a really bad habit of being wasteful, especially when it comes to food. Some of this comes from being young and single: "Wanna go out for beer and wings tonight?" "Sure!" (as she thinks of the chicken and broccoli in her fridge at home, waiting to be prepared). Some of it comes from just plain laziness ("I just worked 15 hours straight - screw cooking!"). Either way, a shameful amount of food that I buy - intending to cook - goes to waste.

2. Buying duplicates

I'm too horrified to count, but it's extremely possible that I have 10 pairs of black heels. I'm a serial over-buyer of certain items and it's just plain ridiculous.

3. Eating out

Again, when you're young and single, eating out is a major part of being social. And with eating out comes drinking. And both are major money-wasters :/

So even though I've managed to pay off a lot of debt since I started teaching, I still have some bad financial habits that need to be tamed....I'm feeling some 2012 financial goals coming on.....

What bad financial habits are you hanging on to?

My Bloggy Secret Santa Gift Arrived!

2011-12-10T14:01:00.006-05:00

Yesterday I arrived home to find an unexpected package at my front door. It was my bloggy secret santa gift! How exciting! My gift came from the wonderful Debby at Nanny's Place. Take a look at what she sent:

This is a very cool tape dispenser that looks just like my favorite pair of shoes! My students will laugh when they see this on my desk because it's so perfect for me!

This is a very cheerful hand-sewn apron to inspire me to cook even when I don't feel like it!

And finally a very sweet handmade card!

Thank you so much Debby for your thoughtful gifts and thanks again to Serendipity for hosting the bloggy secret santa! I had a great time giving and receiving :)

Enjoy the rest of your weekend!

On The Day That I No Longer Have to Say Yes

2011-12-01T17:37:00.002-05:00

"Want to serve as the school's SAT/ACT coordinator? It pays $25 per hour." Yes!

"Want to write curriculum for U.S. history? The stipend is $800." Yes!

"Want to tutor after school for government? It pays $25 per hour." Yes!

"Want to teach summer school? It pays $35 per hour." Yes!

"Want to write exam questions? It pays $30 per question." Yes!

"Want to attend an evening staff development? It pays $25 per hour." Yes!

"Want to come in to tutor for AP exams Saturday mornings? It pays $25 per hour." Yes!

"Want to sponsor the freshman class? The stipend is $6oo." Yes!

"Want to mentor a new teacher? The stipend is $450." Yes!

"Want to read AP tests? The stipend is $1600." Yes!

These are all positions I have said YES! to over the years to earn extra money to pay off debt, sometimes to the point of be ridiculously over-scheduled. And I am incredibly grateful that these opportunities have been available to me, otherwise there's no way that I would have been able to make the kind of financial progress that I have.

But someday, it will be really nice not to have to say YES! Someday, it will be nice to just say YES! to the things I want to do (like reading AP tests and writing exam questions) and politely say NO! to the things I don't want to do (SAT/ACT tutoring).

Someday.

Small Business Saturday

2011-11-26T15:01:00.003-05:00

Guess what? Today is Small Business Saturday! It's sort of meant to be a counterbalance to Black Friday, where everyone runs out to the big box stores and neglects the special and unique items that small businesses have to offer. It was created by American Express, so it's not exactly free of corporate influence, but nevertheless I have always felt very strongly about shopping at small businesses whenever I can.

Today I went to a great little boutique in my hometown called Something Else (they don't have a website or I would have provided a link) and purchased this amazing Betsey Johnson winter coat:

If I were creating the perfect coat for myself from scratch, this is probably what I would come up with. It doesn't show very much in this picture, but it has a really cool hot pink lining also. I love it! It was marked down to $99.99, and for a heavy winter coat by a major designer, I think that's pretty reasonable.

Did you know about Small Business Saturday? If so, did you go to one today? What did you get?!

Enjoy the rest of the weekend!

My Financial Bucket List

2011-11-23T17:10:00.005-05:00

I'm not a big believer in "signs" but I can't help but wonder if the personal finance world is trying to send me one - just after I wrote a post about struggling to define my big goals, Krystal at Give Me Back My Five Bucks announces a partnership with Life Insurance Finder to give bloggers a chance to win $500 towards their financial bucket lists!

I'm trying to win, so I guess that means I'm forced to define a couple of large goals. These are sort of general, but for right now this list will have to do!

1. Establish and maintain a six-month emergency fund. That amount might shift throughout my life as my financial obligations change, but for right now I'm aiming for $10,000.

2. Max out my Roth IRA every year (after the $10,000 is established).

3. Buy a home.

4. Travel to every continent.

Again, I'm trying to win the $500 Give Me Back My Five Bucks competition, sponsored by Life Insurance Finder, the life insurance experts. Be sure and enter for yourself! And if you don't want to enter, keep your fingers crossed for me :)

Enjoy your Thanksgiving, bloggies!

Goals and I Have a Troubled Past

2011-11-20T08:38:00.004-05:00

In the personal finance world, there is a lot of talk - pretty much constantly - about the importance of goals. It's so much easier to work on your finances when you have a distinct goal or two in mind. Goals like buying a house, retiring early, going on a big trip, etc.

For the past two years I've been trying to conjure up my big goals, a couple of really huge things I want from life that will give me the extra "umph" I need to really get my finances in order. It would be so much less of a struggle if I had something really driving my efforts to spend less and save more.

But here's the problem: I still don't think I really know yet what I want my life to look like.

This thought hit me like a bolt of lightening when I woke up in the middle of the night last night. And the strange thing is, it was an oddly familiar realization. Like, I knew I had felt that way before, but luckily I fell asleep before I could pinpoint it.

When I woke up this morning, I knew: I used to feel this way in high school and the beginning of college all the time when I was thinking about my career path. I would sometimes feel depressed about all of the A.P. courses I was taking and all the hard work I was putting myself through, for a future that I just couldn't envision.

But at some point I came around to an important realization - even if I didn't know exactly what I wanted career-wise that day, someday I would. And when that day came, I wanted options. A bullet-proof transcript gave me options. All the college credit I got from taking so many A.P. classes gave me options. Outstanding letters of recommendation from my professors because I worked so hard in their classes gave me options. When I decided to apply for my master's in education, I was ready.

I think I'm going to start thinking about my finances the same way. I don't know what I want today, and I am working hard to figure it out. But I need to be sure that when I do make the big decisions, I have options. Being debt free gives me options. Having a fat savings account gives me options.

Working towards big life goals is a great, great thing. But for right now I have to just believe that working as hard as I can to get financially ready for the next big thing in my life will pay off, the same way working really hard in school did.

What big life goals keep you motivated to stick with your financial goals?

Some Personal Finance Advice is Totally Unrealistic

2011-11-16T18:17:00.002-05:00

To some people, all personal finance advice is unrealistic. There are some - actually, a lot - of people who roll their eyes whenever they're told to save or invest or pay off debt. They think that there's nothing that they can do about their financial situations and that only people with tons of money can have good financial habits - like saving, investing, and paying off debt.

A big part of me thinks that one of the reasons that so many people are so overwhelmed by the world of personal finance is because a lot of experts give totally unrealistic advice. Like, actually unrealistic. Advice that no middle class family could possibly follow while still meeting all of their other financial obligations. For example:

1. Save 20% for a home downpayment. This is advice that is leftover from an era of high wages (relative to cost of living) for middle class Americans. If most of us - especially those of us who live on the coasts - are going to become home-owners, there's no way that we can meet the 20% downpayment criteria while still saving for retirement and paying all of our other bills. Unless, of course, we're planning on waiting until we're 40 to buy our first homes.

2. Never finance a car. So, let me get this straight: I'm supposed to be saving for emergencies, saving for retirement, paying all my bills, paying down my debt AND saving for a new car? Not. Gonna. Happen. It's much more realistic to advise people to finance a reliable, reasonably-priced car, pay extra on it when possible, and drive it until the wheels fall off.

3. Build an 8-month emergency fund. Even for very financially savvy people, this seems like an unachievable goal. And even if it is achievable, most would say it's probably not desirable. Putting money into a savings account doesn't build wealth, it provides security. If you're trying to build wealth, 3-6 months of emergency funds is secure enough - keeping thousands of extra dollars in a vehicle that's essentially returning nothing is just plain silly when it could be invested elsewhere for higher returns.

Of course, if you earn a high enough income to accomplish all of the stuff on my "unrealistic" list, then by all means go for it. But financial experts, stop telling average, middle class Americans to practice these financial habits as a matter of course, because we'll just tune you out and keep spending our whole paychecks on junk that we don't need - if we can't meet these ridiculous expectations, why bother trying at all?

Do you agree with my list? What financial advice do you find totally unrealistic for the average person?

2012 Goals

2011-11-13T11:12:00.004-05:00

I've been thinking a lot this weekend about my goals for 2012. This was sort of inspired by the discussion over at Newlyweds on a Budget regarding Dave Ramsey and If I Were a Wealthy Girl's post about why she chose Dave Ramsey's plan over those peddled by other financial gurus.

The bottom line is, I don't really like Dave Ramsey the person very much. I think his ideas about marriage are very old-fashioned and the infusion of religious ideas into his financial teachings just isn't my taste. I also take issue with some of his financial ideas, like his view of credit cards. I really don't understand why credit cards are so bad if you pay them off every month. Going completely credit card free just isn't for me.

But in general, I think Dave Ramsey's financial approach is pretty sound, at least for someone like me who is young (I'm not so sure someone in their 40s or 50s should put off saving for retirement while they get out of debt, but again, that's not the situation I'm in) and trying to set my financial life up right. I like the step-by-step methodology of the plan and how it addresses all the aspects of leading a healthy financial life - getting out of debt, creating an emergency fund, saving for retirement, etc. I also like that it's easily customizable to your own financial situation.

So what does this have to do with my 2012 goals? I've decided to take the next step (baby step 3) in Dave Ramsey's plan and spend 2012 creating my 3-6 month emergency fund. That is, I'm going to aim to have $10,000 saved by the end of 2012. That could float me very comfortably for 5 months if I lost my job, but I really could stretch it for six months if I had to. That will make me feel very secure and ready to start aggressively saving for retirement.

What do you think about Dave Ramsey's baby steps? Are they right for you? Do they impact the goals that you make?

Ugg, Money!

2011-11-08T19:54:00.003-05:00

I'm getting that "ugg, money!" feeling right now. It's like it's always something. Not even the little emergencies, just the little commitments and inconveniences. Birthday gifts. Dinner dates and brunches to meet up with friends. Being out of toothpaste, shampoo, Band-Aids, and Advil...all at the same time. Unexpectedly being out of the house for 15 hours straight...which of course means I need to buy food and bottled water. Fundraisers at school. Will the madness ever end?!

My budget month starts over in one week. I need it to be next Tuesday!!

Lifestyle Inflation

2011-10-30T20:18:00.002-04:00

For the past six months or so - but especially since paying off my car in September - I've been experiencing some serious lifestyle inflation. I haven't bought anything super expensive, but I've been getting my nails done more, buying clothes whenever the fancy strikes, and eating out pretty much whenever I want. I've also been abandoning some of my most entrenched frugal habits, like always making my own coffee and never eating lunch out.

I think this basically comes from three years of serious penny pinching. I feel really good about the financial progress I've made, and I just want to loosen up for a few months. But we all know what can happen - a few months turns into six months, which turns into a year, which turns into ten years, which turns into a lifetime of unhealthy financial habits. I consider myself a reformed spendaholic, but I'm not that reformed. I know I can easily slip into bad habits and never slip back out of them.

2012 will be the year of building up my cash savings. I'm toying with the idea of setting the ambitious goal of building up $10,000 in one year. It will be difficult, but it's not totally outrageous. And I want to start 2012 off right, so for right now I'm setting the goal of having at least $1,500 in my Freedom Fund when the year ends - which will mean I'll have $8,500 to save in 2012. My balance will bounce up and down throughout the next two months, but I think $1,500 is reasonable. And it gives me something to focus on so that my spending will remain somewhat in check.

Does accomplishing financial goals every make you celebrate a little too much? Have a great week!

Bloggy Secret Santa

2011-10-29T18:22:00.002-04:00

I just signed up for Serendipity's bloggy secret santa and I'm hoping you will, too! I think this is a totally great idea, and the spending limit is only $15, so it's not in any way a burden.

You can sign up until November 5 - hope you'll join me in getting really excited about this and jumping on board!

My Federal Student Loan is Under $13,000!

2011-10-25T22:32:00.003-04:00

Yep, with the payment that came out of my account last Friday, my balance on my only remaining debt is less than $13,000!

Sometimes it's so hard to believe how much debt I've paid off in the past three years. But I have, with nothing but extremely hard work and determination. And now I've reached another milestone. I can't wait to finally be totally debt free!

Brooklyn is Thrifty

2011-10-24T20:59:00.004-04:00

I just got back from a great weekend in NYC and while most of it was spent in Manhattan - which is where my sister lives and works - we spent a fantastic Saturday in Brooklyn. It was my second time in Brooklyn and I think I'm slowly following in love with the borough. Not only was my day there fun, but it was pretty inexpensive compared to an afternoon of comparable activities in Manhattan. Let me tell you all about it:

We started the afternoon at the Brooklyn Brewery, where beers are six for $20! And the beer is great! Ever had Brooklyn lager? It's brewed right there. I ended up having three, all different, all fantastic.

With a nice buzz going, we headed over to Beacon's Closet, a HUGE thrift shop right across the street from the brewery. I scored three amazing pieces for less than $50 - a very retro style shirt for $11.95 (I might post a picture of me wearing it with a black skirt tomorrow), a tweed pencil skirt for $16.95, and a chunky chain necklace for $15. I am really jazzed about all three items and can't wait to wear them ASAP!

With our buzz wearing off, we moved on to Fatty 'Cue, which was recently rated one of the top 50 restaurants in NYC by the the New York Times food critic. We were incredibly lucky to get a table at this hip Asian-BBQ fusion spot. It's kind of a family style place, so we ordered cocktails and a bunch of dishes for the table. My favorite item was the ribs, they were very tender and the sauce was tangy (like BBQ) and spicy (in a Thai restaurant kind of way). We split the bill 4 ways and it came to $25 per person. Again, for cocktails and tons of food, this was an NYC bargain.

All in all, it was an AMAZING weekend that included tons of classic NYC spots (Chelsea Market, Central Park, a walk on the high line, desserts in the Meatpacking District and the Sex and the City bus tour....and those were just daytime activities) but I was so enamored with my Brooklyn experience I had to share the details.

Hope you had a great weekend, too!

I Am The 53%

2011-10-19T18:39:00.004-04:00

I'm a white female. I grew up in an upper-middle class family with two parents who love me and taught me important values like hard work, financial responsibility, and the importance of education. I always had a roof over my head and food on the table - actually, I always had a nice roof over my head in a nice neighborhood and healthy, nutritious food on the table, provided to me by parents who never would have considered hurting me, mentally or physically.

Speaking of education, I went to an outstanding public elementary, middle, and high school. I had teachers who made sure that I could read at grade level, deliver a speech, write a paper, and do calculus. I was ready for college, academically and socially, because of the environment I grew up in. Plus, I had role models. Every adult I knew was a college graduate. The importance of higher education was instilled in me from the time that I was in kindergarten.

So I went to college, and because I was well prepared, I did very well. Then I went to graduate school. Then I graduated and was lucky to get a good job right away. I still have that job because my parents, teachers, and professors taught me the important "hard skills" that one needs to be successful in the professional world, like meeting all the expectations of your employer, getting to work on time, and showing respect for my boss. But they also taught me the important "soft skills," like responding to emails in a timely fashion, dressing professionally, and getting along with my colleagues. Again, I had role models. I was learning how to be a successful professional from the moment that I learned how to talk.

Yes, I worked hard. Yes, I made good choices. But I am not deluded enough to think that I was not set up for success from day one. I'm not naive enough to believe that all of the sociological and environmental factors described in this post haven't played substantial roles in getting me to the place that I'm in today. Frankly, I'm not stupid enough to think that other people don't have it a lot harder than me, and maybe that's why they're not in a position to pay taxes.* And I'm not ungrateful enough to believe that if the circumstances of my life had been different I probably wouldn't be sitting in my nice warm apartment with my good job to go to tomorrow, with food in my fridge and clothes in my closet, happily paying my fair share in taxes to provide the public services that we all use.

I am also the 53%. And I think it's time we all started taking a long, hard look at ourselves.

*Of course, I'm referring to those who are low-income and don't meet the minimum wage requirement to pay federal income tax, not the millionaire "job creators" who are very much in a position to pay substantially more in taxes but don't. Of course, they're not tax evaders. Our current, totally absurd, tax code allows them to pay a lower percentage of their income in taxes than I do. Of course, this tax code was created by other millionaire white males who will directly benefit from it. Of course.

Updates: +/-

2011-10-16T15:09:00.002-04:00

+ I'm finally starting to get caught up on school stuff.

- When I was sick I totally fell off the dieting wagon. Pretty sure I'm up a few pounds. Boo.

+ I'm going to NYC next weekend!

+ I'm running an SAT tutoring program at school that's going to yield me about $700 before December.

- Said program is very stressful and time consuming. This mostly stems from the fact that there isn't a clear line of communication between the Board and me. A lot of details get lost and I end up looking stupid and having to deal with extra problems.

+ I only have three Christmas gifts left to buy.

+ I'm finally starting to get excited about saving. 2012 will be the year I create a 3-month emergency fund!

+ One of my BFFs is coming to visit in December!

- I have been extra lazy about cooking recently which has led to a lot of eating out.

+ Recently I have been exceedingly thankful that I live where I do. It really is beautiful and I'm lucky to be able to have my own apartment in this unbelievable location.

+ I'm having an easy time resisting purchasing the iPhone 4s. It's not as snazzy as I was hoping. I'm going to look at my 3G as vintage Apple and wait for something truly spectacular before I upgrade.

- My new blog doesn't seem to be very popular.

+ I'm still enjoying posting about fun stuff. Not that money isn't fun but...you know :)

What's going on in your world?

My Only October Goal

2011-10-12T20:10:00.002-04:00

September was a fail. Seriously, every goal was a fail. Ouch.

I have only one goal for October: keep my head above water. At school, at home, financially. Just stay one step ahead of my students, my checkbook, and the dust in my apartment. That's all I really want to accomplish.

After being seriously sick for a week - my cold was really nasty - then losing another two days to a migraine, I am floundering. I need to catch up on cleaning, grading, lesson planning, budgeting, tracking spending, and a million other things. Including blogging! I've been really slacking. Ahh! So much to do!

Wish me luck :)

I'm Sick

2011-10-04T17:38:00.003-04:00

Why, oh why do the children insist on breathing and touching things - like the papers they hand in, my pencils, etc. - in my presence? Can't they do these things in their free time so that I don't get infected with the various plagues they carry?!

Anyway, I am sick and not happy about it. Not only am I falling way behind with school stuff, but I'm behind on bloggy stuff, too, like goals. Sigh.

In other news, Kevin over at Thousandaire is giving away some seriously cool stuff. If you've never visited his site, you should. Politically, he and I don't see eye to eye, but his personal finance music videos are so cool. My favorite one is the one about the Roth IRA. Seriously, watch it. You won't be disappointed!

I'll be back with goals later in the week :/

Novica: My First Ever Review!

2011-09-29T19:08:00.005-04:00

I am so excited to be posting my first-ever review of a website and its products! Before I get started I just want to thank Novica for this amazing opportunity :)

Anyway, about a month ago a representative from Novica emailed me and offered me a $100 gift certificate to purchase a few products and review their site. I was initially hesitant; I had never done anything like this before and was a little nervous. But as soon I took a look at the site I immediately agreed. First of all, I love the mission of the site. And as an AP geography teacher, I was excited that the company was affiliated with National Geographic. Sign me up!

I decided to use the gift certificate to get a jump on my Christmas shopping. I seriously spent almost an hour and a half perusing all the great stuff on the site; my mission was to pick out a gift for each of my besties, and there were so many choices! I finally settled on these two items for my two lovely friends:

Bestie 1: This pair of beautiful earrings

Bestie 2: This set of gorgeous margarita glasses

The products both arrived within a week and I couldn't be happier about their quality and the site's customer service. In fact, I love the margarita glasses so much, I seriously considered keeping them...only for a second! I can't wait for the Christmas season to come so that I can give these amazing gifts.

Honestly, I can't say enough great things about Novica. If you're looking for truly unique gifts (or something special for yourself), this is your one-stop shop.

How are you doing with your Christmas shopping?

Here are a few links to some other great products to check out:

http://accessories.novica.com/

http://acessories.novica.com/mens/

http://accessories.novica.com/mens/cufflinks/sterling-silver/

http://accessories.novica.com/mens/scarves/alpaca-wool

http://accessories.novica.com/mens/walking-sticks/

http://novicalive.com

This is So Ridiculous it Might Just Work

2011-09-26T18:36:00.002-04:00

Confession: I hate saving.

I've mentioned in several previous posts that I'm a natural spender. I have no inborn impulse to conserve. In fact, ever since I started working at fifteen, I've pretty much spent every penny I've ever made. Of course, in the past few years I've been chucking HUGE amounts of money at my debt. But still, paying off debt and saving are different skills. Paying off debt I've perfected. But now I need to move on to saving.

I'm not going to be attacking my remaining student loan with any great vigor. Why? Because my major long-term goal is to be debt free with a substantial savings by 30. At the end of my seventh year of teaching, I will be eligible to have $5,500 of my student loans forgiven. As long as I continue making minimum payments on my student loans until then, that $5,500 in 2014 will wipe out that loan. At this point in time, I will have just turned 29. So, one half of this long-term goal will be accomplished.

But what about the savings? I've been stressing about this for the past few weeks because I know that saving is what I need to be working on, but I also know myself...and I'm a terrible saver. I toyed with the idea of just fully funding my Roth and having it double as my emergency fund, but I've proven that I really can't even be trusted to leave that untouched. Besides, it's almost universally agreed on in the personal finance world that having a few months worth of emergency savings in cash on top of retirement savings is ideal.

I think - after much obsessing - that I've gotten to the root of the problem: the vague nature of "emergencies" and "retirement." It's hard to envision an emergency or retirement until one of these situations is upon you, thus mitigating the urgent desire to save for one or the other. It's much easier to save for something specific, something tangible. So I've devised a plan to manipulate myself into building an emergency fund.

I'm not going to call it an emergency fund, or even my Freedom Fund - which is how I've been referring to it on this blog. I'm going to call it my Move to NYC Fund.

I know what you're thinking: WTF?! Let me explain.

Moving to NYC is a dream of mine, but alas, a dream that is unrealistic given my profession. But it could happen, particularly if things in my personal life here go south. So, since moving to NYC is something that I've dreamed of, I think I'll be more enthusiastic about putting money in a savings account that is for this purpose. In reality, I will probably never drop everything to move to NYC. In reality, this money will be for emergencies. But if I call it my Move to NYC Fund, I'll fund it. And if I have to use the money for an emergency, I'll be more likely to replace it quickly.

And hey, there's always the possibility that someday I could actually use it to move to NYC. That's the magic of this strategy; even though I know I will probably never use this savings account for a big move, I find the mere possibility of fulfilling a major dream deeply exciting. And there's the trick: I'll feel excited enough to actually save.

So starting in 2012, I'll be embarking on a two year journey to build a $10,000 Move to NYC Fund.

Do you ever play elaborate tricks on yourself to accomplish your goals? Or am I seriously crazy?

Most People Don't Live Like PF Bloggers

2011-09-24T15:05:00.002-04:00

Earlier this week Ninja over at Punch Debt in the Face wrote a post in which he wondered about how car dealers stay in business. He just couldn't believe that so many people are buying new cars that so many car dealerships could stay in business. I completely understood his point. How could so many people be buying new cars when they are basically the opposite of an investment - they depreciate at the speed of light! Obviously, everyone buys reliable used cars that they drive into the ground, right?!

Wrong, of course. Wrong, wrong, wrong. While his post made sense to me, I'm sure it wouldn't resonate with most of the outside world. As PF bloggers who live in a world consumed by talk of Roth IRAs, emergency funds, and Dave Ramsey, I think we all sometimes forget that most people don't live like us. Most people think that debt is normal (and I guess if you define "normal" as "extremely common" it is), buying a new car is ideal, and that saving is something they'll get around to later.

Another example: HS over at Our Debt Blog gets ripped to pieces by commenters when he overspends. He makes statements frequently about how he feels like he doesn't spend any more than those in his social circle. But that's the thing: I'm sure his spending is in line with his friends and family, but when he discusses it with the PF world it seems outrageous, hence the nasty comments he gets. Again, most people don't live like PF bloggers and he (like all of us) is straddling both worlds.

I think this is important to remember because I sometimes find myself becoming overly critical of how others are spending their money. Like, I have a friend who I know is steeped in credit card debt but continues to eat out several times a week. I cringe sometimes when she talks about a new restaurant she tried last weekend, but I shouldn't. It's her life to live, her money to spend. I have to remind myself (again) that most people don't live like PF bloggers.

Do you ever find yourself judging the spending habits of others? If so, does it bother you that you do so? How do you try to cope with it?

The Joy of Indulging in Frivolous Spending

2011-09-15T18:15:00.004-04:00

Today I bought something that I don't need, but I've wanted it for a really, really long time.

Today I bought a pair of Hunter rain boots and a pair of black cable cuffed welly socks to go with them.

Total damage? $173.25

Worth it? Totally.

I have been coveting a pair of Hunter boots since I saw them all over the streets of NYC two years ago. I just haven't been able to bring myself to pull the trigger until today. But I planned for it. I knew that this would be the month for me to order a pair of these beauties and I'm ready to make sacrifices for the rest of the month to accommodate them.

I could have purchased a pair of cheap Target knock-offs (I am so not disparaging Target - I buy clothes there all the time) but in this case I wanted the real thing, and I knew that nothing would satisfy except the real thing.

And herein lies the beauty of personal finance - it's ok to want things, and it's ok to buy the things you want, even if there's a cheaper alternative. The key is to set priorities then scrimp in some areas to afford the things you really want. I'm already planning to skip my usual Friday dinner out this week to offset some of the cost of this purchase, as well as move my Saturday movie night to Sunday afternoon (matinee prices, what's up?!!) - and I'm happy to do so. (It also doesn't hurt that I made some chili that is the BOMB that I can eat tomorrow night...but that's another story :)

What I'm saying is, this was a splurge, but I'm not regretting it at all. What have you splurged on recently?

My Parents Can Afford to Bankroll Me Every Month. But They Don't.

2011-09-14T16:59:00.002-04:00

A topic that pops up from time to time in the personal finance world is the habit that a lot of twenty-somethings have of accepting monthly financial support from their parents. I'm not talking about a once-in-a-while emergency loan. I'm talking about an ongoing allowance. Maybe not a set amount of money every month, but a bill (or three) that is paid every month by mom and dad. Or a monthly, tearful phone call detailing "how hard" it is out there....followed by a plea for whatever the monthly shortfall happened to be.

I am a twenty-something and I do not do this.

Not because my parents can't afford it. They can. They really, really can. But they don't. They would never offer. And I'm ok with that.

My parents made it on their own. Neither came from any type of money (in fact, based on what my grandmother has told me, my father's family probably would have qualified for food stamps - but they never would have applied) but they both worked really damn hard to get to the financial place they're in now. And they also worked really hard to raise me to be an independent, hard-working, dignified adult. I would never want to spit in the face of that hard work - in their careers or their parenting - by expecting a monthly hand-out. I'm twenty-six, intelligent, and not disabled. There's no reason I shouldn't be able to pay my own bills, even if that means getting a second job at McDonald's to balance my budget.

Which is not to say that my parents have never given me anything. They have. They gave me a comfortable, stable, healthy childhood. They paid for all of my needs. They taught me to be self-sufficient and to solve my own problems. And because I went to an in-state school, they paid my undergraduate college tuition. They even loaned me a chunk of money (which I repaid within six months) when I first got out of college to cover the "start up" costs of my apartment - the moving truck, household items, etc. They gave me their old couch so that I wouldn't have to sit on the floor in said new apartment. In my book, that's giving me a lot. They shouldn't have to give me anything else besides love and emotional support.

Sometimes I have to literally bite my tongue and look away when my friends and family talk about how their parents paid this or that bill for them, or because they got a new this or that they ran short last month...but mom and dad filled in the hole. Maybe I'm looking at this in an old-fashioned way, but beyond it being frivolous to take money from parents at this age, I just don't think it's right.

What do you think?

A PF Bloggy Thing I Want to Try + An Announcement

2011-09-12T11:00:00.000-04:00

I really love being a personal finance blogger, but there are some aspects of personal finance blogging that I perceive as being tiresome. These include posting weekly spending reports, monthly net worth updates, and monthly debt total updates. I sort of got around the last one by posting a text box on my blog that details my debt totals and progress; this allows me to just log into my accounts after payments have posted and change the totals in my text box. In short, I don't have to do any actual math to keep up with my debt total updates.

However, I've decided to start posting weekly spending reports. For one thing, I like the accountability that PF blogging provides, and this is one more layer of accountability. For another, I've been really struggling to stay on budget in a couple categories (the usual suspects - groceries, eating out, clothes, etc.) for the past few months and I'd like to try to discover patterns in my overspending - assuming that any real patterns exist. At the very least, I'm hoping that I might fall victim to the Hawthorne effect; I'll know that my spending is being "studied" (if only by myself) which will cause me to spend more cautiously.

My budget month starts over this Thursday, so that will be the beginning of my tracking. In other words, my weekly spending reports will be posted every Thursday, starting with the Thursday after this one coming up. Sound good?

Now, for another announcement: I started another blog! I've tried to start a second blog a couple of times before and I couldn't quite get the momentum going. But I'm really excited about this one, so if you have a chance, please take a look at it! (If the link above fails for some reason the url is http://meredithmakeshermark.blogspot.com.)

Hope everyone is having a happy Monday :)

My Car Payoff

2011-09-08T13:05:00.002-04:00

Two weeks ago at this time, I owed $2,742 + change on my car. I also had $2,000 of contributions in a Roth IRA. I was also about to receive a $1000 "extra paycheck" the following week.

I think you see where this is going: I made the decision to withdraw $1800 from my Roth and, combined with the extra check, pay off my car.

I wish I had a really good story to explain why I decided to do this. There was no lightbulb moment, no real number crunching, no mental breakdown or breakthrough. I just decided that the $2000 in an investment wasn't providing me with the same sense of security as would clearing $2700 in debt. So I acted swiftly, before I could start obsessively analyzing. I just went for it.

Financially, this was probably the wrong decision. One of the cardinal rules of personal finance is not withdraw money from retirement accounts for anything other than retirement income. Emotionally, I couldn't be more pleased with my choice. I still don't think, on a deep, psychological level, I've embraced the power saving the way I've embraced the power of paying off debt. So rather than try to fight that reality (which I will have to do, and soon) I decided to work with it to better my financial picture in a different way.

Feel free to disagree with my decision in the comments, or better, convince me of the importance of savings. Because it's going to be all about savings from here on out!

August Recap + September Goals

2011-09-04T14:39:00.002-04:00

Yah! I'm so happy that August is over - in case you haven't heard, I hate summer. So I'm really glad that fall is here! Let's take a look at how my August goals went:

1. Pay $1100 towards my car loan - CHECK! In fact, I did better than $1000 - I paid if off completely!

2. Get Freedom Fund back up to $1000 - CHECK!

3. Stick to $200 clothing budget for back-to-school - CHECK!

4. Stick to $75 budget for classroom materials - FAIL. I went way over budget here.

5. Look into counseling/therapy - FAIL. I'm rolling this over to this month.

6. Purchase two Christmas gifts - CHECK! I actually got 4!

7. Go back through closet to find more clothes to donate/sell - CHECK!

8. Go back through pile of clothes to be donated to figure out what can be sold - CHECK! I sold $30 worth of clothes to Plato's Closet and donated the rest.

9. Lose 5 lbs. - FAIL. But I did lose 3.5 lbs.

10. Exercise at least two times each week - FAIL. Shocker.

So, I'm counting August as a financial success but a health failure. Here's what I'm hoping to accomplish in September:

1. Develop a new financial plan, now that my car is paid off.

My car was my last consumer debt, so now I need to seriously re-evaluate my financial priorities. There will be much more on this later. I'll need your advice!

2. Look into counseling/therapy.

I never got around to this last month, so I'm rolling it over to this month.

3. Make a dentist appointment.

I hate the dentist but this has to be done! I cancelled two appointments over the summer, so I need to suck it up and be a big girl about this.

4. Get a flu shot.

As all teachers know, kids are germ factories. I need to get a flu shot this month so that I'll be fully immunized by the time winter rolls around.

5. Get weight below 150 lbs.

I'm pretty close. I weighed in this morning at 152.5. If on October 1st I weigh 149, I'll be happy. If I could get to around 146, I'd be super happy.

6. Exercise at least two times each week.

Self explanatory.

Next up: the car payoff story. I made a probably controversial move here, but in the interest of full disclosure I'll lay it all on the table.

Enjoy the rest of the weekend :)

Hey, Guess What?

2011-09-03T11:25:00.001-04:00

I paid off my car yesterday!

Details - plus an August wrap-up and September goals - to follow.

If The Cash Fairy Paid a Visit..

2011-09-01T20:40:00.002-04:00

I love playing this game. If the cash fairy paid a visit and dumped a wad of cash on you that you had to spend (no saving or paying off debt allowed!) what would you buy?

Right now, I'm dreaming of:

1. This jean jacket. I have the perfect outfit in mind that it would complete...perfectly. Sigh.

2. A pair of black, round-toed Louboutins. No explanation necessary.

3. A small fridge for my classroom. It would be so convenient!

4. School supplies. Enough to give all of my students, no questions asked, so that I wouldn't have to worry that one of my kiddies can't afford a binder or pens or paper.

5. A massage.

6. A year-long membership to the ultra trendy yoga studio in my neighborhood. I really, REALLY want them to do a Groupon.....

7. Detailing for my car.

8. A pair of Hunter rain boots. Love.

9. This super funky desk from Crate and Barrel. Such a cool way to display my book collection.

What's on your wish list right now?

Pet Insurance?

2011-08-29T11:16:00.004-04:00

If you have pets, do you have pet insurance? Why or why not?

I'm looking into getting pet insurance for my cat. The plan I'm looking at costs $22 per month and covers costs incurred because of an illness or injury, and has some additional benefits (takes $250 off of boarding fees every year, for example). So it won't cover my annual visits or rabies shots, but if my cat came down with an illness or was injured, it would pay 100% of the costs of treating the illness or injury.

Does that sound reasonable? What are your feelings about pet insurance?

Frugal Food: Odds and Ends Pasta

2011-08-24T19:42:00.002-04:00

Sunday night I was working on a home improvement project (not the chair, a bookshelf that I was able to breathe some new life into) and was at a loss for what to have for dinner. I had nothing prepared, so leftovers were out. It was pouring rain, so I didn't want to go get takeout or groceries. And I HATE paying delivery costs, so that was out, too. I snooped around in my fridge and freezer and threw together a very tasty meal from from a bunch of leftover/forgotten odds and ends.

Here's what I had:

- A frozen chicken breast

- About 1/3 of a bag of frozen shrimp

- A package of frozen spinach tortellini

- A can of diced tomatoes

- A jar of marinara sauce

- A plethora of spices (this was before the earthquake destroyed my spice collection)

Here's how I used all that random stuff to make a meal:

- I opened a bottle of wine and took a few big sips (this step is optional)

- I defrosted the meat and baked the chicken breast at 400 for 45 minutes

- I cooked the tortellini according to package directions

- I shredded the chicken and tossed it into the tortellini with the defrosted shrimp

- I poured the sauce and half a can of tomatoes into the pot with the meat and tortellini

- I added some crushed black pepper and a ton (that's a technical term) of crushed red pepper

- I heated and stirred

- Voila!

I ended up with a sizable pot of a sort of Italian gumbo.* Delicious! So delicious I might have hidden the leftovers from T...oops! And a really good stretch of my food dollar - I didn't purchase a single new ingredient for this meal (actually, it turned out to be 3 meals) and was able to use up a bunch of stuff that might otherwise have been forgotten about and thrown away.

This just goes to show that creativity = frugality. Or frugality = creativity. You decide. I hate math :)

*FYI - If you're doing Weight Watchers this recipe yielded three servings at 10 PointsPlus each. Not bad for a quick dinner!

I Did a Nifty DYI Project and There was an Earthquake Today

2011-08-23T17:37:00.007-04:00

My furniture is all hand-me-downs and cheap-o stuff I got in college. Which is fine. Except...some of it really isn't my style. At all.

Since I don't really have the funds to buy new stuff, I've been trying to rehab some of the things I have. I thought I'd share my most successful project to date:

This is my shabby, worn out desk chair. It's not so awful, but it's blue (which doesn't match my living room, which is where the desk is now) and the fabric is getting stretched out. I bought a yard of fabric for $4.19 and borrowed my teacher friend's industrial strength stapler and this is what I ended up with:

I think it looks pretty decent! The chairs I considered purchasing as replacements ran between $100 and $150, so I saved myself a pretty penny, too.

In other news, there was an earthquake today! It was my first day back at school and I was chatting with a friend in her classroom and all of a sudden we heard a really loud sound, like an old air conditioning system kicking on. Then all at once the ground started to shake - pretty hard - and the power went out. We ran for the doorway and a few seconds later the shaking stopped. When I got home I had pictures and knick-knacks smashed all over my apartment and books all over the floor - they had fallen off the shelves. My spices had also crashed all over my kitchen floor.

My friends in Baltimore felt it and so did my mom in Trenton, but my sister said she didn't feel anything in NYC.

What a day!!!

Revolution, Not Reform

2011-08-16T11:53:00.002-04:00

Last night I watched the HBO special about Gloria Steinem, Gloria: In Her Own Words. At the very beginning of the documentary, Gloria remembers back to her first days in New York when she had to sleep on friends' sofas because she was having a hard time getting her own apartment. She had the money, but she was a single woman looking for her own place in the late 1960s. Even in progressive New York City it was hard to find landlords who would rent to single women at the time.

I try not to let my politics seep into this blog, but Gloria Steinem is one of my personal heros. Regardless of your ideas about feminism and the women's movement, I think it's very important to appreciate the revolution that has taken place in the past forty years. The fact that I am writing about saving, spending, and investing my own money on this blog is a product of the very hard work that women like Gloria undertook a generation ago.

I could go on about this, but I just wanted to take a moment to remember that it didn't used to be a given that women would go to college, start a career, and make financial lives for themselves. In historical terms, this is a new phenomena, a paradigm shift that swept in and revolutionized women's lives very, very quickly.

And I am grateful.

August Goals

2011-08-11T16:09:00.002-04:00

As I mentioned yesterday, I'm going to go back to a system of posting monthly goals. Even though I'm a little late to the game this month, this is what I want to work before September:

1. Pay $1100 towards my car loan

This will actually happen on September 2, but I need to put it in the budget now; September is a 3-paycheck month for me, but because of the way I budget that first check will actually be the "extra" one. It's starting to look a little unrealistic that I'll get the car loan paid off before the end of the year, even with this big payment. This is a discussion for another post....

2. Get Freedom Fund back up to $1000

To put it simply, I have *sucked* at keeping my Freedom Fund fully funded recently. I've been using it for non-emergencies and this needs to stop! I'll have extra money on my next paycheck that I will put into it to get it up to an even $1000.

3. Stick to $200 clothing budget for back-to-school

Again, I'm going to have extra money coming on my next paycheck and I really need some wardrobe updates. I want to use $200 on some new clothes. Yes, I could be putting this money towards my car. No, that's not what I'm going to do with it. I'm over it.

4. Stick to $75 budget for classroom materials

I'm moving to a new classroom this year and I definitely need some new materials. These will be tax-deductible expenses, but I still need to stick to a firm budget.

5. Look into counseling/therapy

I've come to the conclusion that I am a little lost in some areas of my life right now and may need professional help. Quarter life crisis perhaps. I'm going to look into what my insurance covers and possibly meet with a counselor. Possibly. I'm not crazy about the idea of this, though.

6. Purchase two Christmas gifts

This year, I'm going to try to buy a few Christmas gifts every month so that I don't have to shell out a ton of money in December. We'll see how it goes.

7. Go back through closet to find more clothes to donate/sell

I've gone through my closet several times in the past couple months but I still think there's more to purge. I need to get ruthless; if I haven't worn it in a year, it's gone!

8. Go back through pile of clothes to be donated to figure out what can be sold

I have a huge bag of clothes by my that I had planned on donating; I'm still going to donate about 75%, but a Plato's Closet just opened by my parents' new house. If there's anything in the pile that can be sold, I want to try to make few bucks off of my wardrobe cast-offs.

9. Lose 5 lbs.

This is a bit of a reach. But I think I can do it. Honestly, I'll be happy if I can get my weight below 150 lbs.

10. Exercise at least two times each week

This is really unbelievable, but I've actually been doing really well with exercise recently. And what's more is that I'm enjoying it. I want to keep it up.

Yikes, this list looks a little long! But most of these can be accomplished in one hour or less. Wish me luck!

I'm Back!

2011-08-10T17:01:00.002-04:00

I just got home this morning from a week-long mini vacation with my sister. It was amazing to get away for a little while, for a lot of reasons.

One of them is that I'm feeling re-energized about personal finance again. I was going through a period of the ho-hums with my money ("ugg, why do I have to calculate my spending again," "it's so annoying to think so hard about ever purchase"...that kind of stuff) but now I'm ready to get back on track. I've been spending way too much money recently, so I need to get recommitted to my budget and get my ass in gear about paying off my car.

I've thought about it a lot and I think I'm going to go back to posting monthly goals. This time, I'm not going to write them just to write them. I'm going to really think about what's important, make a commitment to a few select priorities, and keep them in the forefront of my mind throughout the month. My goals for August will be up tomorrow (a little late, oops!)

But for now I'm going to relax. I had a long drive back this morning then I had to have a very painful skin surgery on my back...and to make matters worse I think I'm getting a sore throat :(

I've missed you guys!! Leave me a comment to let me know what's going on in your world right now...

Bargain Queen

2011-07-26T20:25:00.003-04:00

That's me - the bargain queen.

Of course, I love a good sale, but I mean bargain as a verb, not an adjective. In other words, I've recently come to realize that I'm an expert negotiator of prices. A few recent examples:

My coffee table. I found a perfect condition West Elm Parson's coffee table on Craig's List for $150. I negotiated the seller down to $125.

My cable bill. My bill recently shot up to $117 for basic cable and Internet. I called Comcast and was able to get the bill knocked down to $90 per month, but I also was able to get HBO thrown in for free for six months (hello Boardwalk Empire).

My latest vintage purchase (a *gorgeous* black clutch with gold accents). There are a couple of small tears on the inside of the bag, so I was able to negotiate the price down to $20 from $24.

So what are the keys to successful price negotiation? This is what has worked for me:

1. Be willing to ask

This is the most important tactic of all. My sister was shocked when I asked about getting a price reduction on the clutch and was totally surprised when I got the deal. It never, ever hurts to ask for a price break. The worst you can hear is no.

2. Find a bargaining chip

Speaking of the clutch, my success in that negotiation was due to the slight tears in the bag. It was my bargaining chip and was difficult to say no to. My bargaining chip with the coffee table was the original asking price; normally, fair price for used items is one-third of the retail price and that guy was asking half. Do your research and present a compelling argument for a price reduction.

3. Be willing to walk away

If you find a solid bargaining chip and ask for a price reduction and the seller isn't willing to negotiate, my advice would be to walk. If your bargaining chip is questionable and you really want the item, you might reconsider and go back for it later. This is a personal choice, but if I know I have a strong case for a reduction and the seller won't negotiate at all, I always walk (this happened recently with a desk I wanted on CL. Curses). I don't want to do business with people who won't be reasonable.

4. Mention personal, endearing details

When I called Comcast about my cable bill, I mentioned that I'm a school teacher and that paying over $100 per month for cable is simply too much. Teaching is a notoriously underpaid profession and people tend to respond to favorably. But regardless of your profession, dropping personal details into the conversation never hurts and makes your negotiation less faceless to the person on the other end.

5. Schmooze and smile

Before asking for a price reduction always be sure to pay a compliment. The quality of the goods; the layout of the store; the friendliness of the employees. I'm also always very thankful to the employee when I get the reduction I'm asking for - I've even gone so far as to contact managers to pay the employee that I worked with a compliment.

6. Be open to non-monetary deals

My Comcast bill didn't come down as much as I was hoping for, but throwing in HBO for free definitely appeased me. Sometimes, employees don't have the authority to grant a discount, but they can give you a voucher or certificate for your next visit. And when you get right down to it, the point of negotiating is to get more for your money, so that's why I find non-monetary deals to be worth the effort, even if I don't get exactly what I'm asking for.

Some people think negotiating is a hassle, but I think it's totally worth it. Do you negotiate prices? Did I leave any important tips off the list?

Are You an Iceberg or a Snowflake?

2011-07-19T18:10:00.003-04:00

I'm not sure where I heard about of these concepts (maybe Dave Ramsey?), but I know I didn't come up with them: the "iceberg" approach to paying off debt/saving or the "snowflake." Have you heard of this?

Basically, if you're more a believer in the "iceberg" method you like to seriously save on the big things (house, car, insurance, etc.) and take big chunks of money every so often to pay off debt or save, as opposed to the "snowflake" method, which is more focused on saving on all the little stuff (no more Starbucks, cook your own meals, etc.) and throwing those small savings at debt/savings. Ideally, we would all do both and to a certain extent I think most people in the PF world do. However, I also think we all fundamentally fall into one camp or another.

I do. I'm an iceberg.

I would SO much rather work more and throw large chunks of money at debt than try to scrimp on every purchase. Why? Part of it is the "pain" factor. To me, it's a lot more painful to deny myself every day but then have extra money every month to throw at my debt than to work just a little more and end up with a BIG extra payment every so often. Also, though, it's the I-need-instant-gratification factor. It's not going to give me a sense of accomplishment if I see my debt go down by $100 every month for five months, but if I see my debt go down by $500 with one keystroke because I got a stipend for mentoring new teachers....that gets me excited and keeps me motivated.

That doesn't mean I'm necessarily frivolous day-to-day; I mostly make my own coffee and meals. I use a refillable water bottle instead of buying bottles. I color my own hair and have hand-me-down furniture. But if I want to go out and buy a new pair of work pants, a book, and a vintage handbag, then a round of drinks for my friends on Saturday afternoon (true story from last Saturday) I don't want to agonize about it. I don't want to scrimp and get into an internal battle with myself* about spending the money. I want to happily spend a pleasant afternoon shopping and drinking because I know I have A LOT of extra money coming in soon to move me towards debt free.

In the end, you have to pick a method that works for you. The important thing is to be working towards your goals, not so much the exact route you took to get there.

So what about you? Are you a "snowflake" or an "iceberg"?

* Thanks to my expert negotiating skills, I was able to get the vintage bag for $20 instead of $24. So, even though I wasn't battling myself, I was kinda battling the girl behind the counter :)

All Quiet Around Here....

2011-07-18T19:13:00.002-04:00

I haven't posted in a while because I really don't have too much to report! There won't be any real financial excitement* until August when I start getting my extra pay for my summer programs. That's when I'll be able to wipe the car loan off the books!

I'm starting to look ahead a little bit (shocker) and I'm just not really sure what my priorities are (again, shocker). I supposed I'd like to build up a pretty solid Freedom Fund, but I'm also itching to start seriously contributing to my Roth. Any thoughts?

Oh, and my sister and I are planning a short beach vacation for the beginning of August. It should be pretty cheap because her boyfriend's mom works for Marriott and is able to get us a great rate on a room. I'm excited to get away for a while....

*I'm referring to good financial excitement. You never know when Murphy might strike!

Five Things

2011-07-10T20:40:00.004-04:00

A lot of my favorite bloggers like to do "five things" posts, especially on Fridays. Here's my first attempt at five things:

Five things I'm proud of:

1. Paying off two credit cards, a student loan, and (almost) my car within five years of getting my first job.

2. Getting my bachelor's degree in three years and my master's in one.

3. Choosing a career as a teacher, even when so many people told me I'd get fed up with the low pay and lack of respect.

4. My ability to put people at ease.

5. My hair. I just can't help being a little vain about it :)

Five things I'm ashamed of:

1. My lack of body confidence.

2. How much I love the Real Housewives of NYC.

3. My fear of commitment.

4. The fact that I don't exercise.

5. My lack of knowledge of world history. And I'm a social studies teacher! Ahh! But I majored in American history and placed out of my non-Western history courses...so I basically know nothing about the history of Asia, the Middle East, and South America. It is seriously shameful.

Five things I'm actively trying not to care about right now:

1. The size of my thighs.

2. Time. I need to stop caring so much what time it is when I'm having a good time.

3. Money. I have a plan to pay off my car and I'm now automatically saving $400 per month. There is no reason for me to be stressing so much about money.

4. What Kate Hudson and and Victoria Beckham will be naming their babies.

5. The fact that Mad Men won't be back on T.V. until 2012. I'm really trying not to think about this as an end-of-summer ruiner....but....it SO is! Mad Men my back-to-school saving grace!

Tell me five things about you!

Wherefore Art Thou?

2011-07-07T13:48:00.003-04:00

A few of my favorite PF bloggers have been MIA!

If you read this Small Steps for Big Change, Always the Planner , Windy City Blues, Frugal in My Forties, and My Open Wallet know that you are missed!

In other news, I'm waiting on two large reimbursements from my school district and the College Board. I just had to transfer money from my Freedom Fund to cover my credit card bill. Grrr, I hate that!

But - my summer program starts soon so the extra big paychecks will start rolling in around the end of the month. And hopefully I'll have my reimbursement checks by then. Hopefully...

Nothing much else to report! Hope everyone is planning a great weekend :)

Free Solutions to Bothersome Problems: Love It!

2011-06-28T21:17:00.002-04:00

I don't know about you, but sometimes I go through really frugal phases and other times I find myself in really spend-y phases. Right now I'm sort of in both at the same time. On the one hand, I desperately want to update my apartment. It feels so college! My furniture is basically all hand-me downs, nothing matches (I don't even have a completely matched set of sheets!) and I'm ready for my living space to look a little more grown up. So I'm looking at some reasonably priced new furniture and decorative pieces. I think I can pull off the whole makeover I want to do for about $500, which I plan to spread over a few months.

On the other hand, I'm SO close to paying off my car and want to really pinch pennies to make the payoff happen by the end of the summer. So at the same time that I'm drooling over a new desk and bookshelf, I'm trying to figure out some free ways to do some fixing up. For example, I really needed to get my teeny tiny bathroom organized and I just couldn't figure out how to do it without buying about $50 worth of organizational bins and boxes at Target, and that's just $50 I really didn't want to spend. But tonight I had an epiphany and did a complete bathroom reorganization for free! My solution? Flowerpots.

I had a bunch of matching flower pots in my closet that I had used for some plants I received as gifts when I first moved into my apartment, but they've been sitting idle for years. Tonight, I cleaned them out and voila! The perfect bathroom organizing tools! I used one for my makeup, one for my hair products, and one for tampons. I also pitched a bunch of old products that I'm not using and now my bathroom is totally organized and really pretty, too!

This was a free solution to a home design problem that's been bugging me for two weeks. I feel like a genius! What brilliant, frugal ideas have you come up with recently?

Big Payment on Car Loan!

2011-06-22T17:48:00.002-04:00

I just made a $1200 payment on my car loan!

That is all :)

I Didn't Run a Marathon. I Didn't Sail Around the World. But I Did Pay Off a Pile of Debt. What, You're Not Impressed?

2011-06-18T16:31:00.002-04:00

For a society that worships wealth and accomplishment, we certainly don't celebrate the skills, dedication, and day-to-day grunt work it takes to become financially independent.

But what about the normal people who work hard, budget, scrimp and sacrifice every day to get out of debt and build wealth the hard way? Why aren't we impressed at a party when we meet someone who has paid off a five-figure credit card debt? Why does our society love to read and watch TV about the stuff of wealth (houses, cars, etc.) but not the process of becoming wealthy?

Paying off my credit card is hands-down the biggest accomplishment of my life so far, and I feel that way because it was so hard. Way harder than getting through college or graduate school, which most people actually laugh at when I say out loud. Why is it so hard to believe that paying off a credit card was really difficult? If it's so easy to get out of debt then why are so many people mired in it?

Do you think that getting out of debt is a big accomplishment?

Updates (+/- Edition)

2011-06-12T12:05:00.002-04:00

+ I had a great time reading AP exams in Cincinnati! It was a nice little break from my current reality.

- Part of having a great time is spending a little too much money - which I did. I only see my reading friends once a year, so I wasn't about to be pinching pennies, but I just looked at my credit card statement. Yikes.

+ I arrived home to a $200 check in my mailbox that I got for referring a friend to my apartment complex. Score!

- My rent is going up to $1007 per month starting in August. Curses.

- My personal life is a little bumpy at the moment. I feel like I'm reaching some important conclusions about myself and the things that I want and a lot of aspects of my current life don't jibe with my long-term aspirations. This may require me to make some uncomfortable - even emotionally painful - changes. Sigh. Growing up sucks sometimes.

- It's. So. Hot.

- My weight is out of control again, probably because of all the stuff going on in the previous bullet. I'm trying to lose it, but I really, really struggle with my weight these days.

+ My sister and I are planning a really fun Fourth of July in NYC!

+ Beginning in July, $200 per paycheck will be going directly to my savings account. I should have a fully funded Freedom Fund by spring 2012!

+ My check for the work I did at the reading will be in the mail by July 1, which will put me well on my way to a paid off car by the end of the summer!

+ I'm probably getting a raise this summer. (No exclamation point because the negotiations haven't been finalized yet. Keeping my fingers crossed...)

- It's. So. Hot. Seriously.

What's going on in your world these days?

I'm Back!

2011-06-10T15:31:00.002-04:00

I was away grading AP exams for the past 9 days. It was a little brutal this year - the question I graded scored, overall, very low compared to the other two questions on the exam. But I had a great time and a $1200 check is coming my way!

I'll be back this weekend with some more updates.

What About This?

2011-05-29T17:29:00.004-04:00

When I was talking to one of my coworkers the other day about something totally unrelated, she mentioned that she has her paycheck split between two accounts: her checking and savings.

What? I didn't know that was possible!

I knew that, of course, if I wanted to participate in our 403(b) plan (which I don't) that payroll would skim the money off of my pre-tax pay, but I didn't know I could split the actual direct deposit between more than one account.

It's no secret that I'm not a good saver. One of the reasons I've favored paying off debt over saving (so far) on my personal fiance journey is that I'm just not good at saving, but I've gotten pretty good at paying off debt. I think this is because I'm a natural spender, and paying off debt is, in a way, spending. You're spending the money on something responsible, but you're not holding the money, either.

Anyway, this piece of information got my wheels turning. See, I'm at a point where I really want to start saving, but I just don't trust myself to be disciplined and actually keep the money in savings, so that's why I've focused on paying off my car. But I think I've found a way that I can focus on both.

I really only need three big extra "chunks" of money to get my car paid off, and I know where they're coming from: my reader money (coming in July) and my next two "extra" paychecks, one of which is coming this September and the next of which is coming in March, 2012. So actually, on a month-to-month basis, I don't really need to worry about paying off my car from here on out.

So what I'm thinking I'll do is this: split my paychecks so that $200 comes straight off of each and goes into my Roth - thereby maxing it out from 2012 on - and the rest goes into my checking account. Apply my next three large "chunks" of money to my car to get that paid off by March, and apply all extra funds (birthday money, tutoring money, extra paychecks after March) to my Freedom Fund.

I like this plan because I know that I'm basically tricking myself into saving, and I'll be saving a decent amount of money at that. I also have a very manageable way of getting my car paid off - actually, it'll be paid down to only about $1,500 by year's end.

What do you think of this approach?

Financial Fails This Week

2011-05-27T19:07:00.004-04:00

This week sucked, financially speaking:

Exhibit A: After my colonoscopy Monday, I was desperate for a bagel. T took me to the bagel place right from the doctor's office, we parked outside, but neither of us had quarters so we just popped into the bagel shop without feeding the meter (you know where this is going). We were in the bagel shop for less than five minutes and I got a f*cking parking ticket - $40!!!! Dammit.

Exhibit B: Yesterday was T's birthday, so I made him a carrot cake. Or, I tried. The baking part went fine, but the flipping the cake layers out the pans part....not fine. After an hour and a half of work, I had to go out to the the store, buy all new ingredients, and start all over. Dammit.

Exhibit C: My car needed an oil change, so I hunted high and low for the best deal and a coupon. I found a place on my way home from school with a killer coupon - $20 for an oil change, tire rotation, etc. Except that while my car was being checked out, they discovered that my rear brake pads were toast. When I got my front brakes done in the winter, they warned me this was coming, but I didn't realize it was this dire. So my $20 oil change turned into a $200 oil change and brake job. Dammmmmittttt.

Luckily, my pool opens this weekend so I'm going to get into my bathing suit and catch some free rays while reading my free library book. After this week, free is all I can afford :/

Rules

2011-05-23T20:35:00.002-04:00

As a Type A person, the world seems (to me) to be filled with rules: get straight As. Go to college. Get a job. Find a husband. Have a baby. Buy a house. Lose the baby weight.

When I got serious about my finances a few years ago, a whole new set of rules popped up: pay off debt. Build an emergency fund. Save for retirement. Save for a house. Don't inflate your lifestyle. Don't finance a car. Keep a budget.

But it occurred to me today that, actually, I don't have to do anything.

I don't have to get married. I don't have to buy a house. I don't have to lose the baby weight.

Similarly, I don't have to save my money. I don't have to have a retirement fund. I could finance a Mercedes if I want to. Or I could save my money for something totally different, like travel. Think of this: if I really wanted to, I could quit paying off debt and just stuff all my extra money into a travel fund every month, then take one or two really big trips every year.

To me, this was a revelation. I'm sure to the free spirits among us, this was just a normal Monday afternoon musing. And I'm not saying that I'm upending any of my plans, financial or otherwise. Yet.

But I think I really need to start questioning why I'm making the decisions that I am. Am I paying off debt because I'm following the rules? Or because I actually want to be debt free? Am I saving for a house because that's what I'm supposed to do, or because I actually want to be a homeowner?

Also, there's something very freeing about the idea that I can choose differently. That maybe there aren't as many rules as I thought, that I can change my mind.

Do you follow the rules, or make your own?

Not Much to Report...

2011-05-22T11:02:00.002-04:00

I'm having a very financially uneventful month. I'm not going to make any progress on the car debt because I have a lot of other expenses coming up, between T's birthday and my trip to go read tests and a few other major social events. So, I guess I'll be happy if I break even!

Other than that, I'm stuck inside eating soft foods today because I'm having a colonoscopy tomorrow morning. Seriously, ewww. But after tomorrow, the doctors should have some firm answers about why I got so sick last month.

Hope everyone else is doing well...and post something today if you can...I have a lot of time on my hands :/

My Thoughts on Second Jobs

2011-05-10T21:25:00.002-04:00

Trent over at The Simple Dollar just wrote a great post about second jobs, and it's an issue I have a few thoughts on, too. Since I started working as a teacher I've always had a "second job" of sorts. I coordinate an after-school tutoring program and work as a tutor in another. If I'm not doing either of those jobs, I'm writing curriculum or teaching summer school. Today, for example, I worked from 2:30-6:00 on coordinating today's after school program and getting ready for tomorrow's. I definitely put in enough hours in these programs to consider them a second job. Trent's post really focused on how difficult it is to take on a second job and maintain your focus on the first.

My opinion about second jobs is pretty simple:

Is it exhausting to work two jobs? Yes.

Is it worth the energy? Absolutely.

I was extremely surprised to see how many commenters were negative about the idea of taking on a second job, ostensibly for the purpose of paying off debt or saving for something big (the person who wrote the original note to Trent that sparked the post didn't give too many details about her financial situation.) In my opinion, taking on a second job is the single most important thing you can do to advance your financial goals, even more important than cutting spending. Of course, that's a debate in and of itself, but I feel very strongly about increasing income as a means of achieving financial goals.

I have three simple reasons for being in favor of second jobs:

1. While cutting spending works, it works only so fast. Taking on a second job will give you a big boost in the right direction quickly and tangibly. If every two weeks you're raking in an extra $100-$200, you can immediately see that debt go down, rather than painfully cutting every luxury from your budget just to squeeze an extra $100 out of your income every month.

2. Second jobs can serve the dual purpose of increasing your work experience and building your resume if you choose the work carefully, thus allowing you greater earning potential in the future.

3. If you're working a second job, you have less time and energy to spend money. You kind of just want to go home, eat dinner, and go to bed.

Number three on my list is probably the most controversial. A lot of people would argue that this is no way to live your life. I agree. Which should motivate you to suck it up and get your debt paid off or your down payment saved up for so you never have to live this way again.

Of course, I do have certain stipulations about what type of second job is worth the time energy. In my opinion, a second job has to pay a relatively substantial hourly rate, have a flexible enough schedule that you're able to continue working at your first job, and confer some type of professional benefit. If you're working for minimum wage at a job that in no way advances you professionally - or that you don't find personally interesting or fulfilling - it's probably not worth the energy you're putting out. But keep looking - great second jobs are out there!

What are your thoughts on second jobs?

Stuff I Don't Get, Financial and Otherwise

2011-05-08T15:01:00.004-04:00

Sometimes, the world around me baffles me. Here are a few examples:

1. People who think nothing can go wrong. Ever. And because they think nothing can go wrong, they have no financial exit plan.

2. Dave Ramsey's view on credit cards. If he's so confident that he's teaching people sound financial principles, then why does he worry that they'll run the cards back up?

3. People who don't bag their own groceries. It happens every week. I get behind some doofus at Trader Joe's who just stands there while the checker scans their food, then stands there - doing nothing - while the checker bags their groceries. Why, oh why not bag as the checker scans?

4. The price of movie tickets.

5. My colon and its ongoing capriciousness.

6. People who don't like credit rating agencies. Obviously, there are some aspects of the way that credit scores are computed that aren't perfect, but I much prefer the system we have now to the one we had in the past, a system that relied on only three criteria: rich, white, male. Call me crazy, but I think our current system is way more fair.

7. Dust and its persistence in accumulating in my apartment. Where does it all come from?

8. The fact that Mad Men isn't coming back for its fifth season until 2012. How will I stand the wait?

9. People who drive Hummers and complain about how expensive it is to fill up their tanks.

10. Sex and the City 2. Just...why?

Any mysteries you want to discuss?

Three Great Books I've Read Recently

2011-05-02T18:50:00.002-04:00

I don't discuss it very much here, but I read. A lot. Like, a lot a lot. I really like non-fiction, especially the Malcolm Gladwell-type non-fiction that illuminates some aspect of life I've never considered before, or at least that I have considered recently. Interestingly, I don't have much interest in personal finance-related books. I've tried to read several and I don't think I've ever gotten through one, cover-to-cover. Frankly, as far as I'm concerned, most of them are boring and offer no new information. My bloggy people give me advice that's just as good - and deliver it in a much more entertaining format - than any of the "experts" out there.

But I have a passion for fiction. I love getting caught up in a really great story and being swept up into a world that is not my own and never will be. Someday, I hope to write fiction, maybe even get something published. It's my secret dream.

Recently, I've been reading some really great books and I thought I'd share them here:

The Paris Wife by Paual McClain

This is a novel about Ernest Hemigway's first wife, Hadley Richardson. Most of the novel is about their time in Paris, surrounded by other leading intellectuals and literary geniuses of the 1920s - including Scott and Zelda Fitzgerald. I really love historical fiction, and this one kind of reminds me of Loving Frank by Nancy Horan and American Wife by Curtis Sittenfeld, books that imagine the lives of the wives of "big" men. Very captivating, somewhat heartbreaking. Just wonderful.

Reproduction is the Flaw of Love by Lauren Grodstein

I actually read Lauren Grodstein's second novel, A Friend of the Family, before this one and both were phenomenal. This one is about a guy and his girlfriend awaiting the results of a pregnancy test. This book is also significant for me because it's the first book since Catcher in the Rye which features a male main character that I actually find relatable. Grodstein's writing style is decidedly unpretentious and totally engrossing. I recommend both novels - highly.

Love is a Mix Tape by Rob Sheffield

This book is actually non-fiction - a memoir, although Sheffield doesn't label it as such. Sheffield, of Rolling Stone fame, looks back on his life through a series of mixed tapes. Most of the book focuses on his marriage to his first wife, Renee, who died suddenly. Again, a heartbreaking work of genius, especially for those of us who remember the significance of a mixed tape.

In case you need a break from the PF world, check one of these books out. You won't be disappointed.

The Debt Blahs

2011-04-30T10:46:00.003-04:00

Yesterday I made another $300 payment on my car - the loan amount is now below $4,000. Yah!

But I'm kind of getting into the "debt blahs" with my car loan; I'm at the stage where I've paid off a substantial amount of the loan, but I still have a pretty long way to go - and I just want it paid off now! Realistically, if I keep up the pace I'm working at that debt will be toast by August. It will be so nice to be starting the new school year without a car payment, and, at that point, I'll be chucking tons of money into savings.

So close, yet so far away....sigh....have a great weekend!

Sometimes I REALLY Love Renting

2011-04-27T19:05:00.002-04:00

It's my opinion that one of the biggest financial divides between my generation and my parents' generation our respective opinions on the value of homeownership.

To my parents, the question of renting versus buying is a no-brainer. Buying a home is the obvious choice. While there are numerous arguments to be made in favor of home ownership - some financial, some non-financial - I think my parents are such vehement proponents of buying a home because of personal experience. They're on their fifth home, and they've always turned a very big profit on their home sales. It's tough to argue with that type of experience, regardless of the current scary headlines about rampant foreclosures and people being stuck in homes that they're upside down on.

My sense is that my generation will approach home ownership much more cautiously than my parents' generation. I know a lot of people who are planning to be renters forever - not because they can't afford it, but because they don't want the risk and responsibility of entering into a mortgage. And a big part of me - while at the same time intellectually understanding the arguments in favor of homeownership - kind of wants to rent forever, too.

A small, recent example: when I returned home from hospitalization #1, my mom and I discovered a gas leak in my apartment. It turns out the gas line to my stove needed to be replaced, but when my building servicemen were investigating the situation, they concluded that I also needed a new stove because the dials on my old one were getting stuck and allowing small amounts of gas to escape, even when the stove was off. I got the gas line replaced and a brand new stove - brand new! - at no additional cost of time or money to me. Every time I look at that beautiful new stove, renting looks pretty rosy. (It also helps that my apartment is in a prime neighborhood...like, tourist destination good.... and is rent-controlled...but that's a whole other post!)

I'm sure I'll change my mind someday and genuinely want to become a homeowner. But for right now, I love renting. Sorry mom and dad.

Lessons Learned from a Health Emergency

2011-04-20T14:01:00.003-04:00

My recent health ordeal began two Tuesdays ago. I woke up in the morning with some pretty severe pain in my lower back that I had never experienced before. I took some Advil and went to school because I had a busy day ahead, including an after school commitment to read the mock AP US history tests. By the end of the day I was in so much pain I backed out on reading the tests and went straight home; I laid down on the couch and fell asleep for about an hour. When I stood up to use the bathroom, the pain had shifted to the right side of my abdomen - in a big way. Immediately, I was frightened by how serious the pain had gotten. It felt like a cement balloon had been blown up on the right side of my abdomen. Within a few minutes, I started getting chills - fever was setting in.

I called my friend and explained what was going on - she immediately came to my apartment and drove me to the emergency room. Luckily, I got right in to see a doctor without a wait. The doctor was pretty sure it was appendicitis, but a CT scan revealed that a portion of my colon was seriously enflamed and infected. In fact, it was so swollen it was very hard to see anything, like what might be causing the infection. I had to be admitted to another nearby hospital at 3 AM because the doctors were very concerned about the severity of the infection.

I was immediately started on IV antibiotics and some very heavy painkillers which made the next three days go by in sort of a blur. Luckily, I responded very quickly to the antibiotics and the infection started to clear. That Friday (two Fridays ago), my parents drove down to VA and I was released from the hospital to finish my recovery at home. Yah! The doctors still weren't sure what caused the infection, but because the pain was pretty much gone and I was eating, they thought I'd be ok.

Wrong-o.

Well actually, I was ok - at first. I slept through the night that Friday, ate a normal breakfast and lunch on Saturday, and took the oral antibiotics without a problem. Until Saturday night. It started with a little mild nausea while I was watching a movie with my mom. Then I threw up a few times. Then I started throwing up every half an hour; I couldn't even keep water down and I definitely couldn't sleep. My mom called the doctor at 2 AM and he insisted I go back to the emergency room because I was becoming dangerously dehydrated.

So back to the ER we went. I was actually happy because after getting some anti-nausea medicine and a lot of fluids, I was able to sleep. I was re-admitted to the hospital for another two days, during which time I spiked a high fever, had another CT scan done, and broke out in a terrible rash from one of the medicines I was getting (we still aren't sure which one). But by the end of the second day I was doing much better again and the doctors had found another oral antibiotic to let me finish up my recovery with that wouldn't cause such serious nausea and vomiting. So I was released from the hospital again with strict orders to take the rest of the week off of school to finish healing.

As of right now, I'm doing ok. I still feel a little discomfort and bloating on the right side of my abdomen, but I finished the antibiotics without incident and am going back to the internist next week for a check-up. Also, I have to go back to my GI doctor for a colonoscopy to get a final diagnosis of what caused the infection, but they need to wait six weeks to be sure my colon is fully healed from the infection. There are a whole host of possibilities in terms of what caused the infections, and frankly, some of them are pretty scary. But I won't know anything until the colonoscopy is done, so I'm just choosing not to think about it for the moment.

So what have I learned from all this? A lot, actually, and if you've read through this whole post, thanks! I'll keep the lessons learned brief:

1. If you don't have health insurance because you think you're young and healthy, you're gambling with your financial future in a very big way

According to my health insurer's website, the total cost of two ER trips, two hospitalizations, two CT scans, and an ambulance ride would have been just shy of $20,000, not including all the prescriptions I had to fill - but blessedly, my total out-of-pocket cost will be $70. I'm 26. Until two weeks ago, I was in perfect health. If I had had to pay for this (completely unexpected) care out of pocket, I would be in financial ruins right now. Seriously, you need health insurance. Seriously.

2. Be a hard, responsible worker and don't waste your sick days

I missed a week and a half of work, but because I've developed a reputation as a hard worker, no one questioned my integrity when I had to back out on a number of commitments. In other words, my principal and co-workers understood that if I was taking that much time off, I was really sick, and many people really stepped up to help me out. I also didn't have to worry about missing any pay because I have a whole bunch of sick days stored up for this type of situation. Both of these factors really took a huge weight off my shoulders when I was trying to get better.

3. Cultivate good personal and professional relationships with at least some of your coworkers

While many of my co-workers offered to step in and help me out with my school responsibilities while I was recovering, my department members were especially helpful in devising substitute plans, getting messages to my students, and just making sure my classroom needs were taken care of while I was away. I've spent the past four years developing close personal and professional relationships with my department, and they were more than happy to step in and help me out in my time of need. This experience has shown me how invaluable those relationships are, and I just hope I can repay the favor!

4. Get renter's insurance

When I returned home after my first hospitalization, my mom discovered a gas leak in my stove. The night I returned home from my second hospitalization, the building had to be evacuated because the fire alarm was blaring. Neither of these situations turned out to be serious (thankfully) but the last thing I would have wanted to worry about while I was recovering was how to replace all my stuff if a disaster had occurred.

I guess I could sum up everything I've learned from this experience in the following statement: Be prepared. I never thought something as serious as this would happen to me, but I'm so thankful that I had the social and financial resources to deal with this emergency when it occurred. The outcome could very easily have been disastrous.

Wow, this might be my longest post yet! Thank you so much for all the kind words and wishes. I'll be back to the hard-hitting financial content soon, but for now I'm just going to enjoy feeling better and spending time with family over the holiday.

What's been going on in your world recently?

Hospitalized

2011-04-13T20:31:00.001-04:00

I have been in and out of the hospital for the past week with a serious infection in my colon. Nasty business. I'm on the mend now and will be back to regular posting next week.

The Nine Inch "Diet"

2011-04-03T13:24:00.002-04:00

For the past four years, I've been struggling to lose 10-15 pounds. While I'm not clinically overweight, I'm heavier than I'd like to be. Last year, I finally had some success with Weight Watchers, but I found it very burdensome to have to count points obsessively. When I stopped the counting, I promptly gained back 10 of the 13 pounds I'd lost. Boo.

Since then, I've been feeling very blah about my weight...and I think it's impacting my quality of life. I'll admit it: I'm vain. I want to lose weight to look better. But what to do? I have literally been on every diet out there, and not one has produced long-term success (shocker). So recently, I've been re-examining my eating habits and dieting paradigm.

And then I came across this book: The Nine Inch "Diet"

I snagged it from Amazon and just got it in the mail yesterday. The basic premise of the book is simple: since the 1960s our portions have ballooned...and so have our waistlines. By switching back to old-fashioned 9-inch dinner plates, our portions (and calories) will go down....and so will our waistlines.

So I'm going to give it a shot, but I'll also expand the premise of the book to a more general principle: cut my portion sizes by one-half. No counting. No special foods. No drama. I'll eat what appeals to me, just in a substantially smaller portions (think half sandwiches and Happy Meals). I'm going to keep a food diary to track my food intake for a while, but just to keep me honest. Once I adjust to eating less, I probably won't need it anymore.

Another bonus is that I'll probably save some money on food, since small portions means the foods that I prepare will last a lot longer, which should mean less expenditures on food overall. (But obviously this isn't my primary motivation!)

Thoughts?

Funk

2011-03-29T21:17:00.003-04:00

I'm in a funk. Big time.

That is all.

My Next Paycheck Is Short By $157...But I'm Not Stressing

2011-03-25T18:59:00.002-04:00

The extra pay that I get for my tutoring programs is very complicated to actually get. I'm in charge of the tutoring program, which means that not only do I DO the tutoring, but I'm responsible for (among many, many other tasks) faxing the time sheets to the woman at our central office who signs them and sends them over the payroll department. Payroll then actually makes sure that the other tutors and I get the pay in our paychecks.

In this type of bureaucratic nightmare, things sometimes get messed up. Like this time.

I just looked at my next paycheck and it appears that one of my time sheets didn't make it...somewhere. Either to the woman at central (even though I wrote her an email and she assured me that she had all 11 time sheets) or over to payroll. One of my time sheets did make it, so I am getting about $120 extra, but the other, bigger one, which should be netting me $157, is lost...somewhere.

But I'm not stressing. Not by a long shot.

Why?

Because that money is just gravy. I'm not depending on it. Which is a really, really nice feeling.

Ever since I started teaching I've been tutoring for extra money. But because my debt was much heavier and I had nothing saved, I depended on that tutoring money. I made spending decisions around it. I bought necessities based on the assumption that that money was coming in. So if that money didn't end up coming in it would have been a disaster two years ago.

But not now.

Now, I'll just wait until it shows up on the next check to make my extra car payment. No big deal. My bills will get paid on time. My credit card won't carry a balance. The worst case scenario is that I'd pull from my savings, which I have. Everything is fine.

And that, my friends, is progress.

(I am slightly concerned, though, that one of the other 7 tutors might not get paid since a mistake was made on my check...I'm going to put out an email on Monday to make sure that everyone logs into their accounts to see if they have all their hours on their checks...but I have copies of all the time sheets, so worst case scenario is that the hours show up on the next check. Not ideal, but I did everything in my power to get my tutors paid, and I'll be writing a STRONG email to payroll to fix this situation for next time.)

Giving Plan 2011

2011-03-20T14:04:00.002-04:00

With the decision to pay off my car now behind me, I decided to pare down my 2011 goals substantially. I wanted to set some really concrete, achievable goals that actually mean something to me, and I think I've done it. One of those goals is to establish and execute a monthly giving plan, which I've been working on this afternoon.

The plan is to give between $50 and $100 per month to a designated charity of my choice. I've been working on deciding which charities to donate to, and I've come up with a pretty great list. However, I've come up just two months short; I have every month planned except November and December.

I'm looking for suggestions to plan out the last two months of the year, and I'll post the final plan when I've made my final designations.

So leave me a suggestion below!

(BTW - I donated $50 this afternoon to the American Red Cross (for Japan) and next month's charity is the Alexandria Public Library)

Crisis (Basically) Solved

2011-03-17T20:36:00.004-04:00

First, I'd like to say thank you to everyone who commented on my quarter-life (financial) crisis post. I read every comment at least twice in order to really internalize the advice I received and I truly, truly appreciate everyone's insight.

Second, I've come to my final decision about what to do with my extra cash: I've decided to pay off my car.

The decision really comes down to a combination of cash flow concerns and the age of my car. The bottom line is:

a) I want to have more cash available every month to save so that I don't have to work such crazy hours forever and

b) my car has 86,000 miles on it right now; I don't want to be making payments on a car with well over 100,000 miles on it (which is roughly where I would be at if I kept up minimum payments)

While I'm happy to be putting this decision to bed, I'm still not 100% sure I'm doing the right thing. But I realized this afternoon that no matter which of the three options I ended up going with, I would question my choice. I want to be saving, but I want to be saving a lot. So the best thing to do is get my car paid off in a jiffy so that I can move on to bigger and better things.

Now I'm off to make a $1300 payment on my snappy little Scion (tC - I do not drive the box on wheels!)

I'll post my new totals tomorrow.

I Don't Want To Do This Forever

2011-03-14T18:59:00.002-04:00

I haven't written much about this, but for the past 5 weeks I've been working at least 70 hours per week.

I have two tutoring programs going on at the same time and I'm staying after school every day until at least 5:00.

Before anyone says something like: "Oh, 5:00?! Boo hoo, you poor teacher - the rest of us have to stay at work until 6:00 or 7:00!" let me just add that this is only the time I'm actually in school. When I get home, I still have emails to return, papers to grade, lessons to plan, etc.

My work is wonderful, and I feel a true passion for teaching. I love working with kids, I love talking about social studies all day, I love giving advice, I love being a role model, I love, love, LOVE what I do.

But rewarding work is also stressful, emotionally draining, and physically exhausting. I'm not ok with the prospect of having to work a million tutoring programs for weeks on end (on top of all the regular work I have to do) for the rest of my career. This is seriously impacting my final decision in my existential crisis.

BTW - I'll be weighing in with my final thoughts on my crisis (which is rapidly subsiding into a minor case of the "I don't knows") on Thursday, so stay tuned!

That was pretty much the point of this post, but putting it into writing provided a surprising amount of clarity.

Are you feeling fed up recently? Please, tell!

This Is What I DO Know (About Money)

2011-03-11T18:14:00.002-05:00

I'm still undecided about my existential money crisis (and if you haven't thrown in your two cents yet, please do!) so while I've been thinking a lot about what I don't know about my money, I've also been thinking a lot about what I do know. I've been committed to improving my personal finances for almost three years now, and I've learned so much about the topic. There's still a LOT of room for me to grow, but in the meantime, I thought I'd distill the most important PF knowledge I've accumulated down into five short soundbites. Feel free to add your own!

1. If you don't control your money, it will control you

I got into financial trouble because I simply wasn't watching my money; I wasn't budgeting or monitoring accounts or controlling costs. Eventually, money worries were consuming my thoughts and driving every decision I made. Some people think it's a pain to keep a budget, but I like showing my money who's boss.

2. Anyone can get out of debt

I've paid off thousands of dollars in debt on a beginning teacher's salary. If I can, anyone can. No excuses.

3. If you spend everything you earn, you're a fool

If you live within your means, you'll never get ahead financially. Living below your means is the key to being reach your financial goals.

4. If you save everything you earn, you're also a fool

If you're just working to pay the bills, you're not living. We all need to determine what's really important to us (travel, family, etc.) and make sure that we're working not only to pay for life, but for living, too.

5. Spending less is helpful, but earning more is powerful

Undoubtedly, spending less is the first step in any financial turnaround. But in my experience, spending less will only get you so far. If you want to really achieve a financial goal, you'll also have to earn more. But earning more doesn't have to just be about the money; all the extra income I've earned has come with a line item on my resume. Curriculum writing, experience teaching multiple subjects, leadership experience...make your extra work really WORK for you.

What do you know for sure about money?

Advice! Please!

2011-03-07T17:15:00.002-05:00

I'm in the throes of a financial existential crisis here, and I need advice. Seriously.

Basically, here's my situation - remember how I cryptically mentioned that I needed to change my 2011 goals because "something" might be coming in my future? Well, if that "something" happens, it will be another year and a half before it comes down the pike. Which, in financial terms, means I don't have to worry about it right now. So that puts me back at square one when it comes to what to do with my extra income this year.

The way I see it, I have 3 options; theoretically, I could divide my money between all three, but I hate doing that. I like to focus on one thing at a time. Also, in order to minimize my anxiety, I want to prioritize just ONE as my financial goal for the year. If I can exceed the goal I set, great. But I need to start taking the pressure off of myself, in many areas of my life, including my personal finances. I've listed some pros and cons for each option, put I really, REALLY want your input. So please let me know what you think!

Option #1 - Pay off my car

Pros - No more car payment! Yah!

Cons - My interest rate is so low that the extra money I'm throwing at it could be doing MUCH better if invested elsewhere.

Option #2 - Get 3 months of living expenses into my Freedom Fund

Pros - A true feeling of financial freedom. I look at my lack of liquid savings as a more crippling financial factor (when it comes to emotionally feeling caged in by my money situation) than being in debt.

Cons - Kind of a "blah" thing to do with my money. Plus, interest rates suck so BADLY that my money would work much harder for me if invested elsewhere.

Option #3 - Max out my Roth IRA

Pros - A true opportunity for building wealth. Since I'm only in my mid-twenties my money has time to really grow. Plus, it's still pretty liquid - I can get my contributions any time I want.

Cons - Hmmmm. None that I can see, other than the opportunity cost of taking options 1 or 2.

So, if you were me: what would you do?

Note: With my extra income, I could completely accomplish any one of the above options but not more than one.

Ms. Moneybags

2011-03-04T19:46:00.003-05:00

I have been spending like crazy recently!

Full confession this weekend, but recently I've been going nuts with Groupon/Living Social deals and online clothing sales. In fact, I just added a shirt to my Land's End Canvas purchase from this morning via an online chat with a sales rep! (It was only $8.39, but seriously!! This madness must stop!!)

The good news is I've been racking up TONS of tutoring hours. Like, there will be $450 in extra income on my next paycheck - after taxes.

Again, I'll be posting some detailed numbers this weekend, plus the follow-up to my recent revelations.

Stay tuned, even though I've been a bad blogger recently :)

I'm Starting to Think...

2011-02-28T21:03:00.004-05:00

...that maybe it's not that important to be perfect all the time

...that it's ok to pursue goals at a slow and steady pace

...that spending money on having fun isn't naughty

...that I'm too practical

...that buying myself treats every now and then really does make me happy..and there's nothing wrong with that

...that I need to post on this blog more

...that I can fervently agree with some things experts (like Dave Ramsey) say while wholly rejecting others..and there's nothing wrong with that

...that being interested in fashion isn't shallow or frivolous

...that I should be giving more

...that I have a pretty nice life that I don't take the time to appreciate enough

What have you been thinking recently?

Is It Ok To Just BE Ok With My Debt?

2011-02-16T17:58:00.004-05:00

Is it ok if I just say: I'm fine with the debt I have left and I'm just going to make minimum payments because, seriously, I'm so sick of being in "debt payoff" mode?

Would I be a bad PF blogger?

Would I be screwing myself over in some way?

Would I be copping out?

For the record, if I may say so, I've done a DAMN good job paying off debt in the past 3 years. Let's review:

- $5,500 personal loan (i.e., credit card debt)

- $1,200 loan from my dad

- $1,400 interest-free Best Buy credit card

- $5,000 private student loan

I've been thinking recently that I really want to just focus on savings. For good. As in, not worry about my remaining student loan and car loan. Why? Because the interest rates on both are low.

But also... I just want to save.

Maybe for a trip. Or a house. Or new furniture. You know, stuff that will make me happy.

What do you think?

It's Official: I'm Stressed Out

2011-02-13T13:10:00.004-05:00

According to my doctor, I have been experiencing anxiety attacks.

You know what my response to that was?

Oh good, something else to worry about.

I went in because I've been experiencing some shortness of breath accompanied by a feeling like my heart is racing. It comes and goes and I don't faint or anything and the feeling passes in about ten minutes; I thought she was going to say I have high blood pressure (which I do) and I need something to bring it down. But she said I need to "try to relax" and if this gets any worse, I might need medication. Like, anxiety medication. And that's when my anxiety started to go up again.

When I got home I did some research about controlling anxiety without medication, and I got a bunch of unhelpful suggestions, like "exercise," "nurture your soul," "let go of the little things," etc. Obviously, if those types of things were do-able for me, I'd be doing them and I wouldn't have anxiety. So, that was a bust.

But seriously, I guess I need a new life plan. The doctor asked me if I've been worrying about anything lately, and ten different things immediately jumped to my mind. I'm not sure exactly what I'm going to do to about this, but I need to figure something out.

Has anyone ever experienced this before? If so, what did you do about it? Any suggestions would be much appreciated!

20 Financial Milestones For Your 20s

2011-02-06T13:17:00.003-05:00

I know I'm a little late to the party on this one, but I thought I'd take a look at how I measure up to Gen Y Wealth's 20 Financial Milestones for Your 20s. I must be in a list-y mood this weekend :)

Here's what I'm looking at as I close in on my 26th birthday:

#1 – Finance a dream vacation…in cash

Umm, no. But I should get on this. I feel like my 20s are passing me by without any significant experiences under my belt. Boo.

#2 – Pay off your student loans
Not quite, but I did pay off my private student loan and I've been very successful at knocking the interest rate down on my federal student loan. So, I'm working on it.

#3 – Automate paying your credit card bill in full
No, but I don't think this is an option with my credit card. I do pay the balance in full every month, though, on the due date. I'm giving myself a check on this one.

#4 – Get rid of all bad debt
Work in progress.

#5 – Build an adequate emergency fund
Work in progress.

#6 – Make your first, and last, investment mistake

Check! My big investing mistake was to delay investing. Now it hurts so much more to put money away than if I had just been making automatic investments from my first paycheck. Lesson learned.

#7 – Develop a statement of cash flows

Check! I write a new budget every month and update it every couple of days.

#8 & 9 Max out a Roth & Contribute to your 401(k)
Not even close. I have a Roth, though, and I never plan on contributing to my school district's 403(b) because frankly, it sucks.

#10 – Get a degree or certification that increases your earning power
Check! I got a master's degree in 2007 (when I was 22) that put me in a much higher salary bracket from Day 1 of my teaching career than if I had just had my bachelor's.

#11 – Take a career risk
Nope. I don't know how well this applies to my field, though.

#12 – Negotiate something

Check! I negotiate everything. See the latest example here.

#13 – Earn your first side grand

Check! I earn a couple grand extra every school year, from teaching summer school, tutoring, reading AP exams, etc.

#14 – Start a sub-savings account for an upcoming financial goal
I've had sub-savings accounts in the past, but have never followed through with keeping up with them. Maybe I need to connect this back to #1 and get on it....

#15 – Set a target retirement date
Check! 2050. I'll be 65. But for the moment, retirement seems like a pipe dream.

#16 – Monitor your credit
Check! I monitor all bills and expenses and check my credit score once a month.

#17 – Say no to a financial salesman
Check! I say no all the time. It feel like once a week - or once a day if you count all the credit card offers I throw out every time I check my mail.

#18 – Give just enough to make it hurt
Nope. This needs to be an area of focus for me for 2012.

Two Milestones for the Over Achiever

#19 – Invest $1 for every $1 you spend
Haha, yeah right.

#20 – Start a 529 College Savings Plan
Not applicable.

How do I stack up?

9 milestones met

6 milestones not met

2 milestones not applicable

3 milestones in progress

Not too shabby!

Money +/- (1/21-2/4)

2011-02-05T13:43:00.004-05:00

Here's what's been going on in my financial world for the past two weeks:

- My car required a total of $470 worth of repairs after my very stupid trunk handle incident.

+ I convinced the dealer's technician to knock off the labor charges for repairing the handle.

+ My principal agreed to reimburse me for a bunch of materials I bought for my classroom.

+ I quit Weight Watchers. I'm going to be trying a different weight loss approach. More on that later.

- I spent $100 on a few new items at Land's End Canvas.

+ Every item I bought was super-duper on sale. The best deal I got? A solid navy blue bathing suit for $16! Holler!

+ Before placing my order I checked the interwebs for Land's End coupon codes. I found one that gave me free shipping, so all-in-all I saved $13. Double holler!

+ I've been using Swagbucks for all my searching needs since Thanksgiving and recently redeemed some for two $5 Amazon.com gift cards.

+ My Roth IRA has been gaining decent ground recently. It's encouraging to see my money actually growing, at least for the time being.

- My savings account is looking pretty paltry right now.

+ But I'm getting back $350 from my taxes and my birthday is in two weeks, so I should be able to beef it up pretty soon...barring any other major emergencies

And a couple that are coming up.....

+ My after-school SAT tutoring program is starting soon - this will be a nice extra chunk of $

+ My after school HSA (high school state assessment) tutoring program is starting soon - this will also be a nice extra chunk of $

I like making these lists because, even though I feel like I've been bleeding money recently, it looks like more good financial things have happened lately than bad. What a nice rainy day thought :)

Work, Work, Work :/

2011-02-02T17:39:00.002-05:00

This week has been absolutely ridiculous, and next week will probably be worse. Ahh!

But I'll be back this weekend with something interesting. Promise!

Higher Up-Front Costs for Longer-Term Savings

2011-01-24T19:11:00.003-05:00

Something I've recently embraced as a PF enthusiast is the idea of paying more money up-front in order to save money in the long term (or get more value out of a product). I actually have two examples from the past 48 hours to illustrate how I'm making this principle work for me. And interestingly, both deal with two of the loves of my life: wine and pizza!

Example #1: Wine

Yesterday, reeling from the news that my money pit...er, car, would be costing me some major money this week, I went grocery shopping. In order to get the best possible prices, I usually go to Trader Joe's and Safeway every week. Some items are cheaper at Trader Joe's and some items are cheaper at Safeway, and luckily they are each only about a half a mile from my apartment, so going to both each week is no big deal. I had already buzzed through Trader Joe's and was on to Safeway. As soon as I walked in the store an employee approached me and informed me that today there was a major sale on wine. All bottles were 30% off, and, if you bought six bottles, you would receive an additional %10 discount. At first I immediately thought of my car costs and thought, no thanks! Don't these people know I have almost $500 in car repairs coming up this week?!

But as I shopped for my other groceries I realized that I usually go through about 2-3 bottles of wine per month on my own and frequently bring wine to social gatherings. Since it's unlikely I'm going to give up this simple pleasure despite my car troubles, why not take the discount while it's being offered? I ended up opting to get the half-case, and paid $44.03 for it. That averages out to about $7 per bottle of wine, when buying the bottles individually would have cost me at least $70. Thus, I saved money in the long-term, even though I had to shell out over $40 at once.

Example #2: Pizza

So, the first round of car repairs happened after school today. I had the brakes fixed, the battery installed, and the oil changed, to the tune of $33o. Ouch. But I was ready for that. I wasn't ready for how freaking long it took to do! I got to the shop at 3:25 and didn't leave until almost 6:00...and I had a 45 minute drive home! Needless to say, I was in no mood to cook and was way too hungry for a PBJ. I decided to crack open one of those new bottles of wine and have a glass with some pizza. There's a fancy-schmancy pizza place across the street from my apartment and I was dying for one of their specialty pizzas.

So on my way home from the car place I called to order a small pie. When the total came to $16, I balked...then decided to ask how much a large pie is. When the nice girl on the phone told me it was $21, I did the quick calculation and decided to order the large. I know that I can get 3 meals out of a large pizza, bringing the price per serving to $7, whereas I would maybe get 2 meals out of the small. Realistically, I probably would have only gotten one serving out of the small, since I would probably have just scarfed the whole thing down. So buying the large saved me at least $1 per serving, probably more. I'll bring one serving for lunch tomorrow and have another in the freezer for later use. Nice!

Now I know what you're probably thinking: TeacHer! You were just complaining about your unexpected car costs! Why are you buying pizza and wine?! You should be eating beans and rice and drinking water!

I get it: if I was really in frugal mode, I wouldn't be buying these treats at all. I'm pulling the money for these purchases out of my discretionary money for the month, so I am accounting for them. But the larger point is this: be smart about your splurges! Think about cost per bottle/serving/unit, etc. before making a final purchasing decision and be sure you're getting the best deal. Don't just go with what appears to be cheaper. Do some simple math and figure out what the actual best deal is.

What was the last really smart purchasing decision you made?

This is So NOT the Post I Should be Writing Today

2011-01-22T14:43:00.002-05:00

Yesterday I got paid and I added $350 to my Freedom Fund. Go me. I was planning on writing a post about how happy I am to be working towards my #1 2011 goal as soon as I got back from my Weight Watchers meeting (I lost 4 lbs.). Too bad I decided to stop at Target to get some school supplies after the meeting. Too bad I tried to put my stuff in the trunk when I got out of the store. Too bad my trunk was stuck and I pulled just a little too hard. Too bad the plastic handle (which holds in the wiring to the third brake light) snapped off right in my hand.

After a lot of cursing my trunk - which has had a whole host of issues ever since I got the car 5 years ago - I went straight to my dealer to investigate how to fix it. I waited for about an hour and a half and was told that the handle has to be replaced and the part is a special order item, which means I have to go back. Between the part and the labor it was going to cost $250. Which would have been bad enough...but then I got the really bad news.

My poor car needs a lot of work. The battery is practically shot. As in, at any moment it might crap out. My front brakes are also really worn down and my transmission and power steering fluids need to be flushed. Oh, and I need an oil change. That one I knew.

As my blood pressure skyrocketed, I politely pointed out that the trunk issue appears to be a major design flaw in the car and really, this isn't a wear-and-tear issue or a result of my stupidity or negligence of the car. I asked if there was any way that Scion might be able to cover the cost of the part. The technician looked into it and told me that he would only charge me for the part, not the labor. So that saved me about $110. And they washed the car for free.

So until Thursday when the part comes in I'm driving around with a taped-on trunk handle. Very sexy.

When I got home, I did some Internet research and apparently flushing the fluids in cars is controversial; since the fluids aren't a safety issue, I can put that off for a little while. So I decided to call the place that I usually get my oil changed at to see what they would charge me to fix the other issues. After some chit-chat with the owner of the place, I committed to getting the oil changed, the brakes fixed, and the battery replaced on Monday. All this work will cost me $330.

To recap: by the time this week is up I will have spent $470 on my car. So that progress I was making on my Freedom Fund? Not moving along exactly as I hoped.

But on the other hand I'm happy that I had an opportunity to get my car troubles diagnosed and dealt with before getting seriously screwed by a dead battery and that I was able to cut a deal with the technician that saved me $110 just for asking.

I'm going to spend the rest of the weekend cooking, cleaning and grading papers - that is, not spending money :/ Hope everyone else is having a great weekend!

Here's Something I Don't Get

2011-01-19T17:06:00.003-05:00

I don't get it when people vaguely say, "you know, I spent a lot of money last week so I'm going to spend less this week." And then they actually do it.

Without checking their credit card statements every day. Without setting daily spending caps until their next payday. Hell, they don't even use calculators to figure it out. They just have a sense that they've spent too much recently, so they spend less to compensate.

How the f%^$ do these people do that?

I need to track spending. I need to keep receipts. I need to check my balances at least every other day. I have to stay ON TOP of my finances. I know - to the penny - what my monthly credit card bill will be. I know - to the penny - what my next paycheck will be. And I'm constantly making sure - with a calculator! - that the two will balance. Why am I not the person who just has a sense of her spending? Why can't financial things just fall into balance for me without my constant monitoring? Why is it so much damn work for me?

In writing this I think I've actually figured out the answer to that question: I'm a natural spender. As opposed, of course, to being a natural saver.

My instinct is to spend my money, not save it. I'm naturally attracted to the idea of financing (you know, so I don't have to save). I don't have any basic sense of where my money is at any given point in time, and that's why I have to constantly monitor. I intellectually understand that I need to budget and save, but in order to do that I have to constantly battle my spend-y tendencies.

Since I teach A.P. psychology, I just have to ask the question: is this nature or nurture? Do you think that people are born as savers or spenders or are we taught to follow these behaviors? What are you, a saver or a spender? How do you think you ended up as one or the other?

Eleven in 2011

2011-01-17T18:54:00.003-05:00

So after a bit of an absence, I'm back and ready to tackle 2011. My first step is to significantly change my 2011 goals. I decided to take a different approach from the one I initially proposed. Instead, I'm going to set 11 goals for 2011. Why? Because it sounds cute :) But seriously, I need to make a major change in my financial priorities to account for the zillions of question marks looming in my near-ish future (see goal #1 below). So I just decided to scrap my original plan for my 2011 goals and start over. I'm very comfortable with the goals below and confident about my ability to make them happen.

So, here are my 11 goals for 2011. The goals that require explanation include some annotation.

1. Get $6,000 into savings by July 30, 2011

Changes are afoot in my personal life, and I need to have some cash on hand to pay for whichever life plan I decide to go with. It's very confusing and complicated, but basically I don't want money to be a factor in the decision I end up making. If I end up not using the money, I'll pay off my car with it. If I end up needing it, it's there.

2. Contribute at least $1,000 to my Roth IRA

3. Read 30 books

4. Lose 15 lbs.

5. Complete a Couch 2 5K plan

6. Take 3 yoga classes in one month

Why in a month? Because I want to give yoga a fair shot and I feel like taking classes here and there won't work. I need to see if I enjoy yoga as a practice, not as casual time-filler.

7. Cook 3 new recipes every month

8. Get a really stellar, really expensive haircut

I need a new haircut, and I want it done by someone who's the real deal and will do a good job. I'll stick with my look for now while I'm trying to accomplish goal #1 (see above) but I need to make this a priority.

9. Recycle

All the time. I'm sporadic about recycling because the system my apartment has totally sucks. So I'm going to find a recycling center nearby that I'll drop off my stuff as needed.

10. Return assignments to my students within 5 days of the due date

11. Spend $500 on new clothes

Going along with goal #8, I need to invest some money in my personal appearance. Also like goal #8, I'll wait until goal #1 is accomplished to do this, but it's happening. For reals.

And with that, I'll be spending the rest of the night working on goal #3!

Holy Moly!

2011-01-08T15:46:00.002-05:00

It's been a long time since my last post! In fact, this is my first post of 2011! Well, first I got slammed with back-to-school stuff, then I got sick (I still am, actually), then my Internet started seriously acting up.

I'm working on getting things under control, but I'll be back with a long post soon. In fact, I have to seriously upend my 2011 goals (shocker), so that will be my first order of business.

Hope 2011 is treating everyone else well so far!

2011 Personal Goals

2010-12-31T10:18:00.002-05:00

In keeping with my self-imposed restriction on setting more than three 2011 goals per category (financial, personal, professional), I've identified the three personal goals I'd like to accomplish for 2011:

1. Lose 15 lbs. and keep it off

So all that weight I lost last year? Save a few pounds, it's almost all back :( So this year, I want to lose the weight - Weight Watchers here I come! - but keep it off. In other words, at this time next year I want to weigh 15 lbs. less than I do right now.

2. Complete the Couch 2 5K running program

I've attempted and quit this plan SO many times. I almost never set fitness goals anymore because I HATE exercising, but I think it would be good for me mentally and physically to conquer something that I find excruciatingly difficult. Even if I don't keep up with it after the 8 weeks is up, I'll feel a great sense of accomplishment in having given running a fair chance.

3. Find a hobby I actually enjoy - and do it regularly

I've tried many, many hobbies in the past and have many times stuck with them just to say I have a hobby. This year I want to find a hobby I actually like and do it regularly. "Regularly" is hard to define because I don't know what the hobby is yet...but I think I'd like to try one new thing every month until I hit on something I really, really like. As in, look forward to doing. Any suggestions for what I should try first?

So those are my personal goals for 2011. Tomorrow I'll post my 2011 professional goals and get cracking at achieving all of them! Enjoy your New Years festivities!

2011 Financial Goals

2010-12-29T17:39:00.004-05:00

I have a history of setting too many goals that are too challenging and giving myself too little time to achieve them. This is a recipe for disaster and has caused me a lot of frustration and disappointment in the past. So this year, I'm limiting myself to just 3 goals in each category: financial, personal, professional.

These are my financial goals for 2011. I've prioritized them in order of importance, and I've thought about them very carefully. I think that they are achievable if I stay committed, but at the same time not so easy as to be trivial:

1. Pay off my car

I will do this by paying double my minimum payment ($420) on my car every month and throwing all my extra money (from tutoring, reading AP exams, etc.) at this debt until it's paid in full. My plan is to have this goal accomplished by June 30, 2011.

2. Max out my Freedom Fund

I really, really want to have at least $6,000 in the bank, just sitting there. Waiting. For me. For whatever I want to use it for. Six thousand dollars would float me for over three months if I lost or quit my job, but realistically I'd like to have the money on reserve so use in case my car breaks down, or my cat needs surgery, or I need to move. You know, in case life happens. My plan is to have this goal accomplished by October 30, 2011.

3. Re-start monthly contributions to my Roth

Once I have my Freedom Fund fattened up, I'm going to immediately re-start my Roth contributions at the annual max-out level of $417 per month. Obviously, I won't be able to max it out for 2011, but I definitely want to get back into the swing of saving for retirement.

Reach goal: Add $1,000 to my Roth by December 31, 2011.

So that's what I'm hoping to have accomplished on the financial front for 2011. Next up: personal goals!

Financial Updates + Happy Holidays

2010-12-24T11:01:00.002-05:00

Some quick financial updates:

+ I made a $500 payment on my car today! The balance is now under $6,000 - holler!

+ My interest rate on my student loan dropped to 4.55% because I've made 36 consecutive on-time payments. Double holler!

- My Christmas and entertainment spending got waaaay out of hand and I had to pull some money from my Freedom Fund. I'll be pulling in some money from my family for Christmas and I should also be making some extra money in January for teaching the extra class, but this is a problem. Not sure how I'm going to keep my FF at $1000 and still pay extra on my car in January. Yikes.

Other than that, things have been good! I'm at my parents' house until Thursday, but I'll be posting my 2011 goals on Monday! Enjoy the holiday if you're celebrating and the weekend if you're not! Can't wait to read everyone's goals for the New Year.

A Lamp, or, Oh How Far I've Come

2010-12-19T12:26:00.002-05:00

I am extremely hard on myself. About everything. I always think that, whatever I'm doing, however I'm doing it, it's not good enough. And when I do meet my own (very high) expectations, I'm genuinely surprised. When I don't think I'm going to even come close to meeting my own (very high) expectations, I don't do it. Whatever it is, I just don't even make an attempt. Which is a really, really bad quality. But that's a post for another day.

The point is, most of the time, I think I'm doing a really crappy job on the PF front. I'm almost 26, have almost nothing saved, and I still have a student loan and a car loan. I read about so many people who are my age, have a stockpile of cash in retirement and emergency funds, can travel, buy designer shoes, and I think: I suck. And then I think: I need to try harder! I need to do better! I ignore the fact that in the 3 years I've been working, I've cut my student loans almost in half, paid off 2 credit cards, paid off a family loan, started a retirement account, and seriously overhauled my spending habits. That would be way too rational.

But then something seemingly insignificant and unrelated to PF will happen, and I think, damn, I've come such a long way. And damn, it feels good. Just such a thing happened on Thursday night/Friday morning.

I had a snow day Thursday (I know, you hate me) and another one on Friday (now you really hate me!) so my floor lamp was on pretty much all day on Thursday. I have no overhead lighting in my apartment, so if I want to be able to see after 5 PM, I really rely on my floor lamp, which I've had since my junior year of college. At any rate, Thursday night I was sitting on my couch and was smelling this faint burning smell. After much investigation I realized that one of the bulbs on my lamp was burning its plastic covering (it's one of those heinous Medusa lamps). Like, it was totally singed and was definitely posing a fire hazard. So I turned it off, unplugged it, and went to bed.

The next morning (Friday), I went to Target and picked out a new floor lamp. I paid $62.99 for it. I took the lamp home, assembled it, turned it on, and have been enjoying it every since.

This seems totally unrelated to my personal finance habits, I know. And on the outside, it is. But it's the way I was about the whole lamp situation that really made me marvel at my progress. Let's take a look at how the old mes would have dealt with this same situation:

- The old, fresh-out-of-college me would have gone to Crate and Barrel and charged a totally out-of-my-price-range floor lamp, adding to an already swollen credit card balance. I would have been momentarily happy with my new acquisition, but freaking out when it came time to pay the bills for the month.

- The crazy, I-have-to-get-out-of-debt-now-or-the-world-will-actually-end me of two years ago probably would have cried about the unexpected expense of a new lamp. Seriously, cried. Then I would have sat in the dark for a few days. Then I would have gotten sick of sitting in the dark and would have gone out and bought the cheapest and most hideous floor lamp that Wal-Mart sells, only to have to replace it in 6 months. And I would have totally beaten myself up about "caving" and buying something new.

- The I'm-so-happy-to-be-credit-card-debt-free-that-I-now-resent-having-a-budget-me of last year would have gone to Target and picked out the same lamp right-now me picked out, but I would have grumbled over the expense and wondered what type of games I'd have to play with my spending to accommodate the purchase. I was operating without a written budget at this point, and probably would have done something dumb, like only filling my gas tank halfway and praying I'd make it until my next payday before running out.

But I didn't do any of those things. I needed a new lamp. So, I very calmly picked out an affordable but still stylish model, worked it easily into my written budget, and am now enjoying it without guilt, worry, resentment, or fear. A lamp was just a lamp.

And that, my friends, is progress.

Totally Bogus Fee #1

2010-12-15T20:03:00.002-05:00

My dad loves the word "bogus." He always used it when I was little when I'm sure he really wanted to say BULLSHIT! Even though I'm 25, he still uses it frequently, like I can't handle the cussing. I think it's funny :) One of the many, many contexts in which I have heard him use the word is when it comes to fees. Bank fees, loan fees, store fees....most of them are totally bogus. Today I was reminded of another totally bogus fee in our modern society, so I decided to start a mini-series on this blog: Totally Bogus Fees.

Totally Bogus Fee #1 is the short notice cancellation fee at the doctor's office. You know, how they charge you $25 if you cancel less than 24 hours in advance or don't show up for your appointment? I get what they're trying to. They're trying to hold their patients accountable and discourage people from messing with their scheduling system. I get that. One of my number ONE pet peeves is people who waste my time. But I still thing this is a Totally Bogus Fee.

The basic principle - don't waste the doctor's time - is not what what's bogus. What's bogus is that I show up for my 5:45 doctor's appointment at 5:40 and you keep me waiting until 6:35 to just get into the exam room (for the record, it wasn't until 6:57 that the doctor walked in). So, I can't cancel the appointment the afternoon of without incurring a fee, but you can keep me waiting as long as you damn well please? I completely understand that sometimes major medical issues come up with other patients and I have to wait. That's the nature of healthcare. But charging me a fee for calling to cancel my appointment a few hours in advance when you keep me waiting every single time I come to see you is, well, totally bogus.

Also for the record, I think it's completely legit to charge a fee for no-shows. I also think it's totally legit to charge a fee for short-notice cancellations if you, the doctor, have a really good on-time record. But if you habitually keep patients waiting, just forget about the fees. Everyone else has a job and a family, too, and things come up.

In short, don't let Totally Bogus Fees make you into a totally bogus doctor.

The BIG News Isn't as Big as I Hoped :(

2010-12-08T18:19:00.002-05:00

My life has been unusually crazy recently. I've had a whole bunch of work and social commitments since the Thanksgiving break and have barely had time to catch my breath! At any rate, I think I jumped the gun a little bit in announcing that I have BIG financial news in my last post. The news is decidedly smaller than I had initially thought :(

So, this is the situation: a teacher in my department is having a variety of personal and health issues. She needs to take some time off from school, and rather than hiring a long-term sub, my principal decided that he'd rather each of the social studies teachers assume one of her classes during our planning periods. For a pretty penny, of course. I signed on to take over her seventh period class, and I'm being paid one-seventh of my annual salary to serve as her substitute for the time that she's out. This amounts to about $400 (after taxes) per month. Nice, right?

It really is, because the class is small and it's the subject I teach in summer school (world history) so I have tons of resources to work from. But when the plan was initially proposed, it appeared that she was going to be for the entire rest of the year; now the plan is for her to come back after the Christmas break. So that's why the big financial news isn't so big after all. I'll clear about $400 total from the gig, rather than $400 per month for the rest of the year.

Overall, it's still really good money for pretty minimal work. I just got really excited that I'd be able to pay off my car SUPER fast, but I'm still pleased that this opportunity came up (obviously not under the circumstances for my co-worker, but... you know what I mean!).

So, that was a little anti-climactic. But I promise I'll be back soon with some more insightful posts!

I'm an Inspiration!

2010-12-02T19:13:00.002-05:00

This Monday I was featured in Me in Millions's weekly Monday Morning Inspiration series. If you don't already read - and love! - Me in Millions....what's wrong with you?! Check out her blog and prepare to be impressed.

I have BIG financial news, but no time to post about it now...I'll be back this weekend with details :)

Yessssss

2010-11-24T10:15:00.002-05:00

I made a $420 payment on my car yesterday! I'm so happy to see the balance drop so substantially. That's the beauty of a low interest rate - you actually see downward movement when you make a payment.

I'm super excited for next month when the balance will drop below $6,000! I'm on track towards having this beast paid off by the summer so that I can move on to bigger and better things, namely, saving.

I'm currently at my parents' house for the holiday, so I'm going to be on Thanksgiving hiatus here for a little while. Hope everyone has a happy Thanksgiving!

My Personal Finance Non-Negotiables

2010-11-21T11:09:00.002-05:00

In every aspect of our lives, we have certain non-negotiables. Deal breakers. Lines that cannot, under any circumstances, be crossed. We draw these firm boundaries for ourselves, but, like everything else, one person's line in the sand can be another person's "well, what happened was..."

Psychologists say that setting boundaries is important, mostly because it keeps you moving forward without regret. You keep your values and goals in-tact, while still being flexible about the stuff that's not on deal-breaker list.

With that in mind, these are my personal finance non-negotiables:

1. Paying my credit card balance in full every month

Come hell or high water, I will never pay a red cent in interest to a credit card company ever again. Period.

2. Tracking spending

The reason I got into credit card debt in the first place is because I let my spending get totally out of control and I didn't want to face the problem. Now, no matter how much I've over-spent, I track it so that I know where all my money sits. I keep all my receipts, and crunch the numbers every few days. No excuses.

3. Living at least $200 below my income every month

Pretty much the worst thing you can do financially is spend more than you make every month. The second worst thing, under most circumstances, is to spend exactly what you make. I run a surplus of at least $200 every month so that I can use the extra money to save or pay down debt. You just spin your wheels if you spend exactly what you earn, and I want to keep moving forward.

What are your personal finance non-negotiables?

My Top 5 Favorite Non-PF Blogs

2010-11-14T11:45:00.003-05:00

Truth time: I sometimes get sick of reading about money.

While my interest in blogging (both reading and writing) primarily revolves around the PF world, I've discovered that there are literally thousands of other fun and interesting blogs out there, and when I just can't read another word about Roth IRAs, index funds, or Dave Ramsey, these are the blogs I turn to. In case you're feeling a little PF-ed out, I thought I'd share my top 5 favorite non-PF blogs and why I love them so much.

1. Closet Cooking

This is, hands down, the best cooking blog I've found yet. Kevin makes food that is simple and delicious, and his recipe directions are incredibly easy to follow. Everything I've ever made from his blog has been fantastic, which is why I'm super-excited to make this tonight.

2. Sound Bites

I feel like I have a lot in common with a lot of the bloggers I love, but I find Amelia's blog to be the most relatable of all. Plus, she just has so much talent as a writer. If you're a twenty-something woman, check this blog out. You'll be really impressed and touched by how elegantly she articulates the day-to-day ins and outs of being a brand new adult.

3. The Hungry Scholar

What do I love more than books and baked goods? Mmmm....nothing. Thus, this blog rocks. 'Nuff said.

4. Beauty and the Budget

I don't write very much about it here, but I have a serious love of fashion, shoes, and beauty products. But, as I do write a lot about here, I'm on a tight budget. So what could be more fitting than a blog about beauty and fashion on a dime? I visit this blog almost daily to check out what's hot - and frugal! - in the fashion world.

5. Cupcakes and Cashmere

Emily is - in a word - chic. She has a great sense of style and design, and she makes some pretty fabulous treats, too. Gotta love a girl who can multi-task!

I hope you enjoy these great reads!

P.S. - What's your favorite non-PF blog?

Extra Income Opportunities This School Year

2010-11-13T11:55:00.004-05:00

One of the many fabulous aspects of being a teacher is the many opportunities for extra income that crop up throughout the school year. These are the sources of my extra income this year, listed in the order that they are coming up. I only listed the ones that are basically a guarantee, with the exception of summer school. I included it because I've been offered a position for the past 3 years, but it's completely dependent on enrollment, so nothing's definite until literally the last minute. I also included my approximate expected income from each, after taxes, and how I plan to use the money.

- Staff development stipends, ongoing throughout November: $180

These should start rolling in on my next paycheck, and will all go towards Christmas gifts.

- Book club, January or February: $300

This will go on my car, or to replenish my Freedom Fun if I end up needing to use it for holiday expenses.

- Supervising SAT "tutoring" after school, February-June: $1,000

This will all go towards paying off my car, and, incidentally, will probably be the easiest money I earn all year.

- Test prep for AP exams, April and May: $400

Car payoff.

- Stipend for mentoring new teachers, June: $560

Car payoff.

- Reading exams for AP Human Geography, July: $1,200

This will be used to finish off my car payoff if necessary, and the rest will go into my Freedom Fund.

- Summer school, July-August: $3,000

This will go straight into my Freedom Fund, and should polish it off if all goes according to plan.

Of course, this plan will only be executed if everything goes totally smoothly - no car repairs or other unexpected expenses pop up. But I think having a plan is important; I made a ton of extra income my first year of teaching, but basically pissed it all away on frivolous stuff. I'm not letting that happen again!