I came home last night and found a little man wandering around the living room in his underwear. He was Chinese, rotund, about forty years old. His potbelly shot out beyond his Christmas boxers, a colorful item of clothing decorated with twinkle lights. He smiled and waved and went and cooked some pancakes in the kitchen. It quickly became apparent that he did not speak English,and I did not speak Chinese. I smiled and waved back, and got a Fresca from the refrigerator.
I have never seen the little half-naked man before. He has a substantial comb over.
Packing went well last night. I'm at the point where, when I use something for the last time, I put it in a box and seal it up. The toothbrush and all the bare-essential bathroom items were sealed up this morning. I've labelled everything faithfully. I try to put details on the boxes. Details like: "Fragile" or "Heavy" or "Andy can not move this box because he broke my dishes last time."
The little half-naked Chinese man offered me a pancake, holding it out on a plastic spatula. I wasn't hungry so I politely declined. I used the universal dual-hand signal for "I'm full," where you pat your belly and then put a hand up in front of you in the "stop" position. I smiled again to be polite.
I've washed everything I own. I'm not going to have a dishwasher or a free washing machine in my new place, so nothing gets packed without being run through at least one of these contraptions. I have a Downy freshness about me, which comes partly from the fabric softener, but partly from my feeling that I have entered a new phase in life. I've got a new place, and I'm starting school again. I'm very excited.
The little half-naked Chinese man has a wife who stayed in a side bedroom most of the night. The door was closed, and I did not want to intrude. I'm working off the assumption that they are the new tenants. I can not confirm this, however, and have decided that it doesn't really matter.
I'm especially proud of the way I packed up the big, cumbersome pieces. Whenever I saw a large cardboard box at work or around town, I brought it home, cut it up, and used it as sheeting to wrap the item. I have a four foot by five foot painting that is safely sealed. I did the same thing with the kitchen table, removing the legs and wrapping the top in a refrigerator box I found behind a grocery store. It takes time, but the move itself will go faster because of it.
Tonight is the big event! Everything looks to be going according to plan. I will give the half-naked Chinese man a high-five as I walk out the door.
Half Naked
A Million Little Wrap-Ups
I'M MOVING TOMORROW! I'M MOVING TOMORROW!
Everything is packed and ready to go. I have everything boxed up (including the kitchen table... it's complicated), and in the garage, so all we have to do is back the truck up and load it. I have ten friends coming over to rescue me Friday after work. I have beer. I borrowed an LCD projector to show a movie at my new place for those who help with the move. I'm ready to order the pizza.
My landlord just told me I have to shampoo the carpet (it's spotless, and there's nothing in the lease stating this), and walked around the house asking me about minor nicks and dings that are in areas I have no contact with. I told him it was most likely the incompetent painters he sent through the house. He's going to take the deposit, and I think I'm just going to let it go. It's a moral dillema, right now. I don't want to go to court, but it's really not right to let him keep it. That said, I need to get on with my life.
MASS FIRING?
15%
That's the number management is floating. That's close to 4,000 employees, worldwide. There's reason to believe my area won't be affected, however!
If I see any silver lining to this particular cumulonimbus, it's that I've come to realize I need to get a buffer-savings going. I can't live this close to the bone. I still want to pay the car off next month, but after that, I'm going to put some money aside for the next thunderstorm. This is the midwest, after all. When it rains...
BOOK!?
Not done! It's okay. I once blogged that it's better to have a goal and make progress, than not have a goal and flounder.
That said, I'm almost done! I had a goal, I worked towards it, and I put a lot of words down. I finished 10,000 of the 15,000 words I wanted to get done. I have a nice mental reprieve next week, and Monday off. I'll spend time relaxing and writing. I'm very close, and I'm no longer stressed about it.
SCHOOL
I just went to my graduate school orientation last night. It was great! We had some wine and hung out in the back of the "Headquarters" for the Creative Writing department. I played croquet.
CARNIVAL?
Send me a post! I'm looking forward to posting my first Carnival on Monday.
Cracking The 2-Week Code
In October, my company will switch to a two-week pay cycle. I've spent a long time getting my online payments set up for one month deposits on the 15th, so this is a huge annoyance! However, I'm working ahead to get my financials in place for the new pay period.
The ultimate goal is to have enough money in my account so I'm not living paycheck to paycheck. I'm at the point where I can start to think about this, but I'm not there yet. In the meantime, I've been trying to figure out how I can get all my payments made on time, with the least amount of hassle.
My solution?
At first I was going to stagger the payments, but then I realized that there's really no need for me to send out payments once a month. I can send out partial payments every other week, instead. I checked and my billpay can be set up on that cycle. Because I have eight reoccurring payments, and I can send out up to 25 checks a month without incurring any other charges, I can afford to send out all my checks 3 times a month. That's not exactly how I plan to handle things. There will be a few deviations, but for many of my payments, that's how it's going to work.
My rent, however, presented a small problem. I can't exactly send out partial rent payments every couple of weeks! Instead, I set up a second free checking account with Wells Fargo, which is attached to my first account. Instead of sending partial rent payments, I'm going to set up an auto transfer so that half the rent goes into the new checking account every-other week. On the 25th of every month, the second account will send $755 to the first account, and on the 26th, the first account will mail a $755 rent check. I'm putting a little buffer money in the second account so it will always have enough on the 25th to transfer back.
Complicated? Well, it takes a little thinking to get it set up and running, but again, I only have to do it once.
Bank Of America Ethics?
I've been waiting for a LONG time to get a bill from Bank of America, and I finally called them to ask when my first bill was due. It turns out it's due on September 16th.
Here's the basic gist of my conversation with the customer service rep, who was very nice, and very understanding, and very limited as to what she was able to say, obviously.
Me: Excuse me? The 16th? But where is my bill?I'm sure it's just on the edge of legal, but it grates on my nerves. Here's what is running through the heads of the penny pushers at Bank of America:
CS: We processed that yesterday, it should be in the mail today.
Me: But...
CS: We suggest you mail the bill 10 business days before it's due.
Me: But... if you guys figure it takes 5 business days for the bill to show up, that means it lands in my mailbox on Monday. If I'm supposed to take into account the 10 business days, I would have to mail it out that day. In fact, [pulls up a calendar] that won't even work! I would have to mail it out the day before I get the bill for it to make it to you on time.
CS: I would be happy to give you the mailing address and minimum payment over the phone.
Me: But...
1.) Give the payee as little time as possible to get their bill in, so they get more money from late fees and increased interest rates.
2.) Make the bill due right after the 15th, because that's when people get paid. If they do this, they get a lot of people who wait until the very last minute, and then have to pay by phone, which I assume costs $15-$20 a transaction.
Again, I'm not going to be a victim anymore! I acted proactively and called the company, I got the payment details and sent out a check (via Bill Pay). However, I'm not impressed with Bank of America's number crunching. It smells nefarious.
Anyway!
No news today concerning the mass firing (I blogged yesterday about how my company has announced a "head count reduction," you can read about it here). I'm sure we'll get information by the end of the week. People are keeping pretty cool about it, right now. There's a new kid who sits across from me who's worried, however. I talked to him for a while and tried to assure him he probably wouldn't land on any list. He works hard, he's young, and he does crucial work. He's being groomed to be the new model for writers in our area--I actually spend a good deal of time with my management discussing what we can do to build his skills, and he rises to every challenge we give him.
So, no news is good news? We'll see!
Head Count Reduction - or - My Company Might Fire Me: Post 1
We got news on Friday that our company is going to fire a lot of people. I've been through this twice in the past three or four years. Some definitions: "Layoff" is a union term that has specific meaning, which doesn't apply to most mass firings, including this one. I don't like the term "head count reduction" because it's too sanitary. This is what I call a "mass firing," and they aren't sanitary. People cry. Finances are thrown into turmoil. Friends are lost. Those who leave have to restart their lives.
Per a talking points release to all employees: "The reductions will be substantial."
I don't know what that means, but the last mass firing took about 10%, and that wasn't called "substantial," as far as I remember. However, I'm not going to be a victim of this event. Oh, I may well get fired, but I'm going to be prepared. I will use my blog-time to:
1.) walk people through the events of the layoffTHINGS TO CONSIDER
2.) talk about how it impacts my life, financially and emotionally
3.) plan for the financial repercussions of the layoff, whatever that may hold
1.) If you get caught in a layoff, nickles and dimes start to matter. Get the real number on what you'll get for a severence package. If I get fired in November, the company will probably give me a severance package with two months of pay.
2.) What are they going to deduct or add to the severance package? I will get unused vacation. I just signed up for a "pay gap" 0% APR loan from the company, however, to cover the October financial gap when my company switches to an every-other-week paycheck, instead of once a month (oh the timing!). They'll take that out of my severance package.
3.) Surprises? My school loan, which I'm currently floating on my Bank of America card, will not get paid by my company if I get fired.
4.) Check if you are eligible for unemployment. Even if you don't want to use it, you should still be aware of your options. I will be eligible for unemployment benefits.
5.) How long can you survive? With the severance package and the unemployment benefits, I can probably survive for 8 months without a job.
It's important for me to keep point #5 in mind. It is a huge relief to know I have an 8 month cushion if I get fired.
WHAT I'VE ALREADY DONE
1.) I reviewed my finances, and started making some adjustments to my future plans. Here are some tentative decisions:
- I am not going to pay off my high-interest (8% APR) school loan, as planned. The rate may be high, but the loan is flexible, and can be deferred if I get fired.2.) I went to Minnesota's UI (unemployment insurance) page.
- I am going to pay off my car next month. I don't want to be saddled with a large car payment if I don't have a full income.
- I think I am going to pay my Bank of America credit card ASAP. I planned it out, and I can probably pay it off by December.
- I can still go to school and get unemployment benefits.WHAT YOU NEED TO DO IF YOU FIND YOURSELF IN A SIMILAR SITUATION
- My benefits would be approximately $450/week, before taxes, if I am fired, per a calculator at the Economic Policy Institute.
1.) Get the resume in order. I spent a couple hours going over my resume and adding my most recent accomplishments. I go over my resume once every quarter or so, however, so it's in pretty good shape.
2.) Start networking. I have a few friends who are ultra-business people, and it wouldn't hurt to go out for a drink or send an email or two.
3.) Start clamping down on your spending. Don't wait. You may as well plan for the worst--you'll have some extra pocket change if things go your way.
WHAT IS THE SCHEDULE?
My company has been nice enough to provide us with dates as to when events will occur, approximately. When I say "nice enough," I mean that, by the way. I don't pretend to be happy about the situation, but I expect to be kept informed by my upper management, so that I can plan ahead. It is important to plan ahead in a situation like this. Many companies try to perform mass firings in a surprise maneuver to make things easier for them. I don't have to deal with that, and I am grateful for it.
This is what my company's plan looks like:
Timeline:
Sept. ----- Businesses, geographies and functions work on target planning
Oct. 3rd -- Target plan submission to EC
Oct. ------ Board discussion and approval
Nov. ------ Actions begin, upon Board approval
2008 ------ Actions completed
I assume this means the firings will occur in November.
I'm going to continue to plan, and continue to post. I made it through the last two mass firings, but I have a bad feeling about this one. I was just told I am probably going to get a promotion, so that would seem to work in my favor. However, the work I do is kind of one-off. I don't work on the core objectives of the department, and I can see management as viewing me as expendable. Not because I don't do a good job, but because my job may not be needed. That's all for now. Feel free to send me any advice or links to helpful sites.
Getting The Book Done: Days 10-11 of 15
GOAL: To get my novel finished by the end of the month.
Book Update: I finished about 2,500 words of my novel this weekend, and realized that a lot of what I was planning for the next section was unnecassary. I was going to have two "peaks" for the end, and honestly, I don't know what my characters would do between the peaks. I'm combining both peaks into one giant grand finale. That saves time, and I think will be a benefit to the reader. It'll also keep it at about 100K words, which is my target length. I'm getting there!
As I write my novel, I'm also moving and experiencing some upheaval at work. I'm going to double-post today to fill you in on some details, and leave this for my "book" update.
Approximate Words Needed To Complete Novel: 15,000
Approximate Words I Should Be At*: 11,000
Approximate Words Completed: 8,900
*This number is always a day behind, as I report in the morning.
Getting The Book Done: Days 8-9 of 15
GOAL: To get my novel finished by the end of the month.
Book Update: This weekend is probably the make or break moment for my goal. I have today and tomorrow to get a substantial section complete. After that, I can role through the ending next week. I feel good, though. I'm finishing a big breaksfast of gyro meat and eggs and hash browns at The Uptowner, so named because it's in the ever-so-hip Uptown area of Minneapolis. From here I'll go to a favorite coffee shop and buckle in. I want to get about 1,500 words done, both today and tomorrow. I'm very excited--it's a big circus scene. How fun will that be? Seriously.
Approximate Words Needed To Complete Novel: 15,000
Approximate Words I Should Be At*: 8,800
Approximate Words Completed: 6,400
*This number is always a day behind, as I report in the morning.
Finance Update: Five minutes after I drove my car from the mechanics, where I put $200 on my credit card to float my new exhaust system, something broke inside the door, so I can't roll my window up!!!
God. I'm decently handy, so I went to the library and got the repair manual for a 2000 Civic. Here's a handy tip for the financially strapped: if you need a relatively simple repair done on your car, you can probably do it yourself, and your local library will probably have a repair manual for your model of car, that describes how to repair every component. BEWARE the repair you take on. Screwing up my window is not going to impair the function of my car. Screwing up your suspension could put you in serious trouble.
I found out about the manuals in college when my starter went out, I had to drive 200 miles to my sister's wedding, and I only had a few bucks on me to get the repair done. I replaced the starter motor for $35, in front of my house. Oh so hick, but it got the job done.
Festival of Funny Financials! Hey, the submissions are starting to role in, so keep them coming! See here for submission details!
Getting The Book Done: Days 7 of 15
GOAL: To get my novel finished by the end of the month.
Book Update: This post is being written late at night, actually, but it will be published after 12, so it's technically my Thursday post. I'm feeling better and getting back into the swing of things. I wrote 1,500 words tonight, so I'm catching up with my goal! I'm not so much worried about the word count as the momentum, and the fact that I actually feel like I'm writing well again. Getting closer!
Approximate Words Needed To Complete Novel: 15,000
Approximate Words I Should Be At*: 6,600
Approximate Words Completed: 5,400
*This number is always a day behind, as I report in the morning.
Getting The Book Done: Days 6 of 15
GOAL: To get my novel finished by the end of the month.
Book Update: My brain hasn't been able to shift into gear, and my girlfriend finally told me to go and get some exercise. She was right (as always). That's what I needed. I lifted and went for a run last night, and I was able to think again. I didn't start writing until 10:30, but I got a 1,000 words finished up by 11:30. Despite the time crunch (actually, because of the time cruch) I'm reinstating my after-work workout. I'll be running and lifting again tonight.
Approximate Words Needed To Complete Novel: 15,000
Approximate Words I Should Be At*: 5,500
Approximate Words Completed: 3,900
*This number is always a day behind, as I report in the morning.
DAMN! My damn muffler broke. Arg. Which REALLY screws up my finances, because not only has it been tight with all my debt payments, it's really tight given the move. I know, I should have a savings to withstand such things, but I don't. I'm bringing the Civic to my favorite mechanic in the Twin Cities, Tuan Auto Repair. Only a few of the mechanics there speak english, but they do good work, and they charge half what you pay elsewhere. They kept me alive during college.
I'm doing a two-day training at work. It's on Targeted Selection, or how to interview people. It's eye-opening, because you not-only learn to interview a candidate, you also learn how to be a candidate. I'll talk more about that tomorrow, when I've finished the training.
Remember To Submit To The Festival Of Funny Financials! Remember to submit to the festival if you have a post that would make us chuckle.
Starting A Festival!
I was dinking with this idea for a few weeks, and inadvertently launched it the other night!
I have a Festival up and running, with a bit of a twist (because I get EASILY bored!)--I call it the Festival Of Funny Financials, and it's devoted to the times our financial misnomers turn comical. Tagline:
Because when you're really broke, laughter may be all you've got!
My first issue is scheduled for Monday, September 3rd, with submissions due on the 1st. For now, this is a twice-a-month festival.
Feel free to send me old posts! I don't know if we've had a conglomeration of funny financial columns, so you may have written something a year ago that belongs here! This will be a lot of fun. Go to the page I created at Festival Of Funny Financials for more details. Although, really, there aren't that many more details :)
Getting The Book Done: Days 2-5 of 15
GOAL: To get my novel finished by the end of the month.
Yesterday's blog post was total procrastination! How long was that, about 3 pages? Good lord.
Book Update: I wrote at a slow pace the last few days. I think the problem is, ultimately, that I have some back story that needs completing. It limits the actions of my characters. I finished about 1600 words, and my goal was 2300, but I’m not worried about the catch up. In that I wish some of the back story was complete, I still got my character moving again. I think I’m back in gear.
Approximate Words Needed To Complete Novel: 15,000
Approximate Words I Should Be At*: 4,400
Approximate Words Completed: 2,900
*This number is always a day behind, as I report in the morning.
Finance Update: While I’ve been doing a good job paying off the debt, I haven’t been doing anything with savings. I think my instincts have been right, so far, to get rid of the monstrous interest rates first. If I had some catastrophic event, I could always put the bill back on the credit cards. However, very soon all my interest rates will be below 4%. At this point, I’m going to switch gears. My new plan: Since I get 5% APR in my HSBC account, I’ll put the money that I normally would have paid towards my debt into my HSBC account. I’m not going to do this indefinitely, however, despite the financial gurus who recommend you just pay the minimum and keep it all in savings. I’m splitting the difference—once I have $1000 more than any one debt, I’ll pay off that individual debt. That way, I’ll build in that financial security, but I’ll have the emotional satisfaction of paying off my loans, and I’ll eek ahead with the interest rates.
I Just Turned One Hundred!
I looked at the old blog total, and I realized that this is my 100th post! What a milestone! I'm working hard on my book, but I thought I would take a second to reflect on what I've accomplished with this blog, now that my first century of posts has come and gone.
WHAT HAVE I ACCOMPLISHED FINANCIALLY?
I'm about seven months down my path to financial redemption. In that time, I done a few noteworthy things.
1.) I have have paid off:
- 8% of my SCHOOL LOANS!2.) I restructured all my credit card debt so that I no longer pay more than 2.9% APR, with the majority at 0% APR.
- 26% of my CUMULATIVE DEBT!!
- 43% of my CREDIT CARDS!!! (with two paid off completely!)
- 70% of my CAR LOAN!!!! (with the rest to be paid next month!!!!!)
3.) I have begun to use credit cards, carefully, and to my advantage, as I describe here.
3.) I reallocated my 401K to a healthier disbursement.
4.) I have made a total of $32 from this blog! Ha! Ironically, that was mostly in the start. I think a few people clicked on some REALLY pricey ads.
WHAT HAVE I DONE WITH THIS BLOG?
This blog has been around the block. I started it in a panic one day, not knowing a thing about blogs or how to set them up. I heard about Blogging Away Debt on an NPR program, and I latched onto the idea in desperation, knowing that my financial health was starting to seriously impact the rest of my life. What's happened to the physical characteristics of the blog since then, and the actual content?
1.) I have revamped the layout twice. I like where I am today.
2.) I used to use a lot of pictures. I no longer do that.
3.) I read a few books and wrote some reviews. That was a good idea, because I learned some stuff. It's pretty time consuming, though. I'll probably do more of that in the future, when I get the urge.
4.) I found that people like information in numbered or bulleted format.
5.) I learned what a blog carnival is (Hello Carnival Of Personal Finance! Hello Carnival Of Debt Reduction! Thanks for stopping by!), and that it can increase your hits by a lot.
WHAT HAVE I ACCOMPLISHED PERSONALLY?
Sometime I get frustrated by the fact that my debt hasn't disappeared. None of this has been easy. I am, however, a really different person than I was when I started this blog.
Here's something I haven't mentioned to anyone--a few weeks ago, my girlfriend told me that if I hadn't started to act more responsibly with my money when I did, she would have broken up with me.
That was a shocker, but I don't blame her. Debt is a disease. It's like alcoholism. You can love someone who has a problem, but sometimes you can't have a relationship with them. My girlfriend is a rockstar PhD student who got her Masters at the London School of Economics. She makes 1/4 of what I do, but she travels internationally once a year, and attends conferences around the country two to three times a year. She has so little debt it's hardly worth mentioning. She is blazingly intelligent, she is beautiful, and really, I can't expect her to settle for some schlep who can't balance his checkbook. I mean, I'm a great conversationalist, but that only goes so far...
Since I started this blog, I started to talk to people about money. I tell people, frankly, that I can't afford things. I tell people, "I can't do that, sorry, I'm paying down my credit cards." My family and friends think I'm cooler because of this.
WHERE AM I GOING?
I have plans! That's a huge step! Here's where I'm going financially, and where I'm taking the blog!
1.) As I mentioned in this post, I intend to pay off my car next month, and pay off my credit cards by February.
2.) I have a plan to be DEBT FREE in 18 months, as I mention here.
2.) I'm looking at housing options. I want to see if I can buy a place where I can rent out a portion of it. That's a 6-12 month goal, with lots of figuring.
3.) I've been slowly, carefully, redesigning my blog for greater traffic and revenue. I like to use the analogy of packing up my house for my upcoming move: every day over lunch, I come home and pack two or three boxes. Over the last month, I've pretty much got the whole place wrapped up. Like the move, I'm slowly redesigning my blog. I'm slowly working on the quality of my posts. I'm slowly getting my name out there. I'm learning what people like to read, and what writing style they appreciate. It turns out it's not that difficult. People just want you to be consistent. The patient turtle wins the race.
Or whatever.
And, finally...
THANK YOU!
Thanks to those few brave people who read me on a regular basis! Thanks to those who have left comments and suggestions! Thanks to those who have written me with advice and encouragement! I look forward to who I will meet and what life will show me in the next 100 posts!
Thank you!
I am, as always, Indebted 2 You!
Getting The Book Done: Day 2 of 15
I finished the 1,200 words last night! I was up late. My main characters finally kissed... it actually surprised me as much as it surprised them. It just seemed like the right moment, and it certainly moved the plot along a lot!
FINANCIAL NOTE
I put my upcoming class on my Bank of America credit card (which I called "American Bank" in all my previous posts). The total was about $1,400. The reason I did this was because I have a 0% APR introductory rate until January, and my company will reimburse me for the class in January. It was cheaper than taking the schools 1%/month deferment plan. I could have checked into putting the class on a Federal loan, but somebody told me that the banks which back those loans put an upfront 3% charge on them, which I don't think is true now, but I have to do some research to figure it out. I'm happy with how this worked out.
That's all. I'm going to shut down the intertubes in a moment, brew some coffee on this cold rainy day, and get some work done on the book. Another 1,200 words to go!
Cheers
Getting The Book Done: Day 1 of 15
I have two weeks to finish the last bit of my book, and I'm not kidding around anymore. I froze up the last couple of weeks, but I have SO LITTLE left. It just needs to get written.
This next couple of weeks, I will spend very little time updating you on my finances, but I will take time in every post to update you on my book. I am taking time off work, again, to get this done. I estimate a little over 15K words are left, leaving me with about 1,100 words a day.
Please, seriously, wish me luck. This is the completion of the largest project in my life. I have been working on this for three years. This is a culmination of seven years of learning, both on my own and in class. I estimate I have written 350,000 words to get here. That's not "War And Peace," but it's a significant chunk of change.
Small goal: tonight, I'll write 1,200 words.
I've Paid 26% Off In 7 Months!
Here we are again. Monthly roundup time!
I really like the Excel spreadsheet I've devised: it makes doing the bills easier, and projecting simpler.
I've included a screenshot of my spreadsheet instead of typing it all out. It's at the end of the page.
I transfered my Discover balance to a new American Bank card. The balance is at 0% APR, and I got a 0% transfer rate. It lasts until January, then goes to 10%. In February, I hope to pay off the bill with my bonus. As I've mentioned, I am expecting around 12%, hoping for around 15%, willing to live with 10%. We have 5% locked in right now (we lock in by the quarter, and we have an averaged "5th quarter", which is literally an average of the other 4).
My food and gas for both this and last month were on the Discover, as well as some miscellaneous meals, and $100 that I didn't transfer to the American Bank card. I came up with the Target Card/Super America Gift Card scheme earlier this month, so this is the first "full" implementation of it. The SA card is in my back pocket, and the Target Card is on it's way.
Highlights and explanations?
I usually pay off about $1,000 month in debt, but I just got a new, more expensive apartment ($250/month more!) and I had to pay the deposit. I should be getting my $500 deposit back from my old place, but that's iffy, because I have a jackass for a landlord. If and when I get that deposit, I'll put it towards my loans immediately.
I have $200 in "MISC EXPENSES" for moving. I have to get a truck, and buy beer and pizza, as is required.
The "MISC FUNDS" is just $50 that somebody owes me, that I expect to get back in a day or so.
FOOD and GAS are $200 and $100, respectively, and I moved those to the "balance" on the Discover Card, so as not to confuse myself when paying that bill. I paid the car insurance before the pay period, so that's not added on.
I DIDN'T pay on my car (I'm far enough ahead so I can skip a payment), but I have enough coming next month to pay off the remainder of the loan (and a little extra, to start on the American Bank card!)
That's the boring details!
THE WRAP UP?
Check out the status bar on the upper right! Nothing fantastic, this month. I stay pretty even, but I didn't slip, and despite some swapping around of when-I'll-pay-what, I'm still on track!
About To Drop $1,360
I'm in a coffee shop, about to drop $1,360.
It's rent, don't worry. I have to give my deposit, first months rent, and a fee for background check. But wait! you might be saying to yourself. Didn't you do this a few days ago? Didn't you carefully select a new apartment, with beautiful windows and a fireplace, hardwood floors and a sexy rental figure of $689, in a redstone building resting in the heart of a very nice neighbrohood in Saint Paul? Ah ha! My curse is not yet broken, it seems. The property manager of that location called me yesterday to say that they had gone with someone else.
Excuse me?
Yeah. Legal? No. My background check would pass me for a place with twice the rent. Is there really anything to do about it? I'm too tired to even think of sueing anyone, so while I could, I'm not going to. Would I really want to sue to get a place where the rental agency pulled that? I don't think so. I have my money, so I'm not going to complain. (Well, I complained VERY LOUDLY in their ears for a while, but then I just gave up and walked away.)
So I was fortunate to stumble on a really nice place last night. The detractors: it's a $755/month, which is the limit to what I wanted to spend, and it's a basement apartement with pipes across the ceiling.
The benefits: it's a two bedroom, and baring the pipes, it's actually really nice. It's in a neighborhood I'm stunned I can afford, and it's in a building that's absolutely beautiful.
So I'm making the most of it. I got along well with the woman who showed me the apartment last night. She gave me the option for a short lease, mostly because she's a realtor and I mentioned I was thinking of buying a house!
So, I just got a call. Gotta go. Gonna sign a lease.
Money And Apartments
I've always been frugal with my apartments and living situations, but this year I went too far, and I have suffered the consequences. I didn't search hard for the place I'm currently in, and I have regretted that fact since the first day I moved in. It seemed like a phenomenal deal: $500/month, the upstairs of a house mostly to myself, NO UTILITIES. Free internet, cable, electricity, and heat. The downstairs was rented out as well, and the person who lived there also used the kitchen. I thought I had it made. It turned out, however, that my landlord is crazy. The story gets way to long for me to sum it up (although if you really want the gory details, just check under my "Landlord" tag), but suffice it to say, I'm moving out at the end of this month. I spent a lot of time searching, so I thought I would divulge some financial words of wisdom with respect to finding a place. Some of these lessons are learned from hard experience!
1.) Actual Rent and Utilities
These are the most obvious considerations when getting a place, but when I started renting in college, I saw a lot of newbie renters get tripped up by unforeseen heating bills they hadn't factored into their budget. It costs A LOT to heat a house in Minnesota, so if your landlord isn't paying the heat, you may have to factor in a few hundred dollars a month during the winter to keep the place warm. If you are paying utilities, make sure to ask your landlord how much you should expect to pay. I've always found them to be forthcoming. Oh, and at least in the state of Minnesota, landlords have to have decent windows to keep the heat in, so if you find you have a huge draft coming through, you can ask for a reduction!
2.) Location
Make certain you factor in where you'll be driving.
The IRS tells us it costs an average of ~40¢/mile to drive a car--that's gas, maintenance, depreciation, etc. SAD FACT: every 10 miles you decide to move from work costs you almost $180 A MONTH, or over $2,000 a year.
How's the bus sound, now?
Most of our driving is to and from work, but I had an additional factor to take into account, distance-wise. My girlfriend is in Saint Paul, and my work is in a suburb. While I would LOVE to live just south of Uptown in Minneapolis, and I have a lot of friends who live there and who would like to car pool, I would have to put an additional leg on my journeys to make it to her place (leases and things make it difficult right now for us to move in together). Uptown, unfortunately, was out.
I choose, instead, to pick a place between my girlfriend's apartment and my work, which still landed me in a nice location, neighborhood-wise. I can't run around Lake Harriet, but I put myself near Summit Avenue in Saint Paul, which has a nice broad median to jog along.
3.) Safety
Safety first! Most cities have dynamic crime maps, so you can figure out where the bad neighborhoods are. Also, you can call the non-emergency line for your local police department and talk to them about a neighborhood you want to move into. I found out, as a reporter back in the day, that you can even ask them how many 911 calls have been made for a specific building. If you don't know anything about the locale, you should at least check the crime maps. If not for you, take into account that you'll have guests to worry about.
4.) Apartment Amenities
I need a dishwasher. I don't watch TV and I don't need the internet at home, but I HATE doing my own dishes. Also, I prefer a washer and dryer in my apartment. In my present locale, I'm back to communal laundry, which irks me to no end, mostly because I'm that guy who likes to leave his clothes in the dryer, and warm them up for a few minutes on a cold winter day. Also, laundry isn't cheap: it costs about $2/load, and since a person probably does about 2 loads/week, that comes to another $20 or so a month. Plus, for me, I NEVER have change. I'm going to see if I can include a few extra bucks in my rent every month in my new locale, and have the landlord drop the laundry tokens in my mailbox, so I don't have to think about it.
5.) Sharing Space?
Roommates can detract from you monthly expenses, but they can also add layers of complexity to your living situation. Consider this carefully. I'm moving into a one-bedroom apartment without a roommate, and I'm actually going to miss having one. I don't generally room with people I know well, as a rule, because I don't like to put any strain on my friendships, but I have found I LIKE having someone else in the place, even if we don't spend a ton of time chatting, just because I find it comforting to have other people around. A lot of people consider it more "grown up" to live alone, but I disagree. People in Europe live with roommates at a far higher rate than those in the states. Also, there's nothing childish about saving money!
6.) Buy Or Rent?
That’s a good question, and one that I wrestled with mightily on this last go-round. I went through my finances thoroughly, and I realized I could buy, but because I was in a hurry to leave, I didn’t want to make any snap decisions that I would regret. Aside from my budget spreadsheet, which allowed me to project what my finances would look like this next year, I used a handy calculator that the New York Times created a few months ago, that projects the financial benefits of buying vs renting, given considerations such as rent amount, mortgage and interest rates, etc.
Check that one out here.
Take a look at a simple mortgage calculator like this one (you can Google “mortgage calculator” and you’ll get a million like it). I like this one because it doesn’t require a lot of variables, so I was able to get a quick snapshot of how much I would pay per month with different mortgage amounts. For the real mortgage, I’ll use my cousin who does mortgage brokering, because my other family members who have used him say he’s the bomb. You can also go online and stick your name in a service like Lending Tree, and you’ll have about four people call you in ten minutes to help you out. My experience with this was surprisingly pleasant—everyone was polite and they went out of their way to say they weren’t going for a hard sell. I made sure to tell them that I was just checking to see if it was possible, and they were great. As soon as I told them that I had decided to use my cousin, they stopped calling.
Anyway, I’m not buying right now--I’m going to do some more research, pay down my credit cards so I have a credit score over 800, and wait for the winter, when the market tends to slump, or so I’m told.
7.) Miscellaneous Startup Costs - Business
I split startup costs into two types: business and personal.
Business startup costs include safety deposit, fees for credit check, and moving costs. States will usually have some limit on the fees a landlord can charge for credit checks. It's illegal for them to take fees for credit checks after a place has been rented. A $30-$50 fee is not unreasonable for a credit check.
Landlords usually charge one month's rent for a safety deposit, but some areas go as high as three times the rent. Which would suck. My landlord actually charges less than one month's rent, with the idea being that people won't try to skip out on the last month's rent if they know their deposit won't pay for the whole month. (It's illegal in Minnesota to skip out on the last month's rent and force the landlord to use the deposit. That's probably universally true across the country.)
The last business expense I'll address is the truck. Are you having friends move you, or are you paying the professionals? Consider how far you're going, how much stuff you have, and how many people like you enough to show up. WHEN YOU RENT A TRUCK, most of the cost will actually be in millage, NOT the rental fee. You can get the truck for $30-$60, but at 50¢-$1.20/mile, unless you're only going a block or two, that's where your significant cost will be. ALSO, don't cheap-out on your friends--beer and pizza are the normal moving fee, and that will cost you about $100, depending on the number of people help out.
8.) Miscellaneous Startup Costs - Personal
Personal costs are hugely variable, but you should do your best to keep these in mind. Do you need a couch (I do!), and did you last roommate have all the dishes? Don't get stuck with paper plate! Little things like waste baskets and cleaning supplies can add up quickly. Do an inventory check.
That's all I've got right now!
Thanks for stopping by!
I Like Getting Bills
Thanks to Carnival of Personal Finance for posting me this week! My Open Wallet had some problems with Blogger, but she did a great job recovering and getting everything out on time!
I don't have much to say (and it's super late--I'm up watching a giant thunderstorm), but I wanted to divulge a funny realization I had as I was checking my mail today. At some point in the recent past, I began to actually ENJOY getting bills! I no longer have any sense of consternation with respect to doing my finances, in fact, I look forward to the 15th of every month, because when I get my paycheck, I'm that much closer to paying off my debt!
I don't know if I mentioned that I'm turning my book in at the end of August instead of my hoped-for July date. I was pushing too hard and froze up on the last week of the month. I had to take about ten days off to just veg. I just got back in the swing of things the last few days, and I'm back on track to completion. I REALLY have to get this done at the end of this month, because I'm starting classes in September, and I know my life will turn into a train wreck if I try to get the book finished AND do classwork. It's been hard for me to stay in shape and get the book done, but my mind is SERIOUSLY not working as well as it should, because I'm not doing as much, athletically. I need to get the blood flowing again, but as I'm sure many of you know, it just sucks to try and get a workout in when you're doing ten things at the same time.
Anyway, I'll let you go. I'm off to watch the lightning!
Dad's In Town...
My dad's coming into town today. Last year when he stopped by for the weekend, we had a great time but I ended up dropping way too much money. While I didn't regret the weekend, it left a sour taste in my mouth and I was scrambling for a few weeks to get above water. Today I've planned less expensive events!
This afternoon, we're going to lunch at The Loring Pasta Bar in Minneapolis. It's a real experience: phenomenal bohemian design and gorgeous 1920's decor. The owner is renowned for creating beautiful atmosphere. Also, muy cheap. Entrees are between $12-$20, so you can eat for very little.
I was originally planning on bringing him to Lake Harriet in Minneapolis to see the Minnesota Pops Orchestra, because again, its a really fun experience, and FREE, but apparently their Saturday series ended a couple of weeks ago. Also, I may have to nix the outdoor activities because it looks like they may get rained out. We had a bad thunderstorm last night: I was woken rather suddenly by my girlfriend who asked if I was scared by the lightning. I took the hint and stayed up and talked to her. Today we're on task for more rain...
So Plan B is to take them (my dad and his wife) to The Walker Art Center where they have a Picasso exhibit that I wanted to see anyway. They also have a nice sculpture garden that I think we'll be able to check out between showers.
Then I'll take them to the Loring for an early dinner. Not sure what to do after that. I could take them out dancing, but I don't think they'll be dressed for it. I'll ask my girlfriend what she things.
I set up a new tag for this post "Budgeting for Guests" because this is something I really need to get better at! I'll come up with a better list in the future!
Cheers.
18 Months To Debt Free Living!
I did some conjecturing and forecasting, and I made a tentative plan to have ALL MY DEBT paid off in a year and a half, by February of 2009. This takes into account a 5% raise every year, and a bonus of about 12%. I’m actually due for a promotion, which usually carries a 10% raise, and my bonus this year is tracking at 15%. This is obviously a thumbnail sketch of my finances, and doesn’t take a whole lot into account, but it’s a nice goal to shoot for. A lot of my budget is glossed over in “entertainment.” I may have too much in here, and I still don’t have a savings plan outside my 401k. It’s a start, though. I can tinker with it as I go.
Below is a snapshot of the 18 months it will take to get debt free, taken from the spreadsheet that I built and use to make my budget (this doesn’t take into account interest, which is a glaring hole, I know, but it also simplifies things immensely. I’ll make some adjustments later.) Again, if you want a copy of the spreadsheet for your own finances, you can download it here.
And just because I was looking for something like this, for my own reference, here’s a list of the percentages a typical household pays towards items such as shelter, various forms of entertainments, etc. I got this from this article at a site called eioba. Make of it what you will!
Typical Household Budget Percentages
33-38% Housing (59%-66% of this is on shelter - mortgage interest, property taxes, repairs, and rent, and other items)
15-19% Transportation (38-48 of this is vehicle purchase - 2 cars per household average)
13-14% Food Budget (55% at home, 45% away)
0-2% Alcohol
0-3% Tobacco and related products
0-2% Caffeine related products
4-5% On clothing and related services (drycleaning)
4.5 - 6% on out of pocket Health Care
9% Personal Insurance and Pensions (breakdown: 1% life and other personal insurance, 7.5% SS, .5% investment
5% Entertainment
2.5% Charitable Contributions
2% Reading and Education
1% Personal Care products and services
2% Miscellaneous
4% Credit Card, Consumer Loan Interest