competing priorities
From this month’s Net Worth Update:
“I did OK, I guess. It’s home improvement season, so I’m not sure how much progress I’ll be making in the coming months. We got some landscaping done (paid in full up front), and we bought some furniture (No money down, no interest for 12 months – we plan to have it paid off in the next couple months, and yes, this does mean that I have another credit account – but I wanted it, because we’ll be buying quite a bit of furniture this year). But we’re still saving for the future (wedding, baby) and I’m paying down my student loans – about $300 more than the minimum payment per month (The $300.00 comes from the payments I was making on other bills that I have now paid off.) My car payments are mostly principal at this point, which is great. And all that money in “cash” includes money we’re saving to spend on the wedding (the planning/spending for which is already under way), so I’m not sure how much stock you should put in that number. And oh yeah, how ’bout that bear market? I’m down about 10% from last month.”
I’m still up about$400, but it would be so much better if I hadn’t lost that amount in the market, and if we hadn’t bought furniture. But look, we need furniture. Our hand-me-down furniture has literally fallen apart. My room is atrocious. That’s bad for my peace of mind. I’m not too worried about the additional debt. We’ll be paying it off in the next few months. And still, that doesn’t really matter, because after it’s paid off we’re getting carpet and more furniture.
The good news is, we pay for this stuff with the money that’s left over after we contribute a big chunk of our money to our various savings goals and the household expenses. The other good news is that we’re only buying one home improvement at a time. We know we can’t afford do everything at the same time while continuing to save, so the one-at-a-time approach will keep us able to continue saving and paying down debt. I have no interest in being miserable and completely dissatisfied with the decor of my house just so that I can boast about being debt-free. I will spend my money on things I want to have – I’ll just do it as responsibly as I can think to do it. We have savings and steady work, so now is the time to take advantage of being dual-income-no-kids.
Although, I’ll admit that I hate it when my net worth graph doesn’t shoot up in the air.
hate mail
So when I got home tonight, a letter from one of the companies that has issued me one of my credit cards. Let me let you in on my credit situation: I have four credit cards.
The first is my first card from college, that I got because I wanted a free candy bar. I’ve had it for over ten years now, and the only reason I keep it is for the longevity of my credit history. (Because I hate the interest rate, and because they’re always sending me “convenience checks” that are inconveniently jamming up my PO Box. They never reduced my interest rate when I asked. They only increased my spending limit once. I pretty much hate them.) It has no balance and is in good standing. I use it once or twice a year to keep it active.
The second was offered to me when I opened a checking account while I was still in college. I’ve also had it for over ten years, and it has no balance. I only use this card for very large purchases. It has a rewards program, so I can get stuff by using it – last year, I used my rewards to help pay for my new TV. I usually don’t use the card, but if a high-dollar purchase comes up, I use the card to get the reward points and then I pay it right back. It has a relatively high balance, so it’s great for stuff like contractors or furniture. I had a line of credit with this company which helped me to consolidate my debt. I paid it off, and in the past year, they cancelled it. That kinda pissed me off, but I was kinda expecting it too. Either way, this is my highest balance card with my lowest interest rate, and I’m glad to have it. It has no balance and is in good standing.
The third card is my AMEX, which I’ve had for about ten years. It’s a classic green AMEX card with financial rewards. It’s my only card with an annual fee, but I love this card! When I was struggling through college and grad school, it helped me avoid using my other cards, avoid accruing a balance since it had to be paid off at the end of each month, and it gave me a little advance on my paychecks when I needed it. When I got this card, I was right at the point in my financial development when I learned how NOT to run up a bill. If I’m using a credit card nowadays, it’s usually this one. It’s in good standing, and I clear the revolving balance every month.
I just got the fourth card, a department store charge card, in the last year. Department store charge cards are pretty evil and not for the faint of heart. I have it because I like the store and I like the discounts I can get by using the card. I cleaned up on Christmas shopping because of this card, and as long as I don’t carry a balance, the ridiculously devious interest rate, typical for cards like these, won’t affect me. It doesn’t have a high balance, but I like the discounts. Again – no balance, good standing.
Well, the letter I received today was about the second card. It says in part,
Dear Sistah Ant:
I am writing to inform you that the Financial Rewards credit card program will be ending… [and] will be replaced with the new Cash Rewards Visa Signature credit card – one of our premier cash rewards programs… Your APR will not change… Your unredeemed rewards will be transferred to your new account… [and the card] comes with exceptional features and benefits. …You will receive credit for your continuous account relationship going back to the old card. Blah, blah, blah,
Sincerely,
Fake Signature
Name that means nothing to me
Stupid Bank
I know this doesn’t sound like a bummer, but check out what’s in the fine print on the back of the letter – “As a result of this upgrade, your account will have a revolving line, rather than a preset spending limit. This does not mean that all transactions will be approved. We will consider transactions for approval on an individual basis, including transactions in excess of the revolving line. If we have previously permitted transactions in excess of your revolving line, it does not mean that we will permit another transaction in excess of your revolving line. Your revolving line, which may also be referred to as a credit limit, will be disclosed to you when you receive your card and, generally, on each monthly statement. We may change your revolving line from time to time.” Some upgrade.
It’s hate mail, I tell you! My predictably high credit limit – *poof*. The predictability of knowing what I can spend – *poof*. Going up to the counter knowing that my card will be approved – *poof*. What I like about this card, opposed to my AMEX, is that I KNOW how much I’m approved for. I don’t have to call before I spend to see whether or not I’m going to be embarrassed at the register. The high balance on this card makes me look as awesome as I am on my credit reports. Now the only cards I have that have regular credit limits are the first card and the department store card, and their credit limits combined don’t add up to my current Visa limit. Do you know what this could do to my credit score, less than a year after my line of credit has been cancelled (by this same stupid bank)? My ratio of debt to available credit will still be “zero” to “combined credit limit,” but that combined credit limit is shrinking, and I didn’t do anything to deserve it.
I wouldn’t care if I wasn’t trying to buy a bigger house in the next several years. But I am. It’s hate mail, I tell you. They hate me because they don’t get interest from me anymore. They can’t hold a big balance over my head anymore, ’cause I paid it off. I probably take more money from them with my rewards that I earn them in merchant fees. So they send me this stupid letter, which is all happy and stuff (“upgrade” my foot!) when they’re really sticking it to me. I hate them now. That is all.
*sigh* happy new year
Oh the horror!
The triumphant spirit I had this time last year has given way to contrition this year. If I don’t want to feel like this in 2011, some things are going to have to change.
I made a deal with myself that I could keep my head in the sand until the end of December. I allowed myself to turn a blind eye to the hard numbers, buy whatever Christmas presents I wanted, eat lunch out if I felt like it, ignore contributing to my retirement account or my stock purchases, ignore my debt reduction goals… I did all of that. I am done with that. This has been such a mediocre year! I feel like I haven’t moved forward and like I’ve abandoned my goals.
I’ve been so busy with my new work hours and other activities, and I used that as an excuse to slack off on my diligence with checking the numbers and blogging about my progress or the lack thereof. I even finished 2009 with credit card debt because of a house improvement and a very expensive engagement gift I wanted to buy.
Which brings me to my newest motivation – marriage and babies are only as imminent as my (our) ability to handle our money correctly and progressively. I have a renewed commitment to debt reduction. The credit card debt will be gone by the end of the month. The medical bills will be gone by June. The car note will be gone by June 2011, and only because we have to save for our ceremony, since we will not incur debt for it. by June 2011 – mark my words – my only debt will be the mortgage and the student loans, provided the Lord helps us to avoid emergencies.
Regarding savings, I have found that it’s harder to keep the money I save. This year, I wound up spending what I saved so that I can avoid using credit cards and avoid raiding the savings I had already. I’m not completely uncomfortable with this, but I would like to increase my savings. So, I’m counting on the 7.6% raise I got at the end of the year and the 401K program at work, which kicks in for me in a few months, to help me feel like I’m making saving progress.
My challenges to debt reduction and savings will be home decorations (we’ve made improvements/repairs but hardly any decorations) and the wedding ceremony. I hope to do everything for the cheapest prices we can get, and I’m willing to compromise on those things in order to achieve the goals I want. I have to use better time management and abandon my excuses if I want to do that! So here goes…
Oh and one more thing, I told myself that I would only update the value of my home once a year, so there it is. My actual net worth progress has been kind of stagnant, and the bump seen this month is due primarily to the increase in the market value of the house (which I listed conservatively last year).
back on the saddle
As my latest net worth update says, “I have finally included the doggone medical bills. (In “other debts.”) So there, $2000 more debt. And it’s taking a while to pay off because I have other things to take care of – house repairs and decoration, mainly. I’ve had very few indulgences because I know I have all this debt. I know it’s been a while since I’ve updated, but honestly, I’ve been discouraged by the slow progress with paying off debt and building up my investments. Most of the progress you see has just come from making minimum payments and saving to use cash instead of credit. This update is as of the middle of October. It’ll be another month-and-a-half before I do another update on the net worth, at the end of November.”
Anyway, this blog has been calling me back. It’s good for me to see where I stand, and I’m really glad I forced myself to do this update and see the numbers. It’s really not as bad as I thought it would be – not as bad as it could be. But I’m not finished with home improvements. In the next month or so, I’m going to be spending even more on the house repairs. Right now, the name of the game is to at least maintain and not slip backwards. That means continuing to pay in cash, avoid new debt, and pay down on debts, if only the minimums.
I fell off the record keeping horse – doing nothing more than balancing the checkbook. But it really does help to know your situation and keep tabs on it, so here I am, hopping back in the saddle.
bad girl
Things are crazy. I have more medical bills than I thought I would have – payment plans out the wazoo. Mister Ant and I had a cash flow problem that has since been fixed. We bought some electronics. We took a weekend trip. Home improvements in the works. We have finally started to use our central air. I did a little shopping.
Part of the reason I haven’t done my net worth update for July, three weeks into August, is that I know I don’t want to see the number. I know that isn’t right, but it’s where my head is now. I was just so happy to see that I’d finally recovered from getting the house. I don’t want to see what the medical bills have done to my progress. I don’t want to hold myself accountable for missing July’s contributions to my IRA and savings. I don’t want to deal with the fact that I aimed to pay off my car and one of my student loans and yet I haven’t paid any more than the minimum required payment on either of them.
I’m eating, my bills are paid, and I can buy things I want from time to time. My credit isn’t destroyed. I know my checking account balance. For now, that’s all I can handle.
my goals have changed
I am working a lot. I am working out after work. (Aren’t you proud of me?) I had the work done on the roof. Now I have other projects to do before the weather gets cold. I have some water damage outside that needs fixing, ASAP. So, heeeeere we go! My trip was great, and I didn’t come home broke, which is always a good thing. I didn’t spend any money this weekend. My bills are paid through the middle of August. I’m in more debt though, ’cause I put a big ole TV on my credit card. It’s OK, though. I won’t let it stay there long. My deadline is the end of September. It would be sooner, but with home improvements and the medical debt (which I’m paying on a payment plan), I won’t just knock it out with every available cent. In fact, if I didn’t absolutely need to work on the water damage, I’d wait on that too, but I have to have that worked on now. That is not an option. The good thing is that I’m not taking any major trips in the next few months, and I don’t plan to make any other big purchases for the house outside of non-cosmetic necessities for a while.
I am through with my goals for the moment. There is too much going on with the home improvements and the medical bills. There were some things that I didn’t absolutely need, like the TV and the weekend getaway, but I can afford them, and if I had it to do all over again, I would have made the same decisions. I am enjoying my summer and enjoying the fruits of my labor, for the first time in years. It’s nice to have these little luxuries, and I believe I have earned them.
But I am not comfortable with the TV and medical bill debt. I am not happy that it’s almost August and I haven’t paid anything extra towards my small student loan or my car loan. But it is what it is. I just know what my goals for 2010 will be, without question. For the rest of this year, all I want to do is get rid of my TV and medical bill debt, contribute to my IRA and savings when I can, have the money to pay next year’s insurance in full when it’s due in December, and make some house repairs – a new door, a garage door opener before winter, and a fix for that water damage before the first snow. With less expenses coming up, I want to get as much of this done as possible before the utilities start to go up in the fall and winter months.
Thank God for a cool summer. Here’s to praying for a warm fall. 
trip!
Got a weekend trip coming up. I have money set aside for the expenses. That kinda happened by chance, but whatever, I’m glad the money is there. I’m being as conservative as I can with money so that I can do stuff like take weekend trips and still have money left over to pay bills and make changes to my house. A little tricky, but possible. As long as I know what my balances are, I’ll be OK.
out of the hole
It was Boston Gal, I think, who told me that it generally takes someone about six months to get back to where they were before they bought a house.
Well here I am, six months after I bought my house, and my June net worth is finally back to the same level of progress that I was at before I bought the house. I am investing in my IRA again. It’s great.
That said, I’m doing half the stuff I feel like I should be doing. I’m finally starting to spend money on some things I want for myself and for the house. Spending a lot. A lot. I still have the medical bills, which I’m paying on a payment plan so that I can have cash flow for the other stuff I’m trying to do. I think I’m finally at the point where I’m done with binging and starving when it comes to spending. I’m trying creative use of all the things I’ve learned to get this far so that I can have a better quality of life without sacrificing long-term goals in the process.
It’s an adjustment. It’s a little scary. A lot of times I feel like I’m messing up. But I’m continually learning.
no more ashes
I’m working a lot lately, can you tell?
I want stuff. I’m in my house now so I’m no longer saving for that, and I’m tired of stoic self-deprivation.
I’m getting started on house repairs this week. I’m getting a big ol’ flat screen digital HD television and a new entertainment center to sit it on and some cable. Yup. I don’t care that it costs money. If I want it, and I can afford it, and still save and invest and pay down debt, then dammit, I can have it. I am young and employed and I want all the stuff I’ve been saying no about. I am going shopping. I am wearing cute shoes. I am getting a new tote bag. I am pimping my ride. I am decorating my house. I want it all. When I come home after all that work, I want to be sweating myself for the car I’m driving and the house I pull to and walk into at the end of the day.
It’s going to take for-frikkin-ever. But I want it all.
I will be using my credit cards. I will not put eighty billion things on the cards at once, and I won’t carry a balance indefinitely. I will plan my purchases. I will not abandon my goals. But I will not run around in sackcloth and ashes any more.
Oh yeah. And I’m going to have to increase my income.
this blog is not abandoned
Don’t let the spam fool you. I am still here blogging every day I can. I am deleting the spam as quickly as I can. I don’t know why they’re picking on my blog all of a sudden. I don’t know how to get rid of them. But you will continue to hear from me.
I started to just drop in to a clothes store to see if they had any clothes I might like… I almost did. I planned to. But I didn’t. I can’t spend any unplanned money unless I give myself an allowance. I know how I do when I don’t give myself a spending limit. It’s dangerous stuff, man. So I passed on shopping on a whim this evening. After I get paid on Friday, and I make sure my mortgage and car expenses are paid, and I chip in on my share of the plane tickets for next month’s weekend excursion… then I can figure out what I will allow myself to spend on some new clothes. Good thing I’m not used to shopping. My feelings would probably be hurt right now, LOL!
