Christmas: did I stick to my budget?

Christmas has come and gone. And now, most Americans are looking at their bank accounts wondering how they managed to over spend again. I decided to take a look at my spending and compare it to my set budget and was quite surprised. My budget was $300.00

After tallying all of my receipts, I spent a total of $312.00 for Christmas. I bought gifts for 15 people and was quite proud of my gifts.

One way I tried to stick to my budget was by buying Dollar Tree toys for my nieces and nephews (all ages five and under). They were so excited about their toys! It's proof that you don't have to spend $20.00 on a toy for children. The younger they are, the less complicated toy buying should be.

I also looked for inexpensive perishable items that many people enjoy but aren't expensive (i.e. peanuts). For my Mom, Aunt, and soon-to-be grandmother-in-law, I bought inexpensive flowers from the supermarket. I was surprised at how much they loved the flowers!

Finally, I graciously told my extended family and friends there was no need to exchange gifts. They're love and friendship was a gift in and of itself. (Well, at least that's what I hope they understood).

Overall, I enjoyed Christmas shopping this year. I purchased all but two of the gifts on the day before Christmas Eve (surprisingly, the stores were not insanely crowded). I thought of innovative ways to wrap the gifts (I wrapped most of the gifts in colored tissue paper tied with a bow). And I didn't stress by trying to find the perfect gift! I bought things that I thought each recipient needed or would enjoy. Most importantly, I learned that you can stick to a budget at Christmas!

Even though I overspent by a slight margin, I'm happy that I set a budget and was able to come very, very close to sticking to it.

Were you able to stick to your Christmas budget?

Got's to be mo' careful!

There is a Bible verse that talks about how money sprouts wings and flies away towards heaven. I'm pretty sure I know EXACTLY what that means. I FINALLY got my check from the blog I write for. $300 smackaroos. And what do I have left? $19.51.

Yeah. I know. What in the ham sammich did I do with it? I have absolutely NO clue! Y'all this isn't good AT ALL! My bills are paid (at least), but that money was supposed to a) be for Christmas presents or b) pay down debt. And I've done neither. Let's look at my bank account and figure this mess out:

Initial deposit: $280 ($20 for cash)
-$17.00 (gas)
-$20.00 (money borrowed from Big Brother cuz I was too lazy to go to the ATM)
-$16.00 (Boy scout popcorn) (technically this should have been covered by funds in my account before the check)
-$5.00 (Parking)
-$102.27 (check for my guy's HOAs) (again, this should've been covered b/c he put the money in my account the day I wrote the check)
-$5.93 (Lunch)
- $12.23 (lunch at new trendy spot)
-$44.84 (gift for Boss Lady (I'll get $29.88 back from co-workers b/c we split it))
-$97.15 (Cable)
-$12.00 (parking)
-$7.54 (lunch)
-$12.00 (parking)

*** My spending totals more than $300, but my roomie also gave me her half of the bills and I had a check from my part-time deposited within the last week for another $175.00.

Umm... yeah. My unnecessary spending is out of CONTROL and needs to be fixed. Like, yesterday.

True confession: I did a "no, no" and dipped into my Fit Fund to tide me over until my check came in. THAT should've been my first clue that I was overspending. Well, my check has come and gone and I STILL haven't replinished my fund.... I get paid Tuesday and priority numero uno is to replenish my Fit Fund (it's coming out of my spending budget since I SPENT it).

Cheap buys

With a tanked economy, everything (and I mean everything) is on sale or reduced. If you're in the market for a house or car (and have a strong credit rating and down payment) you can find AMAZING deals on not only the cost of a home, but also the the interest rate on a loan.

But, the point of this post isn't to talk about housing. It's to emphasize that you can find deals on everything! Including bridesmaids dresses (you know wedding talk was coming). Yesterday, I ordered a dress for each of my attendants for $28.00 from Ann Taylor. Yes, you read that correctly - $28.00. The total for seven dresses was $212.00 (that included tax and shipping and handling). We're talking about dresses that originally sold for $198.00. Basically, I saved my bridesmaids over 85% on their dresses.

Not only is the dress re-wearable and pretty, it's so low cost, I could easily give the dresses to my girls as a gift! I haven't been in any free weddings - ever. So, I could be the one bride who bought her attendants their dresses....

Anyways... here's a pic of the dress:




I LOVE IT!!!! What do you think?

Random

Saturday, I woke up to an unworkable phone. The only thing I could do with it is accept incoming phone calls. No texting, placing phone calls, returning phone calls, checking voice messages. Nothing. So, I began using creating communication techniques.

1. Landlines. Hey, I almost forgot these things existed! I've never used my office phone more.

2. Chat Functions - I'm HUGE fan of Gmail's Gchat, but I had to get used to yahoo chat, too. I could send messages to my intended through yahoo chat (gotta keep the lines of communication open)

3. Gchat's text function. Talk about innovative! I can use gchat to send a text message to anyone's (in the US) cell phone and receive a response. This beats going to Sprint or Verizon's website and sending a text simply because you can actually get a response back!

4. Email. An old stand-by, I've used it to let people on my "most called" list know I wasn't ignoring them if they happened to call, but my phone was dead. Didn't want any hurt feelings, you know?

How does this relate to finances? Well, obviously I've done fine communicating without a cell phone for 5 whole days. Maybe I really don't need one THAT bad...

Wedding Budget

Wedding plans are getting underway. We've got a target date (8.1.09) and a budget. $10,000.

Let's marinate on that for a minute. $10,000! That's a LOT of MONEY for ONE event!! LOL! But, this is a once-in-a-lifetime event. We're looking at around 200 guests (or thereabouts) and around seven attendants. So, of course I've been doing my research. Here's the suggested budget breakdown for a wedding:

Transportation: 2%
Ceremony: 3%
The rings: 3%
Stationary: 3%
Gifts: 3%
Flowers: 8%
Music: 8%
Finery: 8%
Photography/ Videography: 12%
The reception: 48%

So, with my $10K budget, and my percentages for each category in hand, it's time to figure out how I can have the wedding of my dreams without spending all of my moolah!

Do you have any tips or tricks to save money?

6 things that make me smile

1. Looking at my credit card statement and seeing a $0.00 balance.

2. Knowing I only have three more months before my credit cards are paid off.

3. Having the power to close my credit card account when my credit card company will not lower my interest rate.

4. Not needing to use my credit card when unexpected expenses pop up because I have an emergency fund.

5. Watching my credit score rise as my debt lowers.

6. Knowing I'm on my way to financial freedom!

I LOVE paying off debt!

Hi to all of my uber fab readers out there! I know I haven't been posting like I want (i.e. 3-5 times a week). Life has gotten so busy for me! Not only have the usual end-of-the-year rush at work and the holiday hustle and bustle started, but I'm actually beginning to plan my wedding!

But, to not lose sight of our focus, I have an update on my debt snowball progress: As of Monday, I paid off TWO MORE cards! Woohoo!!! Y'all, it's like I can't wait to get paid because I get EXCITED about paying off my credit cards! You know why?!?!? Because once they are paid off, I can use my money for whatever I want. And you know what I want! Yep, that's right. A FAT bank account. AND I don't have that chain around my neck! It's like being an independent woman! ***all my ladies, independent***

Anyhoo... I will update my networth info later. I'm a few days off from a month from when I updated it last. From now on, I want to update after I've paid my bills and the payments have posted for my credit cards. I guess I should do it on the last day of the month before payday then, huh?

Well, next up, I'll keep you posted on my wedding budget (and woes), Christmas shopping, and job search updates.

Oh, just in case you wanted to know, my favorite word for the day is Fiance'! LOL!

Who doesn't love a raise?

The State FINALLY gave me BOTH of my raises. One was my annual raise, and the other was a 2.5% raise to give my position a more competitive salary. I'm not complaining either way. After Uncle Sam got his part, and the State took its part for my "retirement," I'm looking at an additional $200/month. Not bad.

You already know the drill: That $200 has already been sucked up into my debt snowball! Which means I hope to reach my goals just a little faster. The faster I pay off the credit cards, the faster I'll be able to start paying for my wedding! *Grinning ear to ear*

Oh, Happy Day!

Sunday was my birthday and my guy asked me to marry him! Yes!!! I'm getting married! I'm sooo excited and happy and overjoyed and filled with emotions! I love him so very much and he's made me so happy! He proposed in the most special way and did an excellent job selecting the ring! It's absolutely STUNNING!! I LOVE IT!

We're shooting for a summer wedding and we'll probably foot most of the bill. This new development will definitely change my financial goals for 2009! For one, I won't be able to save as much money because most of my expendable income will probably be dedicated to the wedding.

We haven't set a budget or anything as of yet. Once we get everything settled, I'll post it here and track our progress. I plan to continue to save a small portion of my income - I can't go through 2009 without making ANY progress towards my goals!

5 things to do with my (unexpected) tax return

So, I just got a small ($102.55) income tax return that I wasn't expecting. Woohoo! I'm rich! Well, not really. But, I wasn't expecting to get this money so, now I need to decide what to do with it. I thought of five options:

1. SPEND IT - my birthday is Sunday and I can think of a number of things I want.

2. SAVE IT - My fit fund is currently sitting at a cool $1,000. It'd be nice to see that grow. Or I could put it towards other funds.

3. GIVE IT AWAY - I really haven't given much this year, and I can think of a few people who could use a little extra cash.

4. CHRISTMAS SHOP - The holidays are just around the corner. I could use this towards my holiday budget (which I haven't quite settled on).

5. DEBT REDUCTION - Since I'm still chipping away at my credit card debt, this could be a nice psychological boost to keep me moving.


What would you do?

One down . . . nine to go.

I just called and closed one of my high interest rate, low credit-limit cards. And boy were they trying their best to keep my business! It's funny how having a balance of $0 changes your bargaining power!

Just a few months ago, I called the same credit card company and asked for a lower, more reasonable interest rate. The answer? No. I even asked to speak with a supervisor and was given the same response. They said there was no better interest rate available. Ha! That's some BULL!

Fast forward a few months to tonight when I called. After explaining to the customer service rep that I wanted to close my card, I was immediately transferred to their version of the customer retention department. The supervisor immediately offered me a 8% interest rate AND 2% cash back on all purchases. It was too little, too late. I'd already paid off the card AND I have a card with a much larger credit limit and a lower rate. He tried to persuade me to keep the card because its been open since 2005. But I have at least two other cards that have been open for longer and frankly, I don't need a card with such limited resources. Besides, if he offered me those benefits on a card with a small credit limit, I can only hope some other credit card companies will offer something even better. Needless to say, I closed the account.

I'm just glad to have those people out of my hair! BTW, I made sure to ask that a note be included on my credit report stating that the account was closed per my request.

If only I didn't have credit card debt . . .

*SIGH*

Happy Veteran's Day

Today we honor the brave men and women who have fought and continue to fight for our freedom as Americans. Whether you agree with the current war or not, let's not forget to honor those who have sacrificed so much on behalf of our country.

Weekend Spending

My money leaks on the weekends. Here's a recap of this weekend's spending:

$22.00 (mini mani/pedi)
$17.00 (Hair appointment)
$25.00 (wedding gift)
$18.00 (Mac&Cheese ingredients)
$14.00 (Car wash)
$4.00 (Chick-fil-a) (unexpected trip to WS)
$22.00 (gas)
$30.00 (gas) (had to refill my hunk's car when I drove it to WS)
$2.00 (canned food)
Total: $152.00

*Shaking my head*

Weekend Recap
I went to a "free" party. Free is in quotes because I had to bring two canned goods. Sadly, I didn't have two canned goods in my pantry but had to buy two from the store. I guess I really like fresh (or frozen) food. At the party, I refused to pay $10.00 for a drink so asked for sprite and cranberry instead. Apparently soda is free at the bar. I like free.

I also attended my co-worker's wedding. Of course I had to look fab for the event! The wedding accounts for the mani/pedi and wedding gift. Oddly enough, I didn't have my hair appointment until the next day. Don't ask...

This weekend was also my uncle's 72nd birthday! Hence the $18.00 mac and cheese. I've been making homemade mac&cheese for about 10 years now. My family DEMANDS that I make it and bake TWO 8x10 pans. Now they've upped the request to three! I need them to know that cheese ain't cheap!

I got my car washed this weekend because me and Allie (my car) are sticking it out for the long haul and I thought it only fair that she get some pampering, too. Besides, my backseat was beginning to look like a closet. Clean car = happy me!

Budget Busters

I have a confession: I just paid $65.00 for parking tickets. *SIGH*

Talk about a budget buster! Goodness! I racked up one ticket each week for three weeks in a row. THEN I was lazy (yes, the L word) and didn't pay one of the tickets until the $20.00 late fee kicked in. The doggone late fee was more than the ticket!!! I'm sitting here seething because IWASTED $65.00! Oh, what I could do with $65.00. But I'm not going to seeth long - the past is the past, right?

Now that I've thrown the L word out there, I want to share my two cents about it. Laziness in its many forms (procrastination, forgetfulness, etc) is one of my biggest budget busters. When I'm lazy, I don't pay my bills on time, and get hit with a late fee. When I'm lazy, I don't look for good deals and pay more than need be. When I'm lazy . . . well, you get the picture. Defeating laziness keeps me on top of my bills, helps me save money, and has really PUSHED me to pay off my debt. And keeps me on my budget.

*Oh, what I could have done with $65.00 . . .*

Dave Ramsey's Step 2: Debt Snowball

After you save $1000 for an emergency fund, Dave Ramsey advocates paying off your debts using the "debt snowball" method. Basically, you take all of the income you have designated for debt reduction and pay towards your smallest debt. Once that debt is paid off, you roll that minimum payment and the extra payment into your next smallest debt until it's paid off. Keep doing this until all of your debts are paid off.


I've been using a modified debt snowball plan. When I first started, I paid off my smallest credit cards, and it was really exciting to see $0 balances! But after a while, I noticed that my minimum payments on the larger balances weren't making a dent in the balance because the interest rate was so high. I wanted to save some of the money I was paying interest on, so I decided to leave the smaller debts alone and focus on paying off the cards with the HIGHEST INTEREST RATE. This motivated me more because I knew I was not only paying off debt, but also saving money by cutting down the interest payments. Once I got a few balances low enough, I applied for a 0% interest rate card and transferred the balance. I'm not sure Dave Ramsey would advocate this step, but it worked for me. Now I can focus on the low balance cards with higher interest rates.

Since I didn't start this blog until October, it doesn't really show the progress that I've made this year. In January, I decided to get my finances in order. As of January 2008, I had 8 Credit Cards with balances (yeah, crazy right?) for a whopping total of $7,986.22. I'm shaking my head right now at it! I don't know WHERE that debt came from. A lot of eating out and unnecessary expenses. Credit Cards can be dangerous.

Since January, I've paid off 3 cards and consolidated 2 others. I saved $1,000 for my fit fund and paid off $3,729.22 worth of debt! I had some relapses in June and July, so some of my current debt is related to those indiscretions. *Sigh*

Anyways... writing out everything lets me see how far I've come (and how much further I have to go).

My sidebar needs help and progress updates

Can anyone please tell me where I can find a progress bar widget? Obviously, my sidebar needs a lot of help! I'd like to keep track of my progress with a progress bar, but I can't seem to find one!

Anyways... here's my progress for the month:

Credit Cards: $4,257 ($1,030 reduction)
Fit Fund: $1002

I've refunded my fit fund. Now I'm going to focus on paying down the rest of my credit card debt.

I should receive an extra $160.00 from my part-time job. That will go straight to the credit cards. And I'll also receive $300 for an article that I'm submitting. That will also go straight to the credit cards.

Right now I have 4 cards with balances:

Capital One Mastercard (my 0% interest card until 2/09): $2,822.23
Capital One Visa : $151.07
Ann Taylor: $438.35
Citi Student Visa: $844.53

I'll pay off the small Capital One Balance, then the remaining Ann Taylor balance. I'll pay off the Citi balance with my November paycheck and use any remaining funds to pay down the large Capital One Balance. Hopefully, I'll pay the remaining balance with my December paycheck. I don't want to carry any credit card debt into the new year, but as of now, I'll need to pay $2,128.50 over the next two months! Practically impossible. It looks like my plan will have to be revised. Even with my impending pay raise (the State needs to stop playin' and give me my raise!), I won't have enough money after all of my expenses to pay $2,128.50 on the cards. It looks like I'll be credit card debt free at the end of January 2009. YAY!!!!

Not quite the timeline I had in mind, but close enough. I've had a few setbacks along the way and have had to pause the debt reduction goals to replenish my fit fund. This whole process is making me look at money in a NEW light!!!! I can't wait until I can save money and actually see it grow! Woo Hoo!!

Gas, keep on fallin'!

Yesterday I filled up my tank for (drum roll please). . . $22! Yep, you read that right. I had been riding on E for about two days. Yeah, I know. Very, very, not smart! But I HATE buying gas! So, anyways... I pulled up to my local Wally World gas pump and almost jumped for joy when I saw the price - $2.22/ per gallon (regular). I haven't spent less than $30 on gas since. . . well I can't remember! If gas hovers around this price for the month of November, I'm trying to budget $88 for gas (one tank per week).

Ever since I started riding the bus to work, I only have to fill up once a week. Riding the bus saved me a TON of money this summer when the price of gas was double what it is now. Now that the price of gas has fallen, I'll still be hopping on the Express bus to downtown. I figure riding the bus will help my poor little car last a little longer. Plus, the bus trip is free (gotta love some state employee benefits) AND I don't have to pay for parking or walk 8 blocks from my state-issued parking space. Less walking = longer lasting shoes. LOL! I swear, I'm always at the shoe cobbler because I've worn out the taps on my heels. It's nothing more embarrassing than walking down a tiled hall hearing the tap of metal every other step. So not fly!

Dave Ramsey's 7 Baby Steps to Financial Peace

For the next seven weeks, I'm going to share with you a step from Dave Ramsey's "7 Baby Steps to Financial Peace Plan."

My dad has to be the biggest Dave Ramsey fan ever! He's always quoting something he heard on the Dave Ramsey show. But the guy has developed a great system that can work! Last January, I decided to take Dave Ramsey's advice (via my dad's preaching) and implement his 7 Baby Steps.

Step 1 - $1,000 to start an Emergency Fund

When I first started working after grad school, I decided to pay off my credit cards. I'd throw huge chunks of money at them, but I never seemed to make any real progress. Everytime I made a dent in the balance on my card, something would come up and I'd have to charge it, making my balance rise. It wasn't until I took Dave Ramsey's advice and saved $1000 BEFORE I started paying down my debt that I really saw progress. Now, whenever something comes up (like having an unexpected car repair), I don't have to charge it, I can pay CASH for it!

If I hadn't saved a $1000 emergency fund, I'd still be playing the pay-off and recharge game with my credit card. Now, each month I see the balances getting smaller and smaller! My momentum is building and I'm LOVING it!

Gotta love those 0% balance transfers

I've worked really hard this year to pay off my credit cards and I've made a lot of progress. Despite my progress, I still had three large balances on cards with ridiculously high interest rates. I tried calling the companies to ask for a lower rate but I was told they didn't have a lower rate to offer me. So, you know what I did? I double-timed my payments for one card and lowered the balance from over $1600 to just $200 in a little over a month. I'll pay off the remaining $200 by next week.

As for the other two cards, I took a risk and applied for an 0% interest balance transfer card. I was a little nervous about applying because I wasn't sure if I'd get approved or if would get a high enough line of credit. But things worked out for the best! Once I was approved, I called the companies again to see if they could work with me. My reasoning? I'd been with one company for over 5 years! Surely they could lower the interest rate to something reasonable. I told them about my 0% balance transfer offer (which has a very low APR after the promo period expires). No luck. After ending the call with bad credit card company, I immediately transferred the balance. So much for customer service.

The rest of my credit card debt will be paid off before the 0% interest rate expires. In the meantime, every cent of my payments each month go to lowering the balance. No more ridiculously high interest charges! I'm telling my money what to do!

January is a looong month.

As a state employee, I get paid once a month on the last work day of the month. It has its pros and cons. But in December, I've traditionally gotten my paycheck early (i.e. before Christmas). This makes for an easy month in December, but a very, very long January. Basically, I go for six weeks without a paycheck!

This year, the Legislature made some changes and state employees were no longer going to get an early paycheck in December. I guess there was a lot of outrage, because we just got a letter saying we're getting paid early. Boo!

I'm really going to have to budget well in December or those last few weeks of January are going to drag on and on and on (which means I might overspend or not meet my goals). I'm going to plan out my December and January expenses to make sure I don't wind up with $0.00 on January 15th.

January is an expensive month because I'm just wrapping up buying Christmas gifts and I have to turn right around and buy birthday presents for my mom, sister-in-law, niece, and nephew! Looks like I'll be putting in some extra time at the part-time job!

When the month is over, its over

I just finished reading an e-newsletter I receive. The gist of the newsletter was to remind us to let go of whatever tasks on our to-do lists that we didn't finish at the end of the day. I try to have the same mindset when it comes to meeting my monthly financial goals.

In January, when I vowed to get myself out of debt and into a better financial position, I didn't realize just getting started on this journey would be so HARD! I would set a financial goal for the month -- like limit my food bill to $XX -- but at the end of the month I was over budget, either because of poor planning or unexpected circumstances. It was so easy to get discouraged and fall back into my same spending habits, but each month, I reviewed my expenses, made adjustments, dusted my shoulders off, and tried again. I didn't beat myself up over how much I overspent, or how little I paid towards my debt. After a few months, somewhere around July/August, I started actually SEEING results. I was making PROGRESS!

Now, don't get it twisted, I STILL mess up and miss the mark. But, I am learning to congratulate myself on the progress that I make, and forgive myself for the setbacks I encounter. This saving/debt reduction habit is slowly but surely taking shape.

So, if you don't meet your financial goal for the day, week, month, or year, let it go! Don't give up, but don't beat yourself up about it either. When the month is over, it's over.

2008 & 2009 Goals

I'm jumping right in to this blogging! So, these are the remaining 2008 goals:

* Re-fund my emergency fund ($150 to get it back to $1,000)
* Pay off the rest of my credit card debt: $5,286

I'm on an end-of-the-month pay schedule at work. Yeah, living off one check a month can be tough. That's why I pay ALL of my bills as soon as the money hits the bank! Anyways, I have three more paychecks for 2008: October, November, and December. It's going to be tough, but I'll use all of my remaining money after tithing, paying my bills (rent, utilities, cell phone, student loans), and setting aside money for food and gas to get rid of that pesky consumer debt! Also, the extra cash I get from my part-time and blogging gig goes straight to the bank to pay on a card.

I've already thought about my goals for 2009, too!

* Fully fund an IRA
* Increase my emergency fund from $1,000 to $7,500.00 (approximately 6 months of living expenses)
* Pay off private student loan - Approximately $4,500
* Save for a new car - Approximately $6,500
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These goals are aggressive, but obtainable. I'll update them as I meet each one (or add to them).

My Journey Begins (sorta)

Okay. Here, I go. This blog is about my journey to become a Financially Independent Girl. It's not day 1 of my journey, but it's very close to the beginning (I'm a little shy of a year in). I'll share my goals, accomplishments, disappointments, life changes, and anything else that may impact my finances.

So, a little background: I'm two years (and a few months) out of grad school with a rack of student loans and approximately $5,000 in credit card debt. I have an emergency fund that was at $1,000, but as of last week, is now down to $850. I have three sources of income - my day job, a part-time, and a blogging gig about . . . finances (go figure). I have two goals for the rest of 2008 and several goals for 2009, which I'll tell you about in another post.

I've never really thought too much about handling my money and preparing for the future until my job ended last summer and I couldn't seem to find another position. I had to piece together funds from several sources and take jobs that I was overly qualified for until I found another full-time. After struggling for a few months and watching my credit card balances rise, I decided that I would never again be in that position. THAT was truly the beginning of my GirlFit journey.

A year into the journey, I've gone from zero savings to a $850 emergency fund that I've depleted, and re-funded, on three occasions this year to handle true emergencies (mainly pertaining to my 9 year old car). I've paid off two hospital bills from a surgery last year totaling approximately $600.00; I've paid off one credit card balance of $500, and whittled another balance down from $1800 to $400. Oh, and I didn't forget to LIVE! Yes, I shop (frugally of course), travel, and enjoy life - all on a budget!

This is it! I'm on my way to Financial Independence!

Dear Car, please don't die...

I drive a 1999 Oldsmobile Alero. She reached the 155,555 mile marker the other day. And I think she's getting ready to quit on me. This year, I've spent approximately $1000.00 on repairs already (new tires, window gadget thingy, etc.). I really, really, really want to keep her until I have at least a decent down payment on an upgraded ride. But it's not looking too good right now. She started to overheat tonight and my mechanic brother told me to, "get ready to put some money into her." Yikes!

Having to pay for significant repairs is going to throw off my goals for the year. Should I suck it up and chunk another $500-$1000 into my car or try to find a pre-owned cheap car?