Yay!!

Of course, I’ve been lagging in posts… but, this month I did manage to eliminate my Mom Debt!  At the beginning of February, I owed $1250.  I paid off $630 in my last paycheck, and $620 in this one.  I did get some help in this department due to birthday money ($500!!).  But of course, once I start paying things down, other expenses come up.  I just found out I will have to pay a minimum of $820 out of pocket for two crowns I’m getting (terrible dental insurance) and probably more for some fillings..  Also, this week I am getting a new windshield for my car, which will cost around $300.  Hopefully, with the new glass, I will pass the PA inspection (though I am keeping my car registered in TX until June, which is when I will have to pay for my own insurance!).  My ccard balance is hovering right around 3k, but with my tax refund I hope to knock out half of that.  I also opened another card that gives me miles toward free travel.  It also has a much lower interest rate, and a much larger credit line.  Which is strange, because they are both from Chase!  Anyhow, I guess I’m movin’ on up in the world of debt reduction.. albeit at a snail’s pace.    

Progress Update

Sometimes, even the best laid plans go awry.  My plan was to use the bonus I received to pay off my mom.  However, I was not anticipating it being taxed at the rate of almost 40%!  Oh well.  I told my mom I would be paying her back by the end of this month, and she told me I didn’t have to pay her back.  But, I am going to pay her back.  However, instead of paying the full $1250 at once like I planned, I am going to be paying back $625 with this pay, and then $625 in the next.  Hopefully, this will all go according to plan.  Another large chunk of my paycheck was eaten up by plane tickets to see my parents in March.  They usually take care of the tickets, either by credit card or by frequent flier miles, but since I will be taking my boyfriend with me, and am also aiming to be more independent, I paid for both of our tickets (his ticket will be in lieu of what I would paying for rent in March, so that is one bill I don’t have to worry about in my next paycheck).  The total for both tickets was $556.  I also went to get some maintenance done on my car yesterday, anticipating a bill in the $250-$350 range based on what I was told needed to be done to the car (by another car maintenance shop).  Instead, I had my back brakes inspected, then cleaned and adjusted, my tires balanced and rotated, as well as a high mileage oil change—all for the low price of $45.  Apparently, the expensive brake services and flushes suggested by another place were completely unnecessary- something was just loose on the back brakes, and they (Pep Boys) tightened it for free.  Yay!! I definitely needed that, because the plane tickets ended up costing a bit more than I anticipated.  Anyhow, I have about $250 to get me through the next couple of weeks.  I hope nothing expensive/unexpected comes up.   

Excited

I think I’m finally making some noticeable progress in my goals.  I just found out my bonus, (which will be in my next paycheck), will be around ~$1100.  After taxes, it will probably be closer to $800.   I’ll be using that, plus another $450 from my paycheck, to pay off the Mom Debt completely!  I can’t wait!  Now I will just have that ~3k credit card bill to tackle.  The card expires in May, so my goal is to have it taken care of by then.  This is going to require a lot of sacrifice on my part, but since I started my diet and have not been dining out as much, it shouldn’t be too difficult.  I am going to put about half my paycheck towards that (after this next one).  I also have some car maintenance I need to take care of soon.  Luckily, my boyfriend just bought a truck, leaving an extra car to use in case it has some work that will require leaving it in the shop.  I hope I can make this goal! 

I am preparing my taxes myself for the first time this year.  Last year my federal tax refund ended up being about the same amount that I owed the state, so that was a wash.  I also have to pay about $300 for local taxes.  I’m not used to paying state and local taxes, since I never had to pay these in Texas! Oh well.  I really hope they have another stimulus payment like they did last year.  That was pretty awesome.. even if we are basically getting back money we paid already. 
                Since I’m not taking classes in the summer, if my debt is paid off, I can finally take a vacation to somewhere nice!  I just read about this great little hostel/hotel in Paris that is about 100 Euros..  I think I could swing a week in Paris!  Anyhow, it’s just a thought : )  I guess I shouldn’t get ahead of myself until the debt is gone completely.

Finally, moving ahead (a little)

I just got back from visiting my parents.  A few things happened that I feel will help me become debt-free.  First, my parents already paid for this half of the year’s car insurance, a savings of about $600.  Also, my dad paid ~$100 to put the car in my name and also to pay for the registration (that’s up in Feb).  I used some of this saved money to put a small dent in my mom debt ($350), bringing the amount I owe her down to $1250.  My goal is to pay her back before my birthday (2/22), and I think I’ll be able to do this if I limit my spending.  I am also counting on a bonus in February, but I have no clue how much it will be for.  I decided to go for the snowball method, and pay off my lowest debt first.  Plus, it will feel good to have the mom debt off my plate.  Sadly, I still do have to pay back ~$450 to the IRS (from an incorrect filing in 2006), which I will do tomorrow.  Also, I will need to be more active in paying off my ccard.  It expires in May, so I would like to have it paid off by then.  The balance is hovering at right around $3k.  I think I can do it!  I’m also in the process of trying to revamp my lifestyle, and trying to be more healthy and lose some weight before I’m a bridesmaid in my friends’ wedding.  I also recently found out that I have taken all the MBA classes being offered for the summer, so I have the summer free to improve myself.  I’m going to use this time to improve my Spanish skills, and possibly do some volunteer work.  I’m still undecided on whether or not I should work part time as a waitress for catered events.  It would be on my own schedule, but initially I would be out $100 to buy the uniform and for the drug test.  If I ended up not liking it, it would be yet more money down the drain.       

Visitors

Last weekend I had visitors (a good friend from high school and my best friend).  We started Friday night off with dinner at a Thai restaurant, which I picked up the tab for ($70).  We went out for drinks afterwards which they covered.  Saturday morning we all went to Panera Bread for breakfast (~$20, picked up by me) followed by some shopping at the Outlets ($41), a beer tour (free) and booze sampler (~$10 covered by friend, drank by all of us), then a trek to another mall where I bought lunch for us in the food court (~$12), and also bought some Bare Escentuals powder ($26) at Sephora, and redeemed a fragrance certificate I had bought online (amazing grace).  I also bought some miscellaneous supplies (pens and other knick knacks to mail to my friends, ~$20) but my boyfriend accidentally threw them out before I even made my packages.  Oh well, I guess I’ll start over.  Saturday night we went to a party, and ate and drank for free, which was nice.  Sunday morning we ate breakfast at Atlanta Bread Co, paid for by one friend, and then shopping (I bought a book, $7)and the other friend paid for lunch at a Mexican restaurant ($40).  Then we went to a movie (I paid about $21 for the 3 of us) and we were still full from lunch, so didn’t really have dinner.  They left on Monday morning.  Total damage for the weekend was a little more than $200.  Not too bad, but I am entertaining one of those friends again this weekend, and these things add up, especially since I will be driving back and forth a ton showing her the sights.  *Sigh*.. Having friends around is fine and good, but it hard trying to entertain and keeping the budget low.  We could have eaten more at the house, but opted not to.  Oh well.  Christmas update coming soon.

Decisions

Yesterday, my boyfriend called me at work and asked me if I was interested in going to Brazil in February for Carnival.  We would be going with his friend and staying at his friend’s girlfriend’s house that lives in Brazil.  Apparently the exchange rate for the US dollar there is great right now, and we would only need to pay for the flight and food, and the housing would be basically free, other than a gift we would get for the family and some cash we may leave for them.  I want to go so badly!  I would only miss one class, and I can probably get the time off for it (the time off schedule hasn’t been made yet). 

Lucky boyfriend went to Brazil last year with work, so he’s a little more familiar with it than I am, but I want to go so badly!  The main part that sucks is that it only gives me a few paychecks to scrape up about a grand, and it also means it will put me behind in being debt free for the year.  However, I am expecting a bonus in February, so that should help me get ahead a little bit.  Unfortunately, I can’t put it toward my trip, bc I will probably receive it while I’m on vacation.  I have made the decision that if everything works out, I will go, but it means I will have to set aside $400 from this paycheck, $700 from the next paycheck (Jan.8^th) , and another $400 from Jan.22^nd paycheck.  This should give me ample money for a ticket and activities while I’m down there, but it does mean lean times for me until the trip.  I wish I had more notice and more time to save, but I guess if I had beefed up my travel fund earlier, I wouldn’t be having these problems.          

Lazy

Not only have I been super lazy the past few weeks, I’ve also been pretty busy.  No excuse not to post, but I’ll have to sum up what I have been up to:

·         I received a letter from a collection agency about my previous apartment’s deposit.  They said I owed $260, which is fine and all, since the apartment wasn’t super clean when I left, but I never received an initial bill, so I am pretty mad that they sent me to collection without trying to bill me first.  I paid it right away, but I hope it doesn’t negatively affect my credit too much. 

·         I decided it’s time for me to take responsibility for more of my finances, so my little ’01 Civic (currently owned by my dad) is being transferred to me.  So, he will do the title transfer in Texas, and once that is done, I guess I have to jump through some hoops and get that car registered in Pennsylvania, and I will also have to start paying car insurance (which I think costs about $600 for 6 months).  I guess I picked a good time to start doing this, just as my $100/month phone contract is about to end.  As of next week, I will be switching my boyfriend and myself to prepaid, which I think will save me at least $600 next year.  We will be using his work phone for any long phone calls, but both felt it was necessary to maintain our numbers and not have a contract. 

·         Now that I will have to get my car registered in PA, I will also need to make the necessary fixes so I pass the PA inspection.  This includes replacing my slightly (two tiny dots!!) cracked windshield for about $250, and also doing some brake work to my rear brakes (about $300).  Then paying for the inspection, and an oil change.

·         Another thing car-related that isn’t necessary but would look nice is replacing my dinged up bumper.  That will be another $300, but I am trying to prioritize for now, so that is closer to the bottom of the list.

·         I am dying to get LASIK!  I think I really need it, and I have problems driving at night.  I know the price has gone down significantly, and starts at around $500 per eye depending on how bad your eyesight is.  This is a total want but it will also improve my driving skills.

·         Debt --- creating a plan of action!  I decided I will pay the cc off first.  It is around $2500 right now, not to mention the $1600 I still owe my mom.  I must eliminate this.

·         Dental work—though my teeth haven’t been bothering me, I know I have plenty of cavities to get filled, and I also need to get a root canal and a crown on one tooth.  It will probably cost me $1,000 -$1500 even with insurance. 

·         Rent—I will be paying my boyfriend $2,400 for rent next year.  When the other roommate moves out, I think I may start contributing a slightly higher amount. 

·         Christmas shopping is almost officially over.  I added a little bit to my boyfriend’s gift, bc I want him to have stuff to open from me on Christmas. 

·         My best friend and another good friend will be visiting me a couple times throughout the next few weeks.  I know this is going to end up being a pretty expensive time for me, and I will be gladly picking up the tab for much of what is done.  She is in law school and does not work, and did pay for the ticket to fly up, so I have no problem paying for our New York and Philly excursions.  For the weekend they’ll both be at my house, I made up an itinerary that shouldn’t be too costly, but I have my ccard for backup (bad, I know!).

·         School is almost over, and I only have one paper to finish up! Next semester should be a piece of cake, (I hope).  I will only be in class one night a week.  I am seriously contemplating an additional part time job. 

 

So, that is the basic overview of what has happened since my last blog post.  Sadly, my emergency fund is nonexistent, and I really need to work on saving more and spending less.  I just bought a cute North Face fleece and new bras this weekend, and will probably be shopping more when my friends come to town.  (Sad but true).  At least I have a good grasp on what to expect as far as next year’s expenses.