I was reading a post from one of my favorite personal finance blogs, the Well Heeled Blog. The blogger recently composed a post on two different camps of savers: those who abstain from buying, and those who resolve to buy in moderation.
I would say that in many respects, I am a classic abstainer. Though I have my buying weaknesses (restaurant food, coffee and clothes) I've abstained from many things. I went on a five month shoe and clothing diet. I've nearly cut out all fast food (though C. and I still dine out on the weekends), and I'm going on my second week of eating pb&j for lunch. I haven't been to Starbucks in months--I think I've become allergic to paying $4 or more for coffee.
Abstaining from buying makes me feel good. I feel a sense of self-control. I like seeing the numbers in my savings account increase, and the satisfaction of knowing that I can earmark my money for larger goals (buying things for the new apartment, vacations, etc). Conversely, I worry that if I yield and spend money on one little extra thing, it will lead to a chain reaction of consumption and financial disaster.
But like the too-restrictive dieter who one day finds him/herself knee deep in a sea of junk food, I broke my spending diet and binged this past weekend.
On Friday, I went to happy hour with some co-workers. I bought a margarita (almost unheard of for me) and split an entree. On Saturday after tutoring at school, I plunked down $25 for a bright sundress from Target. Though I certainly do not need more sundresses, I couldn't pass it up. I also ate lunch at Target, a flatbread sandwich and drink. After my eye exam that same afternoon, I promptly got on the internet and paid $79 for four boxes of contacts (which I need) and $51 for a new pair of glasses (which I don't need).
And then on Sunday, the beau took me to Ikea--mystical wonderland of inexpensive Swedish goods-- so we could get ideas for the apartment. C. was the voice of reason--while I pleaded to buy various items such as a coffee table, bookshelf and wine rack, he urged me to write the information down. After we measure the apartment, we will buy furniture, he assured me. He urged me to curb my impulses with a smaller purchase. So I bought a shoe organizer, canvas totes, and some fancy paper holder thingies for $26.
I do not like to pay retail for items, and I do not like to purchase things without careful consideration and a specific purpose in mind. And while I did get awesome bargains on the contacts and glasses, and while I'm sure I'll find SOME use for the Ikea items I purchased, I still feel like I spun out of control.
I'm back on the "straight and narrow"--chastened by my shrinking bank account, I spent $5 on pantry items and bread for meals this week. I'm back to eating pasta and pb&j. And knowing that in six weeks, I am moving and making changes in my profession, I am happy to abstain. I just hope I can find a happy medium between spending and savings so I don't binge again....
Monday, April 16, 2012
Sunday, April 8, 2012
And the apartment hunt continues....
If you have read previous posts, you may know that I am making a rather big (for me) life change and moving in with my long-term boyfriend. Since my current lease expires at the end of May, we started apartment hunting a little over a week ago. It has been a little eye-opening, to say the least.
When I moved here three years ago, I was a starry-eyed Midwestern kid who had dreamed for years of living in a bustling, vibrant city. I went through an apartment locator and scored a one bedroom, one bath apartment for $599 a month. Plus, they gave me a deal on the first month's rent and threw in a washer and dryer free of charge. Though my dad nearly fainted at the monthly rent, I felt confident that I had searched around and snagged a fairly reasonable deal.
Fast forward to present-day. My apartment realtor informs us that around 14 people move to Austin EVERY DAY, many of whom are looking to rent. When we ask leasing agents about specials, they shake their heads and mention that the complex is 90% full. Our $900 monthly budget for a 2-bedroom, 2-bathroom apartment has slowly crept up to just under $1000.
Granted, $1000 a month split 2 ways is still less than the $599 a month I paid when I first landed in Austin. But we're both currently paying around $400 a month for our respective places. I don't like the thought of paying an extra $100 a month in rent when that money could go toward paying down the car loan and/or ramping up my savings account.
I am slightly panicked that if we wait much longer, our monthly rent will either reach astronomical rates, or we will end up sharing a small room in the house where my boyfriend currently lives (no disrespect to the house, but I'm not looking for multiple roommates at this stage in my life). We are touring a very promising property early this upcoming week....fingers crossed that it's the one!
When I moved here three years ago, I was a starry-eyed Midwestern kid who had dreamed for years of living in a bustling, vibrant city. I went through an apartment locator and scored a one bedroom, one bath apartment for $599 a month. Plus, they gave me a deal on the first month's rent and threw in a washer and dryer free of charge. Though my dad nearly fainted at the monthly rent, I felt confident that I had searched around and snagged a fairly reasonable deal.
Fast forward to present-day. My apartment realtor informs us that around 14 people move to Austin EVERY DAY, many of whom are looking to rent. When we ask leasing agents about specials, they shake their heads and mention that the complex is 90% full. Our $900 monthly budget for a 2-bedroom, 2-bathroom apartment has slowly crept up to just under $1000.
Granted, $1000 a month split 2 ways is still less than the $599 a month I paid when I first landed in Austin. But we're both currently paying around $400 a month for our respective places. I don't like the thought of paying an extra $100 a month in rent when that money could go toward paying down the car loan and/or ramping up my savings account.
I am slightly panicked that if we wait much longer, our monthly rent will either reach astronomical rates, or we will end up sharing a small room in the house where my boyfriend currently lives (no disrespect to the house, but I'm not looking for multiple roommates at this stage in my life). We are touring a very promising property early this upcoming week....fingers crossed that it's the one!
Friday, March 30, 2012
Thankful
One thing that is part and parcel of being a teacher is illness. My cute little kids are veritable germ incubators with still-developing hygiene habits and a penchant for touching EVERYTHING. So, after six miraculous months without so much as a cold, I got bronchitis about two weeks ago.
After about 3-4 days of incessant bone-rattling coughing, I finally went to an urgent care facility. The nurse practitioner handed me a diagnosis of bronchitis, as well as a laundry list of medications (oral steriods, inhaler, nose spray and allergy medicine). After a $30 co-pay and around $84 worth of medicine later, I thought I was back on the road to health.
I headed back to work, still hacking up my lungs but thoroughly convinced that the medicine would kick in anytime soon. Except...it didn't. I temporarily felt better for about three days, and then the cough became unbearable. My chest ached and I was shaky and having a hard time breathing.
After a miserable half-day at school today, a couple of co-workers insisted that I leave and see a doctor. Finally, I went to my primary care physician in downtown Austin. After taking my temperature (101 degrees) and listening to my chest for a couple of minutes, she said I still had severe bronchitis. I received a breathing treatment, two shots and more prescrption medications. The damage this time was a $30 co-pay and $75 for the meds. Next month, I'll get the bill for the neb treatment and shots.
I spent around $219 in two weeks for medical care. Ouch. And yet, I am thankful. Thankful for insurance which makes treatment relatively affordable. Thankful that I didn't have to visit an emergency room. And most of all, I'm thankful that I have the savings and flexibility in my budget for emergencies such as this. This $219 is just a little financial hiccup. I work at a mostly low-income school; I know that many of my parents (and students) forgo doctor's visits because they cannot afford it.
So, this weekend I'm relaxing and meditating on my good fortune. Hope you all have an enjoyable weekend!
After about 3-4 days of incessant bone-rattling coughing, I finally went to an urgent care facility. The nurse practitioner handed me a diagnosis of bronchitis, as well as a laundry list of medications (oral steriods, inhaler, nose spray and allergy medicine). After a $30 co-pay and around $84 worth of medicine later, I thought I was back on the road to health.
I headed back to work, still hacking up my lungs but thoroughly convinced that the medicine would kick in anytime soon. Except...it didn't. I temporarily felt better for about three days, and then the cough became unbearable. My chest ached and I was shaky and having a hard time breathing.
After a miserable half-day at school today, a couple of co-workers insisted that I leave and see a doctor. Finally, I went to my primary care physician in downtown Austin. After taking my temperature (101 degrees) and listening to my chest for a couple of minutes, she said I still had severe bronchitis. I received a breathing treatment, two shots and more prescrption medications. The damage this time was a $30 co-pay and $75 for the meds. Next month, I'll get the bill for the neb treatment and shots.
I spent around $219 in two weeks for medical care. Ouch. And yet, I am thankful. Thankful for insurance which makes treatment relatively affordable. Thankful that I didn't have to visit an emergency room. And most of all, I'm thankful that I have the savings and flexibility in my budget for emergencies such as this. This $219 is just a little financial hiccup. I work at a mostly low-income school; I know that many of my parents (and students) forgo doctor's visits because they cannot afford it.
So, this weekend I'm relaxing and meditating on my good fortune. Hope you all have an enjoyable weekend!
Saturday, March 24, 2012
End of the Month Debt Tally: March
Though March has not officially ended, nearly all of my bills and all of my debt obligations for the month have been paid. Besides, I am quite impressed with the progress that I have made, and I cannot wait any longer to post the results : )
I've shaved off nearly $1,000 of debt this month, which feels amazing. Though my totals will not be quite so impressive over the next couple of months (as I will be moving and visiting family in Canada), I hope to sustain this momentum and be completely debt-free (including student loans) in 4-5 years.
Remaining Balance on Student Loans: $ 36, 695.00
Remaining Balance on Credit Card: $2,131.97
Remaining Balance on Car Loan: $ 7, 499.36
Total as of March 24th, 2012: $47, 326.33I've shaved off nearly $1,000 of debt this month, which feels amazing. Though my totals will not be quite so impressive over the next couple of months (as I will be moving and visiting family in Canada), I hope to sustain this momentum and be completely debt-free (including student loans) in 4-5 years.
Friday, March 16, 2012
Cupcakes and Beer
In a couple of days, my boyfriend C. will turn 31. We've eschewed a weekend trip, presents or any sort of big celebration in general. Instead, we're planning on dinner at Uncle Billy's, some free SXSW shows, and.....cupcakes and beer.
The former two were C's requests, the latter my own idea. This morning, Betty Crocker, Duncan Hines and I whipped up some fluffy yellow cupcakes with chocolate almond icing. I got a "Pick 6" special at H.E.B. and selected a handful of C's all-time favorite beers.
It may not seem like much for a birthday. But a young relative's recent passing has reminded us to relish the small, everyday moments we have together. Plus, my boyfriend is a total sucker for any sort of homemade baked good and craft beer. Since I rarely (read: never) bake for him, I hope that this will be an extra-sepcial surprise.
Here is the finished product:
Happy Birthday, C.! I love you and look forward to spending several more birthdays with you.
P.S.--There is one cupcake missing. I had to make sure I wasn't feeding you bad food. Rest assured, they are delicious :)
The former two were C's requests, the latter my own idea. This morning, Betty Crocker, Duncan Hines and I whipped up some fluffy yellow cupcakes with chocolate almond icing. I got a "Pick 6" special at H.E.B. and selected a handful of C's all-time favorite beers.
It may not seem like much for a birthday. But a young relative's recent passing has reminded us to relish the small, everyday moments we have together. Plus, my boyfriend is a total sucker for any sort of homemade baked good and craft beer. Since I rarely (read: never) bake for him, I hope that this will be an extra-sepcial surprise.
Here is the finished product:
P.S.--There is one cupcake missing. I had to make sure I wasn't feeding you bad food. Rest assured, they are delicious :)
Monday, March 12, 2012
Changes to my Action Plan
Well, here we are, nearly halfway through March, and I am already thinking about revising my debt action plan.
You see, I've had a couple of little life snafus/changes. First of all, I took out a loan through Lending Club to pay off my remaining credit card balance (more about my experiences with Lending Club in a later post). Things had been going swimmingly; I requested an additional payment to be made, and Lending Club debited it and applied it to my principal balace. Except for when I made an additional payment three times my normal payment. Lending Club stuck it into this "cash balance" and it was never applied to my principal. After some frustrating emails and calls in which Lending Club STILL didn't understand my request, they've credited the extra money back to my checking account. Since the payment schedule keeps my on track to pay off the loan within two years, I may just forgo making extra payments on this account and apply them to my massive student loan tab or car loan.
Secondly, my boyfriend C. and I are taking some big steps this summer/fall. As I've mentioned repeatedly, we're moving in together in June. In July, we're taking a road trip to IL so he can meet my dad and his side of the family for the first time. We've discussed the possibility of C. proposing after meeting my family and talking with them (I refuse to say that he's "asking my dad permission"). And a couple of years after that...babies! My subconscious has been in overdrive, spurring dreams of weddings, giving birth and raising babies.
And the possibility of these events happening in the (rapidly approaching) future is causing my slight panic and making me want to go into savings overload. I've always been a saver, and it's been really hard paring down my savings rate to pay my debts off more quickly (sorry, Dave Ramsey).
So, I'm struggling more than ever with how I should pay off my debts and how much I need to be saving (if anything). I never quite know how to balance it all.
Your Turn: Have you had little life "snafus" or changes that caused you to re-evaluate your savings and debt reduction plans? Do you focus on eliminating debts, saving a nest egg or maintaining a balance between the two?
You see, I've had a couple of little life snafus/changes. First of all, I took out a loan through Lending Club to pay off my remaining credit card balance (more about my experiences with Lending Club in a later post). Things had been going swimmingly; I requested an additional payment to be made, and Lending Club debited it and applied it to my principal balace. Except for when I made an additional payment three times my normal payment. Lending Club stuck it into this "cash balance" and it was never applied to my principal. After some frustrating emails and calls in which Lending Club STILL didn't understand my request, they've credited the extra money back to my checking account. Since the payment schedule keeps my on track to pay off the loan within two years, I may just forgo making extra payments on this account and apply them to my massive student loan tab or car loan.
Secondly, my boyfriend C. and I are taking some big steps this summer/fall. As I've mentioned repeatedly, we're moving in together in June. In July, we're taking a road trip to IL so he can meet my dad and his side of the family for the first time. We've discussed the possibility of C. proposing after meeting my family and talking with them (I refuse to say that he's "asking my dad permission"). And a couple of years after that...babies! My subconscious has been in overdrive, spurring dreams of weddings, giving birth and raising babies.
And the possibility of these events happening in the (rapidly approaching) future is causing my slight panic and making me want to go into savings overload. I've always been a saver, and it's been really hard paring down my savings rate to pay my debts off more quickly (sorry, Dave Ramsey).
So, I'm struggling more than ever with how I should pay off my debts and how much I need to be saving (if anything). I never quite know how to balance it all.
Your Turn: Have you had little life "snafus" or changes that caused you to re-evaluate your savings and debt reduction plans? Do you focus on eliminating debts, saving a nest egg or maintaining a balance between the two?
Why I Switched to a Credit Union
Let me preface this post by saying that I was a loyal Bank of America customer for six years. And during that time, I had very few problems with their customer service or way of managing my accounts.
I first really began to consider switching to a credit union in July of last year. One of the local Austin credit unions advertised car loans for as low as 1.9%, significantly better than the 4.95% interest rate I was paying through the aforementioned big bank. However, the hullabaloo surrounding Wells Fargo and BofA's proposed monthly debit card fees spurred me to actually begin the process of researching and joining a credit union.
I eventually chose Randolph Brooks Federal Credit Union (RBFCU). Randolph Brooks is a member of the National Credit Union Association. Here are some of the fabulous features my credit union offers:
1) Up-to-date website and mobile app that allows me track my accounts and even e-deposit checks.
2) Truly free checking. In fact, every time I use my debt card to make a PIN transaction, Randolph Brooks credits $.10 to my checking account (they pay it in one lump sum at the end of the year). Since January, I've earned close to $4.00 (considerably better than the interest on my savings account).
3) Low loan and credit card interest rates. I took advantage of the aforementioned 1.9% auto loan through refinancing, and I should be able to pay my car off at least one year earlier than planned.
4) Members benefits/discounts. These range from discounted insurance rates and products such as TurboTax and Sprint, to discounted tickets for myriad amusement parks and attractions throughout Texas.
In short, I am in love with Randolph Brooks! The fact that there are only 4 locations in Austin and limited ATM access has been almost negligible. I use my debit card at the grocery store and request cash back as needed. Online banking services are comparable to those of the larger banks. Sure, RBFCU does not really offer brokerage or other investment accounts, but its services are more than ample and satisfactory for this elementary school teacher.
I first really began to consider switching to a credit union in July of last year. One of the local Austin credit unions advertised car loans for as low as 1.9%, significantly better than the 4.95% interest rate I was paying through the aforementioned big bank. However, the hullabaloo surrounding Wells Fargo and BofA's proposed monthly debit card fees spurred me to actually begin the process of researching and joining a credit union.
I eventually chose Randolph Brooks Federal Credit Union (RBFCU). Randolph Brooks is a member of the National Credit Union Association. Here are some of the fabulous features my credit union offers:
1) Up-to-date website and mobile app that allows me track my accounts and even e-deposit checks.
2) Truly free checking. In fact, every time I use my debt card to make a PIN transaction, Randolph Brooks credits $.10 to my checking account (they pay it in one lump sum at the end of the year). Since January, I've earned close to $4.00 (considerably better than the interest on my savings account).
3) Low loan and credit card interest rates. I took advantage of the aforementioned 1.9% auto loan through refinancing, and I should be able to pay my car off at least one year earlier than planned.
4) Members benefits/discounts. These range from discounted insurance rates and products such as TurboTax and Sprint, to discounted tickets for myriad amusement parks and attractions throughout Texas.
In short, I am in love with Randolph Brooks! The fact that there are only 4 locations in Austin and limited ATM access has been almost negligible. I use my debit card at the grocery store and request cash back as needed. Online banking services are comparable to those of the larger banks. Sure, RBFCU does not really offer brokerage or other investment accounts, but its services are more than ample and satisfactory for this elementary school teacher.
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