Unfortunately, that's not the end of the story. Even 4 years later, I still feel the after-effects of that period, not just in my head but also in my wallet. You see, antidepressants are pretty important to getting and staying well. And most doctors prescribe name-brand anti-depressants, the expensive ones.
So if you don't have insurance, you're in a bad place. And having depression can lead to losing your job (thus no insurance) and having a hard time finding one after you've been through therapy, if you can afford it (again, no insurance).
Few people realize the extent of these effects. I didn't until I was in the middle of it. If you're really lucky and have a suitable personality and work hard at it, you can probably pull through to a time where you need neither counseling nor antidepressants. It may take years. I aim to get there some day. But when I spiraled down, it threw a switch in my brain, one that I'm still trying to flip back.
I've gotten to the point where I don't need to see a regular counselor. It's good. Mr. Micah is the son of a psychologist and good at talking me through my occasional bad days. If it's really bad, I can call my mother-in-law, not for an official session but for a little help. That saves us some money.
Unfortunately, I have not been able to move off the medication yet. My dose was cut in half, which worked fine. I tend to cut that in half too (the lowest dose prescribed) and it works pretty well. But if I go without it? Bad things happen, I can't maintain the emotional stability I need to do even normal things.
I worry that if I go off them, I won't be able to work. This job is new, I'm in a temp-to-hire process, and my situation can be a bit stressful. They could let me go whenever they wanted. Now, they said that they want to keep me, but I know they can change their minds.
So in this situation, I have no guaranteed insurance (my husband's job doesn't offer it) and not enough stability to be able to go off my meds. Unfortunately this means paying the full price. As I said, I cut them in half, and since the 5mg dose costs about the same as the 10mg, I “only” spend $45/month on them by buying 1 month of 10mg and cutting them to last for 2 months.
The financial effects for me are at least $45/month, combined with not getting as good a dose as I could. They also include periodic doctors visits and could include therapy.
This is a problem. But I think the cost, anyway, has a comparatively simple solution.
Right now, lots of doctors are prescribing brand-name antidepressants to their patients. Yet there are plenty of generic types out there, a variety which means that they could fit the different peoples' needs. Many are simply older versions of the name brand (which was probably only reformulated because the formula was going to be public property). They can cost as little as $4-30 per month (some do cost more, unfortunately, but still less than regular ones). That would fit most peoples' budgets just fine.
But doctors don't like to switch you off one that's working. I hope their only concern is for your health and not upsetting your equilibrium. New medications increase suicide risk. I'm sure pharmaceutical companies don't have such laudable motives.
I wish that my doctor had started me on a generic antidepressant. I'm still trying to get switched. If you're depressed, if you ever become depressed, or if you're caring for a depressed person, see if you can get them on generics right away. It'll save a lot of money in the long run. It'll make them less likely to spend time figuring out how to afford their medication. It'll probably work just as well (and with several different types to try, you have good odds of finding one that works).
It's too late for me to get that good start. We've laid out hundreds of dollars for my medications. It doesn't have to happen to you. Talk with your doctor about generics. If they're not right for you, at least you tried.
Note: Mrs. Micah is not a health professional, just as she's not a finance professional. Please talk to your doctor before taking any medications.
]]>#1 -- Redskins player with a forgettable name and position* comes on the radio. He asks us whether we consider ourselves Redskins fans. Because he has news--unless our cell phone provider is Sprint, we don't love the 'skins at all. Why? Because Sprint is offering 'skins skins for their customers.
#2 -- On the metro, there were a number of fliers for a condo community. They emphasized that your welcome gift would be a flatscreen tv (I didn't see size mentioned).
]]>#1 -- Redskins player with a forgettable name and position* comes on the radio. He asks us whether we consider ourselves Redskins fans. Because he has news--unless our cell phone provider is Sprint, we don't love the 'skins at all. Why? Because Sprint is offering 'skins skins for their customers.
#2 -- On the metro, there were a number of fliers for a condo community. They emphasized that your welcome gift would be a flatscreen tv (I didn't see size mentioned).
Time out for a reality check. Would you actually switch cell providers just to support your favorite team? Cancellation fees, start-up fees, not to mention the possibility of a lower rate. Would you buy a condo for the flatscreen tv?
Perhaps, if you were waffling between two providers (including Sprint) or if you were looking for a condo with similar pricing, location, and amenities, these perks could justifiably sway you a bit.
Some might argue that the point of the condo ad was just to get people out looking. Maybe. But should you really waste your time on something if it's not what you really want, but you like the shiny bits tacked on? From the moment you decide to check it out, just in case, I'll bet that you're subconsciously looking for good things about it, things that you wouldn't normally care about.
Making I'm taking all of this too seriously. But I think it's crazy that even one person might change plans for the skin or might consider a condo just for the flatscreen offer.
Such perks can work in one's favor, of course. If I was about to buy Sprint, or already a Sprint customer, I'd probably be happy to take advantage of this new skin (if I were a fan...). It'd be aimed at drawing new customers, but I could still benefit.
In the same way, if I were looking at those condos very seriously, the sudden offer of a flatscreen tv would be nice. Mr. Micah and I had this experience with our apartment. We were already in contact with the leasing people at this very spot. They mentioned to us that if we moved in in June, which we'd said we were planning to do, we'd get $100/month off our rent for a year. Apparently June was a slow month for move-ins. It was perfect for us.
Seen any good "special deals" lately?
*Dear fans, I just moved here and I don't follow football. Sorry.
]]>The credit card company will pay off your lowest interest balance first with the money you send in. This is guaranteed to cost you money. The amount depends on your balance and percentages.
]]>The credit card company will pay off your lowest interest balance first with the money you send in. This is guaranteed to cost you money. The amount depends on your balance and percentages.
An example. Suppose Mr. Micah and I had $5000 of debt at 30% APR. Now, we called the company and they agreed to lower our APR to 13%. But this APR would only count towards new purchases (they don't always say this part, so be sure to check with them. it's hidden in the fine print). Now we go out and spend $1500 on a couch. Dining room set? Flat screen tv? I can't imagine spending $1500 for anything but an entire month's expenses, so this is a stretch.
We send in $250 to start our debt snowball. The $250 will be applied to our $1500 purchase, not our $5000 of old debt. So the $5000 will continue to accumulate interest at the old rate.
If we pay off $250 every month, we'll eventually pay off the whole thing. But we will have paid more money total (because of the higher APR) than if we'd gotten them to apply our payments to the balance with the higher APR. In this case, $369 more would go to the CC company.
So find out how your CC company will let you pay off the higher-interest balance first. Maybe it's as simple as writing on the check line, "apply to higher-interest debt." But call them. Don't assume. A simple call to their service people should help you find out the exact protocals of your company.
Even if the service people annoy you, do it. Avoiding this call will cost you in the long run (especially if you always carry a balance, since it's guaranteed to be at the higher rate!). Make the call today.
(note, here's a link to the spreadsheet I used for my calculations. 30% APY means 2.5% per month. 13% means 1.08% per month. We assume that you begin with sending in $250 right away. Good job! Please let me know if you have any methodology questions.)
]]>The author admitted that he'd parked in a permit-only lot. But he thought the towing company was unethical for hiring local teenagers to drive around and document illegal parking (county law requires photographs, calls put in with the dispatcher, and reporting the whole thing to the police). And that they were complete douches for actually towing his car, since the lot wasn't full.
Um. It was permit-only. It was also private property. I think it would be great if they said something like "permit-only until 5pm," but they didn't and he knew it. I also think it would be great if parking garages were free. And if gas was free. And if rent was free!
His sense of entitlement cost him $100 and over an hour of hassle. Parking garage? Probably $7-8 for the evening.
I'm sure there are evil towing companies in this world, but this wasn't the case here. Apparently, he got the car back in perfect condition. So no foul on the company's side.
There was a girl at our sister property who had a tag to park in the garage, but she forgot it and spent 40 minutes or more in the 20-minute only parking. This was her second tow for doing the same thing. And believe me, she was pissed. She even called our office (and we have no control over sister office).
My initial reaction is that these people are idiots--they broke the rules and they're upset they got fined for it. Especially the girl who's had it happen before.
But I suppose that there are ways all of us take chances with our money. Speeding comes to mind. And if we feel entitled--like we're better--this can lead to buying name brands when we can't afford them or buying houses that are too big for us (and we can't afford) or breaking the law to get somewhere faster. We feel entitled. We feel we shouldn't have to settle for inconvenience. I'm not immune from such attitudes myself.
You're allowed to feel this way, but be aware that it will cost you money, get you into debt, and/or cause you inconvenience.
Edit: Simpsons Sunday night was about towing cars. I guess that makes this more relevant, eh?
]]>First – Mr. Micah and I paid off his credit card! All gone. I’ve updated my NetWorthIQ and NCN repayment chart. First step of the debt snowball is done! Now we focus on the auto loan.
Second – I found one of those Nantucket Nectars bottle caps which say “Nantucket has no fast-food franchises” or whatever the specific phrase is. I’m going to mail it in this week for the chance to win $1000. It’s worth a shot.
]]>First – Mr. Micah and I paid off his credit card! All gone. I’ve updated my NetWorthIQ and NCN repayment chart. First step of the debt snowball is done! Now we focus on the auto loan.
Second – I found one of those Nantucket Nectars bottle caps which say “Nantucket has no fast-food franchises” or whatever the specific phrase is. I’m going to mail it in this week for the chance to win $1000. It’s worth a shot.
Third – Best news? Associated Content is going to pay me for an article I submitted. I'll post the link when they give it to me. Sweet sweet $4 debt snowflake!
I also turned down the opportunity to allow a payday loan company to advertise on my site. Didn’t feel that I could take their money. It would’ve helped, but I couldn’t do it in good conscience. Mr. Micah told me he was just as proud of that as of my financial achievements.
However, if any advertisers are reading this, I’m open to discussion…unless it’s payday loans, defense contracting, or the mafia. Definitely not the mafia. If you’re in the mafia, I hope you have a great day, but please don’t talk to me.
]]>If we're looking to get out of debt, one of the best ways to do that (besides cutting spending) is to make more money and put it towards repayment.
]]>If we're looking to get out of debt, one of the best ways to do that (besides cutting spending) is to make more money and put it towards repayment.
Money Makeover guru Dave Ramsey suggests that people take on a part-time job or two as part of their debt snowball. Other people work 50-60 hours per week to hang onto a high-paying job or get overtime. Some supplement their income with things like E-bay, Etsy, and the like. Some blog for money or participate in other online money-making ventures. Or write novels (which don't guarantee any return).
The trick is in finding balance. I don't think the part-time thing would work out for me. Mr. Micah and I are recently married; I think it's important to spend time together in the evenings, as we do. More importantly, perhaps, we suffer from depression so we need the mental health break.
On the other hand, the online options work better for me, since I love to write and blog.
Debt repayment is a tricky business, as is wealth accumulation. Sometimes the debt seems so overwhelming that we're willing to sacrifice happiness and even well-being for it. Whether by keeping a bad job, taking to many jobs, or just thinking about it too much. That sort of thing might work for a few months, maybe a year or two, but without breathing time, it's not worth it in the long run.
Here's how a number of bloggers reflect on earning money and the balancing act of having a happy life while working and paying off debt:
John, from Queercents, wonders if he sacrificed too much and reflects on what he would have done differently.
Nina, also from Queercents, writes on the art of simultaneous professions.
Kimber, of No Limits Ladies, explains the psychological earnings threshold and how she wishes she'd known about it sooner.
Plus an expose of the world of young magazine subscription sellers (NYT). Earning money really costs these young people!
]]>Let's just assume that we all know the benefits of compounding. If not, this post by Get Rich Slowly has some good videos of Michael Fisher talking about it along with links to charts.
In my financial life, there are two big issues staring me in the face. One is the importance of starting compounding young because of the difference it makes. The other is Mr. Micah's student loans of over $100,000 (that's for getting a PhD)
So Mr. Micah are working on living frugally and putting some of the money towards paying off debt and the rest towards saving and investing.
The problem is that I'd really like to add a third party. I believe that it is right for me to give to others. Particularly organizations which relieve suffering. I see this as a religious issue as well as a part of being a decent human. Therefore, Mr. Micah and I try to give $30-50 per month to a couple places we think make a difference.
But I know that I could be giving more. Even if I didn't cut out of the debt payments, I could cut out some of the savings. What if I die, for instance, before I start really really giving? (I plan to do so by age 30, at which point we should have paid down a lot of the debt and started a decent savings going—so that I can put some money in it and focus elsewhere.) What if the world really really needed my money now?
I know that I want to leave some of it to worthy groups. But if I die young, there'll be nothing to leave.
Having been a campus social activist, I know lots of places where I could give. I know what I'd do if someone gave me a million dollars to give away. And I could give of my own, if I didn't think that compounding was worth so much in the long run.
This is, I suppose, the moral and psychological side of personal finance. It's emphasized each day as I pass by a number of homeless on the way to work and remember how many are homeless and destitute around the world. How many women could really use a hundred-dollar micro loan to start their own business? What kind of returns in quality of life would that bring?
It's painful to say “not yet.”
The only way I've been able to deal is by making a resolution. Until I can give monetarily, I will be particularly involved in other forms of giving—time, etc. Those little Alzheimer's Art Quilt Initiative quilts or the ones I make for preemies. The latter won't save the world, but it will provide comfort. The former might someday help people not die a horrible living death like my dear grandfather did. Earlier this month, I did a post on some ways that one might help others without giving money.
Do I feel like that's enough? Not really. I could be doing all this and also giving the money. But I also don't feel like a total failure. I could also ask those who are interested to give to charity instead of giving gifts—since I don't really need anything.
It's a start. Life is a process, finance especially. It feels like something to be sorted out. Yet it's not the kind of thing that can be fully sorted, but the kind where you keep working at it. Like some balls of yarn which are endlessly tangled.
]]>Mr. Micah picked up a stray water bottle (I keep backups from when I've had to buy water) and asked if I needed it.
When I said no, he cut it in twain and used the neck part as a funnel. Brilliant!
(yes, he washed it)
I love him so much! I told him I was going to brag about him on here. So there's a new kitchen solution for you. Courtesy of my lovely man.
]]>Mr. Micah picked up a stray water bottle (I keep backups from when I've had to buy water) and asked if I needed it.
When I said no, he cut it in twain and used the neck part as a funnel. Brilliant!
(yes, he washed it)
I love him so much! I told him I was going to brag about him on here. So there's a new kitchen solution for you. Courtesy of my lovely man.
]]>That might sound boring, but it's really like reading a story. I've already started with one of our more interesting tenants.
More importantly, she told me she'd finally gotten in touch with the placement agency. Our company has an arrangment with them that after a temp has worked X hours, the company can hire them without a bonus to the placement agency. She was unsure as to how many hours. Turns out it's 675. :-p I've worked 221 of those so far. It looks like it'll take until December.
That's good and bad news. On the one hand, they're not postponing my employment because they don't like me, it's just their policy. On the other, no raises until then. *sigh* We weren't counting on the raise, but they'd be nice for debt-reduction and savings.
It was very nice to be open with Bobbie about this. I'd been too nervous to mention it to her. But now everything's in the open. She won't actually be doing the hiring, the boss one level higher will. So she also said she can't make guarantees, but she expects everything to work out.
Other opportunities:
Since Bobbie's gone and I'm done with my projects, I think I'm going to draft the craigslist posting, as well as reading tenant correspondance. That'll be for sewing/hemming/some alterations. Hopefully Mr. Micah will help me make it sound even better. He's better with advertising sometimes.
Second, based on a commenter's reccomendation, I signed up with a site called Associated Content. I'm going to try to write two short personal finance articles for them per week. If they don't accept it for pay, one can still get paid based views. I'll link to these pieces from the blog and perhaps post them here. Certainly post them here if they're not published.
I wish I had something more interesting to say, but it's Friday afternoon and I'm sleepy. This morning was quite busy, full of phone calls and other such work. It was nice to be up and moving around and accomplishing things.
I'm feeling happy and sad about the hiring news. Happy that there's nothing wrong with me. Happy that I have a timeline and a goal. Sad because I was hoping it would come sooner. Sad because I think the temp people were overly optimistic about the hiring process. Sad because I'm not great with waiting. I can do it but I won't like it. Sad because we won't have more money to save and pay off debts (though the other work will help!).
]]>Since I was 13, I’ve been sewing clothes. I’ve made 4 Civil War era gowns (one done from an authentic pattern to its specifications and 3 done from modern patterns), 2 wedding dresses, 1 bridesmaid dress, other dresses, little summer outfits, pants, tunics, lots of stuff. Lately I’ve been focusing more on quilting, because I like it better. It suddenly hit me, however, that I could augment my income by taking in some sewing, as they used to say.
A helpful poster on TSD suggested that I advertise my services on Craigslist. Today’s been very busy at work, but tomorrow or this weekend I’ll definitely get around to that. I also need to practice my skills on altering. I can do simpler things like hems, but when it comes to altering something commercial, I need to learn more. Last year I found a $1 book at a library sale which lays it out. And a good friend got me a whole pattern-designing book/CD-ROM as a wedding/graduation present.
(note to blogher readers. This comes from my blog where I've been looking at developing some income from my blog)
I experimented with ads a bit on here, but I think I’m going to take them off. Doesn’t seem worth it unless I had much higher traffic. Also, I can’t control what’s being advertised, which bothers me. If, say, I was a well-known blogger then I could get someone like ING to advertise on my site—instead of steroid stores. I mean, what the crap? Steroids?
Instead, I’m looking into something where I could post reviews or somesuch periodically (say, weekly?) and be paid to post.
I’ve been looking at PayPerPost. But I’ll have had to be on here 90 days. That would be in early November. So look for such content around that time. I definitely don’t intend to do it more than twice a week, probably only once. And if I do it twice, I’ll probably have my own entries that day too. Because I don’t want to be a corporate shill and I don’t want this blog to be about that.
But since the blog is about finance and it’s a legitimate way to earn some money and we need money to pay off our debts or save for retirement…(see how I’m justifying it to myself?) I’m going to do it. As long as I can find relevant things to write about. Like finance.
]]>Yesterday, I mentioned Fiveberries’ post about sleeping naked to save money and save the planet.
]]>Yesterday, I mentioned Fiveberries’ post about sleeping naked to save money and save the planet.
That got me thinking on how I wear clothing, what steps I take to avoid extra laundry loads, etc. I divided it into three types of clothing—business, normal, and sleepwear—and how I handle each one.
Business – I only own 6 (?) blouses/business shirts. As a general rule, therefore, I wash them weekly. I have 3 suitable pairs of pants, which I wash biweekly. I also wash my jacket (goes with one pair of pants) biweekly.
Everday/Normal – After I get home from work, I frequently change into something less formal. However, since I only wear them for a few hours, I tend not to wash these clothes until I’ve worn them at least twice or gotten all sweaty in them. Jeans are washed every two weeks, barring emergencies.
Sleepwear – As light as possible. So often this just means old t-shirts and panties. Sometimes little shorts. In the colder parts of winter it’s a long-sleeved nightshirt and pajama pants. Generally pajamas can go for a whole week. Sometimes I use a t-shirt that I’ve already worn twice.
Underwear – Yeah, that gets changed daily. I have a limited supply of thongs (amazingly comfortable ones from Target) which I hand-wash and hang dry. Keeps them from being eaten by the machine. Bras are washed at least every 2 weeks.
This is how I’ve learned to strike a comfortable balance between washing everything every time and not feeling too grungy. Plus it saves money. I use a dryer rack on most occasions, which means that in a given week I often don’t spend more than $1.25 on laundry. My whites are few and I sometimes ask Mr. Micah to put them in with his. I hand-wash others.
How do you strike a balance between laundry, ecology, and frugality?
]]>Today, No Credit Needed is hosting the 92nd Festival of Frugality! This is the first festival/carnival of any kind I’ve participated in, so I was psyched.
I submitted my post on “shopping at home.”
Here’s a just few other great posts from the festival:
]]>Today, No Credit Needed is hosting the 92nd Festival of Frugality! This is the first festival/carnival of any kind I’ve participated in, so I was psyched.
I submitted my post on “shopping at home.”
Here’s a just few other great posts from the festival:
Growing Up writes about the cost of fear. Are you too scared to call companies and ask for a lower interest rate or a better plan? Until I started working, I was quite nervous about such things. Now, fortunately, it’s much easier for me. I do it often enough at work that it’s become routine.
A Penny Closer has some good thoughts on how to balance living frugally with those little luxuries which make our lives so much more enjoyable.
Fiveberries points out how we can save money (and the earth) by sleeping naked. I should post sometime about what Mr. Micah and I do about sleepwear and other clothes.
And so much other great stuff!
In other news, Bobbie lent me Confessions of a Shopaholic. In a way, it makes me wish that my debt were for something a little more fun. It’s entirely student loans and car. Ok, also $720 of credit card debt, but that wasn’t my card. Why couldn’t it be $114,000 of angora sweaters? Oh well. I’ll live vicariously through her. And her antics definitely keep me from wanting to shop. Kinsella does a good job of making it sound both fun and miserable. I love her writing!
I think a whole section of the book is essentially a study on attempted frugality. For example, our main character planning to save $120 (equiv) a week to pay off her debt. So she decides to be frugal. Some things that happen are just amusing, but others are quite serious issues. She adopts the mindset "My new frugal thing starts tomorrow, thus I should buy things today. And it's not really bad because I'm really going to be saving money." Then, once she starts, instead of objectively evaluating costs, she tries to run with what the author of her frugality book recommends. Make a curry? Easy for me because I already own curry spices, have some recipe books (get others at the library) and know how to find recipes online. For her? requires buying spices, pots, pans...costs lots more than takeout.
Is it really being frugal if it requires major expenditures? Or is it an investment, like my $7 lunchbox in which I've packed lunch every day? (ok, Mr. Micah did the packing, but it's a valid point.) In her case it's not, because she can't cook worth beans. The beans would be very burnt.
]]>1. Giant* generic nasal strips. Mr. Micah uses these because otherwise he’ll periodically snore. We tried out the Giant ones first, but they didn’t work well. So we switched to Breathe-Right (Rite?). Turns out they have more adhesive which helps them stay on better and open the nose more.
]]>1. Giant* generic nasal strips. Mr. Micah uses these because otherwise he’ll periodically snore. We tried out the Giant ones first, but they didn’t work well. So we switched to Breathe-Right (Rite?). Turns out they have more adhesive which helps them stay on better and open the nose more.
2. CVS noncomedogenic, non-salicylic moisturizer with sunscreen. For some reason, it had a gritty texture and made my face feel bad. Plus it burned if it got in my eyes. Never again! It was $4 cheaper than the Neutrogena version but not worth the discomfort.
3. Giant scouring pads. Rusted after the first use. I mean come on! One use? We can still use them up, since they work for that first use, but we’re going to go with another brand next time.
4. Giant all-purpose cleaner. Badly made bottle, the top won’t stay properly screwed-on. Kind of frustrating. We may still get it just because I don’t use it often. Just in the bathroom and occasionally the sink.
Here’s a few good generics Mr. Micah and I use on a regular basis:
1. CVS Benzoyl peroxide cream (like Neutrogena “On the Spot”). I use it to prevent breakouts. Just as strong as name brands and no negative effects.
2. CVS lubricant. It’s packaged just like Astroglide, but a different color (purple, I think?). I prefer the 2 in 1 warming because it’s great for massage lotion and CVS doesn’t offer that yet. At least not in my area. But as a lubricant it’s just fine.
3. CVS non-drowsy nasal decongestant. It’s true! It doesn’t make me sleepy, while Benadryl knocks me out, and it works as a decongestant. Plus it’s cheaper than the others and doesn’t have any ingredients that get you carded.
4. CVS soap. They have one which mimics Dove bars, they’re even interstocked. It’s just as good as Dove. Except it wins in the price department!
We also buy most of our meat, canned vegetables, dairy, etc, generic. I haven’t yet had a problem with Giant on those scores. They also have decent paper products, though nothing noteworthy.
*note: most of the stuff on here is Giant or CVS. Those are closest stores for us, so the ones where I do the most generic shopping. Plus they’re bigger than some stores I used to shop at, so they actually offer generics. I just discovered a local Aldi, so we’re going to give them a shot this week. I might write more about that later.
]]>The thing is that my cheetah is $114,000 big! And I'm making approx $30,000 a year, in a temp-to-hire position from which I haven't yet been hired, and Mr. Micah is making another $7500 through his teaching. $5000 this fall and $2500 this spring (so he can finish his dissertation).
]]>The thing is that my cheetah is $114,000 big! And I'm making approx $30,000 a year, in a temp-to-hire position from which I haven't yet been hired, and Mr. Micah is making another $7500 through his teaching. $5000 this fall and $2500 this spring (so he can finish his dissertation).
This thing is going to take a while. We fall into the camp of 5-or-more years people and so we're going to have to modify things a bit.
First, while doing our debt snowball, we're also putting some into a Roth IRA. Why? Because I'm quite young and don't want to miss out on the time value of money. We'll be snowballing lots and lots, but we're saving some. We've also got a $3k emergency fund instead of $1k because we know there may be an emergency this summer (more on that later).
Second, we may have to stall our snowball over the summer. It'll depend on my employment and Mr. Micah's. He's going to be looking for a teaching post next year, in the area, but we're not sure how soon he'll be able to find one. So we may just be on my income. In which case, there's $1k of emergency money specifically designated to meet things in case my income can't--like keeping current on accounts and handling our rent (which will rise $100 in June).
If he can't find a job by fall, Mr. Micah's going to have to find some other temporary employment...but I think he should have the whole summer to look. We'll see what happens.
Now here are two good moves I made today to help get things going.
First, I e-mailed my contact at the temp agency (I plan to negotiate for $35k if she gives me the go-ahead):
-----------------------------------
Hi "Jill",
I wanted to check in with you about my job. I like it a lot, am learning new things and really getting confident in some of the stuff I found harder at first. With others, I'm still improving but definitely making process. Friday, Bobbie had the day off and I did quite well in her absence. In sum, I would like to work full-time for [company].
Would it be appropriate and wise (since you've been in conversation with her) to discuss my future at [company] with Bobbie? Is this something that it would be better for [temp agency] to bring up?
Please let me know.
Thanks,
"Mrs. Micah"
---------------------------------
I'll let you know what she says. If I get the job and make $35k, the raise will be split between car payments, retirement, and emergency fund...probably 40%, 40%, 20%. We can live on what I'm making now.
Second, I worked out a plan for how to allocate Mr. Micah's teaching money. We're living entirely off my salary, so his can go into other things.
I found out that we have enough money for current expenses, $2.8k emergency, and to pay the credit card bill off entirely. So we're going to do that before the 30th.
Then we'll be putting a total of $400 into the emergency fund (over the fall), $1800 towards the car payment, and $1600 to retirement fund. That assumes just under $4k take-home from his $5k position. There should be more, I think, but I'm being conservative. Any extra will go to the car.
After the fall, then, we should only owe $6200 on the car. Possibly less. If Mr. Micah gets a full-time professoral job this summer, then I'll devise a plan to get it paid off by the end of 2008, or so.
]]>First good thing in the financial sphere:
Something I think I'd forgotten to mention was that I promised myself to get $1000 of our cash cushion into a CD by my birthday. Well, my birthday was Thursday and I got it into an ING CD on Tuesday! Now it's earning 5.25% APY. It's a 12 month CD, so when we pull it out we'll have another $52.50. That's not much, but if we don't need it, we'll reinvest it in a CD and so forth. We'll probably take the earnings and add it to our mutual fund portfolio or somesuch.
First good thing in the financial sphere:
Something I think I'd forgotten to mention was that I promised myself to get $1000 of our cash cushion into a CD by my birthday. Well, my birthday was Thursday and I got it into an ING CD on Tuesday! Now it's earning 5.25% APY. It's a 12 month CD, so when we pull it out we'll have another $52.50. That's not much, but if we don't need it, we'll reinvest it in a CD and so forth. We'll probably take the earnings and add it to our mutual fund portfolio or somesuch.
My goal is to have $1000 in a savings account, just in case. $1000 in a CD, where it makes some interest but is easily accessible (w/penalty* depending on when I pull it out, but not that bad) and $1000 in a money market account or fund...I'm still evaluating. Later this week, I'll talk about some additional savings I plan to do and why I won't be investing that money "better." It has to do with a projected decrease in income and getting through that period.
So, we'll have a total of $3000 to get at for emergencies. All interest earned will be reinvested in one of our better investments (which we don't yet have but should by Dec.) like a Roth IRA or 401(k).
Second good thing in the financial sphere:
Trent at one of my favorite blogs, The Simple Dollar, was given 5 copies of Inuit's Quicken Premier 2008 to give away. I was lucky enough to get one of them! I downloaded it today and have started linking it with our checking/savings/CD accounts. Very excited. Still learning the ropes, after which I'll post a review!
While at the library today, I checked out a copy of Quicken 2007 for dummies. Obviously it won't be entirely relevant, but it was free and will give me a better idea of what I'm working with.
Third good thing in the financial sphere:
Because I've been tracking our finances, I've figured out some places where we can cut down. From the beginning, we've been living pretty cheaply, but I found one expense today we can reduce. Mr. Micah and I drink a lot of water (and he drinks tea & coffee--made here, not bought) but we also like milk. And even though we only have a few glasses a day, the cost has been going up.
I was wondering how to reduce the cost and remembered a trick that my Canadian relatives use. Their milk comes in a bag. Two bags, actually, because they get one of skim milk and one of powdered milk. They they mix up the powdered with water and pour the skim into that same pitcher. 1 part "real" milk to 1 part rehydrated powdered. Tastes just fine. Mr. Micah drank a lot of powered when he was little and his family poor. I wouldn't want to put him through that again, but he's ok with this.
Last things:
I've been reading Dave Ramsey's Total Money Makeover which I got from the library today. It's good stuff. A lot of it we knew already, but as he points out, we know that eating less and exercising will help us lose weight but it helps to have some program keeping us going. I think what I'd already come up with was a less-formulated version of his.
Also checked out the Lazy Person's Guide to Investing after reading an excellent review of it on The Simple Dollar (seems like a Simple Dollar day!). It seems like a good starting point. As I said, I want to start my first non-CD investments by December.
Oh, and a shout-out to our library which has lots of good books. :-) And to my Aunt who sent me a craft-store gift card for my birthday. I'm going to use it instead of the craft budget, thus saving more this month!
* note about penalties for this account. Because the CD is for 12 months, there is a fee of 3 months' interest, regardless of when, prior to maturity, I redeem the account. For an investment of $1,000, that comes out to $13.13. That's ok with me, for the convenience of having money earning money (more than savings) and still available in an emergency. I certainly hope that I won't need to touch it or that it'll be at least three months, in which case I'll get my full $1000 back with whatever interest it's earned (beyond the $13.13).
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