Fabulous Financials

On 1 January 2007, I wrote a message to my future self:

On 31 December 2007, I want you to name at least one thing you’ve improved upon or achieved this year in each of the following areas:

FAMILY

SPIRITUAL

HEALTH

CAREER

FINANCES

COMMUNITY SERVICE

First of all, considering my answers are 10 days late, it’s obvious that I’m still a big ol’ procrastinator. Graduated head of the BS class. Unfortunately, I don’t see this improving much in 2008. Besides career and finances - I’m a certified slacker.

FAMILY

My home isn’t near my immediate family and I like it that way. LOL My mother is a lil spesho’, but I love her no less. The rest of my family is crazy (literally), sexy, cool. When I miss them, I visit. Otherwise, I love from a distance. From day to day, it’s just me and my BabyGirl. I think 2007 has been THE MOST challenging year EVER. Many things I’ll never disclose on the blog, so let’s just say she drove me to drinking. LOL For those who have teenage daughters, can I get a wit-ness?!

Most Interesting (to me) “Family” Posts of 2007

• 2007 Mom of the Year Award
• Mother’s Day Will Never be the Same
• Leadership Camp #1: Award Winning Essay
• Leadership Camp #2: Most Hated Mom in the World
• Nurturing Her Talents

SPIRITUAL

This is the one area that I’m LEAST proud of. Although I never forget the source of my blessings, my spiritual walk gradually became second fiddle in 2007. I haven’t spoken to my God in months and I’m ashamed. Not because of what other people may say when I admit that I haven’t tithed since June. Not because of what other people may say when I admit that I haven’t been to church since September. Not because of other people at all. I’m ashamed because of what God thinks of me.

Most Interesting “Spiritual” Posts of 2007

• How Awesome HE Is
• Tithes and Charitable Giving

HEALTH

*sigh* I’m not fat, my clothes shrunk! That’s my story and I’m sticking to it.

CAREER

Mo’ money, mo’ stress, mo’ problems. Sike, I have a fabulous career! LOL

Most Interesting “Career” Posts of 2007

• Single Ma Has an Interview Today
• I Got the Job!!
• Today is my Last Day
• Worth More Than Money
• Constructive Criticism
• When Your Reputation Precedes You

FINANCES

This can be summed up in three words: I. GOT. THIS.

Most Interesting “Finance” Posts of 2007

• One Financial Goal in 2007
• I Finally Did It!
• I’m Debt Free!
• 2007 Achievements

COMMUNITY SERVICE

Excluding charitable donations, which were extremely low [see here] considering my salary, I performed ZERO hours of community service in 2007. *smh*

If someone who didn’t know me was reading this list (duh, like most of you!), they’d probably think I was the most vain, self-centered, money hungry, selfish person in the whole wide world. And if I didn’t know any better, I’d probably agree. But I won’t beat myself up about it. I made great strides in 2007, but I recognize there are many things in my life that deserve more attention.

To Future Single Ma: Review this list again on 31 December 2008.

You must do better!

~*~*~*~*~*~
Work to achieve, not to acquire.
And as always, BE FABULOUS!

If you enjoyed this article, subscribe to Single Ma’s Fabulous Financials via email or RSS feed so you can receive notifications when I publish new content.

Back in the day, I used to track my credit cards religiously because I had so many - about 22 active at one time. Most of them served different purposes with the various reward options. There was my favorite grocery rewards card, the gas card, store card, office supply card, restaurant card, the card that redeemed points for gift cards, the cash back card, etc. Nowadays, I’m not into juggling the reward game as much. I’ve slowly reduced the herd and stick to cash back incentives only.

It’s been over a year (July 2006) since I’ve reviewed my credit card limits. So here’s the latest and greatest of Single Ma’s credit card family.

1. Bank of America Platinum Priority Visa
• Limit: $50,000
• Thoughts: Ever since this incident, BofA has been on my shyt list. The only reason I keep the card is because it’s one of my oldest - and now my highest limit. I use it occasionally because it’s also my only card with the virtual number feature, which I prefer for online shopping.
2. American Express Blue Cash
• Limit: $42,500
• Thoughts: This is one of my oldest cards. For a long time, it was also one of my highest limits, but BofA surpassed it last year. Unfortunately, the customer service has been surpassed by others too. It’s a cute card though - blue and transparent. I used to get kick out of the stares when I whipped it out, but that fascination gradually wore off. Having an Amex is not exclusive anymore, the brand has been diluted, and the cash back structure is not competitive.
3. USAA Platinum Visa Cash Rewards
• Limit: $35,000
• Thoughts: I love love LOVE this card!! Their customer service is THE absolute best, which speaks volumes because I’m very hard to please. Needless to say, this is also my card of choice for EVERYDAY use. The reward is 1.5% cash back on anything, anytime, anywhere with no annual limit. I wish they offered the virtual number feature. I would NEVER have to use anyone else!! I also use USAA for my primary banking needs.
4. Navy Federal Credit Union Platinum Visa
• Limit: $20,000
• Thoughts: Always nice to have a credit union in the family. Never know when you’ll need a loan with a great rate. The monogram is kinda cute too. LOL
5. Chase Rewards Mastercard
   
• Limit: $20,000
• Thoughts: Can you say poor customer service? I haven’t used this card regularly in ages. It’s one of my oldest cards and will continue to benefit my credit score, but I refuse to help them earn a dime.
6. Citi Professional Mastercard
   
• Limit: $19,900
• Thoughts: I originally opened this card (with the Diamond Reward MC) for 10,000 reward points each and redeemed them for $100 each. There was also a nice little BT offer with no fees, but I never took advantage of it. Because of the 5% cash back on Diamond Rewards, Citi quickly become one of my favorite cards. But…as soon as they stopped offering 5%, I stopped using the card. It’s lovely when you have options. Soon after, I combined the limits and closed the DR. I decided to keep the Professional for business purposes, but I haven’t used it in months.
7. Macy’s Store and Visa
• Limit (Store/Visa): $1,500/$8,000
• Thoughts: This is the newest member of the family, born in May 2007. I love shopping during a semi-annual sale and getting an additional 15-20% off the “clearance” price just by using my card. Macy’s is one of my favorite department stores, next to Nordy’s and Bloomies of course. I’ve never used the Visa option outside of the store, and never will.
8. Wa.lm.art Store Card
• Limit: $900
• Thoughts: Hate. This. Store. Never. Shop. There. The only reason I still have the card is because it’s my oldest revolving account. Otherwise, it would have been history a long time ago.

TOTAL AVAILABLE CREDIT: $196,300

To address the common questions:

1 - I charge everything on my credit cards - from utility bills to a pack of $0.25 gum. All charges are paid in full when the statements close and I earn a few hundred a year in cash back rewards. No 0% BT games.

2 - I always carry my favorite card (USAA) with an extra on rotation for backup.

3 - None of my cards have annual fees.

4 - I have no idea what any of my interest rates are because I never carry a balance, so it doesn’t matter.

5 - Every six months, I use each card to keep it active. Otherwise, the creditor will close it due to inactivity. Once a card is closed in good standing, the history only remains for 10 years.

6 - I track the status on all cards through yodlee using ONE login.

7 - I set notifications on every card (except USAA) to send an email when more than $10 is charged, so I’ll be notified immediately if/when it’s used.

8 - I use a credit monitoring service that notifies me via email of any changes to my credit report.

9 - All cards have a ZERO liability policy, meaning I will not be held responsible for any unauthorized charges.

10 - I prefer using credit over cash due to extra protection, better tracking/budgeting, extra warranties, and of course - rewards.

MOST POPULAR QUESTION: why do I have so much outstanding credit?

A better question is, why not? I use credit as a tool, not as a means to incur debt.

ETA: I don’t know why but someone emailed me just to question my ability to obtain such high credit limits. For the record, everything I share about my financial life is true. When I’m talking about someone, I may gloss over certain details to protect the innocent, or maybe even my identity. But for the most part, my financial life (previous struggles and all) are verifiable under oath. With that said, I don’t have to prove anything to anyone. But just to humor the straggling non-believer, here’s a screen shot of my BofA Plat Visa (card #1 above) account.

Happy now?

If I ever feel the need to lie about my finances, it’s time to shut this blog down!!

~*~*~*~*~*~
Work to achieve, not to acquire.
And as always, BE FABULOUS!

If you enjoyed this article, subscribe to Single Ma’s Fabulous Financials via email or RSS feed so you can receive notifications when I publish new content.

First, I will begin with a short recap of 2006:

2006 annual review: from ($2,500) to $66,333. This was my first year tracking net worth value, so it took a while to find my groove. The first number was merely a guesstimate from the top of my head, but I gradually learned the true meaning of net worth valuation and finally decided what I wanted to track. In April 2006, I purchased my first home but didn’t add its value until July. Around the same time, I committed myself to a complete financial overhaul, established financial priorities and made a commitment to aggressive debt reduction efforts.

Now here’s a quick look at 2007:

[click to enlarge]
Click on the links for more details about each month…

• January 2007: $69,230 - added pension value which increased net worth to $92,659. Also increased my annual goal from $100,000 to $125,000.
• February 2007: $93,820
• March 2007: $99,677
• April 2007: $111,203 - earned a six figure net worth!
• May 2007: $112,324
• June 2007: On vacation in early July, forgot to pull numbers. Paid off car!
• July 2007: $119,694
• August 2007: $118,192* - reduction due to car depreciation and I decided to reduce the value of my personal possessions from $5,000 to $3,000.
• September 2007: $126,187 - met 2007 annual goal!
• October 2007: $131,167 - changed the format of the net worth spreadsheet. Same data, different presentation.
• November 2007: $130,412* - reduction due to market performance and issues with rental property reduced cash flow. Paid off student loans!
• December 2007: $132,857 - spent more $$ than I earned (*smack on back of hand*) but ended the year on a good note.

*Two months of “negative” growth.

In 2007, my net worth increased by $40,198 ($92,659 to $132,857) or +43.4%. I attribute the growth to aggressive debt reduction efforts and regular contributions to my investment accounts despite market fluctuations.

Although my “long term” net worth goal is $1,000,000+, I need to establish a “short term” goal for 2008. Now that I have an idea of what I can achieve, a reasonable - yet challenging - target is $200,000. This is an increase of $67,143 or +50%.

I can do this.

Here’s a summary of my 2007 income and a detailed breakdown of my expenses:

Just a few things worthy of further explanation:

1 - Net income (after taxes) includes salary, bonuses, interest, rental payments, online revenue, child support, cash gifts and credit card rewards. Savings include everything except 401k contributions, so all deposits to the e-Fund, IRA, BabyGirl’s 529, and non-retirement accounts.

2 - Under household expenses [detailed analysis], the cable and landline were discontinued in May and June respectively.

3 - Under debt repayment, the student loan and auto loan balances are now ZERO.

4 - Home Upkeep includes a new dining room set, converting home to rental property, home maintenance, and home/personal supplies.

5 - Auto, half is gas and half is annual maintenance.

6 - Entertainment includes about $2,100 of shopping. Yes, shopping is “entertainment” for me. LOL This may seem high but I had to revamp my wardrobe for the new job. My old job was business casual, but this one is more formal and requires suits. The rest is travel expenses and attending various events out with family/friends.

7 - Dining Out, this includes breakfast, lunch, and dinner - sit down and fast food. I spent more in restaurants than I did on groceries. Wow!

8 - Gifts includes Christmas and other special days throughout the year. It also includes money I’ve loaned but will never see again.

9 - Donations and tithes include money given to my church [explanation for why this number is so low], causes I support, and hard working single mothers with temporary issues I can empathize with.

10 - Unreconciled, nearly one thousand dollars and I have no earthly idea where this money went. It was probably some of that stuff I hate because it’s impossible to track efficiently.

Excluding savings, I spent 49.5% of my net income on absolute necessities. It’s good to know I can survive on half my income if life throws a lemon. Especially since the other half is already dedicated to achieving my 2008 goals. However, it’s mind boggling to see that I’ve spent over $13,000 (13.8%) on “stuff” - most of which I didn’t need.

~*~*~*~*~*~
Work to achieve, not to acquire.
And as always, BE FABULOUS!

As of today, 18 December 2007, I’ve been blogging for two whole years. Man, it sure doesn’t feel like it’s been that long since I’ve written my very first post. Two years ago, I said:

“As I embark on this new journey, I hope to get more organized, learn new things, become financially savvy, and [hopefully] inspire and help others along the way.”

They say hindsight is 20/20, but if I didn’t know any better, I’d think I was psychic. LOL Two years man, two years. *reminiscing* And a full 12 months since I celebrated my first blogoversary. Wow! Anything else would have fallen off my radar by now, so I must really enjoy this blogging thing. I have to admit though, my financial life has improved substantially because of it. Let’s see what I’ve accomplished in the past year. We’ll call it SINGLE MA - PART II:

Personal Achievements

I achieved DEBT FREEDOM baby!

• Paid off my car loan in June.
• Paid off my student loans in November.
• Always pay my credit card balance(s) in full.

Landed a new gig.

• Earned a promotion.
• Earned my membership card into the six figure club.

Moved to a new city/state.

• My BabyGirl started a new school.
• Became a landlord with my first investment property.

Achieved almost all of my 2007 goals.

• Exceeded my annual net worth goal of $125,000.
• Opened a brokerage account for non-retirement investments.
• Increased 401k contributions to max out in 2008.
• Maximized FSA benefits and elected new contributions for 2008.
• Helped my little brother buy a new (to him) car.
• Created a stress free financial system.
• Prepared a draft will.
• Reviewed my life insurance to ensure sufficient coverage.
• Created multiple ways to earn money while blogging.
• Taught my BabyGirl several lifetime lessons.

New goals for 2008.

• Net Worth: $250,000 (2 yrs).
• Increase e-Fund to $15,000.
• Max out 401k and IRA.
• Build wealth through non-retirement investments.
• Sell investment property.
• Take a two week vacation.
• Explore new things that make life worth living.

Blogging Achievements

* According to technorati: there are 842 reactions to my blog and I rank 18,300 out of millions.

* According to site meter, I’ve had over 375,000 visitors (3.8x last year) and 551,600 page views (3x last year).

* According to feedburner, I have nearly 700 registered readers.

* My blog has been featured in several ‘best of’ lists including, but not limited to:

• Top 10 Blogs by pfblogs.org by Clicks per Post
• Top 30 Personal Finance Blogs by Feedburner
• Top 65 PF Blogs by Technorati Ranking
• Top 100 Most Popular Personal Finance Blogs
• Top 100 Blogs to Read in 2007

* Some consider my blog a resource for personal development.

* I’ve also been voted a Rockin Girl Blogger.

* Between multiple sources, I earn hundreds per month from blogging. Not bad considering I only post 4-6x per week.

* I’ve been presented with several freelance writing offers throughout the year, but for one reason or another, turned them all down. However, I recently accepted an offer to write for Work It, Mom!. Without a doubt, this one was different from all the rest. It embodies everything that is Single Ma…a working mom who seeks financial freedom and work/life balance. Expect to hear more about this later.

Love to My Blog Fam

After two years of blogging, I’ve had the pleasure of meeting a select few:

Mapgirl - we’ve been shopping together! She’s actually been to my house AND met my two babies: BabyGirl and Precious!

Debt Hater - we work down the street from each other!

Serenity 3-0 - we’ve been shopping together too…SHOE shopping nonetheless!

Although I missed out on the last excursion, I look forward to meeting BK Diva and HC at our next wine tasting event. Maybe we can add skiing to the agenda for January? Hmm…

For the rest of you who read Single Ma’s Fabulous Financials everyday, especially those who have been reading from the very beginning (always a special shout out to Cocoa Girl who no longer blogs but keep in touch), I thank you. Although I have a tendency of talking to myself often, this blog would be nothing without readers. Your feedback is priceless. So thank you for your daily encouragement, your comments, your emails, your phone calls, and most importantly - your friendship.

And to the straggling haters, I got love for you too. There’s probably about 2 or 3 that I know of, which means I have room for (at least) 17 more. *clearing out space “beneath” me* Keep ‘em coming baby ’cause you make me BETTER! Ha!

If you’re new to SMFF, welcome! Kick back and hang out for a while, so you too can become financially fabulous. To make sure you don’t miss a thing, subscribe to my feed or register to receive email notifications when I publish new content.

Here’s to 2008 and more fabulosity in Single Ma - Part III!

~*~*~*~*~*~
Work to achieve, not to acquire.
And as always, BE FABULOUS!