Fabulous Financials & Fitness

This cash only trial isn’t working too well for me.  Going cash only will require a complete lifestyle adjustment because I happen to like using my credit card for everything.  For example:

1 – When BabyGirl completed her first college application online (yay!), I handed her my credit card.  I’m not comfortable using a debit card for online purchases.

2 – When I stopped for gas, I whipped out my credit card.  I’m not comfortable with the extra hold they place on your funds when using a debit card for fuel purchases.

3 – To curb the urge, I even removed all credit cards from my wallet.  But this was a decision I’d soon regret.  One day, I tried to return an item and was so mad at myself when I got to the store.  Why?  Because I needed my credit card to finalize the refund!

4 – When I get money out of the ATM, it burns a hole in my pocket…literally.  Knowing I have cash makes me think I should to spend it.  Even if I don’t need anything, I will find something to buy.  I spent $40 in two days and have nothing to show for it.

From my perspective, using cash is risky business and may even cost extra money. You run the risk of having your debit card number stolen when making online transactions. If that happens, you’re out of cold hard cash!  If you pump $20 worth of gas, the station may put a $40 hold on your funds for x number of days. If I’m living a cash only lifestyle, I don’t need anyone taking more than what I owe!  And worst of all, if you’re like me, cash in your pocket just makes you want to spend it!  And I don’t know how to overcome this weird impulse.

Me no like cash. Help!

Any of you cash only? If so, how do you do it?

- HSBC redeemed itself for this stunt.  Reversal of the unauthorized debit and refund of the INSF fees were credited to my account overnight.  But I’m still irritated by that phone call.

- Despite their screw up, I managed to save and invest ~$6,000 last month, in addition to my 401k.  No, I’m not a saving fanatic.  Ok, yes I am.  But most of it came from an extra paycheck in October.

- I received a $10 tax bill for my dog. *scooby doo look*  Why is the county imposing a tax on my pet?  Can I claim my pet on my taxes now?  Better yet, can I claim this tax as a deduction on my state or federal taxes?

- I submitted a $350 dental claim to my “PPO” insurance company.  But get this, because my dentist is “out of network,” I will only be reimbursed $83.50.  This means I have to pay $266.50 out of pocket for an annual exam, cleaning, and routine xrays. Ouch!  I love our dentist and we’ll keep seeing him, but I may have to negotiate some of his fees.

- Research says indoor allergens are more harmful than outdoor allergens.  BabyGirl’s asthma has been acting up lately, so I paid $260 to have my furniture upholstery and carpets cleaned throughout my entire apartment.  This could be all in my mind, but I swear, it feels like even I can breathe better.  Now I understand why people prefer all hardwood floors.

- Once you go Nordstrom, you can’t go back.  My feet are not fond of cheap shoes anymore.

- My mortgage is increasing $32 to beef up the escrow account.  This annoys me because for the past three years, my mortgage company has given me an escrow refund.  The first year, my mortgage went down because they said I overpaid in the escrow account.  The second year, my mortgage went up (with a refund) because they said I didn’t  have enough in the escrow account.  The third year, my mortgage went back down again.  And now the fourth year, it’s up.  All of this paperwork, monitoring and adjustments to balance a freaking escrow account.  Umm, how about this?  I can pay my own dern taxes and insurance!

- I’ve decided that I’m having a Game Night/Holiday Party for my birthday  – friends, games, food, and mixed drinks.  This is a milestone birthday year and I can’t wait for my “season” to begin!

- I’ve been in a writing mood and have several posts scheduled to publish over the next week.  Shocked? LOL

- My weight has been going in the wrong direction.  I prayed for God to help me lose weight.  I asked for understanding.  I need to understand what causes me to lose sight of my weight loss goal so I can overcome it.  I asked for motivation.  No one does exactly what they’re supposed to do every single day, but I need motivation to get back on the horse when I fall off.  Why did a personal trainer move into my apartment community?  Guess where?  Right next door!  How do I know?  Because he put up flyers to offer his services (exercise and nutrition advice) in our neighborhood fitness facility.  God is funny!

Have a fabulous weekend!

I get many emails from people who are overwhelmed with their finances.  Either they don’t know where to begin or they’ve tried to take on too much or they’ve been chugging along for months and feel like they’re getting nowhere.  At some point between the financial chaos, they decide to contact me.

I can not give you financial advice.  And I’m the last person you should ask for investment advice.  Why?  Because I’m not qualified.  This is why I only blog about my own financial life instead of providing information as if I’m an authority.  Somewhere along the way, I hope you will pick up something that is useful to you.

Besides, personal finance is a complex matter because it is intertwined with so many different areas of life.  Most likely, if you ask me a question about your personal finance problem, my answer will almost always be some variation of “it depends.”  So I’ve decided to share my overarching view of money management based on my own life.

No matter where I start, before I can make sense of my finances, I have to determine what my goals are, place them in order of priority, then focus my actions so that they are aligned with my goals.  Without a clear destination, I’m likely to make decisions without a purpose and feel overwhelmed with the information overload.

As you’ve read for the past 4 years, my financial goals have been as follows:

• Debt freedom
• Emergency fund
• Retirement
• College savings
• Financial freedom

Based on that order of priority, I contributed the minimum to my e-fund and retirement, then focused all excess income on paying off debt.  When my debt was paid, I focused all excess income on building my emergency fund (it was $10k to start).  When my emergency fund was fully funded, I focused all excess income on maxing out my retirement accounts (IRS mandate – $16.5k 401k and $5k IRA).  When I earned enough money to maximize my retirement accounts, I focused on saving a little to assist my daughter with her college expenses (min state tax deductible amount).

Throughout the process, I also focused on maximizing my income, reducing fixed expenses, and maintaining my nest egg(s).  When my goals were met, then and only then did I consider investing in taxable accounts.

As I progressed, I established more challenging goals to ensure that I continue to make responsible financial decisions.  All contributions towards my goals are put on auto pilot to avoid any excuse for not achieving them.  I never have extra money to spend frivolously “because it’s there.”  Every dime has a home.  Whatever is left over, is meant for me to spend guilt free and enjoy life.

End of 2nd quarter and I’m only $6,700 short of achieving my $200,000 net worth goal!

I’m also only $8,000 short of achieving my $50,000 savings goal!

Unfortunately, I own a house that isn’t my home, but it could potentially ruin every financial goal I’ve ever accomplished. *sigh*

I’ve contacted my friend, who is a real estate agent, to sell it.  When my tenants move out next weekend, I’m meeting him at the property to discuss a strategy.

A friend of mine has reached a crossroad in her career.  After exhausting all of her known options, she came to me for advice.  I’m honored by the request and I look forward to helping her.

If it weren’t for 3 paychecks in July, my spend plan would have been in the red burgundy.

BabyGirl received her first paycheck last week and her net deposit was around $860.  Instead of saving 20%, she only allows herself to spend 20%.  Interesting concept.

If I admired a person’s business acumen/career success and they offered me an opportunity to work with them, I’d jump on the first train coming.  Movers and shakers don’t waste time with people who can’t make a decision -  think long, think wrong.

I spent 2x more than my allowed fun limit.  Let’s just say, July was an extra fun month!  But August is a new month, so I’m going to try it again.

[side note] ~*~*~*~*~*~*~*~*~*~*~

There’s a new chic in my office who makes me want to slap the ish out of her…just one good time.  If anyone says “good morning, how are you?”  She responds “I’M SUUUUUUPER FAAAANTASTIC!” in this annoying, high pitched tone.  I promise, before I leave this office, I’m going to say “Girl, go sit yo’ super fantastic, happy ass down somewhere!”

[/side note] ~*~*~*~*~*~*~*~*~*~*~

BabyGirl’s senior portraits were beautiful and all, but they were NOT worth $500.  When we get her real cap ‘n gown, we’re going to take pictures again…at Target!

College tours, SAT prep, SAT test, scores, grades, GPA, transcripts, letters of recommendation, personal statements, college applications, scholarship applications, acceptance letters, rejection letters, FAFSA – oh my.  Senior year is approaching here!

I found an online calculator (1, 2, 3, and 4) that estimates the expected family contribution for your child’s complete financial aid package.  Assuming BabyGirl is accepted to her school of choice with zero scholarships, my estimated family contribution for her Freshman year is $12,000.  Ouch!

We’re leaving in a few hours to head north; touring the campus of an Ivy on Monday.  From 8am to 4pm, they have a complete itinerary planned for us.  I’m really looking forward to this.

What kind of money issues are on YOUR mind?

My finances have been kind of boring lately, so I haven’t had much to say.  Here are a few financial things on my mind today:

I increased my allotments to 30% of my after tax income.  This will ensure that I meet all of my savings/investment goals for the year. My paycheck is a little smaller now so it will take some time to adjust.

Babygirl officially has her own checking account that she is responsible for managing – without restriction. No more prepaid Visa with parental controls. She’s all grow-ed up now!

My tenant’s lease is up in September and I sent them the renewal notice this month.  If they don’t renew their lease, I’m hiring an agent to put the house on the market.  I don’t want it anymore and I’ll sell it at a loss if necessary.

See, that is all.

Anything financial related weighing on your mind today?