Fabulous Financials

This past weekend, a friend and I were talking about things we need want to buy in the near future.  Eventually, it turned into discussion about spending money on things versus experiences.  This is a topic that has been addressed numerous times throughout the personal finance community, so I won’t beat a dead horse.  But it did make me think about the things I own that bring me just as much long term pleasure as my most memorable experiences.

• My Class Ring from Undergrad: It is a white gold ring with my birthstone in the center and two diamonds on each side.  This is the first piece of jewelry I’ve ever owned with real diamonds and I bought it with my own money.  Although I rarely wear it anymore, to me, this ring represents a major turning point in my life.

• My Car – 2004 Honda Accord: I’ve owned several cars in my life, probably 5 or 6.  But this is the first car I ever purchased brand new, picked out the exact specs, negotiated the sales price, maintained according to factory standards, and paid in full.  To me, this car represents my breakthrough into adulthood and financial responsibility.

• My Dooney & Bourke Handbag: This is a designer purse that was a birthday gift from my best girlfriends.  I rarely carry this bag anymore, but I remember the day they surprised me with it.  They came over to my house with a pizza and drinks as if it was a casual visit for lunch.  When I opened the bag, I screamed “OMG, OMG, OMG!!” and jumped all around my kitchen like I was filled with the holy ghost. LOL  We still crack up about it to this day.

• My Daughter’s Bedroom Set: It is a white sleigh bed with a matching night stand and chest of drawers.  It was the first piece of furniture I bought after I purchased our first home and it is probably the best piece of furniture in my entire home.  Although her bedroom is unoccupied at the moment, I expect this furniture to remain in our family for many years.

Of all the “things” I own, these 4 make me smile when I think about them.  They have the same lasting effect as a memory from an experience – perhaps because all of them are associated with a memorable experience.  Regardless of the memory, I’d be really sad if either of them was lost, stolen, or damaged.  So this tells me, it’s ok to buy material things.  Just make sure your hard earned money is spent on things you love that will pay for itself for years to come.

I finally registered my car and got a VA driver license.  OMG, my DMV experience was pure foolishness! I’m convinced, the purpose of government red tape is simply to keep people employed.  In total, it cost me an entire Friday, $200, and a headache. *wooosah*

I withdrew money from BG’s college savings account to pay the difference for her tuition. I was shocked when I received the check. I’ve never held that much money in my hand at once.

I received my security deposit from my old apartment, but they withheld $70 for “Accelerated Rent.” 0_o I called them up to find out exactly what that was for and…get this…they didn’t know either.  I guess they assumed I was Ms. Boo Boo The Fool and would let it slide.  Hmph! As you probably guessed, I will receive another refund check in a few days.  I work way too hard to give my money away.

I checked my Equifax credit report yesterday using slickdeals promotion code for a free 3-in-1 credit report + score.  I finally broke 800! Woot!  Now let’s see if I can find a lender to refinance this upside down house.

My cell phone bill was $216. When I saw it, I damn near hacked up a lung! I can’t even blame BG this time. *sigh* Can you say international calls and roaming charges???????????  I’m gonna call T-Mobile anyway to see what they can do to reduce it.

I’m upgrading our family plan to unlimited talk, text, and internet. BG will have no excuse not to contact me while she’s away. :-)

I spent $310 on groceries in July. How is that possible when I was on vacation for a week and dined out for a week during the move? Hmm…this is one expense I look forward to reducing when BG leaves.

I only have 4 bills each month – rent, electric, internet, and cell phone.  All of them combined are still hundreds less than what I previously paid in rent alone.  It’s time to reallocate my funds again.

I save and invest $1,000 every month, excluding retirement.  I can probably kick that up to $1,500 with enough to pay bills and play. Maybe even send BG a little change if I’m feeling generous.

On second thought, I should probably save more than $1,500.  I’ve got a few things I need to prepare for next year. Big thangs popping in 2011!

Ok, so I’ll go back to the planned paycheck to paycheck system.  Increase my allotments so that I have just enough to pay all of my bills from one paycheck.  The other paycheck will cover variable expenses and play time. During a 3 paycheck month (2 per year), the extra will be applied to non-recurring expenses. Yep, that sounds like a plan.

Well, I think that’s all for now.

Time to put my thoughts into action so I can get my finances back on track.

If you missed it, here’s a summary of our Paris vacation.  The summary outlines the transition of my dream vacation from a simple idea to planning and living a dream come true.  Now here is the damage and after effects. LOL

When I booked our trip, I shared that I paid approximately $4,550, which included the following:

• Round trip airfare x 2
• Round trip transportation from/to airport x 2
• 4 star hotel in Paris for 7 nights
• Bus tour, river Seine cruise, tour and lunch at Eiffel Tower x 2
• 2 days hop off/hop on sightseeing bus x 2
• 2 days Paris pass to all museums and monuments x 2
• 2 days unlimited metro and bus pass x 2
• 1 day trip to London with transportation and a full day itinerary x 2

During the planning and prep stage, I spent approximately $125.  I bought an international adapter, a book on France, and a few clothes from Ross.

Prior to leaving the U.S., I withdrew $500 from the ATM and exchanged it for 380 euros at the airport.  This amount included foreign exchange fees.  In the future, I will do this at my own bank to avoid the extra fees.

The day we traveled to London (mid-way vacation), I withdrew 160 euros from the ATM with my debit card.  Shortly after, my bank (USAA) sent a text that read $200.90 US based on the exchange rate for the day.  When the transaction posted to my checking account, it read $202.51 US, including the exchange rate and my bank’s 1% foreign exchange fee.

When we arrived in London, I exchanged a few euros for pounds.  I don’t remember the exact euro-to-pound exchange rate, but let’s just say the dollar is weaker than the euro and the euro is weaker than the pound.  Basically, our dollar is worth diddly-squat around the world! LOL  Needless to say, I spent all of my pounds in one day.

Back in Paris, the euros I had on hand were more than enough for the rest of our trip.  All of our sightseeing expenses were covered, so we only had to spend money on food, drinks, tips, and shopping.  Which reminds me…I used a credit card (USAA) to pay for my shoes that were on sale for 64 euros (reg. 129 euro).  When the transaction posted to my credit card, it read $82.02 US, including the exchange rate and my bank’s 1% foreign exchange fee.  The 1% fee for this transaction will be offset by the 1% cash back I earn with this card.

At the end of our vacation, almost all of our foreign currency was gone.  I came home with approximately 8 euros (paper and coins) and 5 pounds (all coins) as souvenirs.

In total, I spent approximately $5,500 for 2 people to enjoy a 7 day vacation in Paris and London.

• Reservations and Activities: $4,550
• Trip Prep: $125
• Cash Conversion: $700
• Shopping Transaction Conversion: $81

Based on my planned budget, this total amount was as expected.  Besides, in celebration of my daughter’s 18^th birthday, high school graduation, and our first international trip as mother and daughter, it was worth every dime. :-)

I know I haven’t been blogging about personal finance lately (I’m sorry!), but I did write a guest post for a fellow blogger who is reading The Power to Prosper by Michelle Singletary and doing a 21 day financial fast.  I didn’t participate in the fast because I knew that I’d be bleeding money until the end of summer, so she asked me to write a guest post on the final chapter of the book – Financial Freedom. Go check it out!

One of my blogger/twitter friends is planning to read the book The Power to Prosper by Michelle Singletary, which requires a 21 day financial fast, to help improve her finances.  I considered joining her, but I punked out when I realized that I couldn’t commit to zero non-essential spending because now is a terrible time for me to go on a financial fast.  Over the next few months, my life will be thrown into a financial tailspin due to the following: 1) my weight loss, 2) BabyGirl’s prom, 3) BabyGirl’s graduation, 4) our move to a cheaper apartment, 5) our vacation to Paris/London, and finally 6) BabyGirl’s departure for college. 

I was just sitting here thinking about all the miscellaneous expenses I will incur as a result of these monumental events and other things I need/want as well:

Me

• entire wardrobe (down 30 lbs, only 27 lbs from my happy weight)
• wii fit plus and balance board
• polar heart rate monitor
• glasses
• 1/4 carat diamond earrings
• clear bubble umbrella
• Girlfriends or Sex in the City complete DVD set

BabyGirl

• shoes and accessories for prom
• dress for graduation
• class ring, yearbook, and other senior year memorabilia
• colorful set of luggage on wheels
• mini fridge, microwave, printer, and TV
• dorm necessities

Home

• professional packers/movers
• bedroom set (after move)
• blender/juicer

Vacation

• portable DVD player (?)
• adapter for outlets
• something to carry passport, money, etc.
• pocket-size translator book
• lots of stuff I can’t think of right now

I have an estimated budget for most of these things but not all of them.  When I look at the number I have so far, it’s enough to let me know that I will be bleeding money for the next few months. Ouch!  *passing the collection plate*