Reached a Goal!

It's 6:30 this morning and I seem to have gotten up on the right side of the bed! I have had whopping cough for the past week and its been killing me. It's still here today but not as extreme. The major project I had been working is on is pretty much complete as of 10:00pm last night.

I also saved my goal of $500 for Christmas presents. Whooohooo!!! This means will not being using the credit cards this Christmas!

I am learning to celebrate the many small blessing that life offers, they deserve just as much attention as the large blessings.

until next time, think prosperous thoughts

YBP

Bills and the significant other

Do you and your SO combine bills, equally divide bills, or have a joint checking account that you use as a "household account"?

Boobee and I do have a joint checking account however, we only used it to pay the mortgage.

That is all going to change August 1. All our bills are are going to be paid from the household account.

Right now its nothing like that. I put my part of the mortgage in the joint account and then pay the gas bill, water bill, car payment and car insurance out of my account. Boobee puts his part of the mortgage in the joint account and then pays the electric, cable/internet and cell phone bill out of his checking account.... when he remembers.

We sat down and calculated what are monthly expenses were and including our parts of the mortgage it comes to $1760 a month.

We have decided that we are going to split that amount in two for a total of $880 a month. Every two weeks we are going to put $440 in the "household" account and that should cover all our expenses for the month.

We are also going to add $2000 into the household savings account which will be a short term emergency fund for any and all household issues. We both agreed that this would be a great way to manage all our monthly expenses and make sure all the bills are paid on time ( and for me that means as soon as the bill comes in)

I can't wait until August.

If anyone can tell me how to post my budget spreadsheet onto blogger I would greatly appreciate it.


YBP

A funny thing happened

A few days ago I got a letter from my mortgage company that my escrow payment had gone down by $6.00 and now my new monthly payment was going to be $1298.

If anyone has the reason why it did this please let me know!! I am assuming it has something to do with PMI insurance going down, but that is just a guess.

I was so excited about a decrease of $6.00 that I didn't look at the rest of the letter.

Come to find out a surplus check for $382.02 was attached to letter.

I only found that out after I was about rip the letter up and throw it in the garbage. Thankfully I didn't and now the emergency fund gets a nice little bump in it.

until next time, think prosperous thoughts

YBP

Car Insurance update

Yesterday I was wondering if I should pay my car insurance premium off every six months when I renew or if I should continue my monthly payments with the $4.00 surcharge.

Well I decided that the monthly payment thing just does not work for me. I told the lovely lady at Geico that I would like them to charge my full premium amount to my credit card ( remember it's only $348.50) on the date that it is due (April 2o, 2010). I will then pay it off when the bill comes.

Some I readers gave me the idea of putting a little bit more money in my Car Fund so that in October when its time for me to renew I will have the money in the account and pay for it in full instead of putting it on a credit card.

So this is what I did...

I changed the biweekly automatic savings to my car fund in my ING Direct savings account to $50.00. $100.00 a month will go into the car fund. When it is time for me to pay the full premium on October 20 I will have enough to simply transfer the money to my ING Direct checking and either mail them a check or use my check card to pay the balance in full.

Also, whenever my car needs an oil change or new breaks or some other minor repair I will have money in the car fund to pay for it.

Thanks for all the comments!!! I owe this to you!

until next time, think prosperous thoughts

YBP

I'm back at $5000

well not actually, but I have $160.00 being transferred from my checking to my TD Ameritrade Account on Monday that will bring my savings up to $5000. Yeah!!! For me!

I also actually got a refund from my school that I am transferring to my Emergency Fund next week and with my automatic Transfer on March 5, will bring my emergency fund up to $7000.

I also got a great idea from a fab blogger that I have been reading lately, Chitown over at Windy City Blues. After I reach my $10000 goal which will probably be before my wedding, I am going to start a small joint emergency fund with my fiance of $2500, in a money market account at our local credit union.

Essentially that will grow to become our emergency fund...and my savings will just be extra savings.

This brings me to a question that I have been pondering.

Should married couples have separate checking or savings, joint checking and savings, or a combination of both?

until next time, think prosperous thoughts

YBP

Cash sources beyond an Emergency Fund

Moneymonk had a great on cash sources besides an emergency fund. Her second source for money was family and friends, must be nice to know that you have family and friends you can depend on. I would never be able to ask my family and friends for money in an emergency which is why I feel I need to have the biggest emergency fund possible, trying to get it to around 30,000 by December 31, 2010.

There was a time when I could depend on friends, a couple of close friends of mine gave me $2000 during college to make sure that I could register for classes, and my dad took out a plus loan for $10,000. To this day I still regret having to ask him to do this.

My goal is to save as much as possible and increase my income as much as possible so that I will never need cash sources beyond my emergency fund. As it stands right now these are my cash sources in case of an emergency.

1.Emergency Fund
2. Credit Cards
3. 401k

What are your cash sources in an emergency.

Still have $1200 in my checking account!

Even though I have not budgeted my money this month, I still have over $1200 in my checking account... WTF!  I paid all my bills, went grocery shopping, put gas in the car, etc. This doesn't count the found money I received last week, that money went right into my savings account.  I really don't have any other expenses coming up.  This could probably last until next Thursday when I get paid again, and then I am going to put it right into my savings account...getting closer and closer to $20,000!!! Go Me!!

until next time, think prosperous thoughts

YBP

A Business Proposition???

All is well on the financial front, however a teacher friend came to me with a business proposition that I have mulling over for the best couple of days. I think it is an excellent idea but the downside is I will lose a big chunk of my E fund.

So my friend would like for me to partner with her and open an early childcare/daycare center. My initial investment would be $10,000 for 35% ownership. We would also have to split the title of program director and work at the center 2-3 days a week from 3pm-6pm. The business plan seems solid, location is already zoned, and she is thinking about opening sometime around junish.

My concern is putting down $10,000 for only 35% ownership. Does that not seem right to you? If I am putting down $10,000 I want at least 40% ownership. Perhaps we could negotiate something like me investing $7000 for 30% ownership.

My second concern is my money being tied up for over six months with no return. The industry average for a day care center to reach profitability is 12 months (if we are lucky 7 months), however, in Philadelphia there is a waiting list at most day care centers.

This is a big risk...but this risk can change my life. From the projected income/expense it looks like I could bring in about $14000 gross my first year and then more and more the second and third year. There is the opportunity by year five for the business to grow to 2 more new center and etc. By then it should be all about the passive income!

Any advice or ideas??

until next time, think prosperous thoughts

YBP

I've been a bad girl and other news!!!

Its only January 11 and I have already gone over my budget for the miscellaneous category. I decided that this year I was going to become more healthy and start eating and exercising more. I have been on the Master Cleanse for the past five days and I am feeling great, but I wanted to make some lifestyle changes for after I get off the cleanse. I began researching super foods and decided to buy some... in fact I spent 31.00 buying Gogi Berries and Acai supplements from Amazon.com. At least my order qualified for free shipping so that is one thing I didn't have to pay for!

Good News:
I will be receiving a refund check from grad school for over $3000 sometime this month or early next month. That is going right into my emergency fund! I may need to use some of it to pay for a summer class but for now I am keeping it stashed away! I don't think I will have a problem reaching my goal of $20,000 for the year. With this economy I believe I definitely need it.

School News:
The new semester starts this week. I really can't wait. I am taking 3 classes and one of them is an online class. I thought online classes were easy but from looking at the syllabus I was totally wrong.

One thing I was not wrong about was the price of books. 3 classes and four books... total $286.00, and that's buying used! I need to hurry up and write me one!

After this semester I have two more classes to take during the summer ( hopefully summer session 1) and then I am done with this degree. Essentially, around the same time I am done teaching for the year will also be the same time I am done with my Masters. Now that is something to look forward to!


Until next time, think prosperous thoughts

YBP

I Reached my monthly saving goal

I wanted to save $1000.00 this month in order to bring my emergency fund saving to $4000.00. I went above that. My TD Ameritrade account balance is now $4023.10. And I still get two more paychecks this month. I think I maybe able to set a super goal of getting it to $5000.00 by January 3.

In other news... I pretty much finished my shopping. I brought my brothers and my parents their gifts, I also bought my boyfriend a pair of boots and just have a few other small things to get and then I'm finished. I am glad I had a little bit of money saved specifically for Christmas because I did not have to put everything on a credit or card or mess my savings goal.

I'm about to leave for work so I will post more later.

until next time, think prosperous thoughts

YBP

Building up the E Fund

I put my whole check in savings... all $355.00 of it. The total now stands at $3456.00. I have never been able to do that before... put my whole part time check in savings. Perhaps I am maturing a bit, I seem understand the difference between a need and a want... or maybe its the economy scaring me into savings... perhaps it is a little bit of both.

In any case turning 25 has changed me in so many ways.


oh.. and the semester is over... THANK YOU JESUS!!!!


until next time, think prosperous thoughts

YBP

Emergencyopoly... I'm Playing

Wellheeled has a game she is playing in the month of November called Emergencyopoly, and I am definitely playing it. You should join in too!

The rules of the game are very simple:

• For one month live like you just lost your main source of income
• Approximate how much money you would have to spend due to job loss (insurance costs, job search costs)
• Focus on only your core expenses ( rent, food, car payment)
• Take the money that you would have to spend if you didn't have a job and use that to help build up your emergency fund

I am so playing it... maybe I can get my E fund up to $4000.00 by the end of November. I will try to have a budget posted by the Friday morning.

until next time, think prosperous thoughts

YBP

Paying off Loans or Increasing Savings

Help me out. Its October 14th and I still have not decided what I am going to do with my 3rd paycheck of the month. I could use it to finishing paying off the balance of my smallest student loan ($1835.88) or I could use it to increase my emergency fund which as of right now has a balance of $2542.11. Which is more important??

until next time, think prosperous thoughts

YBP

Should I transfer my emergency fund to a new bank?

I recently looked at the interest rate on the money market account that I use as an emergency fund and was surprised that it was only 2.0%. As I should have to roughly $5000.00 in this account by December and $10,000 by June I would like a better rate on my money, thus I am considering switching to a different bank. I know my main objective for this account is not getting the highest interest rate, but rather having liquidity in case of an emergency. I know there are banks out there that do have higher interest rates, so dear readers, what banks do you recommend for emergency funds/money market accounts?

until next time, think prosperous thoughts

YBP

Renting out the spare bedroom Part II

so it looks like I may have a renter for the spare bedroom in my house... and the person is.... my boss.

Well, he is actually my boss from my second job at the hotel. I love him to death. For the past year he has been renting an apartment in a area called Rittenhouse Square... all I can say is that it is very expensive. His lease is up in November and today asked me if I would consider renting it to him. I said I certainly would!

Im going to keep my fingers crossed. That $600.00 a month would be a blessing!

until next time, think prosperous thoughts

YBP

Debt Snowball update

Today I sent a payment of $1000.00 to my smallest student loan. The balance of this loan was $2725.98, but now it is $1725.98. I may be able to have this paid off this month, if I use my third large paycheck on the 31st. Although my debt snowball is a priority in my life, my main goal is to make sure I have $10,000 in my Emergency Savings by the end of the school/work year ( which is June 23, 2009. If you look to the right you can see I have a little ticker chart with how much I have in it right now ($2541.00) On the 31st I could probably add another $1200.00 to it bringing the total to $3741.00, less than $300.00 shy of $4000.00. I will then have the month of November and December to save up an extra $1300.00 and have $5000.00 in there by the end of the year.

Do you think my goal is attainable? What do you think I should do with my third paycheck, put it directly into savings or use it to pay off debt?

until next time, think prosperous thoughts

YBP

How Many Accounts do you have and Why?

How many accounts do you have and what are they for?

Me, I have 9... that actually seems like a lot.

They are:

1. Bank of America Checking for direct deposit and paying bills
2. Bank of America Savings I haven't used this but I think I may use this as a fund for things I have to do with my car. Putting money in there for new tires I want to buy, tune up, breaks, or any other major repairs
3. TD Ameritrade Account-Emergency Fund
4. ING Direct Checking- only used for bills having to do with the tenants or the property or when I transfer money out of my second ING savings to buy something
5. ING Direct Savings (#1) will hold the last month's rent and security for the tenants as well as 100.00 a month for vacancy/repairs
6 ING Direct Savings (#2) money in that account will be used for Christmas, vacations, etc. (right now I am debating on whether to save money for the second property I plan on purchasing in that account or just open another subaccount through ING Direct.
7. T.Rowe Price- Roth IRA account. I will probably open future mutual fund investment accounts at T. Rowe Price. I like their customer service.
8. TIAA-Cref - school district 403B
9. Part time job 401k

or wait... there's 10. I also have my school district pension fund account.

This list will eventually grow... as I acquire more properties, get married, start my own business, and have children...

but right now... these are necessities for me!

until next time, think prosperous thoughts

YBP