We are less than a week away from our big family vacation. Hooray! Most of our planning is done, although we still have a few items to take care of before we depart.
As we head towards our departure date, I need to do laundry and pack. I also have one more Amazon Prime order to execute on. But as for our travel plan, the airline tickets are paid for, the hotels are reserved and the rental car is booked.
We vacation on a budget, but we don't scrimp. What does that mean you ask? Well it means that we always have a short term savings account earmarked for travel/vacation. We also have an automatic deposit set up, so $200 per pay period goes into our vacation/travel fund. That normally means that we have more than enough in our travel/savings account to pay cash for airline tickets. After our airline tickets are booked and our vacation is planned I often up extra savings into our travel/vacation fund to make sure we have more than enough cash on hand for our hotel, rental car and spending. This time around we didn't need to since our savings account was well funded.
I don't scrimp when I go on vacation, so I normally budget at least $100 a day for food which seems like a lot, but if you are eating out or stopping at a local brewery for a couple of $10 beers it works out to the right amount for us. I also think about and plan for other spending, we'll be stopping at two national parks, so I'm accounting for entry fees, gas, and misc. spending on a t-shirt here or there or a special souvenir. Mr. Sam likes to pick up t-shirts on his travel and he wears them a lot. I like a more upscale souvenir, a piece of art from a local or maybe a handcrafted piece of jewelry. I am picky so that means I often come home with nothing and that is ok. Baby Sam gets to pick out something fun for herself that is inexpensive and I will likely pick out something for her along the way. I normally set aside another $100 in cash for misc. spending.
All of this preplanning means that when we get home from vacation we only bring memories, a rock or two for our collection and no debt.
Showing posts with label Debt Plan. Show all posts
Showing posts with label Debt Plan. Show all posts
Monday, July 4, 2016
Monday, May 30, 2016
Amazon Mom Update
Almost a year ago, I signed up for Amazon Mom/Prime program.
What I have learned, and it is also what I expected, is that having Amazon Prime makes it super easy to buy stuff from Amazon. "Free" two day delivery on lots of items means that I often go to Amazon for my buying needs. Does that mean I'm spending more in general? Hard to know. I could be making the same purchases, but simply making them at Amazon instead of other retailers. Or I could be making more purchases since Amazon makes it so easy. I suspect it is both.
Today, I was working on my Amazon Prime subscription box. The subscription service allows one to sign up for purchases that are regularly occurring. For us, that includes diapers, wipes, diaper genie liners, baby sunscreen, baby snacks, etc. If you sign up for five items a month that ups your savings to 15% off on everything and 20% off on diapers.
So each month, we get diapers and wipes. Normally we get some puff snacks for Baby Sam. That normally leaves two items left. We have storage space, so I'm genarlly looking for something we go through a lot of and is a dry good or cleaning supply.
As working parents, coffee is a big thing for us, so today I decided to look at coffee options. On Amazon, even narrowing by Prime, that brings up thousands of choices. Select ground and hazelnut and I'm down to hundreds. Sort by price and I come up with some brands that Mr. Sam buys regularly. Ok, price per bag, price per ounce. No idea if this is a good price. Am I falling into the trap of buying something to get a discount that isn't a good deal? Cross check to the Wal-mart site and yes this is a good price.
Do the same thing for Mr. Clean Magic Eraser and I'm good to go for check out.
So bottom line, discounts can work but you have to be careful about making a poor buying choice for purposes of getting a discount.
Also, being able to get items I need delivered makes my life so much easier. Between, work, baby, family life, maintaining sanity is important.
What I have learned, and it is also what I expected, is that having Amazon Prime makes it super easy to buy stuff from Amazon. "Free" two day delivery on lots of items means that I often go to Amazon for my buying needs. Does that mean I'm spending more in general? Hard to know. I could be making the same purchases, but simply making them at Amazon instead of other retailers. Or I could be making more purchases since Amazon makes it so easy. I suspect it is both.
Today, I was working on my Amazon Prime subscription box. The subscription service allows one to sign up for purchases that are regularly occurring. For us, that includes diapers, wipes, diaper genie liners, baby sunscreen, baby snacks, etc. If you sign up for five items a month that ups your savings to 15% off on everything and 20% off on diapers.
So each month, we get diapers and wipes. Normally we get some puff snacks for Baby Sam. That normally leaves two items left. We have storage space, so I'm genarlly looking for something we go through a lot of and is a dry good or cleaning supply.
As working parents, coffee is a big thing for us, so today I decided to look at coffee options. On Amazon, even narrowing by Prime, that brings up thousands of choices. Select ground and hazelnut and I'm down to hundreds. Sort by price and I come up with some brands that Mr. Sam buys regularly. Ok, price per bag, price per ounce. No idea if this is a good price. Am I falling into the trap of buying something to get a discount that isn't a good deal? Cross check to the Wal-mart site and yes this is a good price.
Do the same thing for Mr. Clean Magic Eraser and I'm good to go for check out.
So bottom line, discounts can work but you have to be careful about making a poor buying choice for purposes of getting a discount.
Also, being able to get items I need delivered makes my life so much easier. Between, work, baby, family life, maintaining sanity is important.
Thursday, May 26, 2016
Tuesday, May 17, 2016
Real Estate Update
Just did an update on our networth numbers. Our three investment property mortgages are each, now, under $100,000 in debt.
The current mortgage balance numbers are as follows:
$98,207
$85,483
$74,520.
We also are about to get under $200,000 on our primary home mortgage, right now the balance is $201,583. Next month's mortgage payment should get the balance below $200,000. This makes me happy especially in light of my recent house envy.
I seem to respond more positively to reducing our debt than I do to increasing our savings.
The current mortgage balance numbers are as follows:
$98,207
$85,483
$74,520.
We also are about to get under $200,000 on our primary home mortgage, right now the balance is $201,583. Next month's mortgage payment should get the balance below $200,000. This makes me happy especially in light of my recent house envy.
I seem to respond more positively to reducing our debt than I do to increasing our savings.
Friday, April 22, 2016
Keeping Up With the Joneses - Part I
So, for the past few years, probably five or so, more and more of my friends and peers, and even people who report up to me at work (so, I'd consider them non-peers) have been buying homes at purchase price points ranging from $700,000 to a million.
I find this phenomenon strange, but also incredibly alluring.
Let's start with an analysis of these folks. I will start with the ones who started this trend, and I do believe there is a somewhat contagious trend among friends that equates to keeping up with the Joneses. The ones who started the trend, in my humble opinion, likely made smarter choices.
1. It started with my friend Mary, all names changed to protect the innocent, and her husband George. Back in 2011, they actually got a great deal and paid mid $500s for a home that is now likely worth close to $800,000. They bought a 5000 square foot McMansion in a better school district, they have a small child, with 5 bedrooms, 4 baths in a new development. Their family consists of 3 people and they do not plan to have any more children so this is a house bigger than they need. Their real estate taxes are more than $8000. They took out a $400,000 mortgage. Five years later they are putting in a pool. The house they sold they had owned since 2002 and they made about $50,000 profit when they sold it. They were buying in a buyers market due to the 2008 real estate crash which means they were also selling in a buyers market.
Mary is in the same profession as I am, I assume she makes similar money to me. Her husband is in law enforcement. While he makes less money, he has a great pension that will be coming to him (and soon) such that their retirement savings is less crucial. I have one other friend who will have a federal pension, but she cannot collect said pension until closer to traditional retirement age. George will be able to start collecting his pension in less than 10 years and his pension is for life. As a result, they don't have to save as much for retirement.
2. Jennifer and Alan were next. They are a dual income, professional, couple. Both are in the same profession I am in. They have three kids.
In 2012 they bought a 4 bedroom, 3.5 bath, 5000 square foot home. It also has a 2000 square foot out building (with air conditioning) and a pool. They bought the home for $775,000 (the prior owner had bought it for $800,000 so, again, it was likely a good buy) and it is likely worth close to a million now. Taxes are $14,000 a year. They took on a $620,000 mortgage. Later they took on a $35,000 home equity loan.
They held onto their prior house for a couple of years, while the Florida real estate market improved (likely a smart move), and they later sold it in 2015 for a $265,000 profit. I don't believe they took that profit and reduced or refinanced the mortgage on their current home, rather before they sold their prior home they put it into a trust and I assume the profits also went into that trust.
They have engaged in a variety of real estate and trust maneuvers in the last few years. This is probably because Alan also bought an office building and they are creating protection for their other assets.
Does it sound like I'm stalking my friends' personal business?? Well I guess I am. All of this information, at least in Florida, is public record and readily accessible on line. I also am learning from what they are doing, and that is both positive and negative (more on that later).
I find this phenomenon strange, but also incredibly alluring.
Let's start with an analysis of these folks. I will start with the ones who started this trend, and I do believe there is a somewhat contagious trend among friends that equates to keeping up with the Joneses. The ones who started the trend, in my humble opinion, likely made smarter choices.
1. It started with my friend Mary, all names changed to protect the innocent, and her husband George. Back in 2011, they actually got a great deal and paid mid $500s for a home that is now likely worth close to $800,000. They bought a 5000 square foot McMansion in a better school district, they have a small child, with 5 bedrooms, 4 baths in a new development. Their family consists of 3 people and they do not plan to have any more children so this is a house bigger than they need. Their real estate taxes are more than $8000. They took out a $400,000 mortgage. Five years later they are putting in a pool. The house they sold they had owned since 2002 and they made about $50,000 profit when they sold it. They were buying in a buyers market due to the 2008 real estate crash which means they were also selling in a buyers market.
Mary is in the same profession as I am, I assume she makes similar money to me. Her husband is in law enforcement. While he makes less money, he has a great pension that will be coming to him (and soon) such that their retirement savings is less crucial. I have one other friend who will have a federal pension, but she cannot collect said pension until closer to traditional retirement age. George will be able to start collecting his pension in less than 10 years and his pension is for life. As a result, they don't have to save as much for retirement.
2. Jennifer and Alan were next. They are a dual income, professional, couple. Both are in the same profession I am in. They have three kids.
In 2012 they bought a 4 bedroom, 3.5 bath, 5000 square foot home. It also has a 2000 square foot out building (with air conditioning) and a pool. They bought the home for $775,000 (the prior owner had bought it for $800,000 so, again, it was likely a good buy) and it is likely worth close to a million now. Taxes are $14,000 a year. They took on a $620,000 mortgage. Later they took on a $35,000 home equity loan.
They held onto their prior house for a couple of years, while the Florida real estate market improved (likely a smart move), and they later sold it in 2015 for a $265,000 profit. I don't believe they took that profit and reduced or refinanced the mortgage on their current home, rather before they sold their prior home they put it into a trust and I assume the profits also went into that trust.
They have engaged in a variety of real estate and trust maneuvers in the last few years. This is probably because Alan also bought an office building and they are creating protection for their other assets.
Does it sound like I'm stalking my friends' personal business?? Well I guess I am. All of this information, at least in Florida, is public record and readily accessible on line. I also am learning from what they are doing, and that is both positive and negative (more on that later).
Friday, January 22, 2016
Focusing on Debt
This was my December update on debt:
Of course, we've added to our debt by buying me a nused car. But, I'm ignoring that for right now.
I've been chipping away at our credit card debt. We killed the 0% credit card debt that we took out for tile in one of our rental homes. Mr. Sam also cancelled that card/account. As for our revolving credit card (Chase) that has been hanging around since Baby Sam arrived, it is now down to $3809. I'm utilizing Dave Ramsey tricks by throwing a $100 at it here and there, and sending payments from various checking accounts on the same day. I expect that Chase will be killed off by mid-March (hoping for end of February).
Mr. Sam's truck is down to $2000 and we have 4 payments left. I don't plan to pay ahead as we have a 0% situation. So, by May the truck will be paid in full.
Once the Chase is killed, we really need to ramp up 2015 IRAs savings since the deadline to fund is 4/15/16. At present we have $2500 in our 2015 IRA savings. That means we need to find $9000 before 4/15/16. Our available savings is down because of my nused car purchase. We do have $4200 in our vacation/travel fund, which means I could likely raid it for a couple of thousand. And I could probably take $1,000 from savings. That would mean we need to find $5,500 from other sources in about a month or month and a half.
Debt killing goals:
(1) Pay off lingering credit card debt in the amount of $6500.
(2) Pay off Mr. Sam's new car, remaining debt $2500.
Of course, we've added to our debt by buying me a nused car. But, I'm ignoring that for right now.
I've been chipping away at our credit card debt. We killed the 0% credit card debt that we took out for tile in one of our rental homes. Mr. Sam also cancelled that card/account. As for our revolving credit card (Chase) that has been hanging around since Baby Sam arrived, it is now down to $3809. I'm utilizing Dave Ramsey tricks by throwing a $100 at it here and there, and sending payments from various checking accounts on the same day. I expect that Chase will be killed off by mid-March (hoping for end of February).
Mr. Sam's truck is down to $2000 and we have 4 payments left. I don't plan to pay ahead as we have a 0% situation. So, by May the truck will be paid in full.
Once the Chase is killed, we really need to ramp up 2015 IRAs savings since the deadline to fund is 4/15/16. At present we have $2500 in our 2015 IRA savings. That means we need to find $9000 before 4/15/16. Our available savings is down because of my nused car purchase. We do have $4200 in our vacation/travel fund, which means I could likely raid it for a couple of thousand. And I could probably take $1,000 from savings. That would mean we need to find $5,500 from other sources in about a month or month and a half.
Friday, January 8, 2016
Updated 2016 Savings/Financial Goals
Still working on our goal planning, some changes since I last posted.
Definite goals:
(1) Max out 401k for each of us, the limits have not changes for 2016 so that is $18,000 for each of us for a total of $36,000. Automatic payroll debits are in place, I will just need to check them in January
(2) Finish funding our 2015 IRAs - $8900, The 2015 IRAs must be funded by 4/15/16. As such, we will have some heavy upfront savings of about $1110 per pay period between 1/1/16 and 4/15/16.
(3) Fund 2016 IRAs $11,000 for the both of us, this number also is unchanged from 2015.
(4) Baby Sam'college fund, add another $5000 this year.
Tentative goals:
(5) Add to emergency fund, reducing this annual goal to $5000 (this year we saved $10,000)
The above savings goals total $65,900. The highest savings number we have ever hit with our savings efforts is @$64,000 (back in 2013). So, this would be a stretch for us, especially with our child care expenses for Baby Sam.
I've deleted the nused car savings goal, because I went ahead and bought a nused car in December. More on that in a later post.
Debt killing goals:
(1) Pay off lingering credit card debt in the amount of $4261 (this was at $6500 in my last post, we've made progress).
(2) Pay off Mr. Sam's new car, remaining debt $2000.
Above debt totals at $6261.
Also, I'd like to reduce our total debt to under $450,000 total. At present our debt total is at $491,863 (this number went up due to the nused car) which would require killing the above credit and car debt and also killing another almost $35,602 in debt. I think that is this is may be a reachable goal since we paid off @$34,000 in debt this year.
Additional financial goals:
Roll over old 401k to my current employer 401k. This has been a previous goal, and guess what it is still an item on my to do list.
Definite goals:
(1) Max out 401k for each of us, the limits have not changes for 2016 so that is $18,000 for each of us for a total of $36,000. Automatic payroll debits are in place, I will just need to check them in January
(2) Finish funding our 2015 IRAs - $8900, The 2015 IRAs must be funded by 4/15/16. As such, we will have some heavy upfront savings of about $1110 per pay period between 1/1/16 and 4/15/16.
(3) Fund 2016 IRAs $11,000 for the both of us, this number also is unchanged from 2015.
(4) Baby Sam'college fund, add another $5000 this year.
Tentative goals:
(5) Add to emergency fund, reducing this annual goal to $5000 (this year we saved $10,000)
The above savings goals total $65,900. The highest savings number we have ever hit with our savings efforts is @$64,000 (back in 2013). So, this would be a stretch for us, especially with our child care expenses for Baby Sam.
I've deleted the nused car savings goal, because I went ahead and bought a nused car in December. More on that in a later post.
Debt killing goals:
(1) Pay off lingering credit card debt in the amount of $4261 (this was at $6500 in my last post, we've made progress).
(2) Pay off Mr. Sam's new car, remaining debt $2000.
Above debt totals at $6261.
Also, I'd like to reduce our total debt to under $450,000 total. At present our debt total is at $491,863 (this number went up due to the nused car) which would require killing the above credit and car debt and also killing another almost $35,602 in debt. I think that is this is may be a reachable goal since we paid off @$34,000 in debt this year.
Additional financial goals:
Roll over old 401k to my current employer 401k. This has been a previous goal, and guess what it is still an item on my to do list.
Thursday, December 3, 2015
2016 Savings/Financial Planning
Starting to think about 2016 savings and financial goals.
Definite goals:
(1) Max out 401k for each of us, the limits have not changes for 2016 so that is $18,000 for each of us for a total of $36,000. Automatic payroll debits are in place, I will just need to check them in January
(2) Finish funding our 2015 IRAs - $8900, The 2015 IRAs must be funded by 4/15/16. As such, we will have some heavy upfront savings of about $1110 per pay period between 1/1/16 and 4/15/16.
(3) Fund 2016 IRAs $11,000 for the both of us, this number also is unchanged from 2015.
(4) Baby Sam'college fund, add another $5000 this year.
Tentative goals:
(5) Add to emergency fund, reducing this annual goal to $5000 (this year we saved $10,000)
(6) Save for a nused car for me $10,000. My car will be 10 years old next year and its got some expensive repairs that I've been holding off on. I replaced my last car after 9 years of life so I'm thinking this car will need replacing soon.
The above savings goals total $75,900. The highest savings number we have ever hit with our savings efforts is @$64,000 (back in 2013). So, this would be a big stretch for us, especially with our child care expenses for Baby Sam.
Debt killing goals:
(1) Pay off lingering credit card debt in the amount of $6500.
(2) Pay off Mr. Sam's new car, remaining debt $2500.
Above debt totals at $9000.
Also, I'd like to reduce our total debt to under $450,000 total. At present our debt total is at $484,848 which would require killing the above credit and car debt and also killing another almost $26,000 in debt. I think that is this is a reachable goal since we paid off @$34,000 in debt this year.
Definite goals:
(1) Max out 401k for each of us, the limits have not changes for 2016 so that is $18,000 for each of us for a total of $36,000. Automatic payroll debits are in place, I will just need to check them in January
(2) Finish funding our 2015 IRAs - $8900, The 2015 IRAs must be funded by 4/15/16. As such, we will have some heavy upfront savings of about $1110 per pay period between 1/1/16 and 4/15/16.
(3) Fund 2016 IRAs $11,000 for the both of us, this number also is unchanged from 2015.
(4) Baby Sam'college fund, add another $5000 this year.
Tentative goals:
(5) Add to emergency fund, reducing this annual goal to $5000 (this year we saved $10,000)
(6) Save for a nused car for me $10,000. My car will be 10 years old next year and its got some expensive repairs that I've been holding off on. I replaced my last car after 9 years of life so I'm thinking this car will need replacing soon.
The above savings goals total $75,900. The highest savings number we have ever hit with our savings efforts is @$64,000 (back in 2013). So, this would be a big stretch for us, especially with our child care expenses for Baby Sam.
Debt killing goals:
(1) Pay off lingering credit card debt in the amount of $6500.
(2) Pay off Mr. Sam's new car, remaining debt $2500.
Above debt totals at $9000.
Also, I'd like to reduce our total debt to under $450,000 total. At present our debt total is at $484,848 which would require killing the above credit and car debt and also killing another almost $26,000 in debt. I think that is this is a reachable goal since we paid off @$34,000 in debt this year.
Tuesday, December 1, 2015
End of the Year Updates
Well it is December 1, 2015 and I still never got my 2015 savings/debt killing Excel spreadsheet chart from Mr. Sam. It has been that kind of year, new baby, maternity leave, new baby expenses, balancing work with new baby, child care expenses, etc. We also converted a rental property to a family property which brought along a ton of expenses as well.
These were my goals from May of this year, posted on one of the other personal finance sites:
(1) Max out 401ks: Goal $36,000
(2) Max out IRAs: Goal $11,000
(3) College fund for Baby Sam: Goal $5,000
(4) Add to emergency fund: Goal $10,000
(4) Pay off baby debt: Goal $0, started with $7000
(5) Pay off Mr. Sam's truck loan: Goal $0. started with $7500
(6) Save for nused car for me: Goal is $20,000. This is two year goal, so this year's goal is $10,000)
(7) Get total debt under $500,000: $519,000 was thestart of the year number, goal is $499,000, difference of $20,000
Savings goal of $72,000 and
Debt killing goal of $34,500.
So let's start with the bad news. We only put away $2100 for our 2015 IRAs, we can continue to invest for 2015 until April 15, 2016 so we have some time next year to finish this goal.
Baby debt, well it really morphed into debt, we have rental property conversion debt, some baby debt and just other cr_p debt that popped up this year since our finances were pretty crazy this year. At present, the misc. credit card debt is $6275. Can we kill it by year end? Maybe, but doubtful. But, I am working on it with renewed focus.
Nused car for me, didn't really happen at all this year, I put away $400 and that is it. I did spend some money on the car this year, about $1500 in repairs and the mechanic says I have about $4000 in repairs that could be done but were not necessary at the time. Need to work on this goal in 2016 as the time is coming, car will be 10 years old as of next year.
The good news, we are on track to max out our 401ks by the end of the year. At present we are at $33,009 and we will complete the $36,000 goal.
College fund for Baby Sam, we hit this goal as well and we have $5,781 in the 529 plan. About half of that was from us and the other half from family as we have asked for 529 contributions in lieu of gifts for birthdays, Christmas, etc.
Emergency fund, we are also on track for hitting this goal. We will have an additional $10,000 into the e/r fund by end of year. At present we have $19,215 in our e/r fund which sounds like a lot, but it really isn't when you take into account our investment properties. We have been working on rebuilding our fund after buying Mr. Sam's truck (we paid half in cash) and our IVF, pregnancy and birth expenses. I've never really figured out how much I want in the e/r fund, but I'd be more comfortable closer to $30,000. We do have $20,000 in other short term, liquid savings, for things like insurance, taxes, vacations, etc. So that money is also available if we really got in a jam.
Mr. Sam's truck, we are paying $500 a month, 0% loan and at present we have a $2500 balance. No current plan to pay ahead, but will be paid off early next year.
And as for getting our debt under $500,000, we easily hit that goal with $34,152 in debt paid off (even including the debts we added during the year). Our present debt number is $484,848.
So grand, estimated, total for 2015 savings will be: $53,881 (falling short by $18,119 of our 2015 goals).
And, grand, estimated, debt killing total for 2015 will be: $34,152 (which does not include additional debt payments that I plan to make) so we basically hit that goal.
Thoughts, how did your 2015 financial year go? What are you planning for 2016?
These were my goals from May of this year, posted on one of the other personal finance sites:
(1) Max out 401ks: Goal $36,000
(2) Max out IRAs: Goal $11,000
(3) College fund for Baby Sam: Goal $5,000
(4) Add to emergency fund: Goal $10,000
(4) Pay off baby debt: Goal $0, started with $7000
(5) Pay off Mr. Sam's truck loan: Goal $0. started with $7500
(6) Save for nused car for me: Goal is $20,000. This is two year goal, so this year's goal is $10,000)
(7) Get total debt under $500,000: $519,000 was thestart of the year number, goal is $499,000, difference of $20,000
Savings goal of $72,000 and
Debt killing goal of $34,500.
So let's start with the bad news. We only put away $2100 for our 2015 IRAs, we can continue to invest for 2015 until April 15, 2016 so we have some time next year to finish this goal.
Baby debt, well it really morphed into debt, we have rental property conversion debt, some baby debt and just other cr_p debt that popped up this year since our finances were pretty crazy this year. At present, the misc. credit card debt is $6275. Can we kill it by year end? Maybe, but doubtful. But, I am working on it with renewed focus.
Nused car for me, didn't really happen at all this year, I put away $400 and that is it. I did spend some money on the car this year, about $1500 in repairs and the mechanic says I have about $4000 in repairs that could be done but were not necessary at the time. Need to work on this goal in 2016 as the time is coming, car will be 10 years old as of next year.
The good news, we are on track to max out our 401ks by the end of the year. At present we are at $33,009 and we will complete the $36,000 goal.
College fund for Baby Sam, we hit this goal as well and we have $5,781 in the 529 plan. About half of that was from us and the other half from family as we have asked for 529 contributions in lieu of gifts for birthdays, Christmas, etc.
Emergency fund, we are also on track for hitting this goal. We will have an additional $10,000 into the e/r fund by end of year. At present we have $19,215 in our e/r fund which sounds like a lot, but it really isn't when you take into account our investment properties. We have been working on rebuilding our fund after buying Mr. Sam's truck (we paid half in cash) and our IVF, pregnancy and birth expenses. I've never really figured out how much I want in the e/r fund, but I'd be more comfortable closer to $30,000. We do have $20,000 in other short term, liquid savings, for things like insurance, taxes, vacations, etc. So that money is also available if we really got in a jam.
Mr. Sam's truck, we are paying $500 a month, 0% loan and at present we have a $2500 balance. No current plan to pay ahead, but will be paid off early next year.
And as for getting our debt under $500,000, we easily hit that goal with $34,152 in debt paid off (even including the debts we added during the year). Our present debt number is $484,848.
So grand, estimated, total for 2015 savings will be: $53,881 (falling short by $18,119 of our 2015 goals).
And, grand, estimated, debt killing total for 2015 will be: $34,152 (which does not include additional debt payments that I plan to make) so we basically hit that goal.
Thoughts, how did your 2015 financial year go? What are you planning for 2016?
Tuesday, October 27, 2015
Updates on Debt
I've recently, as of today, updated our networth debt numbers. One of our goals for 2015 was to get our total debt load under $500,000 and I'm pleased to report that our debt is now at $489,000. Since, January 2007, our debt load has gone from $735,054 down to $489,000. That means, on average we have killed about $30,000 in debt per year since 2007.
On our primary home, purchased in 2004, we have paid off $105,546 in principal. Since we refinanced our mortgage a couple years ago to 2.75% our payments have accelerated. We also refinanced from a 25 year loan to a 15 year loan and cut off 7 years from our overall term. On our three investment property mortgages, as of next month, all three mortgages should be below $100,000.
As for our other debt, I've struggled with credit card debt, pay it down, run it up, pay it down, etc. I really need to kill it once and for all as its now been hanging around since the baby arrived. We also have a new debt that is not yet listed, 0% financing on floor tile that we bought for one of our investment properties. That debt is a couple of thousand dollars.
As for Mr. Sam's new truck, we continue to pay down his truck debt (we paid for his new truck half in cash and half in 0% financing) at $500 a month, so that debt will be gone in seven months. I really need to be saving for a nused car for me, as my car has been acting up. Recently it was out of commission for a few weeks with an electrical problem but the fix ended up only costing $250. There are several other more expensive things wrong with the car, but the dealer says none are pressing to fix as of now. The dealer gave me a print out of things to fix that would likely cost $4000 which is more than the car is worth. It was kinda funny as I had started to research my next car. Since Baby Sam arrived I, of course, want a family car. But, I'm better off trying to make my car last another year or so as I've only got $400 saved in my nused car fund.
On our primary home, purchased in 2004, we have paid off $105,546 in principal. Since we refinanced our mortgage a couple years ago to 2.75% our payments have accelerated. We also refinanced from a 25 year loan to a 15 year loan and cut off 7 years from our overall term. On our three investment property mortgages, as of next month, all three mortgages should be below $100,000.
As for our other debt, I've struggled with credit card debt, pay it down, run it up, pay it down, etc. I really need to kill it once and for all as its now been hanging around since the baby arrived. We also have a new debt that is not yet listed, 0% financing on floor tile that we bought for one of our investment properties. That debt is a couple of thousand dollars.
As for Mr. Sam's new truck, we continue to pay down his truck debt (we paid for his new truck half in cash and half in 0% financing) at $500 a month, so that debt will be gone in seven months. I really need to be saving for a nused car for me, as my car has been acting up. Recently it was out of commission for a few weeks with an electrical problem but the fix ended up only costing $250. There are several other more expensive things wrong with the car, but the dealer says none are pressing to fix as of now. The dealer gave me a print out of things to fix that would likely cost $4000 which is more than the car is worth. It was kinda funny as I had started to research my next car. Since Baby Sam arrived I, of course, want a family car. But, I'm better off trying to make my car last another year or so as I've only got $400 saved in my nused car fund.
Tuesday, June 24, 2014
Car Repair Blues
One of the ways we keep our expenses down so that we can save more is keeping our transportation costs low. I drive a 2006 four door car, which was purchased with cash in 2008. Mr. Sam drives a truck, a necessity for our rental properties, which was purchased with cash in 2004. The truck is of the late 1990s vintage. So, I've had my car for six years and Mr. Sam has had his truck for 10 years now.
This year the average price of new car was $31,252. Additionally, Americans are keeping those expensive cars for more years (due in part to longer car loans).
Last year, my car needed a fair amount of work. The work was done, about $2000, and I was hopeful my car would be good for a few years. No such luck, I've just put another $1200 into my car and I have an outstanding transmission problem that needs to be addressed by a specialist (which means expensive in my mind, but its an unknown at this point).
While we were talking transmission for my car, Mr. Sam's truck has reached its end. He either needs a new engine or a new vehicle and the mechanic who looked at it said it really wasn't worth putting a new engine into the truck. The truck is also only two doors and we really need another four door vehicle for a variety of reasons.
So, we are on the hunt for a used four door truck (with a shorter bed). Interestingly, the prices on used (2010-2013) trucks are close to the price for a new one. I mentioned financing a purchase rather than depleting our savings account (which has already been battered by prior unplanned expenses this year), but Mr. Sam is strongly against having a car payment (I've trained him well). Which means that we will need to look for something that is older or figure out some other plan.
This year the average price of new car was $31,252. Additionally, Americans are keeping those expensive cars for more years (due in part to longer car loans).
Last year, my car needed a fair amount of work. The work was done, about $2000, and I was hopeful my car would be good for a few years. No such luck, I've just put another $1200 into my car and I have an outstanding transmission problem that needs to be addressed by a specialist (which means expensive in my mind, but its an unknown at this point).
While we were talking transmission for my car, Mr. Sam's truck has reached its end. He either needs a new engine or a new vehicle and the mechanic who looked at it said it really wasn't worth putting a new engine into the truck. The truck is also only two doors and we really need another four door vehicle for a variety of reasons.
So, we are on the hunt for a used four door truck (with a shorter bed). Interestingly, the prices on used (2010-2013) trucks are close to the price for a new one. I mentioned financing a purchase rather than depleting our savings account (which has already been battered by prior unplanned expenses this year), but Mr. Sam is strongly against having a car payment (I've trained him well). Which means that we will need to look for something that is older or figure out some other plan.
Friday, March 14, 2014
Drum Roll - New Goal
CNN.com reports that the number of millionaires has hit a new high. Which got me thinking, because this survey of millionaires excludes their primary homes in the asset count.
So, the new goal is to hit the million dollar net worth mark without counting our primary home. And, looking at our networthiq.com numbers we are not too far from that mark. At present, our net worth is at $1,380,755 and our primary home's value is listed at $399,000 (value from our last appraisal in 2012). Which means that we are about $18,000 away from having a million dollar net worth without including our primary home.
Not too shabby.
So, the new goal is to hit the million dollar net worth mark without counting our primary home. And, looking at our networthiq.com numbers we are not too far from that mark. At present, our net worth is at $1,380,755 and our primary home's value is listed at $399,000 (value from our last appraisal in 2012). Which means that we are about $18,000 away from having a million dollar net worth without including our primary home.
Not too shabby.
Monday, March 10, 2014
Royal Screw Up
So, I have a pretty good system set up for our personal finances. I have a system for paying bills and for our savings that works off of our spending plant. But, every once in a while things go surprisingly wrong.
At the end of last month, February, I was getting ready to do some work travel and I made the decision to pay our home mortgage March payment in February. What was I thinking, well it seemed like I had lots of cash laying around our joint checking account, I knew I was traveling and I figured let me just take care of that big bill now instead of later.
Big mistake! Several auto transfers and other obligations drafted after I made this payment and I, of course, came up short. And further, of course, I had to try and fix this mistake while traveling. Ugh, ugh, ugh.
Two weeks later, I am still undoing the damage that was incurred.
At the end of last month, February, I was getting ready to do some work travel and I made the decision to pay our home mortgage March payment in February. What was I thinking, well it seemed like I had lots of cash laying around our joint checking account, I knew I was traveling and I figured let me just take care of that big bill now instead of later.
Big mistake! Several auto transfers and other obligations drafted after I made this payment and I, of course, came up short. And further, of course, I had to try and fix this mistake while traveling. Ugh, ugh, ugh.
Two weeks later, I am still undoing the damage that was incurred.
Saturday, January 4, 2014
2014 - Additional Goals
Previously I posted our 2014 savings goal numbers, I have a couple of other goals to list as well.
Back in March 2012 I posted about wanting to install plantation shutters in our front, first floor bedroom. Well, almost two years later, we've not made any progress on this goal, although we have accomplished other house projects.
So, for 2014 my goal is to replace the cheap plastic blinds (that have been up since we bought the house almost 10 years ago) in the front bedroom. You will note that I've not renewed the goal to have plantation shutters installed. While that is still a goal, I recognize that plantation shutters are both an expensive and time consuming project. I will, eventually, have plantation shutters installed, but for now my plan is to order blinds to replace the crappy plastic ones.
I've settled on a blind company. But, I have not decided on whether I'm going to order blinds or roman shades, much of that will depend on pricing. Many of our windows that need replacement window treatments are the same size, either as a single window, group of two or group of three. Off the top of my head, I have 6 bedroom windows, 2 study windows, 2 laundry windows). As a result, the blinds that I order now can, at some point, be moved from the front bedroom (after I get my shutters), to the back bedroom, to the study, etc. Said another way, even though I still plan to get shutters the blinds/shades that I plan to order now will not be wasted when I want to upgrade to shutters. Even at $100 a window (a high end budget), $400 in blinds will make me very happy (plus we've saved that money in our house account).
Also on the agenda this year is an office upgrade. We are going to do an Ikea cabinet and bookshelf built in hackplus new paint and our budget is $1000.
Finally, a debt goal. At present our debt load is @$538,000. I would like to get our debt below $500,000 in 2014. I have no idea if that is a reasonable goal or not. I've got to do some number crunching since we did not include any additional mortgage prepayment in our 2014 goals.
Back in March 2012 I posted about wanting to install plantation shutters in our front, first floor bedroom. Well, almost two years later, we've not made any progress on this goal, although we have accomplished other house projects.
So, for 2014 my goal is to replace the cheap plastic blinds (that have been up since we bought the house almost 10 years ago) in the front bedroom. You will note that I've not renewed the goal to have plantation shutters installed. While that is still a goal, I recognize that plantation shutters are both an expensive and time consuming project. I will, eventually, have plantation shutters installed, but for now my plan is to order blinds to replace the crappy plastic ones.
I've settled on a blind company. But, I have not decided on whether I'm going to order blinds or roman shades, much of that will depend on pricing. Many of our windows that need replacement window treatments are the same size, either as a single window, group of two or group of three. Off the top of my head, I have 6 bedroom windows, 2 study windows, 2 laundry windows). As a result, the blinds that I order now can, at some point, be moved from the front bedroom (after I get my shutters), to the back bedroom, to the study, etc. Said another way, even though I still plan to get shutters the blinds/shades that I plan to order now will not be wasted when I want to upgrade to shutters. Even at $100 a window (a high end budget), $400 in blinds will make me very happy (plus we've saved that money in our house account).
Also on the agenda this year is an office upgrade. We are going to do an Ikea cabinet and bookshelf built in hackplus new paint and our budget is $1000.
Finally, a debt goal. At present our debt load is @$538,000. I would like to get our debt below $500,000 in 2014. I have no idea if that is a reasonable goal or not. I've got to do some number crunching since we did not include any additional mortgage prepayment in our 2014 goals.
Friday, January 3, 2014
Sam's Plan for Killing Debt in 2014 - Step # 1
It is the new year and many people want to get their financial house in order. This my guidance on killing debt and gaining control of your finances.
Step # 1 - face the music.
This is actually one of the hardest steps of paying off your debt, you (along with your spouse/partner) need to gather up your statements and figure out how much you owe. Look at your credit card statement, student loan statement, car loan information, other loans, etc. Find the statements or go online and determine your balance, interest rate, regular payment, term for each loan (I would exclude the mortgage for now).
Create a documents, whatever format works best for you, with each debt listed, the interest rate, the term, and the monthly payment, along with the due date. We used an Excel spread sheet when we started our debt killing journey in 2007.
Create a documents, whatever format works best for you, with each debt listed, the interest rate, the term, and the monthly payment, along with the due date. We used an Excel spread sheet when we started our debt killing journey in 2007.
Tuesday, December 3, 2013
What Would You Tell Your Younger Self?
Over at Get Rich Slowly April Dykman posed the question of what would you tell your younger self regarding personal finance. Below is my post.
I think the most important ingredients to my financial success are as follows. First, I invested in a good education which lead to a well paying, good, professional job. I was able, both due to my parents and due to smart choices (savings/grants/working) in professional school, to avoid student loan debt until the very end of my education. Second, early on in my career I started utilizing a spending plan/budget and focused on paying off debt and having a plan for my money. Third, I met and married a frugal man who, while horrible at paying bills and tracking spending, is fully on board with living a debt free life and prioritizing savings/investing rather than consuming.
How about you, what personal finance guidance would you give your younger self?
This is fun!
To College Sam – walk away from the credit card offer, you don’t need that free t-shirt.
To post college Sam – good job on taking that personal finance course through the local extension system. You learned a lot and it will help you in the future. Good job on paying off that college credit card, now you really ought to cut it up. Also, congrats on opening your first IRA even though you are earning poverty wages in social services. And tell your parents thanks for paying your way through college, you probably didn’t even appreciate the fact that they saved each month your entire life to give you a great education.
To post professional school Sam – good job on paying off that student loan debt and good job on keeping your student loan debt lowish during school. You rushed into your first house purchase, but it will turn out great. Now that you are making a good living you are making a lot of good choices, paying off the student loan debt, creating your first budget (2001), investing in your work 401k and paying off all credit cards in full each month. I sure wish I could tell you that even when you are paying off your credit cards in full each month you are still spending too much money. You should have listened to me when I told you to cut up those cards post college.
A few years later Sam, just because everyone is investing in Florida real estate doesn’t make it a good investment, maybe you should do some more research before you buy that investment property in 2005, 8 years later it will be worth half of what you and soon to be Mr. Sam paid for it. Good thing its rented.
To engaged Sam, good job on picking a spouse that is hard working, frugal and recognizes that even though he has the MBA he is terrible at budgeting and bill paying so he turns it over to you upon marriage.
To married Sam, whoo-hoo, good job to you and Mr. Sam in paying off $55,000+ in just over a year during your first year of marriage. That first year of marriage in which you created your first annual spending plan (an update on the 2001 individual budget), finally cutting up the credit cards, creating an allowance system, prioritizing savings and making sure that you and Mr. Sam are on the same page when it comes to money, that will pay off big time. Seven years later and you guys have increased your net worth by $550,000.
Now, stop eating out so much. :)Looking back at my own journey, I certainly have made some mistakes along the way. It is hard not to, and many of those mistakes or detours have helped to make me a better person.
I think the most important ingredients to my financial success are as follows. First, I invested in a good education which lead to a well paying, good, professional job. I was able, both due to my parents and due to smart choices (savings/grants/working) in professional school, to avoid student loan debt until the very end of my education. Second, early on in my career I started utilizing a spending plan/budget and focused on paying off debt and having a plan for my money. Third, I met and married a frugal man who, while horrible at paying bills and tracking spending, is fully on board with living a debt free life and prioritizing savings/investing rather than consuming.
How about you, what personal finance guidance would you give your younger self?
Thursday, November 21, 2013
I Love Numbers!
A couple weeks back I posted an update on our debt progress. From 11/2012 - 11/2013 we paid off almost $35,000 in debt. At this point in our lives, debt means mortgage debt either on our primary home or our three investment properties or our piece of land.
I didn't think much about that number, except I liked it because I like round numbers. But, going back through our networthiq.com numbers I realized that our debt progress in 2013 took an unusual jump (thankfully in the right direction).
11/2012 - 11/2013 - @$35,000
11/2011 - 11/2012 - @$22,000
11/2010 - 11/2011 - @$20,000
11/2009 - 11/2010 - @$19,500
11/2008 - 11/2009 - @$19,000
I'm sure you can see that from 2008-2012 there was a gradual and upward trend on the amount of debt we killed each year. And then, all of sudden, whammo, this year a thirteen thousand increase. Even putting aside the mortgage principal prepayment goal of $5,000 (which was also a goal last year and the year before), I am surprised by this dramatic forward progress. I'm going to have to further investigate the numbers, but I'm assuming this year's dramatic advance is as a result of our primary home refinance, which closed last quarter of 2012, in which we shortened our term and got a reduced rate of 2.75%.
I didn't think much about that number, except I liked it because I like round numbers. But, going back through our networthiq.com numbers I realized that our debt progress in 2013 took an unusual jump (thankfully in the right direction).
11/2012 - 11/2013 - @$35,000
11/2011 - 11/2012 - @$22,000
11/2010 - 11/2011 - @$20,000
11/2009 - 11/2010 - @$19,500
11/2008 - 11/2009 - @$19,000
I'm sure you can see that from 2008-2012 there was a gradual and upward trend on the amount of debt we killed each year. And then, all of sudden, whammo, this year a thirteen thousand increase. Even putting aside the mortgage principal prepayment goal of $5,000 (which was also a goal last year and the year before), I am surprised by this dramatic forward progress. I'm going to have to further investigate the numbers, but I'm assuming this year's dramatic advance is as a result of our primary home refinance, which closed last quarter of 2012, in which we shortened our term and got a reduced rate of 2.75%.
Thursday, November 14, 2013
Time for 2014 Goal Planning
Since it is November, it is time to start thinking about our 2014 annual spending plan and our 2014 savings goals.
First on the list, 2014 IRA savings. As I previously posted, I have already set up our 2014 IRA savings account at CapitalOne 360 (f/n/a ING). The 2014 contribution limits for IRAs are holding steady, so we can each contribute $5,500 to our non-deductible IRAs.
Second, 2014 401k contributions, I will contribute $17,500 to my 401k at work (again the limits are not increasing next year). We need to figure out if Mr. Sam will be eligible for a 401k at his new job in 2014. If he is not eligible, then he may be able to contribute to a deductible IRA (see above) to get a bit of tax savings. But, regardless of whether he is eligible for 401k we will sock away $17,500 anyways. Yes it will be after tax money so we will lose out on that advantage but we will still put that money into the trading account.
Third, I assume we will put money into the emergency fund and for house projects.
We will need to decide whether it makes sense to continue to pay down the mortgage principal on our primary home. While I continue to have the goal of being debt free and paying off the mortgage on our primary home could provide significant insurance savings, we really are not saving much interest by paying early because our mortgage interest rate is so low (2.75%).
I also think we need to start a savings account for a replacement car/truck. I bought my car, a 2006, in 2008. I just put about $3000 into it so, even though it is 7 years old, it should be good for quite some time.
But, Mr. Sam's truck, which we bought used in 2005, is more than 10 years old and not in the best condition these days. He would prefer to keep it and have me buy a newer car and he would take my current car for his work car. Then we would have the truck to use for house projects and the like when we need it. But that means we would have 4 cars (we also have an antique weekend car) and that is a lot of insurance. I'm also not keen on having 4 cars to store/park. As such, I'm more inclined to replace Mr. Sam's truck with a newer and nicer truck (something with a bigger cab and shorter bed and a smoother ride.
Second, 2014 401k contributions, I will contribute $17,500 to my 401k at work (again the limits are not increasing next year). We need to figure out if Mr. Sam will be eligible for a 401k at his new job in 2014. If he is not eligible, then he may be able to contribute to a deductible IRA (see above) to get a bit of tax savings. But, regardless of whether he is eligible for 401k we will sock away $17,500 anyways. Yes it will be after tax money so we will lose out on that advantage but we will still put that money into the trading account.
Third, I assume we will put money into the emergency fund and for house projects.
We will need to decide whether it makes sense to continue to pay down the mortgage principal on our primary home. While I continue to have the goal of being debt free and paying off the mortgage on our primary home could provide significant insurance savings, we really are not saving much interest by paying early because our mortgage interest rate is so low (2.75%).
I also think we need to start a savings account for a replacement car/truck. I bought my car, a 2006, in 2008. I just put about $3000 into it so, even though it is 7 years old, it should be good for quite some time.
But, Mr. Sam's truck, which we bought used in 2005, is more than 10 years old and not in the best condition these days. He would prefer to keep it and have me buy a newer car and he would take my current car for his work car. Then we would have the truck to use for house projects and the like when we need it. But that means we would have 4 cars (we also have an antique weekend car) and that is a lot of insurance. I'm also not keen on having 4 cars to store/park. As such, I'm more inclined to replace Mr. Sam's truck with a newer and nicer truck (something with a bigger cab and shorter bed and a smoother ride.
Wednesday, November 13, 2013
Progress on Debt
Updating our networthiq.com numbers today and I was pleased to see we have less than $540,000 in debt (all real estate debt). We have paid off just under $35,000 in debt in the last twelve (12) months.
These types of round numbers make me happy. Now to get under $500,000 in debt.
These types of round numbers make me happy. Now to get under $500,000 in debt.
Thursday, August 15, 2013
Improvement Through Data - Fitness
As someone who has improved their finances by utilizing data, I am a fan of tracking data. For our personal finances, we use Quicken to track our spending, easily downloaded from the Wells Fargo web site. We also utilize an Excel spreadsheet to track our annual savings goals (when we were killing our $55,000 in unsecured debt we also used Excel to track our progress).
My employer has a fitness/health initiative (designed to reduce health insurance costs) and they recently offered use of a FitBit Zip which keeps track of steps, distance and calories burned through exercise. I recently set mine up and it is illuminating to see how little I move even though I exercise regularly and make an effort to walk during my day. On the days I exercise, walk 45 minutes three times a week, I accumulate about 7,500 steps which is considered light active. My goal is 10,000 steps per day which would push me into the active status
On days I don't exercise I only get about 3,500 steps although I do, already, take breaks during the day to get out from behind my desk and I try to take the stairs into and out of my office. Under 5000 steps per day can indicate a sedentary lifestyle sedentary lifestyle and the associated risk factors related to same.
I think the idea of tracking my activities will make me more accountable, to myself, and is likely to increase my activity. I know that I respond well to tracking my data and I'm interested in seeing how utilizing the FitBit can help me in this regard.
How about you, do you use any of these methods to track activity? Does tracking work for you?
My employer has a fitness/health initiative (designed to reduce health insurance costs) and they recently offered use of a FitBit Zip which keeps track of steps, distance and calories burned through exercise. I recently set mine up and it is illuminating to see how little I move even though I exercise regularly and make an effort to walk during my day. On the days I exercise, walk 45 minutes three times a week, I accumulate about 7,500 steps which is considered light active. My goal is 10,000 steps per day which would push me into the active status
On days I don't exercise I only get about 3,500 steps although I do, already, take breaks during the day to get out from behind my desk and I try to take the stairs into and out of my office. Under 5000 steps per day can indicate a sedentary lifestyle sedentary lifestyle and the associated risk factors related to same.
I think the idea of tracking my activities will make me more accountable, to myself, and is likely to increase my activity. I know that I respond well to tracking my data and I'm interested in seeing how utilizing the FitBit can help me in this regard.
How about you, do you use any of these methods to track activity? Does tracking work for you?
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