Showing posts with label Higher Ed.. Show all posts
Showing posts with label Higher Ed.. Show all posts
Tuesday, May 26, 2015
Some Slightly Better News on the Rising Cost of College
Glad to hear that the dramatic rise in college costs is starting to slow down a bit. As I posted previously, we have started a 529 fund for Baby Sam. So far, we have contributed $2100 to the fund.
Thursday, March 7, 2013
Sounds Familiar
Today on Slate, in the Dear Prudence column there was an inquiry from a young professional swimming in debt.
I’m an attorney with a mountain of student and credit card debt. Before I got married, I told my wife about this, but thought I owed about $100,000. It turns out to be about $170,000. When I finally added up the total eight months ago and told her, she accused me of lying previously. My job barely pays me enough to cover our monthly expenses, but I’m supposed to be moving up. I continually look for new jobs and am trying to advance in my company, but that takes time. My wife is in her early 30s and is desperate to have kids and buy our own home, but she insists we can't because of our financial situation. When I have gone to interviews and was not hired, she blamed me for doing something wrong to blow it. A few days ago she found out one of her friends had a couple interviews for a much higher paying job. She became extremely frustrated, insulted my work ethic, and now won't speak to me. I don't know what to do. Should I stay in a relationship that is this unsupportive?
—No Pots to Piss in
I'm afraid this is a common problem, and it seems to only be getting worse and college, graduate school and professional school go up in price. A quick review of the ABA tuition charts show that tuition at a private law school in 2001 ran about $23,000, but in 2011 was up to $39,000. According to the New York Times, 90% of law students finance their education and the average debt in 2001 was $70,000 and in 2011 was $125,000. So, $170,000 in debt for a private law school education doesn't seem that far off from these "average" numbers.
Here is Prudie's response:
Dear Pots,
It’s too bad your wife is incapable of procuring one of those high-paying jobs she thinks are so easy to get. Sadly, there are so many young people in your situation—people who wonder if crushing debt will ever allow them to start families or have a normal life. When you told your then-fiancée you were one of those burdened people, the two of you should have looked closely at your finances and started figuring out a long-term plan toward solvency. If that didn’t interest her, she should have walked. Instead, you now have another burden: a punitive spouse who blames you for everything. I hope your health insurance covers couples counseling. Even if it doesn't, paying for a few sessions will clarify whether you can save a marriage in which you get the silent treatment because someone else got a job.
—Prudie
Before Mr. Sam and I moved in together we had a major financial summit, in which we brought our credit reports and a list of debts and assets. At the point of our financial summit we were in love and in a committed relationship. I remember that I was worried about what I was going to learn and if it was going to impact our relationship and our plan for the future. Luckily, his disclosure was better than I thought and I could see a way forward together. But, we didn't actually create a joint plan for killing the debt or for our financial futures until a couple of years later when we were married.
For the couple in the Dear Prudie column, it seems like they didn't have a financial disclosure discussion until they were already engaged and the disclosure wasn't complete. I also find myself wondering about the wife's career and how much she is contributing to killing the debt.
How about you, did you have a financial summit with your significant other before you married? Have you walked away from a relationship due to a person's poor financial skills/habits? Has student loan debt impacted your life choices?
I’m an attorney with a mountain of student and credit card debt. Before I got married, I told my wife about this, but thought I owed about $100,000. It turns out to be about $170,000. When I finally added up the total eight months ago and told her, she accused me of lying previously. My job barely pays me enough to cover our monthly expenses, but I’m supposed to be moving up. I continually look for new jobs and am trying to advance in my company, but that takes time. My wife is in her early 30s and is desperate to have kids and buy our own home, but she insists we can't because of our financial situation. When I have gone to interviews and was not hired, she blamed me for doing something wrong to blow it. A few days ago she found out one of her friends had a couple interviews for a much higher paying job. She became extremely frustrated, insulted my work ethic, and now won't speak to me. I don't know what to do. Should I stay in a relationship that is this unsupportive?
—No Pots to Piss in
I'm afraid this is a common problem, and it seems to only be getting worse and college, graduate school and professional school go up in price. A quick review of the ABA tuition charts show that tuition at a private law school in 2001 ran about $23,000, but in 2011 was up to $39,000. According to the New York Times, 90% of law students finance their education and the average debt in 2001 was $70,000 and in 2011 was $125,000. So, $170,000 in debt for a private law school education doesn't seem that far off from these "average" numbers.
Here is Prudie's response:
Dear Pots,
It’s too bad your wife is incapable of procuring one of those high-paying jobs she thinks are so easy to get. Sadly, there are so many young people in your situation—people who wonder if crushing debt will ever allow them to start families or have a normal life. When you told your then-fiancée you were one of those burdened people, the two of you should have looked closely at your finances and started figuring out a long-term plan toward solvency. If that didn’t interest her, she should have walked. Instead, you now have another burden: a punitive spouse who blames you for everything. I hope your health insurance covers couples counseling. Even if it doesn't, paying for a few sessions will clarify whether you can save a marriage in which you get the silent treatment because someone else got a job.
—Prudie
Before Mr. Sam and I moved in together we had a major financial summit, in which we brought our credit reports and a list of debts and assets. At the point of our financial summit we were in love and in a committed relationship. I remember that I was worried about what I was going to learn and if it was going to impact our relationship and our plan for the future. Luckily, his disclosure was better than I thought and I could see a way forward together. But, we didn't actually create a joint plan for killing the debt or for our financial futures until a couple of years later when we were married.
For the couple in the Dear Prudie column, it seems like they didn't have a financial disclosure discussion until they were already engaged and the disclosure wasn't complete. I also find myself wondering about the wife's career and how much she is contributing to killing the debt.
How about you, did you have a financial summit with your significant other before you married? Have you walked away from a relationship due to a person's poor financial skills/habits? Has student loan debt impacted your life choices?
Monday, January 7, 2013
January 2013 Spending Fast
We spent a ton of money in December and we also saved a ton of money in December in order to stretch to try and meet some of our 2012 savings goals.
December included two trips for me, one was solo and less expensive, but the other was with my husband and another couple and was pricey. The solo trip was unplanned so that means unaccounted travel expenses in December.
And of course, the holidays always fall in December. Despite the fact that we save and plan ahead for the holidays there are still always extra costs that pop up. A new outfit here, an extra dinner out, drinks with friends, etc.
Finally, we do much of our charitable giving at the end of the year. This year, we stretched and gave more than we normally do. I also paid off a charitable pledge to my university two years early, so that was an extra $420 in charitable giving dollars.
Put that all together and I feel like we've been keeping the economy going just with our family's spending. Add in the fact that we doubled down on our December savings to try and meet our 2012 goals and I feel like we have no money because we either saved it or spent it. So, it is time for another January spending fast.
If you've never heard of a spending fast, pick a time period (if 30 days is too long, do a 7 day, a 5 day [work week fast] or a weekend fast) and then simply don't spend money on anything unnecessary. So that means for January, you have got to avoid all the after holiday sales. No eating out, no ordering in, but of course you can still hit the grocery store.
What is your financial plan for January?
December included two trips for me, one was solo and less expensive, but the other was with my husband and another couple and was pricey. The solo trip was unplanned so that means unaccounted travel expenses in December.
And of course, the holidays always fall in December. Despite the fact that we save and plan ahead for the holidays there are still always extra costs that pop up. A new outfit here, an extra dinner out, drinks with friends, etc.
Finally, we do much of our charitable giving at the end of the year. This year, we stretched and gave more than we normally do. I also paid off a charitable pledge to my university two years early, so that was an extra $420 in charitable giving dollars.
Put that all together and I feel like we've been keeping the economy going just with our family's spending. Add in the fact that we doubled down on our December savings to try and meet our 2012 goals and I feel like we have no money because we either saved it or spent it. So, it is time for another January spending fast.
If you've never heard of a spending fast, pick a time period (if 30 days is too long, do a 7 day, a 5 day [work week fast] or a weekend fast) and then simply don't spend money on anything unnecessary. So that means for January, you have got to avoid all the after holiday sales. No eating out, no ordering in, but of course you can still hit the grocery store.
What is your financial plan for January?
Monday, July 2, 2012
Half Way - Savings Goals
(1) Max out 401k(s) - $19,230 (57%)(goal is $34,000)
(2) Max out IRA(s) - $4105 (41%)(goal is $10,000)
(3) Add to e/r fund - $5200 (52%)(goal is $10,000)
(4) Pay down mortgage - $2490 (50%)(goal is $5,000)
(5) House projects - $650 (13%)(goal is $5,000)
(6) Trading account fund - $50 (1%)(goal is $5,000)
Total - $31,725 (46%)
Well, we are half way through the year and accordingly, we should be 50% of the way done on our savings goals (or $35,827). As demonstrated above, we continue to lag behind on our 2012 goals. At present, we are $4102 behind on our goals.
As I have posted before, we have spent approximately $10,000 on two certification courses for Mr. Sam this year. And, we just paid for a third program, so at present we have $4200 on the credit card*. Accordingly, I am pleased that we are only $4100 behind since we have spent $14,000 on classes this year.
For the second half of the year, we must up our focus and keep our day to day spending in check. We are ahead of schedule on the 401k contributions, and in fact Mr. Sam's 401k will be maxed out early this year, in September, so we'll have "extra" cash available to put towards our house and trading accounts. Our emergency fund contributions and mortgage principal payments are on track so no adjustment is needed to these two goals. We need to keep adding to our 2012 IRA, we should have $5000 saved to date, so we are $900 behind on that goal.
How are you doing on your 2012 goals?
*We don't normally use credit for day to day expenses, but big expenses will go on our credit card to get the 1% cash back discount. Then we spend the next month trying to pay it off and if we are short by the time the payment is due, we will pull from our savings to pay it off. No sense in getting cash back if you are paying interest.
Tuesday, June 5, 2012
Can I Afford It?
I just returned from another fabulous, annual Memorial Day weekend girls trip. The trip was expensive, nice hotel, pricey flight, fabulous 5 star dinners every night. But, as you know, I plan for these trips and put away money each month for our travel expenses. So this trip came in on budget, but it still was an expensive outing especially in light of the fact that Mr. Sam may not have a job at the end of the year.
While we did some great browsing in some great galleries and boutiques, I didn't actually buy anything on my trip. I was interested in a hand made regional flavor basket, that would cost between $200-$300 (depending on size). I decided not to buy it in the touristy area because I figured, and I was correct, that I could find a better price away from the hustle and bustle. Then I was in a gallery and found a large piece of original art that I fell in love with. In the gallery, it was priced at $750, but on-line it is priced at $625. Plus, I'd have to pay shipping which would tag on another $50 or so, but I don't have to pay sales tax. So all together it would cost around $675.
I'm not a huge fan of Suze Orman but I've always liked her "Can We Afford It" segments. So this is my version of Orman's can I afford it.
Now, we don't have any unsecured debt, but we do have lots of mortgage debt. However, at present, all of our investment properties are rented and paying for themselves. We also have almost $18,000 in our emergency fund.
But, the elephant in the room is Mr. Sam's job. We know there is a good chance that he will lose his job at the end of the year. As a result we've been spending big dollars on some certification classes for him and therefore we are behind on our 2012 savings goals. More importantly, we probably should be saving even more because of the high probability that Mr. Sam will be unemployed.
And putting that all aside, there are other home projects, i.e. plantations shutters and other improvements, that we could use this money for.
What do you think? Can I afford it?
While we did some great browsing in some great galleries and boutiques, I didn't actually buy anything on my trip. I was interested in a hand made regional flavor basket, that would cost between $200-$300 (depending on size). I decided not to buy it in the touristy area because I figured, and I was correct, that I could find a better price away from the hustle and bustle. Then I was in a gallery and found a large piece of original art that I fell in love with. In the gallery, it was priced at $750, but on-line it is priced at $625. Plus, I'd have to pay shipping which would tag on another $50 or so, but I don't have to pay sales tax. So all together it would cost around $675.
I'm not a huge fan of Suze Orman but I've always liked her "Can We Afford It" segments. So this is my version of Orman's can I afford it.
Now, we don't have any unsecured debt, but we do have lots of mortgage debt. However, at present, all of our investment properties are rented and paying for themselves. We also have almost $18,000 in our emergency fund.
But, the elephant in the room is Mr. Sam's job. We know there is a good chance that he will lose his job at the end of the year. As a result we've been spending big dollars on some certification classes for him and therefore we are behind on our 2012 savings goals. More importantly, we probably should be saving even more because of the high probability that Mr. Sam will be unemployed.
And putting that all aside, there are other home projects, i.e. plantations shutters and other improvements, that we could use this money for.
What do you think? Can I afford it?
Monday, May 7, 2012
A Snowflaking Reminder
We are making very slow progress on our 2012 goals, at present we are more than $5000 behind on our goals. There are lots of very good reasons for our slow progress, mostly related to Mr. Sam's certification classes and the costs related to same. There are also some lame reasons for our slow progress, mostly starting late and not keeping day to day expenses in check.
I have two trips coming up in May, one unplanned trip for family reasons and one planned trip that I take each Memorial day weekend. I budgeted for the planned trip but not, surprise, the unplanned trip. So, I had a very expensive plane ticket, more than $600, and there will be additional costs as well.
So while I just paid our beginning of the month bills on my lunch hour, I debated as to whether we can afford to put aside money for our 2012 IRA goal at present. Normally, I sock away money for this goal in $500 or $1000 increments, but there is no way we can do that this month.
So I pondered the issue for a few minutes and eventually went back to the lessons learned in 2007 when we were paying off $55,000 in debt. And what is that lesson? Every little bit counts. When we working to pay off our debt, I would make multiple payments during the month, some were big and some were small (those small payments are known as snowflakes in the debt snowball vernacular). The idea is to keep moving forward, keeping chipping away at the debt. So, I took that lesson and applied it to our savings goal, we con't do $1000 or $500 towards the 2012 IRA today, but we can do $100. And that is what I did, I transferred $100 to our 2012 IRA account.
Forward progress is forward progress.
I have two trips coming up in May, one unplanned trip for family reasons and one planned trip that I take each Memorial day weekend. I budgeted for the planned trip but not, surprise, the unplanned trip. So, I had a very expensive plane ticket, more than $600, and there will be additional costs as well.
So while I just paid our beginning of the month bills on my lunch hour, I debated as to whether we can afford to put aside money for our 2012 IRA goal at present. Normally, I sock away money for this goal in $500 or $1000 increments, but there is no way we can do that this month.
So I pondered the issue for a few minutes and eventually went back to the lessons learned in 2007 when we were paying off $55,000 in debt. And what is that lesson? Every little bit counts. When we working to pay off our debt, I would make multiple payments during the month, some were big and some were small (those small payments are known as snowflakes in the debt snowball vernacular). The idea is to keep moving forward, keeping chipping away at the debt. So, I took that lesson and applied it to our savings goal, we con't do $1000 or $500 towards the 2012 IRA today, but we can do $100. And that is what I did, I transferred $100 to our 2012 IRA account.
Forward progress is forward progress.
Thursday, April 5, 2012
2012 Savings Goals - April Report
(1) Max out 401k(s) - $10,105 (30%)(goal is $34,000)
(2) Max out IRA(s) - $1000 (10%)(goal is $10,000)
(3) Add to e/r fund - $ 2400 (24%)(goal is $10,000)
(4) Pay down mortgage - $1245 (25%)(goal is $5,000)
(5) House projects - $300 (6%) (goal is $5,000)
(6) Trading account fund - $0 (0%(goal is $5,000)
Total - $15,050 (22%)
At present, we are about $3500 behind on our 2012 goals but we are slowly starting to catch up from our slow start this year. We have paid off the credit card, which we used to pay for Mr. Sam's recent certification class. He has another class he wants to take and we are hoping that the company might pay for this one, if not that will be another $2500 on education this year.
We are going away this weekend, trip has been paid for already and daily spending money was saved in our ING travel/vacation savings account. Just have to stop at the bank tonight and make a withdraw of the cash for day to day spending.
Wednesday, March 21, 2012
We Will Take What We Can Get
First the good news. Mr. Sam will be receiving a 3.5% raise at work. Now, the bad news, Mr. Sam won't be receiving a bonus this year (no one in his division is receiving one).
And finally, the unknown news, his division is in the process of being sold. It is unknown as to how the sale will impact his long term employment. At present, it looks like he will have secure employment at least through the third quarter of this year and possibly through year end. After that, he will become an employee of the new company, there will be a transition period and he may or may not be retained long term. We have known about the sale since January, but I'm just posting about it now. So Mr. Sam has been working on his resume, doing some interviewing and taking the certification classes that I posted about earlier this year. Mr. Sam actually started working on his certifications prior to the announcement of this sale.
And finally, the unknown news, his division is in the process of being sold. It is unknown as to how the sale will impact his long term employment. At present, it looks like he will have secure employment at least through the third quarter of this year and possibly through year end. After that, he will become an employee of the new company, there will be a transition period and he may or may not be retained long term. We have known about the sale since January, but I'm just posting about it now. So Mr. Sam has been working on his resume, doing some interviewing and taking the certification classes that I posted about earlier this year. Mr. Sam actually started working on his certifications prior to the announcement of this sale.
Thursday, March 15, 2012
Gifting
I normally give my niece and nephew $100 for birthdays and $100 at Christmas, I also contribute, on an automated schedule to their 529 plans during the year.
But, my nephew just turned 18 and I gave him $200 for his birthday because I counted it as a bigger birthday. He is also graduating from high school this year and I assume I will give him money at graduation. My niece is turning 16 this year and I'm pretty sure I gave my nephew $100 when he turned 16, but I don't really remember. I was planning to give her $100, plus I bought her a special necklace last year that I've been saving for her sweet sixteen. The necklace cost at least $100.
So, am I safe giving my nephew $300 this spring, between his 18th birthday and high school graduation, and giving my niece $100 plus necklace? When my niece hits 18 and graduates from high school I plan to gift to her in a similar fashion.
I should, of course, mention that there are both mature, good kids who will be happy with anything I give them and will send appropriate thank you cards too.
But, my nephew just turned 18 and I gave him $200 for his birthday because I counted it as a bigger birthday. He is also graduating from high school this year and I assume I will give him money at graduation. My niece is turning 16 this year and I'm pretty sure I gave my nephew $100 when he turned 16, but I don't really remember. I was planning to give her $100, plus I bought her a special necklace last year that I've been saving for her sweet sixteen. The necklace cost at least $100.
So, am I safe giving my nephew $300 this spring, between his 18th birthday and high school graduation, and giving my niece $100 plus necklace? When my niece hits 18 and graduates from high school I plan to gift to her in a similar fashion.
I should, of course, mention that there are both mature, good kids who will be happy with anything I give them and will send appropriate thank you cards too.
Thursday, December 8, 2011
Investment in Self
Mr. Sam has an MBA and works for a large corporation in logistics. He works very hard and is trying to move the company forward from 1980s systems to modern, automated processes that are both more efficient and more accurate. He is under utilized in his current position and also bored at times. He is also a behind the scenes type of employee, so he thinks if it came time for cuts or layoffs he would be easily cut because no one really knows his worth.
But, the job has lots of pros, he is working in his field in a professional job, he is paid reasonably well, he can work from home, if he works in the office his commute is 20 minutes, the benefits are great (we save quite a bit of money by both being insured under his medical insurance plan and this year he probably will get close to $6000 in 401k match), and he has a boss that is very hands off, etc.
While he sits tight in this job with this company, he is thinking he ought to be obtaining more education. As a result, he is thinking about taking a Six Sigma class. First, he would like to be challenged since he is somewhat bored right now. Second, he thinks the classes would be helpful for his career both at his current position (demonstrating his initiative to further his career and utilizing the techniques he will learn) and if he opts to look elsewhere. The black belt certification and the green belt prerequisite will cost about $6000 and he will end up using two weeks of vacation. There is a chance his company will reimburse part of the class costs (maybe like $2000).
Anyone obtained a Six Sigma certification and if yes, was it worth it?
But, the job has lots of pros, he is working in his field in a professional job, he is paid reasonably well, he can work from home, if he works in the office his commute is 20 minutes, the benefits are great (we save quite a bit of money by both being insured under his medical insurance plan and this year he probably will get close to $6000 in 401k match), and he has a boss that is very hands off, etc.
While he sits tight in this job with this company, he is thinking he ought to be obtaining more education. As a result, he is thinking about taking a Six Sigma class. First, he would like to be challenged since he is somewhat bored right now. Second, he thinks the classes would be helpful for his career both at his current position (demonstrating his initiative to further his career and utilizing the techniques he will learn) and if he opts to look elsewhere. The black belt certification and the green belt prerequisite will cost about $6000 and he will end up using two weeks of vacation. There is a chance his company will reimburse part of the class costs (maybe like $2000).
Anyone obtained a Six Sigma certification and if yes, was it worth it?
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