For the month of July, here's how the numbers shake out overall:
Net Income: $6,256
Total Expenses: $3,232
Total Savings: $2,321
Net Cash Flow: $703
My Net Worth increased by $1,454 to $175,485. I did elect to draw down some of my cash savings to pay off revolving debt (I even paid off a 0% offer a year early), but it didn't negatively impact my net worth. Having a positive cash flow at the end of the month is also nice.
This month, I also decreased spending in nearly every category across the board except in Travel (last month I didn't spend anything.) Household expenses are down 85% (primarily due to the end of my landscaping spree); Clothing is down 67%, and Leisure spending is down 34%. I think this definitely shows an inclination to rein in my spending.
End of post.
Thursday, July 31, 2008
July Summary
Saturday, July 26, 2008
Real Estate Tax Payment
During the time last year when I was shopping around for mortgages, one thing that I wanted to do was escrow my own taxes and insurance. I didn't like the idea of a bank earning interest on my money - essentially paying them a "fee" to write 2 checks I am perfectly capable of writing myself.
Last year, I earned $123 in interest on the savings account which houses my T&I payments. This year, the interest rates aren't as great, and so far I've earned around $50 - but it's still more than I would have had otherwise. It takes me about 5 minutes to write the tax payment checks (installments are paid 2x per year) and another 2 minutes to trigger the automatic payment of the annual insurance.
In all, I think it's taught me more discipline than I otherwise would have had, and it also makes the taxes seem more tangible to me. I also get great pleasure & sense of accomplishment knowing that I am able to pay the taxes on time & in full when they are due. As I sit today, I have enough money saved to pay the September tax bill, fully a month ahead of schedule. Yay me!
2008 also marks the first year of my adult life where I have paid all of my insurance policies in full when the bill came instead of having to do installment plans.
End of post.
Friday, July 04, 2008
DFEFM
As of today, I am officially what I refer to as DFEFM - Debt Free Except For the Mortgage.
All of my credit card payments have posted, and when I look at my account summaries in Microsoft Money, the Credit Account section blissfully shows $0.00 across all accounts.
I did make a purchase yesterday to get ready for my friend's wedding - since it's an Indian wedding, I decided to try getting my eyebrows threaded and some mendhi (henna tattoos.) The eyebrows HURT, worse than waxing, but they are as clean as they would have been with the wax, and it cost me six times LESS to get them threaded - $6 instead of $36 at the spa. One of my coworkers turned me on to the place and even called to make my appointment for me. Really cool.
Here's a picture of the henna tats:
End of post.
Wednesday, July 02, 2008
Another Trip to the Hardware Store
I did some spending today, more stuff for the yard. I picked up some wire fencing to protect the day lilies in area E. I was watering the sod this morning and while dragging the hose around I knocked a few flowers off of the stems. The day lily flowers are very delicate, so putting in the fencing will give a nice edge to hold them back, and also it will serve as a guide for the hose around the plantings.
I also picked up a metal trellis for the sand cherry. The wind and rain has battered it pretty good, and it's leaning precariously off to the side. I tied it gently to the trellis to give it some support.
I also picked up a pair of hedge clippers so I can trim the bushes in the front yard, primarily in area D where my windows are being blocked. Added to that some weed killer so as I tackle the back yard I can try to get control over some of the weeds. I won't be able to really get to the back yard until Sunday, since I'm going out of town for a wedding. But the weather is supposed to be nice enough and it's not supposed to rain.
End of post.
Tuesday, July 01, 2008
Debt Free... Almost
Yesterday I decided to become debt free, except for the mortgage. Lately, I've been struggling with credit card usage, and I've started to live beyond my means. It seems like money burns a hole in my pocket, and I for a while there, I didn't care. Once I made the decision to start spending money, to use the credit cards with abandon, I just stuck my head in the sand and my hand out, holding the credit card.
I think that partly this began back in February, when I purchased a new computer, then clothes, then more clothes. The next major purchase was the sump pump, then the landscaping materials. Most of this money has been coming out of my contingency fund.
Just a few days ago, I found myself with a balance of over $2,200 on one credit card, and no earthly idea how that was to be paid off. By juggling a few things, I was able to pay off about $500, and then I incurred some additional charges that brought the total back up to $1,900. I had no place else to go for money except back to the CF. I didn't want to do that.
But I did it anyway. Here's the deal: in addition to this $1,900 on my "everyday" credit card, I also have about $2,500 on a Best Buy account at 0% interest, which expires next spring. I have been diligently saving money every month so I have the money to pay it off when the time comes. It wasn't enough yet to pay it off, but it grew to a nice chunk of change. So I decided to pool that money, along with money from my "Dream" account to help pay off the credit cards. I made up the difference from my contingency fund, essentially draining it down to exactly $10,000. It's really funny how the numbers worked out that way.
So I sit at this point, with a $10K CF, debt free, and essentially at the starting line. I am planning to reevaluate my budget now that I don't have credit card payments to make, or money to set aside to pay off credit cards in the future. I think being debt free right now is more important to me than earning interest, or borrowing money at 0%. I really do need to address my spending habits, but I think I'm in a better position to do so now. It feels like starting over.
Right now, in terms of discretionary spending, I need to figure out how the $150 in my checking account is going to get me to my next paycheck in two weeks, especially in light of the fact that I have an out-of-town wedding to attend this weekend.
