Debt $ense

I sat down last night and figured out where I stand as the end of May approaches. Thanks to the beating my 401(k) has taken the last week or two, I’m not as good as I should be, but my overall net worth is up to -$5,662. If my 401(k) bounces back to where it was, I’ll be around -$5K, which isn’t bad.

My credit card balance continues to drop. Tomorrow’s to-do list includes bringing my cable modem back to Adelphia and canceling service, so that will let me increase my weekly payments. I’ll also find out Friday how the adjusted withholding affects my take-home pay. So next week’s payment should be up significantly.

My goal for June is to get my net worth up to about -$3,500, though that depends some on how my 401(k) does. That will get my CC balance down under $6,500.

Beyond Broke posted about eating out in groups and the always-tricky part of the meal - paying for it. I chimed in with a comment, which prompted another post, which inspired me to post an expanded discourse.

If you missed the original post: My friends and I, when we get together, often eat out. Usually there are eight or nine of us. At the end of the meal, one person always pulls out her calculator and does the hard work of figuring out who owes what. One woman, who only joins us occasionally, tends to complain about the time it takes and always asks why we can’t just split it evenly.

As I told Beyond Broke, one time a member of the group (I now forget who) spoke up and said she didn’t want to feel constrained from ordering something expensive that she could afford when she knew others in the group might be on a tight budget. That shut the complainer up, at least for the moment.

I wasn’t the one who spoke up, but I’m glad somebody did. And I think it was all the more effective coming from somebody who presented it not as her being worried about money, but as her being considerate for others who were worried about money.

Let’s face it: it’s tough to be the one who says, “Sorry, but I can’t afford that.” That’s especially true in a public situation, like eating out. A lot of times it’s easy to order an inexpensive meal without it being obvious, but that doesn’t do any good if the group decides on an even split.

And on the flip side, there are times where I’ve saved up enough money to splurge on a drink with dinner, or a more-expensive entree. I don’t want to feel guilty about ordering it because I know others are watching their budget.

I’m always grateful to my friend with the calculator for going through the trouble of figuring it all out for us. I only wish everybody appreciated people like her.

I’m actually choosing to put something on my credit card - and think it makes sense financially. No, I’m not nuts.

I have my dentist appointment next week, and normally payment is due that day. I’m going to put it on my CC, then funnel my weekly pinch-point account money ($50) toward my CC until it’s paid off. (Two months, I think.) That allows me to continue making my same weekly payments to the CC to pay off the existing balance, and since the rate is so low, the interest cost will be minimal. It also allows me to remain on good terms with my dentist, who would object to payments being strung out over that long a time period.

In the end, I think it will cost about $3 in interest, and greatly reduce the complexity of paying the money owed. Once that’s done, I can stash enough money for the next tooth and hopefully get that done in September - and pay cash.

The bad news is they’re not using my entry in the design contest. The good news is it’s because of lack of time (which my boss said is his fault); he liked the idea very much and wants to use it next year. So I might not be getting the entire $50, but I’ll get at least $25 of it.

Also, this is something way outside my usual skills at work, so it’s a good thing in terms of showcasing my usefulness in other areas. That should help long-term on increasing my income.

I also checked my printer today and it is part of the class action, so I’ll be sending that paperwork off this week to get my $25 from there.

All in all, not a bad week for extra income.

In order to run (essential for my current and future health), I need to wear orthotics in my sneakers. Almost 15 years ago, I got a custom pair because I was running high school track. I still have that pair, and they still fit my feet. But they’re in pretty sad shape, and replacing them will cost a couple hundred dollars.

A few months back, I tried the Dr. Scholls off-the-rack orthotics in my non-running sneakers, and they worked well. So when I started running again last month, I tried them in my sneakers to see if they were an acceptable substitute. So far, they’ve worked well, though I should replace them in the next month or so.

So while I was at the store yesterday, I priced them. When I go to the NB store Saturday, I’ll look at what they have available. The coupon I got is for 20 percent off the entire purchase, so depending on the price, it might make sense to buy the pair for my new running sneakers there. At least by checking other sources first, I’ll know if it’s a good deal.

I’m sure a few of you are wondering, questioning even, the wisdom of replacing something that served for 15 years with less-expensive versions that last about six months. In some ways, it sounds penny-wise and pound-foolish.

Yes and no. The custom ones would run me about $200, and insurance isn’t likely to cover much. If I can get a doctor to OK them as medically necessary, I can probably use FSA money, but I didn’t fund an FSA this year. After getting burned on the dental work, I’ve learned my lesson and will fund one next year. At that point, if I make it through most of the year without major expenses, I can use the money to get one or two pair made, which hopefully will last another 10-15 years. But until then I don’t have the money for the big expense.

Using the less-expensive versions gives me some breathing room. Also, once I’m running at the level I expect to stay at (35-40 miles a week), I’ll have a good estimate for how long the off-the-shelf ones will last and can better evaluate the costs over 10 years.

The self-eval was in my e-mail today; I have to finish it by Thursday. Fortunately for me, I started working on it a week or so ago. Looks like that’s tonight’s project…

I should get a self-evaluation this week to fill out for my annual review, which likely will be the end of next week or the beginning of the week after. Once my review’s done, I’ll know what my raise will be, effective July 1, and can adjust my debt repayment plan accordingly. That’s going to make the biggest difference in my chances to pay my CC off by the end of the year, so I’m a little antsy waiting to hear.

July 1 also will be when I update my financial goals, rebalance my 401(k) and generally get my financial house in order for the upcoming year. Once I find out what that raise will be, I’ll be able to start the planning process. Expect blog postings to pick up a bit during that time.

I was online today and - procrastinating as always - decided to see what sort of home loan programs my state housing department has for first-time buyers.

They’re actually pretty good, and I not only qualify for all of them, but also would have a good range to work within given home prices in the area. And one of the approved mortgage brokers is a guy I know through various activities who was on my list of possible brokers.

So I’m rethinking my plans and considering whether I should plan to buy at the end of next year - after a year of saving. It would mean waiting three years, not two, to replace my car, possibly more. But it also would let me start building equity, which will be a net savings in the long run.

I’ve sent off for an information package, and am tracking their schedule of homeownership classes to find one in the area on a night I’m off (or could schedule off, since they plan several months in advance). I’m also going to start using the city’s GIS service online to locate neighborhoods within my price range, plus track homes in the real estate sections we run.

I had been planning to wait until I had 20 percent down, but the more I’ve been reading, the more it seems like if I can get a fixed-rate mortgage, it makes sense to use one of the programs to buy with less down and funnel the money I’m spending on rent into a mortgage so I’m a couple years ahead on building equity. Once I read the program packet, I’ll have a better idea of my options and can focus on a detailed plan.

I’m getting frustrated looking for tips on reducing car insurance costs. Does anybody know a place that makes recommendations about how much coverage you should have?

I’ve been with the same insurance company for the last four years, and I’ve decided to shop around during the next several weeks to see if I can get a better rate on my insurance. I also want to make sure my renter’s insurance is replacement value, not ACV, which I think is the case now.

I got a quote from AAA today, and I’m going to check at their office next weekend when I’m picking up running sneakers. I also found two independent insurance agencies in the area, so I’m going to check with them this week, then get an estimate from on what it will cost to renew my current policy for another year. I’m hoping that renters and auto combined will cost less than $350. (Yes, my car’s old and beat-up.)

But as I’ve looked, I find the same set of tips on pretty much every site. None of them addresses how much insurance I should have, and what’s overkill. If I could find such a site, it would be a huge help. Any suggestions?

I’ve been reading posts and articles during the last few weeks that talk about how if consumers don’t have enough flexibility in their budgets to handle rising gas prices, they have bigger problems. They’re probably right, but not in quite the way they mean.

They’re saying people’s budgets should have enough “give” to handle increasing costs, and if not, they’re living above their means. That’s fine, but gas isn’t the only thing going up. Higher energy prices mean utililty bills are higher. Transportation of goods costs more, which drives up those prices. Meanwhile, healthcare and prescription costs are increasing. If everything is going up - except your income - there’s probably not enough “give” in your budget.

Now if you have lots of discretionary spending, you can make cuts there, though you’ll likely notice them. If, like me, your spending has been cut way down to pay off debt, the gas prices start to pinch a bit more. I don’t have a long commute (1.5 to 2 miles, depending on where I park). But I travel 75 miles round trip to church, and have to make the trip twice a week if I go to choir rehearsal. Those two trips cost me almost $15 in gas each week now. So I’ve been choosing one or the other each weekend, and sometimes skipping both.

Fortunately, we’ve had unseasonably cool weather, which is keeping my AC off and my electric bill down. And my company’s insurance plans run on the calendar year, so I won’t get hit with those increases until January, when I should have more flexibility because my CC will be paid off. But what if you work for a place that uses a July 1-June 30 year for benefits, like local and state government?

And at the store, I’ve noticed produce prices aren’t as good as usual. It’s almost impossible for me to find apples on sale for 99 cents a pound anymore - I’m happy if they’re $1.29. Other fruit is in a similar boat, and I assume it’s happening across the board. (I’m just not as sensitive to prices in other areas of the grocery store.)

Yes, we are in trouble. A little squeeze is something most of us can absorb. When every household bill sees that little squeeze, suddenly it feels awfully big.