Debt $ense

Now that I’ve got a few hundred dollars stashed in my ING Direct account, I decided it was time to reduce the amount I put into my pinch-point savings from $50 a week to $25 a week. $15 of the difference is going toward my CC payment; the other $10 is going to ING Direct.

I also set up three subaccounts with ING: House, vacation and car. The house account gets $5 a week, the vacation account gets $15 a week and the car account gets $50 a week. That leaves $5 a week from my deposit to stay in the main account. Once my CC is paid off (February is my best guess), I’ll adjust the amounts as I start putting the bulk of that money into savings.

I just went in to update my electronic bill payments. It took less than five minutes to adjust my rent payment for the higher rent starting next month, kill my Adelphia payment because I don’t use their services and increase my weekly CC payment. And I don’t need to worry about making sure bills are in on time because the bank sends it automatically.

The only problem with rolling coins is that if you aren’t spending much money, you don’t have much change. I haven’t been able to get enough coins for a roll in a few weeks now, and it’s frustrating. But I have saved a bunch during the last week, and I’m hoping I’ll have enough tonight to get a roll or two, even if it’s just pennies.

In other news, my birthday weekend went well, even if part of it was at work. I now have a working toaster oven, thanks to my parents. They gave me a Target gift card for twice as much as I needed, so I took the chance to stock up on shampoo, conditioner and Gatorade, plus pick up a reusable drink bottle for my post-workout soy protein shakes. Since I have plenty of soy powder, the shakes should not only help me eat better and recover better from my runs, they’ll also fill me up for minimal cost and cool me down. (Milk, powder and frozen fruit mixed in a blender)

I enjoyed my meal out yesterday, and was so full from the appetizer that I brought most of the entree home, giving me lunch and dinner today. So that was a nice savings there. I still have most of the meals I froze at the begining of May still in my freezer, plus that pork loin is in there as well. Since I got a larger toaster oven, it will be big enough to cook the pork, which will save on the electric bill. It cooks remarkably quickly, probably because it’s a convection oven. (Well, everything but toast. That it does slowly.)

My dentist appointment is tomorrow, so I’ll find out what the damage is going to be there. It’s going to send my CC balance up again for several weeks until I pay it off from money that normally goes to my pinch-point account, but by the end of August I should be back on track.

Oh, and I have one gift card still unused (book store), one in the mail (craft store) and at least two presents that haven’t arrived yet. (I know one’s not a gift card, but I’m not sure about the other.) So I still have a couple of small splurges left from my birthday, and am thinking of ways I can use them to help me in my quest to vanquish this debt. More details to come once I know the final tally…

The good news is I bought new running sneakers today and saved more than $20 on them. The bad news is that still meant shelling out $87. And don’t even think about new off-the-shelf orthotics - they would have been another $52, and that’s with the 20 percent discount.

On the plus side, the store manager gave me a “rain check” for the discount, so I can still save the $13 when I buy them. And he was very helpful tracking down the right size once we figured out which sneaker was the best one. (It also happened to be the least-expensive one I tried on, which was nice.)

I’m going to try a sturdier brand of the cheap orthotics (the ones in the grocery store pharmacy) and see how those work. If they’re not holding up well under my higher milage, I might have to postpone increasing my weekly payment another paycheck and use the $40 to buy the better ones.

I just have to keep reminding myself that this will save me money in doctor’s bills down the road, both by preventing injuries and by helping me lose weight, something my doctor thinks will mitigate another health issue. But it’s stinging now.

Usually I post about my big goals. But I have a few mini-goals, like the running sneakers, that I need to stash money for.

- Buying iLife for my laptop so I can get iWeb: $66
- Paying my fine at the library (books are returned) so I can check books out again: $10
- Replacing my current running sneakers (not adding a second pair, which is Saturday’s trip) this summer: $105 (hopefully $75 if I can find a discount online)

I’m trying to get in the habit of taking this money out of my spending money, rather than my pinch-point account, which I’ve managed to do with the first pair of sneakers.

I expect to need iLife in seven pay periods, so I should be stashing $10 for that. The library fine is getting paid next paycheck. Sneakers are 10 paychecks, which is $10 for that. So of my $100 every two weeks, $20 is spoken for already. That’s going to pinch some. But I need to get in the habit of setting spending money aside for the little big things so I have the money available in savings for the really big things.

I just went into my bank account online to see how tight my cash flow was going to be this month. I thought I would have to skip a weekly CC payment to cover some of my extra expenses because of the dental bills and some other unexpected costs, but it looks like I’ll make it through with exactly enough. I have $53 and change in my account now, and I’ll have $53 and change at the end of the month. I won’t put any money in my pinch-point account, but I’d rather do that then skip a CC payment, at least short-term.

My next dentist appointment is May 30, so I have a little bit of wiggle room on that. June’s also going to be tight, but I can make it work. My birthday’s the end of this month, and one family member usually includes a dollar for every year, so that gives me a little extra cash.

My other goal is to save enough from my weekly spending money to still put at least $75 toward an extra CC payment at the end of the month. I’ve got $32 already, plus what’s in my change jar at home (probably $15-$20). I’m also hoping to get the prize at work, though I might have to split it with the photographer. (Half of $50 is better than all of nothing, and with his help, I think it could be really cool.) I’m also going to check out the consignment stores nearby this weekend when I’m up that way at the book fair and see if I can convert some of my old clothes (some even with tags) into cash by the end of the month.

I’m also planning to stash at least $30 for running sneakers out of the next two paychecks. That gets me halfway there, plus I asked for a gift card to the store for my birthday.

I talked to the dentist yesterday when I was in to have the first root canal finished and she said it was OK to wait until late summer to have the second one done. The second tooth is going to be very fragile once the root canal is done, so I can’t afford to wait at all on the crown. Since I currently can barely afford one root canal and crown, I figured I’d see if waiting was an option. Fortunately, it is.
By August or September, I should have enough saved up, either from my regular savings or from extra income, that I can avoid putting any of the dental work on my CC. *crosses fingers*

Now I just need to call the dentist today to set up the appointment for the first crown.

This evening I spent a few hours cooking the food I bought Thursday night.

I ended up with 13 servings of chicken cacciatore and 17 of the sausage, veggie and pasta mix. Oh yes, and I still have one bag (three pounds) of chicken in my freezer. So that’s 30 meals (not counting the one I had for dinner) for about $15. It’s tough to beat 50 cents a meal.

Not only that, I still have plenty of food in the fridge for wraps during the next few days, plus eggs and bread for breakfast. So hopefully my May grocery money can go toward other things, like paying for my root canals.

I had the first one started today, and I go back in a week for them to finish it. Two weeks later, I get the second one, which the dentist hopes to finish that day. The first one was $200, but they only had me pay $100 while they see what my insurance will cover. (Two years ago, I only had to pay $141.)

Meanwhile, I got a statement of benefits from my dental insurance indicating my dentist can charge me $30 for my last appointment, basically because of X-rays that weren’t covered. *sigh* At least my dentist hasn’t actually sent the bill yet. Maybe they’ll hold off on that for a few weeks.

So I’m saving money on food, but since anniversary presents for my parents and grandparents drained my pinch-point account, all the savings will go toward my dentist(s) instead of paying down my credit card. *sigh* At least I got the interest rate lower.

I realized that after posting about setting my specific, detailed financial goals in my Latte Factor post, I probably should actually, you know, post them. I am glad I waited, though, because my first goal has changed after talking with my CC company this morning. Here they are:

1. I will pay off my credit card by January 31, 2007.

2. I will continue my 6 percent contributions to my 401(k). In February 2007, I will increase my contribution to 12 percent, and continue to increase it by 1 percent each month until I hit the limit of 20 percent in October 2007. I will continue that 20 percent contribution until I retire.

3. Beginning in April 2007, I will put $175 a week into a high-yield savings account designated to replace my car so I can pay cash for a used Hyundai Tucson in December 2008.

4. On July 1, 2008, I will open a Roth IRA and contribute $200 a month. Each year I will increase that monthly payment by $50 until I max out my annual contribution. I will then contribute the maximum each year until I retire.

5. In December 2007, I will put $200 a month into a high-yield savings account for a house fund. By May 28, 2010, I will put at least 20 percent down on a house in the city with at least three bedrooms, a yard small enough for a push mower, a master bathroom with room to expand for a whirlpool tub in the future and hardwood floors.

6. In May 2007, I will start putting $25 a week into a travel fund for trips with friends. For my 30th birthday, I will use that money to spend two weeks riding trains around North America and meeting interesting people.

I will revist these goals on July 1, when some work-related things have shaken out, and every six months thereafter to make sure they still align with my situation and goals.

I spent sometime at the library today reading David Bach’s “Smart Women Finish Rich.” There were a few sections I only skimmed, but overall I really enjoyed it. I had a pretty good idea what his “Latte Factor” was just from reading other PF blog posts mentioning it, but reading his explanation did make me more determined to cut unnecessary spending from my life.

The part that worked better for me was his values ladder, which was a useful exercise. I realized seeing new places and learning new things is at the top of my ladder, which explains why I’ve been thinking so much about traveling with like-minded friends during the last few years. Knowing that will help with my “Latte Factor” because I can now think “would I rather buy this or be that much closer to the train trip?” I think more often than not, I’ll be putting stuff back on the shelves.

Another part that I liked was writing down extremely specific goals for my financial future. I have a list of six that I’m going to print and tape to my bathroom mirror. I’m also going to tape it to the inside of my money holder so when I’m tempted to spend, I can be reminded of my goals. Just thinking about what I wanted and when I wanted it by was a useful exercise.

I ended up pushing a few goals back a few years once I started writing them out and doing the math, but I will revist them in July after my annual review. At that point, some work-related items should have shaken out and I’ll have a better sense of what the opportunities are there, so I can adjust accordingly. I also added a few goals I had never really thought about besides the vague dreams. Now they will happen, instead of remaining wisps of ideas.