Yesterday I found out that instead of applying my last "big" payment to the smallest of my student loans, it took the payment and split it up amongst all four of the smaller ones that encompass what is my Sallie Mae loan. Which is all fine and good, except for that payment could have almost completely eliminated one of the smaller (and higher interest) ones.
So I did some calling. Turns out that if I split all of my loans into seperate billing groups, I can pick which one I want my extra payments to go to each month, while the others will just get my auto debit minimum payment.
Now I have a debt snowball WITHIN a debt snowball. Its gonna be HUGE!
I'm actually quite excited because I was worried that I would start to lose motiviation if I didn't progress as quickly. I mean, this loan is three times as big as my biggest credit card. It was just a loooong straight haul. Now I feel like its more manageable, and I'll be able to see definate progress over the next few months. I like small steps...it makes me feel like I've accomplished something. :-)
Tuesday, December 9, 2008
Tuesday, November 25, 2008
If you don't, no one will..
I was having a discussion with my friend Theresa today about many things, among which is that I'm coming down with some strange cold. Fabulous. Anyways, she told me that I needed to start taking care of myself, because "if you dont, no one else will."
This got me to thinking about something thats been on my mind alot lately: the balance between paying off my debt and the rest of my life. Gazelle intensity in moderation if you will.
Other blogs I've read have had people talking about using their moderation to spend time with their kids, take vacations, etc, so as not to waste time with them. My best friend is getting married next year, and I've already started saving for the dress, plane tickets, bachelorette party, etc. so that I have adequate funds available. If I can plan for things, usually I'm okay. I went to see her this past weekend, and set aside the money so I didn't have to worry.
But in the short term, I pretty much have no life. Not that I'm a terribly social person as it is (I thoroughly enjoy my "ME" time), but I hardly go out at all. Most days I feel okay, but I'm questioning, am I really doing the right thing by backing away from everything? Do my friends really understand what I'm doing and why?
Another example...I've never been a huge cooker, and have pretty consistently eaten frozen meals for lunch. Well lately I've traded in the decent ones for the $.92 Michelina's and ramen noodles. And I've been noticing that I don't get full after I eat and I'm constantly hungry and therefore cranky. As it is, I rarely have food in my house because, besides the fact that I hate to grocery shop, I put it off so long because I don't want to go spend money. Even my dog is making sacrifices...we've switched to a dog food that is significantly cheaper but not as wholesome. Those are just a few examples.
Have I moved past gazelle intensity to become gazelle obsessed?
I have a feeling I need to find more balance in my life. Because if I dont find it, no one will find it for me.
This got me to thinking about something thats been on my mind alot lately: the balance between paying off my debt and the rest of my life. Gazelle intensity in moderation if you will.
Other blogs I've read have had people talking about using their moderation to spend time with their kids, take vacations, etc, so as not to waste time with them. My best friend is getting married next year, and I've already started saving for the dress, plane tickets, bachelorette party, etc. so that I have adequate funds available. If I can plan for things, usually I'm okay. I went to see her this past weekend, and set aside the money so I didn't have to worry.
But in the short term, I pretty much have no life. Not that I'm a terribly social person as it is (I thoroughly enjoy my "ME" time), but I hardly go out at all. Most days I feel okay, but I'm questioning, am I really doing the right thing by backing away from everything? Do my friends really understand what I'm doing and why?
Another example...I've never been a huge cooker, and have pretty consistently eaten frozen meals for lunch. Well lately I've traded in the decent ones for the $.92 Michelina's and ramen noodles. And I've been noticing that I don't get full after I eat and I'm constantly hungry and therefore cranky. As it is, I rarely have food in my house because, besides the fact that I hate to grocery shop, I put it off so long because I don't want to go spend money. Even my dog is making sacrifices...we've switched to a dog food that is significantly cheaper but not as wholesome. Those are just a few examples.
Have I moved past gazelle intensity to become gazelle obsessed?
I have a feeling I need to find more balance in my life. Because if I dont find it, no one will find it for me.
Wednesday, November 19, 2008
The Chronicles of Amy: A Novel
I am on a journey towards debt freedom. This is my story.
I had been tossing around the idea of starting a blog for a little while now, as a way to recount my struggles and triumphs through this time of my life. And then I read today on a random blog somehwere that people who share their getting-out-of-debt experiences with others are 90% more likely to succeed. Sealed the deal for me.
So we'll see how this blog thing goes for a while. Whether anyone else ever reads said blog, I really don't care, but I need to have a place to talk about everything.
The day I consider the official start date for my journey is 6.15.08, the day of my first Financial Peace University class, the day Dave Ramsey changed my life. But that only represents the time in which I've had a plan and a purpose. Before that I was clueless and directionless.
I think I first realized what a mess I was in sometime in May 2007. At that point I had just moved to Texas for the second time, and was spending the summer as an engineering co-op before my last semester of undergrad. I had gotten out of a three year relationship a few months prior, and I was a recovering emotional disaster. (Which wreaked havoc on numerous parts of my life, financial and otherwise, but thats a different story for a different day.)
When I moved down to Texas, I had a bank account that was nearly empty, even though I worked retail part-time during school. I had a credit card that was almost maxed out (I actually went over the limit for about a day.). I remember a day of terror looking at my bank accounts and credit card and wondering how on God's great earth I was going to survive until I got paid in two weeks. Then a revelation: My Target card (which subsequently became a Target Visa card...oh joy). If I just went to Target groceries and necessities for my apartment, I would be okay until payday. Genuis.
Around that same time, my mom started harassing me about making a budget and not spending too much. Figuring out exactly what I needed for the upcoming semester and save it. So I did. (Although my idea of a budget was night and day from what it is now, I got the main purpose anyways.) And I was shocked to find out -- I wasn't going to make enough that summer to cover me until graduation. Not even close. And such began my financial anxiety. I can't really say that I changed my spending habits much either...I just freaked out about it alot more. I would have trouble sleeping at night (when I slept at all...my last semester of college reminds me alot of my life now...never stopping to rest.) And began using my Target card. Its not an exaggeration to say that by December, I was living off of my credit card, using it to pay for all my expenses, and using my paycheck to cover things I couldn't charge (rent, riding, electric bill, and minimum payments). I seriously considered cash advances, but thank goodness it never came to that. Amidst all of this, I decided it would be a grand idea to get another credit card...although I only ever used it for balance transfers. 3.9% interest is way better than 25%+. Somehow I always found the money to scrape by, even while living like I shouldn't, well outside my means. But I was dumb. I wanted to enjoy my last semester of college, wanted to make good memories and experience things, and I did, but at the expense of my finance.
Roll to February 2008. Graduated. Moved to Texas. Started new job. Finally serious...I'm gonna pay off my debt. Oh, and did I mention that a bought a brand new 2008 VW Jetta? Yeah. No down payment. Awesomely smart idea on my part really. See, I could have just taken the car I had been driving since my junior year in high school, which my parents told me that I could basically keep. Free. But I had two reasons for not doing this. One had to do with the fact that I wanted my brother to be able to have a car of his own for his senior year of HS, because I had mine and I thought it was fair. The other...much more selfish and much more stupid. Hey, I just graduated college. I'm an engineer. I have a salary. I can afford it. I deserve it. (I can hear Dave in my ear as I'm typing telling me that I was wrong...and I know that now. Really, the car thing is the only thing I'd change.)
So I made a budget. Or I tried to. I still didn't quite get it, and I definately didn't stick to it but I was making steps. The most important thing I did was start to track my spending...where all my money was going each month. I was making payments on my credit cards, throwing random money at them without much of a plan except "Pay them off." I set up a spreadsheet to track my progress. And then I sat down and added up all my debt: four credit cards, my car, two student loans. I would say that I shit a brick when I saw the total, but it was more like a small builiding. Over four-and-a-half years, I had racked up just shy of $80,000 in debt. This was April.
I actually managed to pay off my Kohl's and Discover (the balance transfer card) during my pre-Dave months. I was getting serious about cutting my spending and thinking about finance. I talked about it with friends. I was almost relieved that others were struggling with debt too, at least I wasn't alone. I wasn't the weird one with all the debt. I was normal. It was about that time that my good friends Bryan and Joanna started telling me about their experiences. They were debt free, they had no credit cards and a horse and were saving for a house. I was jealous. There was a class starting at their church, check out Dave's website. Thank goodness they were persistent. I really had no desire to go to a class of any kind, much less a financial class. (I am an engineer, and I have been gifted with the ability to be very book smart...but I took a business minor in college, and I HATED just about every class. For some reason, finance hadn't clickced for me yet.) But I figured...what else do I have to lose?
And thats how I "met" Dave Ramsey. Financially, things just started to click. Dave made sense to me. Dave made it ::gasp:: FUN. I had a plan. It was going to work. I could do it. I understood how to do a budget, finally, and how to fit it in my lfie. I remember tears streaming down my face during the dumping debt lesson. I finally had hope. I know that FPU is supposed to lead you to financial peace, but really...I gained what I had always considered financial peace by attending FPU. I can't imagine what it will be like when I'm debt free. (I think about that day alot, its one of my favorite daydreams.)
July was my first zero based budget. I decided I needed a second job. I procrasinated on that for a while, because while I knew it was the right thing to do, I was enjoying my post-college freedom. I applied to a few places, didn't hear anything back. So one day I decided to go around and collect applications, and get serious about this second job thing. The first place I walked into was Texas Roadhouse, and I walked out with a job, even though I said my whole life I'd never wait tables.
I started working at Texas Roadhouse, which I affectionately refer to as "The Roadho" on September 3. This has been the biggest help towards my debt snowball. On 9.30.08 I paid off that pesky Target card. This Monday, 11.17.08, I mailed a check to pay off my other credit card. Right now I work five days a week. Aside from the financial benefits, I acutally enjoy working there. I've had to give up alot of free time, but I feel a fierce sense of pride in what I'm accomplishing. As of 11.1.08, my debt is just over $61,000.
Optimistically, I want to be out of debt before 2010 rolls in. Realisticially, I feel like late spring 2010 will bring me my freedom. Then I can move on to Baby Step 3 and start saving for a horse. (Side note: That is my ultimate goal. I started riding three years ago, and it is my grand passion. I love riding, and even though my snowball would go faster without it, it is the one thing I keep for myself. I figure if I'm going to work two jobs, I better still get to do what I love. I know that Dave would tell me to give it up, but a girl has got to stay sane.)
So thats my story.
One last thing. My blog title. Awhile back, I heard the song "Chicken Fried" by Zac Brown Band. (My life has a permanent soundtrack--I listen to music all the time.) One of their lyrics caught my attention:
That made me think...I agree with them for all about the dollar sign. I think the dollar sign on my peace of mind is somewhere around $61,000. ;-)
I had been tossing around the idea of starting a blog for a little while now, as a way to recount my struggles and triumphs through this time of my life. And then I read today on a random blog somehwere that people who share their getting-out-of-debt experiences with others are 90% more likely to succeed. Sealed the deal for me.
So we'll see how this blog thing goes for a while. Whether anyone else ever reads said blog, I really don't care, but I need to have a place to talk about everything.
The day I consider the official start date for my journey is 6.15.08, the day of my first Financial Peace University class, the day Dave Ramsey changed my life. But that only represents the time in which I've had a plan and a purpose. Before that I was clueless and directionless.
I think I first realized what a mess I was in sometime in May 2007. At that point I had just moved to Texas for the second time, and was spending the summer as an engineering co-op before my last semester of undergrad. I had gotten out of a three year relationship a few months prior, and I was a recovering emotional disaster. (Which wreaked havoc on numerous parts of my life, financial and otherwise, but thats a different story for a different day.)
When I moved down to Texas, I had a bank account that was nearly empty, even though I worked retail part-time during school. I had a credit card that was almost maxed out (I actually went over the limit for about a day.). I remember a day of terror looking at my bank accounts and credit card and wondering how on God's great earth I was going to survive until I got paid in two weeks. Then a revelation: My Target card (which subsequently became a Target Visa card...oh joy). If I just went to Target groceries and necessities for my apartment, I would be okay until payday. Genuis.
Around that same time, my mom started harassing me about making a budget and not spending too much. Figuring out exactly what I needed for the upcoming semester and save it. So I did. (Although my idea of a budget was night and day from what it is now, I got the main purpose anyways.) And I was shocked to find out -- I wasn't going to make enough that summer to cover me until graduation. Not even close. And such began my financial anxiety. I can't really say that I changed my spending habits much either...I just freaked out about it alot more. I would have trouble sleeping at night (when I slept at all...my last semester of college reminds me alot of my life now...never stopping to rest.) And began using my Target card. Its not an exaggeration to say that by December, I was living off of my credit card, using it to pay for all my expenses, and using my paycheck to cover things I couldn't charge (rent, riding, electric bill, and minimum payments). I seriously considered cash advances, but thank goodness it never came to that. Amidst all of this, I decided it would be a grand idea to get another credit card...although I only ever used it for balance transfers. 3.9% interest is way better than 25%+. Somehow I always found the money to scrape by, even while living like I shouldn't, well outside my means. But I was dumb. I wanted to enjoy my last semester of college, wanted to make good memories and experience things, and I did, but at the expense of my finance.
Roll to February 2008. Graduated. Moved to Texas. Started new job. Finally serious...I'm gonna pay off my debt. Oh, and did I mention that a bought a brand new 2008 VW Jetta? Yeah. No down payment. Awesomely smart idea on my part really. See, I could have just taken the car I had been driving since my junior year in high school, which my parents told me that I could basically keep. Free. But I had two reasons for not doing this. One had to do with the fact that I wanted my brother to be able to have a car of his own for his senior year of HS, because I had mine and I thought it was fair. The other...much more selfish and much more stupid. Hey, I just graduated college. I'm an engineer. I have a salary. I can afford it. I deserve it. (I can hear Dave in my ear as I'm typing telling me that I was wrong...and I know that now. Really, the car thing is the only thing I'd change.)
So I made a budget. Or I tried to. I still didn't quite get it, and I definately didn't stick to it but I was making steps. The most important thing I did was start to track my spending...where all my money was going each month. I was making payments on my credit cards, throwing random money at them without much of a plan except "Pay them off." I set up a spreadsheet to track my progress. And then I sat down and added up all my debt: four credit cards, my car, two student loans. I would say that I shit a brick when I saw the total, but it was more like a small builiding. Over four-and-a-half years, I had racked up just shy of $80,000 in debt. This was April.
I actually managed to pay off my Kohl's and Discover (the balance transfer card) during my pre-Dave months. I was getting serious about cutting my spending and thinking about finance. I talked about it with friends. I was almost relieved that others were struggling with debt too, at least I wasn't alone. I wasn't the weird one with all the debt. I was normal. It was about that time that my good friends Bryan and Joanna started telling me about their experiences. They were debt free, they had no credit cards and a horse and were saving for a house. I was jealous. There was a class starting at their church, check out Dave's website. Thank goodness they were persistent. I really had no desire to go to a class of any kind, much less a financial class. (I am an engineer, and I have been gifted with the ability to be very book smart...but I took a business minor in college, and I HATED just about every class. For some reason, finance hadn't clickced for me yet.) But I figured...what else do I have to lose?
And thats how I "met" Dave Ramsey. Financially, things just started to click. Dave made sense to me. Dave made it ::gasp:: FUN. I had a plan. It was going to work. I could do it. I understood how to do a budget, finally, and how to fit it in my lfie. I remember tears streaming down my face during the dumping debt lesson. I finally had hope. I know that FPU is supposed to lead you to financial peace, but really...I gained what I had always considered financial peace by attending FPU. I can't imagine what it will be like when I'm debt free. (I think about that day alot, its one of my favorite daydreams.)
July was my first zero based budget. I decided I needed a second job. I procrasinated on that for a while, because while I knew it was the right thing to do, I was enjoying my post-college freedom. I applied to a few places, didn't hear anything back. So one day I decided to go around and collect applications, and get serious about this second job thing. The first place I walked into was Texas Roadhouse, and I walked out with a job, even though I said my whole life I'd never wait tables.
I started working at Texas Roadhouse, which I affectionately refer to as "The Roadho" on September 3. This has been the biggest help towards my debt snowball. On 9.30.08 I paid off that pesky Target card. This Monday, 11.17.08, I mailed a check to pay off my other credit card. Right now I work five days a week. Aside from the financial benefits, I acutally enjoy working there. I've had to give up alot of free time, but I feel a fierce sense of pride in what I'm accomplishing. As of 11.1.08, my debt is just over $61,000.
Optimistically, I want to be out of debt before 2010 rolls in. Realisticially, I feel like late spring 2010 will bring me my freedom. Then I can move on to Baby Step 3 and start saving for a horse. (Side note: That is my ultimate goal. I started riding three years ago, and it is my grand passion. I love riding, and even though my snowball would go faster without it, it is the one thing I keep for myself. I figure if I'm going to work two jobs, I better still get to do what I love. I know that Dave would tell me to give it up, but a girl has got to stay sane.)
So thats my story.
One last thing. My blog title. Awhile back, I heard the song "Chicken Fried" by Zac Brown Band. (My life has a permanent soundtrack--I listen to music all the time.) One of their lyrics caught my attention:
Well its funny how it's the little things in life that mean the most
Not where you live or the car you drive or the price tag on your clothes
There's no dollar sign on a piece of mind, this I've come to know
So if you agree have a drink with me, raise you glasses for a toast
That made me think...I agree with them for all about the dollar sign. I think the dollar sign on my peace of mind is somewhere around $61,000. ;-)
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