Much better

I checked off one of my goals. I've refinanced my auto loan.

My previous auto loan had an interest rate of 14%, which was killing me. My monthly payments were $308 (for a 5 year loan), and too much of that was just interest.

Here's what I did. USAA would give me a loan for 6.434%, A huge improvement. But, they wouldn't cover the whole amount, since I owe more than the car is worth. But, they were willing to extend a personal loan for the remainder (at 12% interest).

I know what you're thinking. "Aren't you just getting further into debt?". Here's how bad my rate was. The monthly payment for the personal loan AND the new auto loan are still less than my current auto loan, and the total interest paid is much lower.

Not only that, but I'm reenlisting very soon, and I plan to use that money to pay off the two personal loans. That means that I won't be paying most of the larger interest bearing loan, and my auto loan payments go to about $190 for a 4 year plan. That's one year less at minimum payments, and I'm still saving a huge amount of money.

So, this adjusts my amounts owed. This will be reflected at the beginning of next month.

Also, this highlights the importance of READING WHAT YOU SIGN! When I received the documents to sign, I noticed that the interest rate was 7.434%. They had failed to include the 1% discount for applying online. I called them, and requested they change it. That extra 5 minutes to call and check saved me a good amount of money.

Automating my banking

Following advice of some such as J.D. from Get Rich Slowly, I'm going to try to automate as much of my monthly issues as I can. I'm doing this a few different ways.

Direct Deposit - Automating my savings
I've turned in a change form for my direct deposit. Previously, it went into my online checking account at HSBC, and I would transfer payments to where I needed them to go. Now, I'm going to automate it. From every paycheck, $125 goes into my emergency fund savings account, and $209 goes into my IRA savings account. The remainder goes into my USAA checking account, which has a rewards debit card attached.

In addition, I have already set up for myself, and will set up for my wife (as soon as the account authorization finishes) an IRA account, to which $50/month will be drawn directly from the IRA savings account in a dollar cost averaging program, which is a good plan in times with price fluctuations, such as now.

So, with 2 paychecks per month, that means that the $250/month into my emergency fund, and the $418/month into my IRA savings account will happen automatically. Plus, we will then start making contributions to our IRAs at $50/month each. Once we're a little bit better off savings wise, we might set up another dollar cost averaging plan for a different mutual fund.

Automated payments - consolidating bills, and earning money for doing it
I've opened up a rewards credit card at USAA. This does a few things for me: It makes my debt/credit ratio much better, and it allows me to consolidate my bills. Many of my bills can be paid via credit card, and most of those can be set up to automatically charge the card. Once the card is charged, I can pay the balance on the card off immediately. The other upside to this is that it's a rewards card. I get cash back (only 1%, but it's better than nothing) just for paying my bills!

Not only that, but the card actually comes with checks that can be written, and the checks are treated as credit card transactions, for no extra fee! That's very easily abused, but I plan to use it for one purpose only: Rent. My apartment requires checks or money orders. This way, I can still earn cash back on my rent.

Only a few bills remain that have to be paid from a checking/savings account:

• My power bill will do credit card payments, but charges a fee. Not worth it. Maybe the credit card checks will help with that one.
  
• My auto and signature loans will only take bank to bank transfers. I'll have to pay that myself.

If setting up automatic payment plans from the loans didn't freak me out so much, I'd set them up too, but I just don't like the idea. I review my finances regularly, and don't expect to accidentally miss a payment.

January Update

Goals Update

First, an update, then some quick new items.

• Review
• Financial
• Credit card debt totaling $1,079.19 (down $335.41) (goal $0)
• Loan debt totaling $2,142.78 (no change) (goal $250)
• Car loan totaling $10,277.92 (no change) (goal $5,485.41)
• Emergency fund totaling $1,631.88(up about $377.81) (goal $7,500)
• Roth IRA contributions to date: In savings, $627 (up $209) (goal $5000)
• Charitable
• Total hours volunteered: 0
• Financial review
  
• Use some of my wife's bonus to pay off credit card
• I've been directing extra cash to the credit card, trying to bring down the balance so my debt/credit ratio improves. But, once my wife passes her APFT, as I'm sure she will, she has agreed to use some of her bonus to pay off the card. From that point on, the credit cards will be used only on a "deadbeat" basis (I will pay off the card before interest charges are assessed)
• Deposit $2000 of My wife's bonus to savings account
• My wife has agreed that $2000 will go into the emergency fund, and $1000 into her IRA. The entire remainder, after the card and the savings, will be $3500. It's hers to do with whatever she wants. She's been talking about a Wii and a new tattoo. She's definitely earned the money.
• Deposit at least $250 to savings account from pay
• This was done
  
• Deposit at least $418 to Roth IRA
• This was done
  
• Educational/Professional review
  
• Submit AMT BOR packet
• No change so far
• Assemble and submit E-6 packet
• No change so far
• Send off and follow up on life credit packet for BS
• I've sent off the forms to former employers. I hope they'll respond in time.
• I have also found an alternate location for my clinicals. If everything gets into place, I should be able to do those things I couldn't do at my employers at another facility.
• Physical review
  
• Start training for marathon on January 15th
• Started, and I've been doing some of the planned running, but not all of it. My wife has decided that it's not the right time for her to do a full marathon in May, due to her school workload, so we've keyed it down to a half, and we'll plan on doing the Seattle full marathon in November. Plus, it's way too cold to be running 10+ miles a day this time of year.
• Charitable review
  
• Volunteer at least one day to a charitable cause.
• I've turned in the paperwork, and interviewed for a volunteer position at planned parenthood. It will be 3 hours a week, as a clinic assistant. Nothing glamorous, but I feel it will be fulfilling. I expect to hear back soon.

February goals

• Financial
• Pay off credit card with wife's bonus
• Deposit at least $250 into my emergency fund from my paycheck
• +$2000 from my wife's bonus
  
• Deposit at least $418 into our IRAs
• +$1000 for my wife's IRA from her bonus
• Save at least half of our tax return
• Increase my payments on the signature loan to $150/month instead of the $122/month
• Educational/Professional
• Follow up on board of registry application with the other person.
• Follow up on the life experience credit forms
• Follow up on the alternate clinical site
• Assemble and submit E-6 packet
• Physical
• Continue training for the half marathon
• Charitable
• Begin working volunteer position if accepted, apply elsewhere if not.