April Update

The official monthly update.

Items:

• My wife's bonus finally showed, and things are moving smoothly.
  
• My work union is negotiating a new contract, which will include a raise.
  
• I'm working as hard as I can to get back into school.
  
• I've increased my 401(k) contribution to 5% (3% matched).

Goals Update

• Review
• Financial
• Credit card debt totaling $0 (No change) ("deadbeat" credit card balance isn't counted. That card is paid off every month) (goal $0)
• Loan debt totaling $0 *GOAL REACHED*
  
• Loan debt totaling $0 *GOAL REACHED*
  
• Car loan totaling $18,448.46 (No change)
  
• Emergency fund totaling $7263.76 (up $1,955.04) (goal $7,500)
• Roth IRA contributions to date: In savings, $3590.74 (up $1114.8), invested in DCA plans, $300 (up $100)(goal $5000)
• Charitable
• Total hours volunteered: 21 (goal: 100)
  

My wife's bonus has already been distributed, and all the remainder after savings, investment, and the car down payment are hers, as she so graciously agreed.

The stimulus payment will show up soon. We had a direct deposit refund, so we'll get ours in a short while. Me and my wife had a discussion about what to do with each of our shares ($600 each, but I'm not going to decide what to do with her money.)

My wife has been halfway getting into this frugality thing too. I'm very proud of her. We agreed that half of our money will go to our largest debt (the new car), and the other half can be spent as desired. I'll probably just put mine in my IRA.

Right now, we just need to maintain, and cut costs where we can. I think at some point soon, we might sit down and discuss a monthly budget. I've got enough information from my pay stubs to know about how much I get paid now (paid per hour, and it varies by a bit from paycheck to paycheck.)

March Update

The official monthly update.

First, I did end up buying a new car. I need something reliable, and this one will last me a long time. I plan to make extra payments to get it out of the way quickly though.

Goals Update

• Review
• Financial
• Credit card debt totaling $0 (down $1,000.00) ("deadbeat" credit card balance isn't counted. That card is paid off every month) (goal $0)
• Loan debt totaling $0 (down $2,020) (goal $0) *GOAL REACHED*
  
• Loan debt totaling $0 (down $3,029.58)(goal $0) *GOAL REACHED*
  
• Old car loan totaling $0 (down $7,728.01) (goal $5,485.41)
• New car loan totaling $18,448.46 (up $18,448.46)
  
• Emergency fund totaling $5,268.72 (down $272.82) (goal $7,500)
• Roth IRA contributions to date: In savings, $2475.94 (up $418), invested in DCA plans, $200 (no change)(goal $5000)
• Charitable
• Total hours volunteered: 12
  

Of course, some small changes. I used some money from the emergency fund to pay off the other credit card when they decided to charge interest. I've paid back $500 into the fund so far, plus the regular donation from my paycheck. I still owe another $522.82 back, and I consider that a bill that needs to be paid. At least now, there's not that to worry about.

The car, of course, is new, but I talked about that already. I'll live. The car wasn't that expensive, but I was upside down on the first loan. Gap insurance was a must, and it was exceedingly affordable via USAA.

Other than that, things are going as planned.

Update, just because

Lots of new things have occurred since the last update, so here's a spring update for the beginning of spring.

Goals Update

• Review
• Financial
• Credit card debt totaling $1,000.00 (down $308.83) ("deadbeat" credit card balance isn't counted. That card is paid off every month) (goal $0)
• Loan debt totaling $0 (down $2,020) (goal $0) *GOAL REACHED*
  
• Loan debt totaling $0 (down $3,029.58)(goal $0) *GOAL REACHED*
  
• Car loan totaling $7,728.01 (down $169.13) (goal $5,485.41)
• Emergency fund totaling $5,268.72 (up $2,008.32) (goal $7,500)
• Roth IRA contributions to date: In savings, $2,057.94 (up $902.31), invested in DCA plans, $200 (up $100)(goal $5000)
• Charitable
• Total hours volunteered: 3
  

So, as you can see, big changes, and they're not done yet! My bonus showed up, and I used it exactly as I planned. I paid off two signature loans, freeing up money monthly (which I'll apply most of to my car payment), and I made payments to my IRA savings account, and my emergency fund. I also started my volunteer position at planned parenthood. I enjoyed that immensely, and I look forward to doing it weekly.

There was a little episode of "New Car Fever" that I almost succumbed to, but I was saved by the lack of ethics of car salespeople. My car's fuel pump went out, and I was tired of having car issues (although that warranty saved me over $600. Worth it) I wanted to look into a new car with a good warranty, and the dealership was only too glad to help. I had a great deal lined up: 0.0% financing for 60 months, invoice price for a new Chevy Aveo5, and $4000 trade in for my car (more than it's worth). Then, "oops, the %0.0 is only on the impala, but we do have %2.9 for the Aveo5."

Well, no problem. That's still a great rate, and everything else still applied. I set everything up ahead of time, confirmed the numbers, and went down to seal the deal.

2 hours into the paperwork, they pull me aside and say "we made a mistake: The %2.9 is on the Chevy Cobalt. The best we can do for the Aveo5 is %6.75".

That was the final straw. I thanked them for their time, and walked out. Of course, as always happens, the salesman ran out at the last minute and stopped me. "Wait! Let us see what we can do." So I did. The short answer? Nothing worth my money. Tired, cranky, and up way past my bedtime, I drove my own car back. A new car can wait. Besides, with the market the way it is, I predict low, low, new car prices soon.

So, I feel I've made great progress this month. Next month should look good as well, as my wife's bonus is still due to show up.

And, of course, I did splurge a bit with my bonus. I bought a new Archos 605 wifi, with accessories. I plan to use that thing everywhere, from work to the gym.

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.

Why I do this

Just recently, it became time for me to register my car tabs. In this county, we have to get emissions checks occasionally, and this was the year for my car.

It failed. Not really, but there's an automatic failure if the engine computer returns any code, and my car mentioned an issue with the A/C system. With this program, you have to go fix the issue or spend at least $150 trying to, then get a second (free) emissions test, and either pass, or get a waiver.

Off to the mechanics. The assessment alone cost $98. After that, they said fixing it would cost an additional $300! I got a limited warranty when I bought the car, so I had them check that. The warranty would cover the cost of the repairs, after a $150 deductible. So, I'm still responsible for about $250.

Recently, that would have ruined me, and I would have had to charge it on a card. This time, I didn't even have to dip into my emergency fund. I took some money from an old bank account I was planning to close, and paid the bill on the spot. 2 days later, new car tabs. The stupid engine light is still on, but at least that issue is over.

Financial peace of mind is worth more than all the frivolous spending in the world.

The times, they are a changing

So, that rate cut the federal reserve has, of course, changed things. I was hoping that the rate would at least stay static, or possibly increase, but that seems not to be the case. As such, I must readjust.

The rates of CDs have dropped immensely. I'm abandoning my CD ladder plan for now. I'll get better rates just having the money in my savings account, which brings me to the second expected change.

Any day now, my high yield savings account will be dropping their rates. I'm not going to do anything about it, but I am aware that it will happen. I'll readjust as it happens. On the bright side, I'll be able to get better rates on my debts, and refinancing my auto will result in a better deal. That's very good.

That was one of the hardest things

If anybody knows me, they know that all I've been talking about car wise is the Smart Car. I saw them everywhere in Germany (their home town) and they work great, especially for what I would need a vehicle for. I really, really want one.

However, "buy new car" isn't on my list of goals. In fact, it's in direct opposition with one goal, to bring my auto debt down. It is possible to get one. What they would do is roll the current debt in with the new debt, and cut me a loan for that. The only problem there is that then, I owe far more than the car is worth: about $10,000 more. If the car gets totaled, the entire debt won't be forgiven, just the amount the vehicle is worth. I'm not comfortable with that.

So, I called Smart. They had a plan I bought into more than a year ago to reserve a Smart FourTwo. At that time, I had a car I owned outright, and less bills. Now, I have an auto loan, and more bills. So, I asked them to refund the money I put down (only $99), and I'll have to wait on the Smart car.

I'm bummed, but at least I know I'm avoiding a mistake.