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.

February Update

Goals Update

• Review
• Financial
• Credit card debt totaling $1,308.83 (up $229.64) (goal $0)
• Loan debt totaling $2,020.00 (down 122.78) (goal $0)
• Loan debt totaling $3,029.58 (new loan)
  
• Car loan totaling $7,897.14 (down 2380.78) (goal $5,485.41)
• Emergency fund totaling $3,260.40 (up $1628.52) (goal $7,500)
• Roth IRA contributions to date: In savings, $1155.63 (up $528.63), invested in DCA plans, $100 (goal $5000)
• Charitable
• Total hours volunteered: 0
• Financial review
  
• Pay off credit card with wife's bonus
• Now there are two bonuses: Mine for reenlisting, and my wife's for affiliating. $15,000 for me lump sum, $20,000 for my wife, paid in installments ($10,000 now, then two more payments of $5,000 over the next 3 years). My wife's bonus will still pay the credit card, plus doing some saving, and I'll pay off the two personal loans, plus saving. As soon as those bonuses post, we'll take care of it.
  
• Deposit at least $250 into my emergency fund from my paycheck
• Done. I've also set up direct deposit at work. Now, $125 a paycheck goes into the emergency fund account.
  
• Deposit at least $418 into our IRAs
• Done. Also set up direct deposit for that savings account too. $209 a pay period.
• I also set up a dollar cost averaging plan for my wife and I. We now pay $50 a month into a mutual fund of our choice. They're not doing fantastic right now, but I'm much more interested in buying right now than selling, so the current value doesn't matter much to me.
  
• Save at least half of our tax return
• Done. It went into our savings account, and it was as if the money never existed.
  
• Increase my payments on the signature loan to $150/month instead of the $122/month
• Done. My payment for February was $150
  
• Educational/Professional
• Follow up on board of registry application with the other person.
• Done. Finally got the information. I'll be sending the packet with transcripts soon.
  
• Follow up on the life experience credit forms
• Unfortunately, not possible anymore. All the life experience forms were put aside by the people in charge of them, and the expiration date passed. That sucked.
  
• Follow up on the alternate clinical site
• Done. The other site is happy to have me. They may even coordinate to pay me to go there. That would be nice.
  
• Assemble and submit E-6 packet
• Not done. Not a priority right now.
  
• Physical
• Continue training for the half marathon
• Not done as much as I would like. I admit, I hate exercise. I need to do it.
  
• Charitable
• Begin working volunteer position if accepted, apply elsewhere if not.
• Had the position offered, filled out the appropriate paperwork, waiting to hear about the next step.
  

March goals

• Financial
• Pay off credit card with wife's bonus
• Pay off personal loans with my bonus
  
• Deposit at least $250 into my emergency fund from my paycheck (recurring goal)
  
• +$2000 from my wife's bonus
• +$2000 from my bonus
  
• Deposit at least $418 into our IRAs (recurring goal)
  
• +$1000 for my wife's IRA from her bonus
• +$1000 for my IRA from my bonus
• Educational/Professional
• Follow up on board of registry application
  
• Continue to 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.
  

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.
  

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.