Year: 2009

How to be Poor and Environmentally Conscious

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The following is a guest post from Kyle over at 21andbroke.  Kyle writes about life and advice for the real world. This is a site for current students, recent graduates, and other young people who are in that strange phase of life where everyone expects them to suddenly be adults.  I know the feeling and the group of people that Kyle is trying to reach, because I am one.  Enjoy!

A. H. Allyn Mansion by cliff1066™.
[Image Credit: Cliff1066 on Flickr]
After my newfound friend Jeff and I decided to swap guest posts this week I was left with the classic blogger’s dilemma. An empty, white, and very blank word processor taunting me. What was I going to write that was both sustainable and relevant to poor college students? That’s when it hit me. College and early adulthood can be the most sustainable times of your life. In fact, being frugal often leads to increased sustainability without even trying.
Think for a moment about all the reasons Americans are chastised for not being “Green”. That big SUV driving from the suburbs to the strip mall, endless rows of McMansions costing thousands just to heat, massive boats, and the list goes on. Students don’t normally have these things because they can’t afford them. Many students don’t drive at all, choosing instead to walk to class or work. And you might knock it for the comfort, but few things are as efficient as cramming 20 students down a dorm room hallway. That meal of ramen they had earlier this week? It didn’t put out nearly as much CO2 as that five-course steak dinner being served for the business executives downtown.
I’m not trying to say that the key to sustainable living is eating noodles every night. There’s no need to “rough it”. After all, I wouldn’t want to spend my whole life living in a dorm. But if more people thought like starving students the world could be better off. Okay, maybe not thinking like the students who have the front yard-turned-landfill every Sunday morning. I’m talking about these hypothetical smart and sustainable students. Thinking like one of these students can save the planet and your pocketbook.
Think of all the ways you can be frugal and sustainable. Pretend you don’t have a car and take the bus. You’ll save on gas. Stop buying paper plates and do some dishes. You’ll save that cost too. Use those thin plastic bags, buy only the living space you truly need, cut back on the Coke and drink a little more water. That last one could even help your health. It just keeps getting better. By cutting life back to the essentials the most important things become abundantly clear.
If you’re a student right now, try to avoid the lifestyle creep that so often comes with that first job after graduation. So often people’s expenses will raise evenly with their income but this doesn’t have to always be the case. There’s no need to go out and buy a new car right away or upgrade to a fancy apartment. Treat yourself, then take that extra income and save it. Put it towards retirement. Pay off that student debt early. Buy some stocks. Live well within your means and you won’t regret. A few years of living life on the cheap now can pay off huge dividends down the line.
While your friends are paying off their credit card debt, their boats, their giant homes, and just beginning to worry about retirement you’ll be well on your way to financial freedom. All this because you took a little time to think like a student.
For more ways to “save like a student” be sure to visit 21andBroke.

Healthy Routines

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Im back to health again after long time focusing mostly on finances and the environment.  Like I say everywhere in the blog, these things are quite interconnected, and some of the rules that apply to your finances can apply to your health.

The one I have been thinking about most recently is the automation portion.  Every morning when I get to the office, I park in the farthest parking spot that I can from the door.  Im typically one of the first ones there, so I do have my choice, but choose to park quite far away.  So, I walk a bit further to get into the door, and feel nice and energized when I get there.

However, I dont think you need to do this ALL the time.  One example for me is target: I swear, whenever I go in there it rains or snows, without fail.  That, coupled with the big-box store mentality of parking close to the entrance, I typically try to find a parking spot as close as I can to the front door.  To me, this isnt a big deal at all.  I go to target about once every week and a half or two weeks, so not taking the extra steps is not that big of a deal.  However, I go to work EVERYDAY.  Taking those steps everyday will create a solid routine for the future, and will also add up over time.

Just like with saving money, in health, Every little bit counts.

This solution also works well with messages you need to take around the office.  You could use the phone, but you’ll probably feel better if you walk up a few steps to talk to whomever you need to talk to.  I’ve never worn a pedometer or tried to count steps, but if you’re interested, you can get them for cheap or probably get a free one.

Another healthy routine to get into is eating breakfast.  I know you heard it from your mom everyday, but it’s the truth.  I usually dont have mine at home, but I eat it while at work.  I just keep a box of blueberry flavored granola in my desk and have a cup when I get to work every morning.  Couple this with a bottle or 2 of water, and I’m set for the day.  (I’m not all that dependent on caffinene, and with the granola, I dont really need to be.  Its very energy dense, and keeps me going through lunch.)

November Month Review

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This is an update about where I stood in November as far as budgeting and paying down my debt.  Im hoping this will be all inclusive, but sometimes I do forget things, and will update them as I realize.

Budget For November

I do all my budgeting in mint, and its helped me greatly.  I’m not really into getting down to pencil & paper budgeting, but this has worked fairly well for me.  If you are struggling, I suggest you give it a try yourself.  If it doesnt work, move on to something different.

Rent $325 of $375 – I was able to get a discount on rent for this month for fixing a fence that the wind blew over.  It took the better part of an afternoon, but was totally worth it.

Auto Insurance $33 of $35  – Always the same, but I think my rate went down a dollar or two for my next cycle, starting in december.  Nothing to complain about there.

Groceries $99 of 110 – I was fairly close on this one, which is good.  This is just food that I buy to cook at home.

Transfer to Savings $50 of $50 – it’s great to maximize this transfer.  I set this up recurring every month, even though Im not finished paying down my debt, I still think it’s a worthy endeavor.

Fast Food – $68 of $35 –  This one obviously needs to be adjusted.  There is no sense in making your budget goals so unrealistic that you blow by them (like I did) and then feel bad for the rest of the month about missing them.  I’m thinking of raising this $10 or $15.

Gas – $189 of $200 – No, I’m still not happy about this, but due to some recent changes that I’ll detail in the future, this one will only get worse before it gets better.

For the Month, I spent $1361 out of a total of 2,330.  I’m living well below my means, and to ensure that I keep it this way, I have given myself a Monthly Budget of $1375,  with everything else going to debt repayment.

Status of Debt

My goal for this was to have the credit cards paid off before I really had to get into my student loan payments at the beginning of 2010.  Unfortunately, this didnt really work out as planned, and you can read the story about me not thinking properly here.  Just in case you were wondering, I prefer to get lessons from the school of hard knocks instead of verbal advice.  My

Chase WaMu Card – 666.14 – this is the one I’m most happy about.  I’ve had this card for about 5 years, and it’s been a burr in my saddle ever since.  I currently have the cash on hand to knock this one out, but I am reserving that until I get paid again, in case I will need said cash for an emergency.

Chase Southwest Card – $1,534 – This one was paid off in August of 2009, but I had to use it before I had the change to close it.  I had planned on paying it off with proceeds from the sale of the car, but that did not pan out.  Find the link above if you want more on that story while I cry forget about it and move on.

Citi Card – 2,622 – I’m not to worried about this, as it’s on 0% interest and does not expire until may.  It will be gone by then.

So…..how much did my debt cost me this month?  a whopping $69.  Not too happy about this, but soon enough it will be gone, and I can assure you that my lesson has been learned.


The High Cost of Being a Moron

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Yup, Im an Idiot.  It’s official Now.

Credit: Southsidetowing
Cars Impounded

Wow…..I never thought it would have happened, as I’ve been on quite a good streak with my finances and personal life lately.  By “good streak” I mean to say that I havent done anything that will knee-cap my chances of being successful in the future.  Some people call this “Staying out of your own way”.  As I mentioned, I have been quite good at getting out of my own way lately (I wasnt always this way, but that’s a topic for another post).  I was making good headway on my debt (I still am, sorta) and just really had not done anything that I could look back on in 5 minutes and say “What the hell was I thinking?!”

Well, as you can probably gather, this completely blew up in my face recently, and I’ve finally gotten around to writing about it.  You’ll probably say I was stupid as well, but at this point, I’ve put my moronic actions past me, and have updated my plan/situation to reflect that.

As I mentioned in a previous article (The cost of your car, Pt 2), I purchased a new car when my old one broke down on the way north, and because I got a fairly good deal on a not that old car, I figured that once I got my other car fixed, I could sell it for at least what I paid for it, or possibly a profit.  So, with the help of a great friend, I retrieve my car from its location, take it to the repair shop, and they tell me it will be about a week, because they were a bit behind.  (It was fine with me, as hunting season had just opened, and I know that my mechanic hunts frequently)  So I drive the newer car until the old one is fixed, and then list it on craigslist.  Within a few days, I had many promising responses, and set up a time to have someone look at the vehicle.  I had left room on the price to haggle a bit and still make some money, and the first person that looked at the car made me an offer that I accepted.   The buyer informed me that the transaction would take a while to complete, due to some funding issues, which I agreed to.  One of the reasons that I did this was to avoid having to pay insurance for the car – though I do think that insurance is important (such as Life Insurance, Health Insurance, etc)

Once that happened, I imagined all this progress I was going to make on my credit card debt with this money that I did not yet have.  I ran numbers over and over in my head, and I thought I would be able to hit my goal of being free of credit card debt by 1.1.2010.  I was ecstatic, and applauded myself on shrewed business skills.  All the while, I left the vehicle parked on the street in the city I work in (45 mins from the city I live in).  It was a couple blocks from my place of employment, and so I didnt really figure it to be that big of a deal, as it was parked on the street next to a vacant lot.  The plan was for the car to sit there for around 8 days, and I figured that no one would mind (or even notice, really) that the car had been parked there.

The problem with that situation was that there was an issue with the funding source of the buyer, and I figure that im in no hurry, and can wait for her to straighten everything out.  The car ends up sitting there for the better part of three weeks!  On the day of the sale, I go to retrieve it and ITS GONE!  Im thinking to myself, holy crap, where is it, what happened to it, etc.  I come to the conclusion that it got towed, and I need to find it and get it before I can sell it.  (I havent panicked yet, but im sure annoyed at this point).

I call the city, they tell me (after waiting a bit) that it was towed.  I call the towing company, and they say that have it, and that it’s going to cost $900 for me to get it out.  They had it for almost 2 weeks.  I was not happy that I was not notified, but right then, all the dreams I had of using that car money (and profit) to pay off my debts went out the window, and life gave me a well placed kick to the midsection.

I retrived the car, swallowing a $900 bill before hand, and thought, well, im glad this mess is over, sold the vehicle and wont really look back.  Except to weep continuously.

I learned the following lessons from this escapade:

  1. Keep track of your crap – This would not have happened had I not assumed that all was going to be hunky-dory with the world.  The car got towed, but it could have just as easily gotten stolen.
  2. Get out of your own damn way – Personal finance is difficult enough (so much so that many dont bother with it), and it’s even more difficult when you keep tripping over yourself.
  3. Dont count your chickens Dollars before you’ve got them –  This definitely didnt help either.  It just made me angrier at myself for being such an *idiot*
  4. Persevere – I think this is the most important take-away from this.   Although my Jan 1, 2010 goal for being credit card debt free is most likely unattainable at this point, this is no time for me to just give up.  I’ve gotten too far, enjoyed the successes that I have had too much to just quit now, even though I did take one on the chin pretty hard.

As they say on Intervention, Relapse is part of recovery.  You have to just keep plugging away, and eventually you’ll be where you wanted to be at the beginning.

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October Budget

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I hope that you all had a safe haloween and a prosperous October.  Mine fared pretty well, with me only going over budget in 2 categories, by a total of less than $15.  Here’s the breakdown.

I was $1 over on my fast food, and $12 over on my restaurant budget.

I also realized that I way over allocated for gas last month, which is a relief.  I have lowered it from a high of $300 recently to $170.  Lets hope it stays here, although I was supposed to have 2 extra days of work that would have resulted in an extra tank of gas that got snowed out, and I didnt need the gas. AWESOME!

I was also able to begin a separate savings account for a home, and have set up automatic funding for that for $50/month! I hope to up the contribution at the start of next year when I will have more free income due to lack of debt.

September Budget Review

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Well, the month is finally over, and now it’s time to review how I did on my budget for the month of September.

Everything was going great as far as my budget goes until I had car trouble last weekend.  You can read about it Here.

That being said, I was able to keep on my budget in every other part, and if I can sell the car soon (as planned) everything will be nice and rosy.

For now, my net worth took a hit and my monthly budget was consumed mostly by car stuff (eek).  See the graph below.

September Budget
September Budget

All of this is pretty self explanatory as far as categories go, and I only went over in 1 category.

Mortgage & Rent: 375  This amount wont change for a while.  It’s for the roof over my head.

Gas: 302 of 320 – I dont like one bit that I have to spend this much per month on fuel.  My car gets ~23 miles to the gallon, so Im not wasting, I just have a 50 mile (1 way) commute.

Groceries: 80 of 120: This is just for food used to cook at home

Fees: 62 of 70: Interest on credit cards

Mobile Phone $52 of 52 – Cost I pay to verizon every month

Auto Insurance: 33 of 33 – To keep me safe in accidents

Fast food: 40 of $25   I blew this one, or maybe my fast food budget is too low?  I’ll have to look into this for next month.  For now, Im thinking of an increase to $35 per month

That’s all she wrote folks.  The reason that auto took up 60 some percent was because I had to put the new car on a charge card.  As soon as the car sells, pay off the card and rest easy.

August 09 Budget Review

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Ahhh….finally.  With the end of august comes the end of summer, the childrens are going back to school, and the weather starts to get a bit cooler.  It’s also the end of the month, which means time to review the progress made in august towards becoming debt free, and re-evaluating (or creating new) goals for my budget.

Income: This is all the income that I earned during the month of August.

  • Paycheck – $1,100
  • Gifts – $383 – This income is not normal, and I do not budget for having it every month.

Total $1,485.90

Spending: This is how I allocated my resources during the month

  • $416 on Auto and Transportation –  This is the most I’ve ever spent on this category, by far.  I had some things happen earlier in the summer, and now I commute to work every day.  This includes insurance, gas, and some repairs that I did myself, and some that I paid to have done.
  • $441 on Home – This is rent ($375) and home improvement.  Im comfortable with this number, although typically this would include just rent.  I built a new bookcase this month.
  • $232 on Bills & Utilities – This includes water, trash, electricity and cell phone and tv/internet.
  • $226 on Food – This includes grochery shopping and dining out.  I believe that I budgeted for $225, so im ok with this
  • $40 on Education – This is to pay to keep me in school.
  • $19 on Shopping – Not too sure what I bought, which is probably not a good sign.
  • $40 on Travel – Went camping in the Badlands of North and South Dakota this month.  Had a great time. Totally worth it.

Total: $1,414

Difference: $71 – Not much, but it’s better than a negative number.

There has also been some exciting news reguarding my credit cards.  (wooo!).  As you’ll recall in my paying off credit cards with savings post, I recently paid off one of my credit cards with my savings.  It was a difficult decision, but in the end it made the most sense.  Due to an inturruption in my cash flow, I was going to have to use a significant portion of my savings to live off of for a time,  so I figured I may as well slay one of the beasts.  Boy, did it feel good.  Without further ado, My credit card debt levels:

  1. Southwest RapidRewards Card: $0 – I paid this card off, and im more than happy about that
  2. Chase/WaMu Card – $2,110 – I was able to direct 300 towards this account from my savings.  It’s my next target for payoff.
  3. Citibank – $2,472 – This card is at a 0% balance, and will be my last card to pay off.  The balance ends may, 2010.

Total Debt: $4,582 Im happy to see this number getting lower, and my net worth approaching $0.  Then I can start building a positive  net worth!  Who else is with me?!

Note: As Im still a student, this does not include my student loans, which are currently are in-school status, and will be so until ~june 2010

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