The Hustle of Sistah Ant

Here’s to three paycheck months! I put over $2,000 towards my debt and it feels really, REALLY good.  Wanna see it?  Click on "Net Worth" above my "Positive Net Worth" progress bar.  As I’ve blogged about before, it was hard towards the end of the month because frankly, I got sloppy with managing my balance by losing a receipt and spending a little more on food and a wedding that I hadn’t planned on spending. But I still think I did alright. Next month is going to be a downer, though, since I’ll go back to "two paycheck month" progress. As you may see, the bulk of my extra money went straight to debt repayment. All part of the plan. I’ve been waiting months to see this. One more thing - my car loan is finally right-side up instead of upside down. It might only be by about $40, but I’ll take what I can get.  This gets me excited and justifies all the effort I put into being smart about my money.  It’s not just that my net worth graph looks cool.  It’s mostly that my old credit card debt is biting the dust. 

Have a great holiday weekend.  

I know I will! 

Something to keep in mind: Paycheck to paycheck is not good.  Period.

This is why this blog is to be taken lightly.  I wouldn’t suggest that someone else do the things I do, because they are risky.  Instead of beefing up my emergency fund to cover months’ worth of expenses in case my primary (currently only) source of income is no longer available, I am funneling as much of my discretionary income as possible into eliminating old credit card debt.  I have my reasons for doing this.  First, the idea of continuing to pay interest on my old credit card debt really bothers me.  Also, paying the debt will improve my ratio of available credit to my debt balances, and this may improve my credit, which is important to me, because down the road I want to fetch the best mortgage terms and most painless closing costs possible when I buy my house.  (They say when your score is in the mid-700s, improvement is moot, but I say Every Little Bit Helps.)  When I finally do move into my house, my mortgage won’t have to compete with my old credit card debt for a slice of the take-home pie.  Generally, though, I just want it gone.  My old credit card debt is like split ends, or hangnails, or extra tummy weight - you look at it, it bothers you, and you do what you have to do to excise it.  It’s very psychological, and I’ll be glad when I move past this part of my financial journey.

That said, if I were to lose my job tomorrow, I’d be SO NOT "okay for a few months."  I’d be at the unemployment office immediately.  I’d be settling for a percentage of my current pay, while scrambling to get another position with no certainty in sight except my faith that something is out there for my skill set (or I’ll wind up taking "whatever" to make ends meet).  I couldn’t pay my September rent until I got paid this week - not unless I was willing to dip into my small emergency fund.  

So yes, I am making progress.  But as Charles Barkley might say, "I am not a financial role model."  I am gambling.  I am depending on the ASSUMPTION that my income will continue at its current rate while I repay debt and that no emergency will happen that my emergency fund can’t handle alone.  This is why folks recommend that you get up a certain amount of savings together before repaying debt.  I’m just eager and hard headed.  But I do know my risk. 

Messed up again.  The $19.98 I spent on gym pants was spent with my debit card.  But I didn’t note that in my register - I would have if I had the receipt.  Buuuuut I don’t.  Soooo I thought I had $19.98 more than I have in my checking account.  Which really is unfortunate because that little mistake will cost me $15.00.

My bank charges $15 for any month in which the balance on either my savings or checking account dips below $100.00.  Guess who dipped?

I keep debating whether or not the convenience of having and not switching my bank is worth these little $15 dings.  But in this case, I’m glad that being off by $19.98 means a $15 ding instead of a $36 insufficient funds fee.  In any case, I’m really disappointed.  I’ve been doing so well with keeping up with my ends and keeping my balance in my register to the penny.  All it takes is one lost receipt to mess up stuff. 

It’s OK though.  Maybe I needed this little $15 mistake to get me to be more conscientious… before I mess up and make another, more lucrative, mistake. 

Bankrate says these are the top ten money drains… and you know what?  I feel pretty good about that:

coffee (I don’t drink it.)

cigarettes (I don’t smoke.)

alcohol (I don’t drink, either.)

bottled water (I use the water cooler at work and the tap at home.)

manicures (I do my own.)

car washes (Maybe once every few months.)

weekday lunches out (Maybe once every couple of weeks - at the dollar menu, of course.)

vending machine snacks (Maybe twice in a year, I’ll get a candy bar from a vending machine.)

credit card interest charges (I pay in full during the grace period.  I have a line of credit balance that accrues interest for old credit card debt, but that should be history after a few months’ time when it’s paid off.  In the meantime, I’m covering several times the minimum each month with my ample payments.)

unused memberships (Oh I’m GOING to the gym, even if I don’t feel like it, if for no reason other than to get my money’s worth.  Plus, I pay about 10-15 less than your average gym aficionado per month.)

My money’s not draining on unnecessary stuff.  I feel good about that.

I was tagged by Debt Challenger to give my most favored piece of financial advice.  Picking a favorite is hard, because every good thing I know about "being good" financially works together with some other good thing, so it’s hard to pick a standout.  Perhaps the best thing I can say is "humble yourself."

Throughout this journey towards financial wellness, I have constantly had to humble myself.  Even though I didn’t like the concept of failing at anything, I had to accept that I wasn’t on top of my credit card usage in order to stop using my cards until I could use them properly.  I had to accept that there were things I didn’t understand about money in order to effectively learn what I needed to know.  I had to cut corners, like shoveling the walk for my landlord in winter to save on rent, or using store brand products instead of brand name products to save on groceries.  It’s not always easy to do things like that.  I was a little embarrassed that one time my friends saw me mowing the lawn at my apartment building.  Sometimes I wish I had a more extensive wardrobe.

But purposely being humble has saved me from spending more than I earn.  It has enabled me to get through emergencies because I’ve been able to keep and replenish savings cushions.  It has also helped me to stop my credit card balance from growing, and even to start paying it off more rapidly than it grew.  Not taking myself too seriously and not feeling a sense of entitlement to more than my necessities helps me to appreciate what I do have, understand the difference between a needed thing and a wanted thing, and to be a good steward of my time and money.  And one of these days, I’ll be debt free outside of the mortgage on my first humble home.  It’s not that I lack ambition.  I just don’t overreach or consume for the sake of consumption.  To me, financial humility means understanding that I am young, and I don’t have to have it ALL right NOW.

Note to self:

Spaghetti is cheaper to prepare than lasagna.

I now have eight dollars left until pay day.

But tonight, I will eat lasagna.

[sarcasm]Whoopee.[/sarcasm]

It better be the best lasagna I’ve ever made.

I’ve gotta get better at meal planning. 

Thing about going to see live amateur performances is that there’s always a price to pay.  Five at the door.  Then, "Like my stuff?" (Artist opens long trench coat, and a cart falls out like one of the beds that falls down from the wall, already fully stocked with shiny, mesmerizing objects.)  "I got two CD’s, one for 10 two for 15, support a starving artist…"  If you really want to support the arts, there’s always a special show or three happening in any given month.  Tickets are twenty dollars in advance, twenty five at the door, and don’t forget to buy one for a friend.  On the way out of the venue, don’t forget to support the artisans selling their wares, jewelry and crafts.  Craftsmen gotta eat too.  Support the community.  Support people trying to do something positive.  Support, support, support.

Mm hmm. 

I’m going to start hosting the "Sistah Ant Housing Fund" show, once a week, tickets are twenty in advance, twenty five at the door, and don’t forget to buy my CD, with 12 independently produced tracks of me explaining, among other things, why I haven’t been going out as much lately, the benefits of a spending plan, and the financial benefits of homeownership - it’ll change your life!  All proceeds to benefit my closing costs (provided I can’t get the seller to pick those up), and thanks for your support, support, support.

In the meantime, I’ll just stick with the five at the door.

My clothes are dry, as of Wednesday evening.  Finally.

I spent that extra money on my brand spankin’ new gym membership ($40-something) and a couple pair of gym pants, which I actually needed, ‘cause all I had were jeans and slacks for work ($20).  I spent another $10 on a co-pay for a doctor’s visit.  The rest will go to scheduled maintenance for my car.

And, I am riding down to Maryland as a passenger of another guest of the wedding, chipping in on gas, and maybe slipping about $20-25 in the card.  The way I see it is, I love the bride like a play cousin, but I’m really not even a play cousin.  Anything more than a Jackson is more than enough.

I’ve got one more week to go until payday - so far, it’s looking good.

One last thing.  My co-worker’s employment was terminated today, rather abruptly - I didn’t even get a chance to say goodbye.  Her husband is ill, her son is prone to illness, she has a new grandchild on the way, a mortgage, and who knows what else?  I wish her well.  And I also have a renewed sense of gratitude to the Creator that I am employed.  Here’s to me trying to keep it that way…

I have $25.00 in an account that I set up with ING that’s ear-marked "My Own Home."

I’ve been with ING for a couple of years now, and for most of that time, I didn’t know if I could create separate pots of savings for separate and distinct purposes.  As I began to read the personal finance blogs, I discovered that people were doing this, but nobody was describing exactly how.  Then I stumbled upon one blog (I wish I could remember which one) that said that all you have to do is open a new account.  I’d seen that link before, but the words "open a new account" led me to think that I’d have to start a registration process all over again - not true.  Since I was logged in, ING already knew who I was, so it simply created an account for saving that was linked to all my existing personal information, my existing ING savings account, and my existing linked checking account.  The new account does have its own number, but it’s all connected, and I didn’t have to link it to an existing checking account and confirm deposits like I did with my first account with ING.

I started the account with $25 from my existing "Emergency Fund" account with ING (I still have over $1,000.00, which is my minimum e-fund amount, in that account.)  This was an action of faith.  My most treasured goal, after killing my old credit card debt, is to get a down payment together and get a house before New Year’s Day 2009.  I want to ring in the new year in my new house.  I want this to be more than a dream, so I have committed $25 to making it a plan instead of a wish.  I will continue to use the bulk of my discretionary income to pay down my old credit card debt, but I will regularly contribute some nominal amount to the "My Own Home" account.  It’s about keeping my morale up, and backing up my words with deeds.  A quarter of a hundred dollars isn’t a fortune, but it’s more than zero, and as it grows, the distance between me and my own home will get shorter and shorter, even if it’s only $25 at a time.  When I’m done slaying the credit card debt dragon, I won’t even have to start from zero when getting my downpayment together - that little boost will help a lot.

All I wanted last night was to do my laundry. I went to the drugstore and bought a candy bar to get $8 cash back to do my laundry at the laundromat without getting foreign ATM fees. I’ve got it down to somewhat of a science, so I know how much I need. Exactly $4 to wash, and depending on what I wash, no more than $4 to dry. I don’t take out more than I need, so I just took it in stride when the cashier clowned me for taking $8 instead of $10. In retrospect, it would’ve been nice to have $10.

When I got back to the laundromat after my first wash ended, my "dark" load hadn’t spun. An hour before the laundromat was to close, I was stuck with a load of soaking, dripping clothes. *insert expletive here.* *in fact, double that expletive here.* I figured that it didn’t spin correctly because just maybe I had too many clothes in the washer. I thought, what would I do if this happened at home? I’d take some clothes out and put the remaining clothes directly on the rinse/spin cycle. Thing is, at the laundromat, you have to go through the whole entire wash - you can’t pick your cycle like at home. So in a split-second decision (I only had an hour) I took my jacket off, tied half the wet load in it, and started another full cycle for the clothes left in the machine. It didn’t dawn on me until I’d put about six quarters in that maybe I should’ve put the remaining clothes in another machine, juuust in case the machine was broken. By that point, I couldn’t get my $1.50 back, and since I only had $4 to dry with, I had to dry my whites, and I just didn’t have enough change on me to switch machines (this is where that smart-aleck cashier would have died laughing about me not having $10). So, I had to take a gamble on the original machine. I put the last two quarters in and carried that heavy load of wet clothes up the street in the rain to my house.

So began my education on why washing machines and clothes dryers were invented. I wrung out the clothes as best I could by hand in my bathtub, and then I put them on hangers on my shower curtain rod. Lord knows when they’ll finally be dry. I ain’t but so strong, so for all my wringing, the clothes were still dripping wet when I left to go back to the laundromat.

I had no plan for what to do when retrieving my the rest of my clothes from the washer. With less than a half hour to go, I knew I wouldn’t have time to dry them before the laundromat closed. I got my whites and walked them home. I opened the washer with the dark clothes, and what did I see? Half a load of soaking, dripping clothes. *insert triple expletives here.* At this point, I’m just tired and mad. I waited for the attendant to come shut the place down and had him give me a refund, so I got $2 back. I should’ve gotten four, but sometimes I’m just not assertive, even when I’m angry - last night, it wasn’t about the money, I just wanted clean, DRY (or at least wrung-out) clothes. There are no other laundromats open near me at 9pm, so the other load wound up in the bathroom. It’s not bad that it smells like fabric softener in there.

But I hate that I have no idea when they’ll be dry. I hate that the clothes are hanging in my bathroom instead of the basement I don’t have. I hate that I have to have my laundry done by 9pm unless I want to drive out to a 24-hour place miles away.

I want my own house. My own basement. My own washer and dryer.