The Hustle of Sistah Ant

While away for the weekend, my lil’ cousin’s mom, my aunt, handed me a check for $25 for gas money.  Who knew?  That check is being deposited into the bank account that I’ll use for spending on my New Orleans trip next month.  So far, that account has over $200 in it, made up of an insurance refund, survey participation checks, and money from the bank that I received for recommending that Sistah Beginner start an account there.  Those amounts, ranging from $50 to $3, have added up.

When I walked through the door on Sunday evening after a very fulfilling trip, I received another survey participation check in the mail.  I’ll deposit it into the same account.  It’s going to be nice to be able to spend it in New Orleans guilt and debt free.

Guess what else?  My dad gave handed me two crisp bills for "gas money".  He just slipped it into my palm.  And when I looked at my hand, I was holding $200.  He just bought himself a sponsorship brick in the garden of my new home.  OK, maybe not quite, but I promptly deposited the cash this afternoon, and it is on its way to the My Own Home account.

My point?  Multiple streams of income are good.  Sometimes when you’re not anticipating getting a financial benefit out of doing something, you wind up benefitting anyway.  And, thinking of creative ways to use the money that comes into your hands makes more sense than mindlessly spending it. 

I put away $1,510.90 for the house this month, not counting the interest that ING will pay me at the end of April.  I received $10.00 for a rebate from my last oil change.  I got $3.00 for a survey I did.  My bank deposited $50.00 into my checking account for referring Sistah Beginner to my bank to open her own new account.  I also increased my IRA balance by $200.00.

Relative to what my ultimate goals are, these amounts aren’t very big.  But these efforts add up.  So I’ll keep on plugging away while I still have the income to even make these kinds of incremental strides.  I’ll do a wrap-up of my net worth for April after I take care of my household expenses.  Looking forward to seeing the new chart!

Thanks so much to you for reading and have a great weekend! 

Cel-e-brate good times, come on!

Sistah Beginner will soon be paying off her credit cards and freeing up the money that she would otherwise be paying to her creditors for minimum balances.  After a brief discussion about dedicating a specific and trackable purpose for the extra cash flow created by paying off her cards, we decided to celebrate the fact that now we will both be absolutely free of credit card debt.

She won some free movie passes, so we’re going to go see a free movie to go and celebrate our success.

It is immensely rewarding to see my best friend benefiting from her diligent, hard-fought, and sometimes even Herculean efforts to get more financially healthy (and to know that having me as a sounding board is helping her along the way)!  First of all, I don’t want to be doing great and leave my best friend behind when she deserves everything I’m reaching for and more.  Secondly, because I love her, helping her to get financially healthy by sharing what knowledge I pick up along my journey is the best gift I could ever give her, ‘cause the good habits we’re both building can help us for the rest of our lives.  She has already helped me so much by indulging me - listening to and encouraging my learning process, not resenting me as I become more financially successful.  She is a gem, and as those of you who’ve lost friends as you’ve become more successful know, I have a blessing in Sistah Beginner. 

When we went shopping the other day, as I was backing out of the parking space, she pulled out her check register and receipts and started tallying her new balance.  Right there in the car.  I remember that she didn’t used to do that.  I was so proud.  I looked at her and said, "You know we’re going to be rich one day, right?"  She laughed.  Yet I said, "No, I’m serious.  We are building the habits that will keep us living well for the rest of our lives."

Mark my words, folks.  Our kids, who will play together one day, are going to have generational wealth. 

We finally made groceries on Sunday.  The prices of bread, milk, and fruit were noticeably higher.  Anyway, at least now I can take lunch to work again.

Sistah Beginner and I went shopping on Saturday - maternity wear for her and work wear for me.  I picked up some otherwise-expensive-but-outlet-priced makeup, a very nice belt, and a cute skirt suit which was about 50% of its original price because I took advantage of my new favorite outlet store’s sale.  I also got some unmentionables and some slippers - those things I always forget to get for myself even though I need them.  Surprisingly, despite my recent acknowledgment of a burgeoning shoe fetish, I didn’t look too hard for shoes and consequently, I didn’t get any.  My entire shopping trip, including lunch and dinner, came in under my $200 budget.

I contributed 10% of this week’s check to my IRA and paid my bills.  I contributed enough to the my My Own Home savings account to bring the amount saved to $8,000 even.  I still haven’t paid the camera off of my credit card, but that’s because I have to deposit some cash I received from Mister Ant’s mom for her end of Mister Ant’s birthday gift.  Once I do that, the card will be cleared off in time for the end of the month.  Then less than $100 will remain in my checking account to last me until the end of the week when I get my next check.

My next check is already spent.  I have to pay my car note, my share of May’s rent and April’s household expenses, and contribute both to the IRA and the My Own Home accounts.  I am considering giving less to the IRA account because I want to keep my money more liquid since I’m contracting, and because I want my house sooner rather than later.  But I’m trying to remain disciplined.  It’s not like a 401K where I’d be contributing and getting a match without even thinking about it.  If I don’t make the conscious disciplined effort to save, the account won’t grow.  And I’ll have to make catch up payments later on if I want to increase 2008’s tax deduction for contributions - who knows what kind of money I’ll be making on my next gig, or for that matter, how long it will take to get my next gig.  That thought encourages me to contribute and save while I still have the wiggle room to do so.  What do you think?

Anyway, that’s what happened to last week’s check. 

Mister Ant’s mother and I both chipped in to get him a videocamera for his birthday.  Yay!  He is so happy with his gift.  But I put it on my credit card and the end of the month is coming, so I gotta pay it.  I also have to pay my other credit card too - the one that my toll paying service charges when I travel, which is what I did last weekend.  Also, I need to pay my cell phone bill, next month’s car payment, this month’s share of the household expenses, and oh yeah, I want to put some money in my IRA and in my My Own Home savings account.

Everything I just mentioned takes priority over my shopping trip with Sistah Beginner tomorrow.  She is contemplating a move - she was accepted into an affordable housing program which she was just plucked off of the months-long waiting list to receive, but it would require finding new day care for her son, skipping out on the last four months of her lease, putting down about a thousand dollars down payment for the new place (she’s currently $400 short), moving expenses, and May’s rent.  By the end of this month.  And if she could afford to not go shopping with me tomorrow she would, but she has to go to work in suitable clothes that fit, and the baby she’s expecting is stretching her out.  Her issues make mine look miniscule in comparison.  Let’s all pray for Sis, please.  I am actually thinking about financially helping her along the way if necessary if she decides to make this much needed move to a larger apartment with a lower rent.  It’s something she and her children need.  I see how hard she is trying - how seriously she is taking all of this.  If she needs my help, she can have what I can afford to give.

But whether or not I help her out, I’m going to have to be really tight with my money in the coming weeks.  That will be on my mind as I’m out at the mall with her, being tempted by all those things.  Let’s see my attempt to squeeze through the weekend… 

I took the long way home from work yesterday evening.  Fresh off of the heels of hearing that it’s possible that I may be working on my project a little longer than I’d anticipated, I was feeling pretty good in all of the sweet spring-y splendor.  I dipped into a few stores, looking around, hoping I’d find a few nice belts, ‘cause I need some.  But of course, there aren’t many belt stores.  So I found myself looking at pastel windbreakers, cute flats, pretty blouses, and sexy sundresses.  Of everything that I’ve seen, the thing that I was most tempted to buy was shoes!

I picked a few up.  I put them down.  I checked the prices.  I did the math in my head.  I thought about those few more paychecks…

And then I remembered my spending policy.  I don’t really like to spend money unless I have a firm grasp of what my checking account looks like, and yesterday afternoon I wasn’t too sure about how much damage I had done earlier in the day.  The shoes will be there today… and Friday… and over the weekend.  Sistah Beginner and I are supposed to go tax-free outlet shopping over the weekend.  I’m going to do some math, set a shopping budget, and have some fun this Saturday.  I’m hoping to buy a nice spring suit (and maybe matching shoes), since I’ve been invited to go to an afternoon tea later this month.  I might have to pick up Sistah Beginner’s method of taking cash with me so that I don’t overspend, because I am really, REALLY excited!

I blew my entire paycheck this weekend.  But it wasn’t all bad.  I paid the remainder of this month’s bills, so the only stuff I need to be concerned about are my share of the household expenses and next month’s car note.  With the leftover money, I contributed to my IRA, put a few hundred in my house savings, and then I FINALLY paid my tax bill.  I managed to cut it in half by contributing more to my IRA for tax year 2007.  After that Sistah Beginner and I went out for tax-free outlet shopping!  Yay!  Sistah Beginner needed maternity clothes, and I am in constant need of clothes for work.  I stuck to my budget of about $100, and came away with two microfiber stretch camisoles, four button-down blouses, and a gang of trouser and athletic socks.  I’ve done better with $100, but I’m upping the quality of the clothing that I’m buying, so I’m satisfied with the trip.  I still could use some shoes and some trousers.  Why are trousers so hard to find?  Sheesh.  I didn’t like the fit of any of the ones I tried on.  And by the time I finished shopping, my lower back was killing me.  I hate shopping.  But I love that I have the discipline to set a limit and stick to it.  (Sistah Beginner stuck to her budget by bringing an envelope with cash in it - she stopped spending when the cash ran out.  I am so proud of her!)  I have a little over $100 left to last me the week. Oh yeah, and I didn’t use any credit.  Yay!

Sometimes we have the best of intentions when it comes to our finances… and as we try to take those incremental steps to clean up the messes and build for the future, life happens.  We have to stick and move - roll with the punches.

Sistah Beginner got her tax refund.  She took the entire amount to fix her thirteen year old car.  Sis just didn’t want to buy another car - if she bought a new one, she’d have a car payment, and any car she could afford to get outright would probably have as many problems as the car she just fixed.  Sis figured she might as well hold on to the car that was familiar and gamble on unknown problems.  It’s important to keep control over finances as much as possible for one very important reason.  Not long before her little boy had his second birthday, Sister Beginner found out that she is expecting her second child.  

Besides the baby news, there’s more to deal with - she isn’t too happy with her job and she needs to get another one that makes more money.  Like Moneymonk often says, bringing in more income can do more for you, quicker, when you’re trying to improve your finances.  Sis is trying to figure out how to make a job transition when you’re pregnant.  Who’s going to hire someone who’s inevitably going to be on maternity leave almost as soon they walk through the door?  Besides that, she’s got to rebuild her "baby infrastructure."  Because her apartment is small, lots of her baby supplies have been given away to friends with infants, and she’s going to have to start all over again, especially if her new little one will be a girl.  And speaking of that small apartment, she’s looking for a bigger place.  Her one bedroom just isn’t enough for herself, her live-in boyfriend, and her soon-to-be-two children. 

It’s not that she is giving up on cleaning up her credit or building up her savings, it’s just that in her journey, things are happening that are making it harder for her to worry about those two things.  Just paying the rent on time is a struggle.  Staying current on each of her bills is a struggle (but she’s doing it, which is one of her major improvements!).  She’s always juggling, bargaining with the calendar, robbing Peter to pay Paul, and now there’s a race against time to get certain things done, like get her son into cotton underwear so that she doesn’t have to buy both expensive Pull-ups and expensive diapers at the same time.  She doesn’t want public assistance.  She’ll take WIC and children’s health coverage, but not food stamps and not cash assistance.

You may be tempted to ask about the boyfriend and his role in the household.  He is working full-time and contributing to the household expenses.  But like Sistah Beginner, he’s cleaning up old credit problems, paying a car payment, and looking for a job with more income, at Sistah Beginner’s urging.   We’ll see about a second job.  Needless to say, the finances do put a strain on their relationship.

She and I talk and brainstorm about career options, budgeting ideas, etc.  I’ll be there for her throughout this whole process.  We’re hoping for the best.  But in the meantime, time continues to march.

Everybody is bugging.  Dow up.  Dow down.  Dow down, again.  Interest rate down, down, down.  I know, it’s scary.  Sistah Beginner and I were talking about it just the other day.  Gas is up.  Food is up.  Energy is up.  She is in the process of finding another place to stay under an affordable housing program.  She’s been paying off bills, getting her credit straight, and worrying about rising costs, just like the rest of us.  Even though she doesn’t have a 401K losing value to fret over, she still has a growing child to feed.  But this is what we came up with:

It’s cool.  Really.  Chances are that if you’re reading this, you’re into managing your money.  You already know all about controlling your spending, diversifying your investments, coming up with spending plans, getting rid of debt, and puttting money away.

So chill.  You are ahead of the game.  Come what may, you’ll make it, and so will I.

This is a short post, ‘cause I’m on the grind, putting in my time at work and trying to enjoy life in between.  When I finally get this all balanced out, I can devote more time to the blog.  But I just wanted to make sure I reminded you that everything is going to be okay.  Stop bugging.

When can spending because of emotions be good?  I’ve read many times about the pitfalls of emotional spending.  But I think most spending outside of necessities is emotional.  We buy things because we want them.  That wanting comes from somewhere, and if it’s not wanting something we truly need, the want probably stems from something that we’re feeling.  The music makes us feel good.  The plays inspire us.  The traveling helps us unwind.  The food tastes good and makes us feel fun.  We like being with others, so we spend money sometimes on the time we spend with them.  I don’t think there’s anything wrong with that.

I spent emotionally this weekend.  I ate out this weekend twice.  You know I don’t eat out much!  I ordered pizza and buffalo wings for delivery on Friday, and then I went to a late lunch with my best friend Sistah Beginner on Sunday.  Twice in three days!  And you know what, it was totally emotional.

People caution others against too much frugality, because sometimes it can lead to overspending to compensate for the emotional feelings that can come from feeling deprived.  I don’t disagree with that altogether.  I think it does happen to people.  But even when I spend emotionally, I don’t spend crazily.  Friday’s pizza and wings was a direct result of me being hungry, tired of New Year’s leftovers, and tired of craving pizza and not getting it.  I had the money, so I spent it.  In retrospect, it was worth every penny to be able to crave something and get it.  I went out to lunch at a diner with Sistah Beginner because she invited me, and we don’t see each other nearly as often as we should.  I had a great time, and spent less than $20 on the meal and tip - in fact that meal cost less than the pizza and wings (and for the record, even the pizza and wings lasted us until Sunday).  In retrospect, it was worth even more than what I paid to break bread with my homegirl.  I still have money to get by between now and the next time I get some income.  I knew the emotional reasons why I was spending the money at the time that I made my purchases, and I controlled the amount of my spending according to what I could afford.  My point is that emotional spending does not have to be synonymous with overspending.

Sistah Beginner, on the other hand, has admitted to emotional spending.  She’s got a lot going on right now, personally, in some of her relationships.  She wants to advance her education and her income, but she’s finding the task difficult, and is sometimes discouraged by the amount of difficulty involved.  She is dissatisfied with the outcome of some of the choices that she’s made in the past.  And sometimes, it all gets emotionally draining.  She admits that she eats out more often than she should - it’s a way of treating herself.  She goes to the movies.  But it adds up and her money is too tight - she is overspending.  At some point she will have to, among other things, get better control over how much her emotions affect her spending, and I know that she can do it, because I’ll say it again: emotional spending does not have to be synonymous with overspending.