4.25.2008

Update on the financial diet because I know you care.

I thought today would be a good day for an update on my financial diet. Remember this post?

I've updated everything in red.

  • I was going to attempt the no spending money on frivolous things for a set amount of days. Then I introduced myself to myself and knew that was not possible. My willpower is to weak and Etsy.com sends me telepathic messages hourly. So I am limiting myself to $100 a month in frivolous purchases*. So far I've done well with the spending on frivolous crap. I still frequent Etsy on a regular basis but I've cut spending else ware. I went to Old Navy last weekend and walked up to the register with 2 shirts, one adorable ring and 2 pair of flip flops. By the time I made it to the register I had only the flip flops left. I realized I didn't need 2 more tank tops and jewelry is the last thing I need. Especially when I can get a way cuter one on Etsy. And, yes, I did lay the stuff down I didn't purchase on the racks by the register. Sue me.
  • I will increase my retirement contributions 10% starting next month. I want to retire a millionaire and have hot hunky men feed me grapes and massage my crusty old feet all while admiring my immense wealth. I actually have not done this. But I swear there's a reason! My employer's have been discussing opening a 401 (k) for me to participate in and matching some of the contributions. I'm waiting to hear if this change will take place before I make another move. I'm still contributing to my IRA each month and I did send in a larger amount by April 15th for my 2007 contributions.
  • I will pay off my higher interest rate credit cards by June 2008. DONE!
  • The credit card that's a low interest rate but a higher balance, I will keep paying the monthly payment but increase the payment by 50%. Just call me slacker. I did attempt to call the company and request that my monthly draft be set higher but I was on hold for 20 minutes and got nowhere. I should have called back, but I got lazy.
  • I will continue to pay extra towards my principle for my house. But I'll do it on a regular basis, even it's only $5 extra. DONE! I've also paid my house payment through the month of May so my next payment is due July 1st. I will continue to pay early so if I get into a bind I'll have a few months cushion.
  • I will start the search for a higher interest savings account. Currently my savings account pays 3.65% which isn't too bad, but I bet I can find better. Anyone have suggestions? I did some research and it seems that the savings account I have set up now is the best I can find. I did find some savings accounts with higher interest rates, but they were all variable which means that I'd get a good rate for a month or two and then it would be less than 2%. For now I'll keep the money where I have it.
  • By April 30 of this year I want to have saved $6,200 in my savings account to be used for emergencies and to sustain my household during the lean months of October through December 2008. I'm absolutely STOKED to report that I achieved this goal. And then some. I'm not gloating, I swear. I have such a hard time saving and leaving it there. This time is different. I fully intent on keeping this money put until I absolutely need it.
  • Finally, and this one's gonna hurt, I will stop buying coffee in the morning on my way to work. I only spend $6.75 a week on my morning coffee, but that's almost $30 and I can apply that to my principle payments for my house. Eh, I sort of achieved this goal. I stopped for a few weeks. Now I get coffee maybe twice a week. I could be going to Starbucks and spending over $3 so I feel like I'm saving at least a few dollar.

Overall, I'm quite proud of myself. A few other bills have crept up on me like Jackson's hospital bill from when he was born and my Homeowners Association dues that are way past due. But I'm slowly chipping away at my deficit and for the first time in a long time I think I owe less than I have saved.

YIPPEE SKIPPY!

7 comments:

Jess said...

This is awesome! You are doing such a good job! I'm really impressed.

Also, can you change your credit card draft amount online?

Elena said...

Go you!!! I'm so proud of you, darling! We've been doing really well financially, but the last few weeks have been a spending frenzy. No lie. By the time I buy the cat tree for the living room today, I think we'll be up to almost a grand in frivolous expenses over the last few weeks. EEP! But hey, we just deposited a $1100 tax refund check, so I guess we're allowed to play a little bit, right?

SLynnRo said...

Good for you. I never keep my damn finance goals. I have some credit card debt from before we were married that I want to pay myself, and very LITTLE progress has been made.

Raven said...

That is fabulous!

I'm just happy that we are doing so well even with me not working.

Rebecca said...

Congrats! I too finally owe less than I have in savings (excluding student loans). My challenge now is to save up for a down payment AND retirement. I feel like I can't do both - well I can, but I won't reach the down payment goal as fast....what to do?

theneatos said...

Holy crap! You rock! I am super impressed. It is amazing how far a little bit will go. I am going to have to keep up with you ... hopefully your success will inspire me to be more responsible.

Danielle-lee said...

Yipeee for you!!! I started a Roth IRA this week-does that count for anything??