Tag Archives: debt

Month 20 – $35,224 & The Holidays

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I’ve been on a bit of a spending spree lately, but I can justify most of it on items I really needed.

Canon printer – Goes for $130, got it for 69.99. The printer I was using before an Epson Stylus CX 4200 works fine but it’s also from Bush W’s second term. Just about time for a replacement..
AppleTV – Got it for “free” as part of the rewards program on my credit card. I will use this, possibly subscribe to Hulu Plus, use the HBO Go account through my parents and our PS3 and get rid of two of the three boxes we have in the house once contract is up. For the most part, two TVs go unwatched. Speaking of, I just checked my FIOS bill and my 1 year HBO / Cinemax credit was about to run out. That would be an extra $25/mo for something I barely watch as it is (other than when True Blood is on).

Audio-Technica ATH-M50 Professional Studio Monitor Headphones – I listen to music often on my iPhone / MacBook Air. The Bose ones have always amazed me with the base and clarity with high notes. However not worth the $300 I would pay if I got them in the mall. The current pair of headphones I have are from 2009 and not particular comfortable on my ears for more than 15 minutes.

Universal Bathroom Fan Replacement Electric Motor Kit – Only like $15 and I used money my friend gave me on a Gift Card to buy this. Basically the fan in our bathroom sounded like it was ready to die and was embarrassing when friends would use it and heard this loud grinding noise.

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Infinity USB Digital Foot Control – Used one of these first when I was an Executive Assistant in a previous life. I plan to start doing some part-time work in the transcribing field. My goal is for an extra $100/month. That can cover gas, eating out and various other things. Transcribing is based on both speed and accuracy. It’s hard to do both clicking Play / Pause constantly. Haven’t had time to really think it through fully between picking a company and how much of my time per week I want to dedicate toward this. 5-8 hours is probably a good ballpark range.

On top of that I’ve been buying some gifts for my bf. I do these things out of both love and the understanding he is getting me something for Christmas too. Probably not spending over $250 and still have more shopping to do. Haven’t bought anything for my parents, we kind of have a mutual understanding that times are tough and I have most everything I truly need.

My credit card balance was 0 but is now up to $595.

Also a quick recap of Thanksgiving. I ate way more than I should of and felt extremely guilty about it. I’ll spare you the picture of my stomach sticking out like I’m pregnant. Also after a couple of days I was not really willing to eat unhealthy leftovers anymore. So a lot of food went in the garbage. That’s what happens when people cook for a small army and the number that shows up is markedly lower than planned. I’ve been to the gym a few times in the days since and think I’m on the right path.

The overeating really made me think about life in general. How people eat food to fill an emotional void. I’ve met three people who either had a gastric bypass or lap band surgery. In some cases some of their weight gain may have been preventable but for me, paying proper attention to health is my religion. Too many people in my life had to deal with the effects of bad health. I’m going to fight like hell not to be a statistic. My BMI is presently 32.5. Above 30 is obsess and 25-29.9 is overweight. Tom Venuto’s Book The Body Fat Solution has helped me understand more about why I’m getting fat. The social element was and continues to be the hardest part of all, eating out with friends. Having a taste for a particular item on the menu, drink or a dessert and underestimating or completely disregarding the number of calories it contains. Then repeating that same cycle day after day, week after week, month after month. I’m done, I’ve reached a Picard The Line Must Be Drawn Here moment.

Last but not least we’ve had some crazy ice storm here in Dallas. Plenty of accidents left and right, a friend had to get his car repaired for hail damage. I’ve seen ambulances zooming buy on multiple times a day. Be safe, Happy Holidays. Remember People First, Then Money, Then Things. Now you say safe.

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So I saved $1500 / Plumbing Bill / Vegas

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So I saved $1500 today…

That statement is subject to interpretation. Long story short, Nissan North America recently issued a recall on my soon to be 6 year old Altima.

Dear Nissan Altima Owner:

Nissan has discovered that your Altima may be equipped with an improperly calibrated Engine Control Module (ECM) that may incorrectly detect engine valve closure as engine knock. Due to this issue you may experience some minor drivability symptoms and a slight decrease in fuel economy under certain driving conditions.

What Nissan Will Do

To correct this condition, Nissan is conducting an Emission Recall Campaign to reprogram the Engine Control Module in your vehicle.

For vehicles with greater than 50,000 miles, the manifold catalyst will also be replaced due to possible prolonged exposure to higher than anticipated exhaust gas temperatures. Any cracked manifold catalyst or front exhaust tube with catalyst will be replaced regardless of vehicle mileage. This free ECM reprogramming service should take about one hour to complete, but your Nissan dealer may require your vehicle for a longer period of time if catalysts need to be replaced or based upon their work schedule.

I dropped the car off Tuesday evening and was originally told car would be ready by end-of-day. Next I get a call saying they need to order the part but could be provided a loaner. My loaner was a 2013 Nissan Sentra S, equipped with a 1.8L engine, uninspiring electric steering, cloth seats, no sunroof, hubcaps and a no-frills stereo system. Great MPG (32+) and a smooth current-generation CVT were its only redeeming qualities.

Some may remember July 2012 I had a hole in my exhaust system that two dealerships were both unwilling to fix. Midas would’ve done it if I ordered the parts, but combined would be in excess of $1200 out-the-door. So the fact a year and a half later the dealer would be fixing my car free of charge brings an entirely new meaning to the expression good things come to people who wait.

Below is a list of the item breakdown:

Qt

 Part # Part Description Unit Price Total Cost

4

 14069-JD00A Bolt

4.83

19.32

8

 14069-ZN50A Bolt

0.12

0.96

1

 20692-65J00 Gasket-Catalyst

4.46

4.46

1

 20010-ZX10A Front Pipe / Tube-Exh FS W/C

670.00

670

1

 20691-19U00 Gasket – Exhaust / Front Pipe Seal

10.77

10.77

3

 01223-N0021 Nut

0.92

2.76

1

 140E2-JA92E Exhaust Manifold

547.33

547.33

1

 14036-3TA0B Gasket Exhaust

32.70

32.7

5

 14094-JG30A Nut

0.87

4.35
Total Parts

1292.65

My interest in vehicles using alternative sources of energy runs deep. One in particular is the Nissan Leaf. As a reformed early adopter, I’m enamored by a vehicle that can propel itself without any polluting fumes, or the noise and complexity of an internal combustion engine.

The Leaf gets the equivalent of 129 city / 109 hwy, single speed transmission with instant torque.

Reasons against buying / leasing

  • Won’t own at end of lease
  • Heavy depreciation (especially if new model comes out in 2015), 35% after only 3 years, comparing around 50% after *6* years
  • Smaller than current vehicle
  • Limited range (100mi on the high end, but normally 80)
  • Current car is paid off and relatively low mileage (72k)
  • Battery life questionable in warmer climates / may deteriorate faster than expected
  • Got a boomin system in the Altima, superbass boombadootdoot, doubt the 3k I spent on that during my dumb and broke days will be recouped

Reasons for buying / leasing

  • Eliminate $150 in monthly gas bills (instead use 20-40/mo in electricity)
  • Lower cost of ownership
  • No pollution
  • Much quieter driving experience
  • Being able to boast to people about never having to ‘fill up’ when they complain about gas prices going up.

So unless I find some crazy good deal after the Leafs off lease I will stick with my tried and true Altima.

Onto another topic. On the subject of making home repairs, plumbing in particular…we decided to have some work done. The toilet in the upstairs bathroom would just run endlessly after flushing. Nothing like fighting with a toilet at 2am playing with the chain with your arm submerged in water while thinking about how exhausted you will be the following day. That and a fear of coming home to a flooded downstairs are what drove me over the edge. We also had some shower faucet issues. Turning on the cold water involved pushing your weight into the handle then turning, hoping the little gear mechanism inside would click and open the valve. We needed new stems, handles, and some other hardware. Whoever fixed it before used the wrong part which is why it never really operated right to begin with. $417 later (bf gave me $150), the bathroom is fine… except for an annoying problem where mold is turning some of the caulking around the tub black.  That’s another job though. May do it myself to save money, or just call someone and hope they don’t try to rape me….

Know I’m bouncing around here, but during the last week I got to experience the beautiful place that we all know and love as Las Vegas. It really rivals NYC as being a city that doesn’t sleep. Great places to go shopping, sight seeing, shows, gambling and drinking. It was Halloween on the first night we landed, I dressed up in a Star Trek uniform and hit up a local gay bar. $20 cover to get in, though drinks were pretty reasonable. I took out $200 from the ATM and came back with 0. Mix some light shopping with that and really didn’t do so bad. My bf and one of our friends got two rooms, both covered the cost.

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Two of our friends in DFW just got married and we had lunch with them as  Vegas was their surprise Honeymoon destination. Enlightening to see how my friends who have debt spent a ton of money shopping and putting it on credit cards. I shopped very lightly, only buying two pieces of clothing and drinking lightly. My friends know I’m cheap though. O:) Had a great time, I need to go on trips more often.

Also funny as I write this I get notification my AT&T wireless bill was processed. I pay 102.39 a month for it, this month I got a tax credit so it’s only $99.52. I use my phone more than anyone else I know.

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Still a lot of money for a *service* though. Between cell and home tv / cable 16% of one paycheck goes toward these entertainment expenses. 10% goes to fuel for my car. I was spending 40% of my check on food. 62% of a check goes to Sallie Mae.

I left my wallet at home yesterday accidentally. Had two containers of Mott’s apple sauce and some raw almonds to eat. I had a hearty breakfast and was only mildly hungry during the day. Bf went out with a friend to see an opera and have dinner. I felt liberated not paying anything for food. Typical Friday I’d spend $40-$60 depending on where I went.

Budget / Loan Payment Breakdown

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As promised, I decided to make a budget. I used the example No More Harvard Debt Provided and catered it to my own lifestyle.

I just had a holy shit, aha moment. I’m basically shelling out every dollar of my take-home pay and putting it toward my bills. I need to change something stat. Time to reflect and figure out where I really want to spend money and which areas I can cut back.

Debt Free 32 Budget

Debt Free 32 Budget

Payment Summary

Event Amount Term Period
Loan $37,665.00 1
Payment $1,000.00 40 Monthly
Payment $497.66 1

Payment Schedule

Event Loan Payment Interest Principal Balance
Loan 1 $37,665.00 $0.00 $0.00 $37,665.00
Payment 1 $1,000.00 $133.40 $866.60 $36,798.40
Payment 2 $1,000.00 $130.33 $869.67 $35,928.73
Payment 3 $1,000.00 $127.25 $872.75 $35,055.98
Payment 4 $1,000.00 $124.16 $875.84 $34,180.14
Payment 5 $1,000.00 $121.05 $878.95 $33,301.19
Payment 6 $1,000.00 $117.94 $882.06 $32,419.13
Payment 7 $1,000.00 $114.82 $885.18 $31,533.95
Payment 8 $1,000.00 $111.68 $888.32 $30,645.63
Payment 9 $1,000.00 $108.54 $891.46 $29,754.17
Payment 10 $1,000.00 $105.38 $894.62 $28,859.55
Payment 11 $1,000.00 $102.21 $897.79 $27,961.76
Payment 12 $1,000.00 $99.03 $900.97 $27,060.79
Payment 13 $1,000.00 $95.84 $904.16 $26,156.63
Payment 14 $1,000.00 $92.64 $907.36 $25,249.27
Payment 15 $1,000.00 $89.42 $910.58 $24,338.69
Payment 16 $1,000.00 $86.20 $913.80 $23,424.89
Payment 17 $1,000.00 $82.96 $917.04 $22,507.85
Payment 18 $1,000.00 $79.72 $920.28 $21,587.57
Payment 19 $1,000.00 $76.46 $923.54 $20,664.03
Payment 20 $1,000.00 $73.19 $926.81 $19,737.22
Payment 21 $1,000.00 $69.90 $930.10 $18,807.12
Payment 22 $1,000.00 $66.61 $933.39 $17,873.73
Payment 23 $1,000.00 $63.30 $936.70 $16,937.03
Payment 24 $1,000.00 $59.99 $940.01 $15,997.02
Payment 25 $1,000.00 $56.66 $943.34 $15,053.68
Payment 26 $1,000.00 $53.32 $946.68 $14,107.00
Payment 27 $1,000.00 $49.96 $950.04 $13,156.96
Payment 28 $1,000.00 $46.60 $953.40 $12,203.56
Payment 29 $1,000.00 $43.22 $956.78 $11,246.78
Payment 30 $1,000.00 $39.83 $960.17 $10,286.61
Payment 31 $1,000.00 $36.43 $963.57 $9,323.04
Payment 32 $1,000.00 $33.02 $966.98 $8,356.06
Payment 33 $1,000.00 $29.59 $970.41 $7,385.65
Payment 34 $1,000.00 $26.16 $973.84 $6,411.81
Payment 35 $1,000.00 $22.71 $977.29 $5,434.52
Payment 36 $1,000.00 $19.25 $980.75 $4,453.77
Payment 37 $1,000.00 $15.77 $984.23 $3,469.54
Payment 38 $1,000.00 $12.29 $987.71 $2,481.83
Payment 39 $1,000.00 $8.79 $991.21 $1,490.62
Payment 40 $1,000.00 $5.28 $994.72 $495.90
Payment 41 $497.66 $1.76 $495.90 $0.00
Grand Total $37,665.00 $40,497.66 $2,832.66 $37,665.00 $0.00
This amortization schedule is powered by: copyrightTimeValue Software

I Attended a Top College in the Nation / iPhone 5S/5C

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I often have a bitter attitude when looking back on my education. Almost $50k in loans for three pieces of paper. I was very gung-ho and optimistic about the future while going to school, but the harshness of reality and a down economy weakened my spark.

Today, my alma mater sent me an email about how their school ranks #4 amongst private colleges and #31 overall.

“WE HAVE SOME AMAZING NEWS!

Quick, what are the top colleges in the nation?Harvard? Princeton? How about St. Joseph’s College?

Earlier this month, The Washington Monthly released its annual list ranking higher education institutions across the United States. In the category of “Best Bang For Your Buck,” St. Joseph’s College New York was ranked No. 4 among private colleges, and No. 31 overall, edging out such renowned schools as Purdue, Rutgers, Michigan State and Barnard.

According to The Washington Monthly, “Bang For Your Buck schools are those that do the best job of helping nonwealthy students attain marketable degrees at affordable prices. And it is a pretty exclusive list: out of the 1,572 colleges and universities in our broader rankings, only 349 made the cut as best-bang-for-the-buck schools.”

St. Joseph’s College always strives to provide our students with a top-notch education at a great price, but we need your help to pass along that value to future generations. Please consider making a gift to SJC to help keep education affordable for all the students who will follow in your footsteps. “

For Masters Universities, St. Joseph’s ranked #11 with a net price after Pell Grants of $9807. 32% of students received the grants, 65% graduation rate and 6% rate of students defaulting on their loans. I couldn’t qualify for those based on my income at the time, but those numbers are on-part with my expectations. Around $500/credit * 36 credits MBA program = 18000.

I do think the extra 18000 spent helps distinguish me from some other job candidates. In the past it may have been in a detrimental capacity, applying to positions I was grossly overqualified for ($13/hr the credit union telephone member service rep position comes to mind). Time will tell, but proving myself in this industry will speak much louder.

Today Apple announced some new products, the iPhone 5S and 5C.

For the 5S, Apple made the switch to a 64-bit architecture. Twice the CPU and graphics performance of the 5. I won’t be eligible to upgrade my phone without paying a penalty for another year and still have a great grandfathered in data plan. So long story short, I’m saving my money and not upgrading until a year from now. The 6 will probably be out by then. There are still some very compelling features though… It’s a want not a need. My current phone works more than well enough…

I also use 8-10gb per month in data on my unlimited plan with AT&T. Without the unlimited plan factored in this would run me $120/mo plus taxes and miscellaneous fees vs the $102 I spend now…

So I have this friend…

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More like an acquaintance. A couple years younger than me, has an expensive habit. Automobiles are his addiction of choice.

  1. Dodge Magnum
  2. Nissan Altima
  3. Nissan Armada
  4. Jeep Cherokee SRT8
  5. Dodge Charger Super Bee

all within a 6 year period. I tried to get him to see how the impact of his decisions were affecting him financially but it fell on deaf ears.

He has a full-time job and also does car tinting jobs on the side. I joked with him last year that he’ll be selling his car again. He’s taken a number of financial hits just for the sake of this hobby of his. Both in terms of how the money could be applied to any consumer debt and used to purchase assets that appreciate in value. Last month he did as expected.

“I need to get some financial stuff in order and make some new priorities and have decided to look heavily into a 2014 jgc limited“. I’m not sure if getting a 2014 model year vehicle with an msrp starting at 35k is true to that vision. He put 17k worth of work into it and is looking to sell the car for 38,500.

He’s laid down massive amounts of cash on the current ride:

400 New lock pick with cables and two cameras
250 afe intake
1100 mmp s2 manifold shaved and painted
70 catch can
100 New 2012 front and rear badges
400 Predator and tune from johan
350 mangaflow mid pipes
800 slp lm1 with install
800 oem vented fenders
9000 repaint with all plastics smoothed and blacked out/color matched
1000 grip bumper on the way
1400 sniper hood in my shopping cart ready to go
900 new oem (not replicas) hid headlights
100 hid fogs
200 limo tint”

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$16870 on a depreciating asset, not including the acquisition costs. Ouch!

To his credit, he is working 60 hours a week as manager for a popular retailer presumably earning more than I make now at 40-45 hours a week. Difference is much smaller once cost of living is factored in. I’m pretty much over working in a store or at a bank for a couple years. I’d do the corporate offices of a company with stores across the country, but working in the store each day is not my cup of tea. Unless they want to pay me a handsome increase in salary…

So more variables at play on the job front. Still no offer from the place I did over 5 interviews at 2 weeks ago. No update as people were on vacation. Another company my bf has been interviewing at in PA may possible want to fly me up there to interview for a separate position. My gut says PA isn’t the place to go though. Looking at lots of other states such as Colorado and NJ. As once said in the year 2000… Too soon to tell.

Need to have an intervention with my McDonalds friend with a Bachelors. One of these days… One of the challenges to making a switch when you’ve been in retail so long is companies are reluctant to hire for anything else. Get pigeon-holed into a corner and competing against more qualified candidates is damn near impossible. I still have hope though. $8-9/hr with student loans in deferment and thinking about going back to school is just getting him deeper in the hole.

For your entertainment here is the car being put up for sale. Low mileage and exclusive, but not a practical buy in the slightest. Last but not least thanks all who have been reading my blog and learning about my journey. Up to 6k visits so far since April 2012. Surprised there’s that level of interest to be totally honest.

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It’s Been a Freakin’ Year of Blogging

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The Year In Review

April 7, 2012
I reached a breaking point in my life where I was no longer willing to live in a state of denial with my student loans. Looking back on it all, it doesn’t really feel like I’ve been hard at this for a year.

Back then, my debt load was a whopping 45159.35.
41,971.74 to Sallie Mae
3235.31 in Credit Card Debt.

Today April 8, 2013 I have $332 of credit card debt and that’s by choice. Looking at the abysmal return of using my debit card for every transaction (1% interest after 10 transactions in my checking account), I can have enough small transactions to continue earning that but on my larger purchases I can earn money through Citibank’s Thank You rewards program. Still the idea is to use credit sparingly and I’ve done a pretty good job of that.

As for student loans, I recently broke a significant financial hurdle. Down to 40,775.26. So at a quick glance I knocked $4384 off my debt on an adjusted gross income of just under $30k. So roughly 15% of what I earned for the year went to paying down the debt. On top of the $1500 down payment toward our home purchase (most of it got reimbursed as part of ourrelocation package).

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The older I get, the faster time seems to fly. 8 years ago I bought my first new-ish car, a 2003 Nissan Maxima. It was powerful, way classier than my Oldsmobile and also a bit of a money pit. I spent a big chunk of cash on 60k maintenance, tune-ups, getting brakes redone and the like. If I didn’t think the transmission would be going soon on it I might have kept it longer. The car I replaced it with also a Nissan has been fairly problem free in the next 5 years I’ve owned it.

Wouldn’t have thought in 2009 that I’d be living with a guy, much less all the way out in Texas. Definitely not my old stomping grounds on Long Island, but that isn’t entirely a bad thing. The people here are nice, overall it is a safer place to live, cost of living is half of what it was up north.

Today after much deliberation I decided to purchase a road bike. A 42cm frame, steel Takara Kabuto. The price was $199 plus taxes so about $215 total cost. I had looked at Craigslist and several retailers that weren’t Amazon and didn’t like what I found. Either too old, required too much maintenance or too expensive. The last thing I want is to purchase someone else’s headache. I’m typically a mountain bike guy but road bikes are better for distance and I’d like to do a little bit of sight seeing in Dallas. 🙂

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The real reason for the bike purchase is related to health though. Back in 2005 I would ride my bike several times a week and was about 35 pounds lighter than I am today. If I can get closer to that 185lb ideal vs 220, the cost is worth it.

Getting Out Of Debt – Automation

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One of the videos that really inspired me.  It’s kind of like massive weight loss, no one thinks you can do it until after you have done it.  I’m still wondering how the pieces are going to come together with my salary being what it is.  There are a lot of options here, but regardless I’m going to put a huge dent in this baby.

Breaking the math down without including interest…

250.00 a year x 52 weeks = 13000
My tax return has historically been above 1000/yr, so add another $20 each week to that.

14000*3=42000. That’s not including any bonuses I get or raises along the way.  A couple grand short of the goal, but surprisingly close.  It’s a high percentage of my income, which I may have to adjust at some point.  Going with it for now.  I’m running lean next few months, with a minimal emergency fund, student loan payments on-hold until my credit card is 0 again.  Also saving for this June townhouse downpayment ($400 of $2000 saved so far), $72 in my other bank accounts until I’m paid.  I have over $10k of available credit if I needed to access it, but to me that isn’t even an option.  It’s good to see there is light at the end of the tunnel.  I will post less over the next few days than I have been, but like anything else this is still shiny and new starting out.

4/8/12 Snapshot…

4/8/12 Snapshot of Sallie Mae Loan StatusImage

Paid down only about 4800 of this loan over a 4 year period.  Percentage-wise that’s a mere 10%.  This is a reminder for me that things need to change.  Paying the minimum isn’t working anymore.  At 300/month, the interest alone would take 6 months to pay off.  Then the remaining 1800 would go towards the principal.

I plugged the numbers into a loan payoff calculator.  The result is that at 300/mo it would take 193 months or 16 years to pay this off.  The loan payment after this year is supposed to shift to 121 payments at 453.51 starting 12/4/2012 and 9 at 296.23 starting 1/4/2023.   I will still qualify for income-based repayment based on my income for 2011 so it’s highly likely I won’t have to make any more payments for another year.  This is a unique opportunity to get my financial house in order and pay down as much of the principal as possible.  I don’t want to still be paying this off 5 years from now, much less 10, or pay $9000 in interest over that time.

Using The Inflation Calculator, What cost $9000 in 2000 would cost 11279.73 in 2010.  That’s approximately 25% more.  The math isn’t nearly as cut and dry with inflation, compounding, change in gas prices and all that jazz…but I honestly believe it makes more sense to make compromises now instead of down the road.  Especially when tax rates may change and the cost of living will inevitably be higher.

Ground Zero – My Challenge

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Wild!

1095 days. 45,159.35 remaining.

I graduated from St. Joseph’s College of New York with an MBA at the age of 24 and 42k of debt in 2008.  This debt is the aggregate total of my loans from 2001 – 2008, including Community College and Undergraduate Education.  I am 28 now, pushing ever closer to 30 and realized I need to do something with my debt before it gets completely out of control.

While my story isn’t as exciting as Mr. No More Harvard Debt, it is my own and no one else’s.  Everyone has to start off from somewhere.  Today April 7, 2012 I owe $45159.35 in debt to various entities.  This number is the culmination of student loans and credit cards.

The breakdown is as follows:
41,971.74 to Sallie Mae at 4.25%, currently on Income-Based Repayment Plan.  Still unsure if my interest will be covered at all.
3187.61o on a Chase Slate Card at 0%, which I believe is good until the end of the year.
47.70 to Citibank.

In 2011 I earned ~14000, working for effectively half the year up until we moved.
2010 I earned ~$13000.  Also essentially working half of the year, since I spent a couple months doing per diem executive assistant type work.  Long story which I prefer to skip right now.
2009 $~25000.  This was the most money I made in a single year.  I also worked in an  environment of mind numbing repetition and dreaded coming in each day after months worth of drama.  I quit to explore my options and my finances tanked as a result.

I will not divulge my income or that of my partner (yeah I’m gay) in this blog, for obvious reasons but he makes considerably more than I do.  I plan to get this debt paid off in the next 36 months.  That’s April 7, 2015 y’all.  It’s doable.  I plan to automate as much as I can and get a raise / promotion in the next 12-16 months.

I’ve been hit with a wave of adversity the past 9 months since moving to Dallas from New York.  I don’t want to dwell on it, but sharing it will provide some background as to my thought processes.

  • Got laid off after working for a company 6 weeks after being out of work for 6 months.  This company also bounced my last paycheck and owed me money for the days accrued between my last check and the day they closed up.  It appears they have violated the Worker Adjustment and Retraining Notifcation (WARN) Act by filing for bankruptcy and not giving any employees adequate notice.  I have filed a claim and would really like to get my money.
  • I was on unemployment for 4 weeks while I went on a massive networking campaign and collected about $1000.
  • Got a ticket for $178 from a cop on my way to a job interview I was already 45 minutes to.  I couldn’t find the building and decided to circle around the neighborhood.  Needless to say a cop was hiding and clocked me for 49 in a 30.  Settled, paid the fine and it is off my record.
  • Got $500 from my folks to help with my bills after my layoffs.  I didn’t ask for it, but definitely benefitted from it.
  • Prior to finding the job at that company, I applied to over 120 positions and went on about 10 different interviews including one at a company offering to pay me $30/hr.  After my third interview with no clear answer as to when they could hire me, I made the decision to try something else.

My 2008 Nissan Altima is paid off and I expect to get at least another 4 good years out of it.  I could sell it today and get ~$15k .  I put about 4k into it between upgrading the sound system, installing dynomat and hushmat in key places, along with a strut bar / sway bar, tinted windows, rims / tires etc. and my warranty is good till 2015 so no new car for me.  Some might call it foolish, but I enjoy these things everyday and it isn’t breaking the bank right now.

I just started a new job March 2011 at a company I feel is financially stable and has a great team of smart people working there.  This is my first time working in this industry, so my experience can’t yet command a higher salary.  I’d like to be making $50k by the time I’m 32.  My credit score is presently a 781.

Breakdown of my expenses are as follows:

$101 – Cell Phone (AT&T Wireless on iPhone 4)
$145 – U-Verse (Triple package with 18Mbps internet)
$150 – Gas (commute to work is only 10mi roundtrip)
$34 – Life Insurance
$30 – Haircut
$80 – Car Insurance
$30 – Car Washes
$125 – Entertainment
$200 – Food
$32 – Gas Bill
$15 – Rdio Music Subscription
$50 – Random Miscellaneous
$35 – Washer / Dryer Rental
$800 – Toward Townhouse downpayment, Need 1500-2000 by June 10th.

1827 in monthly expenses short-term, according to my best estimate.  My partner has been paying the rent since we moved here and I’ve been helping out as much as I can with expenses outside of that.

I am paying this debt off as much on my own without help from any outside sources.  I am continuing to research ways of making money on the side and continually develop my skills to start marketable in this fast changing economy.  I get paid semi-monthly, so my updates will be targeted around that timeframe unless I feel a reason to post otherwise.

We are also saving for a downpayment on a townhouse we’re closing on in June ideally.  It’s an FHA loan, so 3.5% down instead of the typical 20, but PMI applies.  Our combined income could pay for off in 2 years, but that is not the goal.  I will go into more detail on that in my next post.