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Question for you all ...

January 10th, 2008 at 02:52 pm


3.99% AmEx Blue vs 5.75% mortgage interest

DH and I are on a stringent budget for now. We do allocate 10% to retirement and are trying to juggle paying down debt while saving for the expenses(property taxes and Catholic school tuition) which put us in debt during a bout of unemployment and COBRA insurance)

Would you put funds above the additional minimum payment on the AmEx Blue (which is $200) toward the mortgage which has the higher interest rate?

It is our ultimate goal to pay off the house. I know that by paying off the AmEx Blue I'd have an additional $200 to pay toward the mortgage. But that won't be paid off for awhile and nothing is being paid toward the bigger goal.

Ideas, please?

Progress on my No Spend Month

January 9th, 2008 at 10:12 pm

Just checking in to stay accountable -

Nothing special, but sticking to my plan to conserve money and gas...

I have managed to stay out of the car two of the three days; DKs took the bus to and from school and I walked with the stroller to the bus stop. Beautiful weather here in the midwest (global warming?), or should I say "nice temps, lots of mud". Had the heat off two days and on at 65 at night. So saving some there ...

Today was my one day of the week I am using the car. I volunteer for lunch duty (supervision) one day per week at DKs school. I went to the bank, returned a plastic spatula for $4.99 plus tax to the store (DH has a utensil thing when he cooks things like pancakes and french toast) and then spent $3.00 on groceries (two items needed for remainder of week), went to kids consignment with six items (getting back $5.25), one bag donation to resale store, returned videos on day due back. I also went to two pet stores looking for replacement lightbulb for turtle's tank ($44 at one store! different brand but same wattage). Found exact item on ebay for $7.50 plus shipping. (Original one came from Petsmart for $16.00). Will buy item from $80 monthly miscellaeous household budgeted amount.

So I plod on through closets and bins and drawers coming up with an ebay bin (goal for next month).

So several days into my quest, I am up $2.00 from grocery store return and $5.25 from consignment. Also a HUGE deal: no shopping at the resale store when I made the donation!

Hope all are having a good week.

Second Job Income - Went to Vacation Fund

January 8th, 2008 at 12:10 am


My DH has a second job under the table managing some apartment buildings for my father. We live closer in proximity and there are a total of sixteen units (two buildings) the DH does general cleaning, painting and showings. The pay for cleaning the one is $75 (usually a total of four hours a month) plus we get the perk of the profits from the coin operated washer and dryer. My father is in no need of this extraneous income and lives quite well and grand in a huge house by himself. Any how, the change from the washer/dryer came to $47 and my dad paid my DH $100 ($75 for Dec cleaning plus $25 to serve a 5-Day notice). With the new budget in place and everything allocated or prepaid, I was able to put that money into a Ball Canning jar on the fridge. This is "VACATION" money for our big trip to Disney coming up in the summer. My children love the fact that the money is there and at the end of the month we'll be able to add it to the savings account with the big vacation money. I'm so glad I was able to plan things out and show DH that he is truly working for something special - a great vacation for his family.

I've decided to earmark my $20 Challenge Money for a small vacation in Nov/Dec for an overnight to an indoor water park hotel.

Anyhow, I'm somewhat please by the positive direction we're moving in as far as planning/budgeting. Thanks!

Drastic Declaration: It is a No Spend Month here

January 7th, 2008 at 04:19 am


I see that some people do a detox before starting a new diet. I think that I am in need of a sort of detox of the financial sort ... I read an interesting book called The Shrewd Christian by Neil Atkinson (a biblically-based finanical self help book kind of off the beaten path). It did challenge people to Institutionalized Poverty - living off of our surplus, etc.

No trips to Michael just because I have a coupon, no running into the video store to rent anything (has to come from the library), etc. etc. This party stems from my overwhelming desire to start a major declutter.

The only exception to this is the family outing on MLK day - DH has the day off and we are using a gift card for AMC to see "Alvin and the Chipmunks" and lunch out at Pizza Hut (though my school age readers have coupons for free personal pan pizzas) so it will be three pizzas for the non-readers plus salad for mom and dad. This is a newly institued family outing per month, so I won't go cheap on that as it will be funded mostly by gift card/coupons.

I will grocery shop at Aldi's two more times in the month of January (estimated dates the 16th & the 26th). I will put gas in the cars as needed (though I will not be driving needlessly and randomly). There are no birthdays in January that I need to shop for.

I am posting this publicly so I am accountable.

More Observation about the Home of Mom-Sense

January 6th, 2008 at 09:29 pm

I referred to my house as Land of Plenty in a recent post - everywhere I look there is stuff stuff and more stuff. We use maybe 20% of the stuff 80% of the time - is that right? I've heard that somewhere.

My children have their favorites - one is a reader and has a ton of books waiting to be read, one loves dolls and has her favorites, the sons - one loves trains, another blocks, etc. You get the picture ... I am going to go through every closet, nook and cranny and bin in the basement in 2008.

Every child will get a memory bin (a big one, big enough to hold schoolwork, Christening cards, etc.) and it will be big enough to grow into. I am saving the obvious heirloom items (christening gowns and Communion dresses). Because I plan on having more children, I am going to limit one bin per size and sex to baby clothes. As far as the maternity clothes go, I'll be going through it as well and some of the old stuff (like ten years old) is going going gone. Lets face it, I usually where DH's shirts and legging in those last few months. My non-pregnancy clothes are going to be scrutinized to the same degree.

Old VHS tapes, gone. The plastic toys from China which are of marginal quality, gone. Odd serving pieces in the cabinets, gone. Chipped Correll dishes, gone (on the underside, nothing to make us sick). Bad tupperware, gone. Things people have forgotten here - returned.

I've already found several collectible quality items in the basement which i am going to part with via e-bay. And three Sam's Club gifts which weren't given and can go back for $40+ dollars cash.

What does all this have to do with financials? Think of all the money that i've wasted (done a lot analyzing of that).

I went to Aldi's today and spent $100. That is about normal to feed my large family. What is unordinary about it is I am going to try two weeks without grocery shopping - ration the amount of milk and get creative about dinners (like scrambled eggs and bacon and waffles and such at least one night a week), etc.

Just some observations ...

Observations about my Purchase Habits and Personal Goals

January 4th, 2008 at 07:14 pm


The money I have spent at the resale store on my clothing has been not a success. I don't try things on (not reasonable with little kids)and I am drawn to things that say Ralph Lauren and Ann Taylor.

I don't try things on - I vary between sizes 6 stretch in Ann Taylor to 10 non-stretch GAP. Out of eight bottom purchased at an average of $4 only two are keepers. $32 - $8 = $24 waste (though all proceeds of the resale store benefit the county's domestic violence program)

Same with tops - what says is a M might have shrunk to a S. Or not fit right. So out of another ten shirts/sweaters at $4.00 three are keepers. $40 - $12 = $28 waste (above rationale).

I have passed these items on to my mother (who looks good in several of the items) and my best friend.

I am in need of some upkeep - I'd like to take 15 pounds off with diet/exercise/good food choices. Once I reach 120 I will buy myself a versatile set of clothing from Hanna Andersson (pants and skirt with matching jacket) and I will color my hair or get a perm or something to spruce myself up. My DH shared that by BMI at 24.87 in close to overweight. Sad. I started out at 115 and each child added some weight to my 5'3" frame.

Bargains at resale arent the way to go for me. More thoughts on shopping later...

Farewell Flex Spend Account - Last Reimbursement faxed in today

January 3rd, 2008 at 10:57 pm


Well, in 2008 we (mostly me) decided to give the High Deductible Insurance and Health Savings Account a try. I have set up the HSA with State Farm and have check writing privilages ($25 annual fee for maintenance) once we go through the $3000 that DH's employer fronts. All maintenance is covered (so things like annual exams for kids and ob/gyn pap/mammograms are covered) We will continue Rx through medco and I'm starting the year with 2.5 month supply.

Anyhow, the FSA had $120 left in it. I put through $71.50 for dental deductible on DDs sealants and $14.97 in OTC from CVS (they give a handy-dandy receipt showing FSA 's health care eligible total) so I am going to have to kiss the remaining $34 good-bye. I was just too lazy to make it out on the 31st for a second trip to CVS!

While I am somewhat trepidacious about this new High Deductible & HSA stuff, if it doesn't work out, we can always return to our FSA and traditional plan.

The new me says, "I can't wait for that $86 to apply to the HELOC."

Anyone else doing HSAs?

January Goal - MAJOR dent in HELOC

January 3rd, 2008 at 05:29 pm


Well, the money for the sale of the Vanguad mid-cap index fund and the $256 over $15K in the money market fund appeared in the checking account today and I applies $4,253 to the HELOC (8%) and that leaves a remainder of $755.06 which I will pay off by 1/31/2008.

What a great feeling! I was one content to see that $4100 in the midcap sitting there in the asset column, sticking my head in the sand about the HELOC (actually saying "It is ONLY $56 a month). I am glad that people were candid and frank about it costing me money in the long-run. I am glad I could be honest about the situation (I do tend to sugar-cost things) With the extra money, I will apply it to the AmEx Blue ($9,900 at 3.99%)

To celebrate this success, I am transferring another $8.00 from my living expense account to my E*Trade - representing my coupon savings from yesterdays shopping!

Thanks to this great forum!

Inexpensive and Simple Menu Planning-Help!

January 2nd, 2008 at 04:36 pm


Hello, one of the on-going goals for 2008 is better menu planning (nutritonally speaking, as well as financially speaking). I am not a chef and I don't like cooking (with the exception of baking and jell-O molds)

My goal is to cut down on red meat consumption (though I do 50-50 ground turkeyand 90-10 sirloin) and increase chicken and fish (once a week for each).

I am good with the crockpot (actually do OK with that) and I do buy what is on sale (lots of buy one, get one)

Are there any site or recipes that you guys could share? Thanks in advance!

Happy New Year!

January 1st, 2008 at 08:34 pm

Well, rang in the new year with the kids, but did have a grown up outing with DH.

Budgeted amount $100 (Cash from bank ATM)

$40 to sitter
$40 dinner (1/2 price appetizers on Mon, split an entree, two pints) $33 dinner, $7 tip
$10 cover to bar where brother's band played
$0 to cover two pints at bar (our $11 returned to us because my parents covered tab)

$90 SPENT, $10 UNDER BUDGET!

Yay! Had to laugh remembering how much we'd spend (pre kids) to go to Chicago's cool hip places, rent a hotel room, etc. etc. Glad I'm a grown up!
That $10 is staying in Entertainment category for more fun

Goal for Jan 08 - On My Way

December 31st, 2007 at 08:32 pm


Living in the land of plenty (looking around house seeing all of the stuff added to what we already have - and it was reasonable this year compared to last few years of excess), I have put a ban on all spending (except for gas/groceries) for January in order to:

GOAL Pay off HELOC - Balance $4,900

I did mention the Vanguard mid-cap with $4,044 (presently) and I SOLD all shares to apply to the debt. I had $15,268 in the Vanguard Federal Money Market and I sold $268 shares -

Balance roughly $600 -
Looking at the budget for January, with minimal spending and realistic utility estimates, I should have $1,100 to apply to this and will then apply remainder to AmEx Blue ($9,900).

After that will then have to decide what %s for upcoming expenses and debt reduction!

HAPPY 2008!

First $20 challenge addition - READY, SET, GO $20 ChALLENGE $

December 31st, 2007 at 05:59 pm


I'm new to the forum and the $20 challenge - today I added to my E*Trade savings account $23.47 to start off (I might give myself 08 credit for these):

$5 for the five gallons of milk from walmart
$18.47 manufacturers' coupons applied to my grocery purchase yesterday. I will not give myself credit for store card discounts as I'm tally only my efforts.

Not sure what is a realistic goal for total accumulation in this accout for the year. I will include rebates and all purchase related savings (like 40% and 50% off of Michael's and Hobby Lobby, etc. plus the occasional $10 at pennys, etc.)

Looking for encouragement as I begin!

1st $20 Challenge Money

December 31st, 2007 at 02:35 am


Well, went to walmart and got 5 gallons of milk, $2.45 each (compared to $3.49 that DH has paid for the last two gallons at CVS) If I continue this trend, it will be about $350 in Challenge Money as we go through a gallon of milk a day (large family).

I'm starting my $20 challenge money with this $5 as it is easy money to add and might incent me to go to Walmart on a more regular basis.

I have no goal for how much $ I'd like to gain this year, but this is a start!

Spending Record - 12/29/07

December 30th, 2007 at 07:37 pm

DH filled up his gas tank for $44.00 (hopefully will last two weeks - maybe, but doubtful)

Another quick trip to CVS for $11.00 (another $3.49 gallon of milk (OUCH- haven't learned much from post two days ago, Sunday paper (only PG coupons today), and paper towels).

Have to head to grocery store today so will include that in tomorrow's post.

Spending Record for 12/28/2007 - Is Guilt Normal?

December 29th, 2007 at 07:42 pm


Thought it might be a No Spender, but didn't work out that way.

$141.50 to vet for dog's ear infection ($41.50 office visit, $100 meds and some culture thing). As much as a baby! We did get discounted shots at the pet clinic offered through a pet store chain earlier in the month. Can't cut corners in some areas!

Had an outing the mall with my older daughters. they spent judiciously at Claire's for earings with their own money

I did Christmas 08 shopping (all cash): $15 for two gifts, $8 for ornaments, $5 for cards (similar to the ones I liked at the Met online store) $3.50 wrapping paper, and $9.99 DVD that I didn't buy on Amazon.com.

Since I'm being responsible and accountable, I'm having some guilt with spending. Is this normal? I've always suffered with an all or nothing mentality and it has caused some unrealistic expectatinos in the past ...


Some Positive Changes

December 28th, 2007 at 09:45 pm


Thank you for the advice from my previous post on my Debt Load -

I have followed the advice of Broken Arrow and put DH's 401(k) to 6% which is what company matches up to. I've set up the additional 4% for my Vanguard IRAs(twice a month automated) -- still reducing taxable income.

As far as HELOC, once the mid-cap fund (which is taxable) goes up, I will use that to significantly pay down that debt. Once it is paid off, it is potential EF.

With the money in the checking account (from 12/28 paycheck and Christmas money), I am going to pay the insurance premium on car ($212 for a collector car), put new tires on DH's daily driver, make additional payments to HELOC and AmEx(3.99% for life of loan), I also plan on using the money to pay the January bills due prior to the 1/11 paycheck and do one big shopping trip to Sam's Club. That will then help start 2008 with a plan -

I will also use $100 of that to start a Health Savings Account, of which I will be directing $200/month because we have set up a High Dedectible Insurance Plan (I used the balance of our Flex Spend account to get all kids to the dentist, plus took DD to the pediatric pulmonologist, had her allergy testing via blood work done, and got her 3 months RX for asthma filled through Medco. So I will have a small amount of money left to stock up on cold medication, etc.

All in all, I'm feeling smarter with these few steps.

Happy 2008, new friends!

Spending Record 12-27-07

December 28th, 2007 at 04:48 pm


I think that I need to start small as post daily spending as some of my newly-acquired fellow bloggers do:

Spending for 12-27-07

DH took lunch to work.

$3.59 spent for a gallon of milk - ouch!

Dinner at my parents.

It is snowing here the Midwest, so might be a no spender here today!

My Debt Load

December 27th, 2007 at 07:03 pm

I see that a lot of people are candid about the debt load, and to sugar-coat it is like sticking one's head in the sand.

We started 07 with no credit card debt. As 08 starts this is where the household stands:

AmEx $9,806.00 at 3.99% min payment $197

HELOC $4,800 (est) at 8% min payment $56

The debt stems from the high cost of COBRA insurance while DH was unemployed, real estate taxes which are high in our area, parochial school tuition - though it is discounted because of our annual income/number of children).

We have a moeny market account with Vanguard with $15,000 (our "savings" account which was the leftover severence and a gift from my grandparents). It is making around 5%. Our retirement funds at Vanuard and 401(k) are about $100,000 and educatin is about $20,000. There is roughly $5000 in a mid-cap fund at Vanguard that I am contemplating selling to pay off the HELOC.

My challenge is to tackle the debt, WHILE saving up the upcoming expenses for 08. I know that I will probably need to take from the savings to offset the deficit.

Psychologically, I can't spend the $15,000 as that is our safety net. I have seen too many of my friends/family live paycheck to paycheck and then be really screwed without money. We are one payment ahead on our mortgage (Not prepayment) so if things were really bad then we would have two months to come up with the mortgage payment.

Any ideas on things? Oh and yes, we are in our late thirties and contribute 10% to DH's 401(k) (matched up to 3% I think)

What's the $20 Challenge?

December 27th, 2007 at 03:52 pm


Thanks to all who welcomed me - just the motivation I need ...

I saw IMA mention the $20 Challenge. What is this? I'm very interested, and a challenge might spur me on ..

New to the Forum

December 27th, 2007 at 04:06 am


Hello, I suppose that I am one of the many new members to join during this
Let's Make Some Resolutions time of year. I am the money manager for the family, and while I feel that we are doing some things right, I feel that with a clear game plan (aka concrete goals) and some personal accountability (support of fellow forum members) I could be doing a better job of things.

My biggest accomplisments for the past month:
(1) just upped my husband's 401k to 10% (up from 6%)
(2) paid cash for all Christmas gifts (though I didn't budget monthly throughout the year and my goal for the savings account was short as a result)
(3) diligently tracked all expenses in DEC for an idea of where the money goes to come up with some realistic budget guidelines

Areas I would like to improve:
(1) more diligent saving for education for the children
(2) better money management in the grocery/menu dept.
(3) limit the impulse buys (even though they are small and usually at consigment/resale stores) because they just usually end up as wasted/unused items.

well, this is a start! Happy New Year to all - hoping to see improvements!


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