I want to do this!

Become Financially Independent

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  • melissajoyner
    melissajoyner Doing 2 cheers 2017-08-21 20:11:50

    Trying hard to budget and working on a relaxed approach to the Dave Ramsey baby steps...not necessarily in proper order

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  • emaazz
    emaazz Done 0 cheers 2017-08-07 21:46:27

    I've done this!


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  • karolinaklosinska
    karolinaklosinska Done 0 cheers 2017-06-07 12:26:34

    I've done this!


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  • aenea
    aenea Doing 2 cheers 2017-05-23 01:30:21

    Savings for long term goals, travel, and large expenses

    some of our wedding funds are being set aside in a savings account to help with our home remodel. It's small, about 5% of what we'll ultimately be needing, but it's a start.

    More urgently we are also needing to save for the potential maternity gap in my wages, which for a three month period will be considerable. I have not worked long enough to have paid leave available for the duration.

    Visitation travel expenses amount to about $3k annually, and cannot be overlooked either.

    Travel beyond that, to visit my family who all live 5000 miles away, is also a consideration.

    On a positive note, I've convinced A to start a savings fund to visit Disneyworld. So she does extra chores for a small allowance that she is putting away for her goal. I'm hoping she learns something about money management, perseverance, and being goal oriented in the process.

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    • AeneasSubgoals
      AeneasSubgoals 0 cheers 2017-05-23 02:39:56

      updates:

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      • aenea
        aenea Doing 0 cheers 2017-06-06 23:00:00

        Two weeks in and A is already giving up. She hates chores more than she loves Disneyworld. Which makes me sad. Im at a loss as to how to spark motivation in her on many fronts. All suggestions welcome. Next will be no electronics until chores are done. Which she will not like at all.

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      • aenea
        aenea Doing 1 cheers 2017-07-29 06:51:12

        I read about the Digit app and decided to set up a micro-save auto-transfer just within my own bank account. Similar idea, just doesn't get passed through a third party.

        I was already doing a monthy auto-transfer, but I'm curious if the smaller weekly transfer might be gentler on my psyche. I've been tempted to shut off the larger auto-transfer many times already, but have been saved by my own laziness. however there have been occasions when I have to transfer money back to my checking account, which is always disheartening. but at least I'm trying, right?

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    • joycultivation
      joycultivation 0 cheers 2017-06-12 20:38:05

      @aenea i LOVE that you are teaching about money management at a young age. i wish my parents had taught me more. most of what i learned was from watching my parents make mistakes.

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  • aenea
    aenea Doing 4 cheers 2017-05-23 01:09:50

    Build an emergency account

    I get so focused on paying off my personal debt that I often overlook the importance of building and maintaining my emergency account. Currently I have a paycheck and a half worth of savings but I'd like to build that to:

    A. 1 month worth of savings by end of 2017
    B. 2 months worth of savings by end of 2018
    and ultimately
    C. 3 months worth of savings by 2020

    All while also balancing this savings with saving for longer term purchases (like home remodel and travels) and saving for retirement.

    It's so discouraging when the amount I have available to contribute is so small and then has to be split four ways to cover all my needs. rowning;

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  • aenea
    aenea Doing 1 cheers 2017-05-23 01:00:39

    Student loans

    I'm on an income based repayment plan at the moment but it's not doing me any favors. When I have my personal debt under control I'm hoping to tackle this next.

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  • aenea
    aenea Doing 5 cheers 2017-05-16 05:25:44

    Monitoring spending closer with some financial apps.

    I've been using Mint and Prism and now I'm trying Wallet. I'm going to try to be more consistent about entering data with Wallet.

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    • AeneasSubgoals
      AeneasSubgoals 0 cheers 2017-05-23 02:40:34

      updates:

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      • aenea
        aenea Doing 0 cheers 2017-05-23 03:59:18

        Wallet is a very nice app. I'm not ready to subscribe though, so the search continues.

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        • joycultivation
          joycultivation 1 cheers 2017-06-12 20:39:28

          @aenea i LOVE wallet. it has helped me TREMENDOUSLY. i have the free version so i pay 0 and it meets all my needs. i did some creative workarounds with the functionality

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          • aenea
            aenea Doing 0 cheers 2017-06-12 21:41:42

            @joycultivation hmm. After I downloaded I was told I had 14 days to try it for free but would then need to subscribe to keep my accounts active.

            Looked interesting though. I'm glad you were able to find a method that worked for you.

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            • joycultivation
              joycultivation 0 cheers 2017-06-12 22:24:39

              @aenea you probably had 14 days to try out the free upgrade to a paid account. the basic account is always free. i have been using this app for over a year now. i have never paid a penny and i have achieved majorly positive results. i went from a substantial amount of debt to routinely saving 38% of my income in the course of a year.

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      • aenea
        aenea Doing 0 cheers 2017-05-28 20:39:18

        I've had Goodbudget on my phone for awhile but had never put much time into it. So I think I'll try that next.

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      • aenea
        aenea Doing 0 cheers 2017-06-06 23:04:22

        Been using Goodbudget for June so far and it's definitely useful though more complicated than I'd like. Perhaps it'll get easier with time.

        Also, budgeting is extremely depressing.

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      • aenea
        aenea Doing 0 cheers 2017-06-10 07:22:56

        Today was not good as far as spending goes. We went to a movie, bought concessions, had dinner out, bought ice cream, and bought some books. Fridays are my weakness I think.

        We did bike to a free concert at the botanical garden yesterday though, so that was good.

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      • aenea
        aenea Doing 0 cheers 2017-07-02 01:49:08

        I was doing really good in early to mid June using GoodBudget. Their website is actually pretty nifty. But then I fell off the bandwagon and stopped entering purchases. and once you fall off, it's a pain to play catch up.

        what I like about mint and prism is that they link to my accounts and automatically deduct expenses. only problem is that often they don't categorize things correctly, so the charts aren't accurate. and again, it's a pain to go in and correct all their mistakes.

        so essentially i'm too lazy to budget apparently. this is no good.

        spending wise I have been relatively mindful. I had to buy a few things for A's trip, and for the packages I send her while she's gone. Nothing big or major, but even little stuff adds up over several weeks. Trying to minimize these expenses as much as possible.

        I also splurged a bit and bought some new-to-me shirts for work and for my trip. probably not completely necessary. clothing is one of my major weaknesses, and I know it, so I try to thrift whenever I can. oh and on that front, i was really bummed when I tripped on my own laces and ripped my favorite jeans during a hiking trip last week. so dumb. so hard to find good fitting jeans. πŸ˜•

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      • aenea
        aenea Doing 0 cheers 2017-07-02 18:26:38

        so after writing my last entry, today I went back into goodbudget and updated my expenses manually for the last 15 days using Mint info. It wasn't as painful as I feared, so I think I could make this a weekly habit perhaps.

        I'm looking at my expenses however and trying to figure out places to cut spending so that I can pay down some debt. And it occurs to me that my income is at just the right amount for me to live on. My incoming and outgoing cash flow is about even if my outstanding debt is out of the picture. In other words, had I entered my job without any debt, I would be doing ok, not living extravagantly, just getting by. But how many people really enter the job market debt free? I guess they don't really factor that in when setting up payroll.

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  • aenea
    aenea Doing 1 cheers 2017-05-12 22:51:32

    Pay off credit card debt

    We received a generous cash gift from my parents for the wedding, and my parents insist it should go towards our honeymoon. However, I'm not sure they realize the weight of our debt, and I'm leaning towards applying it to pay off one of my cards.

    The second dilemma is which card: the one with the highest balance or the one I can wipe off completely and possibly free up for a no interest balance transfer (something which I'd previously sworn off). Leaning towards option two, but I sure hate looking at that balance on card one. I just have to keep in mind that if I remain persistent, it will disappear too, eventually (after mountains of interest accrue...).

    Decisions decisions.

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    • AeneasSubgoals
      AeneasSubgoals 0 cheers 2017-05-23 02:40:44

      updates:

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      • ExplorerSoul
        ExplorerSoul 1 cheers 2017-05-30 15:32:10

        @AeneasSubgoals Have you decided what you will do?

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        • aenea
          aenea Doing 0 cheers 2017-05-31 08:17:07

          @ExplorerSoul yes, I set aside a small portion for savings and used the rest to pay off the card with the smaller balance (card A). I then obtained a 0% /18mo balance transfer to help relieve interest on the card with the larger balance (card B ). Unfortunately, though I requested those terms from card A for a transfer, they declined, so I looked elsewhere and now have more plastic in my life (card C).

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      • aenea
        aenea Doing 0 cheers 2017-07-02 01:35:20

        Making some progress on this. I'm currently applying the snowball method, paying down the highest rate cards first, which also means I'm currently essentially ignoring my 0% balance transfers for the time being and making only minimum payments on them. And if I leave those numbers out, my debt is not nearly as daunting to face. Still not pretty, but not anxiety attack inducing. Why, yes, I do take after the ostrich.

        I'm paying off my airline and amazon cards completely this month, which is easy enough to do, as I never let my amazon card get too high, and my airline card gets a break with A out of town. However, I'll have to spend a sizable chunk on it soon for the flight to go pick her up, so I'm trying to budget for that. Things would move along faster if I didn't have to do that, but it is what it is.

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      • aenea
        aenea Doing 0 cheers 2017-07-29 06:43:08

        This August I will pay off two of my cards, with a third one already zeroed out. Technically however, I will still be charging to both active cards, and the third one is only zero because of a transfer. For now I'm just going to pretend like the third one doesn't even exist; it was never used for spending anyhow, so I'll just put it in my safe.

        As for the rest:

        BOA 1 - my primary card - food, medical, and general expenses - will be down to 11K on Aug 3rd. I've carried a balance on this card for so long, I embarrassingly don't even remember how it got this high. I'm sure there were wedding expenses and medical expenses and unwise splurges sprinkled along the way.

        BOA 2 - travel, gas, and school expenses - I pay this one off every month, but it's no small amount and always has to be reckoned for.

        Chase 1 - gifts, clothes, misc online expenses - this one would remain zero except that the girl's birthday is coming up in September.

        once I have BOA1 halved (aiming for Feb/March timeframe), I plan to start paying down my transfers more aggressively before they catch up with me. 18 months can go by amazingly quickly. one of them is not very big, but the other is a sizable amount, due next November.

        I'd hoped to go see family for the holidays but I don't see how we can to do it without throwing the budget off track, especially if I get pregnant. My parents are elderly now and my nieces and nephews are almost all grown, so it's a difficult decision to have to make.

        D also wants to redo the bathroom this winter, but again it seems like moving in the wrong the direction. It really needs to be redone though. At least if we pay down some debt first, it will be more like treading water than being pulled under, I suppose.

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    • joycultivation
      joycultivation 0 cheers 2017-06-12 20:40:30

      @aenea the one with the highest interest rate

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      • aenea
        aenea Doing 0 cheers 2017-06-12 21:31:02

        @joycultivation card A at the time actually had the lowest interest rate as it was the tail end of my last balance transfer. Otherwise though, you're right, I would have put it all toward card B.

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  • aenea
    aenea Doing 2 cheers 2017-05-10 20:57:13
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    • AeneasSubgoals
      AeneasSubgoals 0 cheers 2017-05-11 23:36:20
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      • aenea
        aenea Doing 0 cheers 2017-05-11 23:37:48
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      • aenea
        aenea Doing 0 cheers 2017-05-11 23:38:48
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      • aenea
        aenea Doing 0 cheers 2017-05-11 23:39:52
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