Another Decision Made

I'm on a roll today, so why stop now?



I've left my procrastination perch and have decided to make a decision. This time regarding my 0% credit cards.



Over the last year, taking the zero percent options, I have paid down 24.1% of our old debt baggage. Not bad, but not stellar either. The high point here is that we did this while building savings to pay our annuals - promoting long term gains. It was a good choice.



This was the first year I could pay all those huge bills with sinking us in the interest drowning us zone.



One of our Zero's is not due until January of 2009. Currently, I am only paying the itty-bitty minimum. On purpose. By the time January rolls around. I will have this money in the savings or I will be able to pay off with current month income. So, that balance will not be an issue.



This smaller Zero % is for Best Buy. Where we got that new flat HDTV last year, DD2's laptop for college and this year I added DS1's new college laptop. Even with the addition, this balance has went down. YEA! The good thing is, it will be zero due, when DD3 gets ready to leave for college next year and we need another laptop. :-)



The second card has are old debt from the past, that we keep moving to pay off. Divorce costs. ICK. Currently, we are sitting with $13,475 on this card. I will have 2 more payments in September & October, before I need to move this money in November. I estimate $270 in September and $264 in October. This will leave us a balance of $12,941 or $5059 less then last year. Representing a 28% paid down amount.



I was going to search and move this money to another Zero option, but they are not looking good. All of them, seem to want to tack on an endless 3% - meaning no maximum cap. I refuse to pay this for time spans of a year or less. The numbers just don't work.



Which led me to decide to end my search and plan on moving these dollars back to my L.O.C. This choice will make my monthly chore for bill paying easier. Plus, provide me with the added benefit of seeing what I owe in one location.



With no payments at all, this will mean a balance on my line of $16,451. Including what is there now. I doubt I will be able to pay this off by year end. It would require monthly payments, without interest of $4,112.75 starting in September.



We still have another trip out there. So, NO it won't happen. I do however, believe this can be accomplished in 9 months. The only hinderance to the plan - I will need to start saving for annuals in January next year. And I can't do both.



Of course, this time - it would be more beneficial to pay off the debt, then to ride it in a savings account. Much like prior years.

6 CD's - Emergency Fund

Eventually, when debts are eliminated, I would like to create a more secure emergency fund. I hate to say it, but I don't like money sitting in normal savings. Especially, when the rates at my bank are a piddly .24%. Is that even a tangible amount?

Of course, I will leave the $1,000 in that crappy account. It is easy accessible and frankly you just never know when you will need to access cash on the fly. Waiting for an online bank or c.d. could make the days feel like years when there is an emergency. Plus, by leaving this balance above $1k I get no fees and more transactions.

Which is more important, because I have my real estate contract sale make their monthly automated payments to this account. And I then have my own automated payments to move out for my home. So, the money remains dormant there - as a true EMERGENCY FUND.

My goal, after we stop financing our annuals is to create 6 - 6 month Certificates of Deposit. So that one matures every month after the initial set-up. Creating the recommended 6 months of expenses accounts.

Again, these accounts are not for massive returns, instead focusing on emergency access.

This has been an in the future idea, because we are still fumbling with the pay as you go life style. Of course, with every month, we get closer to making this a reality. Just amazing, looking back how far we have come.

Add this to the fact that when extra money comes in, from online income or surveys, it seems to just disappear in the commingling.

Left me with a thought. We can make it without those extra dollars, day to day. Those dollars though, have been a help at achieving our savings balance to cover those huge annual bills. With the goal almost achieved, about $3k to go in 3-4 months, I decided to make some changes.

Every month, for the next 6 months, I am creating a CD at ING Direct with my recieved online (extra) income.

ING has a great option, where you can have your interest paid to another account. I did select this. After all, I want to feel a bit of extra income from these streams. And believe me it is a bit.

I didn't wait until the first of next month to start, because there is no better time then the present. I had just over $100 from these avenues sitting in my accounts and decided to open the first CD at 3.3% with a $100.

Hopefully, I will continue the pattern for the next 5 months, until I have 6 CD's. Then I will add to the maturing CD's any more income that is earned, as the re-up.

Each CD will send it's earnings monthly to my Annual Bills Savings at ING. This way, the extra money is still helping (a bit) to pay these bills as they come in. This first CD will be about a Quarter of interest.

• After all 6 are up (at current rates) - $1.50
• Increasing each CD at Re-up by another $100 - $0.50 a month it should earn.
• After a year - interest transfer would be $3.00 a month.

As I shared on my other blog - I think this is a good way to create residual income from money that wasn't in the budget and extra. Leaving me some lingering feelings of warm and fuzzy, from the extra flows.

Plus, putting me a couple steps closer to a 6 Month Emergency Fund.

11 Minutes Shaved

I'm saving electricity on my work-outs now. My treadmill runs about 11 minutes less a day now. I'm not sure what that equates to in electric usage but, I do know something is always better then nothing.

A quick calculation on my electric bill - causes way too much confusion - My KWH cost is $3.24. Since there is no way to determine the constant flow of electricity in my home, I have no idea what amount goes to my treadmill and television (which runs while I run).

I guess I will just have to be happy in knowing I am saving money, without knowing the exact amount.

I am currently running/jogging 3 miles in about 34 minutes - give or take a couple seconds. I still have high hopes of conquering the Thanksgiving 5k in 30 minutes this year.

2 Thanks givings ago - it took me 50 minutes.
Last August, I was doing it in 45 minutes
Last Thanksgiving I ran it in 39 minutes
5 months since I am down another 5 minutes.

I've got 6 months to slam it down another 5 - to make sure I can reach my goal.

Competition a Wealth Building Tool

There is someone in my circle that drives me crazy with their ego talk. No matter what is happening in my life or an others, this person will take the conversation back to themselves - and they are always better. You know like it is a competition.

I think we all know folks like this.

This past weekend, this annoying person, gave me a goal that I never even thought of before. Does that make me indebted to them?

This person had a vehicle, that they speak of often. Bought it new and literally drove it into the position of a first car for some talented mechanical teenager. The American built car had 250k miles on it, when it left this persons ownership.

As you may have guessed, this person is a savvy financial person. Could retire now, in their early 40's and never finances anything. EVER. A respectable person and a lesson for many - when you get passed the annoying I'm better then you stuff.

Anyway, my 2004 American built car, which I love, has just crossed 96k miles. It still looks fabulous and runs perfect - thanks to my man in the garage (DH). By the end of this year, I can probably expect to have about 115k miles. Maybe closer to 120k if you consider my past driving history and add in 2 vacations to the East Coast this year. Yes, it looks like we will drive - plane tickets are just too much money for all of us.

We tossed around buying a large vehicle for the trips and then selling it, but we probably won't.

My goal is one that I can finally shut this person up. The consistent bragging - is like nails down a chalk board. I'm going to get my car to 250k miles - some how, some way. And know this person back into reality.

In the mean time, saving money and building wealth - from no car transactions.

Let the games begin!

154k Miles to go!

2008 Goals and Resolutions

Every New Year, I toy with the idea of participating in goal and resolution making. In the end, I think of things and even speak of them, that I want to achieve. Yet, they are more dreams. Meaning I hope they work out, but I am just not the type to focus on the item and bring it to fruition. February comes and I forget all about what I was hoping to attain in the New Year.

So, in an effort to push myself and I have been seriously thinking about what I want in 2008. What I think I can feasibly accomplish. This is not an easy task. I'm amazed at how many of you do this every year, with great success. I love reading your lists and silently rooting you on to victory as the year progresses.

It is time for me to make some clear cut goals and see if I can push myself to success. What do I want???? Where do I want to be?? How will I get there?

• Residential Rental - Install quality, rent paying tenants, by 3/31/073/31/08.
• Residential Rental - Spread the word, without the cost of a realtor that the building is for sale. Follow-up on all interests - old and new.
• Decrease debt load (was l.o.c. now is 0% credit cards) - 06' debt ended at $15.1k, 07' is currently @ $17.9K - 06' we received a $10k bonus, which we did not in 07' - yet. So, this may not be an increase. If the last year is any scale for the future, we should be at or near ZERO come 12/08 without any effort over 07' effort. Without MEDICAL BILLS, we should do this with great ease.
• Take at least 1 vacation - My DH's nephew is getting married in 08' in South Carolina - although it is our obligation to be there, it may be our best chance to also squeeze in a couple extra days of r & r. I hope to be working on this in January and to set up all our reservations.
• Spend a portion of the rental income from the commercial rental on a new lighted sign. Estimated costs between $5k and $7.5k. Of course, this will be determined on Residential Rental being self-sufficient. Which I have yet to accomplish in the 2 years I have owned it.
• Lose 35 more pounds - or in an effort to please my trainer, who despises my need for low numbers on the scale - to get into a size 8 again. I'm currently at a snug 10, so I see this as achievable by June at a slow pace, with my knee problems. If my knee could be freed of pain, I bet I could accomplish this by February 29th.
• Fully Fund our IRA's for the 2nd year in a row. This is so exciting. Hope we can do it. With all the college checks going out in 08' - 3 kids in college - one never knows.
• Cook more meals at home - 2007 was a year of work. Too much work. My home and my family were neglected. I believe dinner is an important item to building family relationships and strength. We lost this glue in 2007, as I struggled to maintain all our businesses and ventures. In 2008 I plan on rebuilding this and bring my family back together in a clean and maintained home.
• Run the Turkey Trot in 33 minutes. I want to finish the 5k closer to the rest of my family.
• Bring Church and God back into my life, full-throttle. My back breaking schedule has removed this peaceful place in my life. And I feel it. We have missed, because my family follows me, Church many times this year due to my schedule. I want 2008 to get back in line with a regular schedule - I need my weekly rebuilding and stress elimination that only get from prayer and reflection.
• Give More - we always seem so strapped, since all our money is in real estate and investments. I want to gain more financial control and less bondage by eliminating debt. Then giving to any and all causes I see, feel and chose to give to. I would really, really like to adopt a family and see where my help is going. I love the "personal" feel of giving straight to a family. No face entities.

I'm sure there is much more to my wants for 2008, but I am a firm believer that sometimes, less is more.

You may wonder why the Residential Rental is at the top of the list. I did not place my wants in any particular order, except for this one. This property has caused me great stress, sleepless nights and countless panic attacks. Leaving me mostly feeling like a failure in the land lord business. I have quickly turned into a "Don't wanter". Not because the property is bad, but that I am a terrible land lord.

So, in an effort to keep my health moving in the right direction, this is my primary goal. To fix it, would be to add new life to my world. A life of freedom from the consistent stress I have felt for 2 years. With very limited down times. I know this is both aging me and cutting my life shorter. I can't afford it, physically.

2008........needs to be easier and less stressful for me and for everyone. I have seen 2007 reek havoc on so many that I can not even count anymore. I've watched folks lose their jobs, lose their homes, lose their credit. For reasons as numerous as the folks involved. I can only hope that we all find peace and pleasure in the year to come. That alone would be a fantastic goal for 2008.

Welcome to the Torture Chamber

There is a black board at my new trainers local in the front reception, where someone has added the words "to the torture chamber" below the welcome.

I have to snicker a little when I see it, because all of us who go here are paying to be tortured. Isn't that strange, most of us will do anything to avoid being tortured, but nooooo not here. You add a little desperation and folks like me will pay big bucks to be worked into shape.

I will admit, here where no one really knows my name (wouldn't want the folks that know me to think I'm a woose), that I feel like I am being tortured in my 1 hour work outs. Apparently, I look that way too - since that wicked woman has mirrors everywhere. Of course, in my instance, seeing my icky self in the mirror provides motivation for "just one more set".

I have always been strong, and with my physical changes came a lot of weakness. I noticed it when I would help move something big - like my desk, with someone. I used to be able to move anything, now I move it only after struggling to get it up.

So, I had to laugh my first meeting, when she said "you are strong". I'm thinking are you crazy?? I can't lift anything anymore. Evidently, my treadmill and active life style has made a difference in me, even if I don't see it. She stepped me up in the work-outs immediately. Saying "you can do a lot more".

Anyway, as we are just completing 2 weeks, she feels that I need some "concrete" goals. There are 2 things she would like me to consider:

1. Running a 5k - at which I laugh. We do the Turkey Trot every Thanksgiving morning to help feed the hungry, but I walk most of that 5k or at least it feels like it. My hubby, brother and all our kids generally beat me to the end. To be honest with you, if I'm going to "run" the whole thing.......I WANT TO BEAT THEM! shhh don't tell them.
2. Take up Boxing - this too makes me crack up. I may be able to beat Ali now, but a boxer I could not be. Besides letting some fool hit me, is out of my character. Unless they want me get all sorts of nasty on them.

Anyway, I understand the goal thing, just not her selection. My goal would be Size 8 jeans, sexy negligee and a nice set of sexy shoes. All to be worn after I get my hair, mani and pedi done. Those boxing gloves would make my nails look bad - I'm going for sexy.

Don't worry - I will train her. :-)

Savings Goals

With my change up, I need to see the goal. I have created a spreadsheet to see the goal and to watch my progress. I have a long way to go.

My goal consists of 5 steps:

1. Life Insurances
2. Property Dues
3. Insurances - Home owners and Auto
4. Property Taxes
5. Investment expenses - which should be paid by others - but I would like to accumulate them for safety. (this one is the last big step - call it my "dream" step).

I am using color to gain a visual on my progress:

Green - is covered in savings

Yellow - is caution under construction

Red - Not even working on yet

Purple - Dreaming of getting there.


A plus is, we have saved dollars, from online earnings and paid for some of the items listed here already this year.

I am hoping to continue paying the smaller amounts as the bills come in, without taking from the account. This way interest will help me build the balance up and ease our financial burden of expense.

We currently have 6 different cash savings accounts - HSBC, ING, PayPal and 3 at our local bank. For these Annual Savings Dollars - I am only looking at the HSBC account.

ING - is just floating right now with $345 that I put there to cover clothing purchases made at Kohl's. Although, I paid the bill with cash from my checking when it came in and did not utilize the dollars.

PayPal - is just over $200. Since this account pays interest at about 5% and my goal is to earn $50 a week in online dollars - I let the money sit here and only transfer $50 a week. If the balance grows past a 4 week cover, I may start transferring more, time will tell.

1st Local bank account - for Paper Mortgage Payments. The mortgagee makes their payments to this account on the first. I keep $100 in here to keep it open and move their payments to mortgages after received.

2nd Local bank account - sitting with the minimum $100. We will be eliminating accounts, now that child support and ex- spouses are not an issues - just haven't gotten there yet.

3rd Local bank account - this is our joint savings. Currently we have $3563.12 in there. $2200 is from the laundry and will go to pay on the 0% credit card at the end of August. The rest is for our house payment which is automatically drafted and a bill we did away with in April and I am continuing to save that amount, like the expense never went away, $20 a month. The goal is to build this account up to $1k, so that I can close both of the other local bank accounts and run everything through this one. A $1k balance, frees us from the 6 transactions a quarter.

Going against the grain, in hopes of progress.

My first work day, back in my office and I decided to blow the traditional FIFO system right out of the water. If you remember, I shared with you my issues with focus. I don't want to lose sight of my new goal to remain focus and skip the "lost in a mess" which eats away my time and my earnings.

So, at 6am when I stumbled to my desk with my first cup of coffee, I grabbed my nightmare job. The big company, with multiple employees and much work to be completed for year end. My thoughts are, if I tackle the worst job first or the monster, my affectionate name for the company, I will see a huge movement and get motivated to conquer the smaller issues.

Well, it was a productive day and a long day. I am finishing now and my clock says I have been working for 12 hours. Don't worry though, I did take a couple potty breaks. This would be another flaw of mine. I get on a project and forget everything....like lunch. Oh well.

This monsters tasks:

• Sales Tax return due 1/21 - done
• Payroll Returns due 1/31 - done
• W-2's - done
• W-3's - done
• Scheduled tax payments - for AWD - done
• Reconciled all accounts for year end - done
• Scanned and saved all documents and backup to PDF - Done
• Burned 2 CD's for Year End - Done
• Saved Accounting File to CD for Year End - Done

This baby is ready for tax. Yipee! Of course there will be a couple adjustments to enter with the tax return, but otherwise .... DONE, DONE, DONE.

I just feel really optimistic about my deadlines now. Isn't that strange? You think completing a multitude of projects would have a better effect, but no, so far this one feels better. I think I may be on to something.

NOTE TO SELF - Always complete W.J.F. (worst job first).

Dreading my next financial talk

With my 15 year old working regular hours, it is now her turn to take over some more control of her future. I can't tell you what is different here, for me, compared to the first 3 kids, but I am not looking forward to it. And I am feeling overwhelmed by the urgency to move this child forward.

She out of all the children needs this the most. She is a "high maintenance" girl and some guy is going to freak when he tries to keep her happy, if you know what I mean. So, with my future looking grim for a potential son-in-law, I am feeling the need to teach and secure her the best I can. Hopefully saving my future son-in-law from the throws of debt, all in the name of love.

You poor, poor men out there. You just don't understand the power each and every female has. So, as a good mother-in-law I am going to work for this future person now. His, mother may be thankful for this as well. My daughter may not realize the value till.......I'm dead.

My first step with her, is to lay out a budget. This is slightly more difficult with her because she has 2 jobs instead of the constant job the others have had. Things that will be scrutinized here will be her fixed income and fixed savings. The rest will be negotiable or basically in her hands. Which will leave her with ability to soar or crash and burn.

The next step will be to create a new Checking Account at our local bank. She is not of age to obtain one alone yet, so I will be a co-owner, just like all the other kids. This account will be a courtesy account with no minimums and no fees. She will then also receive a Visa Check Card. In this, the Visa Check Card, is where my panic lies. The others have done a fantastic job managing this, her I worry about. She likes to shop. I know I need to teach and prepare, it is my job as mom. I will just have to watch her accounts even closer than I have the others.

The 3rd step will be to initiate a new ING Direct Custodial Account for her. One that she can see online, but that I have to control the transfers. I do have another $50 bonus that she will receive for this account. I just received it last night. She already has an account at the brick & mortar bank and the balance is well over the emergency level of $1,000. This is the base I make them keep as a minimum. The new account will be for her car, that she will need in June, along with insurance money and license plate money. A nice safe, high interest home.

The 4Th step will be to set up her first Roth IRA. I know many people are not with me on this decision, but I don't care. I move them into this for one reason and one reason only - It is easier to save for retirement when you are being supported than when you have to support. The goal with this account will be to sock away a minimum of $2k a year for the first 4 years of her working career. Should she accomplish this, and growth remains historical she should reach a $1 million by retirement with no further deposits. Although, I do not recommend not adding to this fund, it is a better situation than most and will provide them with something, in the event life has other plans and does not allow them to save. This amounts to $76.92 every 2 weeks that she needs to transfer, herself, over to her Roth. She will have full viewing and access, along with me. So she can track her progress. With her age though, she will be under my direct control. Hopefully long enough to learn that this is a good thing.

I will post later our next steps. Which will be a negotiation and an eye opener for her and for myself. The next steps will lead us to the true wants and desires of her soul. Along with how she intends to reach them. Which will then be colored with a dose of mom reality. Hopefully leaving us with a nice blended cocktail when we are done.

I have to moderate confirmation class tonight, so I will put this off one more night.

You know you are almost paid in full.....

when you go to make your payments, and then look at the payment detail for bookkeeping purposes, and see that the majority of your payment is going to principle.

Today I transferred payments for the laundry. Which by the way only 3 payments remain for the equipment loan. Yeah!!!!

All in all I transferred $1042.84. Of this money $1019.53 went to principle. To bad all payments aren't like this. Don't get me wrong I would rather retain the $23.31 that went in the banks pocket, but I am going to do a little dance when the final payment is transferred to them!

When the equipment loan is gone, I will continue to use this money by paying the payment amount to our personal LOC. 1st to cover the amount I transferred from the Discover Card balance. Then to cover the payment I will send to the 0% Citicard in September.

My bonus will be the interest we save on the LOC in the mean time. If by some act of God or merciful event we pay off the LOC in this time frame, I will once again do a little dance - heck I may go all the way out and do a Polka! Don't know what a Polka is, think Marathon in confined spaces. LOL. Anyway, if the LOC is gone, I will place as much money as possible to cover the CitiCard in a High Interest Savings Account. Saving as much future interest dollars as possible. Once again with some small personal gains.

I like to dream, but my reality shows this would not truly be possible - paying off the LOC by then. We have 2 more college payments due this year and February marks association dues, then we will be back into the spending season of summer with $16k + in property taxes. My hope is that by then our investment properties are running smoother and more profitably to save us the carrying of the total expense.

I will be able to breath once the LOC is laid to rest and I line up and establish my next goals for savings which I have not disclosed but are:

1. Save $614.30 to cover annual life policies for entire family
2. Save $753 to cover annual association dues
3. Save $1644 to cover our annual auto and home owners
4. Save $2273.79 to cover annual investment property insurance
5. Save $16,291.88 to cover annual property taxes for all

I know these next goals will be just as challenging, but I believe they will provide me with just as much if not more rewards. $21,609.97 in savings will be my total goal, but I will accomplish this with taking the smaller steps above to feel each and every success. This is something that I need to do to feel the positive flow of energy. Although, considering the business debt will be disappearing the first 4 should be simple.

Taking a more detailed look at my noted numbers I see that $13,486.85 of this goal should be accomplished by business income and not our personal income. In a perfect world that is. Hopefully, the businesses will hold their own and our goals will be attainable by December 07'. Without the businesses holding their own, it will be much, much longer. But, I just don't want to think that way and am not going to bother doing the calculations. So there.

When?

I enjoyed finally getting thru to my husband. So I decided to calculate the when's.

When will our Networth reach....

$750......July 2009

$1M.......December 2011

$5M.......June 2025

I will be 57 and my husband will be 67....YEAH!!! We can make it!!!

This projection of goals is so far into the future it is hypothetical. But if everything remained as it is now...This is what would happen.

We all know things never stay the same. We will be completed with Child Support Payments in 2007, but we then gain another college student, but due to the large amount of support paid we should still balance out with cash in our pockets after. So this will be good.

2008 child number 3 goes to college, but child number 1 graduates colleges. This will actually put us in a better place, because child number 3 knows the value of a dollar and will not make a financially stifling decision.

2009 child number 4 goes to college....utoh...3 in college at 1 time. Ouch. Luckily 2 are 4.0 GPA's and the eldest is a 3.5, this should help....right? This will only be a cash crunch.

2011 child number 5 goes to college, but child number 2 graduates college. Still have 3 again we are balancing.

Oh well, by the time child number 5 graduates, we can probably assume child number 1 will be working on a family...and the circle keeps spinning.

This is why I have to keep working on building other streams of income.

April Financial Steps

We took a couple steps this month to increase our streams of income.

• Added a new client to my business


• Received a referral that will be a future client


• Created an online store The Everything Mall

None of the above will make us rich, but they all will contribute to our success. My goal is to create at least 1 good income stream each year. In January I acquired a rental property and established a business to hold the property. The Store mentioned above is a potential extra - extra stream. In the mean time I am learning from it, should it not become a large viable stream.