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April is over and behind me (well, almost) and I have a clean slate for May. Here are my May goals:
- Save $1400 in E-fund.
- Stay within $145 grocery budget and be a winner in Krystal’s challenge. How do people live on such small budgets?? (Also, stay within budget in general)
- Pending knee pain, resume running at minimum 2x a week
- Add $250 to T-Fund (travel), $150 to car fund, and $100 to gift fund
As these goals indicate, my top priorities right now are my emergency fund and retirement savings. Well, retirement savings isn’t indicated, but I’m increasing my 401k contributions to 15% temporarily (May only), since it is a 3 paycheck month and I can afford the difference. That is what I really wish I could afford every month, but I just can’t do it yet.
The emergency fund, in my mind, isn’t just for emergencies. Some of it may someday go to a house down payment, to a newer car, or even for some really amazing traveling someday. Or maybe wedding expenses, depending on what my parents are able to contribute. I really don’t know. It is just money that I don’t want to touch for quite some time, and I don’t have a plan to spend it. I want to keep a hefty cash reserve right now. Maybe it won’t be touched unless of a true emergency, but maybe it will. We’ll see.
I also have been itching to travel lately. It makes much more sense to do some traveling around this part of the US than to go abroad for now. At my current savings rate, my travel fund really is only going to cover “regular” trips throughout the year. Some friends have been talking about meeting in Vegas. I may go home this summer for a visit. My friend wants me to visit her in Montreal. Then there will be Christmas… This fund will allow me to go on little trips without disrupting my cash flow too heavily, but really doesn’t do much for my dream of being a vagabond.
The car fund is one of my lower priorities, but at least it is there. It probably has enough to fund minor repairs, and I’d like to have it be around $1k for any major repairs. I’m going to keep on growing it indefinitely, with the idea that I’ll get a newer car eventually. Eventually could be as soon as next year, but as late as… never? There may be some sense to trying to last my car another 3 years (while T finishes grad school), then sell it for whatever we can get before running away to live in Europe for awhile.
I’m not all savings and no fun. My clothes budget is no longer in the red (yay!), and I allocated a little extra money to spend on “Personal” and “Misc” items for May. That should lighten my budget burden a little bit. I’m happy. 
Did I reach my goals this month? In short, no. I really don’t want to revisit them, but I did NOT stick to my budget, did NOT cook dinner for my parents, did NOT run 3x week (but had knee issues). I did get T champagne for passing he PhD qualifying exams, and I did not do any spring shopping. However, overall, no, I didn’t meet them, but I’ll try again next month.
My net worth wasn’t as dismal as I expected, given my failure on my budget and goals in April. I increased it $2,691! It is worth noting that the bulk of that was in retirement funds. My employer and I together added about $1100 this month, and the balance on my account increased by about $2200 due to earnings. My cash (minus credit card) only increased by about $400, which seems about right. For the nosey, more details can be found by clicking to networthiq on the left.
As mentioned before, next month is going to be quite exciting for my financial life. Not only do most of us get a stimulus check, some of us get 3 paychecks! I also haven’t added in my $1000 of random pension cash-out money from my previous job that I didn’t know I was getting. Should that count towards my retirement savings sidebar?
To keep things a little confusing, I did update my sidebars in anticipation of tomorrows paycheck, but I didn’t include my new paycheck in my NetWorthIQ.
Wow, I am going to be late for work if I don’t leave NOW. I’ll come up with my May goals later.
Last week, I got really excited that I still had almost $40 left to spend on groceries, and i got a bit overzealous with my recipes. Then sunday rolled around, and i had very little “staple” food to eat for my weekday lunches and dinners. Ooops. Also, another ooops, I forgot the baking powder in my banana bread, so it obviously turned out like mush. Can you beleive strawberries were just $1 a pint this weekend??
I could have made it until Thursday (May) without buying more groceries, but I opted for the healthier diet and purchased $16 worth of staples. I’m charging $8 to April and $8 to May. Is that accounting too Enron-like?
I am going to buy gas tonight, but other than that, I’m done shopping, so I’m going to do a budget report today. I want to note that I start the month with a budget, but as things come up, I adjust it as best as possible. If I spend too much on groceries, I cut the clothing budget, or whatever. It isn’t strict budgeting as some people probably like, but I’ve found that it works nicely for me. I have a “Master” target budget, but each month gets adjusted as needed. With that said, here is what my spreadsheet looks like today:
That looks really awful, huh?!? It isn’t good, but it isn’t as bad as it looks. The large “Misc” fund encapsulates most of my computer upgrade (I billed $100 to next month to ease the burden), taxes for the sailing class I’m taking, and other truly miscellaneous stuff. The insurance has almost no effect on my cash flow, as I budeget $105 monthly and had the rest in savings. Utilities is high for a freak start-up reason, and should drop next month. Regardless, I’m excited for a clean slate in May.
I’ m going to wait until Wednesday to punch in my final April net worth. Last time I checked, I still had about a 2k gain, mostly in retirement accounts. Truth be told, I’ll probably update it again Thursday (payday), but that will be May’s initial net worth. Yes, I update it more than once a month!
Unless the markets do some crazy business next month, I shouldn’t have much trouble finally reaching 20k net worth in May!!
Let’s take a short trip down memory lane. This lovely blog started last May when I had -$4000 net worth (student loans, not consumer debt). Between June and July, I jumped into the black, and somehow networthiq.com calculated a 256% increase for making the transition. That was the most growth (based on percentage) I’ve had yet!
It seems like I’m averaging about a $2k increase each month. I’m not sure whether that trend will continue in 2008 because so much has changed this year (new job, new rent price, economy stinks), but if it does… I could end the year with a net worth of about $34k! Of course, there I go counting my chickens before they hatch, and even before then hen has laid any eggs…
Anyway, I’m excited about this. Also, I’m excited it is Friday, excited April is almost over, and excited to try out all my new recipes! By the way, I ran through the remainder of my grocery budget buying ingredients for these, and sort of forgot to set aside food for lunch and dinner next week. T and I probably will share those meals this weekend, and if I don’t ask him for a small $5+ donation for eating at the restaurant of Stacking Pennies, I’ll have to scrounge the cupboards.
“Sorry I took your money and burned it
but it looked like the world falling
apart when it crackled and burned.
So I think it was worth it after all
you can’t see the world fall apart
every day.”
Heard on last weeks episode of This American Life. Also found in comments here, credited to Andrew Vecchione (6th Grade). Spoof of William Carlos Williams’s This Is Just To Say.
If you are a more talented poet than I, please share your own spoof. The original poem is:
“I have eaten the plums
that were in the icebox
and which
you were probably
saving
for breakfast
Forgive me
they were delicious
so sweet
and so cold”
Just after high school (and into the first part of college), I worked in a trendy and overpriced retail store in the mall, a brand that everyone in my school liked to wear. At the time, I sometimes would measure the price of things in clothing. The pay was horrible, so after a short shift, I’d joke with my friend “I earned a sweater today!” It was mostly true, too. Most of my meager earnings went to clothing.
When I did a semester abroad, my friends and I took a lot of vacations (to brag: Taiwan, Singapore, Malaysia, Bali, Thailand x2 and several trips to mainland China). I also had some friends with expensive tastes, and we were browsing the Louise Vuitton store one afternoon. Well, I was browsing, they were actually shopping! My friend picked up something small, I think it was an ipod case or something like that, and asked if I thought it was a good deal. Of course she was asking the wrong person if she wanted encouragement to buy designer goods, but my answer was something like “No way. You could go on a vacation to Vietnam for that price.” I measured the price of things in travels.
Now, I simply measure things in dollars. Maybe even more boring, I measure it in savings. If I want something, I think, “that is $X less for my emergency fund!”
T and I both want to go abroad when he is done with graduate school. He is gunning for Europe (wavering between France and Italy), but my heart belongs to Asia. South Asia (Inda, Nepal), Southeast Asia (Vietnam, Cambodia). Traveling would be best in a cheaper area of the world, though I’ve yet to see much of Europe. I suppose Europe may be easier for our careers, but secretly, I kind of want to throw off the career for a few years and teach English. Maybe that would be too much of a derailment though.
I don’t dream of owning a home. I probably will someday, for financial and security reasons, but I just don’t dream of it. I don’t dream of owning my own business. I don’t dream of a nice car. I just don’t care much. I dream of traveling. I’m considering reducing my E-fund contributions and slightly upping my T-fund (I just invented that nickname for it) contributions instead. I think, someday soon, I’d like to measure things in travels again.
For now, it is the 8-5 routine and getting the most out of southern California…
Awhile ago, I stumbled upon a cooking blog called SugarLaws. There are probably many other fantastic cooking blogs out there, but this one is the only one I currently read. She has similar taste in food as I do (except she actually knows how to put a recipe together), so almost every recipe I read I think “I want to try that!”
While the blog isn’t focused on finances, I rarely find odd ingredients that require me to spend $7 on a small bottle of some sauce that I only need for one recipe. Everything is really natural, normal ingredients combined in delicious ways. For example, today she wrote about Strawberry Banana Bread, a very healthy (no sugar) and delicious looking recipe that contains “fresh fruit, 100% whole wheat flour, a smidge of honey for sweetness, and some sour cream. It doesn’t get any more simple than that, and trust me, these are shockingly good.” Even though I only have $8 left in my grocery budget for the month, I could probably buy some strawberries, bananas, and sour cream and make some this weekend.
Or how about Goat cheese soufflés? I admit mine did not really turn out as beautifully as hers. She promised soufflés were easy, but I tried to half the recipe and I used whole wheat flour, which may have confused things. I also didn’t ever get “soft peaks” in my egg whites beating by hand, which probably was a problem. Luckily, I still have half the goat cheese, so I could take another shot if I want. Regardless, the cost of this recipe for me was less than $5 for six servings:
Goat Cheese: $2.49 for 5 oz
Parsley (I cheated and used dried parsley. Not as delicious, but frugal): Negligible. Let’s say $0.10
2 c milk: $0.60
3 Tbs Flour: Negligible. Let’s say $0.25
6 large eggs: $0.75
butter, salt: Let’s just say another $0.75
Here’s another dish that looks delish: Sunchoke Panzanella. It is a more expensive dish at about $10 for 3-4 servings, but it still can fit into my monthly grocery budget. If you can get a better deal on your cherry tomatoes, the price will drop.
2 pints Cherry tomatoes: $4.60
Sunchokes: I still have to locate these. Actually, I’d never even heard of them until this recipe. I did a quick google, and was directed to an article in a pf blog I already read, which suggests they could be as little as $2/lb if I go to a market. She says she saw them at Trader Joe’s, but the one near my house didn’t have them. I think it is smaller than average store.
Sourdough Bread, 4 slices: I’ll estimate $1.50. I bought a whole loaf for $2.69.
3 Shallots: 1.49
Basil Leaves: $0.50 ($2 for a large bunch of them)
2 tbs Balsamic Vinegar: I didn’t have any, so I paid $3.50 for 33.8 oz. That means that 2 Tbs was about $.10
6 Tbs EVOO: Hmm, let’s just say $0.30?
Salt and pepper: Negligible, $.10
I have to be careful when buying fresh ingredients, otherwise I end up with half a bag of wilted spinach (or similar). Since I got a whole bunch of basil for the above recipe and didn’t need it all, I also bought some tomatoes and mozzarella to make these sandwiches (which also use the balsamic vinegar). That is my lunch for the day, and I’m way excited! Mozzarella, tomato and basil is a great combination–it also could be made into a salad. I paid $4 for a hunk of mozzarella (I think I meant to pick a less expensive block) and $2 for 5 roma tomatoes. I used the basil leaves purchased for above recipe, so maybe $1 or $1.50. I’m also using sourdough bread, just because I didn’t want to buy two loaves. I should get many sandwiches out of this, or maybe I’ll try the salad (but I’d probably need more tomatoes for that). Isn’t it beautiful how I picked two recipes that overlap so I can reuse ingredients? That is a skill I generally lack, so I’m pretty proud of myself for that!
So despite my insistence that I’m a food failure, I am improving, thanks to great recipes I find online. I still lack the inventiveness to pull random ingredients from the fridge and whip up a delicious creation, but I can’t be blessed in everything, right? Please share any of your favorite (or newly discovered) recipes with me!!!
I recently left HSBC Direct due to interest rates that were nothing special and an ugly interface. My new choice, a money market fund at Vanguard, really isn’t all that different in terms of the rates I’m getting, but I like having my money there.
It seems what is hot this month in the pf blog world is Series I Savings Bonds. Xin Lu at Wisebread posted a great article about them yesterday . E.C. and Ms. MiniDucky recently talked about purchasing them, and the always informative Jonathan at MyMoneyBlog spelled out the details of them as well.
If I buy before the end of April (on the 30th, if possible), my one year yield will be roughly 4.04%. There is a mentions of 4.44% yield for those in high tax states (that’s me!) but it seems the exact rate depends on whether or not you itemize your state taxes (I don’t).
The only downside I see is I’d lose all liquidity. This means I won’t put my entire efund (almost 10k now!) in these bonds (which is the limit: 5k online and 5k paper), but it seems like a reasonable investment for a solid chunk of it. Is it too scary to lock away half of my cash reserves?
I tried to open a Treasury Direct account, just in case. They need me to mail in some sort of form to prove my identity, so perhaps I’ll go the old school route and just get them from my bank. I’m going to think about it for a few days, and if I decide it is a go, I’ll buy on April 30th.
What do you think? Is it even worth it? The difference in interest is currently only about 2% (so, on $5000, about $200 a year) and I lock away my money for a whole year.
I did it! I colored my hair!
For the past year and a half I had been going to a great salon in my previous town and getting fabulous cuts and highlights about every four months. It usually ran about $120, a little more if I got the eyebrows done too. Highlights look great the first time you do them. But they are so much upkeep, and after doing them for a long time, they look less and less great.
After moving to L.A., I hadn’t done anything with my hair. I was in dire need of a trim, so I found a legit salon that offered $20 first time hair cuts. It isn’t that I won’t pay a little more for a great cut, but I was frightened of paying a lot for a mediocre cut. If the stylist impressed me enough, I probably would have went back for full price. But she didn’t. She was ok, but nothing great. Still, I paid $30 (I’m not going to tip off the discount price!) and was on my merry way with healthier hair and new side swept bangs.
Next step, color. I asked the salon price of an all over color: $85. No thanks! We picked out some store dye for about $8 and matched my natural color quite well, thanks to T‘s meticulous color selection. Unfortunately we accidentally got the 28 wash box, so I’ll revisit in a month and get the permanent color.
This hair should be much easier to maintain, and eventually much healthier. Also, much cheaper, allowing me to stick to my “Personal” budget much more easily. Now I just have to find a stylist that I actually like, but I can wait a few months for that.
Will I go back to coloring my hair? Maybe. I think before I get married I’d want to have highlights and a really great color/cut. Other than that, I’m content with my natural color. And since I’m not even engaged, that really isn’t a big consideration. Now is a great time to go back to my natural light brown color.
… was super easy so far! I couldn’t complete the process 100% online (which is something I strive to do in every transaction of life), but it just took one easy phone call to Vanguard, who got Fidelity on the line, and the wheels are in motion!
Apparently Fidelity insists on sending a check (made out to Vanguard) to ME, and I forward it onto Vanguard. Seems weird, but I had done some Googling in advance and expected it. They said it will take 7-10 days, or I could pay $25 to get express mail. I’ll be waiting the 7-10 days.
The transaction was at the price of Wednesday’s closing markets, which i thought was great since we had over a 2% jump in all the major indices that day. That was pure luck of timing, something I forgot to even consider. A good portion of my money is out of the market for a total of about 2 weeks, so if the market is going to crash, I’d prefer it happens in that time period. I’d also appreciate any major rally’s to wait until my money gets back in (looking at how today is starting, I may be out of luck). I know “timing the market” is futile, but doesn’t it seem like it would be prudent to watch for these huge 2% jumps/drops when moving 60% of my retirement portfolio around? What if I miss a really great day because my money couldn’t be transfered online instantly? I don’t understand why the process is so manual, but what can I do?
If everything goes smoothly, I will add in my meager pension cash out money immediately after the 401k money is rolled over. I have to wait since the amount is below the 3k per fund minimum.
My last consideration is my Roth IRA. It is currently 100% invested in a fidelity target date fund, which is nothing to worry about. It would be nice to have it at Vanguard with my other money, but there is a $50 fee to transfer the account and I’m not entirely unhappy with the fund as is, so maybe I’ll just leave it. It just is harder to figure into an asset allocation plan, especially sine the Fidelity target date funds don’t have quite as straightforward holdings as the Vanguard ones.
Taking care of this has been on my “to do” list for months, so it feels nice to actually be doing it.
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