Saturday morning I was petting my cat when I noticed that one of her eyes was tearing a yellowish green liquid. Ugh. After a quick Google search, I decided to take her to the vet that day to make sure there wasn't anything seriously wrong. The closest vet (and the one where I've taken her a few times for serious issues) is extremely expensive. Last year, instead of taking her there, I brought her to a local walk-in vet service to get her vaccine updates because it was over $100 cheaper. However, when an issue like this pops up, I don't have many options.
The vet saw her that morning, and as I suspected, there wasn't anything majorly wrong. It turns out she has allergies (???) and a slight eye infection stemming from them, so she's now on antihistamines and eye ointment twice a day (today is the last day of that, thank god!). She seems to be doing much better, and now I have the necessary pills and ointment to use if this problem should pop up again.
All told, the vet visit set me back ~$150, between the cost of visiting the vet, the cab ride to the vet, and the eye ointment I had to buy at CVS. Because I hadn't yet made my mid-month emergency fund deposit (due to my company taking their sweet time reimbursing me for a flight to a conference next month, bah), I had the cash in my checking account and I was able to pay with my debit card instead of putting the cost on my credit card. Now, though, I have to wait until later this week when I get paid to make my emergency fund deposit. I think I'll still be able to max it out by the end of August (my goal), and things like this are what it's for, but it's still a frustrating setback. Thankfully we're all OK, and now I can cancel my annual July vet visit, so I guess that's a silver lining at least.
Showing posts with label savings. Show all posts
Showing posts with label savings. Show all posts
Wednesday, May 27, 2009
Friday, May 1, 2009
Sidebar updated, change in savings plan
I updated my sidebars yesterday. Man, did my budgets get creamed during April. I overspent on groceries (by $25) and my dining out budget (by $12). I also had to withdraw $1950 from my downpayment fund in order to pay for the last month's rent on my apartment for September and my half of the realtor's fee. Now I'm back down to 53% of my goal on my downpayment savings. Ouch.
On the plus side, I received my tax refunds (~$500) and a $500 bonus at work (which ended up being about $300 after taxes). I was able to contribute an $300 to my emergency fund, and an extra $250 to my downpayment fund. I also maxed out my fun fund.
Since I'm going to be back to paying rent as of September, I'm changing the way I save for the next four months. Instead of dividing my savings among my emergency, downpayment, and Roth 2010 funds, I'm going to put it all into my emergency fund until it's maxed out. If I do this, I'll have that maxed sometime in July. I think this is the best move, and will make me feel a lot more secure in September when my monthly expenses skyrocket with the additions of rent and utilities, and I'm not able to save as much money each month.
On the plus side, I received my tax refunds (~$500) and a $500 bonus at work (which ended up being about $300 after taxes). I was able to contribute an $300 to my emergency fund, and an extra $250 to my downpayment fund. I also maxed out my fun fund.
Since I'm going to be back to paying rent as of September, I'm changing the way I save for the next four months. Instead of dividing my savings among my emergency, downpayment, and Roth 2010 funds, I'm going to put it all into my emergency fund until it's maxed out. If I do this, I'll have that maxed sometime in July. I think this is the best move, and will make me feel a lot more secure in September when my monthly expenses skyrocket with the additions of rent and utilities, and I'm not able to save as much money each month.
Tuesday, March 17, 2009
What I did with my bonus this year
On Friday I received an annual performance-based bonus in the amount of $6,000. Well, let me rephrase that: On Friday I received roughly $3,500 of my annual performance-based bonus, with a little over $2,000 going to taxes (*tears*), and the rest going to my 401k (gotta love those automatic pre-tax deductions).
I was originally planning to put the entire bonus towards my Roth 2010 fund, which would have nearly maxed it out, leaving me with less than $200 to deposit for the rest of the year. When I thought it through, though, it thought it would be nice to also put some money into my other savings accounts, combining this with my usual mid-month savings deposits. Here's how I broke it down:
$3,000 into Roth 2010 fund. This leaves me with a little over $600 left to deposit this year in order to max out this fund.
$300 into Downpayment fund. I'm still about two years away from maxing out this fund, but once the Fun Fund and Roth 2010 fund have been maxed out, I can throw more money in here each month
$300 into Emergency fund. My emergency fund will be maxed out before the year is over; I'm going to make it my goal to do this before I move out of this rent-free apartment
$100 into Fund Fund. I should get this maxed out next month - woo hoo!
I love saving, but I will do at least one fun thing with some of this bonus money. C recently started a new job at his company, and I'd like to take him out to a nice dinner to celebrate. I also need to add some new clothes to my wardrobe - I can't even close my dresser drawer anymore, it's so full of old clothes that I don't even wear anymore. I haven't really made any major clothing purchases since last February in Fort Myers, so I'm due. I need some nice casual skirts that aren't from college (no joke) and another solid pair of jeans that look and fit great. I'm planning to keep my eyes open for sales to see if I can pick some of these items up at a greatly reduced price.
In other news, I also got a 5% raise last week. This breaks down to roughly $40 per paycheck, after taxes. I haven't figured out what I'll do with the extra ~$100 per month. I thought I'd put it into savings, but now I'm thinking of paying an extra $50 towards my highest interest loan each month, and putting the other $50 into one of my savings funds. I also have close to $500 coming my way in the form of a tax return, which I'm thinking of throwing entirely at my Roth 2010 fund. Decisions decisions...
I was originally planning to put the entire bonus towards my Roth 2010 fund, which would have nearly maxed it out, leaving me with less than $200 to deposit for the rest of the year. When I thought it through, though, it thought it would be nice to also put some money into my other savings accounts, combining this with my usual mid-month savings deposits. Here's how I broke it down:
$3,000 into Roth 2010 fund. This leaves me with a little over $600 left to deposit this year in order to max out this fund.
$300 into Downpayment fund. I'm still about two years away from maxing out this fund, but once the Fun Fund and Roth 2010 fund have been maxed out, I can throw more money in here each month
$300 into Emergency fund. My emergency fund will be maxed out before the year is over; I'm going to make it my goal to do this before I move out of this rent-free apartment
$100 into Fund Fund. I should get this maxed out next month - woo hoo!
I love saving, but I will do at least one fun thing with some of this bonus money. C recently started a new job at his company, and I'd like to take him out to a nice dinner to celebrate. I also need to add some new clothes to my wardrobe - I can't even close my dresser drawer anymore, it's so full of old clothes that I don't even wear anymore. I haven't really made any major clothing purchases since last February in Fort Myers, so I'm due. I need some nice casual skirts that aren't from college (no joke) and another solid pair of jeans that look and fit great. I'm planning to keep my eyes open for sales to see if I can pick some of these items up at a greatly reduced price.
In other news, I also got a 5% raise last week. This breaks down to roughly $40 per paycheck, after taxes. I haven't figured out what I'll do with the extra ~$100 per month. I thought I'd put it into savings, but now I'm thinking of paying an extra $50 towards my highest interest loan each month, and putting the other $50 into one of my savings funds. I also have close to $500 coming my way in the form of a tax return, which I'm thinking of throwing entirely at my Roth 2010 fund. Decisions decisions...
Thursday, March 5, 2009
Back from Vacation & Savings
Despite getting terribly sick right before my vacation (I ended up taking off Tuesday and Wednesday as sick days), I had a great time in Ft. Myers. I only made it to one Red Sox game, but I spent ample time relaxing and on the beach so I feel the trip was a success. And, I spent way less than what I had budgeted for outlet shopping. I had planned to replenish my wardrobe in a major way, but I bought four shirts for a total of less than $50 at the J. Crew outlet and that was it. Crazy.
I updated my savings sidebars just now, and it's exciting to see that I'm back on track with my savings. I should have my fun fund maxed out by the end of April, or mid-May at the latest. I'm also going to start making weekly deposits into my 2009 Roth so that I can max it out by the end of the year. I think weekly is the way to go, since the market is so insane right now. May as well try to capitalize on some good old dollar cost averaging, rather than dumping the money in only to see the value plummet the next day, which is exactly what happened to me when I invested in a new mutual fund for the first $3,000 of my 2009 Roth. BAH.
I updated my savings sidebars just now, and it's exciting to see that I'm back on track with my savings. I should have my fun fund maxed out by the end of April, or mid-May at the latest. I'm also going to start making weekly deposits into my 2009 Roth so that I can max it out by the end of the year. I think weekly is the way to go, since the market is so insane right now. May as well try to capitalize on some good old dollar cost averaging, rather than dumping the money in only to see the value plummet the next day, which is exactly what happened to me when I invested in a new mutual fund for the first $3,000 of my 2009 Roth. BAH.
Tuesday, February 17, 2009
Sidebar updated + taxes
Sarah let me know that the Roth IRA contribution limit increases to $5,500 in 2010, so I've updated my sidebar accordingly. While I was in there, I also updated my savings information to reflect my mid-month deposit, and entered my initial Roth 2009 deposit, which I made last week. I bought a new index fund, so I had to make the $3,000 contribution in one lump sum; I'm planning to make small monthly deposits for the remaining $2,000 beginning in March.
I finished doing my federal taxes and started working on my state returns on Friday night (a riveting Friday night, to be sure). It looks like I'm going to get back a little over $500 between the two returns, which will be a nice bump. Last year I only got about $325 back. As I said in an earlier post, I prefer to get less taken out of my checks so that I can save the money myself throughout the year. As long as I don't wind up owing any money at the end of the year, this works best for me.
I finished doing my federal taxes and started working on my state returns on Friday night (a riveting Friday night, to be sure). It looks like I'm going to get back a little over $500 between the two returns, which will be a nice bump. Last year I only got about $325 back. As I said in an earlier post, I prefer to get less taken out of my checks so that I can save the money myself throughout the year. As long as I don't wind up owing any money at the end of the year, this works best for me.
Friday, January 30, 2009
Budgeting Savings with an Irregular Part-time Schedule
February is right around the corner, and I'm trying to figure out how much money I can save next month. Each month, I aspire to put $400 into both my downpayment fund and emergency fund, and $200 into my fun fund. However, February is a bit irregular. I normally work 4 shifts at the inn per month (one each Sunday), making about $350 gross, before bonuses. We haven't received bonuses for the past couple of months; because of the economic crisis, our business has been slower than usual so we're not meeting our sales/occupancy goals. When we do get bonuses, I usually gross about $450 - $500 per month at the inn.
In February, I'm taking two weekends off from the inn: next weekend, I'm going to a baby shower in NY (and I still need to get a gift, ugh!); the last weekend of the month, I'll be in Florida. But, I'm going to be covering at least 2 shifts, so I'll actually be working 4.5 shifts. In March, I'm currently scheduled for 3 shifts, but it's quite likely I'll pick up at least one during that month.
Not knowing for sure how much I'm pulling in from my part-time job makes it hard to figure out whether I can meet my savings goals. Sometimes I'm plesantly surprised, like this month. I grossed $1,025 at my part-time job in January, and that was without bonuses...! Obviously I'm not going to do that every month. For one thing, it's exhausting -- several of those shifts were "after work" shifts where I come in from 5-10 after working all day at my full-time job. Also, January was one of the two months of the year where I receive three paychecks from the inn (the next one is July).
In January, I netted over $2,700 between both jobs. Despite my super income this month, I wasn't able to meet my savings goals; I had to pay C back for our plane tickets to Florida, and pay off my credit card for the Christmas/birthday gifts I bought last month. I saved $300 for my downpayment and emergency funds, and $175 in my fun fund; I also put an extra $50 towards my federal student loan, and will be doing that next month as well. I'm hoping to make up the extra savings money next month, and to keep my clothing spending at $0, with the exception of any outlet shopping trips in Florida. I just have to stop going into clothing stores, and delete all of these amazing sale emails I receive every day and I'll be fine. ;P
In February, I'm taking two weekends off from the inn: next weekend, I'm going to a baby shower in NY (and I still need to get a gift, ugh!); the last weekend of the month, I'll be in Florida. But, I'm going to be covering at least 2 shifts, so I'll actually be working 4.5 shifts. In March, I'm currently scheduled for 3 shifts, but it's quite likely I'll pick up at least one during that month.
Not knowing for sure how much I'm pulling in from my part-time job makes it hard to figure out whether I can meet my savings goals. Sometimes I'm plesantly surprised, like this month. I grossed $1,025 at my part-time job in January, and that was without bonuses...! Obviously I'm not going to do that every month. For one thing, it's exhausting -- several of those shifts were "after work" shifts where I come in from 5-10 after working all day at my full-time job. Also, January was one of the two months of the year where I receive three paychecks from the inn (the next one is July).
In January, I netted over $2,700 between both jobs. Despite my super income this month, I wasn't able to meet my savings goals; I had to pay C back for our plane tickets to Florida, and pay off my credit card for the Christmas/birthday gifts I bought last month. I saved $300 for my downpayment and emergency funds, and $175 in my fun fund; I also put an extra $50 towards my federal student loan, and will be doing that next month as well. I'm hoping to make up the extra savings money next month, and to keep my clothing spending at $0, with the exception of any outlet shopping trips in Florida. I just have to stop going into clothing stores, and delete all of these amazing sale emails I receive every day and I'll be fine. ;P
Thursday, January 29, 2009
Decision-Making is Hard
A couple of days ago, Trent at The Simple Dollar wrote a post about the difficulty he has making financial decisions, such as starting a Roth IRA. Although I do take the time to think through before making financial and personal decisions, I usually choose one course of action quickly and work through the details as I go along. Many of those close to me, C in particular, are more like Trent.
C took well over a year to open an ING savings account; he asked me to send him an account invite several times before actually signing up. He also put off opening any CDs with ING while the rates were still high (in the 4-5% range, those were the days...), because he hadn't had the time to fully work through the best option of where to keep his money and for how long. Contrastly, I opened my ING savings account in the summer of 2007 after reading testimonials on several personal finance blogs. Of course, I took the time to read through the account literature on ING's site, made sure my deposits were FDIC insured, and did a bit of rate comparison on bankrate.com, but I gave myself a date by which I would open my account and did it. I did the same thing when I opened my CDs at ING, several at interest rates much higher than ING is currently offering; I did some reading to find out what the liklihood of a Fed interest cut would be, and I made sure I opened CDs a few days before any potential rate cuts, while rates were still high. This paid off majorly -- according to my ING tax statement for 2008, I made $889 in interest last year.
Another example is my downpayment fund. Some people would say that I should just put that money toward my loans, and I can't say I think that's a bad idea. But, right now I'm not sure what the best option is for me. My loan interest rates are all low at the moment (only the private loan has a variable rate, and it dropped from 8.25% to 3.25% over the past three years), so I'm planning to continue snowballing them for now. At this rate, I'll have the federal loan paid off by the end of next year, and the Perkins loan paid off shortly after that. Although I may decide to move some of this money toward paying off my loans even earlier, for now I'm going to continue saving for a downpayment, Even if this is the "wrong" decision, I'm putting money away every month, and I can always change my course of action. The important part is choosing to take action and following through.
C took well over a year to open an ING savings account; he asked me to send him an account invite several times before actually signing up. He also put off opening any CDs with ING while the rates were still high (in the 4-5% range, those were the days...), because he hadn't had the time to fully work through the best option of where to keep his money and for how long. Contrastly, I opened my ING savings account in the summer of 2007 after reading testimonials on several personal finance blogs. Of course, I took the time to read through the account literature on ING's site, made sure my deposits were FDIC insured, and did a bit of rate comparison on bankrate.com, but I gave myself a date by which I would open my account and did it. I did the same thing when I opened my CDs at ING, several at interest rates much higher than ING is currently offering; I did some reading to find out what the liklihood of a Fed interest cut would be, and I made sure I opened CDs a few days before any potential rate cuts, while rates were still high. This paid off majorly -- according to my ING tax statement for 2008, I made $889 in interest last year.
Another example is my downpayment fund. Some people would say that I should just put that money toward my loans, and I can't say I think that's a bad idea. But, right now I'm not sure what the best option is for me. My loan interest rates are all low at the moment (only the private loan has a variable rate, and it dropped from 8.25% to 3.25% over the past three years), so I'm planning to continue snowballing them for now. At this rate, I'll have the federal loan paid off by the end of next year, and the Perkins loan paid off shortly after that. Although I may decide to move some of this money toward paying off my loans even earlier, for now I'm going to continue saving for a downpayment, Even if this is the "wrong" decision, I'm putting money away every month, and I can always change my course of action. The important part is choosing to take action and following through.
Monday, January 26, 2009
What Should I Do with Birthday Money?
About a month ago, I turned 26. This weekend, I received some belated birthday gifts from my godfather and my grandparents: my grandparents gave me $50, and my godfather gave me a check for $100. My godfather and aunt also gave me a $100 giftcard to Lord & Taylor.
Normally, I'd throw the money into my savings. However, January is one of the two months this year in which I receive an "extra" paycheck from the inn (my full-time job pays semi-monthly. bah). So, I'm already over-contributing to my savings this month.
I could use it to further pay down my student loan debt -- in fact, that's what I did with some of my "extra paycheck" money earlier this month. This is still a possibility.
I could use the money to buy something for myself, but there really isn't anything I need right now. And, I have the Lord & Taylor giftcard to spend as well, so I'd rather not spend all of money on STUFF.
I think I'll put an extra $50 towards my federal loan next month. I'll also put $25 extra into my downpayment fund and emergency fund, and put the other $50 into my fun fund. I'm going on vacation at the end of Februrary (more about that later), so I can use that money for any outings or the many outlet shopping trips I'm panning.
Normally, I'd throw the money into my savings. However, January is one of the two months this year in which I receive an "extra" paycheck from the inn (my full-time job pays semi-monthly. bah). So, I'm already over-contributing to my savings this month.
I could use it to further pay down my student loan debt -- in fact, that's what I did with some of my "extra paycheck" money earlier this month. This is still a possibility.
I could use the money to buy something for myself, but there really isn't anything I need right now. And, I have the Lord & Taylor giftcard to spend as well, so I'd rather not spend all of money on STUFF.
I think I'll put an extra $50 towards my federal loan next month. I'll also put $25 extra into my downpayment fund and emergency fund, and put the other $50 into my fun fund. I'm going on vacation at the end of Februrary (more about that later), so I can use that money for any outings or the many outlet shopping trips I'm panning.
Friday, January 2, 2009
Financial Achievements for 2008
Though I've always cared about saving, 2008 was the first year I truly dedicated myself to personal finance.
In 2008, I:
~Landed into this amazing rent-free opportunity!
~ Began using the debt snowball method to eliminate my student loan debt as quickly as possible. You can find a great debt snowball spreadsheet here; I've come across many of these types of spreadsheets, and this was the most useful one I've encountered.
~ Split my savings account into separate accounts to reflect my savings goals, almost meeting my $7k emergency fund goal, and reaching the halfway points of my down payment and fun funds.
~ Fully funded my Roth IRA for 2008, and saved up the full amount for my 2009 contribution, with a little leftover to go towards the beginning my of my 2010 fund.
~ Continued to put 6% of each paycheck toward my 401k. My company matches 100% of the first 3%, and 50% of the next 3%. Since I'm still relatively broke, and investing in a Roth IRA each year in addition to my 401k, this is as much as I'm willing to put into it at this point.
~ Began investing monthly in company stock and individual stocks of well-established companies that pay dividends in order to capitalize on low stock prices during a down market, and to continue diversifying my overall investment portfolio.
~ Finished the year reducing my federal student loan debt at a rate of 3% per month, and my private student loan debt at a rate of 0.3% per month. If I continue at this rate, loans will be completely paid off by the end of 2014. This sounds like a very long time from now, but I will be extremely impressed with myself if I can manage to pay off $77k, plus interest, in less than 10 years.
In non-financial 2008 accomplishments, I also:
~Got a promotion and 5% raise at my full-time job, and a dollar-per-hour raise at my part time job (I guess this one is finance-related, too :)) This was almost a year ago, and I'm hoping to add this to my 2009 accomplishments soon.
~Hung out more with co-workers (from both jobs) and attended more social gatherings. Sounds boring, but I'm a pretty shy person who feels most comfortable alone or one-on-one, so this was a pretty big deal for me. Hopefully I can continue on this path in 2009.
~Went on my first business trip - alone. I was really nervous about having to talk to people I didn't know for five days, but it went surprisingly well, and I even made a few friends out of it. Of course, my company (like most companies) is cutting its travel budget, so who knows when I'll get to go on another business trip, but it was still a good experience.
~Read over 30 books. I hope to increase that number in 2009. In fact, I should have at least one finished by the end of the day.
~Began to learn how to knit. So much fun! I'll be writing a separate post about this soon.
I'll be posting my 2009 goals this afternoon- stay tuned...
In 2008, I:
~Landed into this amazing rent-free opportunity!
~ Began using the debt snowball method to eliminate my student loan debt as quickly as possible. You can find a great debt snowball spreadsheet here; I've come across many of these types of spreadsheets, and this was the most useful one I've encountered.
~ Split my savings account into separate accounts to reflect my savings goals, almost meeting my $7k emergency fund goal, and reaching the halfway points of my down payment and fun funds.
~ Fully funded my Roth IRA for 2008, and saved up the full amount for my 2009 contribution, with a little leftover to go towards the beginning my of my 2010 fund.
~ Continued to put 6% of each paycheck toward my 401k. My company matches 100% of the first 3%, and 50% of the next 3%. Since I'm still relatively broke, and investing in a Roth IRA each year in addition to my 401k, this is as much as I'm willing to put into it at this point.
~ Began investing monthly in company stock and individual stocks of well-established companies that pay dividends in order to capitalize on low stock prices during a down market, and to continue diversifying my overall investment portfolio.
~ Finished the year reducing my federal student loan debt at a rate of 3% per month, and my private student loan debt at a rate of 0.3% per month. If I continue at this rate, loans will be completely paid off by the end of 2014. This sounds like a very long time from now, but I will be extremely impressed with myself if I can manage to pay off $77k, plus interest, in less than 10 years.
In non-financial 2008 accomplishments, I also:
~Got a promotion and 5% raise at my full-time job, and a dollar-per-hour raise at my part time job (I guess this one is finance-related, too :)) This was almost a year ago, and I'm hoping to add this to my 2009 accomplishments soon.
~Hung out more with co-workers (from both jobs) and attended more social gatherings. Sounds boring, but I'm a pretty shy person who feels most comfortable alone or one-on-one, so this was a pretty big deal for me. Hopefully I can continue on this path in 2009.
~Went on my first business trip - alone. I was really nervous about having to talk to people I didn't know for five days, but it went surprisingly well, and I even made a few friends out of it. Of course, my company (like most companies) is cutting its travel budget, so who knows when I'll get to go on another business trip, but it was still a good experience.
~Read over 30 books. I hope to increase that number in 2009. In fact, I should have at least one finished by the end of the day.
~Began to learn how to knit. So much fun! I'll be writing a separate post about this soon.
I'll be posting my 2009 goals this afternoon- stay tuned...
Tuesday, December 30, 2008
2008: The Year in Savings
Though I haven't posted much about this, I'm a huge fan of clipping coupons and maximizing savings to get the best prices for items for groceries (at Stop & Shop) and personal items (at CVS). I just returned from my final shopping trip of the year -- let's see how the savings added up for 2008.
Stop & Shop
On average, I shop at Stop & Shop once a week. I buy a majority of my produce here, among other things, and then supplement with items from Trader Joe's. My typical grocery bill is between $20-$25 per week, so I probably spent around $1100 on groceries at Stop & Shop in 2008. According to my receipt this afternoon, I've saved $336.57 this year by purchasing sale items and clipping coupons -- an annual savings of about 30%!
CVS
I love shopping at CVS because I can pick up all of the tolietries and personal items I need for basically nothing. I often leave the store with $20 worth of merchandise for well under $5. If you're interested in learning the extremely valuable practice of shopping at CVS, I'd check out Money Saving Mom's post on CVS 101 here.
According to an email I received from CVS earlier this month, from October 2007 - October 2008, I saved $642.78 from a combination CVS coupons, sales, and Extra Bucks. This doesn't even take into account all of the manufacturer's coupons I used throughout the year. I don't have a record of what I spent out of pocket during that time out, but I know it was nowhere near what I saved. Estimating conservatively from CVS receipts, I usually spend about $50 out of pocket per season, so I'm guessing my spending was a maximum of about $200 per year, when manufacturer's coupons are taken into account -- that means I've saved over 300% in the past year!
Here's hoping for even greater savings in 2009!
Stop & Shop
On average, I shop at Stop & Shop once a week. I buy a majority of my produce here, among other things, and then supplement with items from Trader Joe's. My typical grocery bill is between $20-$25 per week, so I probably spent around $1100 on groceries at Stop & Shop in 2008. According to my receipt this afternoon, I've saved $336.57 this year by purchasing sale items and clipping coupons -- an annual savings of about 30%!
CVS
I love shopping at CVS because I can pick up all of the tolietries and personal items I need for basically nothing. I often leave the store with $20 worth of merchandise for well under $5. If you're interested in learning the extremely valuable practice of shopping at CVS, I'd check out Money Saving Mom's post on CVS 101 here.
According to an email I received from CVS earlier this month, from October 2007 - October 2008, I saved $642.78 from a combination CVS coupons, sales, and Extra Bucks. This doesn't even take into account all of the manufacturer's coupons I used throughout the year. I don't have a record of what I spent out of pocket during that time out, but I know it was nowhere near what I saved. Estimating conservatively from CVS receipts, I usually spend about $50 out of pocket per season, so I'm guessing my spending was a maximum of about $200 per year, when manufacturer's coupons are taken into account -- that means I've saved over 300% in the past year!
Here's hoping for even greater savings in 2009!
Thursday, September 11, 2008
How I got here
When I graduated college in 2006, I took roughly $75,000 in student loans with me. My starting salary at my first job out of college -- just $31,000 -- was less than half that. I lived in a small studio apartment with living expenses around $1,000 per month. Even with my small salary, I felt comfortable about my finances, and I was able to save a decent amount each month. In addition to my full-time job, I had an ongoing freelancing gig I'd been doing for a year or so that brought in a couple of hundred dollars every other month.
In November 2006, things changed: my student loan payments kicked in. The interest rates were all over the place, and my combined monthly payments were over $1,000. In an effort to exert some minor measure of control over the dozen or so bills that were coming in every month at wildly different interest rates, I consolidated most of my loans, bringing my monthly payments down to about $575. I made the payments on time every month and still had a little leftover to put in savings, but I definitely felt squeezed.
A few months passed, and I got a better job in publishing, my field of choice. Had I accepted the $27,000 starting salary offered, I would've taken a $4,000 pay cut, which I just couldn't afford. Despite being told that the starting salary was non-negotiable, I got them to agree to pay me what I had been making at my previous job. Around the same time, I moved into a larger studio that increased my living expenses by about $100 a month. I panicked and started applying for part-time jobs, and wound up landing a job as an innkeeper at a bed & breakfast just down the street from my new apartment. I worked only one shift per week, and after a probationary period, I was making $12 an hour plus monthly bonuses (between $100 - $150) based on sales, bringing in an additional $400 a month, on average.
This February, at my annual review for the full-time job, I was given a promotion and a 5% raise (the company rarely offers more than 3%, pathetically enough). I also received a performance-based bonus of $4,500 a month later. Meanwhile, my innkeeping hourly rate went up to $13 at the time of my one year anniversary. I was still freelancing, too, though not as much since my computer died around Christmas and I couldn't bring myself to buy a new one.
Throughout all of this, I was doing my best to save at least $300 per month, though I frequently put away $500 or $700 when I could, or more, in the case of the aforementioned bonuses. I was aggressively paying down my student loans. I was also investing in a Roth IRA, and putting money into my 401k at work.
Things went on this way for a while. I worked no less than 6 days every week, doing everything I could to pull in extra cash, and saving as much as I could after making my gargantuan student loan payments every month. I worked really hard, and made a dent of about $5,000 on the principle of my student loans within the first year of paying them. I was financially stable, but I didn't *feel* stable at all; I worried about money all the time, and felt guilty any time I went out to eat with my boyfriend, or bought something for myself (which hardly ever happened).
I'm incredibly lucky.
Last month, one of my fellow innkeepers abruptly quit to move out to California, freeing up the one-bedroom apartment attached to the inn. This apartment is given to the innkeeper who agrees to take all the emergency calls that come in after hours. In exchange for being the on-call emergency contact, this person is given the apartment, along with all electricity, gas, cable, and internet costs waived. Though my lease wasn't up until May, I could not pass up this amazing opportunity. I quickly enlisted the help of a broker, rented out my apartment within days, and moved into the inn. I even inherited several pieces of furniture (including a less than one-year old pillowtop mattress) from the girl who lived here before me.
My expenses have decreased dramatically -- I'm now able to save over $1,000 a month in addition to the large payments I apply to my student loans. At this rate, my loans will be paid off within the next 7 years. I'm also putting money away for a downpayment, as I hope to purchase a condo or home within the next couple of years while prices are still low.
Living rent free is great, but it's not without its challenges. With an extra $1,100 in my pocket every month, it's really tempting to spend. People in my life who know about my arrangement pressure me to go out to eat or to go shopping all the time, and frankly, it's hard to say no. When I do make these purchases, I don't feel a lot of the guilt I used to, which scares me. Being able to breathe easier shouldn't mean spending more -- just because I can now afford more doesn't mean I *need* more, afterall. I did just fine for the two and a half years before I moved in here, buying clothes and going out to eat sparingly. I want to hold myself accountable to my goals and financial aspirations while I'm living here. My goal is to live well below my means for the next year and save as much as I can so that I'll never have to pay rent again.
In November 2006, things changed: my student loan payments kicked in. The interest rates were all over the place, and my combined monthly payments were over $1,000. In an effort to exert some minor measure of control over the dozen or so bills that were coming in every month at wildly different interest rates, I consolidated most of my loans, bringing my monthly payments down to about $575. I made the payments on time every month and still had a little leftover to put in savings, but I definitely felt squeezed.
A few months passed, and I got a better job in publishing, my field of choice. Had I accepted the $27,000 starting salary offered, I would've taken a $4,000 pay cut, which I just couldn't afford. Despite being told that the starting salary was non-negotiable, I got them to agree to pay me what I had been making at my previous job. Around the same time, I moved into a larger studio that increased my living expenses by about $100 a month. I panicked and started applying for part-time jobs, and wound up landing a job as an innkeeper at a bed & breakfast just down the street from my new apartment. I worked only one shift per week, and after a probationary period, I was making $12 an hour plus monthly bonuses (between $100 - $150) based on sales, bringing in an additional $400 a month, on average.
This February, at my annual review for the full-time job, I was given a promotion and a 5% raise (the company rarely offers more than 3%, pathetically enough). I also received a performance-based bonus of $4,500 a month later. Meanwhile, my innkeeping hourly rate went up to $13 at the time of my one year anniversary. I was still freelancing, too, though not as much since my computer died around Christmas and I couldn't bring myself to buy a new one.
Throughout all of this, I was doing my best to save at least $300 per month, though I frequently put away $500 or $700 when I could, or more, in the case of the aforementioned bonuses. I was aggressively paying down my student loans. I was also investing in a Roth IRA, and putting money into my 401k at work.
Things went on this way for a while. I worked no less than 6 days every week, doing everything I could to pull in extra cash, and saving as much as I could after making my gargantuan student loan payments every month. I worked really hard, and made a dent of about $5,000 on the principle of my student loans within the first year of paying them. I was financially stable, but I didn't *feel* stable at all; I worried about money all the time, and felt guilty any time I went out to eat with my boyfriend, or bought something for myself (which hardly ever happened).
I'm incredibly lucky.
Last month, one of my fellow innkeepers abruptly quit to move out to California, freeing up the one-bedroom apartment attached to the inn. This apartment is given to the innkeeper who agrees to take all the emergency calls that come in after hours. In exchange for being the on-call emergency contact, this person is given the apartment, along with all electricity, gas, cable, and internet costs waived. Though my lease wasn't up until May, I could not pass up this amazing opportunity. I quickly enlisted the help of a broker, rented out my apartment within days, and moved into the inn. I even inherited several pieces of furniture (including a less than one-year old pillowtop mattress) from the girl who lived here before me.
My expenses have decreased dramatically -- I'm now able to save over $1,000 a month in addition to the large payments I apply to my student loans. At this rate, my loans will be paid off within the next 7 years. I'm also putting money away for a downpayment, as I hope to purchase a condo or home within the next couple of years while prices are still low.
Living rent free is great, but it's not without its challenges. With an extra $1,100 in my pocket every month, it's really tempting to spend. People in my life who know about my arrangement pressure me to go out to eat or to go shopping all the time, and frankly, it's hard to say no. When I do make these purchases, I don't feel a lot of the guilt I used to, which scares me. Being able to breathe easier shouldn't mean spending more -- just because I can now afford more doesn't mean I *need* more, afterall. I did just fine for the two and a half years before I moved in here, buying clothes and going out to eat sparingly. I want to hold myself accountable to my goals and financial aspirations while I'm living here. My goal is to live well below my means for the next year and save as much as I can so that I'll never have to pay rent again.
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