Short and random: A scatter-brained blurp

Challenge....FAIL

I didn't write yesterday. Booooo me. But such is life. Here I am now.

Want to know how much of a scatter brain I am? Tuesday night, I signed up for a free online typing class (because I never learned to type properly) and spent nearly four hours taking lessons on and off during down time at work. This was in anticipation of my new venture as a freelance transcriptionist to make some extra money on the side. It was going so well, I thought, "Hey, I can do this every night to improve my typing skills."  Wednesday, guess what I did?... Not practice my typing. I spent all of my free time at work researching Contract Deeds for Real Estate. You see, my husband and I have a single family rental that we are looking to sell, and the interested parties don't qualify for adequate financing. We figured that we could finance the deal and help them on their way to home ownership, and we would be no worse off than renting to them. Regardless of how different and unfocused the tasks that I choose to do during my downtime, they are both very relevant to the things that I am trying to do with my life in the short- and long-term. Hopefully writing will get me back on the path to being more focused and mindful.

While I'm thinking about it, I'm going to go to that website to practice my typing right now. Challenge: Write again tomorrow. Perhaps I'll share my musings about this whole Contract deed thing.

It has been too long, but what's new?

I always go months between writing in my blog, which I really should not do because writing really helps me to organize my thoughts and my vision for my life. I admit, I can be a real scatter brain. Therefore I am going to take to my blog yet again to help me to refocus and hold myself accountable.

Here is a little of what we have been up to and what I really need to focus on:

      1.      We are looking at houses to buy as a primary residence.

If looking for houses is not enough of a headache, try going into it not knowing exactly what you want. This is the problem my husband and I are having. After looking at a few homes, we finally narrowed down our lists:

-          Less than $150,000 (even though we are aiming for much lower to stay below our means)

-          Taxes less than $6000- This is the unfortunate reality of living in the Chicago suburbs

-          4 bedroom OR 3 bedrooms with an extra living space i.e. finished basement, family room, or den.

-          Master suite with on-suite bathroom

-          At least 1250 square feet

-          Awesome backyard/outdoor living area

Thankfully, we settled on a suburb where all of this is possible.

      2.      I am looking to acquire a rental property by the end of the year.

I would like to buy a 2-3 flat in the City of Chicago. Maybe even two. My ultimate goal is to have cash flow from real estate as a supplement (or main source) to my retirement. I am at the age where I have to start now if I want to own these properties free and clear by retirement age. I know, this is a lot of buying property for one year, and no, my husband is not Daddy Warbucks. I simple have a dream and I believe it is within the realm of possibility. It just takes careful planning and financial discipline. Which brings me to my next goal.

       3.      Clear up all of my debt.

This may be the easiest of my goals to accomplish considering I have been working very hard to keep my debt low anyway. Between my car loan, a small loan I took out for our first investment property, and a couple credit cards that I let the balances get too high to pay off in one month, I have less than $4000 worth of debt. By no means is this insurmountable. This is not even the most unsecured debt I have ever carried- when I was 19 I racked up $6000 on ONE of my credit cards and I was bringing home nearly a quarter of what I make now-, I’m just at the point now where I no longer feel comfortable carrying balances on my credit card. I need to pay that mess off each month. I would feel a lot better if I can put the money I have been paying towards credit cards for the last 10 years (minimum payments or more) towards my emergency fund or any other fund that will bring value to my life. I would much rather save for a vacation or another property. I don’t know about you, but using credit cards always made me feel like I was paying for something twice. I KNOW THAT’S NOT THE CASE, but psychologically I feel like that is what happening. Therefore, for my sanity, I am going to change my relationship with my credit cards. (When you think about it, I do pay for some things twice when I carry the balances and have to pay interest. Bleh!)

         4.      Find a secondary source of income

I believe it was Suze Orman who said that every woman should have a secondary source of income. I totally agree with her. Although I don’t yet know her reasoning, I’m guessing it’s good. My reasoning is that my primary source of income is not really enough. It’s a good income for me to live off and save, but I don’t feel like I have financial freedom. What is financial freedom? I haven’t figured out what it means to me yet, but I figure there is no better time to start increasing my earning potential than while I am willing, eager, and ready.

I called myself increasing my earning potential at work by working more hours, but that proved to be a disaster. Spending those extra hours at sometimes left me too tired to even drive home, and I was too tired to tend to my family. It was a tough few weeks, but it wouldn’t be worth it in the long run. Besides, eight and a half hours in that place is enough! If I am going to make extra money, I need to do it somewhere else. Here are a few of the prospects that I am considering:

-          General Transcriptionist (At-home)- This is no cash cow, but if it’s obtainable extra money, I’ll do it.

-          Property Management (At-home)- for which I would have to obtain my real estate license. This would also be beneficial for acquiring my own rentals in the future.

-          Housekeeping for Short-term rentals. You know, like the ones you rent from Air BnB or HomeAway.

That’s enough for today. I challenge myself to write a post tomorrow. #Accountable

The Dutch Method Part Two

Well, I have been sticking to my Dutch Method of grocery shopping pretty well. On Monday, I picked up some things to get us through the week: Cameron's lunches, milk, and eggs. I also picked up Monday night's dinner, which consisted only of pre-seasoned Italian ground beef and diced tomatoes since I already had noodles, sauce and garlic at home; I also cooked up the last three pieces of tilapia. That all came out to $52.76. Tuesday I made the fried chicken, MacNCheese, and Brussel sprouts- all I had to buy was the chicken. I also picked up a few more snacks for the house so that grocery bill was $12.97. On Wednesday, I'm making string beans seasoned with turkey necks- my favorite- and corn bread. That's all I'm having, but I'm giving Cameron the last leftover drumstick with his. I also picked up a family size bag of Bird's Eye Viola! Garlic Chicken for Thursday's dinner. Viola! is my favorite frozen food and my one of my favorite foods of all time- I'm a simple girl. There's meat, vegetables, pasta, sauce, and it's perfectly seasoned (Spices are my nemesis). It comes in several different meal choices and most importantly, my son will eat it! I personally think its the best thing invented since the washing machine. Getting back on track, my grocery bill which covers Wednesday and Thursday came to $19.79. So far we are at $85.52 for groceries this week and there is one more day left. Friday, I asked my grandmother to teach me how to make her famous dressing. I know there is no holiday, but I need that stuff in my life more than twice a year. She is going to tell me what  I need to buy for that and I will add that to the total later.

I am by no means saying that my way of doing things is good, better or best, I'm just putting it all on the table so that I can better sort through it. I don't know if $100 a week on food is good or bad, but I feel better knowing that I'm not buying a bunch of food that goes to waste.I also like that I am getting rid of miscellaneous canned goods,  frozen veggies, and clearing out the Cabinet of Misfit non-perishables.

I Hate Grocery Shopping

I hate grocery shopping. There is too much stuff in those massive stores. I never know when I am getting a good deal- unless its on bacon. Stuff is never in the same place. There is too much to choose from. The list can go on and on. I just  hate it. I also hate wasting money and I can't stand clutter. To me, grocery shopping is the mash up of these two things. I go to the grocery store and just buy stuff, sometimes with meals in mind, sometimes to just get food in the house. Either way, I end up spending a ton of money and struggling to fit everything in the freezer and cabinets only to realize weeks later that there is a ton of food that no one has or will touch. Its just a big jumbled, expensive mess.

Since I am trying to get a better grip on my finances, I decided to employ a new method of grocery shopping that will eliminate 2 of my 3 problems with shopping. (1) Wasting money and (2) clutter. I still have to deal with actually going into the store -_- While watching an episode of House Hunters International, the American homebuyer in Amsterdam was in a tizzy about the fact that most of the flats that she looked at had only Dorm room-sized refridgerators. The realtor explained to her that most people don't need massive cold closets in their homes because they stop at the market everyday on their way home from work and pick up dinner. Although it took me 3 years to employ the tactic, I thought it was brilliant.

So last week, I made a vow to myself to cook dinner for 5 days and use the Dutch method to grocery shop- my designation, not theirs. If you know me and my attitude towards cooking, this is no minor feat.
So I started, and probably will continue, with very simple meals. I had to keep it realistic and attainable. Here is how it worked out my first week:

Day one- Chili (~$38.86 grocery bill. I also got Cameron's lunches for the week and some snacks)
Day two- Broccoli and cheddar soup ($6.42 grocery bill, only because I bought two, one for next week too!)
Day three- Baked tilapia, mixed veggies, and rice. ($4.37 for fish only. I already had the other stuff)
Day four- I cheated and went to McDonald's ($8.39 for a salad and two burgers)
Day five- I cooked a frozen pizza that I had already.

So by cooking four days this week -three days if you don't think warming up a pizza is cooking- and only buying what I was going to cook that day, I managed to spend $58.04 on groceries. For breakfast, we usually have the same stuff in the house- bacon or sausage, whichever is on sale-; eggs; hash browns; coffee. I also keep cereal, waffles, and honey in the house for my son's breakfast. For lunch, Cameron eats at school, usually a Lunchable, homemade iced tea, a fruit, and a snack; I eat leftovers or not at all. I also keep a box of oatmeal packets at work to eat. My poor husband usually eats leftovers for lunch, but he mostly fends for himself. He was single a long time so he fares well.  

Well that was my first attempt at the Dutch method of grocery shopping. I will be trying it again next week.

Student Loans are Due -_-

My last post really put things into perspective for me. I see what I make and what I HAVE to pay, but I don't really yet see what I am actually spending my money on to make me feel like my roughly $2600 a month (with no rent, mind you) is not working for me.

Here is a break down of what I figured out:
Income: $2600
Fixed Expenses: $815.53 
Variable Expenses: $154.54*

*This includes the balance for my Capital One CC and the minimum payment on my Target CC.
Remaining: $1629.93

As I am writing this, I am seriously considering budgeting a fixed amount per month for variable expenses, say $350. That would cover the Capital One balance and put $223.46 towards my Target CC- a big step towards tackling that balance. And in subsequent months, I would apply the entire $350 to my Target CC and get my balance down to zero in about 3 months. I am only considering this and not yet taking action because my Student Loan consolidation payments start this month :( I will be paying $352 a month for the next 10 years.

My new breakdown is:
Income: $2600
Fixed Expenses: $ 1167.53
Variable Expenses: $154.54*
Remaining: $1278.47

This isn't even considering groceries and gas. On top of these, Little League and Soccer are starting soon with their respective fees of $235 and $75. I am definitely paying Little League in March, but presently I'm not sure when Soccer fees are due. (Remaining: $1043.47)

Since today is Sunday and the beginning of a month, I am going to task myself with recording and itemizing every transaction. And as luck would have it, my gas tank is on E as well so I can count the amount I spend on gas and get a really thorough picture of how I spend money in order to budget better.

I need to make more money

Its not enough. I don't make enough money to support the type of lifestyle that I want. This pay period was the first since I have been working as a full time MLS in the Blood Bank where my bank account did not dwindle down to $300 the Monday after I was paid. This is because I was very careful in monitoring the money that went out this time. I set up auto-pay on everything to avoid late payments, but those have been sneaking up on me too. Today is Saturday, a week before I get paid again, and I have a little more than $500 in my account, not including my $200 emergency fund. I went to Target today and spent about $40 on my TDebit card (5% off with no interest!) so I may be under $500 by the time that processes on Monday. I have cut back on eating out and even buying coffee. If I can keep this up I can fare pretty well with making this little paycheck work.

However, next month my student loan consolidation payments are due. A whopping $351. That doesn't seem like much for close to $90K in loans, and after 120 payments (10 years), I'm done with that. But consider this- after making a considerable effort to keep my account in the black, I have $500 to live off for a week before I get paid again. If that student loan payment was due this week, that would have left me with $149 to live off for a week. Just to keep the bare minimum of food in the house, I spend about $80 a week and gas in my car is about $40 a week. That brings me down to $20 until I get paid again.

Something has got to give. I deserve to be living more comfortably than I am right now. I'm not saying that i need every modern luxury, and I don't think I am above having a budget, but I don't want to worry about overdrawing my account when bills are auto-payed out just because I bought a pair of boots. I work to live, so I want to be able to enjoy life.

Let me put things into perspective: I bring home a net pay of approximately $1300 every two weeks- more or less depending on holidays and unpaid tardies (very rare). Here is how money is shifted around for each pay period:

Cameron's 529 Plan- $50
Fund TSP Loan Account- $50
Fund Car Payment Acct- $180
Savings/Emergency fund- $50 (savings goal: $130+)

That's $330 gone before the Monday after payday!

I also have a few monthly bills that I pay. Some are pretty consistent in cost, some vary- i.e. credit cards. I'm trying to get those credit card costs down to zero until I can get a better grip on my financial situation. Here is how those break down:

Consistent Payments-
Cell phone: $62
House phone-$12.71 (Who has a house phone?! I do.)
Life insurance for myself and offspring- $34.82
Gym- $10.00
Netflix and Hulu- $16.00
NPR- $20 (the pledge drive got me)
Total- 155.53

Variable Payments:
Capital One Credit Card: Balance- $126.54; Interest- 0%; Minimum Payment- $25
    I want to see some results, so for my last payment 2/9, I paid the statement balance of $356.37. For the next payment on 3/8 I plan to pay the statement balance as well. This will leave me with a zero balance on this card, a since of accomplishment, and more money to pay my high interest Target Credit

Target Credit Card: Balance- $913.76; Interest- 22.9%; Minimum Payment- $28
  I used to pay more than the minimum on this account ($75 a month), but I decided to switch to paying the minimum so I could focus on paying pack my smaller cards. So my last two payments to Target were only minimum payments.

Keep in mind, using this strategy, I also achieved a zero balance on my Victoria Secret CC, my TJX CC, and my JCPenny CC. Now I need to put those puppies on ICE!

I got married in December and opened a line of credit for our Wedding rings at KAY Jewelers. That's no interest for 12 months, $120 a month, and done. That one is tricky because sometimes I pay, sometimes my husband pays.

So with fixed payments every month totaling $155.53 and the bi-weekly withdrawals totaling $660 a month ($990 in a month with 3 paydays), I should be bringing home $1784.47. But i think we all know that isn't happening.

Once I pay off these few cards, my next goal will be to figure out how I can bring home more of this supposed $1700.00 extra a month. I should be living like a queen!

Signal Your Intentions

I am an excellent driver. If I weren’t, the State of Illinois would not have given me a driver’s license and renewed it twice over the past nine years.  I really take offense when passengers in my car keep their heads down while I’m driving. I’m not driving too close. Trust me; I have excellent sense of my cars dimensions and what it is capable of. The only problem that I have with driving is EVERYONE ELSE. As a teenager driving in the car with my mom, she used to tense up and all but scream whenever I pressed on the brakes. If my foot is already transitioning to brake and you yell, “Hit the brakes!” obviously my first reaction will be to hit the gas. She’s lucky my stepdad drove a Cadillac- those are some sturdy cars-and that it was his car that I hit and not someone else.

And I really don’t understand traffic. If everyone is trying to get somewhere, what is the hold up?! Just go! Everyone is in such a hurry to get there, and where they have to be is so much more important that where everyone else has to go.

I don’t know if you are familiar with the junction from the Dan Ryan to the Eisenhower Expressway, but this is where you can distinguish the Democrats from the Republicans. There are two lanes. One lane leads to the Eisenhower. Merging from the other lane slows down the main lane. Just get in the main lane, people. If everyone just got in the main lane then we would all be going about our merry way in a single file line. Those who bypass the line only to merge at the junction, thus slowing down traffic should be publically humiliated somehow for this very un-democratic behavior.

One of the biggest problems that I have with other drivers is their refusal to use the turn signal. In every other avenue of life, it is customary to signal your intentions. You don’t cut in front of someone without saying excuse me.  The turn signal is the driver’s way of saying “Excuse me”. I can’t tell you how many times I have been driving on the expressway and the car the next lane over is swerving back and forth in frustration trying to get over. Little do they know, if they just hit that little switch to signal their intentions I would gladly let them get in front of me; they aren’t slowing me down any. And for those people who like to speed up when I turn on my signal to get over, I have some choice words for you! I said “Excuse me”! Who doesn’t get out of the way when someone says excuse me?! Look at the speedometer when I get in front of you. Notice that I didn’t slow you down.

Well, I’m done with my rant for now. And if you take anything away from this post I hope it’s that courtesy in driving makes driving less stressful for us all.