06/08
2012

Moving to a New Site!

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Budgets Suck has served me well over this last year and a half.  I thank all of you who’ve been keeping up with the posts and being my accountability for finances.  Now it’s time to expand the view a little and move to a different url.  I’ll still be running the new site but I will no longer be known as Fifi.  It’ll be hard to let go of the moniker because I love what it stands for to me, but if I want to expand my view and help people in a bigger way, I’m going to have to come out from behind the puppy dog face.

On August 1st, I will reveal my true identity and introduce you to my new site which is still being built!  So come back to Budgets Suck on August 1st and check it out!  In the mean time, I’ll still be giving net worth updates so you can see if I truly made it to net Zero by June 2012!

04/10
2012

How does my Net Worth compare to others?

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I like using calculators loaded with consensus data to see how I stack up when compared to others in like situations.  Looking at Net Worth when compared to Age and Annual Income, I used the CNN Calculators to compare to some national averages.  Overall, I have a lot of catching up to do!

Median net worth for your age is:

$8,525

25-34

Median net worth for your income is:

$168,500

$50,000-74,999

When you compare these numbers with my -$7000 net worth, I’m not doing great.  However, since I’m still on track to get to zero by June, I’m pretty sure I can surpass these averages before I move into the next bar.  Since I’ve upped my networth $60,000 in a year and a half, I can conservatively say I can raise my net worth by $50,000 every two years.  I will surpass my age group within the first year and will surpass my income bracket in about 3 years.  Hopefully, I’ll be making more money annually before then, but we’ll see.
03/08
2012

Mint keeping Savings Accounts Honest

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I try to stay on top of my finances.  But sometimes, you just don’t have time to check every little nuance, like whether or not my savings account has dropped its interest rate.  Way back in May of last year, I split my savings into three different accounts.  It’s made a drastic change in the way I see my finances!  Plus it allowed me to get the most for my money in higher yield interest accounts.  That is, until they drop without any notice to me.

I had found out from others that Amex frequently drops your savings interest rate without telling you just to get you hooked on the higher yield, then pay you less interest when you’re not looking.  Thankfully, Mint was on top of it.  They sent me an email last month telling me, “Hey, Amex is trying to screw you by .16%!”  It might not seem like much, but when I started out at 1% and now find myself at 0.74% (I must’ve missed another drop in there), that can add up.  Mint actually told me I’d lose $6.32 a year in interest as a result of this.  Time to find another savings account!

03/05
2012

Bad Fifi, Bad!

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It seems I’ve been doing quite the poor job of sticking to my budget the past few months. I set my mint budget to rollover each month so I figured I’d eventually wash out a month of shopping with another month of saving. But that doesn’t seem to be what’s happening.  I just keep spending!  Over the past few months, I’m now over budget more than $1200!

While I like to keep a hefty safety net of cash in my bank account, I can’t go on like this and still grow my net worth.  So what to do about it?

Budgeting Woes

The reason my budget doesn’t bounce back is
1.) I do have my budget very conservative to encourage me to spend less.
2.) I see that huge deficit of hundreds of dollars and think, “I’m never gonna be able to get all that back!”  I get discouraged and give up.

So here are my solutions:
1.) Stopped the budgets from rolling over so I don’t get discouraged.  Plus I’ll be able to see exactly which categories give me problems each month.
2.) Instead of changing my budget to be more liberal, I’ve decided to punish myself in a fiscally responsible way.

From now on, each month, whatever total amount I go over budget, that much in cash is being split between my savings accounts.  This means I have an incentive to spend less because I wanna keep that money in my pocket, but if when I do go over, that money will still be with me in my savings.  It’s like playing blackjack at the casino.  Once I’ve doubled my money, I put that money in my pocket, so that all I can do is lose my earnings.  That way, I never leave the table in the hole.

01/04
2012

New Years Resolutions

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We’re all doing em: lose weight, get fit, quit drinking soda…  Why not for your finances?  You know, I don’t like to call them resolutions.  Even though the name means you are RESOLUTE in fulfilling these tasks, the truth in how we see new years resolutions is more like something we hope to get done, or may get done, or would be nice to do.  It’s almost expected of us to fritter away the resolutions just because that’s what everyone else does.  No, I like to call them New Years Goals.  These are goals that I WILL accomplish in 2012!

  1. Be worth nothing!  That’s right, some time in 2012, I will attain a net worth of ZERO!  And I am so looking forward to it.  Coming from -60,000 in Jan 2011, I’m more than amazed how I’ve been able to make the upward climb.  It just shows how little attention I was really paying to my finances and how little planning I had done.  Now I have a plan, I’m sticking to it, and moving forward.
  2. Get a new job.  I know that more income is not the key to financial success but it would really help me catch up with my set backs.  So I need to make more money, get matching 401k, and be HOME more often.  Too much travel. 
  3. Get Real Estate profitable.  My real estate is still back and forth.  It was good earlier this year when all rooms were filled.  But when two tenants leave, you’re back in the negative cash flow each month.  sigh.  I need to get it simpler and cut costs to gain more profit.  Any advice on this one I would greatly appreciate.

That’s it for my New Years Goals.  How bout you guys?  Got some NYGs?!

01/02
2012

The Quest for Credit

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I’ve always liked this video from mint.com. it simplistically and dramatically illustrates the road to being fiscally responsible. If you keep within mind that your debt is a monster who must be tamed then budgeting and saving can actually be fun. You might even get to the point where it doesn’t suck as much. :)


Budget Planner Mint.com

11/02
2011

On schedule to pay off student loans!

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I started out with more than most on student loans.  In fact, I've NEVER met anyone with more student loans than me outside med students.  When I graduated from a private university, I owed $120,000!  Thank goodness I'd never had credit problems and I live pretty cheaply.  Given the amount of debt I've had, I'm actually quite proud that I've been able to live my life pretty fully even paying more than $1000 every month to student loans.

I've had to make it work, and I have.  But last year, things got a little crazy and I lost touch with my financial situation.  That's why I started Budgets Suck in the first place!  I try not to think about what might have been had I not had to pay these student loans.  An extra grand a month could've gone a loooong way, not to mention the life dreams and careers I could've pursued had I not had to worry about money.  But that's negative thinking and regardless of truth, will get you nowhere.  So instead I think of how the debt is decaying and soon will be no more.

I am still on schedule to have my loans paid off by the age of 35!  That's five years from now and I am stoked.  To be exact, here's my current loan stats.

Loan current balance interest monthly payment months to pay off
Sallie Mae 11217 4.13% 240 52
Citi 7349 3.75 162 49
Citi 9429 3.25 205 49
Citi 8799 2.75 190 50
Citi 11131 2.75 240 59

It's really important to go back and revisit these amounts at least once a year.  I just recently reexamined my Sallie Mae loan and I was only paying $132/mo which meant it was going to take 107 months to pay off!  By just upping the amount paid every month by $108, I'll not be done on time in 52 months.  I used an online calculator to figure these things out.  Remember to use whatever tools make your life easier.  BTW, my 35th birthday is 55 months from now.  So that's gonna be a helluva party!

Five years is a while from now and I hope I'll be settled down with someone by then.  Either way, I already know that extra cash is either going to a monthly mortgage for a place of our own or (if we can afford it) straight into savings.  I've lived off little for this long, no sense changing it up if I can be more secure in the future!

It's a long haul, ladies and gentlemen.  It's much easier if you start young.  If you're in your teens and reading this blog, you're already ahead of everyone else.  Please feel free to email me with any questions or post up here.  I'm more than happy to help.  I wish I had someone to teach me about money when I was young, all I can do now is pass on what I've learned through life.

09/21
2011

$100,000 in 5 years!

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Just did a new financial statement and projected forward for my Net Worth and the results are quite promising!  If my calculations are correct, even though I currently have a net worth of -$20,000, if I continue at the same pace I am, I should have a net worth of $100,000 in 5 years.  I know that seems unlikely, so let’s break it down.

120,000 / 5 = $24,000 per year.   24000/12 = $2,000 per month.  I will have to save/gain $2,000 per month from now until September of 2016. That sounds very difficult I know, but in the financial statement I have put together, by that time, I would’ve bought another rental property, creating passive income, as well as gotten a new job and started a business.  In my new job, I’m making $80,000/yr instead of $55,000 and my business is generating $1000/mo extra income.  This is a super happy view of the future I know, but quite within the realm of possibility.  So it gives me some goals to work towards.  Furthermore, at my current rate of net worth increase, i should actually be at $100,000 by January of 2014, a cool 3 years from now.

You can see the tiny graph in the lower left of the actual values thus far.  Assuming growth, on average, stays the same, this trend line will hold true and bu January 2014, my net worth will be $100,000.  I still see it as a rather fantastically positive outlook, but the more I crunch the numbers, the more I start to believe.  And if I, the cynic of all financial cynics, can believe I can reach this goal, then I will!

Main thing, just keep with the system!  Keep saving!  Don’t blow it on some company or investment.  Use proper judgement and risk only what you are allowed to lose.  It’s just like gambling in Vegas.  Never bet the rent money.  :)

09/14
2011

Getting out of Credit Card Debt

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Here’s a great calculator for getting out of credit card debt! It allows you to list multiple cards and find out how long it will take to get debt free if you just make the minimum payments, if you pay a set amount each month to your cards, or how much you must pay each month to get out of debt in a certain amount of time.

And if that weren’t good enough, it allows you to print out a payment schedule to your different cards, calculating the best allotment based on interest rate!  If you have a lot of credit card debt, check this out:  CNN Money – Get out of Credit Card Debt

09/12
2011

Investing in your Home

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A great investment is to own your own home.  If you are renting, all that rent goes and floats away to the landlord and doesn’t serve you at all.  Owning your own home allows you to live in your investment.  Once you’ve managed to save enough for a down payment, you’ll be financially disciplined enough to make monthly mortgage payments on time and budget your expenses accordingly.

Your home will increase in value over the years and should you move, you can sell it for more than you bought it for.  This is always a good deal!  In today’s market, it may seem like a tragic housing market, but in truth it’s a great time for buyers.  With foreclosures rampant, prices are low.  They can only go up from here.  Lenders are being more cautious than before on who they lend to but this can be a good thing for you so you know you can actually afford the mortgage payment you are agreeing to.  NEVER EVER get an adjustable rate mortgage, an ARM.  You never know what that rate will turn out to be, which makes it difficult to budget over the long term.

In fact, if you’re ready for that phase of your life: to stay in one place for a while and want to buy your own place, this should be the first thing you save up for.  Keep your treasure in a savings account or money market account which you can liquidate at any time.  Look around at the place you would like to buy and layout all the necessary finances you will need to purchase that place.  Then plan and save until you can afford it.

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