Deciding where the money should go

This isn’t a finance blog but I do have some financial goals over there on my list. A couple weeks ago Mike and I had a “State of the Union” financial meeting, and made some big decisions.

First, we’re going to try living on one income, mine. We’ll take $500/month from Mike’s pay and use it to accelerate debt payoff. And the rest of his pay will go to savings.

We also upped our 401k contributions to get each of our company matches.

We decided to pay off my car loan. We’ll take that monthly payment, add it to the $500, and start a "debt snowball" (here’s a link to Dave Ramsey’s debt snowball explanation). First we’ll pay off Mike’s student loan, then mine. By the time we’re through with that we will be able to add an extra $1100 to the mortgage payment each month. In theory. The biggest point is that we’ll have all debt paid off except the mortgage in early 2009, instead of 2012.

Of course things will change and emergencies will crop up. But at least we are in charge of our money, not the other way around.

P.S. The "State of the Union" idea came from the blog Make Love, Not Debt

Goal:Earn extra $5,000

Free Money Finance decided to create a goal for himself to make an extra $10,000 this year. That’s outside of his regular salary.

I got to thinking that maybe I could have a similar goal. After all, last year I made at least an extra $1250 by winning an award, having my craft design published, and a few other ebay and etsy sales. And that was without really trying.

So I’m going to make my own crazy goal:

Make an extra $5,000 in 2007.
This does not mean ask for a raise.
This does not include work bonuses.
This is not a goal to "save" $5,000.
This does not include earned interest or stock earnings.

How?
Sell craft designs
Freelance work
Lottery ( ha ha)
Sell crafts
Ebay sales
Book sales
??

What will I do with the money?
Maybe start the House Fund.

Progress
Jan 16: Amazon book sale $26.79 Total = $26.79
Feb 2: Slot machines in Puerto Rico $8.00 Total = $34.79
Feb 27: Discover card cash back $20.00 Total = $54.79
Mar 8: Ebay sale of mat cutter $17.82 Total = $72.61
Mar 22: Etsy sale $4.97 Total = $77.58
Apr 17: Ebay sale of african mask $6.40 Total = $83.98
Apr 23: Discover card cash back $20.00 Total = $103.98
Apr 24: Ebay sale of jewelry box $6.98 Total = $110.96
Apr 26: Amazon book sale $11.94 Total = $122.90
May 1: Amazon book sale $164.06! Total = $286.96
May 5: Played piano for first communion $25 Total = $311.96
May 13: Gambling in Indiana $251.50 Total = $563.46
May 21: 2 Discover card cash backs $40 Total = $603.46
May 31: Amazon book sale $86.64 Total = $690.10
June 4: Amazon book sale $11.92 Total = $702.02
June 9: EBay sale, rubber stamp $3.84 Total = $705.86
June 18: Half.com book sale $7.40 Total = $713.26
June 19: Discover card cash back $20 Total = $733.26
June 21: Discover card cash back $20 Total = $753.26
July 9: Credit card reward $5 Total = $758.26
Aug 3: Pack-O-Fun payment for craft design $125 Total = $883.26
Aug 4: I won $100 cash at Mike's work picnic Total = $983.26
Aug 6: e-search payment $1.00 Total = $984.26
Aug 13: Divident payment from State Farm (unexpected) $65.20 Total = $1,049.46
Aug 27: mySurvey.com rewards check $10 Total = $1,059.46
Sept 14: Associated Content payment $4.49 Total = $1,063.95
Sept 18: eSearch.com payment $3.00 Total = $1,066.95
Sept 23: Amazon certificate for survey $10.00 Total = $1,076.95
Sept 28: Cox cable rebate $100.00 Total = $1,176.95
Oct 3: Mysurvey.com reward $10.00 Total = $1,186.95
Oct 16: Bonus for opening account $25 Total = $1,211.95
Oct 25: Discover card cash back $20 Total = $1,231.95
Oct 31: half.com sale $7.48 Total = $1,239.43
Nov 5: half.com sale $9.18 Total = $1,248.61
Nov 12: half.com sale $6.46 Total = $1,255.07
Nov 13: mysurvey.com reward $10 Total = $1,265.07
Nov 26: Discover cash back, two of them $40 Total = $1,305.07
Nov 30: Starbucks gift card reward $10 Total = $1,315.07

Goal met: emergency fund!

I reached another financial goal this weekend. I now have $5,000 in my savings account for emergencies. Goal accomplished.

Financial Goals - met!

If you look over on the sidebar you may notice that I paid off all my credit card debt.

All I can say is it's about time. The debt never got much above $3,000, but there is absolutely no reason for a single gal like me who makes a good salary to have any credit card debt at all. And now - I don't!

This means I can accelerate my goal to save up $5,000 by June 1.

New Savings Goal

Since I am so close to reaching my original goal of saving $3,600 for an emergency fund, I decided to up the ante.

NEW Emergency Fund Goal
$5,000 by May 31, 2006

Start:
Jan 31 - balance $3,151.23
Feb 28 - add 596.85, Balance $3,748.08
Mar 31 - add 158.06 , Balance $3,906.14
Apr 30 - add 406.40, Balance $4,312.54
May 31 - add 344.65, Balance $4,657.19 - I didn't make my goal, but came close!
June 30 - add 419.28, Balance $5,076.47 GOAL MET!

another goal met

I did it. I saved up $269 for Christmas presents. I am stunned by how painless it was. Most of it was rebate money, ebay money, and cashback bonus money. I really only took $60 out of my checking account to start it.

The next short-term savings goal will be to save up for a digital camera -- but that's a project for next year. So any unexpected money will go straight to the emergency fund, which is not growing as fast as I'd like.

I spent the weekend in Kentucky with Mike's family, so i have no crafty news to report. I need to catch up with the laundry, cleaning, and grocery shopping.

Goal: Set aside $265 for Christmas

I need approximately $265 for Christmas presents this year.
I'm going to set aside roughly $20 a week until Christmas.
I opened an account at Emigrant Direct with an 4% APY.


Balance:
Oct 3: $20
Oct 17: (+$40) = $60
Oct 31: ($.10 interest) = $60.10
Nov 7: (+$36.51 eBay money) = $96.61
Nov 9: (+$0.38 PayPal deposits) = $96.99
Nov 11: (+$44.82 half.com sale) = $141.81
Nov 19: (+$4.87 half.com sale)
(+$59.00 refund check) = $205.68
Nov 20: (+$40 Discover cash back) = $245.68
Nov 21: (+$3.81 Amazon book sale) = $249.49
Nov 27: (+$19.83 eBay sales) = $269.32

GOAL COMPLETE! One month before Christmas! Time to start spending.

Contest with myself

ebay Profits:

June 20: $2.48 Total = $2.48 (ok, i've got a long way to go!)
June 27:$8.17 Total = $10.65
June 30:$12.30 Total = $22.95
July 12: Total = $42.79
July 15: Total = $586.83 YAHOO!
July 19:Total = $595.74
July 28:Total = $627.21, $81.07 if you don't count the Sensor
Aug 1:Total = $645.12, $98.98 Woo hoo, very close to my goal of $100!
Aug 9:Total = $653.24, or $107.10 for gambling GOAL REACHED!

I'm not sure I'll be making much more money. I've run out of things to sell. Oh, i've still got plenty of junk i'm getting rid of, it's just not ebay worthy.



I have decided to move this fall.

Therefore, I am trying to get rid of as much stuff as I can. Some of it I'm trying to sell on eBay.

Leather-like brief case
Film-changing bag
Hair-straightening iron

I decided to challenge myself to make as much money as I can. I'll set aside that money for gambling in Vegas!

Goal: eliminate cc debt, for real this time!

Here's another goal for the financial pages

What? Pay off credit card debt
How? Pay $250 a month while the interest rate is 0%

Starting balance:$3058
April: paid $250, balance $2808
May: paid $250, balance $2558
June: paid $250, balance $2308
July: paid $250, balance $2058
August: paid $250, balance $1808
September: paid $250, balance $1558
October: paid $250, balance $1308
November:paid $58, tough month balance $1250
December: paid $250, balance $1000
January: paid $350, balance $650
February: paid $250, balance $400 paid $400 BALANCE 0


GOAL ACCOMPLISHED FEB 29. 2006

Financial Goals: Part 1

GOAL: Aggressively save $3600 for an emergency savings fund.

Start: $639.45

December 2004: +543.21 Total: $1,182.66
January 2005: +543.21 Total: $1,726.20
February 2005: +343.21 Total: $2,069.41 - but this will go down when i pay Uncle Sam and car insurance. (yay, emergency fund is living up to its name!)
March 2005: -($1,056.17) Total: $1,013.24
April 2005: +383.56 Total: $1,396.80
May 2005: +275.59 Total: $1,672.39
June 2005: +424.93 Total: $2,097.32
July 2005: (-$276.63) Down this month cause I had to pay deposit on the rent. Total: $1,820.69
August 2005 (-$98.72) Down again for the first month's rent and buying a computer Total $1,721.97
Sept. 2005 + $425.74 Total: $2,147.71
Oct. 2005 +$146.55 Total: $2,294.29
Nov 2005 +$186.18 Total: $2,480.47
Dec 2005 +$411.03 Total: $2,891.50
Jan 2006 +$259.73 Total: $3,151.23