June 9, 2009
Budgets are Sexy Giveaway
J. Money’s having a giveaway at Budgets are Sexy for three Amazon gift cards ($50, $30, and $20). I’d like y’all to head on over there and cast your votes for me.
Really.
I need a win here, people.
🙂
family
Farewell to the best boy in the world
About sixteen years ago, I met him for the first time. My trainwreck sibling brought home this adorable puppy he had no business adopting because he had not one thing in his life that wasn’t a mess. I was furious at my sibling – he didn’t even take care of himself, how could he drag
Read MoreJune 4, 2009
Changing tactics
Every time I get set in my financial plan, I turn my mind one-quarter turn to the right and find myself seeing it in a slightly, or wholly, different way. That change of focus is, in many cases, a good thing.
So … I thought I had too much cash? No, not really, it was more like I finally realized that my previous worrying was excessive. Not unjustified, just rather obsessive. I am a slightly obsessive personality. Normally, I vent, develop a game plan, set the course and go! This time, I tinkered with the game plan, started off and kept second, third, and fiftieth guessing myself. For months. No wonder I was going slightly mad.
No small part of that is that there’s enough uncertainty in the job market, aside from the rather certain rejections I’ve had, to keep me guessing about how confident I should be.
More, reading articles about folks who planned well, saved, and still couldn’t find a job after months and even years of pounding the pavement catalyzed panic mode. I could literally taste my every fear coming to life: of following my family’s footsteps into unemployment and drudgery, of being the last bastion of support, and spiraling into financial and health failures … just like they did.
That’s one reason I haven’t even mentioned the layoff date to my family. I have no answers for them, other than unemployment +savings, and I can’t even mention the savings because my lousy brother will take that as an excuse to coast even more. The irony, of course, is that I’m hiding a major life event from my family that I support and still live with, yet I still haven’t forgiven my dad for lying to me about his job losses and indebtedness.
After spinning my mental wheels for a while, that steam wears out and leads to more productive thinking like, I can probably take a little of that stash and start investing now. I know that I haven’t maxed out either of my retirement vehicles yet, but with a dwindling income stream, I’d prefer not to lock up any more cash in the 403(b)/401(a)/Roth.
I’ve been wanting to buy some dividend stocks for years. Not on a grand scale. But what am I waiting for? Someone to take my hand and lead me through it? That’s not how I operate and that’s definitely not how I learn. I can read all I want about the schools of thought behind investing, but what I want is basic: to create income and protect assets. I’m looking for dividends and lower prices for companies that are basic and sound.
The temptation is to do it up big: throw five grand in the pot and create a diversified portfolio right from the get-go. But that dips far too heavily into the emergency pot for something that is essentially a business venture, non-essential, and a bit of an analgesic for the financial fear that swamps my common sense every so often.
So! The plan: open up an account with TradeKing using a referral from Sun at The Sun’s Financial Diary, deposit $1000, and buy some stocks. And hold them. No day trader am I.
Simple. Quick, except for setting up the ACH transfer capability which has always seemed rather primitive to me. Easy.
It’s all about finding the comfortable zone between being ultra-safe and taking some risks. I’m not going to get anywhere by stashing all my money in retirement accounts and CDs, nor will I throw caution to the wind. It’s just time to get in the game. More importantly, it’s time to work on things I can do.
June 3, 2009
No please, keep your two cents
Remember how happy I was when I finally rolled over my Rollover IRA?
The pure joy may perhaps be less than obvious, but it was there, I promise. About three weeks after that happy occasion, I received Another Statement from my former brokerage. Wha?
Two cents. A dividend of two cents paid out into the account that was safely and finally closed, keeping it open. Then Chase, in their ongoing brand conversion, opened up a brokerage account for me funded by those two cents. I could just imagine trying to do something with that two cents and being charged another annual service fee. AUGH.
Grumpiness and inertia kept me from doing a darn thing about it until I received a Welcome to Our Brokerage Services! letter yesterday, complete with account number and phone number.
A few minutes later, a friendly fellow with Chase Brokerage services ran a solution by me: write off the two cents and close the account. Yes!! Thank you. They can have that two cents if it means one less account for me to deal with.
June 2, 2009
Blissfully Domestic’s Giveaway
Blissfully Domestic is giving away one lovely Vivianne Tam HP Mini from Intel.
I hadn’t admitted it here yet, but I’ve been ogling Minis wherever I see them, and have firmly slapped my own wrist a number of times for wanting to pet them … and then own one! Especially since my new laptop from December would be decidedly jealous if I actually went out and purchased a travel sized. But winning one in a contest would be A-ok!
The contest ends at 11:59 PM on Monday, June 8, 2009. One winner will be chosen via Random.org. Please read the official contest rules here.
Weekend Wins
- I’m getting better at this cooking thing. Dinner creation: sole, quinoa cooked in a rice-like fashion, and lemon butter haricot verts! [Right, green beans. But the schmancy packaging said haricot verts.]
- And I made a luscious lobster macaroni and cheese, which I forgot to capture on digi-film because we dug in so quickly. It might even be better than my last favorite mac’n’cheese incarnation. I can think of a few changes I’d make to it, though.
- We saw UP this weekend. It was so good. Very cute, moving, a little sad (yes, I teared up), but very good.
- New shoes, 35% off, filed under budget-cheat because they were a gift. They won’t be the multi-purpose walking/casual shoes I was really looking for, but that’s ok because these 993s hug my heels and support them like a good friend. And yes, 35% off is hardly my style when the shoes still ring up to $95, so I can only take my solace in knowing that we clocked in the world’s shortest shoe shopping expedition. Walked in, looked at the wall for a minute, pointed at the ones I wanted. Not counting the time it took Dorky Sales Guy to find the shoes, the selection and decision process took 7 minutes, tops.
- New 1/2 sleeve button down shirt for work, on sale and another 20% off because the shirt was missing a button. Silly people: the shirt comes with an extra button! But of course no big-box retailer is going to pay their employees to sew on a button to save $5. So I will! Thank you.
- And my PF blogger win? We sprung for the 3-D tickets because it was an earlier showing. We used premium movie passes worth $10.50 each, and paid the 3-D surcharge ($5) with a gift card. Total: $26.50. I’m not sure what kind of math they were using for that, though, because 21+5=$26. Except we got to the theatre a little late and the place was packed to the rafters; the only empty seats were in the front row. We’re too old for that nonsense, so we went to Customer Service to exchange the tickets for a later, non 3-D showing. I offered the CS rep our gift card to replenish with $5, and waited. And waited. And waited some more. I could see he was having trouble, at one point fumbling with his own wallet, and I started to grin evilly.
I had no intention of causing trouble for the poor guy, I was just trying to save him the use of a new gift card! But, evidently, as the sweat beads formed on his forehead, I realized he didn’t know how or simply couldn’t add the $5 to the card. He returned with two tickets in hand for the later showing, a free movie voucher card, and said “it’ll be just a minute.” My friend was happy, willing to walk away with the free movie voucher which was worth another $9.50. I, however, stood firm. If nothing else, I insisted, he had to return with the gift card – we still have $5 on that thing and that’s cash value! I don’t care if the value of the voucher was almost equal to the $10 in GC that he owed, I expected that gift card with $5 back. Friend thought I was pushing it, I simply smiled and shooed him off.
Five minutes later, the discombobulated fellow returned, flush with apology, another free movie pass, and the original gift card. I graciously told him not to worry about it, confirmed that the gift card still had the remaining $5 on it, and walked away with two free movie tickets, worth $10 each, in exchange for the “loss” of a $5 value on the gift card.
I could probably have suggested that he simply load up a new card, but that would have been pushing it. He needed to towel off as it was. 🙂
May 31, 2009
May Snapshot
| Retirement Savings |
Roth IRA: $3,843 |
| Emergency Savings |
Catastrophe: $ 29,594 |
| Short Term Goals |
Car Maintenance: $1,068 |
| Long Term Goals |
House Down Payment: $101 |
| Investment Loans |
Prosper-ish: $12,630 |
| Total Assets |
Illiquid: $ 27,540 |
| Debt and Liabilities |
AX: $154 |
| Net Worth |
$ 91,513 (88,931) |
There wasn’t a whole lot of change this month other than dumping more into my retirement accounts. I did spend a lot, though, and I’m relieved that the damage doesn’t appear to be much worse.
The end of next month should be much more exciting!
Addendum: Clearly, I was too lazy to make any real comments when I first posted this. The overall numbers look goodish, but the reality is I saved next to nothing in cash, and spent a lot. More than half the credit card balance is covered by the car insurance fund, but the absolute numbers are still ridiculously high for someone approaching unemployment.
I’m not fussing about it, but I am publicly noting that the spending needs to stop or slow down to a trickle.
On the other hand, I AM flush with cash enough to be much more flexible in my approach to paychecks and bills. I kicked up my 403(b) contribution for one paycheck to the max, which leaves me with next to nothing in my second June check. There’s plenty of money in the expense fund, so that’s no sweat. And I’m getting my final check, complete with vacation hours, two weeks after the non-check, so there’s really no stress on that front. Being responsible is so worth this flexibility!
May 30, 2009
Cash Bloat
Ah yes, hindsight. I knew this layoff was coming, most likely mid-year, yet it took me until April to start making appropriate adjustments.
Earlier this year, it was important to have cash on hand, so I cut back on retirement contributions to a bare-bones 3% (not including company match, which was maxed). My reasoning at the time was sound, but flawed due to incomplete knowledge.
Error One: I’m entitled to severance equal to one month pay when I separate from this employer, as well as over 200 hours of vacation pay. Didn’t take that cash payout into consideration. I made this assumption because I hoped to quit before the layoff which would have meant no severance.
Error Two: For another, my cash savings program was much more successful than anticipated. In January, I had $7000 for routine monthly expenses and $23,000 in savings. Since then, I’ve added ~$10,000 to those accounts, all while still paying bills. I could have spared a few thousand for retirement savings, considering the “sale prices” of the past several months, without being cash-poor & investment-rich post-employment.
Error Three: I didn’t consider that I’d be eligible for unemployment, and that it’ll cover all my monthly bills. At the time the plan was conceived, monthly expenses were well over $2000/month, so I estimated needing at least $35,000 in cash for 12 months of unemployment. In the meantime, the truck was sold, the family car was totaled and if nothing else, my monthly needs improved tremendously thanks to both events.
Being that pessimistic means I have an unusual stash of cash, just sitting around, while only having made just a little over $2000 in retirement contributions. Ergh. I hate throwing away both the opportunity to invest at lower prices and the tax benefit.
Don’t get me wrong, I’m certainly not bemoaning doing better than expected, for heaven’s sake. I’m just wishing I’d done a little better at making decisions based on the long-term, or at least considering the whole fiscal year. I subscribe to the “hope for the best, plan for the worst” mentality, but I clearly need to work on my automatic worst-worst-worst case scenario planning reflex. It’s a little dire. After all, it’s not like it’s the Zombie Apocalypse.
Of course, I haven’t hyperventilated about being a bag lady in a while, so maybe that was necessary for peace of mind.
For now, I’ll make a small adjustment to my contributions for the last check and leave payroll alone. Maybe I’ll make a few smaller investments, in addition to the CD I just bought. No sense in fussing too when we have so little time left, not until I learn how to read the future!
[Dear Magic 8-ball: will I find a good, well-paying job with benefits adjusted for COLA this year? What’s that? “Concentrate and ask again”? Hmph. I prefer Neil Gaiman‘s Magic 8-ball. I miss it.]