It's been quite awhile--I do apologize. The apartment hunting really ate my life for a week and a half or so there, and I've been recovering since we signed a lease last Tuesday. That's right! Signed a lease!
K and I will be Brooklyn residents at the end of the month, and it feels a little bit like the end of an era. I'm a born-and-raised Manhattanite, so it'll be a bit of an adjustment.
My personal rent bill is going from $625 to $750, which is a big bump. The raise (about $90/month in real terms) will make much of the difference, but I'm also going to have to dial down my 401(k) contributions. While doing so is a bit disappointing, I've been contributing a pretty sizable amount up until now (about $115/paycheck), and reducing that to about $60/paycheck will allow me to pay my rent while still earning the full employer match in my 401(k) this year. I'm just going to get from here to December on that--my budget will need to be totally retooled then anyway, since I'll (hopefully) have met my Freedom Fund goal, and my travel fund will get much more urgent, and everything will be in flux some more.
We've paid the security deposit and the first month's rent, but have yet to figure out the situation with the broker fee--we're still hoping to negotiate the broker down from her draconian 12% figure, and it's all a little bit chaotic right now. Having pulled $1250 from savings is scary, even though I'm pretty confident that it'll be paid back when we get our security deposit back from our current place.
There's a limbo period in which many balls must be kept in the air. I'm just hoping not to drop any.
Monday, May 19, 2008
Goodness.
Friday, February 08, 2008
Breathe, EM, Breathe
I'm in a state of high financial anxiety right now. There are a lot of expenses piling up, and a lot of balls in the air, and I feel like I'm about to let them all come crashing down in a heap. Here's the breakdown:
1) My taxes
Problem: I owe money, somewhere in the neighborhood of $175-$200
Solution: Don't file right now. This will give me some time to save up the money. I'll file in March or April.
2) My medical visits
Problem: I'll owe $300 at the end of the month for two medical visits my insurance may or may not cover. I was hoping that the check from a previous insurance claim would cover this, but when I called the insurance company today to check on its status, I got the old "We have no record of receiving that claim, Ma'am" business.
Solution: Unclear. I have two options: 1) dip into savings, or 2) ask my mom to cover the bill. She would, but I'm not sure I want to ask. Alternately, 3) I can work up a ton of hours on my office freelance project before I hand it over to someone else and hope that I can come out of that with $300. Then if the claim money comes in, I can use it to cover the tax bill. This is the best option, I think, especially since things are a little light at work this week, and I have some extra time.
3) My MetroCard reimbursements
Problem: I filed a claim for reimbursement a little late, and wasn't sure if it would get through in time. It didn't. At the end of this month, the grace period will start on those charges, and if they're not paid by the end of it, I'll pay finance charges. I've never paid finance charges. I don't want to start now.
Solution: Actually, I should be able to wait on this one. Because Chase applies payments to old charges first (even if in my head I'm paying for something specific), as long as I get the reimbursement check at the beginning of next month as I should, I'll just pay the two MetroCards off with that. I put in a call to the company about the claim status--just to make sure they received that claim--and was assured that it will be processed at the end of this month. They're a very reliable company, so, not too many worries there.
4) K's birthday
Problem: It's expensive to treat someone as well as I want to treat K for his 30th birthday. I'm not going into specifics, because baby, I know you read this.
Solution: Live very frugally for the next two or three weeks and splurge on the birthday weekend. Problematically, though, I have a dear friend flying into New York for an impromptu visit next weekend. I promised her brunch, but I think for the rest of the weekend we can do the old "walk around, go to cheap-or-free museums, have drinks at my apartment instead of at a bar" routine familiar to 24-year-olds the world over.
5) Valentine's day
Problem: We want to do something nice, but at the same time: K's birthday!
Solution: Cook a nice dinner in. My dad said he'd buy me the ingredients for my special ricotta cheesecake if I'd make him one, too. Which I'm happy to do. Then I think I'll do some kind of salad and shrimp scampi as an entree--delicious, and the ingredients aren't too expensive.
6) The GRE in Literature in English
Problem: With all the financial worrying I'm doing, I'm not in a good headspace for studying.
Solution: BREATHE. CHILL. STUDY.
Tuesday, January 08, 2008
After a Visit to HR
So, I'm officially switched to the Roth 401(k), though I'll miss Thursday's paycheck (drat!). I made this choice largely because of what commenters reminded me when I last posted about this option: that I probably won't have this option forever (because I probably won't be working here forever, and laws change, and whatnot) so it's smart to take advantage of it while I've got it, and while I'm young and in a low tax bracket (at a historically low tax level, too). Because the contribution percentage is set aside and then has the appropriate taxes deducted from it, I bumped up the contribution to 9%--I can't remember whether it was 7% or 8% before--so as to put myself on track to get the full $2,000 match. I can always tinker with that when I get a paycheck if it's too much or not enough.
I also got information on our corporate discount at NYSC--turns out, you can set up the membership fees to function as a payroll deduction. I'm not sure whether that means the membership is paid pretax or not, and I'm not sure how it works with the "extra" paychecks that fall outside the two-paychecks-a-month pattern, so I'll have to ask. I was hoping that there might be some room for negotiation--like, say, "Hey, if I pay cash for a year up-front, will you give me 20% off?" But the membership plan that my company offers is a good one--the enrollment fee is waived, and it's a substantially discounted price for a membership that allows me to use any NYSC location at any time. Not too shabby for $77/month. Essentially, then, this will work out much as I thought it would: the gym membership plus the switch to the Roth 401(k) will eat up my raise. That's fine with me. Both are worth my money.
Friday, January 04, 2008
Financial Goals for 2008
I've been thinking seriously about these--apologies for the delay. But without further ado, here are my 2008 financial goals.
Earn the full match in my 401(k)
I'm going to be switching over to the Roth 401(k), and my company's match has been bumped up to $2,000 (dollar-for-dollar!), so this will be a more challenging goal than it was this year.
Save $4,000 in the Freedom Fund, for an end balance of $10,000
This figure will just about cover six months' worth of frugal living, so it's a nice stash to have in case of life change or emergency. This means regular monthly contributions of about $250, plus saving the slack in my extra paychecks. Quite doable. If it's looking too doable as the year progresses, I may revise this goal upwards a touch, but since I may have to adjust my 401(k) contributions up, this one may be harder than it looks.
Give $1,200 to good causes
Yes, indeed, this is less than I gave this year. But a hundred bucks a month is a nice round number, and I really don't think it's ideal for me to be resenting my giving plan (and I did feel that way a couple of times this year), so I'm going to take this one in baby steps. The figure is still a chunk of money for someone of my age and income. I also need to devote some thought to creating a giving plan that makes my donations meaningful--I felt a little haphazard this year.
Earn $1,500 of non-salary income, earmarked for graduate school application expenses
This is going to be a big challenge, especially since I'm going to give up the freelance work I do through my employer. But I'm going to try to earn some money through the blog (you'll note I'm continuing to run the Prosper referral ad), and I'm going to talk to a local coffee shop about maybe doing some contract baking. And all those tiny Pinecone Research checks count, too! I'll get a goal meter up on my sidebar for this one.
Buy a friend a drink at least once a month
And not in the "I'll get this round, you get the next round" way, either. This seems like a strange goal, I know. But I want to be careful that I don't get tight-fisted, and I want to prioritize my friendships. I'm not going to be too picky about what it is I'm buying--coffee or a snack counts just as much as a beer, as long as it's bought during social time together and not reimbursed.
Achieve a $35,000 net worth
This one seems the likely result of achieving all of the above goals. I'll revisit it at the six-month mark.
You'll note that there's no goal pertaining to the Travel Fund. That's because it's not a priority right now. I'll keep up my $50/month automatic transfers, but I'm not going to be pushing this one this year, partially because it's not as urgent if I'm not taking my trip until summer of '09 and partially just because I'm going to have other things on my mind.
So onwards and upwards. May we all enjoy success in 2008.
Tuesday, January 01, 2008
My 2007 Financial Progress: The Numbers
I had five financial goals for 2007. I also, somewhere along the line, developed an unofficial goal of reaching a savings goal of $5,500 in my Freedom Fund. For whatever reason, that goal was the most important to me. It represents progress towards being able to do what I want to do with my life.
And as of this very morning, that goal is met. My Freedom Fund account at ING reads $5,500, which actually represents cash savings from this year of somewhat less than $4,500 (the balance also includes a CD that matured). And I've transfered my beloved-and-generous aunt's $500 Christmas check in, so it'll stand at $6,000 for the year. And as to the rest of them?
1. Give 5% of my income.
My gross salary income for the year was $31,615.37. I gave $1,371.45 to good causes this year. That's 4.3%--short of the goal. Not by much, but still short. I copped out of giving for a couple paychecks (or maybe three?) this summer when money was tight. Had I given that money, I would still actually have been a little short (4.9%), so this goal will need a little rejiggering for next year.
2. Open a Roth and automate contributions.
Sort of. I actually funded my Roth in a lump sum, with the money my parents gave me. But the end is accomplished—the money my parents gave me maxed the thing out.
3. Earn the full employer match in my 401(k).
Big fat check, and I'm proud of this one.
4. Open and automate contributions to a travel fund towards a savings goal of $2,000.
No. But this one was by choice—I just wanted to prioritize the Freedom Fund as that goal grew in size and priority.
5. Triple my net worth.
Stupidly (as Moom pointed out at the time), I didn't count my checking account in my net worth when I set this goal. When I started this blog, though, I listed out every penny I had, an though it had clearly come up somewhat in the next two months, even if it had been $7,000, it would be well and truly tripled. And I bet it wasn't even that high—I bet it's more like quadrupled. My net worth as of today is $21,247, which is a modest increase from last month of 2.27% and well clear of my unofficial goal of $20,000.
So I think I made some pretty good progress. And this is just the numbers.
Friday, December 21, 2007
False Hopes
Someone came around the office with envelopes today. For a lovely, fleeting second, I thought, bonus? But it was only the pay stub for the paycheck we'll get while on Christmas break (today is my last day of work until January 2, huzzah!). It's not such a bad deal to have money deposited whilst you're lazing about with friends for nearly two weeks.
Plus, they raised the 401(k) match $500 for next year, so that's not such a bad deal.
Monday, September 24, 2007
News
My big medical claim was just processed by my insurance company--it popped up on my online claim center--which means that I can start looking for that big fat check in the mail, and start looking forward to re-beefing up the ol' Freedom Fund.
So that's good news.
Other good news: I decided to buy three pairs of tights, a pair of season must-have buckled ankle boots, and a sweater just as a 30% off coupon for the online retailer in question rolled into my inbox.
...and I have a meeting with both of my bosses in a couple of hours to discuss, I guess, my raise and/or potential promotion. And I am terrified. I'm debating forwarding on to them an email I received today from an author about how great I am, but I think that's too blatantly self-aggrandizing, and I'll let it go.
Tuesday, September 11, 2007
Freedom Fund: The Final Frontier (of 2007)
Two more of my medical bills have been processed by my insurance company, but they're not the big ones. I'm waiting for the big ones to roll through, so that I can replenish my emergency savings account.
I keep watching the balance on my Freedom Fund account--I was surprised by how nervous it made me to see that number drop to $450. It really does provide a sense of safety, that little cushion, and I had a sort of free-floating anxiety without it, a sense that I might be caught unprepared for something, though I didn't know what. Now, with the CD rolled in, some of my reimbursements redeposited, and new contributions, it's up to $2,250, and I don't have to hyperventilate, but I'll still feel way better when I can deposit the rest of the reimbursement checks and bump it up above $4,000 for the first time. Exciting!
We're rolling into the final quarter of the year, now, so I have to start thinking seriously about making sure I meet my goals for this year. I was definitely stretching when I bumped my emergency fund goal for the year to $5,000. I should definitely hit it if I get a raise (even just the same amount as I got at my last review), but without that, it'll be a tough milestone to reach (though not impossible). I need to begin giving some thought to where I want my emergency fund to end up, ultimately, but I can get more serious about figuring that out as I get more serious about figuring out what I want to do with the next year or so of my life. (I have a tendency to over-plan--I start to make plans before I really have all the necessary information.)
Regardless of the goals I set for '08, I'm excited about the final push to my '07 goal. I like the challenge of a goal that's high but not impossibly out of reach, and I'm looking forward to the confidence, both in safety and in freedom of choice, that a bigger emergency fund will make possible.
Wednesday, August 15, 2007
Reimbursement Aftermath
So, part of my recent insurance reimbursement claim was processed, but, mysteriously, not the other part. They were sent together, in the same envelope. Curious. I called up about it today, and was told by a very helpful rep to fax him a copy of my previous claim directly, which I did. I'm also submitting another set of bills today. I'm frankly not sure if the reimbursements will cover my outlay--and there'll be a whole complicated parental thing if they don't, and I don't want to deal with that at all, so I'm just hoping very hard that they do.
I had a recent debacle with my dad and a bill--a very tiny, dinky, stupid bill--where he'd said he'd pay it and then I'd sign over the reimbursement check to him, only he didn't pay it, and they were sending the mail to my parents' apartment, and my parents are on vacation, and--well, you get the idea. I paid them a couple of days after they said they were going to send it (all $100 of it) to collections, but I sent a letter explaining the circumstances, so hopefully my credit won't get dinged. The point is, though, I'd like to separate my finances, even the medical stuff like this, from my parents' as much as possible. I wonder if there's a new system we could set up to minimize their involvement--ideally, of course, I'd find someone who could bill my insurance directly, but the chances of finding such a person in the field I need are slim to none, and so it seems that for the moment there will have to be some parental assistance.
All this just as I start having trouble with the ball of my left foot and being told I should see a podiatrist. On that score, though, I've done a good job--found someone who takes my insurance, so I can just pay the co-pay myself, and not deal with anyone else (except, you know, the medical billing office & insurance company), and called right up and made an appointment. I know y'all think that's remedial life skills, but I'm pretty proud of myself. And looking forward to future medical billing running smoothly.
Wednesday, August 01, 2007
Barriers, Again or: The Emergency Fund, Vindicated
Well, here's a mighty embarrassing situation.
I've let a bunch of medical bills pile up without applying for reimbursement. I've had this luxury because either a) my father has paid them, on the agreement that I'd pass the reimbursement checks over to him, or b) they are addressed to my father with the idea that he will pay them. My father is on vacation, not on the continent, and hard to reach by mail, so he asked me to pay a current bill out of the reimbursement checks for previous bills.
Only there aren't any reimbursement checks for previous bills, because I haven't filed for reimbursement, because I do not know how, and things I don't know how to do wig me out. This is my great weakness in almost all aspects of my life.
So.
I went to a doctor's appointment yesterday (I'm keeping the nature of my ongoing medical issue to myself, but it's nothing urgent), and she was like, "Here's something awkward we need to discuss..." and I was like, "Word," and explained how what was supposed to happen was stalled by my incompetence.
She was awfully nice about it--explained how to file a claim to the best of her ability--but nevertheless, it would be pretty hugely unfair to be like, "hey, I'm just going to leave you waiting around for money that you earned, because I'm weird about stuff I don't know how to do." So, I got to say, "I'll write you a check."
And because I've saved diligently, I can write her a check. I'll need to transfer the money out of my E-fund, but the money's there. Not that it doesn't make me nervous to let it out of my bank account and roam free, because it does, but I guess there's no way around it. And the reimbursement should quickly replenish the stores.
Nevertheless, I'm nervous.
Tuesday, February 20, 2007
Barriers
I'm in a pretty slow time, financially: there's not much to do at the moment (I'm not complaining). The one thing I need to not let off my financial radar is filing for FSA reimbursement by the end of this week. If I file for reimbursement by the 24th, I should be reimbursed in a timely enough fashion that I shouldn't have to lay out any of my own money for next month's Metrocard. Nevertheless, I'm concerned about my ability to do so. Here's the barrier: I don't know where the forms are. My HR rep explained thusly: "They're right outside my old office." Of course, I wasn't here before she moved offices, so...I have no idea where that is, and I'm embarassed to ask. Yep: that's the barrier. That's it. I'm embarassed that I haven't been here long enough to know where someone's old office is, and reluctant to ask yet another question that underlines that fact.
It's amazing how something as insignificant as that can get between a girl and the $76 she needs to get around the city, but it can. Hm.
Thursday, January 11, 2007
Tax Savings
I got my first paycheck of the year today, which means it's my first paycheck adjusted for flexible spending and 401(k) witholdings.
Previously, my take-home pay was $889. Now, after witholding $80 (7%) for my 401(k) contribution and $35 for my travel FSA, it's coming in at $806. That's $115 on which I don't pay taxes, and thus, about $20 in taxes saved every two weeks, for a projected yearly savings of $520. Not bad. I'll take it.
