Awakening

Kinda like being jolted out of a deep, sweet sleep, I've been "awakened" to the tasks between me and financial prosperity.  While it makes all the sense in the world to do this stuff, I have the added "benefit" of "no choice" to prompt me onward, and/or serve as my drill sergeant.

Here's what I've accomplished this week:


1.  Created the quickie budget of monthly necessities to determine where the dollars come in, and what requires the dollars to go out.

2.  Organized my desk and financial files.  This was quite a feat as I'd allowed all manner of junk mail, bobby pins, old to-do lists, and toys in disrepair to languish on the desk.  An auxiliary stack of at least six months of paid bills and records had been messily piled next to (not in to) the file cabinet as well.  I did find my passport, though.  Bonus.

3.  Completed a cash flow analysis.  This included analyzing the last three months of expenses and finding out exactly the adventures and misadventures of my money.  It also required looking up all consumer debt balances and percentage rates.  Doing this absolutely kicked me in the ass.  Frankly put,  I'm upside down.

4.  Created a September cash flow plan prioritizing all expenses and subtracted that amount from funds available this month.  Dave Ramsey calls this "spending your money on paper" or "naming every dollar."  Another epiphanous step.  The process alerted me to exactly how much of an impact each expense "costs" my pocket book.  I'll be short this month.  While that's frightening news, it's much easier to receive and plan for that conclusion now than it would have been when to get a "surprise" email from the bank about a series of overdrafts.

5.  The September shortage prompted a series of humbling, but potentially bottomline-reducing phone calls.

• Landlord - Q:  May I please pay a lower rent these next six months?  A:  Perhaps.  (This surprised me!  I wasn't aware that this would even be considered!)
• Chase Master Card - Q:  May I please take advantage of lower interest rates?  A:  No.  None are available FOR YOU at this time.
• Capital One Visa - Q:  May I please take advantage of lower interest rates?  A:  No.  
• Western Oregon Waste:  May I please decrease service each month?  A:  Yes.  (Saved $15.00 every three months!)
• Verizon FIOS - Q:  Are there any less expensive rate plans I may qualify for? A:  Nope. (I'm at the least expensive for non-Verizon, teacher, wireless only customers.  Good to know.)
• California Casualty Insurance:  After comparing rate quotes for car and renters' insurance, I found this company (who has a working relationship with the Oregon Education Association) offered me premiums that reduced my monthly insurance budget by $20.00 a month for identical coverage.
• Netflix:  downgraded from three DVD's at a time to one.   Saved $8.00!  (As a non-tv/cable family, we usually access their "View Instantly" service for our screen fix.)
• Medical insurance benefits:  Through our school district I re-evaluated my medical coverage during the open enrollment period.  I found I can save $83.00 a month and that the district will put 67% of what they would have paid for the more expensive premiums in to a Section 125 plan which will allow me to be reimbursed for co-pays, prescriptions, and other non-covered items.  Can't really understand why I didn't understand this LAST year when the opportunity became available, but I'm glad to be on the boat this time around.

6.  Despite the fact that Dave Ramsey thinks debt "con"solidation loans are a bunch of hooey, I contacted my bank for options.  Though, I was denied the loan due to my credit to income ratio,  the conversation I shared with Lisa, the loan adviser, was...uplifting.  Turns out she's a single mom who actually turned her financial state around after a similar turn of circumstances a few years ago.  Lisa repeatedly told me I was making a wise choice to take this one now, rather than later.  She even suggested that I start planning my "debts gone" celebration.  If I could, I'd invite her.  She inspired me a ton.

Even though hearing I did not qualify for a loan was deflating, grasping that a plan to debtlessness requires diligence offered me hope.  An "ah-ha!" moment.  Pay off my consumer debt in five years or less is feasible.

Apparently, I may qualify if I can coordinate a co-signer.  Perhaps that would improve the interest rates as well.  But, cosigning is another action Dave condemns.  Not so sure how I feel about that.  Whether wise or not, I'll make more calls on Monday to learn about other loan "products."

7.  Brainstormed a list of possible income streams including reviving my pet and house sitting business "All Taken Care Of", signing on for extra jobs at school (like tutoring, teaching yoga, Saturday School monitoring, proctoring SATs, working at our summer school), pursuing other employment options, and moving.  Least attractive to me is moving.  I'm willing to do a lot before moving my son AGAIN, even if it is just a mile or so away.  He's a flexible, amiable kid.  But, let me please avoid that step.

8.  Scoured the house for things to sell.  Books = Powells.  Clothes = Buffalo Exchange and New to You.  Higher ticket items (tv, bike, jewelry) = Craigslist and eBay.  And, it looks like my sweet JettaWagon is on the chopping block.  The payments are low in comparison to many folks who are buying cars, but not having that $200.00 walk out the door for the next two years would help a ton.

9.  Cashed in past purchases that needed to be returned and lottery scratch it tickets from Christmas.  The Lotto is ever present in Oregon, it seems.  But try to redeem them?  Where the heck do I go for that?!   Finally pulled into a minimart; they knew exactly what to do with me.  As the clerk scanned my tickets, a little chime rang from the computer and a monitor read, "Congratulations!" It did kinda feel...good.  No wonder folks keep playing...

10.  Engaged in humbling conversations with my boyfriend and parents about what I've amassed and what I need to do.  It's one thing to realize in the privacy of my own now tidy home office how stupid and immature my relationship with money has been.  But it's another all together to speak that truth out loud to folks whose opinions I value.  Kind of like the difference between playing tennis on wii, and actually playing tennis...on a real court...with real racket and ball and sweat.  As I watched the details sink into their brains and the mixture of concern, disbelief, and empathy cloud their eyes I asked myself (and I'm sure they did too...) "How can an intelligent woman have been so dumb?"

11.  Teamed with my son to create a "commissions" list for him to earn money by working around the house.  We chose six chores and assigned them amounts he could earn if he does them each week.  Only six dollars a week will teach him the value of work and responsibility and will help me have a little more time to attend to my desk or catch up with myself.  Money well invested.

12.  Began the "cash envelopes" strategy for food, gas, and fun dollars. My purse now houses those three envelopes and the amount budgeted to each.  After years of paying only only with plastic (both debit and credit), it's mighty strange to hand over the green.  And stranger still to be given back change...and coin!  The little one and I are brainstorming some schemes for our change....

13.  Continuing to research, learn, and apply how to make money work for me.  I'm listening to Dave Ramsey's Peace University CD's in the car.  He's providing tons of food for thought, encouragement, and tools.  But, I'm also seeking other input.  Friends from around the world have emailed or called with tips, suggestions, and encouragement.  I'm amazed by the resources I'd overlooked or feigned ignorance of.  There really is no mystery when it comes to money - only spend what you've got.  And do smart stuff with the money you have.  Duh.

14.  Used coupons...funny how I'd clip and let languish those buggers until they'd expire.  But now, now I'm redeeming them!  Yesterday I just got two free pairs of Victoria Secret undies!  See, that's fine by me!  Who knows when I'll have the actual dollars to buy new drawers again.  Thanks, Vicky!

And old gift cards with partial balances?  They'll start riding around in my "fun" envelope; never know when an itch to make a purchase will tempt.  With ye olde gift card, I'll be able to come home with something new without leaving part of my budget at the store. Sweet.

15  Created a list of anticipated expenses like birthdays and holidays and trips so that I can begin allocating funds and ideas for them.  I've already decided what I'll inexpensively give as Christmas gifts this year.  Ho! Ho! Ho!

16.  Admitted to friends that I can't afford to join in on upcoming weekends away.  This has been a tough one.  For so many years I've splurged on such things because "I deserved it."  But, I hadn't stashed money away, which would later cause me to charge other things because I'd run out of cash.  The memories I've collected at such gatherings are priceless, but the credit I've amassed is pricey.  Since I know this condition is temporary...I'm sucking it up.

17.  Counted my blessings...hourly.  I'm what Mr. Ramsey calls "broke".  I'm searching for ways to make ends meet between now and Sept. 30.  On a larger scale, I have at least five years of scrimping and paying off debt to go.  But, thank goodness this awareness has shaken me up now, at this point in my life.  Thank goodness for the encouragement and support of my boyfriend, family, and friends.  Thank goodness I'm relatively healthy and and have a clean, safe home for my little one and I.  Thank goodness I have a steady job I love.  Universe, thank you.  I know I can do this.

Some wins:
I've trimmed $132 from my monthly expenses
I've collected $83.00 from items returned, sold, and cashed
I've listed $395.00 worth of items for sale on ebay and Craigslist*
I'm more organized and focused than I've been in months

I'm AWAKE!


*let me know if you are looking for a fabulous car, television, youth-sized bike, pyrrha necklace, or sassy pair of designer jeans :D