On October 29,2009, I made a decision to be "Financially Free by Fifty"- including paying off the home mortgage! My goals to make this decision a reality were as follows.
1. Pay off all credit cards by 8/1/2011.
2. Pay off all other debt and loans by 8/1/2016.
3. Build an emergency fund of $2000 by 6/1/2010.
4. Pay cash or use debit card for all purchases and financial transactions.
Overall, I feel good about my progress though there are always things that can be done better. Here is a quick update on how things are going. Feel free to ask for more details!
1. Credit Card Debt - Last year at this time, I had six credit cards with balances. In the past twelve months, I am proud to say I have eliminated 61% of my credit card debt! Last year, a couple cards had balances of a few hundred dollars while one or two were in 5-digit territory. My goal was to pay all of them off by 8/1/2011 and with a 61% decline YTD, I feel I am well on my way. Four are paid off and two have balances. I am steadily paying one down that had almost a $12,000 on it last year (much higher than I care to admit:). The second one that remains is kind of a transaction account for travel and miscellaneous spending, and I admit I've not kept pace with paying the full balance off every month. Unfortunately I did have 73% of my credit cards paid off until I hit a rough spot in June and July and one of the balances began increasing again. All things considered, I feel good about my progress and very confident about meeting my goal of paying off my credit cards by 8/1/2011. Wish me luck!
2. All Other Debt - My goal was to pay off all other debt by 8/1/2016. That includes four loans that are scheduled to be paid off as follows: Aug. 2011; Nov. 2012; Dec. 2012; and Aug. 2014. If the one with the highest rate is paid off first, I'll be able to take that monthly payment and apply it to other debt thus paying the other three off sooner than scheduled. The monthly payment for these four loans totals $1325 so this will be a nice amount to apply to the home mortgage which is due Mar. 2025. While I paid off 61% of my credit cards, I've only paid of 9% of my total debt. With a little effort, sticking with the plan, and maybe even some luck, I'm confident the 8/1/2016 goal is achievable.
3. Emergency Fund - I admit I started off good then fell off the wagon for a while on this one. Luckily I recovered and now have exceeded this goal by having $3500 in my emergency fund which exceeds the $2000 goal. Woo hoo!
4. No More Credit Cards - With just one credit card being used now, I just need to keep reminding myself to pay with cash and check every time I am able. With a negative experience with my debit card, and the significant risks of using one, I gave up on that a few months ago. The trouble is that I am bad about carrying cash around, so I try to have a couple checks and a few dollars handy. Overall, I would say this is manageable and an area without any major concerns. I noticed that two things really help. The first is to give the boys their lunch money at the beginning of every week -- a small change that has made a big impact for me and for them as I used to do this daily instead of weekly. The second is that I now have my Bank parking bill taken directly out of my paycheck. These two things minimized the need for me to carry cash. I can use my one credit card for just about everything else, and pay it off at any time. I just have to make sure to actively manage what I'm spending money on!
One very wise decision I made at the end of last year was to refinance the home mortgage. This not only helped pay off and consolidate some debt (including two of my husband Alan's bills), we also got a phenomenal long-term interest rate with very low transaction fees and are saving hundreds monthly on our mortgage payment.
On another note, I am fortunate to have increased my overall net worth my a fairly sizeable double digit percent increase. Part of the increase was due to the decreases in my debt levels and mortgage value. I have benefitted from a bounceback in the financial markets and seen my 401(k) and equity balances increase nicely. As John, our 7 Steps instructor said, periodically check your net worth and make sure it is heading in the right direction! I'm thankful that mine is:)
If I had to give myself a grade, it would be a "B" for what I achieved this past year. I had a plan and met most of the goals and milestones but had a couple trouble spots (using my credit card and keeping pace with building my emergency fund). This is offset with positive highlights in the area of debt consolidation, sizeable decreases in credit card debt, respectable descreases in overall debt, and a very pleasing increase in net worth.
Looking ahead, there are some bigger expenses like property taxes, a mission trip, and Christmas that I will proactively manage so I can continue the good progress made to date.
I'm open to any comments, questions, or suggestions that anyone may have on my "Financially Free by Fifty" progress!
Friday, October 29, 2010
Monday, May 17, 2010
Fraudulent Charges
I check all my credit/bank account balances often. Today I noticed three charges that just weren't right. All were for the same amount ($314.91), one from WalMart and two from Target. Though I'm traveling (and it cost me money to make a call from the hotel!), I called the credit card company right away to alert them. They confirmed the charges were made in Mansfield and online. Account closed, charges reimbursed, and investigation form is on its way for me to complete.
Although I have paid off all but one credit card, I still do one other one for everyday purchases. I just don't carry cash, and I'd much rather purchase things using my credit card rather than with my debit card. Had this been fraud relating to my debit card, I'm not aware of any recourse that I would have from my bank to get reimbursed. Way too many risks with the debit card and absolutely no way to protect from getting your bank account(s) cleaned out. Keep that in mind if you are a big debit card user!
Although I have paid off all but one credit card, I still do one other one for everyday purchases. I just don't carry cash, and I'd much rather purchase things using my credit card rather than with my debit card. Had this been fraud relating to my debit card, I'm not aware of any recourse that I would have from my bank to get reimbursed. Way too many risks with the debit card and absolutely no way to protect from getting your bank account(s) cleaned out. Keep that in mind if you are a big debit card user!
Saturday, May 8, 2010
Progress Towards Financial Freedom!
Since I'm helping facilitate the 7 Steps to Financial Freedom class, I get an opportunity to go through the materials again as we work through each chapter together. This includes things like the 4-week Spending Diary, Balance Sheet, Summary of Debts, and Budget. Whew!
OK, so I didn't actually re-do the documenting of each and every item I spent money on for the past 4 weeks by doing the spending diary again. But it did make me more aware of things I spend money on, and whether I am using cash or credit for my purchases. This is important because one of my goals was to no longer use credit cards for purchases. So far, so good!
John, our instructor from the first 7 Steps class, recommended updating our Balance Sheet every six months. I updated mine on 4/18/10. Amazingly, this showed that my net worth increased $77,011 or 24% since 10/11/09! Having a positive increase over time is desireable, and I would say I am heading in the right direction!
I knocked a few items off of my Summary of Debts sheet, which I did previously mention in my refinancing posts. No adjustments needed for the budget, at least for now!
Anyone out there know there net worth??!!
OK, so I didn't actually re-do the documenting of each and every item I spent money on for the past 4 weeks by doing the spending diary again. But it did make me more aware of things I spend money on, and whether I am using cash or credit for my purchases. This is important because one of my goals was to no longer use credit cards for purchases. So far, so good!
John, our instructor from the first 7 Steps class, recommended updating our Balance Sheet every six months. I updated mine on 4/18/10. Amazingly, this showed that my net worth increased $77,011 or 24% since 10/11/09! Having a positive increase over time is desireable, and I would say I am heading in the right direction!
I knocked a few items off of my Summary of Debts sheet, which I did previously mention in my refinancing posts. No adjustments needed for the budget, at least for now!
Anyone out there know there net worth??!!
Credit Score Factors
Recently read an article by Teresa Dixon Murray that showed a very good breakdown to help "explain the wacky world of credit scores".
Everybody starts with 350 points. If you're breathing, you have 350.
You have the potential to get up to roughly 500 more points.
Everybody starts with 350 points. If you're breathing, you have 350.
You have the potential to get up to roughly 500 more points.
- You can add up to 175 points (35 percent of your 500 points) based on how good your payment history is. It really takes a payment that's 30 days late to zing you bad.
- You can add 150 points based on the amount you owe on all loans and credit accounts. The amount and the percentage available credit that you're using factor in. (Using less than roughly 30 percent of all available credit is good.)
- You can add 75 points for having a long credit history (more than 20 years is great). If your credit history is short, it will hurt you.
- You can add 50 points for not having many inquiries for new credit. (More than two in two years is undesireable.)
- You can add 50 points based on the types of credit you have. Home and car loans are good. A couple of credit cards are fine. Variety is good, but accounts through finance companies (or things like rent-to-own stores) are not so good.
7 Steps Overall, 3 Sessions to Go!
The 7 Steps program at St. Ambrose is off and running -- kind of. We started off with a sizeable class but attendance has been low. Each week there have been 2-3 attendees, much lower than the 8-10 originally registered. Those in attendance are getting very personalized attention! This last class was very free flowing, covering whatever topics or material the participants wanted to discuss. They commented that they actually thought it was the best class yet.
Next week we are scheduled off due to Ascension. But the participants were eager to meet up on our off week at a local establishment and continue the dialogue in a more casual setting. So Madd Chef's, here we come! They are even interested in the Clifton Stengths Finder, so I'll be able to provide them materials to learn their top 5 signature themes and then work with them in one-on-one coaching sessions.
Next week we are scheduled off due to Ascension. But the participants were eager to meet up on our off week at a local establishment and continue the dialogue in a more casual setting. So Madd Chef's, here we come! They are even interested in the Clifton Stengths Finder, so I'll be able to provide them materials to learn their top 5 signature themes and then work with them in one-on-one coaching sessions.
Thursday, March 18, 2010
7 Steps to Financial Freedom - Spring 2010 Session
Well, today I got to help facilitate the Spring Session of 7 Steps to Financial Freedom! There are 8 people in the class though only 4 could make it this evening. All 4 are eager to learn and interested in making a change in their financial life! Now that the orientation session is over, we can get into the 7 steps over the course of the next couple months. Looking forward to it!
Monday, March 15, 2010
Refinance Finale!
Wow! Our contact at Century Federal really responded quickly when I told her one of the refinance checks to pay off one credit card didn't post yet. It had been almost 2 weeks since the check was sent out. She immediately put a stop payment on the first check and FedEx'd another check. Of course I had to send a new copy of the statement to show that there was still an outstanding balance. Within 2 days, payment was posted. Finally! Now all of our refinancing transactions are settled and the first payment actually was made on 3/15/10. Sigh of relief..... and a big smile:>
Thursday, March 11, 2010
Progress
Not sure what happened but the last credit card to be paid off is still not paid off. My loan officer at Century Federal was helpful in working through a fix. She FedEx'd another check and put a stop payment on the first check which has not been cashed yet. With any luck, this will be the last action needed to complete our home refinance and bill consolidation transactions!
Saturday, March 6, 2010
Still Riding the Refi Tide
It's been an interesting ride since we signed the paperwork to refinance our home mortgage on 2/20/10....
Some of the easy stuff has been working with our oan officer and staff at Century Federal. Credit unions are definitely the way to go for personalized services -- making you feel like a valued customer -- as well as very reasonable fees and transaction costs. Keep this last part in mind especially!
With our refinance, we were paying off our existing mortgage, our home equity, and three credit card bills. The home equity payoff was easiest since it was to Century Federal. The home mortgage and credit cards payoffs were easy too, since I just had to provide copies of my last statement and the loan officer took care of everything. Checks were mailed out 2/26/10 to pay these off.
PAYOFF STATUS:
1. Home mortgage: paid in full 3/1/10
2. Home equity: paid in full 2/26/10
3. Credit card #1: paid 3/1/10; still owe a balance due to a couple factors :( (now paid off)
4. Credit card #2: paid on 3/1/10; remaining interest charges paid on 3/6/10
5. Credit card #3: still not paid as of 3/6/10 (now paid off)
I had such a hard time working with CitiMortgage to get the payoff balance on my loan with them. First, they intake all these requests through their automated phone service. At the end of the process, after you've typed in all the needed info, I learned there was a $25 fee !! to fax out the payoff statement and that it would take 24 hours to send the fax. However, I needed it on that day, and with an outrageous fee of $25 to send a fax I thought I should be able to get it sent on the day that I needed it. So, I press "0" to talk to an operator and give her my request. She then proceeds to tell me the payoff amount includes $50 in fees to fax the payoff statement. Outrageous again! Their system charged me once for the automated request and again for asking her to send it out today since the 24 hour turnaround was unacceptable. It took me 20 more minutes and a request to talk to her supervisor to get the second fax fee waived. Oh my! On top of it, she didn't listen to me when I told her I wanted to pay it off today. Instead, I get a statement and payoff amount reflecting a 4/1/10 payoff date, which means that I have to pay an extra month's interest of about $600+. This will have an impact on paying off one of the credit cards in full. And, I'll need to wait 30 days to get the excess dollars paid mailed back to me in a check with my escrow balance refund.
And I'm not sure what happened to the check sent on 2/26/10 to pay off credit card #3. Still tracking down info on that one....
Some of the easy stuff has been working with our oan officer and staff at Century Federal. Credit unions are definitely the way to go for personalized services -- making you feel like a valued customer -- as well as very reasonable fees and transaction costs. Keep this last part in mind especially!
With our refinance, we were paying off our existing mortgage, our home equity, and three credit card bills. The home equity payoff was easiest since it was to Century Federal. The home mortgage and credit cards payoffs were easy too, since I just had to provide copies of my last statement and the loan officer took care of everything. Checks were mailed out 2/26/10 to pay these off.
PAYOFF STATUS:
1. Home mortgage: paid in full 3/1/10
2. Home equity: paid in full 2/26/10
3. Credit card #1: paid 3/1/10; still owe a balance due to a couple factors :( (now paid off)
4. Credit card #2: paid on 3/1/10; remaining interest charges paid on 3/6/10
5. Credit card #3: still not paid as of 3/6/10 (now paid off)
I had such a hard time working with CitiMortgage to get the payoff balance on my loan with them. First, they intake all these requests through their automated phone service. At the end of the process, after you've typed in all the needed info, I learned there was a $25 fee !! to fax out the payoff statement and that it would take 24 hours to send the fax. However, I needed it on that day, and with an outrageous fee of $25 to send a fax I thought I should be able to get it sent on the day that I needed it. So, I press "0" to talk to an operator and give her my request. She then proceeds to tell me the payoff amount includes $50 in fees to fax the payoff statement. Outrageous again! Their system charged me once for the automated request and again for asking her to send it out today since the 24 hour turnaround was unacceptable. It took me 20 more minutes and a request to talk to her supervisor to get the second fax fee waived. Oh my! On top of it, she didn't listen to me when I told her I wanted to pay it off today. Instead, I get a statement and payoff amount reflecting a 4/1/10 payoff date, which means that I have to pay an extra month's interest of about $600+. This will have an impact on paying off one of the credit cards in full. And, I'll need to wait 30 days to get the excess dollars paid mailed back to me in a check with my escrow balance refund.
And I'm not sure what happened to the check sent on 2/26/10 to pay off credit card #3. Still tracking down info on that one....
Saturday, February 27, 2010
Book Review: Total Money Makeover by Dave Ramsey
Here's a link to a book review that looks like a good read. Total Money Makeover by Dave Ramsey. A fitting title for something I'm trying to accomplish!
http://www.stepuptothecall.blogspot.com/2010//02/review-total-money-makeover-by-dave.html
In reading the book highlights, the author points out some of the same concepts found in the 7 Steps program. Maybe I could have written the book!
All the best on your path to financial freedom.....Tracy
http://www.stepuptothecall.blogspot.com/2010//02/review-total-money-makeover-by-dave.html
In reading the book highlights, the author points out some of the same concepts found in the 7 Steps program. Maybe I could have written the book!
All the best on your path to financial freedom.....Tracy
Sunday, February 21, 2010
Now We're Talking Refinancing!!!
Yesterday was our big day --- My husband and I refinanced our home mortgage loan for real this time! We worked through my local credit union and feel like we got such a great deal and outstanding service. What a dramatic difference from working with our current mortgage company! I'm not sure why I didn't finance our home through the credit union in the beginning?
Here's what we were able to do with our refinancing:
-Lowered our rate from 5.375% to 4.35%
-Added one year to the term from 14 years to 15 years
-Lowered our monthly mortgage payment by $25
-Paid off three credit cards and the home equity loan by consolidating them into the mortgage thereby eliminating $450 per month in minimum monthly payments
-Achieved an ROI (return on investment) of about 3 months considering total transaction fees of $1400 (including the cost of the appraisal from the first refi attempt)
-Since we are saving so much, I am able to pay extra on our new mortgage from the start which will enable me to pay it off earlier than the 15-year term
I will have a great story to tell when I help teach the upcoming 7 Steps to Financial Freedom!!!
Here's what we were able to do with our refinancing:
-Lowered our rate from 5.375% to 4.35%
-Added one year to the term from 14 years to 15 years
-Lowered our monthly mortgage payment by $25
-Paid off three credit cards and the home equity loan by consolidating them into the mortgage thereby eliminating $450 per month in minimum monthly payments
-Achieved an ROI (return on investment) of about 3 months considering total transaction fees of $1400 (including the cost of the appraisal from the first refi attempt)
-Since we are saving so much, I am able to pay extra on our new mortgage from the start which will enable me to pay it off earlier than the 15-year term
I will have a great story to tell when I help teach the upcoming 7 Steps to Financial Freedom!!!
Friday, February 5, 2010
Look Into Red Flags and Understand Your Recission Rights
I might have mentioned in my previous blog post that we signed paperwork Tuesday night to refinance our mortgage. One little thing occurred during the document signing process that turned out to be a deal-breaker in the end. The signing officer presented us with instructions to close our home equity loan once it was paid off with the refinance proceeds. Wow, what a surprise! This was the first we had heard that this was a requirement! Since it was new info, we didn't want to sign the account closing document, but were reassured that we had three days to rescind the transaction if we couldn't come to agreement with our mortgage company. BIG RED FLAG!
Of course, it was difficult to get in touch with anyone but when I did, they reiterated the fact that the equity line needed to be closed. Not a happy camper at this point....why didn't they tell me up front about this requirement? Since we have plenty of equity in the house, even after the refinance, why can't the line be kept open? It took time and cost money to set up, and it was there for us to access emergency funds if needed.... ANOTHER RED FLAG!
So by Friday, I finally got around to calling my Credit Union to see what my options were from their standpoint. My loan officer Ellen took my call and I explained my dilemma. Here first question: why aren't you refinancing your mortgage with us? Quite frankly, the thought never crossed my mind! She gave a quick run-down of the rates (4.4% or a tenth of a percent lower), terms (14 years as we have now), and fees of about $1100 (much lower than what we are paying for the other refi we have in progress)! You have my attention, let me explore this some more.... Ellen was very helpful in answering my questions and recommends I talk to the branch manager since I kind of want to get input on whether I should switch companies for my refinance.
I'm transferred to the branch manager/loan officer and we discussed my situation. Not only was she very informative in answering my questions, she understood my desire to get going fast and offered to drop off a mortgage application packet on her way home in Medina. Talk about customer focus! Though an approval cannot be provided at this point, things look promising.
After assessing the situation, and reflecting on the lack of disclosure and timely response, I decide Friday evening to exercise our right to rescind the mortgage refinance. Thank goodness we had until midnight on the third day to act. There were four ways to exercise this right, and I chose to both email and fax the recission notice. I confirmed the following Monday that the notice was received and processed with a refund due.
Over the weekend I filled out most of the new refinance paperwork. Lucky me, the required documentation was less than half of what it was for the first transaction. Also, I later learned that we are able to reuse the appraisal which saves us a few hundred dollars. Every little bit helps!
Another red flag was when I got home from work on Monday, we had received a FedEx envelope with an urgent message and second notice to close the home equity account. In addition, we also got a bill to close out our tax escrow account -- so that it could be opened anew? -- which would cost over $2000. Again, this was new information to me!
Our second refinance is still in the approval process, but we feel well informed and confident in an approval decision. It actually may work out even better because I may be able to consolidate a couple other loans in the process.
Wish us luck!
Of course, it was difficult to get in touch with anyone but when I did, they reiterated the fact that the equity line needed to be closed. Not a happy camper at this point....why didn't they tell me up front about this requirement? Since we have plenty of equity in the house, even after the refinance, why can't the line be kept open? It took time and cost money to set up, and it was there for us to access emergency funds if needed.... ANOTHER RED FLAG!
So by Friday, I finally got around to calling my Credit Union to see what my options were from their standpoint. My loan officer Ellen took my call and I explained my dilemma. Here first question: why aren't you refinancing your mortgage with us? Quite frankly, the thought never crossed my mind! She gave a quick run-down of the rates (4.4% or a tenth of a percent lower), terms (14 years as we have now), and fees of about $1100 (much lower than what we are paying for the other refi we have in progress)! You have my attention, let me explore this some more.... Ellen was very helpful in answering my questions and recommends I talk to the branch manager since I kind of want to get input on whether I should switch companies for my refinance.
I'm transferred to the branch manager/loan officer and we discussed my situation. Not only was she very informative in answering my questions, she understood my desire to get going fast and offered to drop off a mortgage application packet on her way home in Medina. Talk about customer focus! Though an approval cannot be provided at this point, things look promising.
After assessing the situation, and reflecting on the lack of disclosure and timely response, I decide Friday evening to exercise our right to rescind the mortgage refinance. Thank goodness we had until midnight on the third day to act. There were four ways to exercise this right, and I chose to both email and fax the recission notice. I confirmed the following Monday that the notice was received and processed with a refund due.
Over the weekend I filled out most of the new refinance paperwork. Lucky me, the required documentation was less than half of what it was for the first transaction. Also, I later learned that we are able to reuse the appraisal which saves us a few hundred dollars. Every little bit helps!
Another red flag was when I got home from work on Monday, we had received a FedEx envelope with an urgent message and second notice to close the home equity account. In addition, we also got a bill to close out our tax escrow account -- so that it could be opened anew? -- which would cost over $2000. Again, this was new information to me!
Our second refinance is still in the approval process, but we feel well informed and confident in an approval decision. It actually may work out even better because I may be able to consolidate a couple other loans in the process.
Wish us luck!
Monday, February 1, 2010
Helping Teach 7 Steps to Financial Freedom
Having recently completed the 7 Steps to Financial Freedom class in the Fall, I've put many of the core principles to work in my personal life. Some examples are:
To my surprise, the instructor (John Rodhe) for our 7 Steps class recently reached out to me to ask if I would help run the next the next sessions at our parish on Thursdays beginning in March. He really would like to have someone help out especially since his previous partner is no longer able to help due to health matters I believe. Plus, he would like to get younger people involved in the 7 Steps program. I share this same goal!
I say to my surprise because officially, the instructor told our entire class that he wasn't graduating us from the Fall class. He thought as a group we still had a long way to go. So that means that I haven't graduated from the program yet! Nonetheless, it will be a great opportunity to share what I've learned and provide a real-life example of early successes that can be achieved by implementing the principles taught in the class.
Looking forward to next steps!
- Saving with a purpose starting with building an emergency fund
- Using cash or debit card rather than credit card for purchases
- Reducing debt aggressively
- Making a plan and sticking to it
- Celebrating successes when milestones are reached
To my surprise, the instructor (John Rodhe) for our 7 Steps class recently reached out to me to ask if I would help run the next the next sessions at our parish on Thursdays beginning in March. He really would like to have someone help out especially since his previous partner is no longer able to help due to health matters I believe. Plus, he would like to get younger people involved in the 7 Steps program. I share this same goal!
I say to my surprise because officially, the instructor told our entire class that he wasn't graduating us from the Fall class. He thought as a group we still had a long way to go. So that means that I haven't graduated from the program yet! Nonetheless, it will be a great opportunity to share what I've learned and provide a real-life example of early successes that can be achieved by implementing the principles taught in the class.
Looking forward to next steps!
Wednesday, January 27, 2010
Home Mortgage Refinance
Last night we finished a process that we began in early December -- we signed the paperwork for our home mortgage refinance! Working with our current mortgage company, we were able to refinance at a rate of 4.5% (from 5.3875%), pay off our original mortgage and the second mortgage (home equity line), and maintain the current term of 14 years. We will save $150 per month and thousands of dollars in interest payments over the life of the loan. Since I worked with our current company, the time I spent was small -- about 30-40 minutes on the initial call providing information, some time gathering required documentation (pay stubs, W2's, etc.), keeping track of the status, and signing paperwork. In total, Alan and I probably spent about 6-8 hours in total to get this done. Not a bad return on investment!
Next steps: Update my overall financial plan to reflect this action and celebrate (ok, only a little:).
Next steps: Update my overall financial plan to reflect this action and celebrate (ok, only a little:).
Sunday, December 13, 2009
Setting and Working within a Budget for Christmas
One of the ways to become financial free is to spend within or below your means, even for unanticipated events if it can be done. So, I have set a budget for all my Christmas spending and will work within that dollar amount - nothing more. Better yet, I asked Alan yesterday if he thought about creating a budget for Christmas and he was already ahead of me! I guess good pre-planning pays off!
2010 Financial Planning
Today I spent a couple hours working on a financial plan for 2010! I was pretty excited to see that I will definitely be able to stay on track with the financial freedom goals I set in late October of this year. In fact, my projects show that I will be able to pay off the four remaining credit cards all by July 2011. This is pretty significant and will allow me to start putting that money to other uses. The best part is that I will achieve this goal without sacrificing my savings goals/targets or without having to use my credit cards for future purchases.
Speaking of savings, I am definitely on track with my savings goal as well. My first milestone comes up in February, and then the second one is in June 2010. One of significant events I built into my 2010 plan is to completely save any and all year-end performance bonus monies I may receive to really show a strong commitment to savings. I thought about doing this in 2009, but have decided against it because I am anxious to pay off my credit cards before rates go higher.:)
Speaking of savings, I am definitely on track with my savings goal as well. My first milestone comes up in February, and then the second one is in June 2010. One of significant events I built into my 2010 plan is to completely save any and all year-end performance bonus monies I may receive to really show a strong commitment to savings. I thought about doing this in 2009, but have decided against it because I am anxious to pay off my credit cards before rates go higher.:)
Friday, December 11, 2009
Awesome Money-Saving Tip
I was out to lunch earlier this week with my friend Janine. One of the many things she shared as we were catching up was the fact that mortgage rates are really low! So she and her husband recently chose to refinance their mortgage. It motivated me to call my lender as a starting point to see what type of deals they had. I ended up beginning the refinancing process at 4.5% fixed, 14-year mortgage that consolidated our home equity loan too. And we will be able to save $150 per month in the process, which means we'll achieve Financial Freedom even sooner!
Kudos to Janine for sharing, and it's my pleasure to pass it along to continue to spread the wealth!
Kudos to Janine for sharing, and it's my pleasure to pass it along to continue to spread the wealth!
Monday, December 7, 2009
Second Milestone Complete!
It's a pleasure to announce the achievement of another milestone! I was able to pay off a second credit card! This was another one with a small balance, but with a 6-ish% interest rate I was scheduled to pay it off much later so I could focus on the 9.9% cards. At any rate, the credit card company raised the rate to 9.24% so I just decided to pay it all off.
I'll be heading out to lunch tomorrow with a friend to celebrate!
I'll be heading out to lunch tomorrow with a friend to celebrate!
Monday, November 23, 2009
First Milestone Complete!
They said in the 7 Steps class to start with a small win. So I built that into my plan. :)
I'm happy to say that I paid off my first credit card! Though it was one with a small balance, it qualifies as a "small win" and is a great first step in the right direction.
Celebrating successes is another part of my plan. A modest celebration will occur momentarily after I open a bottle of Matthew Fox Merlot ($3.29/bottle at Marc's!).
I'm happy to say that I paid off my first credit card! Though it was one with a small balance, it qualifies as a "small win" and is a great first step in the right direction.
Celebrating successes is another part of my plan. A modest celebration will occur momentarily after I open a bottle of Matthew Fox Merlot ($3.29/bottle at Marc's!).
Choosing Financial Freedom
In the Fall of 2009, I took a class at St. Ambrose called "7 Steps to Financial Freedom." We met for 7 weeks and "graduate" on December 3rd. As a result of the class, I got all my financial priorities in order and made a decision to be financially free by age 50 - including paying off the home mortgage!
My goals to make this decision a reality are listed below.
1. Pay off all credit cards by 8/1/2011.
2. Pay off all other debt and loans by 8/1/2016.
3. Build an emergency fund of $2000 by 6/1/2010.
4. Pay cash or use debit card for all purchases and financial transactions.
I was able to put a specific plan together to help ensure I meet the goals an milestones listed above. Now that I've set the goals and developed the plan, I decided to share this publicly to ensure accountability -- I want to be successful! And I realize that "peer pressure" can work wonders in helping to achieve personal goals....
Lastly, celebrating successes and achieving key milestones will be an important component. I'll share details on this as well. Any questions or support you have along the journey, please feel free to ask!
Here's to a future of being financially free!
My goals to make this decision a reality are listed below.
1. Pay off all credit cards by 8/1/2011.
2. Pay off all other debt and loans by 8/1/2016.
3. Build an emergency fund of $2000 by 6/1/2010.
4. Pay cash or use debit card for all purchases and financial transactions.
I was able to put a specific plan together to help ensure I meet the goals an milestones listed above. Now that I've set the goals and developed the plan, I decided to share this publicly to ensure accountability -- I want to be successful! And I realize that "peer pressure" can work wonders in helping to achieve personal goals....
Lastly, celebrating successes and achieving key milestones will be an important component. I'll share details on this as well. Any questions or support you have along the journey, please feel free to ask!
Here's to a future of being financially free!
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