Finance 101

 

Finance 101

I’ve talked a bit about my future plans including traveling and that part of that would require me to get my debts in line. For several months now I have been documenting where my money goes. It’s amazing how quickly you can blow $200 and not realize it because you spend it in small increments. Overall, I would give myself a solid B+ on my spending habits. I always make sure the bills are paid first, I have been putting money into savings, and I have been working towards paying down my credit cards.

Getting the Ball Rolling

On 6/6 I decided to run my credit report. You can get a copy free every year from the three major credit reporting agencies. I went through Trans Union to pull my report. I found several things that raised flags. They had a personal address for me listed on a road I have never lived on, a lien from the state of South Carolina that was listed twice, and two collection agencies reporting past due balances.  I submitted a request for a review on these items and within three business days I had results. The request was super simple, just click a few buttons and hit send.

The address was deleted from my report. One of the collection agencies was deleted and the other was marked as paid in full. It’s still on there, but at least it looks better. Both of the collection agency stuff was over two years old. They had just neglected to report it once it was paid off.

The liens are another story. In 2006 I worked just over the SC border in Rock Hill for a few months. The company took SC income tax out of my check per the law. I worked most of the year in NC. When it came time to file taxes I had to file for both states even though I only lived in one. My SC W2 was unclear and had all state taxes paid (NC &SC) listed but only the NC tax paid listed on my NC W2. So when I filed in SC I put down that they owed me the wrong amount and they paid me. Three years later they came back for their money and some hefty fines. I worked with their office and negotiated with them to drop the $700+ interest. I did have to pay a $400 fee which brought my total to $2150. I borrowed the money from my aunt and paid it in full.

While I was in the process of negotiating the interest, I received a phone call from another office in the same department stating that they had taken a lien out on my house. I told the guy I had been working with and he said not to worry about it, that they had not taken out the lien because I was working with him. A few years later I find out it is on my credit report not once, but twice.

Trans Union did delete one instance of the lien but the other remains. I will now have to get with SC department of revenue to get this resolved. I tried to email them but the email link on their website takes me to a page that is “not found”. I will have to call or make a trip to South Carolina. Joy.

 

 

The good news is that all of the things I removed should have raised my score some. Of course you have to pay for your score and I am not at a point where I need it just yet so I am waiting to go that route.

The Next Step

I did some research on loans from my current bank. IF I can get a loan in the amount of $16,500 at 8% interest, I would be able to pay off my car and three credit cards. I could pay the loan off in 36 months at $550/mo which is a little less than I am paying now. I would save about $5,600 in interest. All of this is assuming that I am able to get this loan. If I can though, not only would I save money, but I would be perfectly in line with my 3 year plan of having everything paid off.

Credit Cards

I keep getting offers from Capital One, who I have one of my current cards with, about being pre-approved for a cash back card. I have been just trashing these offers for about a year now. My research on finances recently, however, has led me to believe that maybe I have been too hasty. One of the cards they keep offering me has about the same interest as my current card with no annual fee. I read that you should get reward cards and then use them instead of your bank account to pay for everything. Then you use your bank account to pay the card off in full every month. You reap the rewards without any of the penalties like interest. My credit is not good enough for a mileage card yet but when it is, you better believe I will be taking full advantage of that!

 

 

It is absolutely amazing what you can learn by reading a few blog posts. Of course I followed up with my own research and now I am heading towards financial freedom. No bankruptcy, no credit counselors, just smart decisions to fix past issues and to help me with my future investments.

 

(Not) Aging Gracefully

(Not) Aging Gracefully
 

When you are a kid, birthdays are super exciting. You spend a whole year counting down to that one glorious day where you are king or queen. Birthdays weren’t huge ordeals in my house. I remember having a few parties but being a single mother of 2, my mom could not afford to treat us to such things. Usually we got a cake, a present, and our favorite meal. I’m a simple girl and that was fine by me. My favorite food and a cake? I was living large!

 

Time hasn’t changed many of the customs in my home, just the people. Now my daughter is the one making the cake and the food is usually bought by me at a restaurant of my choosing. Often times my coworkers would do a little something for me which would include a cake and card and singing if I was lucky (or unlucky depending on who was doing the singing).

 

December 10, 2013 marked my 37thbirthday and with it came unexpected feelings. For the first time in my life I realized I was getting older and no closer to finding the love of my life. I have gained a lot of weight in my adult life, looks have begun fading, and my typical cheery attitude towards life is not so cheery anymore. I have less and less to offer as time goes by and fewer prospects to chose from. The thought of growing old all alone is a scary one. Some people have the audacity to say “just be patient”. I’ve spent almost half of my life looking for Mr. Right. At what point is it acceptable to no longer be patient? At what point do you say “screw it” and quit thinking about how nice it would be to be with someone and start thinking about all the things you can do solo? I think I am close to that point now and I am trying to plan things out based on me being alone. I hope that I will not always have to be alone, but I am going to try and make the most of it.

Cruisin

244 days until we set sail.

Two years ago Keirsten and I took our first "real" vacation. I mean, we didn't just go crash at a family member's house. We took a weekend trip to Atlanta and stayed at an awesome little hotel that was old, had mismatched furniture and cool architectural details. It was in a happening neighborhood that had artsy shops,  a bakery, an art gallery, the kind of theatre you would see Rocky Horror at, and some local owned restaurants.  We went to the Georgia Aquarium and did some sight seeing. It was great but pretty expensive being that it was only a weekend trip.

Last year we split a week between Savannah and Charleston.  We went parasailing,  on a dolphin tour (which featured a National Geographic moment), went on a horse drawn history tour, toured the battleship, ghost tour, ate at Paula Dean's restaurant, toured a botanical garden, toured both towns independently,  shopped and ate at local restaurants. We had a great time and learned a bit of history too.

We decided for our next vacation that we wanted to go on a cruise. Not a cheap vacation so we are going to save up through all of 2014. To date I have already paid for the cruise. Now I have to get passports,  buy excursions, and save up spending money. We are going on a 5 night Caribbean Cruise to Nassau and Freeport in the Bahamas. We don't depart until February 2, 2015 but I am already getting excited. 

244 days until we set sail!!!

The Travel Bug

The travel bug has finally got me. If the world is our playground,  why hang out on the merry-go-round all the time?

Here are the facts: I am 37, single, mother of an almost 21 year old, make $40k+ a year, own my home, about $6k in debt not including my car and home.

My plans: pay off debt, travel, and eventually move far, far away.

The debt is an ongoing process.  My ailing cat has cost me nearly $2k in the last couple of months (yes, he is worth it!). I try to pay over my minimum amount every month. And if extra money comes in, that's what is goes towards. Today I got a check from Duke Power for $230. I immediately deposited it then went online and paid $230 on a credit card.

Travel is something I have to plan and save for. There is not a lot of extra money laying around. I put myself on a budget and in just a few months I saved over $700. I could tighten my belt a little more but I don't want to make myself miserable now just to be able to do something later.

I have been reading Nomadic Matt's blog and it has been eye opeing. It has taught me so much about travel that I never would have thought of. Between the benefits of sky miles to sleeping arrangements to food to money, it has been educational. I find myself on his blog nearly every day and will probably buy his book.

I am hoping that once I travel a bit and see more of the world than just my merry-go-round,  I will find an amazing place that speaks to me and I can settle down.  Time will tell!