Rob and I are living on a budget. Basically, we look at our income every month (which varies slightly depending on how many hours I am working at my part-time jobs), and we designate a place for each dollar. Then, we take the left-over money and . . . TRAVEL THE WORLD! Ha, I wish. Wouldn't that be the life?
No, we take the extra money (which ends up being about a half of our monthly salary) and we put it directly into paying off student loans. Pretty exciting, huh? It seems very adult-like and boring. But you know what? I don't find it boring at all. I find it liberating. Each month that we sacrifice some luxuries to pay off more student debt, we are getting that much closer to financial freedom in the future.
What does financial freedom look like to us?
It looks like saving up to 15% of our income for retirement.
It looks like me working one full-time job and loving it!
It looks like us not having to limit our grocery spending to $50 a week.
It looks like us not sweating bullets every time an unexpected bill pops up.
It looks like us living in a 2 bedroom apartment or even (gasp) a house.
It looks like us opening our home and cooking for people more regularly.
It looks like us not thinking twice about going on that week-end get-away.
It looks likes us being able to give above and beyond our tithe to causes that we feel passionate about.
It looks. . . pretty amazing! And it's within our reach.
How are you working toward financial freedom? Or, if you're on the other side of freedom, what was your experience?
Showing posts with label finances. Show all posts
Showing posts with label finances. Show all posts
Friday, July 03, 2015
Wednesday, July 01, 2015
How We Save Money Each Month
This post is directly related to my last post about being under-employed and under-paid. As a result of the limited funds, we have learned how to cut corners where we can. We are by no means experts at this, and there are still areas where we need to trim down, but for the most part, I think we are doing okay: I give us a B+.
1. No movies in the theaters. Let's be honest-- theater prices are insane! A couple could easily spend over $30 for 2-3 hours of entertainment. Compare this to the price of $9 a month for unlimited movies and TV shows on Netflix or a $2 new release from the nearest Redbox. When it comes to date nights at the theater, we use them sparingly. We have gone to the theater maybe 2 times in our nearly 2 years of marriage, and we are okay with it!
2. Cutting costs on special occasion cards. I love looking at the cards at Target; they are so shiny and witty. However, they are way over-priced for a piece of card-stock. When it comes to getting cards, I get them either at the dollar store where they sell slightly older cards 2 / $1, or I buy a package of generic cards and personalize the message myself.
3. No fancy meats or cheeses. When it comes to buying groceries, I buy two types of protein: chicken and hot-dogs (and brats on special occasions.) Even though we both enjoy red meat, we know it is probably not the healthiest for us, and it hurts our wallets. As for cheeses, we buy Target brand Mozarella, Cheddar, and Parmesan (in a bag.) Fancy cheeses (though delicious) send our food budget over the edge. Let the upper class eat their red meats and fine gourmet cheeses. We'll stick to our steroid-pumped chicken and market pantry cheeses.
4. Saying "no" to Birthday dinners out. I know that we are going to sound incredibly stiff-necked on this one, but we have discovered that anytime our friends celebrate their birthday's by going out to some place swanky, we leave pinching our empty pocket books. We love our friends, and we love celebrating them, but going out to eat pricy restaurants that we would never chose on our own because of the over-priced "delicacies" has left us feeling bitter on more than one occasion.
5. Buying clothes at Goodwill. I am a huge fan of Goodwill. Just today, I went shopping for their 4th of july sale where all clothing items were %50 off, and I found some adorable shirts for $2.50 each. You can not beat these prices (even at Target), and I love that you get a nice variety of styles at Goodwill. Oh yeah, I also bought some adorable winter boots for $2.50. Hey, just because we're broke, doesn't mean I have to look like the queen of frump.
These are the areas where we have learned to cut back. We have some more goals in this department that include dumping our internet and cable bill and building up an emergency fund. But for now, we have figured out how to cut back and even have some fun while doing so.
What do you think of these money saving tips? How do you save money each month? We need all the tips we can get!
1. No movies in the theaters. Let's be honest-- theater prices are insane! A couple could easily spend over $30 for 2-3 hours of entertainment. Compare this to the price of $9 a month for unlimited movies and TV shows on Netflix or a $2 new release from the nearest Redbox. When it comes to date nights at the theater, we use them sparingly. We have gone to the theater maybe 2 times in our nearly 2 years of marriage, and we are okay with it!
2. Cutting costs on special occasion cards. I love looking at the cards at Target; they are so shiny and witty. However, they are way over-priced for a piece of card-stock. When it comes to getting cards, I get them either at the dollar store where they sell slightly older cards 2 / $1, or I buy a package of generic cards and personalize the message myself.
3. No fancy meats or cheeses. When it comes to buying groceries, I buy two types of protein: chicken and hot-dogs (and brats on special occasions.) Even though we both enjoy red meat, we know it is probably not the healthiest for us, and it hurts our wallets. As for cheeses, we buy Target brand Mozarella, Cheddar, and Parmesan (in a bag.) Fancy cheeses (though delicious) send our food budget over the edge. Let the upper class eat their red meats and fine gourmet cheeses. We'll stick to our steroid-pumped chicken and market pantry cheeses.
4. Saying "no" to Birthday dinners out. I know that we are going to sound incredibly stiff-necked on this one, but we have discovered that anytime our friends celebrate their birthday's by going out to some place swanky, we leave pinching our empty pocket books. We love our friends, and we love celebrating them, but going out to eat pricy restaurants that we would never chose on our own because of the over-priced "delicacies" has left us feeling bitter on more than one occasion.
5. Buying clothes at Goodwill. I am a huge fan of Goodwill. Just today, I went shopping for their 4th of july sale where all clothing items were %50 off, and I found some adorable shirts for $2.50 each. You can not beat these prices (even at Target), and I love that you get a nice variety of styles at Goodwill. Oh yeah, I also bought some adorable winter boots for $2.50. Hey, just because we're broke, doesn't mean I have to look like the queen of frump.
These are the areas where we have learned to cut back. We have some more goals in this department that include dumping our internet and cable bill and building up an emergency fund. But for now, we have figured out how to cut back and even have some fun while doing so.
What do you think of these money saving tips? How do you save money each month? We need all the tips we can get!
Wednesday, June 24, 2015
Why I Have 3 Jobs
My friends and family know that I am incredibly task-driven and often bite off more than I can chew. This has never been more true in my life than right now.
In August of 2013, I took a job at a small private charter school working as a kindergarten paraprofessional. The job offer was timely and I needed the security of benefits and employment before Rob and said our "I do's" a few weeks later.
I have been at this full-time job for 2 years now and have learned a ton. I have also discovered that although I can work with younger students, it's not where my natural talents or passions find their home. I miss working with the slightly older, more independent students. Younger students have a lot of needs that they need to tell you about. Each minute of each day was filled with students' needs. After two years of this, I am pretty exhausted.
Furthermore, while the benefits were good, the pay was pretty low--$20,000 a year to be exact. I know that most people with a masters degree would never dream of taking a job for this salary. In fact, I could have this exact same job with only 2 years of post-secondary education; I have 7. So it's been a pretty humbling and tiring two years.
As a result, I have sought out opportunities that are more directly related to my career and can also help supplement my income. For awhile, I was trying to get into the admissions department at a university. To work toward this goal (and also compensate for my dismal salary), I started working in our apartment complex as a leasing agent every other week-end. This job involves a lot of customer service and administrative skills. I was hoping that this experience would make me more marketable for admissions' jobs. Per hour at this office job, I make about what I made working at Caribou Coffee.
To help me get my fill of teaching and continue working toward my goal of teaching post-secondary students, I took an online teaching job with a non-profit company. When I started with this company, I was their first employee. I had hopes of helping develop the curriculum and teaching standards for this company. That dream was quickly shot down by another founder of the company who did not want to include curriculum in our teaching. I have been teaching now with this company for about 1 year, and I realize that it is a lot of work without really providing any promise of being more than what it is-- passive income for my employers while I am busting my butt every week for an addition $200-$300 a month.
I feel that my friends are often frustrated that I am constantly so busy with my multiple jobs. I understand their frustration, but I also know that they all make incomes that support them. It is easy to judge people and make assumptions; it's much more difficult to try and understand why people might be making the choices they are. Working three jobs, at about 50 hours a week, I am making about $25,000 a year before taxes. I am frustrated. I am tired. I am seeking opportunities to work smarter, not harder, but I am coming up with nothing.
And I know that even though I often feel alone in this frustration, I am not alone. I know that many people are in the same situation: underemployed with talents and gifts that lay dormant. What is your career story?
In August of 2013, I took a job at a small private charter school working as a kindergarten paraprofessional. The job offer was timely and I needed the security of benefits and employment before Rob and said our "I do's" a few weeks later.
I have been at this full-time job for 2 years now and have learned a ton. I have also discovered that although I can work with younger students, it's not where my natural talents or passions find their home. I miss working with the slightly older, more independent students. Younger students have a lot of needs that they need to tell you about. Each minute of each day was filled with students' needs. After two years of this, I am pretty exhausted.
Furthermore, while the benefits were good, the pay was pretty low--$20,000 a year to be exact. I know that most people with a masters degree would never dream of taking a job for this salary. In fact, I could have this exact same job with only 2 years of post-secondary education; I have 7. So it's been a pretty humbling and tiring two years.
As a result, I have sought out opportunities that are more directly related to my career and can also help supplement my income. For awhile, I was trying to get into the admissions department at a university. To work toward this goal (and also compensate for my dismal salary), I started working in our apartment complex as a leasing agent every other week-end. This job involves a lot of customer service and administrative skills. I was hoping that this experience would make me more marketable for admissions' jobs. Per hour at this office job, I make about what I made working at Caribou Coffee.
To help me get my fill of teaching and continue working toward my goal of teaching post-secondary students, I took an online teaching job with a non-profit company. When I started with this company, I was their first employee. I had hopes of helping develop the curriculum and teaching standards for this company. That dream was quickly shot down by another founder of the company who did not want to include curriculum in our teaching. I have been teaching now with this company for about 1 year, and I realize that it is a lot of work without really providing any promise of being more than what it is-- passive income for my employers while I am busting my butt every week for an addition $200-$300 a month.
I feel that my friends are often frustrated that I am constantly so busy with my multiple jobs. I understand their frustration, but I also know that they all make incomes that support them. It is easy to judge people and make assumptions; it's much more difficult to try and understand why people might be making the choices they are. Working three jobs, at about 50 hours a week, I am making about $25,000 a year before taxes. I am frustrated. I am tired. I am seeking opportunities to work smarter, not harder, but I am coming up with nothing.
And I know that even though I often feel alone in this frustration, I am not alone. I know that many people are in the same situation: underemployed with talents and gifts that lay dormant. What is your career story?
Thursday, January 08, 2015
More Conversations with Dave Ramsey
The other day our financial planner called us to see how we were doing. I should clarify-- we met with the financial planner one time and then realized we had an enormous amount of debt we had to tackle before we considered investing. So we had been indirect with her until this point, and she had continued to call us for the past year and a half.
I finally broke it down for her: "We are following Dave Ramsey's baby steps until we are out of debt."
"Well in that case, it may just not be a good fit for us to work together at this point" (did I sense frustration in her voice?) She went on:"I just want to make sure you're not overpaying on your loan payments."
"You have no idea" I thought to myself.
I then explained that no where could we be saving at an interest rate that was comparable to our 6 to 7% interest rate on our loans.
"No, but you can be investing at a rate much higher than that. See, there is a difference between finite and infinite interest which a lot of people aren't educated about." She went on to say that most student loans have a finite amount of interest, but most investments have an infinite amount of return. I tried to wrap my head around it, but the conversation was brief, and I think she sensed we were a lost cause.
After getting off the phone with her, I started second-guessing our plan. "Is it wise to be overpaying on our loans?" I asked Rob.
"Portia, she was just trying to get into your head so you would start to doubt your plan and follow her plan instead."
Yes, that's likely true--it is her job to find and retain clients after all. But ever since talking with her, I have been trying to look up everything I can find on finite and infinite interest and have found nothing. So how can I be "educated" on this topic Dave Ramsey? Is it even a thing? Or is it code for financial advisors trying to sell you something you don't understand?
I finally broke it down for her: "We are following Dave Ramsey's baby steps until we are out of debt."
"Well in that case, it may just not be a good fit for us to work together at this point" (did I sense frustration in her voice?) She went on:"I just want to make sure you're not overpaying on your loan payments."
"You have no idea" I thought to myself.
I then explained that no where could we be saving at an interest rate that was comparable to our 6 to 7% interest rate on our loans.
"No, but you can be investing at a rate much higher than that. See, there is a difference between finite and infinite interest which a lot of people aren't educated about." She went on to say that most student loans have a finite amount of interest, but most investments have an infinite amount of return. I tried to wrap my head around it, but the conversation was brief, and I think she sensed we were a lost cause.
After getting off the phone with her, I started second-guessing our plan. "Is it wise to be overpaying on our loans?" I asked Rob.
"Portia, she was just trying to get into your head so you would start to doubt your plan and follow her plan instead."
Yes, that's likely true--it is her job to find and retain clients after all. But ever since talking with her, I have been trying to look up everything I can find on finite and infinite interest and have found nothing. So how can I be "educated" on this topic Dave Ramsey? Is it even a thing? Or is it code for financial advisors trying to sell you something you don't understand?
Tuesday, December 23, 2014
Conversations I'd Like to Have with Dave Ramsey
Rob and I were first introduced to Dave Ramsey by some of our friends who gave us his book, Total Money Makeover as a wedding present. Our first mistake was that we did not read this book before we were married. Our second mistake was that we read his book after we had financed a (newish) car.
But, we were still able to get back on track after these two set-backs. We have our monthly meetings, and we budget out everything for the month. In the process of managing our money, I have become somewhat of a Dave Ramseyfan fanatic. I regularly listen to his radio show; I receive his email updates, and I often ask myself "What would Dave do?" when trying to make financial decisions. However, I do have some things I would like to discuss with him. I tried to use the online "submit a question" form, but I never heard back. So in hopes that some of my readers may have some ideas, I thought I would post the conversation topics that I would often like to discuss with Dave Ramsey here:
Question 1: I have a Masters degree in Literature, but I have been unable to get any full-time job related to my degree. (Dear Reader, please DO NOT get a Masters in Literature.) Do you recommend I go back to school and get a more useful degree or should I continue to look within my area of education.
Question 2: I know that in baby step 2, (you can read all of Dave Ramsey's steps to financial freedom here or hear him explain it himself in the video below) Dave suggests you pay off all debt, minus your mortgage, using the debt snowball. According to Ramsey, the debt snowball is where you make minimum payments on all debts, and then put all your extra monthly income toward the smallest debt. Once you have the smallest debt paid off, you continue to use this method until you have paid off all your debts. However, the debt snowball assumes that you own a house. If you do not own a house, Dave recommends saving for a down payment after you have completed step 3 which is having "3 to 6 months Expenses in Saving." However, I think this is way too conservative. Yes-- buying a house is a big financial commitment. But at this point in the economy, so is living in a 2 bedroom apartment. Surely there can be a happy compromise here Dave. Every month for a 2 bedroom apartment in our city, we would spend in excess of $1000. That would be $12,000 a year that could be going toward a mortgage.
Question 3: This question relates to question 2. The other day on the radio show, a couple called in for their debt free scream. In other words, they had paid off all their debt, including their house & student loan debt, in four years. This couple was only 27, and they had been following Dave's steps for about 4 years. Dave congratulated them profusely and rightly so, but he didn't say anything to the fact that they owned a house while they still had student loan debt. This begs the question--isn't it possible to pay off student loan debt while owning / buying a house?
Question 4: I really admire how Dave Ramsey has helped millions of people get their finances together. But sometimes when I am listening I feel like I have done something wrong with my life, with my finances. When I was 20 something, I wasn't really saving for the future; I was doing non-profit work in China. Does this make me irresponsible or careless with my money? I don't think so. I was frugal and paid attention to my finances; I lived and traveled within my means. However, I certainly did not get ahead financially. Some of my friends who have also returned to China are in similar situations as me. I would love for Dave to give some perspective & advice to this group of people: what can we do now that we have some career and financial gaps in our lives?
From one of your biggest fans,
Portia
But, we were still able to get back on track after these two set-backs. We have our monthly meetings, and we budget out everything for the month. In the process of managing our money, I have become somewhat of a Dave Ramsey
Question 1: I have a Masters degree in Literature, but I have been unable to get any full-time job related to my degree. (Dear Reader, please DO NOT get a Masters in Literature.) Do you recommend I go back to school and get a more useful degree or should I continue to look within my area of education.
Question 2: I know that in baby step 2, (you can read all of Dave Ramsey's steps to financial freedom here or hear him explain it himself in the video below) Dave suggests you pay off all debt, minus your mortgage, using the debt snowball. According to Ramsey, the debt snowball is where you make minimum payments on all debts, and then put all your extra monthly income toward the smallest debt. Once you have the smallest debt paid off, you continue to use this method until you have paid off all your debts. However, the debt snowball assumes that you own a house. If you do not own a house, Dave recommends saving for a down payment after you have completed step 3 which is having "3 to 6 months Expenses in Saving." However, I think this is way too conservative. Yes-- buying a house is a big financial commitment. But at this point in the economy, so is living in a 2 bedroom apartment. Surely there can be a happy compromise here Dave. Every month for a 2 bedroom apartment in our city, we would spend in excess of $1000. That would be $12,000 a year that could be going toward a mortgage.
Question 3: This question relates to question 2. The other day on the radio show, a couple called in for their debt free scream. In other words, they had paid off all their debt, including their house & student loan debt, in four years. This couple was only 27, and they had been following Dave's steps for about 4 years. Dave congratulated them profusely and rightly so, but he didn't say anything to the fact that they owned a house while they still had student loan debt. This begs the question--isn't it possible to pay off student loan debt while owning / buying a house?
Question 4: I really admire how Dave Ramsey has helped millions of people get their finances together. But sometimes when I am listening I feel like I have done something wrong with my life, with my finances. When I was 20 something, I wasn't really saving for the future; I was doing non-profit work in China. Does this make me irresponsible or careless with my money? I don't think so. I was frugal and paid attention to my finances; I lived and traveled within my means. However, I certainly did not get ahead financially. Some of my friends who have also returned to China are in similar situations as me. I would love for Dave to give some perspective & advice to this group of people: what can we do now that we have some career and financial gaps in our lives?
From one of your biggest fans,
Portia
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