Or so the saying goes.. 🙂 Since the year began, I’ve been hard at work with a new (to me) course for the Spring Semester. My job’s physically demanding and thankfully, I’ve been up to the task. I love all my bosses especially as I feel really appreciated. The students I’ve been working with also appreciate the work I put in to making the laboratory a comfortable place to be despite the circumstances. lol. Matt’s been acing his tests and exams. I couldn’t be prouder of him and how far we have grown as a unit. Not too long ago, I posted a status message on my Facebook page about how nothing beat taking a stroll in the woods with the one you love. That continues to hold true and I couldn’t be happier with my choice of a life partner. Alright, enough sappiness. 🙂
In personal finance management news, our heating bill saw a $20 spike in the month of December and we continued getting heating bills in the ~ 60s for a while until last month when it finally came down to $58. However, that didn’t give me much consolation because our energy usage per day was still higher i.e. ~ $2 per day. In any case, we’re doing pretty good considering I’ve sorta given up being so strict.
With news of the American economy tanking, Matt & I have continued our habits of keeping our credit card debt as low as we can i.e. 22% of our credit limit which is just enough to let the credit card company that we are actively using the card, but low enough for them to understand that we are not in trouble & maxing out the card. Our savings are not where I’d like them to be, but that’s to be expected when unexpected expenses arise. It didn’t make it easier when our federal and state tax refunds were less than half of what we received last year. Thankfully, we have a good grasp on our finances and it didn’t really matter whether we received a tax refund or not. As a matter of fact, I’d rather keep more of my paycheck and receive a smaller tax refund because I’ll be able to put the money to better use when I have ownership of the funds right away!
In retirement account news, my Fidelity 401(k) has been tanking. My rate of return for this year is ~ -14%. Thankfully, my employer’s match takes the sting out of seeing the funds drop because the way I see it, it’s not my money that’s disappearing although it kinda is. lol. Does my weird logic make sense? I haven’t even looked at Matt’s retirement accounts lately although his accounts should do well. That’s about it for now. A ‘thicker’ post to come!
Okay, breathe with me. Last month’s heating bill was ~ $44. This month’s heating bill = ~ $66. My jaw literally dropped and I instantly placed a call to my energy company to schedule a free high-bill re-check. Then, I called my husband and broke the news to him. lol. He claimed he wasn’t surprised, but I was honestly was. In retrospect, and if I’m brutally honest, the high heating bill was my fault. My usage of my small space heater was drastically increased (I’m talking about turning it on daily for ~ 12 hrs each day!). Being the argumentative wife I am, I argued with Matt that it must have been the 3 – 5 times we must have run the heater for the house or leaving lights on. In any case, this is a huge wake-up call for me. I cannot do things like run a space heater for 12 hrs daily and not expect my heating bill to bite me in the ass. *sigh*
In other news, if you have been living under a rock, the Federal Reserve slashed interest rates further and while this is goodÂ news for borrowers, people with money in savings account (i.e. us) are essentially seeing our savings rates slashed too. Right now, ING Direct’s Current Annual Percentage Yield is 2.75%. I’m not complaining though because it is still better than Wachovia’s saving rates. Now I’m on the topic of finances, I just have to say that we have done rather badly in terms of savings. This wasn’t because we went on a huge spending spree. We had strategic investments i.e. payments to make. For one, I finished making payments on my laptop and we also bought a used car from Matt’s friend (which was a steal). Nevertheless, I’m forging ahead and I clearly won’t make my saving amount of ~$5, 000 for the year (although that goal was set while at my previous job).
The Suntrust account is still 75% paid off and I’m disappointed that I didn’t do more to get this figure up. Nevertheless, my financial goals (going into the new year) will be:
- Keep making “payments” to our ING Direct savings accounts: Again, it bears repeating that everyone needs an emergency fund. Ideally, this should be 3 – 6 mths worth of money that will allow you to ride out the loss of 1 income source, a health issue, a car wreck, etc. We technically don’t even have an emergency fund yet because once I remove the cost of our current liabilities (just 1 credit card), we’re left with not much. These payments will occur monthly and the deposit will be at least $150 each time.
- Pay off Suntrust credit card before April 2009: This is a rather modest goal and definitely eases the pressure. We have enough room to keep making just the minimum payments, but I’ve been reading horror stories about people who saw their lines of credit cut in half & their credit scores plummeting. I definitely want to keep my score (~ 720 in all 3 credit bureaus) looking the way it is. 🙂
- Resume payments to Fidelity ROTH IRA: Since the purchase of my laptop and other big ticket items, I put my payments on hold. I haven’t actually begun investing the current funds in my ROTH IRA because it needs to be at $2,500 or above in order not to incur yearly (not sure if they are monthly) fees for making investments in mutual funds. The only way to get around those pesky fees is to commit to making automatic payments of $200 or more in order to invest in mutual funds.
- Consolidate my retirement accounts: Actually, this is already done because I’ve got my employer’s matches going into a Fidelity retirement account as well as my contributions. Fidelity’s also the holder of my ROTH IRA. The consolidation largely refers to the previous holder of my retirement account. It should be interesting how this all plays out on my taxes filings.
- Figure out investment options with Matt’s retirement account: His rate of return is currently -26% while mine is -1.8%. Now, my low rate of return is largely because Fidelity (for some reason) has about half of my stuff in a money market account. I’m sure when all that’s migrated to actual investments, I’ll see my rateÂ of return get lowers. Now, Matt’s retirement account is managed by Merrill Lynch and while they provide a more hands-on approach, their selection is a little bit limited (not to mention confusing!). I just want to put his funds into an investment “bucket” (so to speak) because they takes the headache out of managing his account. I adjusted his investments to spread the risk so I’m hoping that it will stem the bloodletting. lol.
Enough of the money talk. 🙂 I’m currently jamming to some Alicia Keys. Peace and I’m out!