My Money Mindset

 

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Totally unrelated to the subject of this blog entry.  Cochiti “Lake” (really more of a reservoir) but just exemplifies the vast open spaces and views of the southwest. 

I love a particular podcast called Budgets and Cents.  One of their recent episodes talked about their money mindsets, and it was interesting to hear how their mindsets had reversed over the past year.

 

One mindset that a lot of us have is one of scarcity. It’s one that I have fallen victim to off and on in my life.  Recently, I found myself going down that road, and I didn’t like it.  I didn’t like it at all.  I’m one of those individuals who feel that whatever energy you put out into the universe will affect the situations and individuals who come into your life.  So I knew I needed to make a change. I really think you can change your life or your circumstances if you put your mind to it.

When I was first separated from my marriage, there was a day that it became very clear to me that my outlook on life was hugely important to my everyday life.  I could choose to be sad and miserable and hate myself every day or I could choose to wake up in the morning and say to myself, “Today is going to be better than yesterday.  Even if it’s just one small thing, that counts.”

So, when I found myself feeling very stressed about my financials recently, I decided to take a deep breath.  Then I started to ask myself what I could do to change that.  I thought of the transcription work I’ve already done over the past several months and started to look into other companies that are hiring, to supplement the income I make from my first priority company.  (It’s also run by a friend, so I can’t and won’t let her down.)

I also looked into Flexjobs, and just signed up today for a membership.  It costs $49.95 for the year, but they also offer promo codes, so I got 30% off of my first-year membership with them.  I like that the jobs and employers are vetted by real, live humans and not a computer!  At the very least, I will know that the jobs I am applying to are real and not scams.  The way I look at it, paying $3-4/month in order to have the opportunity to obtain flexible side-hustle work is a very low fee to pay. Even if I only get one job off of there, I think it will pay for itself. That’s my attitude and I’m sticking to it!

As soon as I changed my attitude, I heard good news from my friend who asks me to do transcription jobs.  It looks like there will be a good amount of work coming my way, very soon, and I can’t wait.  I like being needed and knowing that my efforts are helping someone else out.  Plus, the work is generally pretty interesting.

And finally, a friend of mine has had a delivery route with the Albuquerque Journal for several years.  I’m going to ride along on a route tomorrow and see what I think, if I can handle it.  It would involve getting up early every morning (usually papers have to be delivered by 6 a.m. during the week), but Hello! That’s something I already do, get up early! At least this way, I could get paid for it. I would be paid as a 1099 contractor, so I know I would need to hold money  back for taxes.  But it would still allow me to pay off my debts very quickly and then start putting money aside for things like travel, etc.

A good friend of mine was concerned I was losing sight of my goals by entertaining this idea.  But I’m not.  Rather, it will help me stay on board with those goals.  My day job really just covers the day to day expenses.  If I want to get ahead, I have to sacrifice in some places, and in this case, the sacrifice will be in time. But it will be worth it.  I will pay off my credit cards, then pay off my vet bill at my employer, and then pay off my car.  I really want the car paid off before I reach 100K miles.  And the best part about it?  I will be able to do that work and be productive before most people even get up in the morning and have their first cup of coffee.  And you know what?  A lot of people are in the same boat as me, having to work more than one job.  I know some of you readers have done this before.

One thing my mom taught me is a good work ethic. She taught me to do whatever you need to do to get things done and take care of yourself.  And that’s what I am going to do. By the way, if you like to listen to podcasts like I do, there is a good one called His and Her Money.  They had a recent episode called 3 Words That Will Help You Get Out of Debt Faster.   And those words are Whatever. It. Takes.

Now, if you’ll excuse me, I have to go take a few skills tests for Flexjobs to add to my skills already listed on my resume. 🙂  And snuggle with a few furry ones, because, as you know, they are the reason for the changes in my life I’ve undertaken over the past few years. ❤

As always, thank you for reading.

 

 

My Debt….Journey out of Hell

I know there’s a saying that says if you find yourself in hell, just keep walking, because eventually you will get yourself out of it. The other day, I did something scary, but necessary. Except for my federal loans, I added up all of my debt. (The federal loans are just too overwhelming to grasp.) And here’s what the picture looks like (avert your eyes if you don’t want to be scared, or is it scarred, for life?!)

Tower Garden: $407.70
Capital One credit card: $2,651.65
Citibank credit card: $3,929.69
Auto Loan (through a credit union): $6,005.16
AES Loan (private student loan): $10,567.09

Grand Total (again, avert your eyes if you need to): $23,561.29

My gross income is just barely above that. As Dave Ramsey would say, I don’t have a debt problem, but an income problem. So I plan on trying to find a second job if I can. Or, finding a way to make money online. Some of you have given me good ideas in the past.

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Rio Grande River, as seen from the Tingley Beach open space area

I’ve also listened a lot to a podcast called Budgets and Cents. The “Budgets” part of the podcast is Cait Flanders, and she went on a shopping ban for one year. After the first year, she decided to continue it for a second year. During that time, she only bought essentials like food.She had a pair of jeans that ripped and she eventually had to replace them. When her one hoodie just got completely gross, she got another one, but only after months of looking for the perfect hoodie. It might seem a bit extreme, but it did help her to really appreciate the stuff she did have. I know it will help me too, even as I continue to get rid of stuff I have accumulated over the past year, but realize I really don’t need. Every dollar I save by not shopping for stuff, will go to the debt.

So, I’ve decided to do something similar. I’m not going to shop for things I don’t need. Just groceries for myself and for the furry ones, pretty much. And I am going to start checking out all the free things to do in Albuquerque. There are actually quite a few free museums that I can take a look at, ranging from the atomic bomb to meteorites! After all, part of the reason I moved to a city was to take advantage of amenities a city has, that a smaller town does not. I’ve already been checking out a lot of the free open public spaces and am really enjoying checking them all out with Morgan. We both get the fresh air and exercise we need.  So, occasionally, I may pay to go into a museum or some place like the Botanical Garden that does have an entrance fee. But I will space those out accordingly. I know if I don’t treat myself occasionally, this won’t work. I just have to remember, it’s ok to treat yourself, but in moderation.

I am going to keep my gym membership to Planet Fitness. It’s only $21/month and working out is once again, very important to me.  It all works together.  It’s helping my morale improve, and I am liking the way I look in the mirror, more.  Same thing with my running sneakers – if they wear out, I’m going to replace them. One thing I do know that it is worth spending money on is good sneakers if you want to run. Since my health insurance at my new job (once it kicks in, in January) has a high deductible, I need to focus on eating well, and staying healthy. Luckily, those are two things I already realize the importance of.

So, you will notice that up above, the debts are arranged in order from smallest to largest. I plan on paying off the tower garden first. I plan on taking a couple hundred out of savings, and then paying the rest out of my paychecks. (I’m not using it in this apartment since I heard that roaches like water, and well, it’s a hydroponic system. So I may try to sell it online.)  Then, the money I was paying to that every month (about $81) will go toward the Capital One card. I’ve found that gas here is cheaper than it was in Lake Powell (it was a tourist destination, so no surprise there), so whatever I budget for but don’t use per month, is going to go the debt payoff. I get paid $10 every month from  my credit union for having my checking account with them, having money directly deposited, and using my debit card a certain number of times. So, guess where that is going?!

I am paid way ahead (about 5 years) on that AES student loan, so I plan on making smaller than the full payments every month of $167.  It accrues about $27 in interest every month, so I plan on paying more than $27, but also paying it every two weeks, when I get paid. You see, student loans are different than other types of loans. The interest accrues daily. So while it may not seem like a lot, every little bit can help. It’s kind of like paying off your mortgage twice a month instead of just once a month. It shortens the loan time.  (I just paid $20 on it this morning.) The money that I am not paying toward the AES loan will go toward the Capital One card. That should help  a lot since the Capital One card has a higher interest rate.

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one of the few moments in which I could get Morgan to sit still on  our walk at Tingley Beach

The Citibank card is currently on a 0% interest rate, and I need to check to see when it ends. It was 21 months when I signed up, so I think I have another year or so. If that time comes up, and it’s not paid off (the likely scenario), then I will transfer it to another credit card which is giving 0% interest for a certain number of months. Then I will snowball what I had been paying on the Capital One card into the minimum payment on the Citibank card, and then on to the car, and then on to the AES loan at the end. The car loan has a low interest rate so a lot of my $142 monthly payment goes to paying off principal.

So yes, this is the snowball method. It’s different from picking the debt with the highest interest rate, but it does provide you with more “wins” and let’s face it, handling money is an emotional thing. If it wasn’t, we would all be millionaires, right?!

I’ve updated my direct deposit with my work – luckily, they allow you to put your paycheck into 5 different accounts! So from every paycheck, I will be saving for the annual or semi-annual bills that come up, like renter’s insurance, car insurance, etc. That way, when the bill comes due, the money is there. And I am also continuing to save to go to my brother’s wedding in Florida in May.

I watched this video earlier today via the His and Her Money youtube channel, and I was definitely inspired. This girl started out making $15K per year and she owed $25K on her student loans. She paid it off in about 3.5 years. I don’t know that she had some of the expenses I have, but if she can do  it, then I have no excuse to not even try on my end.

I will talk about the budget I have planned in a later post because this one has already gotten way too long!  But I wanted to get this post out there so that the few of you who read this blog regularly can be my accountability partners. I need people to know what is going on. (And thanks to those of you who do read it regularly, even though my posts have been somewhat sporadic lately.)

Finally, I will leave you with a picture of Baby O doing what she does best: sleeping. 🙂 Well, she snuggles pretty well too. LOL (She and Max are both snuggling up to me as I type away. There could be worse things in life than having two animals trying to love you at the same time.)

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my adorable baby girl, Baby O

As always, thanks for reading and please feel free to leave a comment or suggestion below.