The Bumpy Road Ahead

Starting a new blog.

2009-01-22T08:30:00.000-08:00

I'm starting over. New Year resolutions are the buzz. I originally wanted to start a blog to earn income. After rethinking my intentions I now want to write a blog to keep me on course. 2009 for me is the year to break the cycle. To break the pay check to paycheck slump I have been in for years. I am sick and tired of every minor financial issue turning into a crisis because my lack of spending control.

I know what I need to do. I am like the college professor that has a wealth of book knowledge but no practical experience. I know I need to analyze my spending, I know I need to create a budget, I know I need a emergency fund, and most importantly I know I am not doing any of this.

This really sunk in last night. My girlfriend and I work very different schedules. We only have a a few hours a week where we can spend quality time together. We only had about 4 hours this evening to be together. Here is what took place last night.

As I am walking in the door I receive a call from my mom. She is in a tizzy (and has every right to be) about being called on a collage loan I have that just came due, and is subsequently overdue. I was under the impression (Mistake) that I had deferred this loan, apparently not. So the next hour and a half was spent on the phone, on hold waiting for an account specialist. It appears I am in the same boat as many others, hence the expected wait of 45 minutes or more. Before I was able to get through the call center closed. OK, nothing else I can do tonight. On with the evening....... Nope.. not yet. I decided to check my bank balance before heading out to dinner, a habit I soon wish to break. I was 99.9% sure everything was fine, again, apparently not. My account was overdrawn. My Internet company posted a $200 (equipment fee) to my account.

Short version on how this happened.

-Company sent wrong parts
-I forgot to mail back (fully admitted to the company)
-Company called last week saying a $200 charge was going to occur if not sent back.
-I explained my current work schedule and that I would get them sent before the end of the week.
-Customer Service Rep said "OK, No problems, just get them sent this week and no charges will occur until next week.
- Apparently not

Another hour was wasted on the phone with little success. So now in a feeble attempt to limit overdraft charges I humbly ask my dad for a loan to cover the $200 and possible overdraft fees.

Another hour spent getting the loan and driving to the bank's 24hr ATM.

I am fortunate that my parents are so willing to assist me.

So now my girlfriend and I had about 30 minutes to eat before I had to get to bed. Needless to say no one was in the best of moods last night.

I am fully aware ALL of this could have been avoided if I simply had a modest emergency fund and a months buffer in my checking account.

This is going to change. I am going to use this blog as a open book with the hope of gathering others that are in the same boat, on the same river, and using the same paddles as myself.

I'm welcoming 2009 with open arms.

Face the Music

2008-12-12T07:34:00.001-08:00

Stage one. Face the music. I have been here many times. Often I am hovering over this step, looking down, knowing what needs to be done but never touching down and DOING IT.

I have been a faithful reader of Kevin's No Debt Plan. Kevin provides a no non-sense approach to personal and financial development. Step #1 of his no debt plan outlines what is needed to begin. As indicated this is my biggest hurdle. I have been here many times. I have even surpassed it a few times. But I always fall back for some reason or another. Today it stops. Below is a quick outline of my financial situation:

Monthly income/expenses

Net Income 2300
Net Expenses 2100
Left Over 200

Assets and Liabilities

Assets
Checking 70
Wamu Saving 10
ING 5

Liabilities Amt Monthly Min
Credit Card 1 3000 129
Credit Card 2 2000 30
Collection #1 700 300
Collection #2 200 40
Collection #3 200 50
Student Loans 9000 0

Additional background: This is a rough start. Over the next week I am going to really analyze where I am at including interest rates, payment terms, and my budget. Also both credit cards are closed and no longer in use.

I am very detail oriented. Often that tends to get in the way as I spend to much time finding the "best" and most detailed way to complete the task. I'm currently searching for a K.I.S.S. approach to starting the process. Suggestions???

My Situation

2008-12-11T14:08:00.000-08:00

I will briefly describe my overall situation.

Name: Withheld - Not sure how my family is going to feel about thi

Age: 29

Gender: Male

Martial Status: Divorced

Kids: A beautiful 2 year old daughter.

Financial Status: Broke, always. In debt, still. Seriously. I am going to publish a separate post outline my starting point.

Work: I work 4 part time obs that equal about 50 hrs a week. Currently my primary job is a Site Supervisor for a private contract security agency. I also work part time for a university doing security, part time for the U.S. Census, and part time tutoring at the local community college. I am returning to college next semester so likely I will reduce my hours at one or more positions.

Living Situation: Currently live with my girlfriend and a roommate. We rent a 3 bedroom house from my father who graciously allows us to pay a sub market price. The house could go for $1200 and we pay $700. Our utilities and amenities equal less than $300 per person. WHY AM I STILL BROKE???

Financial Plan: Don't have one. I have started off many times on a sure fire path just to end up with zero dollars in my account. I hope by writing it out each day I will be able to focus on my goal and at the same time help others do the same.

First Post, Sugjestions

2008-12-11T13:53:00.000-08:00

Well here we are. I have decided to start a blog about what I am learning regarding personal finance and at the same time hopefully provide useful information for my readers. A "personal Finance for the Real Dumb" A candid, and often PG-13 window to what I am trying to do with my personal finances and more importantly life. I look forward to comments, questions, critiques, and the occasional well worded insult.

We all know the basic principles of personal finance. Budget, emergency savings, no debt, yadda, yadda, yadda. So why if I know this am I in the hole, living paycheck to pay check, fending off the occasional collections call, an in general struggling? I don't know. But I am working on finding out. And I am going to share it.