Student Loans

July 6, 2007
In the “good debt/bad debt” argument it can be said that student loans fall in to the “good debt” category. Many like me had to rely on them to help pay for a higher education. When I graduated with my bachelor’s degree seven years ago my loan balance was $18,068 and now the balance is $10,813. I feel like I have made a dent in it.
My loans are consolidated at 6%, which at the time that I consolidated them was a good rate. A few years later the rate had dropped considerably but that is water under the bridge. For those of you that don’t know…you can only consolidate once. So in the event that interest rates drop even lower after you consolidated you are out of luck. That is one thing that nobody tells you.
Recently I came across the Upromise website and there is now a way to link a Upromise account to your student loans. Sallie Mae services my loans but I think there are other loan servicers that also participate. Anyway, I signed up for the program. I have accumulated a grand total of $1.18 in my account so far so I know that this is not going to help me significantly but, hey a buck is a buck right.
Many of the grocery items that earn rebates are geared to children but there are many that are not. I haven’t changed my pending habits to go out of my way to purchase items that would earn me rebates, I am just buying what I normally would. There are also ways to earn by dining out and also purchasing from online retail stores and gas stations.

Credit Cards

July 5, 2007
I got my first credit card when I was 24 years old and I have carried at least a $100 balance every month since then. I have used Quicken since 1994 and it shows that I have spent $4,215 on credit card interest since then. I don’t pay nearly as much interest now because my balance is on a Discover card at 0% for the life of the balance. I just have to use the card twice a month. I pay off my American Express card every month so I don’t incur any interest. By the way, the Amex is not included in my credit card balances or usage becuase I do pay it off every month.
Interestingly, if I had been able to save the credit card interest of about $351 per year over the past 13 years at 8%, I would have an additional $7,545 in my retirement funds today. Even more interesting is the power of compunding that $7,545 that I would have had today over the next 25 years at 8%. I would have had an astonishing $51,672 in my retirement funds when I went to retire. Yes, that credit card interest has been very expensive for me.

Paying for internet access

July 5, 2007
I currently pay about $50 per month before all the taxes for my broadband internet service. This is bundled with my Comcast cable TV service. I have been thinking that $50 is a lot for something I can get for “free” through my employer. I am fortunate to have been allowed to subscribe to a wireless aircard that is paid for by my generous employer. It works fine though it is not as fast as the cable internet. Ever since I installed the new wireless aircard I am not able to use my wireless modem so I am thinking that I should just dump the cable internet. That is $50 per month that I could save for my emergency fund.
I live in an area where many of my neighbors have wireless however, they have properly secured their wireless to keep intruders out so I cannot piggyback off of them even if I was so inclined. I am conflicted. I think I will have to sleep on this one a little longer to make up my mind. Also, I am slated to get a new computer later this month and maybe my home wireless will start working again. Another reason to delay my decision.

Happy 4th of July

July 4, 2007
It was a good day. I ran the Peachtree Road Race. The largest 10k race in the world with 55,000 runners. The entry fee was $28 and I spent $3.50 on the train fare but I think it was money well spent. I did get a nice stylish t-shirt for my $31.50. I didn’t have to spend any other money for the rest of the day. I definitely like that.

Since today is also known as Independence Day, I will say that my short term plans call for me to be independent of all credit card debt by July 4, 2008

Brown Bagging It

Many of my co-workers never bring their lunch to work. Our office provides a refrigerator and a microwave so there is not a practical reason not to. I try to bring my lunch at least 50% of the time. I figure that it cost me $5 - $6 everytime I don't bring lunch. That really adds up ($50 to $60 a month).
The reason I don't bring lunch every day is that I am new to this group and I want to be social and make friends. Today it cost me $5.44 to be friendly. I would rather be friendly around a table in the break room but that is not an option right now. When I bring my lunch it probably cost me less than $2.
Once I get more friendly with the group then I will start brown bagging it more often...until then it is just money out the window.

Spending

July 2, 2007

I am behind in the net worth department and realize I have a lot of catching up to do. My primary problem is my spending. My credit card debt is not out of control as it is only $6,687 at 0% for the life of the balance, but I do carry a Delta Skymiles Amex that I put most things on. I have always been able to pay the balance off every month but it is at the expense of my net worth. I do need to become more frugal.
There is some spending that must be done such as groceries but even my grocery habit needs to be curtailed. I am going to start making a list and sticking to it and also only spend $60 per week. I have been successful in doing that before and I should be able to so it again. Seriously, sometime when I have gone to the grocery store I have spent over $100 and have no idea what I spent it on.
There is a book called Why We Buy written by Paco Underhill that is great in describing the ways that retailers lure us in so that we can spend frivolously. It is a great read and I definitely recommend it.

Grocery shopping and coupons

July 1, 2007
Do you use coupons? I do if I have one and it is something that I will normally buy. Otherwise I try to avoid being sucked in by them. I have heard both the pros and cons of coupons and my thoughts are that they can really save you money but you have to use them wisely. If it is for a larger size than you need or a product that you might not normally use then they can cost you money.
The Sunday paper is a great place to find good grocery coupons. Sometimes companies will even have downloadable coupons on their websites. I plan to do some research on coupons and places to find good ones. I will post what I find out