Money: Managed–an account of eliminating debt, saving cash, & everything in between

I’ve been super busy, but that hasn’t slowed me down with financial progress!

• Picking up more freelance work (building and soon launching shaunanicholson.com)
• Wrote a check for 1k to my credit card company
• Eating a lot of left-overs and with family members
• Discussing/debating long-term education plans
• Borrowing DVDs from friends (rather than renting)
• When I drive, I’m in neutral often (manual transmission). I’ve found this puts me at ~33mpg. Not bad for a 2001 Civic. It’s funny, though… The other day a women a few cars behind me was waving at me to signal my brake lights were out; nope, just in neutral–thanks!

I was tagged by HowISaveMoney for this six word memoir.

Incessant ambition, debt-hatred, moving forward

Here are the rules:

1. Write your own six word memoir
2. Post it on your blog and include a visual illustration if you want
3. Link to the person who tagged you in your post
4. Tag at least 5 more blogs
5. Leave a comment on the tagged blogs with an invitation to play

Tagging:
B
Victoria
Scobleizer
The Bill Manager
Homemade Gift Basket

Since card #2 is now paid off, I decided to call and cancel the account. One credit card really is enough, and I’m focusing on knocking out that balance ASAP. B and I had just finished dinner and were sitting at the dining room table. He was reading through some homework. Cooper laid at our feet, snoring. I was feeling excited. Powerful. Responsible.

Card in hand, I dial the 800 number and go through the prompts.
I tell the customer service representative of my intentions.
“Is there a reason you’re closing your account with us?”
“Not really, I guess. I just don’t need it anymore,” and I’m transferred. B looks up and I realize: I’ve been shipped over to retentions. “I hope they don’t try a hundred things to get me to stay.” B smiles, “Well, just ignore them and stick to your goal.” I smile. Cooper has time to wake up and grab an ice cube from his dish. He walks back to us and leaves a trail of water behind him.
The transfer is answered. Again, I tell her my intentions. Ever so smoothly, she takes me APR and cuts it to 1/10th of it’s original percentage–blaming a computer error for the initial increase. Crap, I’m thinking, I should have called about that when it first happened.
Then she compliments me on what an amazing customer I’ve been; on how I’ve kept my account in such amazing status.
“Thanks. I just need to cancel it now.”
More questions continue…
“Can I ask why you what sort of rate the company gave you that you transferred your balance to?”
“I didn’t transfer the balance. I paid it off.”
“When you first transferred, what was your introductory rate?” Um, look at your screen?
“I don’t remember. But it doesn’t really matter.” I’m lying at this point, to avoid perpetuating the conversation.
“Oh. Well I can give you an (AMAZING RATE) if you just keep the account open. That way you’ll have it in case of emergencies.” I look over at the blank wall and envision a 47″ LCD, then to B, who shakes his head.
“While I agree with you, that is a great offer, I’m not interested. I just want to close the account.”
“It’s a great idea to just take that rate and keep your account open, since your account is in such good standing.”
“I might come back to (card company) in the future. But for now, I’m just going to close it.” Crap. I’m being nice. B laughs at me.
“You might not get the same great rate.”
“That’s okay. I’d just like to close the account.”
“Okay, I can certainly do that for you. Is there anything else today?”
You mean we’re finished now that you’ve actually done what I asked? You mean the act of closing the account took 10 seconds after the 3rd degree? No. That’s it for now. Thank you.”

Once of the phone, I took out the scissors. First, I carved an “S” for Super Shauna, and flew it around the kitchen table. Then I minced my credit cards. Minced.
“That’s money, babe,” B laughed.
“No,” I smiled, “It was money!”

I’m tired of reading the “things to tell my younger self” posts. Most of them are things I’m doing already because I’ve actually bothered to take my life semi-seriously. Of course, I can’t play the “meet up with Billy at the bookstore on August 4, 2034″ game, but there are a few things I’d like to share with my 43-year-old self. Don’t assume everyone under 25 (30?) is financially irresponsible!

1. Since we started saving in our twenties, we’re probably pretty happy with your savings account. Don’t have a midlife crisis and blow it.

2. Those kids, if they exist, are probably more expensive than they should be. Think back to our childhood, 43y/o Shauna; we played barefoot in trees. Don’t spend money on all that technology for a kid that will outgrow it, become obese, and have socializing problems in the long run.

3. Speaking of kids: If our kid’s doctor says s/he’s overweight, s/he IS. So stop feeding him/her/them CRAP.

4. I know we didn’t splurge on a ridiculous wedding. Right!?

5. Don’t forget to enjoy the splurges. We’ll soon be too tired to keep up–that would be lame.

6. Since we didn’t waste time being so damn insecure, it’s probably a good time to laugh (again) at all the people who tried to waste our time and bring us down. Just for kicks.

7. Even if we DID get hooked on a couple more lattes and parties than we should have, so WHAT?! Our metabolism is rockin’ and we have a boat load of memories–not to mention life long friendships!

8. Good thing we took education and goals seriously while certain people wrecked the economy and went crazy. Now we can use these examples to tell our kids that it’s important to stick to core values, despite other situations.

9. Continue to stick to what we love. Strengthening it is what keeps us grounded and secure. Particularly writing-people pay us to do what we love!

10. Since everyone around you is whining about what they’d tell their younger selves, refer back to number 6 and a nice drink!

I’ve applied and been approved for a new credit card. After asking for recommendations and making some comparisons, I chose to go with Chase. A friend of mine noted that they have “really good” customer service. After applying, I had a question I couldn’t resolve online, so I gave them a call. Then something really surprising happened: A real person answered the phone. No “press 1 for x, 2 for y;” they noted that the call may be recorded and a human introduced herself.

Chase Free Cash Rewards^SM Visa^® Card

Earn points fast and choose how you want to receive your rewards.

The Chase Free Cash Rewards^SM Visa^® Card gives you the extraordinary benefit of earning points for every eligible purchase and the power to choose your rewards. Redeem your points for great rewards including cash and gift certificates. The only hard decision will be how to spend your rewards! Apply now to get:

• 1 point for every eligible dollar in purchases
• 1,000 Bonus Points after your first purchase
• Intro 0% Fixed APR for up to 12 months
• No Annual Fee
• Get your rewards with as few as 2,500 points
• Choose from either a $25 check or a $25 gift card/certificate from leading national merchants for every 2,500 points earned

The plan:
I get the card in the next 10 days. Then they mail me a check for my outstanding balance, which I forward to my existing credit card company. Then I’ll close that account permanently, and attack my balance on the new card!

After the transfer, I’ll be paying $1,100 toward the balance. That will bring it down to about $4,000. I’ll have the 12 month introductory offer to kill that off: meaning at least $333 a month.

I’ve met the first half of my goal and paid off one of my two credit cards. In celebration, I shared this information with a friend (we discuss these things, very normal I know) and she proposed a game. Having also just paid off one of her two cards, and carrying a balance on another, she proposed we “race” to pay off our credit cards. Our balances are close enough to make it feasible, and I’m getting a head start.

Oh, those tax refunds? What tax refunds? Economic stimulus package? What economic stimulus package? All I see is my mouse clicking the funds directly toward those debts and that amount getting smaller and smaller!

One reminder though–today, when checking the outstanding balance of credit card #2 I saw they RAISED my credit line (I had no notice, just luck that I checked it). AND, it costs me about $200 MONTHLY to carry this balance (just under 5K).

How I managed to get card #1 paid off, and my tactics for #2:
-I never even use the card. It’s not in my wallet (to avoid weakness), and I keep it physically separate from my daily life (not in my bedroom, etc).
-Any money I didn’t expect to come my way goes straight to the balance.
-Iat least make double my minimum payment monthly
-I discuss finances with my friends. Very important to keep the conversation going.
-I transfer balances to cards with better rates. I ask friends what cards they use and how they like them (rates, customer service, etc).
Bank Rate tells you how:

First, ask these questions:

1. How long does the introductory rate last?
2. What is the card’s annual percentage rate after that teaser rate expires?
3. Does the teaser rate apply to transferred balances or new purchases or both?
4. Does that card have an annual fee?
5. What about late fees and over-the-limit fees?
6. Ask if there are balance-transfer fees (Some issuers charge transaction fees as high as 4 percent. So the higher that balance, the higher the transaction fee. A 4 percent fee on a $5,000 balance would cost $200).

-I compare how much I’d save on different balance transfers with a tool from Chase, here. Then check out the different rates each card is offering, here.

On being cheap:
-I refuse to buy water-based products if I can make them on my own.
-I’ve bought off-brand food for everything, including dog food. An interesting part of this though–I buy the food based on it’s meat content. Many of them have corn meal as their primary ingredient (not good for Cooper!). Strangely enough, I found that all of the brand names carried by Costco had corn meal as their primary ingredient while the (cheaper) off-brand (Kirkland) was healthier anyway.
-I invite people over, rather than meeting them at the coffee shop. The sole exception of this is when I met with a client (who I didn’t know). I’ve found it helps that I drink my tea a certain way; the method is catching on with my friends who call me to let me know they’re hooked on it at their house, too!
-Instead of a housewarming, where we made dinner for our friends. B and I had a stir fry night, where everyone pitched in different meats, veggies, and sauces to create delicious, healthy meals. The result was great, everyone had a blast sharing recipes, and I got to spend time with everyone in the process (rather then being stuck in the kitchen, which I’m terrible at!). B and I bought some base meats and veggies from Costco and got a great deal! We also got a case of beer and some red wine–also well priced!

friends and I on stir fry night

-I borrowed Consumer Report publications from my mom when B and I realized we needed a new vacuum. Then, went to Costco.
-I buy my gas from Costco. This weekend, it was .15 cheaper then area stations! (That $40 membership for B and I both has already paid for itself!)
-I turn the heat down when I leave the house (don’t worry, it’s still warm for Cooper); I open windows when it’s sunny (heat!).
-Services trade. My friends (who have some amazing skills) trade me for my writing services, such as resumes, portfolios, websites, etc.

Best of luck in eliminating your debt. I’m going to have to celebrate with some stir fry left overs!

It’s official. I’m at the edge of officially launching my freelance business. Sure, I’ve been doing it for a while–but now I’m going to take on more projects and get more serious about it. In fact, I’d like to make transition into a full-time work load. No, I haven’t quit my day job; I’ve switched from coffee to espresso.

For those of you wondering exactly what it is I do, let me share! I’m a content marketer. Say what?! Let’s break that down..

content [kon-tent] -noun: substantive information or creative material viewed in contrast to its actual or potential manner of presentation: publishers, record companies, and other content providers; a flashy Web site, but without much content.
marketing [mahr-ki-ting]-noun: the total of activities involved in the transfer of goods from the producer or seller to the consumer or buyer, including advertising, shipping, storing, and selling.

So I’ve combined these two concepts. Today, most advertising clutter goes unnoticed–but people still stop to read blogs, articles, and websites IF the content is good enough.

My work is what changes this:

Thanks for taking the time to visit Jonny blur. First off my name is Jon Wallace and I have been studying the arts for about 12 years. I enjoy taking pictures and creating movies, it has been my passion for quite some time now. My style is artistic and i concentrate on lightening much more than everything else. As im sure you will see on this site i love dramatic lightening and into candid photography.

…into this:

Jonny Blur is defined by creative elements that echo in his works. He has been shooting and producing custom photography and videography while studying the arts for over 10 years. His artistic style and effective lighting can turn even candid photos into professional excellence.

That’s enough about me and what I’m doing for now. If you’re interested, the site is here (under construction for now) new blog is here (launching tonight); you’ll have to check back in a week and see a little more! HERE’s how I’ve been saving money launching it…

1. SERVICES TRADES are building my website and identity. The example text above is for the portfolio website of the guy building my website. I’ve also written cover letters, marketing text, and more for the graphic designer in charge of my identity. ADDED BONUS: Both of these services are now in my portfolio, adding to my credibility.

2. INTERNET RESOURCES provide cheap or FREE solutions on organization, accounting, billing, etc. By using free (donation) tools, such as OpenOffice, I have greater flexibility for OS’s. I use Mac at home, but I know most businesses use MS; now I don’t have to buy either editing suite. Where did I find the plethora of great resources? StumbleUpon. My Stumble blog is here; I don’t add friends unless I know them, but I certainly don’t mind sharing my resources.

3. KEEPING THE DAY JOB means putting in the same (if not more) effort in at the 9-5. What I’m doing is not a secret to my boss. Discussing it with her means she has a greater understanding of my strengths, which give me an opportunity to use them during the 9-5. Of course, this adds to my experience. This also means health insurance and a steady income. Currently, I have no intentions of quitting. I really like my new boss and my job, and I have the energy and ambition to throw into each (I guess those overloaded credit hours in college payed off!).

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“Doesn’t she have savings?” I asked. It seemed obvious she would; she’s single, mid-to-late forties.
“I didn’t want to ask.”

The answer is probably not–or she wouldn’t have been freaking out or yelling.

Even starting out with something SMALL (like $100/month) will provide you with something better than anything else: a peace of mind.

Maybe you’re employee of the year.
Maybe you’re invincible.

“Federal Reserve Chairman Ben Bernanke on Wednesday conceded for the first time the U.S. economy may slip into recession…” (Source)

Maybe you’re not.

Please start saving. It’s too easy not to. Remember when I first started my ING account? It takes a measly (unmissed!) $50 from my paycheck (twice a month), automatically. And I set up the account in 5 minutes. Here’s the blog about it.

In addition to saving
I’m always planning. Always thinking of something extra I can do to bring in money–even if it’s for FUN! Here’s more on this. I’m also doing freelance content marketing, on top of my 8-5. What’s your excuse for settling?

Take a skill you have and explore it. Make sure it’s something you enjoy. Have a back up plan and always be moving forward. If you’re not moving forward in your skill level or moving up in your company, you’re stagnant and need to change.

A Story
I’m not sure what point it was that my boss started to road-block every initiative I attempted in my department. I’m not sure exactly what set my work-defeat in place and I started looking for a new job. Despite these things, I kept developing new initiatives and trying to move forward. Then something seriously shocking happened–my boss was fired.
I now have a new boss (previously a co-worker) who is listening, learning, and implementing my ideas–two days after my original boss left. Others were listening to my ideas and liking them, even when the key (at the time) decision-maker wasn’t. Later, my new boss admitted, “He (old boss) wanted you to quit.” Continuing to move forward despite the defeat meant keeping my job and outlasting the roadblocks.

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The gig: Last night I tutored a little boy on my favorite subject: English. He was 7, just getting down the basics of capitalization and punctuation. We began a story about his favorite TV show, Tom and Jerry, and wrote 2 sentences. Mind you, they were very detailed–but the session lasted an hour.

To be honest, it was kind of fun to get excited about the smaller parts of my favorite hobby. He chose fun adjectives, like “exploding” and added nouns I haven’t used in years, like “fireballs.” I don’t think I realized just how easy this would be. After all, I’m always helping others (though mostly adults) write anyway–why not get paid for it?

The outcome: $36.

My lesson: Just because you enjoy it doesn’t mean you shouldn’t be compensated for it. I cannot count how many resumes, cover letters, websites (etc) that I’ve written for other people for FREE; not to mention the design and layout work I’ve done. The return on that has been… nothing. Few of these items I can use in a portfolio, and few of them have lead to monetary gain. Only once or twice have I been offered (what I consider) a fair trade for my services–and I thank them again in the future with referrals that DO turn over.

I’ve put in my time and gotten the expertise–I deserve the compensation.

This reminds me of a comic I saw a while ago.
Someone asks a friend to build him a website for his car dealership.
“Imagine the exposure!” he cries. “You’re link will be at the bottom of my page and that will lead to all sorts of work in the future!” So the website builder finds a compromise.
“Okay, sure! And you can give me a car, and I’ll put your company’s bumper sticker on it. I’ll drive all over and tell people how great the car is. Of course, they’ll think I paid for it… but IMAGINE THE EXPOSURE!”

The point: Just because time isn’t a solid object doesn’t mean it doesn’t deserve just compensation.

ATTENTION PHOTOGRAPHERS: You usually get ripped off, too. Here’s a list of things people will PAY YOU to shoot.

_______________________

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I put off writing this post for a while, but I think it’s an important topic. With the plethora of Internet resources, on top of evolving teaching habits, the textbook is sometimes worked out of the classroom.

When you get your semester schedule you’ll have (at least) an idea of what most of your assigned books will be. Chances are you’ll crack 75% of them; but the remaining 25% will likely be the most expensive. It’s just Murphy’s law!

Here are some guidelines for purchasing your books:
1. Don’t buy from the school bookstore. Instead, check with friends and then use the Internet: Amazon.com, Half.com/Ebay.com, Facebook.com (marketplace). Buy them all at once to save on shipping.
1a. Search by ISBN number to locate your book, not by title. There are so many different versions released–you’ll save yourself a headache!
1b. If you must buy it from the bookstore, hurry up and find one USED.

2. If your professor assigns novels (or general public books), check your library first. You may have to venture to the community (city) library, rather than the school. To save yourself time, try checking availability online or calling ahead.

3. Don’t rush to buy your books before classes start. Ask your professor how often you’ll be needing the book. Some professors throw a book on the syllabus because it’s required by the university and never come around to opening it. Some professors encourage you to share books, because you’ll be using it so infrequently.

4. Here’s a list of class types you’ll want to have the book for pre-class:
1. Math
2. Science
Oh, look, we’re done!
4a. Check with students who’s taken the class before to get a feel for which books you’ll really need. This can help you prioritize.

5. Check with the professor to see if an earlier or international version of the book will fit the class needs. These editions sell for pennies on the dollar and can be easily found online.

Help me help you! Please add my site to Digg, Reddit, del.icio.us, or StumbleUpon if you enjoyed this and other articles! You can also subscribe via RSS. Leave a comment! Your traffic motivates me to keep going!