We have our emergency fund in a capitalone360 savings and our regular checking separate. When they were ING we had it set up so if I made an error and ever used overdraft it would automatically pull the money from savings. This was just a in case thing I don’t plan going into overdraft .It was to keep me from bouncing anything or getting fees. I am dyslexic and liked having the cushion. Capitalone 360 no longer doe this. So, if your account is set up like mine you might want to keep a few extra bucks in it. This morning paypal accidentally drafted ebay fees that wasn’t suppose to be drafted.I had the fees already in my paypal. It didn’t pull from savings. Capitalone 360 fixed it and paypal admited it was their fault. If it had been my fault I would have been charged fees even though I had plenty of money in the other account. 😉
– no head slaps, I really am trying to wrap my mind around this. I get it now – between you and Eldred, I’m getting it!
I make my payments online so not sure how that works with the envelopes. Haven’t reached that section in the book as yet. I’m still working on digesting the Snowball and the other baby steps.
You are explaining it fine – don’t forget I’m struggling to understand a different system. In South Africa its very different and I find myself defaulting back to that, even after being here for 12 years 🙂 No, I’m not going to give myself a head-slap, I need my cells functional for work at the moment LOL
the heels of you writing about cc’s and paying them off. However if nothing was broken, none of us would be here. We all have things in our financial life that need fixing. I don’t know enough about your cc’s, minimums to comment on that part.
if you have a skill to use from home or a product people will come out and buy. But sometimes 2nd jobs are not from home. If you cant do a 2nd from home, why not a 2nd job in Tulsa since you are there already? If you work the 2nd job on the days you’re already there, no extra fuel to/from Tulsa.
What I was going to do was pay it down to zero by using the utility money, but I can see now that the logic is backwards, especially since I wouldn’t be starting with zero. Got it 🙂 I may be a little slow to grasp but I do eventually get it!
If you start with $0 on the credit card, spend $300 on it, and pay off when you get the bill, you don’t pay interest on that $300.* If you had $400 balance on the card, spend $300 on it, then pay $300 on the balance at the end of the month, you’ve paid extra interest on whatever the ‘average daily balance’ that the $300 works out to… Those people who pay off the card every month may not be paying interest, but there’s still too many disadvantages in my opinion.
*Some card do what they call ‘2-cycle billing’. Meaning they determine your average daily balance for TWO months instead of one.
So even though you paid off the card at the end of month 1, they still charge you a bit of interest mean your second month’s bill won’t be zero. It’s another one of the tricks that CC companies use to nickel and dime you to death.
I tell people this. The cc company’s SOLE purpose in life is to separate us from our hard-earned money. They’re VERY good at it, and have a big enough government lobby that they can get away with all SORTS of devious tricks. Run away, and never look back.
(which I’ve been looking at actually, trying to see if there is something legit I can do from home that will actually provide additional income) since it’s 15 miles to Okmulgee (one way) and I work in Tulsa full time which is a 100 mile round trip commute. So what I try to do is get my errands run on my way home so I don’t have to spend additional fuel.
What cheers me up is knowing that if I don’t change anything right now and keep paying what I have been paying all along, the first cc will be paid off by May 2014, the 2nd one by Sept 2014, the 3rd by Nov 2014 and then the CreditOne card in Dec 2014. The last two will be done by Nov 2015.
I am wondering if I shouldn’t be a little flexible on the 3rd one since it was closed quite a while ago so they can’t change my rate. I’m not familiar enough with this program to be sure if it makes any difference. If it’s not broke, no need to fix it, right?
You would be paying interest because you are not at a zero balance with that card. Someone who is would not be, IF they paid it off within the confines of the contract agreement every month. One minute late and yes they would be paying interest. Every card has different rules, but most have a 10-20 day time span for you to pay off the card without getting extra interest added.
Anthea, you do NOT need that card, follow the plan and by this time next year you won’t believe you ever gave money away to credit card companies like you are right now.
Also, once you get going on a zero based budget and cash envelopes you won’t be having close calls with PSO any more.
Have you talked any to C about this? Maybe he can explain it better than I am.
(If I don’t ask the questions, I’ll never get the answers, right?) I’m slowly grasping this, just be patient with me 🙂
So do people who pay off the entire balance every month not realize that they are still paying interest?
I prefer the balanced budget since it doesn’t give me any nasty surprises in the summer. I tried the other way and it doesn’t work for me. Plus PSO tend to get irate at chopping and changing, especially since the last 2 years I’ve had a few close calls with disconnection that I really don’t want to revisit. I know it seems silly, but emotionally I need to feel secure that my utilities are not going to get turned off. I’d rather have a nice surprise and not have to pay the electric bill at all for one or two months at the end of the year and plow that into paying off something or putting it into savings and paying for kerosene.
I doubt Mr. Ballanger will do that – then again, he is 88 years old trundling over in his tractor and bringing me the bales when I need them (rain or shine) and placing them where I need them AND he’s storing them in one of his barns for me so I’m quite content to be paying $35 for a 1000lb bale. Another $205 to go and then I’m good until June/July.
Babysitting, dog-walking, baking cakes for the neighborhood? 11 months is still less time than it took MANY of us, so you’re still making progress…
Remember AVERAGE DAILY BALANCE you add that $235 to your card for even one day and it jumps your average daily balance up not only by that but by the higher interest (that is also then compounded) so you will be paying a LOT more. Utilities don’t charge interest. Since you don’t use your furnace, why not get off the average monthly pay for at least the winter months? Unless your usage was much higher than your average pay all summer—which I doubt it was since the tv was no longer running all day (and other considerations). You might just find you have an excess on the electric bill. Even if you don’t your winter bills should be lower and you could use that savings to get rid of that greedy cheetah—or two.
You are NOT striving to pay that cc off every month you are striving toward NEVER having to use a cc again. I know it’s scary, but you will be so much better off without them. You can’t imagine the pride you will feel when it comes time for next year’s hay and you can say “if I pay you cash will you give me a discount” and they say “Yes” and you can do it without even batting an eye!
You cannot borrow your way out of debt. It just sinks you further to try to do that. Even those 0% offers can nuke you because of the “transaction fee.”
Cut that puppy up. do not place the $235 on the credit card. You are done using credit cards. Do you hear me? Your goal is to payoff that $440.52 ASAP and never charge on it again. The only thing you should see on those cards is payments, payments, and more payments.
– got the wood to make it but don’t know how – one of the ex’s projects that he never got around to, ya know?
Oh – good point! I’ll pop some picks up and lets see, here’s a rundown of the current crew:
Old Man Quan – Belgian Tervuren, 62lbs of grumpiness – 9 years old and almost completely blind.
Ben-Ben – Belgian Tervuren – 65lbs and he’s about 26″ at the shoulder, currently stepping into Quan’s pawprints very competently.
Kiki – Belgian Tervuren – 55lbs – she’s Quan’s seeing-eye girl.
Gandalf – Ben & Kiki’s 12 week old son – still waiting for the right home to show up. In the meantime, he’s an excellent companion while I’m doing chores and following closely in his daddy’s pawprints with regard to his calm demeanor around the animals – temperament being the hardest thing to keep stable in Belgians as a herding breed.
Fleur – Ben & Kiki’s 12 week old daughter who is staying. She doesn’t rebound as quickly as I’d like so unless a really experienced home comes along, she’s a keeper.
Then there are the Icelandic crew who range between 18 – 35lbs.
Skundi – Icelandic Sheepdog – excellent herding dog and all around oozer onto laps
Shadow – Icelandic Sheepdog – chief instigator – but has heart and determination
Kweeba – Icelandic Sheepdog – excellent hog dog – gotta see to believe it
LooLoo – Icelandic Sheepdog – the Diva and alpha – she’s what I call the california girl since she hates to get her feet wet.
Libbye – Icelandic Sheepdog – Skundi and Kweeba’s daughter – hell on wheels, a tough little working dog with so much heart and focus, a real trooper.
I was wondering during the whole tale where Quan was. Quan’s a sweetheart but Quan is the elder of the pack and… Uhh, you might want to give the folks here the size and number of your dogs.. Not all folks on this list know LGD stand for Large Guardian Dog(s). Stress the word LARGE! As in they come up past my waist! Anthea this list has a photos section and I think you should post photos of the pack and what they guard. They are a good loving lot, but even though they know me, NO WAY will I set foot inside her gate when she’s not there!
from our cash flow by making some changes to our budget. Nothing we can do for long term but we can for about 5 months. Plus due to the cold weather here there’s been a high demand for propane so my hubby has worked about 50 hours the last two weeks. That means his last paycheck and the one next week have about 10 hours of OT on them. We are planning to use that money directly to pay the doctor. Hopefully we can pay him off in 4 months with the changes to our budget and the OT pay.
We don’t want to take the money out of our ER fund. We worry about “murphy” coming to visit. And we know that paying ourselves back is a hard task for us. Some people are tempted by credit cards or really good sales….we are tempted at not paying ourselves back. our weakness is “date day” which means lunch out. It’s easier for us to say no date day than to say we have the money in our budget but we have to pay our ER fund back instead. That is one thing we will cut out until we pay off the doctor. I know it sounds strange, but like I said we all have weaknesses and that is ours.
pay off the doctor, and be DONE with it. Why keep a payment around when you don’t HAVE to? Then start a ‘medical’ fund for the future while rebuilding the EF…
the only one we doctor to pay off. Of course the doctor is the one we owe the most amount of money too, about $700. We were able to pay the two off in full. They offered a pay in full discount and we took advantage of that. The doctor won’t do that and having paid the other two in full, we can’t afford to pay the doctor in full. They will take monthly payments and they are interest free.
So here’s my question. I am treating this like a debt to that takes us back to step two, right? It get confussing because we have a fully funded ER fund and were on step 4. So should we stop contribting to the Roth IRA and the 401K until this debt is paid off? The 401K through my husbands work is only 2% since his company doesn’t really match much at this time (we have it at 2% so if they start to match we are already active and can increase the amount) and we fund the Roth IRA at about 8%. We could also use of ER fund to pay it off, but I think my hubby and I agree that isn’t the way to go. We don’t feel comfortable using it when the doctors office will take payments and not charge us interest.
The ones I use most often like grocery and Wal-mart tend to get worn faster. I know it’s in DR’s financial interest to not make them from durable material like plastic because it keeps “us” going back for more when they wear out. Winking smile However, I would pay a little more for them if they lasted longer. I do like the outer part that the envelopes fit into. It is nice looking and most of them, if not all, are gender neutral.
Walmart carries some nice ones for about $5. They are expandable mini files type. I don’t use envelopes I have a small wallet with several pockets in it and I’ve labeled the pockets for the right “envelope” and then store the proper loyalty cards in that pocket of the wallet along with the cash. That way it’s all together in one spot.
Also when looking at office supply stores look at the Martha Stewart line of organizers, some of them are not girly and they are pretty sturdy.
Craft stores like Hobby Lobby carry “envelopes” of different materials as well.
dd has been on her own policy for about 20 years. When she was minor it was cheaper to get a kid’s policy for her. It was just like ours but it came out cheaper to insure her on her own than to add her to ours. If we had real, true affordable health insurance I am certain we would have our house paid off NOW (less than 2 years after buying) than in about 7 years. We are paying 50% extra on our house payment to get it paid off early. So between our house payment and the insurance you can see why do not have money to do a lot of extras.
I have balanced billing on my gas and electricity. The house electricity runs typically between $120 – $145 a month (depending what kind of summer we have and how early/late it arrives and how long, being that this is Oklahoma the ever-changing), and the barn/security lights run around $65. The gas bill typically is around $50 a month if I don’t use the heating during the winter (which I don’t typically since I use kerosene). So if I add those together, it’s about 235.00.
My CreditOne is currently at $440.52.
Can I, by using the cc in the interim to pay those bills (after placing that $235 on the CreditOne card) AND by making the regular min payment, knock the interest down at all? Or is my logic completely backwards here?
If you add *anything* to the balance, even if you pay of that amount, you get charged interest on the total, higher amount. So you’re still going backwards. Don’t do it. Shoot it, chop it up, run it through a wood chipper – kill that cheetah!
How much do you have ‘extra’ per month to pay down debt? I ask because $440 seems like a small amount to pay. I had one card that wanted to charge me $800 per MONTH(which I couldn’t afford) in payments, so it’s all relative.
Can you have a garage sale or list stuff on Craigslist to pay it off or put a dent in the balance? I’m challenging you to come up with $100 this weekend from selling stuff or extra work to throw at this card… 🙂
It’s over $100 for a single inhaler. A bean counter/politician only sees that cost and says “hey” this other one is only $6, so they can take that instead and we’ll save $94.” What they don’t see is that $6 one is hard on the heart, teeth and throat and needs used every 2-6 hours depending on the season. Where as Advair is a once a day and far better all the way around healthwise for the patient.
This is the first in a gradual 5 year increase that was negotiated by our union. I work for the 29th largest school district in the country. My insurance was already better than many so I cannot imagine that much needed changing. We already covered maternity and mental health. They increased the dependent age to 26 two years ago.
The changes also mean that my insurance company wants all meds filled through the mail because it is cheaper for them. It also means that they are cutting costs in other ways. I rake Advair for asthma and it will no longer be covered.
A good healthcare plan should not only be good for some people and that is what we are seeing.