New Job!

I finally got confirmation that I was selected from a recent interview. It's a job within the field but it doesn't nearly pay as much as previous job but at least, I can start focusing on debt repayment and paying some bills!

I'll be making $20,000 less than what I was making but I'll still be keeping an eye out for better job opportunities. On the other hand, the job seems alot more interesting the previous one. Once I gain more experience in this particular sector of the field, I can actually (potentially) make more than the previous one, which was pretty much at the top end of the pay scale for that specific type of job.

Now, I can breathe a little bit easier knowing that I will have money coming in to the bank and not just going out. Finally, some good news.

Withdrawal from 401k Plan Decision

Withdrawal from 401k Plan is i know a horrible thing to do since I will only be getting some money after taxes and the entire withdrawal amount but as I'm still going for interviews (nothing heard back yet) and am not seeing too many job openings that apply to what my skills at the current time, I'm getting antsy!

On one hand, I want to take everything out (or most of it out if the plan allows me to) to pay off the current debt and have money left over to cover a few months expenses. On one hand, it's all the money that I have been socking away since I was 26, when i started contributing to retirement. The current balance of my 401K plan is at $151,000 (a few hundred more). Also, I have about $11,000 in a traditional IRA and Roth IRA. In addition, I have about $55,000 in my pension account, which i could leave in that account for annual pension payout of $16,000 per year when I retire (earliest retirement age is at 50 for this account). Or i can withdraw that money out. At age 36, I wish I am not faced with making these decisions since it will be hard to build up/make up any retirement withdrawals I make.

Currently, I'm leaning towards leaving my pension account alone...$16,000 per year guaranteed money when I retire is not great but it's better than nothing. I'm leaning towards withdrawing my 401k plan to pay off the debt...which means I might have to take out $100,000 to cover the taxes that will be taken out from the withdrawal amount. I will need at least $50,000 after taxes to pay off debt and to have some living expenses covered.

Either way, it's such a depressing decision. I will wait another month to see if I might get a comparable job by then since my tax refund will be covering April's mortgage. If not, I will just get any job and hopefully, will be enough pay to pay the mortgage, expenses, and minimum debt payments. R. is still in the process of being hired from his temporary position to a permanent position (pay will be the same but with benefits)...which means his monthly pay will be at least $300 less than currently (medical insurance for both me and him). But at least, there will be medical insurance available for us still. At least, that's something good.

Tax Refund 2014

I am going to get $1768 back for tax refund this year. All I can say is thank goodness because every bit of this will be going to fund my mortgage for the next month. It gives me a little breathing room to work out a job situation. I wish I didn't have the debt load when the job was compromised so that I don't have to worry about covering everything. But it is what it is and this tax refund will certainly help. I hope everyone else's tax refunds are bigger and better used (such as going towards debt) this year!

Shopping for Interview Clothes

Finally, some much needed rain! Severe drought in Southern California has had everyone and the media in a frenzy the last few weeks. It's not nearly enough but it's something.

Today, I am planning to go to TJ MAXX and Nordstrom Rack to buy a couple of work outfits. I'm dreading this because I'll be putting it all on credit card but I need the cash to pay utility bills and other necessities. Plus, I've always hated clothes shopping (was the make up shopaholic).

I even looked at salvation army yesterday to see if they had anything work appropriate. It was hard to find my size and alot of the items were pretty worn down....not something interview worthy. Also, the local "thrift" stores in OC have items that the same price as TJ MAXX sale items, etc....so, I might as well shop at TJ MAXX, Ross, etc. There is supposed to be one consignment shop in Newport Beach, that is reportedly big and cheap for good quality clothing (from all the rich people in the area, I presume). It's called "Consignment Attic". I heard that it has a pretty good selection of couches as well and I'm trying to ignore our sofa with peeling and frayed upholstery. I just need to focus on getting interview outfits.

I'm using this personal blog to help me write out thoughts and calm myself down (i get stressed out easier than most people i think). There might be quite a few frustrated and depressing posts down the line...yes, even more than usual...as I try to get through this.

Current debt = $48,000 Emergency Savings = $0 Job = 0

Out of a Job!

I am currently out of a job! It doesn't help that I was sick for two weeks but I have been severely depressed about the situation. I have already exhausted my $4,000 emergency fund (I also had car troubles that reduced the emergency fund earlier)since I had to use it to pay my mortgage.

I am furiously applying for jobs in the environmental field but I have little hope that I would be paid the same amount. It would probably be $30,000/yr less but at this point, I am desperate for any job. I am going to have to use credit cards to buy interview clothes too. I am even thinking about getting any job, such as a retail job, just so that we do not starve and pay for lights, food, gas, etc. In addition, emergency surgeries had resulted a large medical debt that I had financed some on credit cards and some directly with the hospital. It's around $30,000. This is not including the $13,000 credit card debt that remains still(original amount was $15,000 when I took this loan out late last year).

So, the currently debt stands at around $45,000 and climbing due to the job situation. I pray that I can find a job soon but it's been a long time since I had been unemployed and can not help but feel hopeless. It is amazing how things can go from manageable to disastrous. The subject of declaring bankruptcy had entered my mind, of course. However, I do not want to declare bankruptcy unless I can't find a job for more than six months at least. I want to at least fight for getting a normal life back and pay back what I owe.

I just have to remember to not implode! I will update the debt progress and emergency fund pages soon with all the breakdowns.

Sick & Bank Account is EMPTIED!

Isn't it just perfect the way things go bad in a bunch? I got sick over the last few days and today, I'm back in the living world just to find out that my checking account with Chase has been emptied. I've made the necessary phone calls to chase as well as in person visit.

They are definitely reimbursing the charges but it might take a while. It could be a day to a few days. In the meantime, I have my mortgage going through by friday and HOA fees going through as well. Just to be on the safe side, I've asked my mortgage lender to waive the late fee penalty if I end up being late with the payment. Thank goodness, I've never been late with my mortgage payment in the 8.5 years I've had it. I wish I had stayed home today instead of coming into work. I can't even think straight but at least the fever's down with the help of Ibuprofin.

Stay healthy out there because there's something going around offices and schools right now. Two of my nearest co-workers are out sick at the same time too.

Do I Really Need A Smartphone?

Our Daydream about Smartphones has been sacrificed for the moment.

I have been thinking about finally getting on the bandwagon and becoming smartphone owners recently. I've been itching to pull the trigger especially when all my friends and family have been pressuring us to do so.

However, I'm going to have to be happy in my ignorance and stay with our $77 monthly bill for two cell phone lines. I use my cellphone quite alot for work and need it to be reliable, so, a good cell plan is necessary. Until my current non-smartphone dies, the current non-data plan is satisfactory.

What made me change my mind about getting smartphones for now?

We just spent a little over $300 bucks (charged on the credit card, of course. Bad, I know.) on Sunday on a day trip to Universal Studios Hollywood with my cousin and her family. Over $300 = Between the cost of two tickets, parking fee, lunch at Universal City Walk, dinner inside the park, and buying sodas multiple times (I'm still working on cutting that out of S.O.'s daily addiction). We MUST and NEED to recuperate this money through sacrificing something else...which, at the moment, sticking with a cheaper phone plan instead of upgrading seems like an obvious choice.

The main reason for us going to the amusement park is that we wanted to spend time with our friends since it's been ages since I last saw them and their baby. The baby is growing up too fast. Another reason is that I just could not keep telling them that I can not hang out with them because I don't have the funds anymore. Especially, when this is a once in every 4 years deal. So, basically, I'm going to sacrifice in one area in order to fullfill another area. I'm glad that I got to spend time with them and the baby.

Smartphones can wait. I've lasted 36 years (December Birthday!) without them, I can go at least a few more months without them.

However, the entire day was spent being referee to my friend's fighting about *i'm not sure what*, with the fight escalating to walk-offs, screaming, and crying in public. Me and S.O. are so happy to see them but were disappointed that it was a miserable day of constant fighting while we stare away uncomfortably. We are even more disappointed because $300 is a big deal for us but it's spare change to them and we would have liked to have had a splendid day instead if we're spending this much money.

Oh well, at least these tickets will be good for an entire 2014 year...if we go back.

Then, of course, there are so many other things that we need to budget for instead of getting smartphones. For example, I need to budget immediately for dental care. Both me and S.O. need it deep cleaning as well as cavity work and possibly more. I need to save at least $500 for this purpose just in case, although we do have PPO dental insurance plans.

Tonight, we'll sit down and celebrate the new year while we write out what we need to save for in 2014, besides debt repayment. That's right...we're not going out and getting drunk this new year's eve for a change!

Have a Happy New Year to everyone who happens upon this little blog!

Recovery from Surgery

For some reason, I thought that surgery recovery time would be the same as time for catching up with chores and tasks that have been neglected during the normal grind of work and home life.

Boy, was I wrong! I am at about two days of recovery now but I can't move out of a chair/bed/anything without help. I'm still on heavy painkillers. So, i'm hoping this spell check thing on blogger works :).

It will be about 2 weeks of recovery at this rate.

Now, I'm going to go lie down.

The Struggle With Debt

Since I started this blog, it has mainly been about creating an online personal space where I can talk about anything personal finance. It is often odd to talk about finances with friends and it may be be viewed by the other party as "tacky" to talk about money. It shouldn't be but sometimes, it is the way it is. As a result, this blog is the only place where I have been the most candid about my journey. And what a see-saw of a journey! Full of human weaknesses and unexpected problems!

21 years until credit card debt freedom?

If I continue to pay minimum payments on my credit cards, the $21,000 credit card debt currently will take 21 years to pay off!

I have hand written the amounts of debts I owe on a paper debt tracker table so that the significant other can view it as well. Every day, we will be viewing when the bills are due and how much debt will still be left. It's hanging with a thumb tack on a wall of the home office.

Currently, we are just paying the minimum payments because money is tight. In order to prevent further debt accrument, we are focusing on bringing the Emergency Fund to $5,000 first.

21 years of credit card prison?? This just means we have to reach our short term Emergency Savings goal quickly so that we can start focusing on paying extra to the debt. I'm going to scan the debt load tracker forms and post them on here as a follow up post. I might think about duplicating the paper version in an electronic form so that I can easily keep track and upload on the blog. But I do want and need to keep it simple and have S.O. have easy access as well at the end of the day where it can stare back at us from the wall, reminding us about them. That way, also, we can take encouragement from little payments we have made each month as we walk around the place. It might even serve to deter us from going out and buying that $175 concert ticket that we obviously can not afford.

The simpler it is, the better for us. I don't want us to start hating the "chore" of updating two forms. Knowing ourselves, we need to associate as little workload with our debt tracking activities.Start simple.

Importance Of Being Healthy

The Importance of Being Healthy has never been more apparent to me now. I have been taking unpaid sick leave since I have gotten sick and it needs to stop now before I get behind on bills and add back the debt I have paid off so far.

On the other hand, coming into work while being feverish is not a smart thing to do either since it delays my recovery time and it is also unfair to my co-workers although I do have my own office and my physical interaction with them is kept to a bare minimum.

I hope things look better soon because since Christmas holidays, I have been pretty much through out. I got sick, then got better, and now, I'm sick again. The same respiratory illness. Vitamin C, nasal rinse, and multi-vitamins haven't been helping much during the non-sick periods.

I hope everyone else is doing good with their health.

Surgery Ahead!

Bad News Come In Clusters....I am 100% at fault

I have been missing alot of work lately due to health problems and there is a surgery looming ahead, which will take approximately 4-6 weeks to recover.

I have been missing pay due to me being paid hourly and the 4-6 weeks of recovery time from surgery will be unpaid as well.

What does this mean to my goals of Credit Card Debt Payment & Emergency Fund Building?

Well...

2013 New Year With New Problems?

I'd hate to start off the new 2013 year with something negative but I kicked off this new year with urgent need for getting my car pass the smog test, which involved the replacement of the Oxygen Sensor, and new tires.

The tires can no longer be ignored. The front tires are showing metal wires even. Walmart has 14" tires for $73 each. It is just discouraging because I was planning to save $900 in December but this money will be used to pay for the four tires and the Oxygen sensor, smog test, and DMV fees.

About OC Budget Living: Updated

Things have changed since 2005. I have changed since 2005 although I am still deciding if it is for the better or worse. :)

In any case, I decided to update the "About Me" section and thought I'd post the following updated information:

 

I am currently residing in Orange County and am not rich.

 

I started this blog purely as a way to encourage myself to start saving for a home downpayment in 2004-2005. Despite having a low income, I met my initial goal of budgeting enough to save for my own piece of real estate, and in March, 2006, became a homeowner. However, I bought at the height of the real estate bubble and my condominium has fallen drastically in value. I recently refinanced to a lower mortgage interest rate, which has helped slightly with the mortgage payment and associated costs.

 

Disheartened that my life savings went nowhere, I started doing things that I never did before while I was budgeting; using credit cards for unnecessary things, expensive outings, and vacations. I am also the main supporter of my partner until he is finished with school. I have accumulated debt and then, paid it off multiple times in the last few years. In 2012, a few more events transpired and I have once again accumulated $16,000 in debt.

 

Eventhough my salary has increased by approximately $30,000 since 2004, I had ill budgeted during the last few years and managed save less than when I was making a lot less money.It is time to stop this cycle.

 

I plan to start anew, saving as much as $50,000 in the next five years and paying down debt in the process. I am starting over again in December 2012 and hopefully, there are better savings days ahead and the cycle of building and breaking down debt ends.

Debt: Another Mountain to Break Down

I have been dreading to post this but I must force myself to face this.

I won't go into excuses except that there were a few things that came up that helped me re-accumulate debt after my last year's Debt Elimination. But, mainly it is my lack of willpower and commitment to budgeting.

This is not counting the Mortgage Debt. I did a balance transfer recently to consolidate, which is why the Discover More Credit Card is at 0% APR currently until 2014.

In addition to that, I have alot of uncertainty at my job right now. I need to build up emergency funds again as well as pay down the debt. Since Discover More Card is at 0% APR on balance transfer currently, I think I am going to wait on paying it off even if I can save that amount in the coming year and put the money in the emergency fund instead until the promotion period ends in 2014. Of course, Chase Sapphire Card needs to be paid off soon since it has the 15.99% APR on the balance.

Have you had any problems of not meeting debt elimination goals because life throws curveballs at you?

Discover More Credit Card (0% APR until 2014):

$12,509

Chase Sapphire (@15.99% APR):

$3,229

Home Warranty Insurance

I am going through Home Warranty Insurance Quotes currently for coverage on my condo. The main thing I'd like to cover is the air-conditioning unit since the tenants have brought their own washer, dryer, and refridgerator. Recently, the garbage disposal has been replaced so, I doubt it would be an issue for a long time.

Also, I do want coverage for the plumbing system that the condo insurance does not cover. A lot of the times, it really feels as if the Condo property management tries to blame the unit owners for the faulty plumbing and wiring that this complex has. I don't have much faith in how much my condo insurance covers. I can not count the times that the plumbing has failed and we are treated as criminals....only to find out that it is the piping problem that the condo insurance should cover. This causes long delays in getting the problem fixed and alot of headache.

I already have a homeowner's insurance in place but I am wondering if it is worth it to also get a home warranty insurance mainly for the AC system, dishwasher, and plumbing issues that the condo insurance would not cover or tries to get out of.

The cheapest quote I have received so far is $395 per  year, which I found out is really on the higher end of the price range. I'm going to look for coverage around $200-$300 range if I can. The hunt continues.

Update:  The cheapest quote I have received so far among three to four insurance companies is $28 per month. This is from First American Home Warranty Services. The hunt continues.

Money Spent on Condo Repairs

Money Spent on Condo Repairs:

1) Minor repairs, equipment, and installations such as electrical switch covers, (3) carbon monoxide and smoke detectors, a stabilizer (added security) for one of the closets, nails, screws, and repair of one recessed lighting fixture in the guest bathroom

$179 (Ace Hardware)

2) Garbage Disposal Unit from Amazon

$52 (I used a $5 amazon gift card)

3) Installation of Garbage Disposal Unit

$125  (I should have agreed with my boyfriend to have him install it rather than have a handyman do this. It would have been free installation for something simple as this. Next time, next time!)

4) The hot water in the condo stopped working in the master bathroom

$300 (Current Quote. Exact Cost To Be Determined by Tomorrow)

The handyman who installed the disposal unit was supposed to fix this since he was a plumber as well. But, he had no clue. So, I am hiring a more professional plumbing company to go there tomorrow. Expensive. Since I'm going to have to take care of work issues this weekend and the boyfriend will be studying for his finals, I'm going to have to swallow this cost.

Total Cost of Condo Repairs this month = $656.00

All this for the condo whose current incoming rent is only partially subsidizing for the condo's mortgage/property tax/insurance/HOA costs.

Will there ever be a day without problems and setbacks?? It seems like whatever little money I make, there's always something to take it all back.

Renting Out My Condominium To Lower Monthly Fixed Expenses

Since I bought my condominium at the height of Home Sales, I have a pretty big home loan that I am making painful monthly payments on.

In June 2012, I refinanced to a lower mortgage rate at 4.375%, which helped quite alot on monthly payments. Except, the refinancing costs were rolled back into my loan, which pretty much brought the loan amount nearly back up to the original loan amount. A few thousands short of being back at the original loan amount.

I was not able to get the lowest interest rate or get no cost refinancing loans because my property is severely underwater.

So, I made the decision to rent out my condo and move back into a home that my parents own at the low cost of paying the house utilities only.  My parents are planning to sell this house in a couple of years and have stopped renting the house out to a tenant. I am insanely lucky and grateful to have them as parents and for allowing me to move into this house until they sell the place.

That was back in July 2012, when I began the moving in process. I was not able to get a renter until now (November, 2012). The utilities here at the house are double the utilities over where my Condo is.  So, for the last few months, I was suffering in terms of having little or no money left over after my paycheck since I was still maintaining the Condo.

Finally, I found a family who will pay me $1,400 per month for the condo with $1,400 security deposit!! They have moved in this week.

The total monthly cost of the Condo is still going to be in the RED, unfortunately, at about $500.00. My mortgage payment, HOA dues, homeowner's insurance, and property taxes equal to $1,900. The rental income is $1,400. That is $500.00 still in the red.

About three days into their move, the tenants reported that my garbage disposal unit has stopped working and that there is no hot water in one of the bathrooms. I ordered a new garbage disposal from amazon and shipped it directly to the tenants already.

I'll know what the cost of repairing these issues is come Wednesday night. Here is to hoping that the hot water issue is not a major issue, involving any damage to the drywall!!

Debt Elimination

Credit Cards!

In the past couple of years, I did what I had managed to avoid for most of three decades; I accumulated huge amounts of debt (not even counting the mortgage debt).

I've lost track of how much frivolous spending (out-of-country vacations, clothes, makeup, etc) ended being (upwards of $15,000) but I have the following debt amount remaining after a couple of years of paying off as much as I can:

Current Debt (not including mortgage debt)

1) Citi Thankyou Card: $ 4,475.61

2) Chase Slate Credit Card: $ 58.95

3) Amazon Visa Credit Card: $ 66.91

Today, I am using money from the tax refund and emergency savings to pay off the two smallest cards and most of the largest account.

Remaining Debt as of tomorrow (March 8, 2012) would be:

1) Citi Thankyou Card: $ 475.61

    I am throwing $ 4,000 at this card. 

2) Chase Slate Credit Card: $ 0.00

    Yes!!

3) Amazon Visa Credit Card: $ 0.00

    Yes!!

How do I feel about this?:

Do I feel happy about this?

Yes.

Will there be more credit card debt?

I intend to continue using these credit cards but pay off the balance each month as I had done before I went out of control in spending. So, yes, there will be a balance but to be paid off each billing cycle.

Emergency Savings Status (March 8. 2012):

$ 5,200.00

My emergency savings is very meager at this point. Just typing it out makes me feel depressed.

I definitely need to save more. It's been hard since I have had two pay cuts at my current job and currently, taking a nearly 20% paycut. Management keeps saying another year, then, another year comes, and they're right back to saying another year.  Things around the condo have been failing on me that needed repairing that I have been using cash to pay for. I just don't want to use credit cards if I can pay with cash anymore. It's been a tough couple of years.

Here's hoping to a better year in 2012!

Getting Back On Track

I Messed Up

I created this blog back in 2005 because I wanted a way to keep my honest in my spending behavior as well as to act as a focus for my financial life. A goal tracker. I was very diligent in my saving as well as in my spending leading up to the purchase of my condo.

After that goal was reached, I did what I hope many people do not do after reaching their goal; For the past 5 years, I have derailed myself from the original goals of saving and living frugally. I went on a mindnumbing phase of spending frivolously in an extreme sense. Not only did I not save $1,000 per month as planned during these five years, I used up all of my emergency fund.

Yes, all $15,000 of it. Including missed opportunities as well as the extra income from freelancing jobs, I ate up and spent more than $85,000 during these past five years.

Now, I don’t even want to try to calculate and include all the interest income I could have had, had I kept it in the savings account, because the sheer amount of it will just distract me from what I need to do from this point on.


Where did it all go?

The honest truth:

1) I ate it.

2) I bought a lot high-end makeup. I have enough to act as a makeup counter.

3) I bought unnecessary clothing. Some pieces are the type that I would never wear anymore.

4) I bought a lot of "wants", including electronics, furniture, and accessories.

5) The final reason is a big thing for me to confess...an addiction that I never thought I would be caught dead doing in this lifetime.  But I must be honest with myself.

I got addicted to gambling; Blackjack, in particular.

Every extra paycheck went into my visits to the Casinos.  At one point, I was rotating three or four different casinos in order for the dealers to stop recognizing me.

Now, I'm not saying that I'm all better and this alter-ego gambling me has been miraculously kicked to the curb.

I am taking one urge at a time.

The last trip was two weeks ago when I spent two thousand dollars... the same two thousand dollars I needed to save in order to reduce the debt that I have accumulated.

Debt

This brings me around to talking about the debt amount that I have accumulated since the "fall". I have approximately $ 6,300 in a brand new Chase Visa card and approximately $900 in a Citibank Credit Card.

Savings Goal (May 2010 - March 2011)

$20,000 by March 2011
This amount does not include the $7,200 debt that I must also pay off by then.
Thus, the total to be saved = $27,200

Current Status
 
$ 4,000 in an INGdirect online savings account
$ 4,000 in a Bank of America savings account
$ 1,000 in a chase checking account
 
Total: $ 9,000 cash savings
 
All these accounts are not under my name or within my access for a good reason.
 
During the last few years, I met my current live-in boyfriend and since he realized that I have a serious gambling problem that he couldn't control no matter how much he tried, he has been putting away his money that he was supposed to pay me in terms of rent into these accounts.
 
Immediate Plan of Attack
 
The $ 6,300 debt in Chase Credit Card is the newly transferred debt from the original Citibank Credit Card due to their 0% balance transfer offer for six months. 
 
I plan to pay off the remaining balance on the Citibank card ($ 900) ASAP and then, pay the minimum payment on the new Chase credit card until the six months run out.
 
A New Promise
 
I promise to myself that I will be saving every dime until I build up enough money ready to pay off the $6,300 as well as the remaining $11,000 saving gap by the end of March, 2011.
 
That's it. For now.