Saving Pays Off

I have been saving on everything since the new year. Come to think of it, for past few years, I have developed that habit of saving. I was able to simply move out to a new apartment after coming back from a vacation. And as we all know, moving to a new apartment costs money.

This post was inspired by what happened to my ipod situation. Since new year, I have been scrimping on stuff. I bought $60 worth of GMAT review books for $5.50, thanks to email coupons and points. I bought almost a year's supply shampoo, toothpaste, face wash (all high end stuff, around $480 worth of stuff, $200 of which is for my mom) etc for $40 thanks to ADR points.

Now with my ipod. My ipod went Halloween on me since December. The last thing I was able to listen to was an audio book that I wasn't even able to finish. Any hows, I remember about buyer's assurance from American Express. I called them up, filed a claim at the nick of time (just 2 1/2 weeks until expiration). After almost two months of wait, I got a call from Patrica from AmEx's Claim Processing and she gave me the go signal to purchase a new ipod and I get reimbursed. Since Apple don't carry the 40Gig photo ipod, I was told to get the 80Gig Video Ipod. The problem now is, which color black or white??

Time Stands Still

December happened so fast. January is on the crawl.

After making all those goals and lists to do for this new year, I just realized that today is only the 23rd. Given that there are like 10 days before February, nonetheless, 2007 have started to be very well managed and paced just right.

One thing for sure that keeps me to one of my goals this year (manage myself better), is my re-mastering the art of multi-tasking. I do office work early in the day to leave the afternoon free for troubleshooting and stuff (meaning, work of others supposedly). For the past few days however, my afternoons have been free. This allows me to do stuff that I would otherwise plan to do at home but procrastinate such as balancing my check book, paying bills, preparing my bank statements for tax season etc. Mundane but time consuming anyways. If only I can influence my boss think that working from home would be beneficial for everybody! Then again, that is wishful thinking.

A Source of Inspiration

An article on MSN.com caught my interest. After all the things I have been worrying about, this gives me a different perspective.

I don't mean to plagarize or steal, but the article online might disappear or get buried in the vast universe of the www, so aside from putting in the link, I decided to copy the article and post it here... if there is someone out there who wish to have it removed, just let me know... don't sue me, I don't have money to pay lawyers.

Surviving (and thriving) on $12,000 a year
I've made my choices, and they include no more husband, a college education and huge changes in the way I spend money.
By Donna Freedman

I'll be living on just over $1,000 a month this year. That doesn't sound like much -- and it isn't -- yet I plan not just to live on it, but to build a savings account.

My 2007 "income," the money I can actually count on, will be $12,084. I know this because it consists of alimony and a portion of a school grant. (I went back to college last year; the grant covers tuition and books with a little left over.) I already know my big-ticket annual costs, too: rent of $6,300 and $1,200 for car insurance. Subtract these from my income and I'm left with $382 a month for food, utilities, clothes, medical deductibles and co-pays, gasoline, renter's and life insurance and any help I give my daughter, who lives on even less than I do.

Make no mistake: I'm poor by choice, because I needed to change my life. I chose to leave my marriage, and I chose to become a student. I can live this way because I know it won't be forever. I'll have my degree in two more years, and I'll go back to work.
I survive on economies large and small. I bring my laundry to baby-sitting jobs (yes, I ask permission). I brown-bag my lunch every single day. I combine coupons and rebates to get items for free (I haven't paid for toothpaste, shampoo or other toiletries for years). I drink water, not soda.

But in order to thrive, you have to hustle, too, always looking for ways to save a dime or to make one. I exchange spent ink cartridges for reams of printer paper at Office Max. Whenever I see a candy dish, I put a piece in my coat pocket; if my energy flags midday, those toffees and peppermints keep me from buying snacks. After I won a basket of specialty coffees at a college event, I immediately sold it on Craigslist.com; I sold a "free after rebate" phone that way, too.
If you've never been really broke, all these desperate little economies might seem silly. You're probably thinking, "Why not have a soda? It's only a dollar." Because I've got just 382 of those dollars each month, that's why, and those dollars have other places to go. The COBRA insurance runs out in May and I'll need to get student insurance, at $389 per quarter. The car needs a 60,000-mile checkup. My share of a dental crown is going to be $486; I will ask for a discount if I pay in cash.

Jill of all trades Last year I survived on a number of here-and-there gigs: freelance writing, work-study, baby-sitting, mystery shopping, resident manager (read: janitor and handyma'am) of my apartment building, paid medical research and writing for the community-college newspaper. (I was the oldest living cub reporter.)

There was little downtime; when I wasn't working I was studying, doing homework or writing papers. And I was perpetually weary and frequently ill all year long. Fact of life: A 48-year-old college student simply doesn't have the energy of an 18-year-old college student.

This year I'm dumping most of the part-time gigs. I'll still freelance and baby-sit, but very selectively. My new school means tough classes, a long bus commute and lots of reading and studying. More to the point, it's a great opportunity, and I'd like to take full advantage. So I'm choosing to work less in 2007, focusing instead on getting healthy and getting my education.
That means careful money management and a fair amount of sacrifice. I'm willing to do both. As a freelance writer and recent divorcee, I'm accustomed to lean living. Here are some of the mantras that have kept me going thus far:

It's not what I have, but how much of it I can keep. To paraphrase Ben Franklin, every dollar I don't spend is a dollar I have earned. So when I think I need something, I ask, "Can I do without this?" Often I find I can. If I can't, then my next question is . . .

How can I get it free, or almost free? The obvious answers are sites like Craigslist.com and thrift shops, especially ones like Value Village that offer coupons and half-off sales. My 99-cent clock-radio wakes me up every morning just as efficiently as a high-tech alarm from The Sharper Image. Rummage sales are swell, too; my church has an annual sale called "Superfluity" (I love that name) at which I bought my desk for $4 and a small chest of drawers for $1. I also buy Christmas and birthday gifts at Superfluity and an annual "500-family" rummage sale. No one has to know that that hardback bestseller under the tree cost you only 50 cents.

Enough is as good as a feast. I love to eat. I don't love paying for it. Because I don't have a "regular" job of at least 20 hours a week, I don't qualify for food stamps. So I shop very, very carefully, and I go to the food bank. Most weeks I can count on potatoes, apples, bread and a can or two of vegetables. Some lucky weeks I get milk, orange juice, pasta, tomatoes, rice or a small package of meat. I cook a lot of beans and stews, and I'm adequately fed -- maybe not as richly or as conveniently as I'd like, but well enough to keep me going.

Every day is casual Friday! When my jeans are in tatters I buy a "new" pair at Value Village (one pair cost me just $1.63, and it was new -- still had the department-store tags on it). I spend $15 or less on running shoes from clearance tables. I've bought a couple of thrift-store tops, but mostly get by with shirts I've had for ages. (Hint: The clothes dryer takes years off the life of your duds. Get a drying rack.) Some days I wish I looked nicer. Most days it doesn't bother me, and I doubt it'll bother anyone else, since students at my school have been known to wear flannel PJs to class. Bonus: When you dress the way I do, panhandlers hardly ever ask you for money.

Announce my intentions. Time and again I have found that when I need something I should "put it out in the universe," which is also known as "prayer." One night last fall, squinting over my homework, I realized I needed more light in the apartment. A day later, a halogen floor lamp landed in the Dumpster outside my window. Recently my umbrella got cranky about opening. The next week I was given a high-quality bumbershoot as a thank-you gift for helping with a campus blood drive. Coincidences? Maybe.

$20 to feel rich I've decided to increase my monthly church tithe to $20. Sure, I could use that extra $240 a year. It just about equals the university registration fee, or the money I promised my daughter toward the price of her wedding dress. It also represents almost half of the car insurance premium heading my way in April.

But giving that money away makes me feel rich. No matter how straitened my circumstances, I can be a part of services the church provides for the homeless, the impoverished elderly and those living with AIDS. In other words, tithing reminds me that there are lots of people worse off than me, people who'd love to have my so-called "problems."

That's not to say that I wouldn't like to have more cash. It would allow me to help my daughter, to secure my future, to buy more roasts and fewer pinto beans. But I figure I won the cosmic lottery just by being born in America, a country where I can not only work on a college degree at age 48, but also find scholarships and education grants to help me pay for it. I have a roof over my head, food every day, family and friends, and occasionally even a $10 student ticket to the Seattle Symphony. Some days I feel like the luckiest person in the world.

If I really am lucky, then I'll make it through 2007 with a positive bank balance. Check back with me next December and I'll let you know how I did.

2007 Goals

Before I realized that 2007 is just around the corner, I have been eyeing on going back to school to get an MBA. When I realized that 2007 is just a week away, I started to visualize my 5 month plan to get that MBA. I have picked out my school, planned when to take my GMAT, planned when to take vacation before plunging into studies etc.

I still want to go back to school, but the first step towards it is finding a way to finance it. This leads to my biggest goal for 2007: to be debt free. I had my share of frivolous expenses, i.e. trips, eating out, gadgets which I don't regret since I did enjoy them some of which I am still enjoying. Not to rationalize them but I learned my mistake and is willing to face the music.

With that said here are my ten goals for 2007:
1. Debt free. I have created a plan, and if I stick to it I would be debt free by March 2008 that includes a savings account.
2. Take my GMAT. Test scores are valid for three years, so I take my GMAT this year and enroll in school next year.
3. Manage time (myself) better.
4. Create a place for everything, i.e. be more organized.
5. Be more consistent spiritually, i.e. going to Mass not just on Sundays but during the week as well.
6. Be more positive in my words and action, especially at work.
7. Finish one book a month.
8. Keep up with blogging. I may not be good as those novelist, however, it helps improve me more.
9. Dress for success. For the past year, I would come to the office in jeans and whatnot, but I realized that I should always be dressing for success even if I am stuck behind the desk all day. You'll never know who you will meet.
10. Consistently go to the gym. I did my first morning workout, it felt great!
11.See this list everyday so I may do more than expected. I had to start now, that is the reason for the 11th entry.