New Stuff & Moving

Moving 1,500 miles is going to cost a LOT of money! In order to off-set the cost of moving, I'm going to try to sell my some of my books, DVDs, and CDs (advice from Dog Ate My Finances). I'm going to create a moving account and contribute any money I make from selling my stuff. I will also start contributing to this account with money from my primary pay check in June. I don't think I will be able to cover the cost of the move, but I will try to lessen the burden on my emergency fund.

I've cancelled my automatic Roth IRA contributions for 2008. I contribute $250 per month. This year, I've contributed $1,000; so I can contribute a lot more before I reach the limit. However, I have quite a few things that I need to purchase for the fall semester. By stopping my Roth IRA contributions, I will be able to save $1,000 to put toward my transition into studentdom. I am still contributing to my employer's 401(k).

I will need to purchase a new computer. My current laptop is over 7 years old. I would like to purchase another laptop with a wireless card, so I can get free Internet access. Depending on my moving strategy, I will probably need to purchase a bed and a couch.

Jon at Patient Investing asked me about my down payment fund and home purchase plan. Unfortunately, going to graduate school is going to delay my first home purchase. I'm undecided if I want to keep my down payment account or roll it into my emergency fund. I'm leaning toward keeping the account separate and still contributing the small amounts that I make online.

Moving 1,500 miles

I will be moving 1,500 miles in August. With the price of gas, I think I might not rent a moving truck. I plan on loading up my car with as much stuff as I can fit into it and purchasing new (or new to me) furniture when I get to my destination.

While I really like my mattress, I don't think I can afford the rental truck ($60+$.80/mile) and the gas for the rental truck and my car. I think I will be able to use my bike rack to transport my two bikes and load my car down with clothing, kitchen stuff, and decorations.

My youngest sister is moving into her first apartment in the fall, so she is in need of furniture. One of my other siblings is claiming quite a few other pieces of my furniture. I could probably make a few hundred dollars selling my furniture, but I would rather give it to my siblings to help them out (they're still students and broke).

Does any one have any advice for moving? My last move was less than 3 miles down the street. I'm extremely stressed out about finding an apartment, moving my stuff, and being able to purchase new furniture.

Inching toward the $3k mark

Today, I added $5 to my down payment account from a PineCone survey. I also deposited $136.65 from my second job. I also received $5.41 in interest :) this month! I have contributed $148.65 to my down payment account during May.

I have $2,994.11 in my down payment account. I am currently at 9.98% of my $30,000 goal!

I'm back!

I'm back at home. Unfortunately, the weather is horrible, so any biking or running will have to be done inside.

I missed Gossip Girl, so I'm catching up online (Gossip Girl Season 1 Episode 17 Woman on the Verge). I received my package from the graduate program that I am going to attend in the fall (more on that later). I think I will be receiving about $1,000 (after taxes) per month from my stipend.

Link Love

I wanted to post my favorite links from the past week. I'm going to try to start doing this a little more regularly.

Recently, I've become a obessed with my emergency fund. After deciding to attend graduate school, I realized that I'm really going to need my EF soon! As a graduate student, my income will be less than 50% of my current income.

My favorite posts from Wealth, Money, Life Network.
Are There Cracks in Your Foundation? at Dividends4Life
Why We Only Have $10k in Our Emergency Fund at Dollar Frugal
Put that rebate check into your emergency fund, before it's too late! at Her Every Cent Counts
I Will Not Save Money Because I Need a New Eye Exam at How I Save Money
Reporting From Omaha 2: The Annual Berkshire Meeting at Living Off Dividends
My Emergency Fund Update--May 2008 at TheLocoMono Website

On other blogs, I also had an obsession with EF or savings posts.
Becoming Debt Free at The terms and turmoils of Dolly Iris
Eliminate-Debt: Time to Refocus & Review at My Journey to Eliminate Debt
Substantial Retail Discounts? at One Frugal Girl
Thanks God for the Emergency Fund at Walk with Me

Book Review: Millionaire by Thirty

Since I read a lot of books, I thought that I would start doing regular book reviews. Unfortunately, the first book that I chose to review is not a book that I would recommend.

Douglas Andrew tries to set-up himself up as Robert Kiyosaki's Rich Dad. The entire premise of this book is the advice that he's given his sons on amassing a large fortune. As a contrast to his sons, Andrew creates "friends" for his sons. These "friends" are clearly made-up, and I gained nothing from the conversations between Emron, Aaron, and their "friends."

I agree with Andrew's ideas of creating a budget, having multiple income streams, and liquid savings. Unfortunately, Andrew believes that the only way to become a millionaire by thirty is to own at least 2 or 3 real estate properties. First, acquire a primary residence. Then, purchase a vacation home (really? I think I would prefer to invest in a solid mutual fund). Andrew recommends that now you should start investing in rental properties.

Andrew also recommends refinancing your real estate property loans frequently and to take out loans for 100% of the appraised value. He also recommends investing the equity that you build in your home (and remove with refinancing) into an annuity earning at least 8% annually.

I find the advice given by Andrew in Millionaire by Thirty dangerous. By constantly withdrawing equity for your home, you would run into problems when the housing market isn't doing well. I also don't know much about annuities, but I don't view them as a liquid asset.

"Transform Your Home with Tanya Memme Promotion"

This is a sponsored post.



I went to the semi-finalist gallery for the Renuzit Triscents “Transform Your Home with Tanya Memme” Promotion. Right now, there are ten semi-finalists competing for the grand prize. The winner will recive a $20,000 home make-over with Tanya Memme from A&E's Emmy nominated show, Sell This House!. I voted for the home on the left. They are expecting their first child, which already costs a lot! Plus, the couple has pet stains on their carpet from the previous owners. I just hate to think about a baby crawling around on pet stained carpets! I would personally be concerned about germs, bacteria, and mold. I guess I'm not a big fan of carpet in general. I also chose this family because I liked their red furniture. I think this couple will really let Tanya go crazy with their place and be extremely adventurous with color. I can't wait to see the final product!

Check out the semi-finalist gallery and vote for your favorite story. You can vote once per day through June 7th. I won't even hold it against you if you vote for another house! :) Remember that the person you vote for will receive twenty thousand dollars for a home remodel project with Tanya Memme (from one of my favorite shows on A&E, Sell This House).

More problems with Comcast

I haven't had internet access since April 19th. Unfortunately, Comcast is still billing me for 5/9-6/9! I'm so frustrated with Comast! Given my past issues with Comast, I should have gone without internet.

EF Goal=$12,000

Last week, I discussed why I need an emergency fund. I thought I would also address why I'm shooting for a $12,000 emergency fund.

I created my $12k goal because I would like a 6 month cushion. With the economy and my specialized skill set, it could take me a while to find another job. Since I'm single, my savings would be my only option to fall back on.

If I did lose my job, I would cancel my gym membership ($30/month), cut out retirement savings (~$700/month), cut back on food spending(from $200/month to $150/month), and stop adding to my savings accounts (down payment account, emergency fund, travel fund, gift fund). However, my health care costs would increase by over 200% with COBRA (from ~$80 to ~$400). I would need about $1800 a month if I cut back, but kept my health care coverage. This would also leave about $200/month for travel. I'm not planning on taking vacations, but I would probably need to travel for job interviews.

Camping Trip

I'm taking Monday through Wednesday of next week off for a "romantic" camping trip with my boyfriend. Okay, it's not really supposed to be romantic, but I'm looking for any excuse I can to spend time with him this summer. Moving 1,300 miles away will really put a damper on our relationship.

First Campaign Donation

I registered to vote as soon as I turned 18, and I have voted in almost every major election. I put a fair amount of research into choosing the candidates that I vote for, as well as which proposals to support. However, I have never donated my hard earned money to a campaign.

Today I donated $10 to Barack Obama's campaign. I believe in his message and I support his candidacy. I've held off donating because I thought I would donate to the Democratic presidential candidate. Unfortunately, the Democratic party seat is still being fought over.

I know $10 isn't a huge amount, but I know a small amount can make a difference. Look at my down payment account. Even if Barack Obama doesn't win the Democratic candidacy, I won't be disappointed that I donated this money to his campaign. I appreciate his integrity and hope to hear more from him in the future (from the White House or Congress).

I didn't write this post to persuade any one to donate or vote, but I thought I would share why I donated this year...

Resolutions? What resolutions?

I haven't made New Years Resolutions since I was in high school. I broke the tradition in 2008 because I have a lot that I want to accomplish. I also enjoy working toward and accomplishing planned goals.

There are 239 days left until 2009, so let's see how much progress I've made on my 2008 goals.

1. Increase my net worth to $30,000. My net worth at the start of 2008 was $21,494. My net worth has increased by $4,920 to my current net worth of $26,414. I need to accumulate an additional $3,586. Since I'm going to graduate school in August, I think this goal will be very difficult to reach (especially considering the expensive moving costs). I think this goal is at the whim of the markets.
2. Lose weight. I started out the year at 140 pounds, and I am currently at 137 (with a low of 132 pounds). I hope to reach at least 125 pounds before the end of the summer.
3. $3,000 in emergency fund. I will have to deposit at least $200 in my EF every month....this is going to be my most difficult goal. Even with the $600 rebate check, I will still have to deposit at least $175/month into this account.
4. $4,000 in down payment fund. Since the beginning of the year, I have added $1,348.57 to my down payment account. In order to reach this goal, I will need to add an additional $145/month.
5. Get into graduate school. DONE! I've even decided that I'm moving South!

I think I can get my net worth up to $30k if the markets agree. However, I think I will have a difficult time contributing to my EF and down payment account while I'm in graduate school. My income will be less than half of what I'm making right now. I plan on down grading my life, but I'm not sure how fast/much I will be able to cut back.

Cash Back from TurboTax

I just deposited $1.59 in my down payment account. I clicked through Fatwallet before filing my taxes at TurboTax, and paid $19.90 to file my taxes. Getting a little bit of that cash back is nice. Plus, it's going to a good cause (to make me a less jealous person).

My down payment account currently stands at $2,847.05, which is still 9.5% of my $30,000 goal.

Green Eyed Saving Diva?!

As the title of this blog reveals, I want to buy a home of my own. I've been saving any alternate income or random money in this account for a little over a year. I've been shooting for a goal of $30,000 for a reasonable down payment.

I always feel a tinge of jealousy when my friends talk about going house shopping or looking at properties. However, my friends that are property owners are also married (and much more settled than I am). Some of my single friends have gone house/condo shopping, but no one has taken the plunge...yet.

I received a text message from one of my friends on Friday that she had big news and would call me this weekend. Within the first few seconds of the conversation, she blurted it out that she had bought a house. She is moving to a new area for residency and decided to purchase a house instead of renting. She only put down $2,000 for a down payment and predicts to spend another $3,000 for closing costs. She purchased the house for $135,000 and expects her monthly mortgage to be about $880.

I feel like I've been wasting my time saving for my down payment. I realize that I'm not ready to purchase a home because I don't know where I'll be in the fall. I still have not made up my mind about which graduate program I'm going to attend (leaning toward a school in the South). I also know that I won't be able to afford a home on a graduate student's stipend. However, I'm feeling left behind in the race to become an adult.

Weekend Update

I went to visit my boyfriend this weekend and had a fabulous time! I also was able to see one of my siblings before she leaves the Midwest for the summer.

A run down of what I spent this weekend:
$39.24 Mother's Day Gift
$13.27 Electric Bill (automatically charged to my credit card)
$38.68 Gas
$28.45 Dessert with my bf, my sister, my sister's bf--All three are students, so it was my treat.

My boyfriend cooked the rest of the meals at home (he's a fabulous cook). We had a blast cooking together (he cooked, I chatted) and creating new dishes. The only item that didn't turn out well was the herb bread. It was really dry and flavorless.

Rebate check-->Emergency Fund

I just received my rebate check from the government ($600) via direct deposit. Also, my rebate from my annual contact purchase ($40) showed up in my checking account. I moved $640 to my emergency fund. This brings the total to $1,553.88, which is 13% of my $12,000 goal. I allotted $200 from my primary pay check to be deposited into my emergency fund. I think I will easily meeting my May goal of adding $800 to my emergency fund.

The Importance of an Emergency Fund

My emergency fund currently has $912.76. I plan on building this account up as quickly as possible because I think it's the most important savings goal I have. With big changes coming up in my future, an emergency fund is more important than ever.

Top 5 Reasons I need an Emergency Fund

1. Going back to school. I plan on going back to graduate school in the fall. I will have to pay moving costs and additional fees out of my pocket. While I will receive a small stipend (probably about half of my current income) and have my tuition covered, my emergency fund will allow a cushion for adult costs on a graduate student's pay.
2. I'm single! With only one income to rely on, I am responsible for all of bills--regardless of injury or illness.
3. My car. Car maintenance has wiped out my emergency fund twice. I'm currently building a car maintenance fund. Since my car getting older (2000 Impala), the maintenance is going to get more expensive.
4. Unexpected health care costs. Last year, I had to have major dental work done. Even with my dental insurance (which covered 50%) and my flexible spending account, I had to pay about $1,000 out of my pocket. Luckily, I had a baby emergency fund (only $1,000) to cover the costs.
5. Unexpected travel costs. My grandmother recently passed away. Luckily I live within driving distance of my parents' house. If I do attend graduate school, I will be much further away. An emergency at home would require me to book an expensive, last minute ticket.

If my car maintenance bill and an unexpected health care bill came at the same time, I would be unable to pay them without going in debt. Therefore, I'm currently trying to build my emergency fund to $12,000. This amount would allow me to live for 6 months if I cut out my savings (retirement, down payment, etc).

I just made a list of the reasons that I need an emergency fund. Of course your list will be different. I'm lucky that I have a steady, secure job. However, I also don't have a spouse's income to fall back on in case I would be unable to work.

Why do you need an emergency fund? Consider submitting to the Wealth, Money, Life carnival!

Introducing The Wealth, Money and Life Network

It is with great pleasure that I announce the introduction of The Wealth, Money & Life Network (WML-Net). Saving for home is proud to be a charter member of this new personal finance network. We realize that it is a tremendous task for anyone to manage his or her personal finances. You now have access to a support group that can provide you with encouragement and share general information on personal finance matters based on our life experiences.

The WML-Net is made up of a diverse group of individuals. Our ages span across the 20s, 30s and into the 40s. We are located in different parts of the U.S.; ranging from the east coast to the west coast, from the Midwest to the Southwest to the deep-south. Our backgrounds are varied and include careers, education, income streams and lifestyles. Some of us have debt, while others do not. There are those who are married, with and without children, while others are single. Some of us have a college degree and there are those who do not.

We are excited about this opportunity to share with you what we have to offer. Realizing that no one situation is alike, our diverse group will able to provide you with insights based on our own personal finance experiences.

Each month we will present a topic and approach it based on our own unique experiences. This month, we are going to discuss Emergency Funds. I certainly look forward to hearing about each member's approach to the topic of having an emergency fund. If you would like to share your posts about having an emergency fund, feel free to contact any of us to add it to the network post at The Wealth, Money & Life Network site.

Be sure to pay a visit the other The Wealth, Money & Life Network member sites and subscribe to their feed, and my feed, if you haven't done so already. The links below will get you there quickly!

Dividends4Life
Dollar Frugal
Her Every Cent Counts
How I Save Money
Living Off Dividends & Passive Income
Saving For A Home
The LocoMono Website

Also, be sure to visit The Wealth, Money & Life Network site.

We look forward to sharing our financial and life experiences with you in the future!

May Goals

I'm going to really stretch myself this month. We'll see if I will be able to meet my goals!

1. Add $800 to my emergency fund. I plan on adding my entire rebate check and an additional $200 from my primary pay check. This will bring my emergency fund over $1700, which would be about 6% of my $12,000 goal
2. Add $300 to my down payment account. I'm not working as much at my second job and I haven't done any PPP opps in April; so this is going to be really difficult. This would bring my account to about 10.5% of my $30,000 goal.
3. Run at least 5 times a week. I just want to keep running in the morning before work. I will admit that some morning runs are easier than others. On Monday and Tuesday, I ran about 5 miles. This morning I ran 2 miles because I wasn't feeling great.
4. Schedule at least one road race. I didn't set-up my summer racing schedule, and I think it's because I don't want to enter a lot of races this summer. I would like to schedule at least one 10k for this summer (maybe a half-marathon or 2nd triathlon).
5. Start strength training--at least 2 times a week. I want to strength train 3 times a week, but I will start off with at least twice in case something comes up.

April Goals Recap

Before I posted my May goals, I wanted to post my progress on my April goals. Unfortunately, I only met half of my goals.

• Weight under 130, NOPE! I actually put on 3 pounds! I currently weigh 137 pounds (I weighed myself this morning). I have started riding my bike to work and running in the morning. Now, I just need to get my eating under control!
• $200 in Emergency Fund. I actually added $450 to my emergency fund. The extra $250 is from my commercial.
• $200 in my down payment account. I added $586.19 to my down payment account. The majority of the money was from my second job.
• Organize my summer race schedule. Not so much. I have one triathlon scheduled. I need to start thinking about road races.