Save your 'emergency fund' for the real thing

Another great MP Dunleavey article, "Save your 'emergency fund' for the real thing"

Before I knew it, months had passed, and $3,633 had sprouted in the fertile
soil of my hard-to-access, high-interest online account!

Of course, I was tempted to spend it on a vacation. Because the other
hurdle you hit when trying to save for some unknown future event is that you secretly believe nothing bad will happen. Which is what I too believed ... until I got violently sick last month, thought it was stomach flu, ended up in the local ER. Two CT scans and one ambulance ride later, I was in the county hospital for an emergency appendectomy.

And all I could think through the fog of anesthetic was, "Thank God I saved that money."We have a high deductible, and the surgical bills haven't started coming in yet, so there may be rough waters ahead financially. But I shudder to think what shape I'd be in if I hadn't created that safety net.

This really makes me reevaluate using my emergency fund for my security deposit.

New Apartment???

My application was approved at the apartment complex that I wanted to live in. Now, I just have to cross my fingers that I will be able to get an apartment at the time I want. I mailed in my $100 deposit to hold my spot on the waiting list (this is refundable and will be applied to my $300 security deposit if I choose to move in). Now, I just need to wait....It's so frustrating because I want the apartment now...

As a refresher, this apartment will be about $670/month...

Exhausted!

I'm really really tired...My life is just exhausting me! With my hike in rent (from the loss of my roommate) to my car problems, I might not be able to pay off my credit cards this month. If this does happen, I will dip into my emergency fund. However, I'm not sure that it will cover rent at two apartments (I'm going to have an overlap for about a week for moving purposes), security deposit, and my credit card bill (mainly from my car maintenance).

In other car related news, it's about time to have my transmission flushed (about 75,000 miles) and I need to have my tires aligned (it's really noticable now). Since I don't really have the money for these repairs, my car is just sitting in my parking lot. I'm not even driving it to the grocery store. I've been riding my bike to and from work and to any other activities (dinner with friends, tennis class, etc.). I hope to be able to afford to have my car fixed in July, but I'm not sure I will. It seems that every time I bring my car in to have one thing fixed, the price increases exponentially from the estimate.

Favorite Posts

My favorite posts....

I'll be in debt (for the next 40? years) by Well-Heeled: 20something Money

Are you saving too much? Fortune debates the question by Boston Gal

Summer Products I like by The Budgeting Babe

Dating: Who Pays? by Here Every Cent Counts

Answering Comments

SF Money Musings asked, "I signed up with Pinecone years ago and never got any surveys. How often do you get surveys from them?" I get a survey once or twice a month. They send me an e-mail about the survey, and I go to the page to do it. That's about it.

"I think last I read your food budget was $150? How much are you trying to budget once you move? I budgeted $50 but found it was too limiting and I ended up spending another $12 which should last me a few more weeks. " My food budget was set for $300/month. I realize this is high, and I'm working to get it down. I'm working on a budget for after my move. However, I haven't signed a lease yet (or even filled out an application), so I'm not sure how much my rent and utilities will be for the post-move era.

dong asked, "what city is this? I'm just curious? NYC is the only city I know of with city income taxes, but I think their taxes are higher..." It's a small city in the Midwest. They have it set up to take 1% of your gross income (no deductions).

About my apartment search...d asked, "Is the apartment all electric? Stove, dryer, heating, etc..." The apartment has gas for heat, but I'm pretty sure it's an electric stove. There isn't a washer and dryer hook-up, but there is a laundry room in the building.

Pinecone Addition

I added another $5 (from a survey I filled out for Pinecone Research) to my CitiBank down payment account. This brings the grand total to $393.82. I'm trying to restructure my budget so that I can afford to shift money from my main pay check to this account. However, I'm not really finding a way to do it without cutting down my retirement contributions, which I will not consider at this point. I hope that moving to a less expensive apartment in August combined with trying to cut down on my food budget will help me redistribute my budget.

City Taxes

My parents received a letter addressed to me from the city (they live in and that I grew up in) requesting my 2006 tax return. I changed my permanent address a while ago, but they seem to think I still owe them 2006 taxes. I left a message in the income tax division. I don't really want to fork over 1% of my gross income to a city that I haven't lived in for a number of years. I did pay 2005 taxes because I hadn't changed my permanent address. I'm a little annoyed about this mix-up and I hope that I can get everything sorted out soon...

Tennis Classes

I signed up for tennis classes at the beginning of June. I signed up for the June session ($75) and the July session (an additional $75). So far, I love the classes. We play a lot of doubles and work on technique. I definitely think my tennis classes were a great investment in my happiness.

I'm also competing in a triathlon on Saturday, so wish me luck!

Apartment Search

I found a nice 1 bedroom apartment for $670/month. However, it includes heat, water, and sewage. I would only have to pay electric. It's close to my office (about 1.2 miles compared to my current 2.6). I'm thinking about signing a lease. If I sign a 13 month lease before July 1st, I receive the 1st and last month of the lease free. Oh, and the security deposit is $300.

I wonder if they'll prorate the free months...

Even though I really like this apartment, I'm going to check out a few other places before I sign the lease. I think the utilities built into the rent is going to be the selling point. Most places are...more expensive...and don't have the utilities built in. Plus, it's SO close to my office. It's great for riding my bike or even walking to work.

Small addition to my down payment account

I added $5 into my down payment account today. The $5 is from completing a PineCone Research survey. This brings my grand total to $388.82 (1.29%).

While my earning isn't as big as Krystal's $700 from PPP, I'm content with my occasional $5 surveys. I'm also trying to earn a little money using Panda Research.

Big Growth in Down Payment Savings Account

My down payment savings account is now at $ 383.82. Citibank kicked in the $50 for opening an account and I added $57.94 from my second job. I am 1.2% of my goal (of $30,000). I know that I'm so far away from reaching my goal. However, I'm looking to find a subletter for the month of July....and I'm also considering cheaper housing options for next year....

6 Ways to Cut Costs on Wedding Gifts

With wedding season in full swing, I stumbled across a great article on MSN money titled, "6 ways to Cut Costs on Wedding Gifts." The article highlights that "creativity is key." I'm a "buy from the registry type of girl," so I appreciated their tips for my kind:

More important, by selecting an item from the registry, you know you're going to get them something they really want. Ah, but you're afraid they'll know how much you paid for the gift and think you are cheap because you only sprung for a toaster.

Well, the wedding gifts my husband and I have gotten the most use out of in the seven years since receiving them are a set of glass mixing bowls and an iron. Not very exciting gifts, but I sure am glad people saw them on our registry and got them for us. You can also personalize a registry item to make it more meaningful. Include a couple of your favorite cookie recipes with that mixing bowl set, for example, and toss in a few of the key ingredients.

The article offers a lot of advice about how to give a creative gift, but I have no talents. I'll stick with the registry.

Donation to my Alma Mater

Thanks for all of the great feedback to my original post. I decided to donate $20 to the general fund. This is used for salaries, scholarships, grants, and general maintenance of the school. Wanda pointed out that the percentage of donating alums is used in the U.S. News rankings. During the next drive, I will donate $100--I just need to make sure my budget isn't destroyed by the unexpected.

Currently I'm looking for a new place to live. My lease is up at the end of July. I would like to stay reasonably close to work because I commute on my bike. I only live 3 miles away right now, but I could stretch it up to 5 (any more than that would be rough on the days I have to work at 7 a.m.). Ideally I would love to rent a one bedroom apartment. However, I don't want to spend close to $800/month plus utilities. Right now, I'm considering my options and looking to move into a place with existing roommate(s).

My favorite posts for the week

Madame X at My Open Wallet
Bada-Bing Budgeting: 10 Reasons Personal Finance is Different for Mobsters
I thought this post about the financial problems mobsters encounter was extremely well written. I also think the timing was perfect--all of the people mourning the end of the Sopranos.

Boston Gal featured a Money Makeover--Retiring at 73
The article features a 71 year old woman that is trying to retire in the next few years. I appreciate her taking charge of the situation and not blaming it on someone else. I hope that I'm never in this situation, but I think Bonnie Daly is quite a woman!

NIUiceprincess has a fat cat
I enjoyed the picture of Miyaw, and I really can see the wistfulness in her eyes. The cat has to go on a diet!

RichMinx on lolcats
I really like the pictures of kittens this week!

SF Money Musings has a great recipe for Fried Rice
I haven't had a chance to try out the recipe, but it is stuck on my refrigerator...hope to make it soon! Cheap, easy, and delicious...

To Donate or Not to Donate?

My alma mater is asking for money again. I have donated every year since I graduated. Last year I donated $50. However, I'm debating about donating for this school year (it ends June 30th). I would like to donate $100, but I just don't have the money (roommate and car issues). I'm thinking about donating $20 (my smallest donation to date).

What do you think I should do? Do you donate to your alma mater?

Still no roommate

As I mentioned, my roommate spontaneously moved out at the end of May. She has not responded to several e-mails. She still owes me about $100 in back utilities (for April and May). Also, she offered to pay June rent right before she moved out. Since she is no longer responding to any of my e-mails, I will try to call her this week. I'm a little upset by her behavior, but it does make me much more cautious to live with someone again. It might be worth spending a little bit more to live in a one bedroom apartment just so I won't get taken advantage of toward the end of the lease.

Money earning money

$0.69 in interest earned this month by my down payment account...pretty soon it will be a full dollar! I know this doesn't sound like much, but I love earning money by doing nothing. I wish that's what I did for a living! :) The current total is $275.88.

Currently I'm living alone, so I haven't been able to divert any of my main paycheck into my down payment account. I only have one more month (July) before I move to a less expensive apartment.

Wedding Season

Wedding season is starting up. I went to my first summer wedding last night. The bride was beautiful, the food was delicious, and I had a lot of fun. However, my obsessive personality would not just let me enjoy it. I kept wondering how much something like this would cost. I also kept telling myself if I ever chose to get married, I would never pay for that...or I would do that differently.

First, there was a live band. And the band was fantastic! It's always refreshing for a band to play instead of a DJ, but I'm sure it's a lot more expensive. This same band is playing at another friend's wedding later on in the summer. Also, this was an extremely large wedding, which was held at a country club. The scenery was gorgeous, but...see...I can't enjoy anything for face value! I had a great time, and it appeared as though the bride and groom did too.

This question goes out to all of you that have already taken the plunge or are currently planning a wedding, what did you splurge on at your wedding? What are some of the ways you saved money?

Buying a home

Your 5-minute guide to home buying

by MSN Money Staff

The article cautions buyers in a dangerous real estate market. Where everyone used to yell, BUY BUY BUY! Now, they're telling you to really consider your options and research the area well. Some of advice is obvious--shop around for a loan, but I was surprised when they recommend that you shop around for a Realtor (to make sure you get someone that is really hardworking).

• Do you plan to live in your new home at least three years?
• Are you financially prepared? Steady employment, a good credit score and a 20% down payment are needed to obtain the best mortgage rate.
• Is it the right time to buy? If area homes have experienced huge appreciation over the past five years, prices are bound to return to a more affordable level.
• Don't count on your home to be a great investment. Historically, the stock market outperforms real estate as a hedge against inflation.

Over $10,000!!!!!!!!

My retirement portfolio (Roth and work accounts) totals $10,012.67!!!!!! I can't believe my account is over $10,000. I'm so proud of myself. Now, I need to buckle down and get my cash savings up there!

Zecco drops it's minimum account balance to $0

As I wrote about earlier, Zecco is a site that allows free stock trades (10/day or 40/month). When the site first opened, you had to invest a minimum of $2,500, which is much more than I have. Now, the minimum to open a Zecco Trading account has decreased from $2,500 to $0. I will definitely open an account through Zecco now.

The 5 most expensive addictions

MSN money had an article on The 5 most expensive addictions

1. Alcohol. Estimated annual cost: $166 billion. Binge drinking hits the unemployed harder on a per capita basis -- 10.4%, vs. 8.4% of employed people. It is most prevalent in small metropolitan locales, rather than big cities or rural areas. The $18 billion spent on alcohol and drug treatment last year represented 1.3% of all health care spending.
2. Smoking. Estimated annual cost: $157 billion. The tab includes $75 billion in direct medical expenses, with the rest in lost productivity from ill patients missing work. Given the low-tax (or no-tax) underground cigarette economy on the Web and on Indian reservations, it's unlikely that sales and usage have dropped much over the past decade, official government statistics notwithstanding.
3. Drugs. Estimated annual cost: $110 billion. Like alcohol, illicit drug use is more prevalent among the unemployed. Most addicts are also heavy drinkers, though only a small minority of alcoholics are drug abusers. Crystal meth has followed marijuana, cocaine and heroin as the drug of choice among the young set.
4. Overeating. Estimated annual cost: $107 billion. Overeating increases the risk of many health problems, including heart attacks. Obesity causes 14% of attacks suffered by males and 20% of those suffered by females, the National Institutes for Health says, and fewer than a third of adults get regular exercise. The bulk of the $107 billion is the direct cost to treat heart disease, osteoarthritis, hypertension, gall bladder disease and cancer.
5. Gambling. Estimated annual cost: $40 billion. Addicted gamblers often feel compelled to chase after bad bets with more money in the hope of winning back their losses. And some who catch the fever develop the need to periodically raise the betting stakes to keep the same thrill. Also, addicts often face job loss, bankruptcy and forced home sales, and they are at greater risk to commit crimes like forgery and embezzlement.

It's daunting to look at the amount spent per year on these addictions. The only addiction that surprised me was overeating. I'm not sure why I wouldn't think it would rank in the top five, but I guess I don't see it as on the same level as alcohol, gambling, or drug problems.

Retirement

As I have mentioned, I currently put $700/month into my retirement accounts. I occasionally think that I should be saving more. I worry about being able to live comfortably during retirement. I also realize that I will probably live (unless I have a serious accident) well into my 90s (maybe even older).

On CNNMoney.com's Ask the Expert column, Jo from Portland, Oregon is 55 years old and only has $15,000 set aside for retirement. As I read her question about how to distribute her money, my head started to spin...Why does she have so little saved? Does she really see herself retiring EVER? As I read Walter Updegrave's reasonable and encouraging response, I thought I definitely couldn't do his job. I would want to give Jo a serious lecture about her finances, and I probably would not get around to answering her question. I realized (from reading other personal finance blogs) that I get too involved in other people's finances. I always want to tell them, "NO! Don't do that!" or the like. However, I realize I would be pounding my fist on my desk and yelling at my computer screen while reading my blog--$866.49 on my car last month, living alone in a 2 bedroom apartment, and my shopping addiction.

Slipping up...

I went out to lunch...even though I packed my lunch today! I couldn't pass up sushi. I spent $9 on lunch. I will be extremely good, and I will not eat out for the rest of the week.

Unexpected time...

When you have plans cancelled, what do you do with your unexpected time? I probably should clean my apartment...or take out the trash, but I decided to sit around and relax....

Packing my Lunch

I was pretty successful with packing my lunch last week. I only went out to eat once (I know it was a four day week). Since I packed my lunch for three days in a row, I ran out of packable items. I went to the grocery store this evening to replenish my supplies. I also decided to purchase some chicken and beef for fajitas tomorrow night. I'm trying to eat in (instead of ordering/eating out) and enjoy my meals more (I can prepare the food exactly how I like it).

My favorite articles of the week

Boston Gal’s Open Wallet
40 year old roommate
She writes about a 40 year old man that has started having a roommates again. It makes me feel better about living with a roommate in my 20s, even though most of my friends live alone.

My Open Wallet: Today's News: A Personal Finance Blog about Money and Life in New York
Post about New York's housing market. Some of the quotes are pretty funny!

Krystal at Give Me Back My Five Bucks wrote about Casey Serin closing down his blog
Where did Casey Serin go? The cryptic message on his blog leaves a lot of unanswered questions from his readers.

Well-Heeled: 20something money
Defending the Joneses
Ever wonder if you're above average in the networth pool?


Every week I will be linking to my favorite articles. If you are interested in having a specific post from your blog listed, please feel free to send me an e-mail and I will consider adding it to my weekly list.