Thursday, May 31, 2012

Home Brewery

I brewed my own beer!

After a month of preparation and waiting, I tasted my home-brewed beer for the first time last night.  Not to brag - but it was darn good!  It tasted much like a light lager brewed in the U.S. (Miller Lite, Bud Light)  I received the entire home brew kit for Christmas and had been waiting (or procrastinating) to make the first batch.  So, not only do I save money on beers for the next month or so, I can get to brag and call myself a brewmaker!

Will I continue to brew my own beer? 

I would really like to.  Mr Beer provided the ingredients pre-measured and partially mixed.  So, the entire process was incredibly simple using their system.  That being said, I'd like to have more creative in the brewing process to make different types of beers.  I'd like to brew a Stout, an IPA, a Hefeweizen.  So, I'm going to research ingredients and the brew process more to better understand my options. 

Brewing was a great way to spend an afternoon on the weekend and will help save money in the short term.  Two great things! 

I can't wait to share my first batch with others.  I wonder what else I do in-house to save money?  Distill my own Bourbon!!!!!

Coach

Wednesday, May 30, 2012

Student Loan Battle

Me and the Federal Government had a misunderstanding this past weekend.

So, as I've stated before, I'm on a major student loan paydown plan even while they are currently in deferment.  So, since I started my Side Hustle, I decided to make a second payment this May for $275.  When I checked my account balance on Friday (because I'm anal and check balances at least once a week) - Nothing Happened!

The balance was unchanged.  They had taken the entire payment and allocated among all 7 loans and only deducted the amount of interest owed.  I was disappointed.  I had hoped to see a big decrease in principal balance this month, since that is how the past payments had been deducted.  I am guessing that since undergrad loan consolidation, something got lost in translation.

After an email and a call, the primary $500 payment was allocated correctly to one individual loan as wanted.  So, the balance was attacked and some interest was paid down this month.  So, the principal balance didn't fall as far as I had hoped, but overall I reduced my debt in a major way.  This will in no way impact my desire to lower my student loan debt, but was just annoying!

I could have made them re-allocate the original payment, but that would have been simply reclassifying debt.  No reason to do that.  It just means I need to keep after the Side Hustle!

So, Student Loans due are now - $36,303.46!  Gotta Keep on Keeping On!!

Tuesday, May 29, 2012

Housing Projects

Happy Memorial Day! 

I realize I am a day late, but I wanted to get it out there because I had such an interesting few days.  The three day weekend was a great re-charge and thoroughly enjoyed by the Professor and I. 

However, there was one moment that bears discussing.

Our house does not have Central Air.  We use window units to attempt to keep the house cool during the summer.  However, on Saturday, it was 90 degrees and humid.  The AC units were not doing a very effective job.  The Professor was NOT happy. 

The trouble isn't sleeping or lounging around the house.  It's when she is getting ready and moving from bedroom to bathroom to TV room.  The circulation isn't great in the hallways and the upstairs is always hotter than the downstairs.  So - Meltdown insued!

Which brings me to our dilemma?  We obviously don't plan on living in our current house forever, but how much should we invest in it while we live in it.  Off the top of my head the projects that COULD be undertaken are:

1.  Renovate the Basement.  A major project which would include drywalling, installing ceiling, renovating a bathroom, and adjusting electricity (knob and tube wiring).  However, we would be likely to recoup the investment upon sale as it would be a major improvement to the single family home.

2.  Installing Central Air.  Having an estimate done this week.  Not sure the ROI would be worth it, but it would exponentially increase our (wife's) happiness levels.

3.  New Windows.  Most of the windows have already been put in place, but many in the Sun Room could be replaced.  This job isn't a high priority and would only happen with major lottery winnings.

Now - we've already updated the kitchen and done some pretty sweet landscaping.  My hesitation is around 1) ROI and 2) necessity.  I worry that a $10,000 Central Air installation or $30,000 Basement would not recoup the cost and we would not get the proper use out of it if we only live in the house for 2 more years.  We may live in the house for 5 years, but it's not definitive.  Perhaps these amenities would entice us to live in the house longer - even when children are in the picture.  I would not object to it while in the middle of student loan paydown and Net Worth build-up.  If I could get another great deal like we did for the kitchen, I'll seriously consider these projects.  However, I'm still nervous with the new car coming towards the end of year about new debt.  I may need to increase the Side Hustles!

Coach

Thursday, May 24, 2012

Reality TV Economics

My wife loves Reality TV.  She loves the Real Housewives (all of them), the Sister Wives, the Bachelors & Bachelorettes, and the Teen Moms.  My DVR is jam packed with more trashy television than we know what to do with.  Seriously - she can't keep up with it all.  She has to speed through episodes or delete them because the allotment fills up daily.

Anyway, while studying for classes one night, she had an episode of the Real Housewives on from Jersey which discussed the pending bankruptcy of a show member.  The immediate reaction every person has is "How did she blow all her money? She must make millions from the show!"  I believe that's probably the reaction most people have about all people on TV.  They must be making loads of money on this.  So, I decided to look into it.

The Real Housewives:  On average they make anywhere from $50k to $100k per episode per season.  Within an 11 episode season, that can be $550k to $1.1 Million.  Certainly not chump change.  Not included in this is the likely additional $50k for season wrap-up and possible premiere party.  So, the cast member are not hurting.  However, let's look into what makes this show popular:  The Lavish Lifestyle.  So, I calculated the average home price in Beverly Hills (from Zillow) sold in past 30 days to be $4,667,300 for a 4 Bed, 4 Bath home.  It's a rough estimate and likely low but gives us a baseline.  Total principal, interest, taxes, and insurance payment would $25,782 a month, or $309,384 for the year, which if the cast member was making $100k an ep would equal 28% of gross income.  Right at the standard.  Now, housing is only part of the equation as the daily catered lunch parties and shopping trips have not been calculated.  So, while the cast members certainly make a pretty penny, they are not set for life based upon the lifestyle.

Teen Moms:  On average, the Teen Moms make $60k per season.  Again, a very nice salary for doing nothing (not demeaning labor or child care).  However, these individuals are as the show title suggests, only teenagers.  They have no college education and most have no high school equivalency.  Plus, they have a baby to care for and provide for.  So, a one-time lottery winning of $60k will definitely help, but in the long-run is a blip on the radar for these girls.

Sister Wives:  This was hard to find but a found an unverified amount of $75k per adult per season.  So, with 5 adults, that equates to $375k per season.  It's noted that this family lives a relatively modest lifestyle compared to the previous examples, but feeding 16 or so kids will obviously take a toll.  I haven't seen any of the adults work, but perhaps they also earn some supplementary income to help support the family.  Again, that would be a major difference compared to first examples.

Lastly, The Jersey Shore:  This is the outlier.  In Season 2, the cast members made $10k per episode.  In a 13 episode season, that was $130k to party and have a good time.  Ironically, the Jersey members are the outliers because of how they have been able to stretch their "brand".  They have almost all signed endorsement deals, spin-offs, or appearance fees.  They used the TV show to become celebrities and then capitalize on that. 

The Shore is the main reason people get into reality TV.  The oppurtunity to become a celebrity.  However, it's this 15 minutes that keeps the person coming back and trying to keep the fame going.  For example, Kate Gosselin's 15 minutes are up.  Her kids are adorable and they've experienced things they never would have if not for TV.  However, it also ruined her marriage and got them accustomed to a lifestyle that was unsustainable.  I have no doubt she is trying to set her kids up for life, however, it's a harsh "reality" to go through.  She has to become normal like the rest of us.  Perhaps, that's the problem with reality TV.  It's no more a reality than your average sitcom.  People on TV are portraying themselves as they want others to perceive them.  Eventually, the cameras will stop and money will not come.  Too many of these contestants are not prepared for the immediate success of the show and the immediate fall from it.

It's entertainment.

Wednesday, May 23, 2012

Educational Degrees of Separation

It's funny how the value of an education can be so different for different people.  Take the following three examples:

Sibling A:  Graduated from a superior University with a Bachelor's in Science and then went and got a PhD from a highly regarded research facility.  Wrote a post-doctorate thesis that had a title longer than some books I've read!  He is living a extremely happy life in Utah researching and doing what he loves.  He earns $40k a year.

Sibling B:  Graduated from the same University with a Bachelor's in History and Psychology, then received a Master's in Education.  Currently working as a teacher in the inner-city charter school system making $49k.

Sibling C:  Graduated from the same University with a Bachelor's of Arts degree.  He decided to forego Graduate or Law School and is entering the business environment as a Consultant.  He'll be making $60k.

It's interesting that the most educationally regarded, is earning the least, while the least educated will be earnign the most.  Obviously, the chosen professional work has a lot to do with it as consultants are well paid for lifestyle they lead.  Research professionals are not paid as much unless they find the cure the cancer.  I just think it's this is an interesting look at what society values and what we should be thinking about as National Student Loan Debt approaches or passes $1 Trillion.

Luckily, the siblings in this example graduated debt free, so they were able to think about their careers and the life that would provide the most enjoyment.  However, many people do not have this luxury.  Which is why I think that it is important to talk about a career after college with kids.  It may be tough for a 18 or 19 year old person to think about the rest of their life, but it's irresponsible for a child to take out $50k to $100k loans just to go to college, receive a philosophy degree and then have ZERO idea what to do afterwards.  As much as college has become the next step for nearly every student, Americans need to stop treating it as a 4 year vacation from the real world and bring it back to real preparation for a future.

I hope to be able to pay for my kids college education, but I'm not sure I'm willing to pay for them unless they are willing to work for it and have a life path.  College is fun and should be enjoyed - but the preparation must be there or it's a wasted investment.  Did I get an Accounting degree because I love it?  No.  I knew that a job would be waiting for me and it provided an entrance into the business environment I both enjoyed and did well in.  It would have been foolish of me to graduate with a Math degree even though I've always excelled in Math classes throughout my life.  What substance would that have provided? 

Friday, May 18, 2012

Value of Compounding Interest

I started the Finance portion of my MBA Degree last week.  After sitting through 8 classes of Marketing, Economics, Human Resources, and other pre-requisites, I finally had the necessary requirements to sit for Financial Management.  Finance is the most popular concentration in the MBA program - however, in order to take ANY other Finance related course, the introductory course was required.  So, as frustrating as it was to wait 4 semesters, I'm glad I can finally concentrate on this area and not have to worry about Leadership qualities or Marketing decisions.

To get started - the course started with a discussion on Discounted Cash Flows.  Basically, for anyone not familiar with the idea, the calculations necessary to determine how much money you should invest NOW, to have a specified amount in the future.  For example:  I'd like to pay for my kid's college.  If I estimate that I need at least $100,000 (probably light based upon tuition increase rates), how much should I set aside each year for the next 20 years to have $100,000.

The idea centers around a common investing mantra:  A penny saved is a penny earned.  So, obviously, I do not need to invest $100,000 over 20 years to achieve that amount.  In actuality, if I assume a 5% annual return on my investments (it seems crazy in current market volatility, but its actually pretty conservative), I would only need to invest $37,688.95 today to have $100,000 twenty years from now! 

That's insane.  That's the value of compounding interest!

I truly believe that most Americans have no clue what I just talked about.  That's really where the problem with debt and savings come from (aside from the refusal to live below our means).  The general public does not understand that you can make money off of money made!  The $37,688 investment will grow at 5% a year up to $100,000.  It takes time and patience, but the money will be there.  That's why it's so depressing that 49% of Americans are not saving for retirement.  EVERY LITTLE BIT COUNTS!  $200 a month for 30 years will turn into - $159,453.23!!  $20 a month still earns $15,945.32!

It's incredible to me.  With social security likely to be non-existent in 30 years - not taking advantage of 401(k), IRA, or personal investment accounts is just stupid.  I realize times are tough and some people struggle to find an extra $20 a month - however, if your life was on the line, would you be able to give up that iPhone?  I'd like to think so.

Thursday, May 17, 2012

Life's Little Roadblocks

So, I mentioned earlier that the Professor and I sold her car a few weeks ago.  Well, the pain of being a single car family and sharing a car for the first time in our adult lives has reared its ugly head.

First, on Sunday, we celebrated Mother's Day with BOTH mothers and families at my parents home.  A gerat idea and saved us from having to drive back and forth for dinner/dessert (the pain of Professor being the only child in the area).  However, my father and brothers asked me to go golfing in the early afternoon.  So, I drove out to PTHS and back home, then back towards VBCC and almost drove home to pick up my wife and return.  A lot of driving.  Professor's parents were gracious to pick her up and bring her to my parents in order to save one trip, but still an inconvenience to be dependent on someone else.

Then on Tuesday evening, while I'm on the bus to class, the Professor calls and tells me that she walked outside to flat tire on our Sonata!  So, her planned trip to yoga had to be cancelled as she waited for AAA and then had to take it to NTB.  Again, a major annoyance to be stuck because of only having one car.  Now, if we had two cars we could not have avoided the cost of the tire or the trip to NTB, but it could have been done on our time, and lessesed the inconvenience.

Sidebar:  Tires are expensive.  I've now purchased two new tires in less than a month and it just amazes me how pricey they can get.  I'm scared to think what the cost will be once we purchase a SVU later this year.  I'm thinking $200 minimum for one tire.  Good thing I have plenty of buffer built in around our budget - these one time expenses killed the car savings this month, but won't put us in a hole!

The Professor is also very savvy.  She complained about blowing out 3 tires in less than a year and received a $30 discount on the tire!!  They won't take advantage of that blonde again!!

Anyway, we both knew only having one car could create some headaches as we adjusted to it.  We'll both have to plan things well and be mindful of the other person.  Like, in two weeks, I know that Professor needs the car all day to take her National Boards!!  I'm already thinking of house projects I need to get to (light fixtures anyone?).  However, the savings will definitely be worth it when we purchase the Professor's new SVU and don't have to worry about crazy interest payments!  Car payments are not "good" debt.  The value of the car will NEVER increase and always decreases throughout the life of the car.

Tuesday, May 15, 2012

Payment Cycles

The professor made a comment a couple of weeks ago that has stuck with me for some time.  To paraphrase because I don't remember it exactly, "my first paycheck goes to credit card debt and my second is saving for a car!".  Now, generally, I'm excited that she recognizes the value in saving for a car she wants and being able to pay it off.  However, something else about the comment has bothered me.

That every paycheck has a purpose before it is even earned!  Debt.

It got me thinking about my payment cycle and how things get paid.  Almost all of our payments come due either the last week of the month or the first week of the following month.  So, there is a two week flurry in which we see massive debt paydown and bank transactions going on.  It is got me thinking though because it basically means (based upon my bi-weekly payment cycle) that my first paycheck each month goes to the credit card bill and utilities and my second goes to mortgage and student loans.  As the professor has already said, her first goes to Home Depot and her second goes to a car payment (future).

That sucks.  We work hard and make decent money.  It's kind of depressing to know a month in advance where my dollar are going and there's nothing I can do about it.  Perhaps I've mentioned it before and I know we could reduce our credit card bill and get some relief, but we've already done that and this past month there were extenuating circumstances (Charity donation, Medical Deductibles, Car tires). 

Ultimately, it goes back to the goal of being debt free.  We could free up $2,500 a month without any debt.  That's more money for a bigger house, bigger retirement, and bigger giving!!

It's probably also my fault that I refuse to touch our investments or other savings.  We could wipe-out all our debts right now if we chose to, but don't need to.  So, we're living paycheck-to-paycheck (in a manner of speaking).

June is a 3 paycheck month!!!  Booya!  The little things.  Life's a journey and building that paycheck is the drive I need. 

Thursday, May 10, 2012

Side Hustle #1

I started a business.

On Sunday, I met a small group of 14 year old men at a High School for the first Speed & Agility Session.  I've known these boys since they were in 4th grade and now I'm helping them prepare for High School next year.

I created a 12 week program that introduces stretching, agility, and speed techniques to these young men.  For the time and efforts, I'm charging each participant $25/session or $250/year.  I had 6 young men come to the first session and the parents were very enthusiastic and expressed the possibility of more coming.
I don't own any certificates or degrees in Sports/Athletic Training, but I have done just about every workout in the book and have forgotten more exercises than most people have ever done.  Besides, I genuinely want to help these kids.  I am charging the parents because of the time it is taking away from my wife and the commitment that is needed.  Besides, I've made this unassociated from the elementary school so that it does not look like any conflict to my coaching.  At some point, I need to make more money to help bring down the Student Loan Debt and build more savings.  If I can do it helping kids I know and have experience with, it makes sense.

The price isn't outrageous, but it will definitely help our finances.  I've always said that the community of St. Louise is full of very successful people and I would be an idiot not to utilize them as I build my career.  I keep coming back to the school because it provided a great base for my future athletic and educational ability.  Now, I'm in a position to be able to help and maintain strong contacts with very successful people in the area.  It's a Win/Win in my opinion.  I don't think it is any different than my father soliciting parishioners he knows for Fish Fry sponsorships.  I'm actually putting more work in.

So, what to do with the Side Hustle Funds:
1.  Pay Down Student Debt.  30% of all income goes to Student Loans.
2.  Professor's New Car.  30% goes to buy Professor's Dream Car - hopefully can avoid future debt.
3.  Gifts.  Professor's Anniversary Gift.  For Being AWESOME!
4.  Anything left over will go to Home Depot bill.  I hate that debt.  0% interest or not, it's annoying having to pay them $1k a month.

As you can see - I'm not doing this for much fun - I created a hole by going back to school and would like to get out ASAP and BCK (Before Children Comes).

Tuesday, May 8, 2012

A Manly Weekend

Wow.  That was quite a weekend/Monday.  Let's start from the top and review:

Friday:  We sold Prof's (We had our first blog post by Professor last week!) VW Passat on Friday evening!  Finally!!  We met the lovely couple at the AAA center so that if they really wanted the car, we could get the deal done that day and not have another flaker like the divorcee from New Kensington (I knew I didn't like him).  That being said, the car sold for less than I had originally hoped for, but was definitely satisfied with the sales price.  The car was too old for anyone to fork over anything over $5k.  Although the KBB had it slightly over, I can understand why the market priced it a bit lower.  No love loss.  Now, Teach starts dreaming of her Acura!

Saturday:  ROAD TRIP!! The family traveled to Erie for the little brother's graduation ceremony from University.  Hurray!  Get a Job!  I'm been thinking lately about congratulatory gifts!  Teach and I were blessed with great friends and family at the time of our wedding and we love and want to reciprocate it back to them.  When does the giving stop?  Is life just an eternal merry-go-round of cash?  Let's think of all the gifts that social etiquette says we give:

Wedding gift
Housewarming gift
Retirement Present
Birthday Present
Graduation Present (at every level)
Baby Shower
Wedding Shower
New Job
Anniversary Gift

I'm sure there are a lot more.  Now, I've said my goal for living debt free is to be able to give and give to those in need.  However, I'm not sure passing $20 bills back and forth between friends and family counts. 

Sunday:  Started my Side Hustle!  I'll blog about this tomorrow! 

Professor and I also FINALLY installed the backsplash in the kitchen!  We wanted to do it 6 months ago when I installed the tile floor and we had the kitchen updated.  However, life gets in the way and Teach couldn't find a design that she really liked.  With basketball over, school on break, and the design picked - we made our way to Home Depot and gathered up all the materials.

I was very impressed by Prof's enthusiasm and vigor to work and get the project done.  Her level of involvement during the floor tiling and shelf installation was to yell score updates for the game on TV (Steelers and Pirates).  I solved that problem by asking her to bring down a radio!! (Ugh 5-0 loss though).  Anyway, she tackled the job head on and it went really fast with her help!  I'm going to assess the financial damage on the kitchen later this month, but now that it is done - I'm really happy with the results.  Probably could have knocked a wall down and gone big time, but for this house and for us - it's perfect.

Thursday, May 3, 2012

Why I'm Psycho


Ok, other teachers might not be completely psychotic.

But we’re all flirting with it.

psycho_SR_jpg_627x325_crop_upscale_q85.jpg

I, in particular, have noticed a steady decline in my sanity since I’ve begun teaching.  I can’t make friends the way I used to in high school or college.  People I meet for the first time sometimes frown when I’m talking, or tip their heads to the side politely like my dog does when I talk to her through a cardboard tube.  I talk to myself ALL THE TIME-- not just in the car like I used to before I started teaching. I can pretty much cry on command. 

Why has this happened?  My other friends who have begun their career paths have also reported an increase in stress levels since joining the “real world,” but none of them are crazy.  My mom raised three children (one being me, who spent my childhood doing things like drawing elaborate scenes on the underside of our couch cushions with Sharpies) and she’s normal-- even nice.  Barack Obama has a terrible job and he seems to keep it under control.

It’s teaching, my friends.

Reason #1: We are tired.

Have you ever had to give a presentation for school or work?

Do you remember the preparation you had to do for the presentation?  Creating a Powerpoint, doing research, making graphs, charts, handouts.  You had to practice your presentation, think about what you would say, what order you would say it in, etcetera.  You put hours of work into something that might take 30 or 45 minutes, tops.  After you gave your presentation, how did you feel?  Proud, right?  But probably exhausted?  In need of a stiff, celebratory drink?

Teachers give presentations for 8 hours a day.  5 days a week.  And we plan these presentations or grade papers or fill out inane paperwork or answer hundreds of emails or meet with crazy parents for another 10-15 hours on top of that weekly.  Yes, it gets easier with time and practice, but it never gets less tiring.  In fact, the longer I’ve been teaching, the better and more elaborate my ideas get, and the more tired I am.

I’m not trying to get you to create a shrine to teachers in your home or feel sorry for us.  (We know we’re awesome enough on our own without other people’s help.)  I just want you to think twice before judging me for forgetting to undo my seatbelt before getting out of my car in the parking lot at the bank and almost strangling myself. 

We’re tired, and being tired can make people crazy.

Reason #2: We are in complete control for 8 hours a day.

I think this is the main reason I’m psychotic.

After growing out of a frighteningly bossy childhood, I spent the latter part of my teenage years and my time in college being very complacent, warm, and receptive to others’ ideas and concerns.  You would have described me, for the most part, as “laid back.” “Easy going.”  “Johnny-come-lately.”* I was always totally fine with whatever the group wanted to do; more than willing to accommodate those around me. 

“Heck yes I’ll lend you my favorite shoes!”

“Oh, you’re out of bagels?  It’s cool; I’ll have the breakfast tacos.  My other fave!”

“Oh, no worries about the loud music last night, neighbor--  I eventually fell asleep after awhile.”

I am not “laid back” anymore.

First, you have to understand that I have created an environment, my classroom, in which I have complete control.  Over EVERYTHING.  Not only do my students behave impeccably this year, but they know how everything works-- from turning in homework (no wide ruled paper, proper heading, no hearts or abbreviations or emoticons) to asking questions (“Fellow classmate Raul, would you mind moving your head for one moment while I copy the notes on the board?” not “UGH I CAN’T SEE”;  “I’m having trouble understanding,” not “MISS I DON’T GET IT.”)  We even have a system where they ask to use the restroom silently. Everything operates in the most efficient way possible, which allows us to learn in the best way possible.

Then I leave school and enter the world, where I have no control.

It makes me sad.

What do you mean, 5th red light in a row?

What do you mean, “Sold out?”

What do you mean, sassy drugstore employee?

I am not simply annoyed by these things; I become livid.  I find myself saying, “I just don’t understand why _________________.”  It’s usually something to this effect:  “I just don’t understand why (I can’t have my way).”

I have no idea why I was single for all those years!


(This reason also explains why teacher professional development days, particularly ones with old teachers present, are a joke.  These teachers have been in control for 8 hours a day for YEARS-- God help the man or woman trying to tell them what to do or how to do it. It also explains why first-year teachers cannot control a classroom.  See any post from the 2010-2011 school year for proof.)

Reason #3: Our job is violently important.

(I’m on this kick of using “violently” as an adverb ever since I saw The Pioneer Woman use it to describe the movement of her back fat.  That, my friends, is prose.)

Sometimes I think that America forgets that teachers fill young minds with knowledge.   And if America does know that, I’m pretty sure they don’t really get it. 

It would be one thing if we were cranking out burgers or graphic tees or expense reports.  We could meet up with our friends or go to concerts on weeknights.  We could email our friends from our work computers, or take a long lunch, or maybe only put in 75% one day.

But we can’t.  We’re creating scientists, writers, historians, Nobel Prize winners, moms, dads, farmers, executives, counselors and teachers. We’re investing in our students, not as commodities to be shuffled through the conveyor belt, but as individuals with unique visions and gifts. Some of us are putting in 150% to make sure that these people will hopefully leave the world a little better than they found it.

That kind of effort and pressure would make anyone a raging lunatic.

But it’s something worth being crazy about.

Love,
Professor

Wednesday, May 2, 2012

May Challenge

The April Challenge was a HUGE success.  I made it the entire month without going out to eat lunch!  I even brought my packed lunch to the Chinese Take-In Group!  Overall, I think it was a great experience and really made me evaluate my grocery shopping and my needs.  I've packed the first couple days of May as well, so the trend continues.

The Challenge:  No Beer in May!  We're gonna pick it up a NOTCH!! BAM!!  I'm trying to think of better name, but, for now, I'm going to try and go the entire month without drinking beer.  I don't drink a lot of beer, but I've definitely gotten into a habit of having a beer or two on weeknights while watching TV, or enjoying one or 5 too many on the weekends.  So, in May, I'll be sticking to my other fave, Bourbon.

Obviously, this isn't much of a Financial challenge, but a personal one.  It's about living a healthier lifestyle and getting back into shape.  I worry about the old man gut (aka: beer gut) developing as I approach 30.  I'm still two years away, but, there's no reason I can't start now.  I may have to call Tony Horton and rejoin the P90X gym soon.

The Penalty:  For every beer I drink, I owe the Guilty Jar $2.  It's less than last month's penalty, only because the Challenge is longer and more challenging since it's everyday and not just work days.

I'll miss my old friend Sam Adams, but I'm looking forward to being more Mad Men-ish with my bourbon!

Coach


Tuesday, May 1, 2012

April Net Worth Review

It's been one month since we've taken a 5,000 ft fly-by of our financial progress.  So, let's review:

Cash - $26,095  (-$2,894)
Investments - $71,072 (+$5,540)
Home Value - $180,000 ($0)
Personal Assets - $28,250 (-$500)
Less: Liabilities - $175,410 (+$155)

Here's how it breaks down:

Assets -
Cash - A small decrease in cash as we made our annual IRA Contribution this year.  So, the decrease was expected.  To be honest, I expected worse since we made a $4,730 deduction in cash to make the contribution.  Otherwise, there weren't any real changes to Cash and the Car savings keep growing!

Investments - A nice increase to the retirement accounts this past month has helped ride out a down market in April 2012.  The IRA Contribution and 401(k) and 403(b) contributions easily canceled out a small percentage decrease in the markets.  I was very happy to see this because I had doubts because of all the doom and gloom in the Dow and S&P.  I guess this is a good lesson that by making consistent contributions beats the guessing game any day.  That being said, our II-VI stock performed horribly in April as it fell (13.7%) in April due to Q3 earnings release.  I expect better from them in the future.

Personal Assets - No major changes to our personal assets.  The house across the street with the exact same lay-out sold for $205k in April.  So, with the kitchen upgrades, the $180k is fair for now.  I reduced the value of the Prof's Passat because it looks like the Craigslist sales price will be between $4500 and $5000.  I had hoped for more, but being as old as it is has people hesitant to go above the $5k mark.

Liabilities -
Mortgage - $131,706 - Ugh.  Small incremental change.

Student Loans - $36,786 - 1 $500 payment at a time.  I did get my Undergrad loans to consolidate with graduate loans at a lower rate.  So, that's down to 1.5% - which is awesome.

Home Depot Credit Card - $5,770 - We bought a carpet for the bedroom, however, still on track to pay this down.

Anniversary Gift - I purchased a gift for the Professor for our Anniversary/Birthday.  It's pretty expensive and since its not July yet, I only put a down payment on it to hold it until closer to the real day.  So, I owe additional funds there.  This should be gone soon.

Total Joint Net Worth - $130,007!!

To be honest, I was shocked when I saw the amount of growth.  I'd been very apprehensive the last week about our finances due to all the charity events and unusual items that popped up (Medical insurance drives me crazy).  However, it was nice to see that without really changing anything, we were able to improve our Worth by $3k.  It's not great, but it's growth. 

I start my first side hustle job this coming weekend.  So, there should be further increase to the NW next month as I've already dedicated money towards Student Loans and Savings.