Stacking Pennies . . .

This is a money making trick that doesn't work except in a very special circumstance--negotiating a job offer.

I'm in the process of relocating to California, primarily for personal reasons. I had an interview last week and received the official offer today. My current salary in a low cost of living midwestern city is about 56k. I was offered 65k to move to California (plus relocation costs!). I was excited to get the offer, but I immediately asked if that was negotiable. I had anticipated an offer in the 70-75k range. (Some random cost of living calculator states: To maintain the same standard of living, your salary of $56,000 in XXXX should increase to $103,122 in XXXXX, California. I think that is a bit high, and certainly less than I would expect them to offer me, but at least, a point of reference.)

The HR rep seemed surprised (which surprised me!), and said something like "Well, it is a 15% percent increase, but if you have justification, I can talk to the hiring manager."

Luckily, I wasn't negotiating for the sake of negotiating--I had my reasons ready to go:

• The position is typically entry level, I have 1.5 years of directly related experience and am on the verge of a raise/promotion at the end of the year
• I am 1/3 of the way done with my Masters Degree
• I already have my security clearance (something that costs them several thousand to get!)
• The cost of living is significantly different

The HR lady then called the hiring manager, and then called me back about 10 minutes later. She only could offer me an increase of salary to 67k, but they would throw in a 3k signing bonus. She reminded me that performance reviews happen early in the year, and that there would be tuition reimbursement.

The offer is much more attractive. I got enough money to fully fund a 2008 Roth IRA, just by listing a few reasons.

I have a phone interview tomorrow with another company for a different type of position. I think that the offer I already have seems like a more appealing job, but I want to see what this other position really entails.

This is the first time I've negotiated salary, and I'm quite proud of myself!

I haven't written a post at all this month. I thought I would have more time for this, but I haven't been making it a priority. I just finished writing an extensive entry on student loans for JD at Get Rich Slowly. It was very rewarding, and reminded me of why I started this blog in the first place.

I still am not sure if I will meet my year end money goals. If I don't, I'm not incredibly worried, because I still made a TON of progress this year. Since I graduated in May 2006, I've mostly been setting up the foundation of a good financial future. I am still in the beginning stages, and I've started to think about what might come next. Long term goals have eluded me, but once the foundation is built, I want to have a plan for what do to next.

First, I would like to max out my 401k. This year my personal contributions will be roughly $8,000, far short of the allowed $15,500. Next year, I should be relocated to a higher cost of living area. Ironically, I believe that will allow me to save more of my income, because I plan to leave the percentages the same. This also will mean my employer match will be higher. Still, it may take a couple years before maxing out my 401k and my Roth concurrently is possible.

Second, I'd like to start saving for a house downpayment. This is very much a long term goal. I don't expect to be purchasing for five years, maybe more. Someday though, I would like a house, and I would like to be prepared for it.

Last, I'd like to start out a non-retirement investment account. This won't be for "play" money, but for building wealth that I can access before I reach retirement age.

I can't make much progress on these goals while still building an efund, paying student loans, and saving up for a car, but it is nice to look and see what is on the horizon.

Sasha

Throughout my life, my sense of where I fit in financially has teeter tottered.

The early years
When I was young, we lived in a trailer court. Am I embarrassed of this? It depends. Some people really do look down on it, so I don't advertise that fact until I know a bit about a person's perspectives. As I get older, it seems to matter less.

I remember two things about the trailer court. First, I remember playing in our yard. We lived on a dead end street at the end of the lot, and my Dad was allowed to use whatever land he wanted to mow. So we had a huge yard with a homemade swing set, a sandbox, and a nice hill for our slip and slide. I remember the day my dad mowed his name in huge letters in the yard. We were delighted.

The other thing I remember is when a naked man was running through the trailer park. I don't specifically remember seeing him, I don't remember why he was running, why he was naked. But I do remember my dad taking him inside our trailer, giving him a shirt and some pants, and helping him on his way. He worked at a golf course and gave my dad free rounds after that.

When I was in third grade, we moved to the house my parents live in now. It is a big house, probably bigger than we needed, in a new development. They did a lot of the work themselves (my dad and his friends). For the rest of grade school and jr. high, I never felt that I lived in a somewhere "less" than my friends.

High school
I transfered to a private high school in ninth grade, and the insecurities were back. We had enough money, but definitely less than my classmates. I didn't have a nice car. Our house was less impressive than many others. Several of my classmates had pools (a big luxury in a northern midwest state!), everyone shopped at Abercrombie, and people had a lot of nice stuff.

Still, my parents didn't seem to deprive us. I almost wish they did, for their sake. We did have crappy cars, but were allowed to buy brand name clothes. My parents paid for a trip to Germany, not to mention the tuition for school (though there was a discount because my dad did some electrical work for them). Even though we had less than others, we still had enough.

The scary years
During this time, my dad borrowed a healthy sum of money to start his own electrical business. I still am not clear on the details, but it didn't work out as well as planned. There were some issues with him not getting paid for a large job, some issues with the person who lent him the money, and... well, starting a small business is hard. I'm not sure it was planned out very well. It was hard times, but I wasn't aware of it until a little later on. It ended with my parents working with someone to file a Chapter 13 bankruptcy. They got to keep their possessions, but had to pay a lot of money back to the creditors. I think the payments were something like 3000 a month for 5 or 7 years. My dad became responsible for those payments, and my mom paid the rest of the bills.

Surprisingly, I don't remember there being major cutbacks in my life. We continued to drive falling apart cars, but everything else seemed to go stay the same. Still, it was a scary time for me. Every so often, my dad would fall behind on the payments, and someone would come to our house with a certified letter. I must have opened one once, because I somehow knew they said something like "pay now, or we will be forced to reconsider this repayment plan." More than once, I cried about this, even once I was in college and not relying on them. I was scared for their sake and couldn't understand how they could have let this happen.

But they made it through, making their last payment sometime last year. It actually helped me out a lot, surprisingly. Because they were paying so much money towards the debt, I was able to qualify for actual GRANTS for my college for several years. Free money that I never had to pay back!! So, if you can't help your kids pay for college, consider going bankrupt right as they are entering. (No seriously, don't.)

The split
During college, you start to separate from your parents both emotionally and financially. They generously helped me get a decent car (about 3k from them and 1k from me), paid my car insurance and repairs, health insurance and helped out with some minor expenses on occasion. After living on my own for several years, they let me stay at home rent from for a few semesters so I could save money. But for everything else, I was on my own.

After graduation, the difference was even more marked. I'm completely financially independent from them. Now, I feel very "rich", even though I only have about 8k net worth. The feeling comes from knowing I'm doing the right things with my money and knowing my future looks bright. To me, feeling poor means being scared about money. I don't think I'll ever feel "poor" again.

As for my parents, they are doing pretty well these days, I think. I worry about their retirement. The bankruptcy involved an IRA rollover (I know this only because it affected my financial aid), and I know my dad has no retirement accounts as of today. He does have a pension plan through his union, but he also hasn't worked for the union regularly for about 10 years! I asked him about it, cautiously, and he said his house was his retirement. I commented I wasn't sure about that plan, but let the subject drop. I would assume my mom is still contributing to some sort of retirement plan, but I'm not sure of it. I hope to bring it up with them one of these days, but it is a hard step to take.

I don't think I was ever poor in the true sense of the word, but I don't feel that I was exceptionally privileged either.

This months goals are pretty basic, nothing fancy, but will still require some good hard savings.

1. Continue 401k and Roth contributions

2. Limit groceries to $30/wk and restaurants to $75

3. Contribute $400 to student loan payback account

4. Contribute $1000 to HYSA

5. Finish writing post about student loans I volunteered to do for for Get Rich Slowly.

September Goal Results

• Continue 13% 401k and 100 to Roth IRA

I actually upped it to 15%. Why? Because it is money I can't touch, and I really want it to grow.

• Replenish travel fund with $100 (and likely, drain it again to buy a ticket to LA for october)

I did contribute 50 to it, then bought my plane ticket.

• Contribute 450 to student loan payback account

I was able to contribute 500.

• Contribute 875 to HYSA (275 more than autodeposits... slighlty cheating since i expect some of that to come out of todays paycheck)

Well. I am certain this didn't happen. There has been a change in the way I use my HYSA, but the balance has only increased by about $200. Ouch. It was a big spending month, unfortunately.

• Spend less than 100 on restaurants and less than 30/week on grocery.

YAY, this one I managed. Restaurant was about 90, and grocery was right on track. I'm going to move restaurants down even more next month.

• Finish and send in grad school application, stay up to date in class

Grad school application has been submitted, I'm a little behind in class, but will but up to date by Monday.

I really wasn't that sucessful this month. I had some unplanned spending (new camera, car repairs) and some expensive planned spending (plane ticket) and bought some clothes at Gap Outlet. On the plus side, I sold about $100 worth of book (mainly, a $70 textbook) on Amazon, so that balanced things a teeny bit. But still, let's hope for a much better October!

I sold a few things that were only cluttering my life on Amazon and earned almost $40 (after fees). Not too impressive, but then again, $40 I didn't have before! I also sold some clothes to a consignment shop, but they only took 4 things and paid me $20. Again, it is money I didn't have before, even though the amount isn't all that impressive.

It is fun earning extra money, even though it is on things I once paid much more for.

In downfalls, I spent about $100 at Gap outlet this past weekend, not to mention a few birthday gifts I had to purchase. Still, my net worth is growing each month, so I'm doing something right.

I increased my 401k contributions from 13% to 15%, with the understanding I probably won't meet my savings goals for my regular accounts. Depending on the year end bonus, which I hope to be around 3k after taxes. It might be wishful thinking, but that would really be a good boost to close out the year.

My current task is figuring out auto insurance... I'm being kicked off my parents plan!

As briefly mentioned in my last post, I signed up for a photography class, once a week for 2 hours for the next 8 weeks. My $200 point and shoot camera is most likely the least expensive in the class. If I ever get seriously into photography, I will need an SLR, but I specifically chose a nice pocket sized camera because once I'm done with the class, it'll fit best into my life. The class only cost $60, quite a bargain.

The guy standing next to me told me I will be able to buy myself a nice new camera with my Christmas bonus. My savings goals have been derailed by some unexpected expenses, so it is unlikely I will splurge on a $500-$700 camera, especially since I'm really just an amateur.

There is nothing wrong with spending that much on a beloved hobby, but I was shocked at the number of people with really NICE cameras and no idea how to use them. The instructor asked if we knew how to control the fstops, and a lady with one of the nicest cameras claimed she had no idea. Wow.

Between work and graduate classes, I don't have that much time for hobbies. My most expensive "hobby" is traveling, but I don't spend time doing it regularly, so it may not qualify as a hobby. Perhaps it is simply a passion. I also enjoy writing and personal finance, two very frugal hobbies! I enjoy reading, which can be frugal when I don't insist on owning the books.

I also claim that cooking is a hobby, but I can be quite a wreck at it! I tried to make instant oatlmeal (with flaxseed, perhaps that was the issue?) in the microwave, walked away, and came back to find this:
What a way to start a day. (But, I did eat what was left in the bowl, and it was just fine.)

This is a money making trick that doesn't work except in a very special circumstance--negotiating a job offer.

I'm in the process of relocating to California, primarily for personal reasons. I had an interview last week and received the official offer today. My current salary in a low cost of living midwestern city is about 56k. I was offered 65k to move to California (plus relocation costs!). I was excited to get the offer, but I immediately asked if that was negotiable. I had anticipated an offer in the 70-75k range. (Some random cost of living calculator states: To maintain the same standard of living, your salary of $56,000 in XXXX should increase to $103,122 in XXXXX, California. I think that is a bit high, and certainly less than I would expect them to offer me, but at least, a point of reference.)

The HR rep seemed surprised (which surprised me!), and said something like "Well, it is a 15% percent increase, but if you have justification, I can talk to the hiring manager."

Luckily, I wasn't negotiating for the sake of negotiating--I had my reasons ready to go:

• The position is typically entry level, I have 1.5 years of directly related experience and am on the verge of a raise/promotion at the end of the year
• I am 1/3 of the way done with my Masters Degree
• I already have my security clearance (something that costs them several thousand to get!)
• The cost of living is significantly different

The HR lady then called the hiring manager, and then called me back about 10 minutes later. She only could offer me an increase of salary to 67k, but they would throw in a 3k signing bonus. She reminded me that performance reviews happen early in the year, and that there would be tuition reimbursement.

The offer is much more attractive. I got enough money to fully fund a 2008 Roth IRA, just by listing a few reasons.

I have a phone interview tomorrow with another company for a different type of position. I think that the offer I already have seems like a more appealing job, but I want to see what this other position really entails.

This is the first time I've negotiated salary, and I'm quite proud of myself!

I haven't written a post at all this month. I thought I would have more time for this, but I haven't been making it a priority. I just finished writing an extensive entry on student loans for JD at Get Rich Slowly. It was very rewarding, and reminded me of why I started this blog in the first place.

I still am not sure if I will meet my year end money goals. If I don't, I'm not incredibly worried, because I still made a TON of progress this year. Since I graduated in May 2006, I've mostly been setting up the foundation of a good financial future. I am still in the beginning stages, and I've started to think about what might come next. Long term goals have eluded me, but once the foundation is built, I want to have a plan for what do to next.

First, I would like to max out my 401k. This year my personal contributions will be roughly $8,000, far short of the allowed $15,500. Next year, I should be relocated to a higher cost of living area. Ironically, I believe that will allow me to save more of my income, because I plan to leave the percentages the same. This also will mean my employer match will be higher. Still, it may take a couple years before maxing out my 401k and my Roth concurrently is possible.

Second, I'd like to start saving for a house downpayment. This is very much a long term goal. I don't expect to be purchasing for five years, maybe more. Someday though, I would like a house, and I would like to be prepared for it.

Last, I'd like to start out a non-retirement investment account. This won't be for "play" money, but for building wealth that I can access before I reach retirement age.

I can't make much progress on these goals while still building an efund, paying student loans, and saving up for a car, but it is nice to look and see what is on the horizon.

Sasha

Throughout my life, my sense of where I fit in financially has teeter tottered.

The early years
When I was young, we lived in a trailer court. Am I embarrassed of this? It depends. Some people really do look down on it, so I don't advertise that fact until I know a bit about a person's perspectives. As I get older, it seems to matter less.

I remember two things about the trailer court. First, I remember playing in our yard. We lived on a dead end street at the end of the lot, and my Dad was allowed to use whatever land he wanted to mow. So we had a huge yard with a homemade swing set, a sandbox, and a nice hill for our slip and slide. I remember the day my dad mowed his name in huge letters in the yard. We were delighted.

The other thing I remember is when a naked man was running through the trailer park. I don't specifically remember seeing him, I don't remember why he was running, why he was naked. But I do remember my dad taking him inside our trailer, giving him a shirt and some pants, and helping him on his way. He worked at a golf course and gave my dad free rounds after that.

When I was in third grade, we moved to the house my parents live in now. It is a big house, probably bigger than we needed, in a new development. They did a lot of the work themselves (my dad and his friends). For the rest of grade school and jr. high, I never felt that I lived in a somewhere "less" than my friends.

High school
I transfered to a private high school in ninth grade, and the insecurities were back. We had enough money, but definitely less than my classmates. I didn't have a nice car. Our house was less impressive than many others. Several of my classmates had pools (a big luxury in a northern midwest state!), everyone shopped at Abercrombie, and people had a lot of nice stuff.

Still, my parents didn't seem to deprive us. I almost wish they did, for their sake. We did have crappy cars, but were allowed to buy brand name clothes. My parents paid for a trip to Germany, not to mention the tuition for school (though there was a discount because my dad did some electrical work for them). Even though we had less than others, we still had enough.

The scary years
During this time, my dad borrowed a healthy sum of money to start his own electrical business. I still am not clear on the details, but it didn't work out as well as planned. There were some issues with him not getting paid for a large job, some issues with the person who lent him the money, and... well, starting a small business is hard. I'm not sure it was planned out very well. It was hard times, but I wasn't aware of it until a little later on. It ended with my parents working with someone to file a Chapter 13 bankruptcy. They got to keep their possessions, but had to pay a lot of money back to the creditors. I think the payments were something like 3000 a month for 5 or 7 years. My dad became responsible for those payments, and my mom paid the rest of the bills.

Surprisingly, I don't remember there being major cutbacks in my life. We continued to drive falling apart cars, but everything else seemed to go stay the same. Still, it was a scary time for me. Every so often, my dad would fall behind on the payments, and someone would come to our house with a certified letter. I must have opened one once, because I somehow knew they said something like "pay now, or we will be forced to reconsider this repayment plan." More than once, I cried about this, even once I was in college and not relying on them. I was scared for their sake and couldn't understand how they could have let this happen.

But they made it through, making their last payment sometime last year. It actually helped me out a lot, surprisingly. Because they were paying so much money towards the debt, I was able to qualify for actual GRANTS for my college for several years. Free money that I never had to pay back!! So, if you can't help your kids pay for college, consider going bankrupt right as they are entering. (No seriously, don't.)

The split
During college, you start to separate from your parents both emotionally and financially. They generously helped me get a decent car (about 3k from them and 1k from me), paid my car insurance and repairs, health insurance and helped out with some minor expenses on occasion. After living on my own for several years, they let me stay at home rent from for a few semesters so I could save money. But for everything else, I was on my own.

After graduation, the difference was even more marked. I'm completely financially independent from them. Now, I feel very "rich", even though I only have about 8k net worth. The feeling comes from knowing I'm doing the right things with my money and knowing my future looks bright. To me, feeling poor means being scared about money. I don't think I'll ever feel "poor" again.

As for my parents, they are doing pretty well these days, I think. I worry about their retirement. The bankruptcy involved an IRA rollover (I know this only because it affected my financial aid), and I know my dad has no retirement accounts as of today. He does have a pension plan through his union, but he also hasn't worked for the union regularly for about 10 years! I asked him about it, cautiously, and he said his house was his retirement. I commented I wasn't sure about that plan, but let the subject drop. I would assume my mom is still contributing to some sort of retirement plan, but I'm not sure of it. I hope to bring it up with them one of these days, but it is a hard step to take.

I don't think I was ever poor in the true sense of the word, but I don't feel that I was exceptionally privileged either.

This months goals are pretty basic, nothing fancy, but will still require some good hard savings.

1. Continue 401k and Roth contributions

2. Limit groceries to $30/wk and restaurants to $75

3. Contribute $400 to student loan payback account

4. Contribute $1000 to HYSA

5. Finish writing post about student loans I volunteered to do for for Get Rich Slowly.

September Goal Results

• Continue 13% 401k and 100 to Roth IRA

I actually upped it to 15%. Why? Because it is money I can't touch, and I really want it to grow.

• Replenish travel fund with $100 (and likely, drain it again to buy a ticket to LA for october)

I did contribute 50 to it, then bought my plane ticket.

• Contribute 450 to student loan payback account

I was able to contribute 500.

• Contribute 875 to HYSA (275 more than autodeposits... slighlty cheating since i expect some of that to come out of todays paycheck)

Well. I am certain this didn't happen. There has been a change in the way I use my HYSA, but the balance has only increased by about $200. Ouch. It was a big spending month, unfortunately.

• Spend less than 100 on restaurants and less than 30/week on grocery.

YAY, this one I managed. Restaurant was about 90, and grocery was right on track. I'm going to move restaurants down even more next month.

• Finish and send in grad school application, stay up to date in class

Grad school application has been submitted, I'm a little behind in class, but will but up to date by Monday.

I really wasn't that sucessful this month. I had some unplanned spending (new camera, car repairs) and some expensive planned spending (plane ticket) and bought some clothes at Gap Outlet. On the plus side, I sold about $100 worth of book (mainly, a $70 textbook) on Amazon, so that balanced things a teeny bit. But still, let's hope for a much better October!

I sold a few things that were only cluttering my life on Amazon and earned almost $40 (after fees). Not too impressive, but then again, $40 I didn't have before! I also sold some clothes to a consignment shop, but they only took 4 things and paid me $20. Again, it is money I didn't have before, even though the amount isn't all that impressive.

It is fun earning extra money, even though it is on things I once paid much more for.

In downfalls, I spent about $100 at Gap outlet this past weekend, not to mention a few birthday gifts I had to purchase. Still, my net worth is growing each month, so I'm doing something right.

I increased my 401k contributions from 13% to 15%, with the understanding I probably won't meet my savings goals for my regular accounts. Depending on the year end bonus, which I hope to be around 3k after taxes. It might be wishful thinking, but that would really be a good boost to close out the year.

My current task is figuring out auto insurance... I'm being kicked off my parents plan!

As briefly mentioned in my last post, I signed up for a photography class, once a week for 2 hours for the next 8 weeks. My $200 point and shoot camera is most likely the least expensive in the class. If I ever get seriously into photography, I will need an SLR, but I specifically chose a nice pocket sized camera because once I'm done with the class, it'll fit best into my life. The class only cost $60, quite a bargain.

The guy standing next to me told me I will be able to buy myself a nice new camera with my Christmas bonus. My savings goals have been derailed by some unexpected expenses, so it is unlikely I will splurge on a $500-$700 camera, especially since I'm really just an amateur.

There is nothing wrong with spending that much on a beloved hobby, but I was shocked at the number of people with really NICE cameras and no idea how to use them. The instructor asked if we knew how to control the fstops, and a lady with one of the nicest cameras claimed she had no idea. Wow.

Between work and graduate classes, I don't have that much time for hobbies. My most expensive "hobby" is traveling, but I don't spend time doing it regularly, so it may not qualify as a hobby. Perhaps it is simply a passion. I also enjoy writing and personal finance, two very frugal hobbies! I enjoy reading, which can be frugal when I don't insist on owning the books.

I also claim that cooking is a hobby, but I can be quite a wreck at it! I tried to make instant oatlmeal (with flaxseed, perhaps that was the issue?) in the microwave, walked away, and came back to find this:
What a way to start a day. (But, I did eat what was left in the bowl, and it was just fine.)

This is a money making trick that doesn't work except in a very special circumstance--negotiating a job offer.

I'm in the process of relocating to California, primarily for personal reasons. I had an interview last week and received the official offer today. My current salary in a low cost of living midwestern city is about 56k. I was offered 65k to move to California (plus relocation costs!). I was excited to get the offer, but I immediately asked if that was negotiable. I had anticipated an offer in the 70-75k range. (Some random cost of living calculator states: To maintain the same standard of living, your salary of $56,000 in XXXX should increase to $103,122 in XXXXX, California. I think that is a bit high, and certainly less than I would expect them to offer me, but at least, a point of reference.)

The HR rep seemed surprised (which surprised me!), and said something like "Well, it is a 15% percent increase, but if you have justification, I can talk to the hiring manager."

Luckily, I wasn't negotiating for the sake of negotiating--I had my reasons ready to go:

• The position is typically entry level, I have 1.5 years of directly related experience and am on the verge of a raise/promotion at the end of the year
• I am 1/3 of the way done with my Masters Degree
• I already have my security clearance (something that costs them several thousand to get!)
• The cost of living is significantly different

The HR lady then called the hiring manager, and then called me back about 10 minutes later. She only could offer me an increase of salary to 67k, but they would throw in a 3k signing bonus. She reminded me that performance reviews happen early in the year, and that there would be tuition reimbursement.

The offer is much more attractive. I got enough money to fully fund a 2008 Roth IRA, just by listing a few reasons.

I have a phone interview tomorrow with another company for a different type of position. I think that the offer I already have seems like a more appealing job, but I want to see what this other position really entails.

This is the first time I've negotiated salary, and I'm quite proud of myself!

I haven't written a post at all this month. I thought I would have more time for this, but I haven't been making it a priority. I just finished writing an extensive entry on student loans for JD at Get Rich Slowly. It was very rewarding, and reminded me of why I started this blog in the first place.

I still am not sure if I will meet my year end money goals. If I don't, I'm not incredibly worried, because I still made a TON of progress this year. Since I graduated in May 2006, I've mostly been setting up the foundation of a good financial future. I am still in the beginning stages, and I've started to think about what might come next. Long term goals have eluded me, but once the foundation is built, I want to have a plan for what do to next.

First, I would like to max out my 401k. This year my personal contributions will be roughly $8,000, far short of the allowed $15,500. Next year, I should be relocated to a higher cost of living area. Ironically, I believe that will allow me to save more of my income, because I plan to leave the percentages the same. This also will mean my employer match will be higher. Still, it may take a couple years before maxing out my 401k and my Roth concurrently is possible.

Second, I'd like to start saving for a house downpayment. This is very much a long term goal. I don't expect to be purchasing for five years, maybe more. Someday though, I would like a house, and I would like to be prepared for it.

Last, I'd like to start out a non-retirement investment account. This won't be for "play" money, but for building wealth that I can access before I reach retirement age.

I can't make much progress on these goals while still building an efund, paying student loans, and saving up for a car, but it is nice to look and see what is on the horizon.

Sasha

Throughout my life, my sense of where I fit in financially has teeter tottered.

The early years
When I was young, we lived in a trailer court. Am I embarrassed of this? It depends. Some people really do look down on it, so I don't advertise that fact until I know a bit about a person's perspectives. As I get older, it seems to matter less.

I remember two things about the trailer court. First, I remember playing in our yard. We lived on a dead end street at the end of the lot, and my Dad was allowed to use whatever land he wanted to mow. So we had a huge yard with a homemade swing set, a sandbox, and a nice hill for our slip and slide. I remember the day my dad mowed his name in huge letters in the yard. We were delighted.

The other thing I remember is when a naked man was running through the trailer park. I don't specifically remember seeing him, I don't remember why he was running, why he was naked. But I do remember my dad taking him inside our trailer, giving him a shirt and some pants, and helping him on his way. He worked at a golf course and gave my dad free rounds after that.

When I was in third grade, we moved to the house my parents live in now. It is a big house, probably bigger than we needed, in a new development. They did a lot of the work themselves (my dad and his friends). For the rest of grade school and jr. high, I never felt that I lived in a somewhere "less" than my friends.

High school
I transfered to a private high school in ninth grade, and the insecurities were back. We had enough money, but definitely less than my classmates. I didn't have a nice car. Our house was less impressive than many others. Several of my classmates had pools (a big luxury in a northern midwest state!), everyone shopped at Abercrombie, and people had a lot of nice stuff.

Still, my parents didn't seem to deprive us. I almost wish they did, for their sake. We did have crappy cars, but were allowed to buy brand name clothes. My parents paid for a trip to Germany, not to mention the tuition for school (though there was a discount because my dad did some electrical work for them). Even though we had less than others, we still had enough.

The scary years
During this time, my dad borrowed a healthy sum of money to start his own electrical business. I still am not clear on the details, but it didn't work out as well as planned. There were some issues with him not getting paid for a large job, some issues with the person who lent him the money, and... well, starting a small business is hard. I'm not sure it was planned out very well. It was hard times, but I wasn't aware of it until a little later on. It ended with my parents working with someone to file a Chapter 13 bankruptcy. They got to keep their possessions, but had to pay a lot of money back to the creditors. I think the payments were something like 3000 a month for 5 or 7 years. My dad became responsible for those payments, and my mom paid the rest of the bills.

Surprisingly, I don't remember there being major cutbacks in my life. We continued to drive falling apart cars, but everything else seemed to go stay the same. Still, it was a scary time for me. Every so often, my dad would fall behind on the payments, and someone would come to our house with a certified letter. I must have opened one once, because I somehow knew they said something like "pay now, or we will be forced to reconsider this repayment plan." More than once, I cried about this, even once I was in college and not relying on them. I was scared for their sake and couldn't understand how they could have let this happen.

But they made it through, making their last payment sometime last year. It actually helped me out a lot, surprisingly. Because they were paying so much money towards the debt, I was able to qualify for actual GRANTS for my college for several years. Free money that I never had to pay back!! So, if you can't help your kids pay for college, consider going bankrupt right as they are entering. (No seriously, don't.)

The split
During college, you start to separate from your parents both emotionally and financially. They generously helped me get a decent car (about 3k from them and 1k from me), paid my car insurance and repairs, health insurance and helped out with some minor expenses on occasion. After living on my own for several years, they let me stay at home rent from for a few semesters so I could save money. But for everything else, I was on my own.

After graduation, the difference was even more marked. I'm completely financially independent from them. Now, I feel very "rich", even though I only have about 8k net worth. The feeling comes from knowing I'm doing the right things with my money and knowing my future looks bright. To me, feeling poor means being scared about money. I don't think I'll ever feel "poor" again.

As for my parents, they are doing pretty well these days, I think. I worry about their retirement. The bankruptcy involved an IRA rollover (I know this only because it affected my financial aid), and I know my dad has no retirement accounts as of today. He does have a pension plan through his union, but he also hasn't worked for the union regularly for about 10 years! I asked him about it, cautiously, and he said his house was his retirement. I commented I wasn't sure about that plan, but let the subject drop. I would assume my mom is still contributing to some sort of retirement plan, but I'm not sure of it. I hope to bring it up with them one of these days, but it is a hard step to take.

I don't think I was ever poor in the true sense of the word, but I don't feel that I was exceptionally privileged either.

This months goals are pretty basic, nothing fancy, but will still require some good hard savings.

1. Continue 401k and Roth contributions

2. Limit groceries to $30/wk and restaurants to $75

3. Contribute $400 to student loan payback account

4. Contribute $1000 to HYSA

5. Finish writing post about student loans I volunteered to do for for Get Rich Slowly.

September Goal Results

• Continue 13% 401k and 100 to Roth IRA

I actually upped it to 15%. Why? Because it is money I can't touch, and I really want it to grow.

• Replenish travel fund with $100 (and likely, drain it again to buy a ticket to LA for october)

I did contribute 50 to it, then bought my plane ticket.

• Contribute 450 to student loan payback account

I was able to contribute 500.

• Contribute 875 to HYSA (275 more than autodeposits... slighlty cheating since i expect some of that to come out of todays paycheck)

Well. I am certain this didn't happen. There has been a change in the way I use my HYSA, but the balance has only increased by about $200. Ouch. It was a big spending month, unfortunately.

• Spend less than 100 on restaurants and less than 30/week on grocery.

YAY, this one I managed. Restaurant was about 90, and grocery was right on track. I'm going to move restaurants down even more next month.

• Finish and send in grad school application, stay up to date in class

Grad school application has been submitted, I'm a little behind in class, but will but up to date by Monday.

I really wasn't that sucessful this month. I had some unplanned spending (new camera, car repairs) and some expensive planned spending (plane ticket) and bought some clothes at Gap Outlet. On the plus side, I sold about $100 worth of book (mainly, a $70 textbook) on Amazon, so that balanced things a teeny bit. But still, let's hope for a much better October!

I sold a few things that were only cluttering my life on Amazon and earned almost $40 (after fees). Not too impressive, but then again, $40 I didn't have before! I also sold some clothes to a consignment shop, but they only took 4 things and paid me $20. Again, it is money I didn't have before, even though the amount isn't all that impressive.

It is fun earning extra money, even though it is on things I once paid much more for.

In downfalls, I spent about $100 at Gap outlet this past weekend, not to mention a few birthday gifts I had to purchase. Still, my net worth is growing each month, so I'm doing something right.

I increased my 401k contributions from 13% to 15%, with the understanding I probably won't meet my savings goals for my regular accounts. Depending on the year end bonus, which I hope to be around 3k after taxes. It might be wishful thinking, but that would really be a good boost to close out the year.

My current task is figuring out auto insurance... I'm being kicked off my parents plan!

As briefly mentioned in my last post, I signed up for a photography class, once a week for 2 hours for the next 8 weeks. My $200 point and shoot camera is most likely the least expensive in the class. If I ever get seriously into photography, I will need an SLR, but I specifically chose a nice pocket sized camera because once I'm done with the class, it'll fit best into my life. The class only cost $60, quite a bargain.

The guy standing next to me told me I will be able to buy myself a nice new camera with my Christmas bonus. My savings goals have been derailed by some unexpected expenses, so it is unlikely I will splurge on a $500-$700 camera, especially since I'm really just an amateur.

There is nothing wrong with spending that much on a beloved hobby, but I was shocked at the number of people with really NICE cameras and no idea how to use them. The instructor asked if we knew how to control the fstops, and a lady with one of the nicest cameras claimed she had no idea. Wow.

Between work and graduate classes, I don't have that much time for hobbies. My most expensive "hobby" is traveling, but I don't spend time doing it regularly, so it may not qualify as a hobby. Perhaps it is simply a passion. I also enjoy writing and personal finance, two very frugal hobbies! I enjoy reading, which can be frugal when I don't insist on owning the books.

I also claim that cooking is a hobby, but I can be quite a wreck at it! I tried to make instant oatlmeal (with flaxseed, perhaps that was the issue?) in the microwave, walked away, and came back to find this:
What a way to start a day. (But, I did eat what was left in the bowl, and it was just fine.)

This is a money making trick that doesn't work except in a very special circumstance--negotiating a job offer.

I'm in the process of relocating to California, primarily for personal reasons. I had an interview last week and received the official offer today. My current salary in a low cost of living midwestern city is about 56k. I was offered 65k to move to California (plus relocation costs!). I was excited to get the offer, but I immediately asked if that was negotiable. I had anticipated an offer in the 70-75k range. (Some random cost of living calculator states: To maintain the same standard of living, your salary of $56,000 in XXXX should increase to $103,122 in XXXXX, California. I think that is a bit high, and certainly less than I would expect them to offer me, but at least, a point of reference.)

The HR rep seemed surprised (which surprised me!), and said something like "Well, it is a 15% percent increase, but if you have justification, I can talk to the hiring manager."

Luckily, I wasn't negotiating for the sake of negotiating--I had my reasons ready to go:

• The position is typically entry level, I have 1.5 years of directly related experience and am on the verge of a raise/promotion at the end of the year
• I am 1/3 of the way done with my Masters Degree
• I already have my security clearance (something that costs them several thousand to get!)
• The cost of living is significantly different

The HR lady then called the hiring manager, and then called me back about 10 minutes later. She only could offer me an increase of salary to 67k, but they would throw in a 3k signing bonus. She reminded me that performance reviews happen early in the year, and that there would be tuition reimbursement.

The offer is much more attractive. I got enough money to fully fund a 2008 Roth IRA, just by listing a few reasons.

I have a phone interview tomorrow with another company for a different type of position. I think that the offer I already have seems like a more appealing job, but I want to see what this other position really entails.

This is the first time I've negotiated salary, and I'm quite proud of myself!

I haven't written a post at all this month. I thought I would have more time for this, but I haven't been making it a priority. I just finished writing an extensive entry on student loans for JD at Get Rich Slowly. It was very rewarding, and reminded me of why I started this blog in the first place.

I still am not sure if I will meet my year end money goals. If I don't, I'm not incredibly worried, because I still made a TON of progress this year. Since I graduated in May 2006, I've mostly been setting up the foundation of a good financial future. I am still in the beginning stages, and I've started to think about what might come next. Long term goals have eluded me, but once the foundation is built, I want to have a plan for what do to next.

First, I would like to max out my 401k. This year my personal contributions will be roughly $8,000, far short of the allowed $15,500. Next year, I should be relocated to a higher cost of living area. Ironically, I believe that will allow me to save more of my income, because I plan to leave the percentages the same. This also will mean my employer match will be higher. Still, it may take a couple years before maxing out my 401k and my Roth concurrently is possible.

Second, I'd like to start saving for a house downpayment. This is very much a long term goal. I don't expect to be purchasing for five years, maybe more. Someday though, I would like a house, and I would like to be prepared for it.

Last, I'd like to start out a non-retirement investment account. This won't be for "play" money, but for building wealth that I can access before I reach retirement age.

I can't make much progress on these goals while still building an efund, paying student loans, and saving up for a car, but it is nice to look and see what is on the horizon.

Sasha

Throughout my life, my sense of where I fit in financially has teeter tottered.

The early years
When I was young, we lived in a trailer court. Am I embarrassed of this? It depends. Some people really do look down on it, so I don't advertise that fact until I know a bit about a person's perspectives. As I get older, it seems to matter less.

I remember two things about the trailer court. First, I remember playing in our yard. We lived on a dead end street at the end of the lot, and my Dad was allowed to use whatever land he wanted to mow. So we had a huge yard with a homemade swing set, a sandbox, and a nice hill for our slip and slide. I remember the day my dad mowed his name in huge letters in the yard. We were delighted.

The other thing I remember is when a naked man was running through the trailer park. I don't specifically remember seeing him, I don't remember why he was running, why he was naked. But I do remember my dad taking him inside our trailer, giving him a shirt and some pants, and helping him on his way. He worked at a golf course and gave my dad free rounds after that.

When I was in third grade, we moved to the house my parents live in now. It is a big house, probably bigger than we needed, in a new development. They did a lot of the work themselves (my dad and his friends). For the rest of grade school and jr. high, I never felt that I lived in a somewhere "less" than my friends.

High school
I transfered to a private high school in ninth grade, and the insecurities were back. We had enough money, but definitely less than my classmates. I didn't have a nice car. Our house was less impressive than many others. Several of my classmates had pools (a big luxury in a northern midwest state!), everyone shopped at Abercrombie, and people had a lot of nice stuff.

Still, my parents didn't seem to deprive us. I almost wish they did, for their sake. We did have crappy cars, but were allowed to buy brand name clothes. My parents paid for a trip to Germany, not to mention the tuition for school (though there was a discount because my dad did some electrical work for them). Even though we had less than others, we still had enough.

The scary years
During this time, my dad borrowed a healthy sum of money to start his own electrical business. I still am not clear on the details, but it didn't work out as well as planned. There were some issues with him not getting paid for a large job, some issues with the person who lent him the money, and... well, starting a small business is hard. I'm not sure it was planned out very well. It was hard times, but I wasn't aware of it until a little later on. It ended with my parents working with someone to file a Chapter 13 bankruptcy. They got to keep their possessions, but had to pay a lot of money back to the creditors. I think the payments were something like 3000 a month for 5 or 7 years. My dad became responsible for those payments, and my mom paid the rest of the bills.

Surprisingly, I don't remember there being major cutbacks in my life. We continued to drive falling apart cars, but everything else seemed to go stay the same. Still, it was a scary time for me. Every so often, my dad would fall behind on the payments, and someone would come to our house with a certified letter. I must have opened one once, because I somehow knew they said something like "pay now, or we will be forced to reconsider this repayment plan." More than once, I cried about this, even once I was in college and not relying on them. I was scared for their sake and couldn't understand how they could have let this happen.

But they made it through, making their last payment sometime last year. It actually helped me out a lot, surprisingly. Because they were paying so much money towards the debt, I was able to qualify for actual GRANTS for my college for several years. Free money that I never had to pay back!! So, if you can't help your kids pay for college, consider going bankrupt right as they are entering. (No seriously, don't.)

The split
During college, you start to separate from your parents both emotionally and financially. They generously helped me get a decent car (about 3k from them and 1k from me), paid my car insurance and repairs, health insurance and helped out with some minor expenses on occasion. After living on my own for several years, they let me stay at home rent from for a few semesters so I could save money. But for everything else, I was on my own.

After graduation, the difference was even more marked. I'm completely financially independent from them. Now, I feel very "rich", even though I only have about 8k net worth. The feeling comes from knowing I'm doing the right things with my money and knowing my future looks bright. To me, feeling poor means being scared about money. I don't think I'll ever feel "poor" again.

As for my parents, they are doing pretty well these days, I think. I worry about their retirement. The bankruptcy involved an IRA rollover (I know this only because it affected my financial aid), and I know my dad has no retirement accounts as of today. He does have a pension plan through his union, but he also hasn't worked for the union regularly for about 10 years! I asked him about it, cautiously, and he said his house was his retirement. I commented I wasn't sure about that plan, but let the subject drop. I would assume my mom is still contributing to some sort of retirement plan, but I'm not sure of it. I hope to bring it up with them one of these days, but it is a hard step to take.

I don't think I was ever poor in the true sense of the word, but I don't feel that I was exceptionally privileged either.

This months goals are pretty basic, nothing fancy, but will still require some good hard savings.

1. Continue 401k and Roth contributions

2. Limit groceries to $30/wk and restaurants to $75

3. Contribute $400 to student loan payback account

4. Contribute $1000 to HYSA

5. Finish writing post about student loans I volunteered to do for for Get Rich Slowly.

September Goal Results

• Continue 13% 401k and 100 to Roth IRA

I actually upped it to 15%. Why? Because it is money I can't touch, and I really want it to grow.

• Replenish travel fund with $100 (and likely, drain it again to buy a ticket to LA for october)

I did contribute 50 to it, then bought my plane ticket.

• Contribute 450 to student loan payback account

I was able to contribute 500.

• Contribute 875 to HYSA (275 more than autodeposits... slighlty cheating since i expect some of that to come out of todays paycheck)

Well. I am certain this didn't happen. There has been a change in the way I use my HYSA, but the balance has only increased by about $200. Ouch. It was a big spending month, unfortunately.

• Spend less than 100 on restaurants and less than 30/week on grocery.

YAY, this one I managed. Restaurant was about 90, and grocery was right on track. I'm going to move restaurants down even more next month.

• Finish and send in grad school application, stay up to date in class

Grad school application has been submitted, I'm a little behind in class, but will but up to date by Monday.

I really wasn't that sucessful this month. I had some unplanned spending (new camera, car repairs) and some expensive planned spending (plane ticket) and bought some clothes at Gap Outlet. On the plus side, I sold about $100 worth of book (mainly, a $70 textbook) on Amazon, so that balanced things a teeny bit. But still, let's hope for a much better October!

I sold a few things that were only cluttering my life on Amazon and earned almost $40 (after fees). Not too impressive, but then again, $40 I didn't have before! I also sold some clothes to a consignment shop, but they only took 4 things and paid me $20. Again, it is money I didn't have before, even though the amount isn't all that impressive.

It is fun earning extra money, even though it is on things I once paid much more for.

In downfalls, I spent about $100 at Gap outlet this past weekend, not to mention a few birthday gifts I had to purchase. Still, my net worth is growing each month, so I'm doing something right.

I increased my 401k contributions from 13% to 15%, with the understanding I probably won't meet my savings goals for my regular accounts. Depending on the year end bonus, which I hope to be around 3k after taxes. It might be wishful thinking, but that would really be a good boost to close out the year.

My current task is figuring out auto insurance... I'm being kicked off my parents plan!

As briefly mentioned in my last post, I signed up for a photography class, once a week for 2 hours for the next 8 weeks. My $200 point and shoot camera is most likely the least expensive in the class. If I ever get seriously into photography, I will need an SLR, but I specifically chose a nice pocket sized camera because once I'm done with the class, it'll fit best into my life. The class only cost $60, quite a bargain.

The guy standing next to me told me I will be able to buy myself a nice new camera with my Christmas bonus. My savings goals have been derailed by some unexpected expenses, so it is unlikely I will splurge on a $500-$700 camera, especially since I'm really just an amateur.

There is nothing wrong with spending that much on a beloved hobby, but I was shocked at the number of people with really NICE cameras and no idea how to use them. The instructor asked if we knew how to control the fstops, and a lady with one of the nicest cameras claimed she had no idea. Wow.

Between work and graduate classes, I don't have that much time for hobbies. My most expensive "hobby" is traveling, but I don't spend time doing it regularly, so it may not qualify as a hobby. Perhaps it is simply a passion. I also enjoy writing and personal finance, two very frugal hobbies! I enjoy reading, which can be frugal when I don't insist on owning the books.

I also claim that cooking is a hobby, but I can be quite a wreck at it! I tried to make instant oatlmeal (with flaxseed, perhaps that was the issue?) in the microwave, walked away, and came back to find this:
What a way to start a day. (But, I did eat what was left in the bowl, and it was just fine.)