A Story About Paying Off Debt and the Obstacles Along the Way

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Adjusting The Budget For Summer + Covid Times


Back in February, I shared that I'm trying a new, seasonal approach to budgeting based on our distinct spending habits throughout the year: Boring Season (January - April), when our earnings roughly equal our spending; Bonus Season (May - August), when our income exceeds expenses, thanks in large part to Fortysomething's bonuses; and Celebration Season (September - December), when we budget to accommodate two birthdays, two major holidays, and an anniversary.

I'm not sure this framework will hold up during Covid Times. First of all, we have yet to hear about bonuses, and we expect that even if they do materialize, they'll be a fraction of what they were last year. Second, my institution is now actively discussing furloughs, pay cuts, and layoffs, so will I even have a job by the end of the summer? And if I do, what will my paycheck look like? Third, I don't know what's going to happen with Fortysomething's job, either. 

But I'm making a budget anyway based on the information we have right now. We'll adjust later if we have to.

A few things to note:

(1) Our income has changed now that the Kiddo and I are on Fortysomething's health insurance plan. The damage is not as bad as I'd anticipated because the premiums are a pre-tax deduction. But still, there's less coming in. (I don't explicitly include the health insurance premium in the budget because it comes straight out of the paycheck. I also don't include retirement contributions. Yup, we're still making them.)

(2) Our rent has decreased by $50/month.

(3) We've made some adjustments to our electric bill and subscriptions. We try to limit A/C use, but we know we'll be turning it on periodically now that the weather's getting warmer (I have terrible allergies, so simply opening up the windows for some free cool air isn't always an option). $250/month is probably an overestimate, but I'm leaving some wiggle room there. We've also signed up for a few more subscriptions (e.g., Hulu, Kindle Unlimited) because we're spending more time at home.

(4) The new monthly payment for the refinanced student loan is $366. We'd like to pay more than this, but for now, we'll go with the minimum. We're prioritizing saving over debt repayment.

(5) Although we anticipate bringing in some additional money over the summer, it's hard to know how much that will be. That's why I've put a zero in the "Savings" line below. Fortysomething should (???) receive some sort of bonus at some point this summer. Furthermore, he'll be earning some extra cash through his contract gig. We plan to funnel almost all of the extra earnings into our emergency fund, with the exception of a few treats here and there.

A bit of good news for us: We were able to contribute to the emergency fund in May because our loan refinance meant that we didn't owe anything this month. Payments start back up in June.

What about you? Have you had to make any budgetary adjustments lately? How has Covid affected how you spend and save your money?

May - August Monthly Budget:

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This Is Hard


I wish I could say that I'm adjusting to this whole global pandemic thing, but that would be incorrect.

I am not. I'm not adjusting. If anything, I am becoming less adjusted as it becomes ever clearer that this virus is going to be with us for a long time, along with a tanking economy, abominable leadership, and an increasing death toll.

It's not really the virus itself or the possibility of getting sick that's causing most of my stress. It's the secondary effects of the virus, the waves it's made. For example:

Jobs. I mentioned it in my last post and won't rehash it all here, but like many people, I'm stressed about the stability of my job. Higher education wasn't in great shape before the pandemic, and now it's getting completely pummeled. The virus is taking advantage of all the cracks in the system. My institution is in the process of figuring out what and who to cut. Meanwhile, I'm absolutely terrified about my partner having to return to a classroom full of children in August.

Both of us have been applying for jobs; neither of us has heard anything.

Money. We're saving as much as we can at this point. Fortysomething is starting his annual summertime contract work, and most of those earnings will go into our emergency fund. But we've received no news about his yearly bonus, which is usually announced and set in stone in April. We rely on that extra cash, and this year, we're depending on it to help cover our health insurance premiums. I hope it shows up. If not, I hope the powers that be let us know - and soon - that it's not happening this year.

The thing is, we were feeling absolutely fantastic about our emergency fund a mere three months ago. Now it seems like peanuts.

Relationships. In Karen Thompson Walker's The Age of Miracles, which features a profound global event that bears some resemblance to this one, the protagonist notes, "Later, I would come to think of those first days as the time when we learned as a species that we had worried over the wrong things: the hole in the ozone layer, the melting of the ice caps, West Nile and swine flu and killer bees. But I guess it never is what you worry over that comes to pass in the end. The real catastrophes are always different—unimagined, unprepared for, unknown."

As a professional catastrophizer (someone please start paying me for this thing I've been doing for free my entire life), I've thought a lot about all of the bad things that could happen in the world. It's not like I wasn't aware of the possibility of a global pandemic. But what I hadn't considered - what I think a lot of people, even scientists who study these things, hadn't considered - is the isolation that comes with a new biological threat. During other types of disasters, people can lean on one another. They can visit each other. They can physically comfort one another. But with this, the only thing we know will protect us is keeping our distance from those we care about.

Worse, the confusing government response means that we don't have clear guidance on things like whether we need to wear masks outside the house, whether it's okay to hang out with someone as long as we're more than six feet apart, whether we should cancel our travel plans, whether it's safe to eat a meal outside, etc. etc. etc. And so everyone is basically making their own judgment calls, leaving a lot of room for each of us to question what others are doing. Even amongst my own friends, I see this happening. Maybe it's not an overt thing, but the differences in opinion are threatening relationships that are already under strain because of physical distancing requirements. And that's hard.

Running. All of my races have been canceled. That's a bummer, but I can handle it. What's tougher to handle is the way coronavirus has fundamentally changed how I feel about running.

For me, running has always been more about being outside and getting into a more focused headspace than it has about losing weight or looking a certain way. It's fresh air. It's freedom. It's a chance to challenge myself. For half my life, it's played a key role in my effort to maintain and improve my mental health.

But now the trails are crowded, and the people using them aren't always considerate (I'm looking at you, snot rocketers). Lacing up my shoes feels like preparing to traipse through a minefield. Running used to be my happy place. Now I'm constantly on high alert, and my brain never settles. I know not everyone sees it this way; in fact, some runners are logging more mileage than ever. But for me, this situation has put a serious dent in my trail mojo.

It's like the one thing I could always count on to get me through is no longer available.

(That said, I've started strength training again. I did a lot of weight lifting a few years ago, and while it isn't the same as running, I enjoyed it. So I'm going back to it - partly to stay in shape, partly to ensure that I get my daily dose of endorphins.)

Worrying is a mostly pointless endeavor, but it's not something I can just shut off, especially when there's so much to worry about, when there's so much death and suffering. And I get that some people are seeing the opportunities in this situation. I wish I did. I don't. I wish I had something insightful or encouraging to say. I don't.

I feel like I'm in a holding pattern, waiting for something to happen. Waiting for something to change. Waiting for the other shoe to drop (although, seriously, how many shoes can drop?!? Haven't we run out of shoes yet?)

I'm okay. I just wanted to write it out. I can't tell if other people are feeling this way. I think they are?, but it's hard to know, especially based on social media. So I'm putting it out there - partly because it's a form of catharsis, partly to let you know you're not alone if you're feeling any of this, too.
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$76K Updates


Some updates from $76K Land:


(1) Twitter


I left Twitter about a week ago, and since then, I've received several kind emails from people checking in. I haven't responded to all of them yet, but please know that I really, really appreciate the concern and encouragement.

I'm okay. I'm just over Twitter.

For years, I somehow managed to avoid the Twitter trolls. Recently, though, something's changed. As I told Abigail over at I Pick Up Pennies, I feel like I've been getting bullied more and more, even by people I've interacted with for a long time. I'm tired of it and tired of feeling as though I'm not allowed to say anything even remotely honest and/or negative (which is... most of the time, given the current situation) without people getting on my case, giving me advice I didn't ask for, lecturing me, treating me like an idiot, dismissing my feelings, telling me things I already know, or just being straight-up rude.

If I complain or push back, I'm told to toughen up. I'm told it's just part of being on social media. It's like middle school all over again, and I'm not here for it. When I share things about myself, I share who I really am. I'm not going to sugarcoat. I'm not going to censor myself and pretend to be the positive, optimistic, and non-anxious person that I'm not (especially right now) to make other people feel more comfortable. Nor am I going to try to grow thicker skin simply because much of the world has decided that bullying by fully-grown adults is something we just have to accept. (I did try restricting who can see my posts, but it was like whack-a-mole: I'd get rid of one jerk and another one would pop up a second later).

So for now, I'm out. I really miss interacting with my friends. I don't miss feeling like shit.


(2) Student Loans


In better news, we refinanced our student loan. The one we weren't planning to refinance.

Here's what happened: When the government announced that it was suspending federal student loan payments for a few months, we were super excited. We logged into Nelnet to read the details and discovered that... our loan did not qualify.

Anyway, it was the perfect incentive to finally look into refinancing. After clearing a few weird hurdles (for instance, we were told that we had to provide a picture of Fortysomething's diploma rather than his transcript, and we don't have his diploma anymore; we reached out to someone in management, and they relaxed that rule for us), we were successful.

The old loan had a 7.25% interest rate. This new loan has an interest rate of 4.0%, and the monthly minimum payment is actually a bit lower. We'll be able to pay it off in less than 10 years (hopefully much sooner than that, but there are other financial priorities to consider right now), and we'll save about $10K in interest.

So yay.


(3) Health Insurance


Thanks to the pandemic, I've ditched the short-term health insurance plan that I was on. It's just too risky and too sketchy. The Kiddo and I are now on Fortysomething's employer-sponsored plan, which isn't fantastic but offers more protection. Although the premium is hundreds of dollars more than we were paying, it's a pre-tax deduction. When the first premium hit this week, the damage wasn't as bad as I expected to be.


(4) Job Stuff


Like many people right now, we're feeling very anxious about our jobs. We're lucky in that we are both still employed. Personally, as someone in higher education, I'm feeling pretty vulnerable at the moment. So far, the administration at my institution has offered nothing but vague platitudes about working together through difficult times, but it's clear that something has got to give. Rumors are flying about layoffs and furloughs. I work in online instruction, so you'd think I'd be okay - but I wouldn't be surprised if my little part-time gig was offloaded to a full-time, tenure-track faculty member to help justify their position.

Fortysomething's job as a grade school teacher seems fairly stable at the moment, but we're both worried about him having to go back in the fall. I know not everyone is concerned about catching this virus at work, but he's around kids all day, every day. In a normal year, he gets sick at least three or four times and passes it on to the rest of the family. It's one thing when those illnesses consist of the common cold, a stomach bug, or even the flu, but coronavirus is a whole different beast. Sure, you could get it and barely notice. Or you could end up on a ventilator.

I'm not going to lie. I'm scared - for him, for me, and for our kid. I know that people want schools to reopen, and I understand why they want/need them to reopen, but it seems absolutely bananas to do so unless a comprehensive testing, monitoring, and isolation program is in place. It's not enough to provide everyone with hand sanitizer and hope things will work out. We need to protect kids, teachers, and their families. Frankly, my partner and I aren't so dedicated to education that we're willing to sacrifice our lives and finances for it. So we're exploring our options.

I'll say this: if you're a parent and you want your kid to be back in the classroom, advocate for students and teachers by reaching out to the powers that be (school board, state government, reps in Congress) to demand frequent testing. Because that's the only way this will work.
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I Quit My Job A Year Ago - And I Have No Regrets



I just wanted to briefly poke my head in for a rare non-COVID moment to acknowledge the one year anniversary of this event:
That's right: April 18 was my quitiversary! Happy Quitiversary to me!

I have no regrets at all. Not about leaving that job, anyway. Yes, our income dropped by about 40%, and yes, I lost employer-sponsored health insurance. I decided not to return to full-time work, opting instead to spend a few months walking dogs before picking up a part-time adjuncting job that is enjoyable most of the time but that is, admittedly, probably a dead end. I had to buy my own short-term health plan and it was every bit as crappy as I expected it to be. The budgeting has been tricky at times. Not knowing what's next has been stressful, and the COVID pandemic has not helped.

Still no regrets. It turns out no amount of money is worth that level of misery.

There is a part of me that has regrets and maybe a little embarrassment about my overall career path, but that feeling isn't tied specifically to the job from hell. But what can I say, other than it didn't pan out for me? It wasn't for lack of trying. I threw myself into multiple jobs, all of which I appeared to excel in, all of which left me feeling stressed out, exhausted, anxious, and desperate to escape.

What I said in my quitting post still holds true:

"The fact is, I'm not sure that full-time employment is for me. I'm not sure it was ever for me. Between my mental health constraints, my desire to do what I want to do, my hatred for unnecessary meetings, my disdain for pointless tasks, and my resentment of micromanagement, perhaps I'm not a good fit for corporate culture. I did it because I thought it was something I had to do. I did it because I was told that I was above making coffee and selling Goretex... and I believed that, because our culture has brainwashed us into thinking that some jobs are more dignified than others."

And I'm still working hard. Aside from the part-time job, I do plenty of things I don't get paid for: manage the household finances, clean, cook, help the Kiddo with schoolwork, make doctors' appointments, fix things, etc. Not to say that Fortysomething doesn't do household stuff - he does - but obviously, for both of us, there's a lot of work that doesn't bring in a paycheck.

Somehow (miraculously), we've managed to cobble things together on a reduced income. We get by on Fortysomething's full-time salary, Fortysomething's bonuses, and the part-time peanuts that I earn. Some months, we've been able to save. Some months, we've had to dip into savings. We sock away cash whenever we can and try not to feel bad when we can't. We've ultimately been able to grow our savings since I quit.

In a couple of weeks, the Kiddo and I will move onto Fortysomething's health insurance plan (we need something more reliable in the era of COVID), an expense that will translate into an extra $550 or so a month. This will make our current arrangement a little more challenging, but we can make it work through the end of the year thanks to the recent stimulus checks and the afore-mentioned bonuses.

I often wish I had a little more direction - What am I supposed to be doing with my life? What career will perfectly mesh with my experience and abilities? What am I passionate about? - but I've been sitting with those questions for a year, and I'm still not sure. Sometimes that really bothers me. Sometimes I just shrug it off, knock out a few hours at my little part-time gig, bake some bread, wash some dishes, run a few miles, watch some Survivor with the family, and call it good enough. After all, isn't the whole "your career is what gives your life meaning" spiel nothing more than emotionally-veiled capitalistic propaganda designed to encourage all of us worker bees to continue propping up the billionaires? (Not to imply that there's a problem if your work does feel meaningful - if so, that's great. But I don't think that has to be true for everybody.)
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Everything Has Changed


I wanted to write something about the COVID-19 pandemic and how it's affecting us, but until today, it's been hard to find enough motivation + brain space to make that happen. Let's see what I can put together on this incongruously sunny Sunday.


The Current Situation


As of this moment, more than 2,200 people in the United States and more than 33,000 people worldwide have died from the coronavirus. In the U.S., the shit really started to hit the fan at the beginning of March; since then, it has deteriorated drastically, in large part due to the federal government's absolutely abominable handling of the situation. I won't get into that here because my head will explode. But I will say this: I don't feel safe.

Arizona's cases have started to pick up over the past two weeks. There are now more than 900 documented cases in the state, and there have been 17 deaths, two in our county. All restaurants, gyms, movie theaters, and other gathering places are closed along with schools. We are not under shelter-in-place orders yet, but given that our local ICU is already full and the hospital has insufficient PPE, I'm guessing that may happen this week (the Republican governor is reluctant to take such measures and refuses to let mayors make the call for their own cities; don't get me started). 


Day-To-Day Self-Isolation Life


My family has been preparing for this since the end of January, when the first coronavirus patient in Arizona was identified. We were closely watching what was going on in China, and the first inklings of community spread were emerging in Europe. We're both scientists; Fortysomething is a biologist. We knew the virus would spread, and we knew it didn't care about borders. We slowly stocked up on dry goods and emergency supplies, and by mid-February, we were pretty well set. 

I began self-isolating at the end of February, and Fortysomething and the Kiddo have been doing so since school closed on March 13. We're not going out except to run (to avoid crowded trails, I've been getting up before dawn and heading out as soon as it's light enough to see the road) and bike (the Kiddo's chosen form of exercise). We were going to the grocery store every week and a half or so, but a positive experience with Instacart yesterday has us convinced we'll have our food delivered from here on out, unless Instacart shoppers decide to go on strike for the long-term. 

Day-to-day life includes work for the adults, online learning for the Kiddo, baking bread (I was doing it before, but with the Kiddo home all the time, it gets consumed more quickly these days), Zooming with my book club and other friends, watching the newest season of Survivor, working on puzzles, preparing meals, and napping. Lots of napping. I feel like I'm tired all the time.

Basically, we're lucky to be able to stay at home, so we're just trying to hunker down, not get sick, and keep out of the way. The not-getting-sick part is especially important given my shitty health insurance - another thing that I can't think too much about before losing it. That's why we're shut-ins at this point. That's why I have a hard time walking out my front door without having a panic attack.

Mostly, we're trying to take it a day at a time, something I've never been good at. Now, it's a relief to focus only on the handful of hours ahead and make them as good as possible.


Finances in the Time of COVID


Financially, we're okay at this point. We have emergency savings, though we did draw them down a bit to purchase supplies (if this doesn't qualify as an emergency, I don't know what does). Fortysomething and I both still have our jobs. I worry a little bit about my gig: I could see my employer cutting some of us adjunct instructors to save money. On the other hand, my work is in online instruction and my pay is peanuts in the grand scheme of things, so I hope I have some security? Our state has mandated that nobody can be evicted right now, so even if we did lose our jobs, we would be able to keep living here.

I'm supposed to re-up my short-term health insurance next month. We'll see how that goes. It's a terrible plan, and if the premiums increase too much, it won't make sense. But paying the $800+ to be on my partner's plan would also be a huge crunch for us.

Although I don't like to live with regrets, I now have serious regrets about signing up for the stage race in August. I mean, there was absolutely no way for me to know that this was going to happen. But man, I'd really like that $1400 to be in my bank account right now. The race, which is supposed to take place in August, hasn't been canceled yet. Surely it will be. I don't see how it will be safe for hundreds of participants to camp, eat, and run together for days on end only four months from now.

We should be receiving a stimulus check from the government in a few weeks, which will be greatly appreciated. We'll save about half of it and use the rest to support local businesses, the food bank, and the city shelter. 


In the Tornado


I wrote a few things about five weeks ago that I ended up not publishing. Re-reading them, I'm struck by how insanely different things are now. Everything has changed, and we're all going to continue living in the middle of this tornado for at least another month or two. Let's face it: most of us can't even tell which way is up. We're just trying to get through the day. We don't have time to ascertain long-term repercussions. But when the tornado is gone? We'll have to deal with the fallout. There's going to be a lot of it. 

The immediate silver lining is that my community is working together as best it can to deal with this massive challenge. I hope that the long-term silver lining will be things like the adoption of universal healthcare and living wages for hourly workers. And I hope that rich people are finally getting the message that if we don't fix our rampant systemic issues, everyone will pay the price for it.
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Why "Just Find Another Job!" Isn't As Simple As It Sounds (For Me)


This isn't even really a blog post, guys.

It's probably going to be more like two paragraphs. It's a mini reflection on anxiety and sleep.

I was thinking about something last night and then again today when I was out on my run. I was thinking about how last year, things at work got so bad that I basically stopped sleeping and fell into a vortex of insomnia that was really, really hard to escape, even after sent in my letter of resignation.

Then I remembered that the same thing had happened in my advising job and in my tenure-track teaching job. The only reason it didn't happen in my full-time online teaching job was because my boss let me come in late every day and change my schedule whenever I wanted to (and then she left and that perk ended).

I mean, I knew I'd had issues with insomnia in the past. I just hadn't connected the dots to see how prevalent this problem has been for me.

Some people can get by without sleep. I can't. Lack of sleep makes me angry, resentful, confused, and inarticulate, none of which are conducive to a positive performance at work (or a positive life in general). Sleeping pills have addressed part of the problem - namely, the falling asleep part - but leave me perpetually groggy. It is a sucky, scary, personality-altering condition.

Insomnia is a beast. Those of you who've experienced it know what I mean.

I look at/for jobs every day. I find about 2-3 jobs per week that pay a decent wage and that I'm at least somewhat qualified for. But I will admit that I'm picky even beyond those considerations because I just can't dive into yet another job that will destroy my health.

As a result, I routinely discard any job ad containing words such as "obsessed," "passionate," "driven," and "go-getter," because in my experience, those kinds of jobs are breeding grounds for my stress and anxiety. Management jobs? No. Jobs requiring frequent presentations? No. Jobs where I have to help other people through difficult situations? No, though I wish I could be effective in that sort of position.

So... I eliminate many possibilities simply because I know those gigs won't be good for my anxiety and will destroy the healthy habits I've developed over the past year. And I don't want to give up good sleep. These days, I go to bed by 10 and wake up around 6 without much issue. On the nights when something does keep me awake past midnight, I'm comforted by the knowledge that I'll have time to nap the next day.

I'm not saying this as a sob story or to make excuses. It just is what it is - a factor that requires a lot of consideration when I'm sifting through options.

It's the kind of boundary I need to set for myself, but it also feels somewhat limiting, and that can be frustrating. Because I do feel like I have more to give to meaningful work... and yes, I also really want to earn a higher income.

That's all.
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I Need A Break From PF Twitter

Around the time that I started this blog, I joined Twitter and became part of the very active personal finance community there.

At first, it was a real boon. I met other people who were going through similar experiences or who'd had similar experiences in the past. When I asked for feedback on things like debt repayment vs. investing, how to set up an IRA, or how much to keep in our emergency fund, I received invaluable advice. And when I'd post about our debt repayment victories, my new PF friends would respond with nothing but encouragement. 

As a somewhat shy introvert who often struggles with in-person interactions, this realm of social media was the perfect place to talk about the things that interested me - personal finance, yes, but also careers, our kids, etc. - and meet likeminded people at various points in their life/financial journeys. 

Overall, it was a positive place to be, and I was (and am) grateful for it.

Lately, though, the discussions and commentary in the PF Twitter community feel... not positive. I log on and see Tweets to the effect of:

People who can't afford school shouldn't take out student loans.

If you are in debt, someone else owns your future!

I can't believe how much debt people have. It's SCARY. People have NO financial literacy. They're SO irresponsible.

If you're struggling with money, you're just not trying hard enough.

If you're struggling with money, you just need to work harder. Take on a second or third side hustle.

Increasing your income is easy! Just get a new job.

I can't believe my friend bought a car/new furniture/a vacation. They can't afford it and they got mad when I told them what I thought! [Sidenote: your friends don't want your opinion on their purchases unless they ask for your opinion.]

Frugality is dumb. Just increase your income.

OMG, look at this chart of millennial net worth! This is so SAD. I have SO MUCH MORE than this because *I* planned ahead and saved.

Look at this article! This 53-year-old has no retirement fund! She is SCREWED.

Who the eff takes out a car loan. STUPID PEOPLE THAT'S WHO.

Don't be AVERAGE. Average is SAD. Be extraordinary and FIRE! 

If social media doesn't get to you - if you're immune to comparing yourself to others even when you're in what essentially amounts to a virtual room full of people telling you (directly or indirectly) that you're doing it wrong - then cool. I salute you.

I, a melty, vulnerable little snowflake, am 100 percent willing to admit that these messages do get to me. Because we do have student loans. We don't have enough retirement money. My job change has made our lives better but it doesn't pay enough. We did struggle with finances for a long time. 

Using basic logic to connect the dots, I can't help but read these Tweets and feel like I'm dumb, lazy, whiny, ungrateful, and irresponsible.

But we've put a lot of work into our finances, and we/I don't deserve to feel that way.

Our story isn't exciting enough to become personal finance clickbait, but we've made an enormous amount of progress. We're finally in the green on our net worth (and before that, we were in the red but on a positive trajectory). We have some savings. We've paid off some debt. Because I ditched a soul-sucking job with a good salary and health benefits for a no-benefits job that I actually enjoy, I no longer feel constantly depressed, anxious, and stressed out. 

And that's just us/me. Other people with debt, behind on retirement funds, and/or lacking in savings have their own stories. Maybe those stories involve poor choices made way in the past. (News flash: everyone makes poor choices sometimes. It's called being human.) Maybe they involve really expensive, unavoidable life situations. There are any number of possible reasons. You don't know. You can't know. And yet we continue to send out the message that if you're not in a good financial place, you're an idiot, plain and simple.

You can say whatever you want, of course. I'd just like to point out that if your goal is to help other people, none of the above messages are in any way motivating, uplifting, or encouraging. If your goal is to pat yourself on the back for making all the right financial choices, can't you do that without putting other people down?

Many Tweeters in the community are amazing and wonderful, but somehow it's the negative stuff that gets lodged in my brain. I've spent most of these first few weeks of 2020 with the vague sense that I'm failing, and Twitter is not helping. 

So I just need to step back, clear my head, and recalibrate. 

I'm not deleting my Twitter account. I'll be back sometime, when I get my head on straight and feel less sensitive to the commentary. And I'll still be writing on this blog. I plan to comment more on other people's blog posts because I really do like interacting with fellow money nerds. 

If we're friends and you want to connect elsewhere (Instagram [where I don't talk about money at all], Twitter DMs, text, probably not the phone because I hate the phone), then let's do that. 

Sincerely,
$76K
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Three-Seasons Budgeting: Season 1, 2020


When I started The $76K Project, one of my good intentions was to write a budgeting post once a month. I don't think I ever succeeded in doing this with any regularity, in part because I'm allergic to forced blogging schedules and in part because I felt like I was sharing the same numbers over and over again, which makes for boring reading.

However, this is a normal-person-does-personal-finance blog, read by (I assume) fellow average people who are also trying to get their money situations in order. I do think budgeting posts are important given the scope of what I write about. When we started our financial overhaul, it was immensely helpful to see how others manage their finances. I used to devour other people's budget breakdowns. I assume at least some of you guys might feel the same way, and anyway, I want that kind of transparency to be part of what I'm doing here.

But how do I write about our budget without being totally repetitive?


Budgeting By Season, Not By Month


The other day I realized three things:

1. Our budget changes throughout the year, even when our income doesn't.

2. That change happens in a somewhat predictable way.

3. We can loosely break our budgeting into three "seasons":

The Boring Season (January - April): During this season, we're just holding steady. We're not making much extra money through bonuses or side hustles, but we're also not spending it on vacations, kid activities, or anything major. In general, income = expenses.

Bonus Season (May - August): During this season, our accounts are usually bolstered by Fortysomething's annual pay raise and bonuses; he occasionally takes on some freelance work, too. Extra money! Wheeeeee! We always save some of it, but we also use a chunk of the extra cash to go on a frugal-ish vacation. Income > expenses.

Celebration Season (September - December): With two birthdays, an anniversary, and Christmas/New Years, we always end up splurging in the fall and early winter. I've stopped trying to fight this trend. It's a fun time of year, and we like to enjoy ourselves. If we have to dip into savings to top things off, that's okay. Income < expenses (though not to an extreme degree).

NEW PLAN: instead of writing a budgeting post each month (which won't happen anyway, who am I kidding), I'll write one at the start of each season. That will allow me to keep a record of our budgets and share them here without being tedious.


Boring Season Budget 2020


Currently, we're in the Boring Season of our budget, which is shown below.

For Boring Season 2020, our expenses and income will be approximately equal. As always, rent and food are the two biggest line items (I've stopped trying to chip away at the grocery budget - it's too stressful, and we eat all the food we buy). We've reserved $200 for miscellaneous things like school supplies for the Kiddo and going out to eat once or twice. I've probably overestimated our electric bill, but temperatures are notoriously unpredictable at this time of year, so I want to leave some wiggle room in that category.

You'll notice that we're not planning to put any money into savings this month beyond what's auto-deducted from Fortysomething's paychecks and the pet sitting money that I'll put into my IRA. That's okay. Our emergency fund is in good shape for now. We'll add to it later in the year.

I definitely feel some pressure to make more money (especially because I worry about health insurance and the limitations of my current plan), but I also feel like I need to devote my energy to other things right now: running, being a parent, household stuff, etc. I can re-evaluate income in a few months and/or if/when a good opportunity finally comes along.


Stay tuned for the second (and probably more exciting) budgeting installment at the beginning of May.

What about you? How do you organize your budget? Does it change throughout the year or hold fairly steady?
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The Pros And Cons Of Working As Part-Time Adjunct Faculty


It's been about six months since I started working part-time, and because I've found myself reflecting on the experience over the last couple of weeks, I figured I'd share those thoughts here on the blog.



My Current Part-Time Job


I've worked in higher education - online higher education, specifically - for a long time. I landed in this field accidentally: as a graduate student, I cut my teeth on a Blackboard-based class that nobody else wanted to teach, and opportunities snowballed for me during the online education bonanza of the early to middle aughts. I never intended for this to be my area of expertise, though, especially because there are several aspects of it that I don't particularly like or believe in. 

Going back for my PhD was an attempt to branch out and away from online education. Because I have so much experience and know all the lingo, it's also the realm where finding work has always been pretty easy. So here I am... again.

My current position entails a combination of teaching (more like coaching, as there are no live classes and all of my student interactions occur via email or phone), grading, and curriculum development and design. I work entirely from home on an hourly basis. I'm allowed to put in up to 20 hours per week (and I always, always work 20 hours, because I want that money!). Although I have two bosses, my communication with them is sporadic, and our online meetings are few and far between.


What I Like About My Part-Time Job


1. The flexibility. This is by far the biggest perk. I work when I want to work, and I set my own schedule. I have plenty of time each day to run, conduct petsitting drop-ins (not every day, but some days), read, mess around on Twitter (I'm working on not doing that as much), blog, cook, help my kid with homework, and tidy up the house. My life feels way more relaxed than when I was working full-time, and I think those benefits get passed on to my family.

2. The work itself. I'm comfortable interacting with my students, I usually enjoy reviewing their work, and I get a kick out of the curriculum design aspect of things. It requires subject matter expertise and creativity, and when I can utilize both, I really get in the zone.

3. The autonomy. Although my bosses will occasionally ask me to do something specific, they generally let me run the show with the courses I facilitate. I never feel like someone is breathing down my neck - an extremely welcome change from my previous two jobs, where my every move was recorded, analyzed, and critiqued. This being higher education, where the trend is always, ALWAYS towards micromanagement, I know my autonomy could dissolve at any time. But I'll appreciate it while I have it.

4. My immediate colleagues and supervisors are friendly, professional, and reasonable. This is a huge plus given that I had the opposite experience in previous workplaces. Even online, and even in a setting where my communication with other instructors is pretty minimal, collegiality makes a huge difference. Also, despite the negatives (see below), I feel like the higher-ups have acceptable expectations of me that reflect the limitations of what this job can offer.

In sum: as far as adjuncting goes, this is probably as good as it gets.


What Bothers Me About My Part-Time Job


At the same time, now that I'm six months in, I find myself wondering whether this position is viable over the long term. It is definitely not perfect. There are a few things that rankle me about it:

1. The pay. If I work as much as I can every week of the year, without taking any time off, I'll make a little over $20K annually (before taxes). Obviously, I can't expect to make as much as I did when I was working 40 hours a week, but given my education and expertise, the pay is low. Everyone in my position supposedly makes the same wage that I do, so I'm not sure how to approach management about a raise. It doesn't feel like the right time. Maybe at the one-year mark.

2. No benefits. To be honest, this is the part of the job that bothers me the most, both personally and in principle. It's not just that I don't get health insurance or access to a retirement account; it's that my employer actively works to ensure that I will never get those benefits. The way they do this is by dividing what could easily be full-time roles between two half-time people.

Moreover, I am officially listed as a temporary employee, meaning that my employer could let me go for any or no reason on any given day, without any repercussions. But in reality, my role and my colleagues' roles are critical: this entire program is dependent on a cadre of adjunct faculty. Without us, there would be no program at all. Without us, the organization would not be reaping the financial rewards of an online education option.

Note: If I had benefits, everything else on the "cons" list would be easier to accept. Part-time workers should receive benefits. Period.

3. People in my field don't take me seriously. They just don't. Former colleagues basically act as if I've left the discipline altogether. If you aren't a REAL professor or a REAL researcher, you are a washed-up, second-rate hack (fellow adjuncts, I know you know what I mean). Elitism runs rampant in higher education, and there's no greater evidence of this than the way in which adjuncts are treated by people who have the same level of education and experience that they do. Being kicked out of the club makes me very sad, and I try not to think about it.

4. I have to use my own computer. For multiple reasons, I disagree with this policy. If I'm doing online work for a big organization, said organization should supply me with the necessary equipment so that I'm not putting in extra miles on my own equipment. Moreover, I'd prefer to not view student information on my personal computer, as technically, my equipment could be seized if there's a work-related investigation of some sort.

5. No advancement opportunities. I suppose I could apply for my boss's role if she quits. But it's more of a management role than an instructional or designer role, and I'm not sure I want that. Instead, what I'd really like is the option to move into a full-time instructor role, which doesn't exist.

6. I get bored. While I don't want to work 50-60 hours a week as I did in my last job, and while I appreciate the flexibility, I think I'd be more satisfied with my work if it required more like 30 hours a week (I had the opportunity to put in extra time last fall and found that six hours a day was ideal) and if I had some real options for professional development. 

7. I have way, way more to give. This is something I thought about a lot last week. I could be doing so much more with the knowledge and experience that I have. Instead, I often feel that they're going to waste. I just don't know how to make that happen without ending up too far on the other end of the spectrum and overworking myself. That balance is so elusive. Although I look at the job boards on a daily basis, I haven't seen anything locally or online that fits the bill (but I'll continue to look!)

As I write this, I realize that I am probably not alone. I know there are other people out there in similar situations, especially people with PhDs who now find themselves in less-than-ideal adjunct roles.

I'd love to know what you think:

Have you ever worked part-time? What was that experience like?

And if you're working as an adjunct or part-time instructor in higher education, how do you handle the low pay and lack of growth opportunities?

Please note: Before giving off-the-cuff advice, please consider that most people don't really need advice when they're just sharing an experience (sorry, guys, I'm burned out on unsolicited advice). Yes, I have talked to my supervisors about benefits. Yes, I asked about a computer. Yes, I keep an eye on the job boards. No, I cannot just waltz in and demand more money, as pretty much anyone who's been in this position will understand. Yes, I am grateful for what I have. No, I will not be writing a gratitude list. Thanks!
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Why We Decided Not To Buy A House


Hello, $76K readers! Just checking in with an update. Not sure yet whether it'll be a short one or a long one, as I'm not feeling particularly blogger-y today. But when I started The $76K Project, I promised myself that I'd document all of the major steps along this journey. So here I am, a reluctant writer chaining herself to her keyboard.

As I outlined a couple of weeks ago, two of our 2020 goals were to (1) figure out what we're doing about our current housing situation and (2) apply for a home loan. As of today, January 19, we can check both of those items off the list. Whoop! High five!


We Spend A LOT On Housing


Housing has been an ongoing concern for us because it's a major chunk of our budget. Currently, our baseline monthly income (not including petsitting earnings, bonuses, or Fortysomething's occasional freelance work) is about $4600. Rent for our two-bedroom, two-bath duplex - where we've lived for nearly two years now - is $2200. That means we spend just under 50% of our income on housing, which is... a lot. It's especially a lot now that I'm working part-time and purchasing my own health insurance.

Sooooo... we've been trying to figure out whether to stay put and deal with an anticipated rent hike in the spring (more on that in a moment) or throw our hats into the housebuying ring. (A third option is to move to another rental, but rent here is high across the board, so it doesn't seem worthwhile.)

To see how much of a loan we're actually qualified for, we completed a home loan pre-approval application. We gathered and submitted all of the paperwork (so much paperwork) and agreed to a credit check, and within a couple of days, we learned that we were pre-approved for up to $375K. We enlisted the help of a Realtor and started perusing the listings.

But at the same time, we were questioning whether we really want to buy and whether it's a smart financial move.


Housebuying: The Pros...


Although I have some issues with where we live, we generally love it here and can't see ourselves leaving - at least, not before our kid graduates from high school. Personally, I have never been as attached to a place as I am to this place. I feel very, very connected to our town, its surroundings, and the outdoors. I love the mountains, I love the trees, I love the climate and the sunshine, and I love the trails. From a nature perspective, I love everything about it.

Anyway, seeing as how we don't intend to move anytime soon, we'd love to find a way to stabilize our housing costs and make them a little more manageable. At least at first glance, buying seems like a good way to do that: the mortgage is your mortgage; unlike the rent, it's not going to go up every year.


...And The Cons


Nevertheless, we also recognized that there would be some major hurdles associated with buying at this point in time:

(1) $375K is A LOT of money. A breathtaking amount of money. A sum that kept me up at night once I learned that someone was actually willing to lend us that much. Do we want to take on hundreds of thousands of dollars of debt when we've just managed to get our heads above water?

(2) We don't have much of a down payment. We could use the $10K in our savings account, but then... we would have no savings.

(3) When we ran the numbers, we realized that we could end up paying between $150-$200K in interest over the life of the loan. Obviously, we could curb that total by paying off the mortgage sooner, but it's likely that even under the best circumstances, we'd still end up paying tens of thousands of dollars in interest.

(4) Housing in our area is expensive, but that doesn't mean these are turnkey properties. In reality, anything less than $400K will likely need work. As renters, we don't have to worry about that. If something breaks, the landlord fixes it. If the roof leaks, the landlord takes care of it. If the lightbulbs burn out in the kitchen, they'll replace them. We do... nothing.

(5) The monthly numbers would be roughly the same. Ideally, buying a house would allow us to cut our monthly housing expenses by several hundreds of dollars, but realistically, after factoring in the mortgage itself, taxes, and PMI, it would probably be a wash.

(6) We'd likely have to depend on other people for help with the down payment and closing costs - and I want us to be self-sufficient. One reason we pursued homeownership was that a family member offered to help out. That offer changed over the weeks, and as more and more strings were attached, it became less and less appealing. If we're going to buy, I don't want to deal with any of that. I want to be able to do it without assistance.

(7) We love our current rental. With the high rent come numerous benefits that align with our interests and values: there's a trail literally right out the front door, Fortysomething and the Kiddo can walk to work/school (a real boon in inclement weather), and we need only one car (and use it rather sparingly). Because we're centrally located, we can get to any side of town in minutes. And we have beautiful views. Honestly, I can't imagine living anywhere better.


Our Choice: Keep Renting And Play It By Ear


A few days after we were pre-approved for a mortgage, Fortysomething talked to our landlord about what would happen if we decided to break our lease. During that conversation, the landlord offered to lower our rent - not by a lot, but lower it nonetheless - and lock it in for the next 1.5 years. (Note: we tried negotiating our rent last year and got nowhere with that; I guess us telling them we were looking to buy was a gamechanger.)

It didn't take us long to decide that, at least for now, continuing to rent is the way to go. Neither option is great, but with renting, we don't have that burden of debt on our shoulders. We don't have to worry about moving across town, or gathering a huge chunk of money for the down payment and closing costs, or finding a way to replace/repair the appliances that will inevitably break within the first six months of homeownership.

Sometimes you have to try something to see if you really want to pursue it. I'm glad we applied for the loan and started this process because it showed us that it's not the right time. It's amazing how crystal clear that became, and how quickly.

When this lease is up for renewal, I suppose we'll just play it by ear. Maybe we'll be ready to buy then. Maybe not. You can't know everything in advance, and that's okay.
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,

How We Finally Achieved a Positive Net Worth


Okay, real talk? That title is just an SEO gimmick. We all know I suck at how-to posts.

What I'm really here to say is simply that

according to Personal Capital

we have finally crossed the red/green line into positive net worth territory!

It has been... a road.


Our Net Worth Story In Graphs


This first graph spans November 2017 to now. The starting number on the left is something like -$65,000. That doesn't really capture the whole picture, though, because we started overhauling our budget in April of 2017, when our net worth was more like -$80,000:




Okey dokey. Moving on to the next graph, which covers the last year. In January of 2019, our net worth was -$23,000ish:



Finally, here's our net worth over the past three months:




The jump you see on the right doesn't reflect some magic injection of cash. It reflects the fact that until a few weeks ago, Personal Capital was unable to deal with our multiple eTrade accounts. Now it can, and so it's finally registering an IRA that contains some fairly high-performing stocks.

(Did you see what I did there? I sound like I know what I'm talking about! I'm practically an investment expert now.)

So we're in the green! Just in time to consider dumping hundreds of thousands of dollars into buying a house!


Fine, Here's How We Did It


For the sake of truth in advertising, here's how we went from negative net worth to positive net worth:

1. Got rid of some, but not all, debt (see: this blog).

2. Saved some money in our emergency fund.

3. Put more money into investments once we paid off our highest-interest debt.

Again, steps 1-3 took us almost three years, more than 2.5 years of which I tracked every single expense and obsessively policed my family's spending. It was sometimes fun, sometimes not. Often not, TBH.

So how's that for a jazzy how-to?


Things To Remember If You're Fixing Your Finances (From A Non-Expert Who Is Still Way Behind)


I keep making comparisons between long distance running and personal finance because they have one key thing in common: for us middle- to back-of-the-packers, progress essentially boils down to putting one foot in front of the other over and over and over again, even when it's tiring, boring, and painful. Even when it feels like everyone and their pet newt is flying past us. Even when we're so far behind that all of the gummy worms and lemonade powder are gone when we finally reach the next aid station.

(Sorry. I might be taking this analogy too far.)

Here's what I'd tell other people in similar situations:

1. It takes time. For most people, everything money-related takes time. Don't get discouraged by the clickbaity "I paid off $1 million dollars in three weeks!" articles. Trust me, there's always a secret inheritance or surprise property sale involved.

2. Your net worth is in no way tied to your worth as a person. There's literally (I love that word, even when I use it improperly) no correlation. You can be the most amazing, giving, wonderful person in the world without money. You can be Scrooge McDuck rich and also be a total life-sucking shithead.

3. Seriously, the secret sauce to personal finance is to keep taking small steps. It's going to feel like you're going absolutely nowhere sometimes, but if you're moving forward - even just a little - you're progressing.

That is all. That's all I've got in the way of advice.

I'm the next Suze Orman, I know.

Anyway, this "crossing into the green!" thing is kind of arbitrary, but it still feels good, and I wanted to share it.

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Putting My 2020 Goal-Setting Strategy Into Action


2020, You Don't Impress Me Much (Yet)


It's January 4th, and at the moment, I'm not really feeling the new decade.

(Sorry if the cheerful blog pic is misleading. I typed "disappointing new year" and "unimpressed 2020" into the Pexels search engine, but I guess those tags aren't trending.)

Maybe it's all the shit going on in the news: the intense heatwaves and massive fires in Australia, the scary unrest in the Middle East, the rise in hate crimes throughout the world, and the criminals... er, politicians... currently running the U.S. government.

Maybe I'm not over my emotional holiday hangover.

Maybe it's my stupid BFFs, anxiety and depression.

Or maybe it's that I'm still carrying baggage from 2019 (and earlier).

Maybe it's all of these and more!

...Yeah, probably that one.


My 2020 Goal-Setting Strategy


This year, I have a strong sense of having to start over, which maybe sounds exciting but doesn't feel exciting. Also, I still have this sense of being lost, which is disconcerting because I wasn't expecting to feel lost at 41.

Where am I? How did I get here? Where did I go wrong? Where am I going? Shouldn’t I know these things by now? 

So in 2020, in an effort to get more grounded, I’m shaping my yearly goals around the things I'm most excited about. I’ve chosen a couple of big challenges, but I’ve also purposely set myself up for what I hope will be some easy wins around things I love.

Additionally, I'm focusing less on work-related goals this year than I have in the past. I feel like I don't have much control over my current employment situation. I like what I’m doing now and don't want to rock the boat, but I wish my company was more invested in me. I worry about the longevity of my assignment (after studying my pay stub the other day, I realized that I’m actually assigned to the “Temporary Employee” pool).

At the moment, though, I don’t quite know how to make a change, or what change I’d even make. Jumping into something new for the sake of a higher paycheck seems like a bad idea.

So I’m letting it be and taking the wait-and-see track. If my current opportunity ends, I’ll figure out something else. And in the meantime, we’re brainstorming ways to cut costs elsewhere so that unexpected changes won’t affect us as much, and I'm taking advantage of my flexible schedule.

Anyway. After much thought, here's a list of my 2020 goals:


Running Goals


1. Participate in the 3-day stage race option at the TransRockies Run in August. This is my big event for the year! You can read about why I selected this race and why I'm so excited about it here.  

2. Participate in my town's summer race series. It's $200 for all six races; I'll be able to participate in five. At $40 per race (including t-shirts!), I figure that's a pretty good deal. Plus, it's local, so I won't have to spend much on gas to get to each event.

3. Run a couple of other races in the southwestern U.S. Specifics TBD depending on what strikes my fancy, race costs, and how I'm feeling.

4. Get lighter so that I can run more efficiently. I'm thinking maybe 10 pounds? I don't know exactly. My strategy is to cut out the food that I eat more out of habit than hunger. I'm addressing this by writing down what I eat every day. Much like tracking my spending, tracking my food intake makes me more aware of what I'm consuming, and being more aware of what I'm consuming makes me less likely to over-indulge.

If this works, great. If not, eh, whatever. I am not dieting.


Money Goals


1. Maintain our current emergency fund. It's at $10K for now, which still kind of bowls me over every time I look at our bank statements. To me, our e-fund represents all the progress we've made with our finances over the past few years. Of course, we're willing to use it if we need to, but the goal is to always build it back up to its current level.

2. Increase Fortysomething's contributions to his retirement fund by 2% by the end of the year. We're currently sitting at 8%, plus a 5% match from his employer. We'd like to increase our contribution to 10%.

3. Make $150/mo after taxes from petsitting. I have two regular clients at this point and usually meet this earnings threshold every month. 

4. Put most, if not all, petsitting earnings into my IRA. Even without an employer-sponsored retirement fund, I really need to make sure I'm socking some money into investments. I'm already working on this: yesterday I moved a recent $16 payment into my IRA. It's not much, but it's something.

5. Achieve a positive net worth. Guys... we may have crossed this one off the list already! I'll be writing a dedicated post soon, but basically, some high-performing Apple stocks (Fortysomething loooooves Apple) seem to have pushed us over the line.


Life Goals


1. Figure out what we're going to do about housing. This is the year we're going to make some decisions and (I hope) figure out how to lower our housing costs, which eat up an enormous chunk of our budget. 

We could continue renting our place (we love it, but it's expensive, and the rent will almost certainly increase in the spring). We could rent a less wallet-busting place (though finding affordable local rentals that aren't falling apart or run by shady landlords can be extremely tricky). We could buy a home, if we can get a suitable loan (see #2). We could return to the RV lifestyle (I'm not totally opposed to the idea, but it would require some massive upheaval, which I'm not sure I'm up for). Or we could move somewhere else entirely (for multiple reasons, nobody's thrilled with that idea - but the option is on the table).

2. Apply for a home loan. We're hitting the ground running on this: we submitted a pre-approval application yesterday! Fortysomething and I are both skeptical about our prospects given our limited funds and expensive town, but for the sake of Life Goal #1, we need to see where we're at. If we can't get approved for an amount that's commensurate with local housing costs, well, at least we've narrowed down our options.

3. Get involved in trail cleanup/maintenance. I plan to get involved with the Arizona Trail Association and a local cleanup crew in my neighborhood. Considering how much time I spend on these trails, it's a great way to give back. I also hope this will help me meet some new people.

4. Go on an affordable date every other week. Fortysomething and I don't go out much, but now that our finances have improved and our kid can stay home alone for an hour or two, I'd like to establish kind of a standing appointment. I'm thinking local brewery, Sunday afternoons. A couple of pints and maybe a basket of chips won't set us back too much.


Blogging Goals


1. Continue publishing ~4 posts per month on average. I've been doing this already, so I'm not going to overthink it. Just keep on keeping on.

2. Amplify other female bloggers in the personal finance space. Truthfully, I'm not always very good about commenting on posts, but I really do want to encourage and support other writers, especially women. So each month, I'm going to pick three bloggers and share their work as much as possible. This month, it's The Traumatized Budget (love), K. Wright from Money the Wright Way (my Lola Retreat roomie and now a famous NY Times-published freelancer!), and Frugalish Physician at Table for One (fellow cat lady, board game aficionado, and all-around good human).

(Note: Clearly these ladies don't need my amplification; that's not what this is about. I just want to hold myself accountable for promoting the community in whatever small way I can.)

What about you? What are your 2020 goals, if any?

I hope 2020 isn't a total dumpster fire, and I hope you're having a good new decade so far.

Or if not, I hope it gets better, and fast. You deserve a wonderful year.

P.S. Please for the love of god nobody tell me to cheer up. You don't tell a depressed person to cheer up. You don't tell them to write a gratitude list. You don't tell them things could be worse. You give them some chocolate and congratulate them for showing up.

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