Still improving-- networth totals ($23,741)

So, for a girl that started in the way deep negatives, this month got a boost with me checking out in the retirement department what my balance is and it is to the tune of £5100. Not bad, I say! My work puts in 7% of that and I put in 3%. Not a bad bargain. I'm increasing the amount I contribute starting at the end of the month to 5% because I think I've been a bit of a slacker. And the asset building is now officially on hold. Bring on my student loans!


If I really slam it, I could be under $20k next month. Whoop, whoop!


Just to recap on my progress:
May 2008 (first time recorded): ($50,775)
October 2008: Under 40k! ($39,956)
May 2009: Under 30k! ($29,349)

My July budget

I've got pay-as-you-go Internet in my flat (see £98 below!), so I'm more likely to get online and update my blog these days. It's been record heats in London, so I've been seeking any sort of shade and even went swimming in the serpentine!

So, here's my not-quite-so-hot July budget. £600 in overspending from last month. Ouch.

Money is in British pounds. 1 British Pound = $1.60
3166 paycheck
-507 income tax
- 296 national insurance (that "free health care" we get)
-95 personal retirement contribution
--
2268 left after paycheck deductions
-823 rent
-20 public transportation
-80 food
-10 sundries
-20 clothes
-10 electricity
--
1305 left after clothes, food, shelter and transport
-35 mobile
-50 private medical/dental
-16.50 cinema pass
-98 pre-paid broadband pass
-40 donations
--
1065 left after optional expenses
-30 student loan 1
-35 old credit card debt
-125 credit card last month
-475 Auntie's trip (on credit card)
-20 estimated international phone calls
--
395 left after DEBTS
-35 coffee money
-30 meals out
-20 train money
-50 entertainment
-25 blow money
235 left after fun money
-125 US retirement
-75 therapy
-35 extra student loan payment
--
0

Back from Espana

Wow. Seven days in the sun and I return to...what else? RAIN!
Well, it makes staying in and catching up on household chores easy, although I wanted to show off my tan.

There's a lot to be sorted out this week and near the top of the list is my finances. I'm pretty excited that Tuesday is payday and to see where I'm at. Also, I've been negotiating with my landlord about getting some money back for the mirad of disasters that occured when I moved in in June. I think I'll write up a little how-to guide because my lawyering skillz are coming in very handy with this one and a little law and written letter goes a long way with landlords.

The flat swap went wonderfully and I loved loved loved Barcelona. I didn't spend a lot and walked everywhere, ate at the flat, but didn't feel as though I was on a "budget" holiday. Instead, I felt like I lived there--it was hard to leave but the swapee and I have already been in talks for a further August swap. It could be like I have a vacation home--in Spain!

It was certainly better than holiday in the sun last year, which goes to show that a little planning goes a long way with vacations, but also leaving space for spontinaeity. Can't wait to read up on what everyone is up to. More importantly, I should be getting broadband soon so I can actually catch up on blogs without paying per min.

SNS

Mistakes were made, Spanish edition

Well, in any journey there are setbacks and June has been mine. I´ve somehow gone spending crazy, being back in London, having visitors, going to Spain, moving, it adds up and because I also overcomplicate things I´ve been moving money into various mutual funds and bought stocks outright. Stop the maddness!

Over the past month I´ve incurred over the limit fees on my US bank account for forgetting when a mutual fund debit was coming out ($80 total, eek!), I´ve used up both overdraft facilities that I have (350 pounds), maxed out my US credit card ($900!) and cleared out one of my savings accounts. Plus I owed the IRS $450 for the pleasure of not even living in America.

Whoa. That´s quite a spree. So now I´m in damage control and trying to make it through the rest of my holiday without too much trauma and some MAJOR changes are going to have to take place once I get back to London.

Spending habit wise, those changes start now.

1--I´ve been trying to run way, way before I can walk and I now have my Roth set up and just need to sit back and have automatic investments come out. No more messing around with it. I´m tempted to sell off the high yield bond fund but it would only be to reinvest it in something less volitile or just put it into my automatic retirement. No touch, no mess. $250 per month until further notice. No more!

2- No more stocks. It´s too much like gambling and way to high maintence. I would not reccomend to anyone in my position to mess with individual stocks, so why am I doing it?

3- Attack my student loans. I heard a great thing on Dave Ramsey with him saying "you want to buy a house and still have student loans?? You better be saving one of the bedrooms for Sallie Mae!" Fair point. I need to at least get rid of my Perkins loan number 2, the one at 5%. I´m going to be agressive. B.E. AGG-RESS-IVE.

4- Forget about owning a house and the Obama $8,000 credit. Yes, it´d be nice to use it but focus on first things first.

I´m pretty torn philosophy wise between paying down debt and aquiring assets that will eventually work for me instead of me working for them. Because I have a job right now I think I´ll focus on at least one more loan and can then reassess my priorities.

And, the overspending has got to stop. No more things for the apartment until after the summer.

This is SUCH a reminder that I can´t run away from my overspending and that my impulsivity can ruin all the things I work so hard for. I had nightmares about money last night. IN BARCELONA! I´m now sitting in an Internet cafe clearing up some of my mess. IN BARCELONA!
I used to be able to travel and forget my worries, but because I try to mostly live in reality now, it doesn´t work to run away. This holiday is teaching me some lessons, that´s for sure and they´re not in Spainish.

My first student loan paid off!

This is a day of great importance. My smallest Perkins loan which I took out in 1998 to attend a college that I ended up leaving--has been paid off. I called Campus Partners and paid off the remaining $25.74 right now.

The sad part is that it states the totals I've paid on this loan.

Original loan amount = $1,500
Principal paid = $1,500
Interest paid = 219.97
Delinquent charges paid = $599.80

So, in total I paid $2,345 for a $1,500 loan. That's something like a 50% mark-up. Maybe Obama can see how that's a little crazy? On a government loan?! I mean, yeah, I was young and stupid but haven't we now discovered that all of America was acting the same way and now getting bailed out? Anyhow, it's out of my life now. And none of those charges were in the past year. Next up: Perkins loan number 2.

new American Idol

So, gotta love getting the Sunday Times on Saturday night and reading the Money section before bed...and I read about this incredible female, American, single, entrepreneur who has made her money in London. Her name is Julie Meyer and she is featured in their "fame and fortune" section.

5 reasons why she rocks:

1. first job was a waitress at 17


2. rents in London, owns in America


3. moved to Europe with $700


4. named her best investment = herself and her self-financed education


5. oh and is a total business goddess who took risks setting up First Tuesday, a networking forum for entrepreneurs. Started it with $35,000 in February 2000. Sold it for $11 million THAT July.

I have a feeling I'm going to be reading a lot more about this woman, but from her bio for her current job she describes herself as "an American by birth and a European in spirit" and that she is setting up an organisation which will help young girls learn what their unique contribution is, and will work with fathers and daughters to create a virtuous circle of investment into women.all her fabulousness.

Isn't it more fun to have someone like her for an Idol than Kris Allen?

Plus, how CUTE is that suit!?? I hate how business women in London rarely wear anything but dark coloured suits.

Top 5 events of the past week

Okay, things have been a bit hectic. I'll rehash some of the PF highlights of the last two weeks.

1- I met Holly!!! Not only did I meet her, but I went SHOPPING with her, and bought stuff for my flat. Now I feel like there's a little piece of the blogosphere in the centre of my flat since I got curtains, a chandeliery-type thing (see pic, cost on LauraAshley.com = £36.71, I got it for £10. Sealed in box and hopefully not stolen!) and other fun Battersea Car Boot finds! Much more fun was discussing life, love, and of course, money with her. If I had to describe her in one word--I'd use genuine. She's lovely and oh-so-insightful for her age.

2- My Auntie has taken up my offer and arrives in London on Friday morning. A fun-filled and pretty budget friendly five days will ensue.

3- I bought stocks for the first time in my earning life. I own a tiny piece of some of my fave stores--everyone in America, please keep shopping at Target and Tiffany's, please! I decided not to pay off my student loan and instead help the stock market recover. I am going to up my payments on my loan, though.

4- I bought into an Asia ex-Japan fund to round out my Roth IRA portfolio. I'm being pretty damn aggressive, but I'm cool with that. The Roth is for my retirement so that baby's got a lot of time on her side. Well, another 30 years I suppose.

5- It was my half-birthday! This means I'm one day shy of six months away from turning 30. Whoa!

Phew, this was a whirlwind. I'm posting from the Internet cafe so time is ticking...