You've found the home of your dreams. You have a pre-approved, fixed, low-rate home loan. You have your 20% down payment ready. You've calculated your monthly payment and it will fit nicely in your monthly budget and still allow you the freedom to enjoy life.
Sounds like you have it all planned out right?
Don't forget about the homeownership costs that you may not have planned for. Here are a couple of additional costs that need to be considered when taking the leap from being a renter to being a homeowner.
Utilities: You probably budgeted for utilities based on your last home. Most people usually move up and get more space when they purchase a home. Don't forget, with all that extra space, comes higher utility bills. You need to use more power to heat and cool that additional space.
Appliances: If you purchase a new home, you will also probably need to purchase a washer and dryer, stove, refrigerator and possibly a microwave. When I purchased my home, I purchased directly from the builder and part of the incentive to purchase the home, they included an appliance package. This saved me thousands of dollars that I had not considered as part of the purchase. If you purchase an older home, all these items may need to be replaced as they may have completed their intended lifespan.
Window Treatments. This is one of the costs I certainly did not account for. Each window in my home needed some kind of window treatment. I did not want curtains on all the windows so I had to purchase blinds for each window. This cost was not considered and quickly added up.
Repair and Maintenance. This cost can vary based on the age of your home. If you were previously renting, you were probably used to calling the landlord and having problems fixed without any money out of your pocket. As a homeowner, you are the landlord and will need to pay for any problems that may arise. Even if you have a new home, repair and maintenance issues will still come up. Did you have a pipe burst? Get ready to come out of pocket to pay for it. One good way to lessen the pain of repairs and maintenance of your home is to set aside a set amount of money each month in a repair fund account. Now when a repair comes up, you are not relying on credit or trying to figure out where to get the money to pay for the problem.
Yard Care. Depending what type of home you have, you will probably be responsible for your yard maintenance. If you live in a condo or townhome or have a homeowners association, this is something you may not be concerned about. Responsible for your own lawn? Get ready to buy a lawnmower, trimmer, chainsaw, blower and possibly a pressure washer to keep things nice and clean. One tip to save money on these items is to visit a pawn shop. I saved a bunch of money buy going to a pawn shop for all these things when I bought my first house.
Homeownership is a wonderful thing; you just need to make sure you are financially ready to take on the responsibility.
This was a group project organized by Rocket Finance. Visit Rocket Finance to view all the home related posts.
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As most of you know or have experienced, the rates for savings accounts have been dropping like a rock after the recent rate cut. With the additional rate cut today, I'm sure the rates will fall even further.
Given the fall in interest rates, the monthly interest paid on my savings account will continue to fall. Looking at the numbers today, it no longer makes sense for me to have $31,000 sitting in a low rate savings account when my car loan is at 8.43%.
The only thing stopping me from pulling the trigger is the thought of my savings account balance going way down. Granted, I will have a balance of around $7k left in the account but what if I have a $10,000 emergency? I don't want to have to use credit again to get me through a rough financial patch. Even though this is one of the major factors of me not paying off the loan, there are numerous benefits to paying the loan off.
By paying the loan off, I am freeing up $551 per month I am no longer sending to the bank each month. Actually, I paid an additional $250 on principal this month so I am freeing up even more cash each month. Paying off the car loan will not only improve my monthly cash flow, it will greatly decrease my debt to income ratio. Paying off my car loan will also help to increase my credit scores above the 720 goal I have set for 2008.
I've asked two of my close friends for advice on how they would handle the situation. Now, I would like to know what you guys think? Should I pay off the loan in full or should I continue to make extra principal payments?
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This is the last part of a 4 part series of what to do with your tax refund. If you have not read parts 1-3, you can view them by clicking the links below:
Maybe you want to sign up for a cooking class or scrapbooking. Maybe you and your family have been working so hard on getting out of debt, you've neglected having an family vacation. If you've covered the above, go ahead and treat yourself (within reason).
If you want to reduce the amount of money to give to the government each month and would like to increase your take-home pay, visit the IRS website and use the IRS withholding calculator. Maybe you can claim one or two more dependents and reduce the amount of federal tax you pay per paycheck.
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Here are some of the articles I've enjoyed from the M-Network and from my blogroll.
Moolanomy: What to do with the Fed Economic Stimulus Package Tax Rebate? I plan to add mine to my Freedom Account.
Beingfrugal.net: Flying Like an Eagle. One line in this post really hit home. "Just when you think you're starting to get ahead, another emergency comes along and you are back at the starting line."
Cash Money Life: What does being frugal mean to you? To me, it means making the best financial decisions I can and not depriving myself.
Gather Little by Little: Confessions of a Personal Finance Blogger. Gibble shows in this post that he is human and makes mistakes like everyone else. The good thing is that he realized his mistake and is working on fixing it.
My Two Dollars: Look up facts about your neighborhood rentals with Zilpy. The average rent in MTD's hood is $2713!!!! The avg 3 bedroom rent is my area is $1163.
From my blogroll:
Beachgirl's Budget Blog: Not so single anymore. BeachGirl has a boyfriend now. I think I will have to kick her out of the singles club.
CleverDude: Pay attention to your insurance bills. Like CleverDude, I recently changed my insurance plan to where I will be paying more out of pocket so I will be sure too look more closely at what I am being billed for.
Dimples' Divine Domain: It is tax time!! Dimps is looking for an accountant to do her taxes. I probably need one but I will do them myself again this year.
Frugal Bachelor: One-Time Expenses vs. Recurring Expenses. I bought my mattress about 3 yrs ago so I am good for at least the next 5 years.
Give Me Back My Five Bucks: Positives and negatives of Week 1 in Vancouver.
Growing Money: New Years Goals for 2008. Better late than never Smarty!
Hustler Money Blog: Holla at Yo Boi!! Hustler is looking to promote his blog. Be sure to visit for some great hustles.
MyDollarPlan: Lists the Top Personal Finance Sites by RSS Subscribers. SingleGuyMoney made it in the TOP 50!
No Credit Needed: Back to the Basics: How to Get Out of Debt.
Please be sure to check out all the great articles above.
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Now that this is a weekly feature here at SingleGuyMoney, I find myself looking for more ways to make sure I save money throughout the week. That, my friends, is a good thing. I thank all of you so much for visiting my blog and leaving your comments, kind words and encouragement. I hope my blog is inspiring you to start fixing your finances.
This week, I saved money by:
Taking my lunch to work. I am already starting to notice the difference in the amount I am spending for eating out. I only went out to lunch one day this week instead of eating out all five days. Estimated Savings: $25.00
MyPoints. I've been a member of MyPoints for over 5 years. This is one of the easiest ways to bring in a little extra money for doing what you already do. Basically, all you need to do is click on the emails they send you and you earn points. You can also earn points by shopping thru their online portal. I'm sure this has been explained on numerous other blogs and websites so I will not go through it again. One tip I will offer is to use a separate email account from your everyday email account. I redeemed my points and received a $25 Target giftcard and a $10 Shell gas card. Savings: $35
Did you save money this week? How did you do it?
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More ways to save Money (Affiliates):
ING Direct - Orange Savings Account - No fees, no minimums. 3.65% APY as of 1/26/2008.
Washington Mutual - Free Checking and 4.75% APY High Yield Savings - Open online with $1.
CoolSavings - Print REAL coupons from your home computer.
Mvelopes - Simple, online budgeting system - Try it free for 30 days.
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Have you already paid off your credit card debt and created your emergency fund? If so, another use for your tax refund can be to give your retirement savings a jump start.
Trying to decide between a Roth or Traditional IRA? Consider the differences between the two and decide what works best for you. Whether you choose a Roth or Traditional IRA, you're allowed to make up to a $4,000 contribution ($5,000 if you are 50 or older) for the 2007 tax year.
What is the difference between a Roth IRA and a deductible traditional IRA? The main difference between the two is that in a traditional IRA, you can deduct contributions from your income in the year you make the contribution. Say you made $40,000 in 2007 and you make a $2000 contribution to a traditional IRA. You can deduct your contribution from your income and your income taxes will be based on $38,000 instead of $40,000. At 59 1/2, you may withdraw funds from your account but you will be forced to pay taxes on all capital gains, interest and dividends that were earned over the years. If you chose to open a Roth IRA with your $2000, you would not receive the income tax deduction. If you needed money from the account, you can withdraw your principal at any time without penalty. If you withdraw any of the earnings from the account, you will be subject to a 10% penalty. When you reach retirement age, you are able to withdraw 100% of your account without penalty. Not everyone qualifies for the Roth IRA due to income limitations. A single person cannot make over $95,000; married couples cannot make over $150,000.
Looking for a place to open your IRA? Consider Zecco.com for free trades and no minimum balance. You may also consider TradeKing. No minimums and no catches. They will also reimburse you up to $150 for transferring your account to TradeKing.
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Yesterday, I shared part one of what to do with your tax refund. Today, I would like to offer another suggestion of what to do with your tax refund. One of the most important things following the first suggestion of opening an emergency fund is paying off debt.
If you are carrying high-rate debt, reducing or eliminating your balance can save you a bundle in the long run. It makes no sense to save money at 3-4% when you are paying anything above 8-10% or more in interest on your debt.
What are the benefits of paying off debt? For one, you are able to sleep better because you are not worrying about how to pay your bills. Second, your credit score should improve. Third, the money your are not sending to the credit card companies makes it alot easier to "pay yourself first."
How much money can you save by paying off debt? Take a look at this example:
- Credit Card Balance: $2000
- Interest Rate: $18%
- Monthly Payment: $50
Follow this link for a great list of debt calculators to figure out how long and at what amount you need to get out of debt.
Be sure to subscribe to SingleGuyMoney to get the next update.
Don't pay someone else to do your taxes. Do them yourself with TaxCut. Just answer the question and TaxCut does the calculations for you.
It's that time of year where all those people who overpaid federal taxes to Uncle Sam are looking to get the money back. I hope people do not look at a refund as a gift from the government. It's your money; you just gave them too much of it throughout the year - INTEREST FREE. If you go to the bank and borrow $2500 for a year, you can almost guarantee you will owe more than $2500.
According to CNN Money, the average tax refund in 2007 was around $2500. If you go to the bank and borrow $2500 for one year, you can almost guarantee when you get ready to pay that money back, you will owe more than $2500. Make sure you speak with your human resources department to find out how to adjust your W4 allowances (more on this later).
Through a 4 part series, I will offer you four tips on what to do with your windfall. Be sure to subscribe to SingleGuyMoney to read the entire 4 parts.
One of the first things you should do with your tax refund is setup an Emergency Fund. I call my stash a " Freedom Fund". You can call yours just plain old savings if you want. The name is not important. The important thing is getting started and getting into the habit of saving. I know there are some people that say $1000 is a good start. If you can do $1000 fine, if not, do what you can. Don't avoid setting up some kind of savings just because you don't have a certain amount. You know what amount is comfortable for you. It may be $100, $1000 or $10,000. Again, the most important thing is to get started.
Need ideas on where to save your money? I recommend ING Direct Orange Savings. No fees, no minimum balance and the ability to open multiple accounts for different savings goals. Want an instant 10% return on your money? Contact me for a referral bonus. Open the account with at least $250 and you get a $25 referral bonus (I get $10 - Thanks in advance). If you are looking for a brick and mortar bank, Washington Mutual is currently offering a free checking account and High Yield Savings account. The rate is currently 4.75% APY but may soon drop like the others due to the latest fed rate cut.
This is definitely something you should not miss out on. Kiplingers is having Jump-Start Your Retirement Plan Days coming up on January 25, 2008. They are offering FREE advice from planners who are members of the National Association of Personal Finance Advisors (NAPFA).
Normally, the charge is anywhere from $100 to $250 an hour but on Friday, January 25, 2008 from 9am to 6pm ET, you can ask your questions absolutely FREE.
The planners are well versed in a number of topics including:
- Investments
- Taxes
- Insurance
- Estate Planning
- College Savings
- Retirement
You may submit your question online via this link, anytime between now and 6pm on Friday January 25, 2008.
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Kiplingers.com interviews SingleGuyMoney
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I'm a little under the weather today. I knew it was coming since so many of my coworkers have been sick lately. I've slept most of the day thanks to multiple doses of cold medicine. I know there are alot of new readers to SingleGuyMoney so I figure this would be a good time to highlight some popular posts from the last few months.
Mistakes and Corrections: This is a detailed post on how I got deep into debt.
My Bad Habits are Costing Me: I realized I am drinking and smoking away my future.
SingleGuyMoney is MAD: Read about what made me so mad.
I want to be rich like you: My teenage cousin thought I was rich.
Married Folks and Money: My coworker hides money from her husband.
I hope you enjoy these articles from the archives and I hope I feel better tomorrow!
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I posted this question last week and the response was very favorable. I'm thinking of making it a regular weekly post here at SingleGuyMoney. What do you guys think? Should I make this a regular weekly post? One of the reasons I want to do this is by having the viewpoint of thousands of different people, we probably can come up with some pretty good ideas to save money.
This week, I saved money by:
Taking my lunch to work. Eating out is one of those areas in my budget where I always overspend. I am not a cook and do not cook at home. I figure if I really had to, I probably could. I went out and bought some bread, cheese, chips and a 12 pack of Pepsi. I took my lunch to work 3 days this past week and ate out for lunch 2 days. I only had to pay for 1 day as my boss took me out to lunch one day. Estimated Savings: $25.00
Paying my auto insurance with a credit card. My auto insurance was up for renewal this month and I had the money saved for this bill in my freedom account. I paid with my credit card that is currently giving me 5% on purchases for three months. I then scheduled a payment from my freedom account to pay off the credit card balance in full. (Note: If you are not able to payoff the credit card balance in full, I do not recommend using this strategy. The finance charges you pay will probably wipe out any savings). Estimated Savings: $87.00 ($42.00 in credit card rewards and $47.00 credit for paying my premium in full).
Did you save money this week? How did you do it?
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More ways to save Money (Affiliates):
ING Direct - Orange Savings Account - No fees, no minimums. 4.10% APY as of 1/19/2008.
MyPoints - Free Rewards for shopping online, completing surveys and playing games.
Insurance.com - Get multiple free automobile insurance quotes.
Mvelopes - Simple, online budgeting system - Try it free for 30 days.
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I had my annual performance evaluation for 2007 yesterday. My company does performance evaluations twice a year but raises are only given once a year. Last year, I had an excellent performance review which resulted in a 4% raise. Since I exceeded the company expectations last year, I received a raise and merit cash. The amount of the merit cash received is determined by 5% of your yearly salary.
This year, I was hoping to exceed company expectations again to be able to get another merit cash payment. Unfortunately, I did not exceed company expectations but I did fall into the highest performance tier. As a result, I was able to get a 5% raise and a $500 cash bonus. I was a little bummed about not getting the merit cash but I quickly realized, some people did not get a raise at all this year. Some people are even hoping they are able to get a job to be able to make money. I quickly realized, I am very, very fortunate to have a good job with a good salary and job security.
This year, I am making a conscious effort to make sure my expenses do not rise to meet my new income. Out of my 5% raise, I am adding an additional 1% contribution to my 401k. The rest of my increased biweekly income will go into savings and towards debt payments.
Did you get a raise this year? What do you plan to do with the increased amount of salary?
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I just received my automobile insurance renewal packet and for the first time, I really reviewed what coverages I have and what I am being charged for those coverages.
This is another area of your finances where it is important to pay close attention to what you are getting for your money. Many people stay with an insurance company so long, they don't bother to shop around for a better rate. Shopping for insurance is about as fun as going to the dentist but just like going to the dentist, it is necessary.
I just realized I am getting a number of discounts such as:
- Multiple Policy. I have my homeowners insurance, auto insurance, rental property insurance and umbrella policy with the same company.
- Paid in full. I save enough money in my freedom account to be able to pay my insurance premiums in full. I take the total amount of the premium for the year and divide it by 12. I then take that amount and have it directly deposited into my savings account each month.
- Good Payer. The insurance company I am with has not had to send my a cancellation notice as I pay my policy in full prior to the due date. As long as I continue to do this, I will keep getting the good payer discount.
- New Car. My car is less than 2 years old so I am getting a discount on my insurance premium. This is one discount I would mind not getting if my car was older and paid off.
Insurance.com - Instant auto insurance quotes from the top insurance companies. Customers saved an average of $451.
InsureMe.com - Instant quotes on auto, health, home or life insurance.
I just can't take it anymore. Every time I look at my 401k or my brokerage account, the balance gets lower and lower. I have a habit of checking my financial accounts every day just to make sure everything is the way it is supposed to be. With the help of the My Portfolio tool from Bank of America, I am able to not only able easily view the balances and transactions my checking and savings accounts, I am also able to view my investment accounts also. This is a feature that I really, really like but lately, I have been hating it. Everyday, I see the balance in my investment accounts drop like a By seeing my investments lose value every day, I am starting to get really discouraged with investing. I keep trying to tell myself that it does not matter about the current dips in the market.
If you are like me and are getting discouraged with the market, you must remember these important facts:
- Time is on your side. If you are 15, 20, 25 years away from retirement, you have plenty of time to make up the current losses.
- Take advantage of the down market. Purchase more shares of your favorite stock or mutual fund at the lower price. Buying shares at various prices is called dollar cost averaging. You are essentially spreading out the cost basis of your investment which will make up for the temporary dips in price.
- Don't panic! Like me, you may be tempted to sell all of your investments and look for safety in a plain old bank money market account. DON'T DO IT! The stock market has historically outperformed savings accounts by a few percentage points.
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Related Posts:
Take Advantage of your 401k
What's in my 401k?
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Here are some of the articles I've enjoyed from the M-Network and around the blogosphere.
M-Network blogs:
Beingfrugal.net: How I Taught My Preschooler the Value of a Dollar
CashMoneyLife: What temperature do you set your thermostat?
Gather Little by Little: The Money Savings Methods Report
Paid Twice: Don't Make the Fatal Flaw in Budgeting
Moolanomy: 6 Easy Ways to Simplify Your Finances
My Two Dollars: Shave Money Off You Very Last Bill - Saving on Funeral Expenses
Plonkee Money: January Book Review: The Money Diet
The Dough Roller: DR to donate 50% of it's revenue to charity
From my blogroll:
Frugal Bachelor: I did it - I downsized my living space
Working for Freedom Freedom: Brought the Snowball Back
The Frugal Duchess: My Teenage Son Paid Me 16 Cents to Clean His Room
CleverDude: Eating healthy for low cost
DebtFree4ever: Becoming and Staying Debt Free: I must stay focused
Make sure you visit the above articles for more great information.
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One of the ways I am trying to keep a little more of my income is to save money on my regular purchases. There pretty much is no way around having to buy the basics like deodorant, shampoo, toothpaste, mouthwash, floss, etc. It may take a little extra time and effort but it can be done.
I saved money this week by looking out for deals in the Sunday paper. If you live in a medium to large city, the Sunday paper is usually chocked full of coupons for those everyday items. By spending $2.00 for a newspaper a few weeks ago, I was able to save $35 yesterday. There is a prescription I take that costs $5 after insurance. I was able to find a coupon in the paper for a free $30 gift card for transferring my prescription to another pharmacy. There was a $5 coupon for any purchase over $25. I transferred the prescription and got my $30 gift card. I then used the $30 gift card to stock up on things like deodorant, shampoo, shaving cream, lotion and toothpaste. The total of those items came up to $34.97. I then used the $5 coupon and brought the total down to $29.97. I paid for the purchase with my free $30 gift card I got from the pharmacy. Here is a breakdown of how much I saved:
- Newspaper: $2.00
- Prescription: $5.00
- Purchases: $34.97
- Total: $41.97 - less $5 coupon, less $30 gift card = $6.97 out of pocket.
Did you save money this week on your regular purchases? How did you do it?
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One of my 2008 financial goals is to have at least a 720 credit score with the 3 major credit bureaus. In checking my credit scores today, I am two-thirds of the way to my goal.
Equifax Score History:
- 694 on 11/14/2007
- 709 on 11/27/07
- 765 on 1/12/2008
- I'm pretty happy with this score as most creditors in my area pull Equifax.
- 707 on 11/14/2007
- 701 on 11/27/2007
- 728 on 1/12/2008
- 706 on 11/14/2007
- 706 on 11/27/2007
- 712 on 1/12/2008
- Not sure what the deal with Experian is. My score hardly ever changes and has been the slowest one to increase.
What have I done to increase my credit scores?
- Paid all my bills on time. This is 35% of your credit score. Having a late payment reported can send your credit score into a downward spiral. A late payment can stay on your report for up to 7 years.
- Having a good mix of credit. This is 10% of your credit score. Having a good mix of installment loans, credit cards and mortgages is good for your credit score. This is really important if you have a short credit history. Obviously, you should not apply for new credit just to have different types of credit if you don't need it. This will actually hurt your credit in the short term.
- Having a low amount of debt in relation to available credit. This is 30% of your credit score. The closer you are to maxing out your amount of available credit, the more negative the impact to your credit score. Paying off the remainder of my credit card debt definitely helped to improve my score.
- Length of credit history. This is 15% of your credit score and is something that simply improves with age. The oldest credit line on my credit report is over 12 years old.
- New Credit. This is 10% of your credit score. Every time you apply for new credit, the lender checks your credit score. This causes an "inquiry" on your credit report and can decrease your score 2-3 points. Multiple inquires in a short amount of time can also send your credit score into a downward spiral. Shopping for a mortgage or car loan is considered as one inquiry if done within a 30 day time period. I've only applied for credit one time in the past six months and that was when I applied for the Discover Business Card.
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I checked my account at ING today and they've reset the number of referrals I have available.
If you need to open multiple accounts to save for different goals, ING is a great choice. They are really good about allowing you to have multiple savings accounts. Now is a great time to start saving for all the goals you set for 2008.
If you would like to get a $25 bonus (I will get $10) for opening a new account, you will need to open the account with a minimum of $250. The rate as of 12/13/07 is 4.1% APY. By getting the $25 bonus on your initial $250 deposit, it's like you are getting an immediate 10% return just for opening the account.
To get a referral to open a new savings account OR an Electric Orange account (the bonus is paid on one or the other but not both), please click here to send me an email with your first name. I will send you an email with the referral link to open the account. I do not keep or sell your email address and I do not have access to any of your financial information.
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Related Posts:
New Electric Orange Account
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It's that time of year where everyone who's given the government a free loan is looking to get that money back. One of the largest tax preparers in the country has figured out another way for you to get your money fast. H&R Block has come out with an Emerald Card Mastercard. When you have your taxes done at a H&R Block tax office, you can choose to have your refund put directly on the debit card. This is may be good idea for those that do not have a bank account. If you have a bank account in good standing, you can save money by having your refund deposited directly into your existing checking or savings account for free.
The debit card is free to get but you will pay the following fees:
- Withdraw money from an ATM - $1.85 each in addition to any charges the ATM owner may charge.
- Balance Inquiry - $1.00 per inquiry at an ATM. Free if you check online.
- Speak with a live customer service agent - $2.00
- Card lost or stolen - $10.00 replacement fee
- Paper Statement - $1.00
- Express Delivery for your card - $35.00
- Of course, there is no fee to add additional money on your card.
Note: I am not advocating this card and I am not affiliated with H&R Block.
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Other Posts You Might Enjoy:
My Cheaper Alternative to Starbucks
It's Raining Money
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Most companies these days offer 401k retirement plans to help you save money tax-free for your retirement. If you are offered a 401k plan through your employer and you are not taking advantage of it, DO IT NOW.
Luckily, my employer allows us to participate in our 401k plan after 30 days of employment. Some companies make you wait up to a year before you can participate in the company 401k plan.
If you currently have a 401k, don't make these common mistakes:
- Using your 401k like an ATM. I've been guilty of this myself. There is no other (legal) way to get money so easily. With my plan, I can log in and go to the loan section and it will give me a preapproved loan amount and the interest rate. If I choose to borrow the money, I can have the money in my checking account in as little as 48-72 hours. By borrowing money from my 401k, I am losing the opportunity to have that money grow and compound in my account. Not only that, if you leave the company, your are required to pay the money back immediately or be subject to taxes on the money and pay a 10% penalty.
- Not taking advantage of the company match. My company offers up to a 3% match when you contribute at least 5%. I've always been sure to contribute at least 5% to get the full 3% match. Not taking advantage of the matching funds is like leaving money on the table.
- Too much company stock. It is certainly not a good idea to have too much company stock in your retirement account. If the company goes under, not only would do you lose your paycheck, you will lose your retirement money too. Remember ENRON!
- Taking the money when you change jobs. There is nothing wrong with this if you plan to roll the money into a IRA. What you don't want to do is treat it like extra money. Remember, the IRS still won't let you have this money without hefty penalties for early withdrawal.
- Not fully understanding your options. One of my coworkers has been with the company for 5 years. She did not understand how the 401k worked and only elected to contribute 1% of her pay. Not only that, she directed 100% of the money to a money market type fund. I actually spent a few hours after work explaining her 401k options and she's made some major changes. She is now contributing 5% in order to get the full company match and she has chosen a more diversified portfolio.
When you are retire, don't you want to be hanging out on the golf course instead working?
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Related Posts:
What's in my 401k?
Where did my 401k money go?
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When I make my mortgage payment each month, part of the payment is for my escrow account. An escrow account is an account you pay into each month along with your mortgage payment to handle payments for property taxes and insurance. You earn no interest on this money but I'm sure the bank makes a little money off of it. The bank usually reviews the escrow account once a year to determine if they are taking too much money or not taking enough.
I logged into my mortgage account today to make sure all of my taxes had been paid for 2007 and realized my escrow balance is alot higher than it should be. The balance of the account right now is $1114.00!!! I currently pay $289/month into my escrow account which is equal to $3468 after 12 months. Last year, my property taxes were $2354.
What if I handled my own escrow account??
- I would make about $71 in interest. Depositing $217 a month into a savings account paying 5.05% (E*Trade) would yield $2675. ($2604 in contributions and $71 interest)
- I would have an additional $72 each month to add to my freedom accounts or towards my car loan.
- By handling my own escrow account, I would have an additional $935.00 a year to save or invest. ($72/month savings and $71 interest)
I Want to Be Rich Like You
SingleGuyMoney is MAD!
Have You Changed Your Behavior
Yesterday, I gave a shout out to all the Single Bloggers but apparently I missed some. Here is the original post and the additional blogs are listed below:
The World of Wealth - A young professional female blogging from Texas.
How I Save Money - A struggling college student operating on a tight budget.
Windy City Blues - A 30 something female blogging from Chicago.
Sorry I missed you guys!!
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It's so hard getting back to work after having so much time off for the holidays. For the last few weeks, I've only been working 2-3 days a week due to the holidays or being on vacation. Tomorrow will be my first full work week of 2008. I'm sure many of you are going back to work for your first full week too.
As you prepare to start your week, take a look at some of these great articles I've enjoyed around the web.
From the M-Network:
- Being Frugal hosted The 2nd Carnival of Financial Goals. Lynnae (and Sam) did a great job hosting the carnival. Sam (Lynnae's son) took us on an interesting walk through their town.
- Cash Money Life reviewed the book - You're Broke Because You Want to Be by Larry Winget. Larry is the host of Big Spender on A&E.
- Gather Little by Little posted 6 Ways to kick off your personal finance New Year the right way.
- Paid Twice says It's Always Good to Have a Backup Plan. This is where I made so many mistakes in the past. I never had a "Plan B" and relied on my credit cards.
- My Two Dollars lists the Top Three Legal Documents Every Person Should Have. I need to act on this because I don't have any of those.
- Plonkee Money posted about Where did my money go last year?
- The Dough Roller posted A Helpful 401k and IRA Rollover Chart.
- Dimples Divine Domain posted a helpful way to organize her goodies.
- My Open Wallet is working on her 2008 Budget.
- My Dollar Plan has an ongoing debate with DebtFreeRevolution on Credit Cards.
Mistakes and Corrections - Detailed post on how my debt was accumulated.
When I get out of debt I want to... - My list of things I want to do once the debt is gone.
MidYear Debt Review - How did my debt numbers look six months ago? Look at this article.
If you've enjoyed this post or reading about my personal finance journey, please subscribe to SingleGuyMoney. Be sure to visit SingleGuyMoney to leave a comment or for more great articles.
The writers of most of the blogs I read are married. There are not that many blogs out there (that I know of) written by non-married people. I wanted to give a shout out to the other blogs I read that are written by a single guy/girl.
In no particular order:
Frugal Bachelor - A single guy in his early thirties from Texas.
Dimples' Divine Domain - A single mom in Florida.
Single Ma's Fabulous Financials - A single mom in VA. I should also mention that Single Ma is debt free!
Boston Gal's Open Wallet - A single 30 something living in Boston. BG is also debt free!
Beachgirl's Budget Blog - A mid 20's professional living in the DC Metro Area.
Are you a single, blog about finances and I don't have your blog listed? Let me know so I can check it out.
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I had a reader ask a question of how my 401k was invested. Since I need to review my allocation anyway, I figure why not share with everyone.
I currently invest 5% per paycheck in my 401k and my company matches 3%. This is the maximum amount they will match so I make sure I take advantage of all the "free" money I can.
The current balance in my 401k is $40,839.88 and is invested as follows:
- 35.21 % Fidelity Diversified International
- 23.09% Fidelity Low Priced Stock
- 17.12% Vanguard Total Stock Market Index
- 14.35% Oakmark Equity & Income
- 3.89% Vanguard Value Index Fund
- 2.83% Company Stock
- 2.68% Fidelity Midcap Stock
- .71% ABF SmallCap Value
- .11% Fidelity Dividend Growth
I started 2007 with a balance of $32,788.64 and after $3,260.95 employee contributions, $2789.33 employer contributions, $2,949.10 in dividends and interest, and $3,068.84 in value appreciation, I ended with $41,903.30. Fees for the year were $4.46.
Important Note: I am not promoting any of the above funds or advocating this investment strategy.
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Related Posts:
Where did my 401k money go?
My 401k is Kicking Butt!
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If you've enjoyed this post or reading about my personal finance journey, please subscribe to SingleGuyMoney. Be sure to visit SingleGuyMoney to leave a comment or for more great articles.
The M-Network, friends of the M-Network and I wanted to do a Net Worth roundup to highlight our financial accomplishments for 2007. Some of us choose to reveal our Net Worth, some only choose to reveal percentages and some choose not to reveal at all. No matter which method is chosen, hopefully this post will inspire you to track your financial progress if you don't do so already.
SingleGuyMoney's 2007 Financial Highlights:
- Paid off all of my credit card debt.
- Found an additional rental property and almost purchased it. I saved myself thousands of dollars and a big headache by not buying the property. Read that story here.
- I accomplished my goal of $65,000 Net Worth.
- Fully funded my Freedom Account.
- Increased total Assets by 1.94%
- Decreased total Liabilities by 6.22%
- Overall Net Worth increase of 104.81%. I actually doubled my Net Worth in 2007.
- Check out the December Net Worth wrap-up here.
- Net Worth 2008 from