Random Personal Financial Thoughts

I've been MIA for most of the month on this blog due to a busy schedule, but personal financial concerns are still (let's be honest ALWAYS) on my mind:

• I’m thinking about cancelling my gym membership because I use it so sporadically. I do enjoy the amenities of a gym, but I can find alternative ways to exercise for less money. For example, I recently discovered that there is a public swimming pool walking distance from where I live that is free for DC residents! That $45 per month could be padding my emergency fund instead of paying for my (infrequently used) gym membership.
• I plan on making July a low-spend month by limiting my travel and extraneous spending. I’ll also try to limit my restaurant/take-out meals and take advantage of free events that are going on in the city instead.
• I purchased one baby shower gift this month and have to purchase two more baby shower gifts within the next few days. Buying baby shower gifts a few times a year for close friends and family members comes with the territory of being a 20-something female, but they aren’t usually clustered so closely to the same time period for me. I need to replenish my gift fund for unexpected gift giving so I’m better prepared.
• For me personally, picking up a new book for my Metro commute is just as fun as buying something new. The D.C. Public Library is such a great resource! As soon as I have free time, I'll pick up some French language software, since I’m still saving up for Rosetta Stone.
• It’s time to start thinking about an aggressive repayment plan for my student loans since I will enter my last semester of grad school in the fall and my in-school loan deferment will end. I’m thinking of using an approximation of the ‘debt snow ball method’ and paying them off from smallest balance to largest balance.
• My Roth IRA and 403 B accounts seem to be increasing so slowly. Meeting my goal of having as much money in my retirement accounts as I make on my (current) annual salary by age 30 seems kind of lofty at the moment. But I believe it’s still attainable.

What random personal financial thoughts do you have on your mind today?

Upside of being housebound because of the snow

I have a bit of cabin fever because my office has been closed because of the snow we've gotten here in the DC area. But here are a few things that I have accomplished with the extra time I've had on my hands:

• I've spent less money because I haven't done any shopping outside of food since I've been back in town
• I've eaten healthier because I've cooked all of my meals (no fast food or extraneous snacks)
• I finally caught up on all of the great blogs in my reader.
• I finished reading a cute novel
• I started a five page assignment that's due this weekend
• I exercised a bit
• I did all of my laundry
• I started working my way down my task list for my non-profit endeavors (started is the operative word, but I'm still putting it down)
• I watched my latest Netflix movie which has been languishing in my apartment for the last two weeks
• I figured out how to make collages in Photoshop

Verdict is still out on if we'll actually get more snow as they've been predicting for the past few days, but even if we don't I'm feeling good and productive!

Am I the only one that still likes writing checks?

I'm sure I'm in the minority in this, but I still like writing checks. To me, writing checks signifies that I'm "really a grow-up" because for so many years I watched my parents and other adults do this. I remember actually writing my first mock-check in the 6th grade, before this, I just watched other adults write checks. My middle school didn't have a personal finance curriculum but my teachers did teach us life-skills types of things like writing checks and being able to read a the stock market page in the newspaper. I have set up automatic bill pay for many of my reoccuring bills, so the occasions where I need to write checks are lessening. Not using checks is a greener method of paying bills and I'm sure that one day when I'm old and grey I'll be explaining to my grandkids how 'back in the day' we used paper to write checks because they will be long gone.

I don't love money, I just love the freedom it gives me

I had a really random conversation with a fellow Metro train rider last night after leaving a blogger happy hour that My Pretty Pennies described today . I came to the conclusion during this conversation that I don't love money, I just love the freedom that it gives me. My fellow Metro rider, whose name I didn't catch during our brief convo saw me reading a book about money and the law of attraction I found at my local library. Now before some of you roll your eyes about my reading choice, while I am a bit skeptical about some of the things in the book, I believe that the major theme; thinking positively to reach your goals or "attract" them to yourself is very valid.

Now back to the conversation, here is a paraphrase of the conversation:

Fellow Metro rider: "So do you believe in this stuff *pointing
to my book*, that you can attract money?"

Me: In a way, yes, I believe that having positive, affirmative thoughts are important in reaching goals including attracting money. But it also takes concerted effort, it's not magic."

Fellow Metro rider: "Do you want to attract money?"

Me: "I really want to attract what money offers, which is freedom. I'm not money-hungry, or obsessed with it. I want the freedom to pursue my dreams that being financially comfortable offers. It would also allow me to give back to others in some way.

Fellow Metro rider: "So money can bring happiness?

Me: "I believe money can make the physical aspects of living easier and sometimes more fun. But happiness to me comes from personal fulfillment and is more so determined by emotions than material stuff."

Fellow Metro rider: You would never know that some people have money.

*Followed by a brief tangent about Warren Buffett and how unassuming he is despite his wealth.*

Me: "Well this is my stop. Nice talking to you! *Hand-shake*

Fellow Metro rider: "You too!"

I can say a lot of (good and bad) things about taking public transportation in DC, but I always meet interesting people. I once had a random conversation about the poet Rumi with a fellow rider who saw me reading the Alchemist by Paulo Coelho. I have the feeling that if I had rode a while longer with fellow rider, he would have launched into some sales pitch about a product he was selling or something; people that start random conversations with me about wealth and money usually do, but I could be wrong, I'll never know...

Have you had any interesting (or random) conversations about money lately?

My Dream Christmas List

I feel truly blessed, there is absolutely nothing I need for Christmas. I have food, clothing, shelter, a loving family and great friendships in my life. But here are a few of the more unrealistic items (I'd never ask for in real life) on my dream wish list.

Is there anything on your dream list Christmas list (Hanukkah, Kwanzaa...) you'd ask for if money weren't a contraint?

Images: Chanel.com, Modcloth, Amazon.com, Greatdogssite.com

No Shopping for Me, Even In my Dreams...

For whatever reason, I don't normally remember my dreams these days, or I remember only fragments. So imagine my suprise that I remember vividly dreaming last night that I went on a shopping excursion to the Buffalo Exchange in my hometown and wouldn't even allow myself to shop in my dream! I wandered around the entire store and didn't buy a thing. I even took some clothes in to trade but ended up just getting the cash value for my items instead. This is strange for me because I love this store! It's no Beacon’s Closet , but it's convenient to visit on my trips home. I guess my resolve to cut out the unnecessary spending has leaked over into my subconscious also. Weird.

About Me Part II

I haven't been tagged for a meme recently, but I thought I'd share a few random facts about me anyway:

1. My family cat is an emotional eater. When he's been left in the house alone a lot, he gobbles up his food and makes himself sick. His food portions have to be closely monitored.
2. I have to say the word nosey in my head before saying it out loud because I grew up pronouncing the word "newsy." I'm not sure if that's a family quirk or actually a real word.
3. I get mistaken for Ethiopian occasionally and have had people come up to me and start speaking to me in what I assume is Amharic several times over the past few years.
4. I get called 'little lady' occasionally by strangers. I don't take offense because I am literally a 'little lady.' I'm small and short in stature.
5. I didn't know what a credit score was until my freshman year of college when my roommate (now one of my BFF's) explained it to me. I learned what an IRA was from another friend during my sophomore year. My good friends are always passing along valuable information to me!
6. I read the wedding announcement feature articles in the style section of the New York Times on Sundays. They are usually well written and I'm a sucker for 'happy endings.'
7. If I see a piece of clothing that's in what I would consider a reasonable price range, I'll buy it in a heart beat, but cringe at the idea of spending lots of money on restaurants and take-out.
8. I will never like Go-go music no matter how long I live in DC, though I have respect for it.

Anyone who is reading this can consider themselves tagged!

Random (Mostly) Personal Financial Thoughts

• I am kind of bummed that I missed my middle school's (yes, middle school) informal reunion/happy hour last Friday. But I couldn't rationalize spending the money to travel to my hometown when I know I'll be home for Labor Day. It looked like it was a lot of fun from pics posted on Facebook though...
• With the exception of a few tops and colorful tights, I'm done fall clothing shopping. I'm getting a lot of inspiration on how to wear stuff I already have from cruising my favorite style blogs on the Internet.
• I'm going to start saving $50 more per month in my emergency fund, just because I would feel comfortable with having more saved than I currently do. I believe I was aiming kind of low with my annual goal.
• I'm going to try my hand at teaching myself to sew before I spend money on lessons. I cringe everytime I have to take a piece of clothing the Cleaners to get tailored, the cost adds up. I'm currently investigating sewing machine options, any suggestions would be appreciated!
• I've been ruminating on purchasing tickets for a concert this fall, I think I'm going to just go ahead and do it, because I believe the artist I want to see is worth it.

Living in the moment

Do any other twenty-somethings have a difficult time living in the moment and instead of focusing on the next big goal? I do! Always at the edge of my mind are:

• The day when I can afford buy my own house (more specifically, condo)
• The day when I complete my graduate degree
• The day when I pay off ALL of my student loans
• The day when I have one year of living expenses saved up
• The day when I meet less important savings goals like saving up for my first car (yes, I've been out of college three years now and still haven't yet gotten a car-it's a want, not a need for my current lifestyle)
• The day when I can afford to take an international trip on a whim
• The day when I get married
• The day when I start my own family
• The day when I can afford to retire
• The day when I publish a novel
• I could go on and and on....

But the journey is sometimes just as important as the destination, and I am trying to remember that instead of focusing on the "next big thing." There are some great things about the point I am in my life right now and it's time for me to take a breath and just...enjoy!

Window Shopping - Dresses

Dark Room Dress

Palm Beach Dress

Rajastan Maxi Dress
Mind’s Eye Dress

I haven't ordered anything from this website before, but I love looking at all of the lovely dresses they have. Happy Friday!

Am I the Only One...

Am I the only one that looks forward to payday not because I'll have some money in my pocket to potentially spend; but because that means my monthly automatic transfer to my Roth IRA will take place. So this means my account balance has grown just a bit. It's more fun than looking at my current student loan or credit card balances because the progress is much slower on paying them down...

I promise I will have a substantive post very soon!

Lessons learned recently

I have been quite neglectful of my blog with the exception of sporadic posting these days, but I haven’t forgotten about Small Budget ,Big Style. I finally feel like I can breath easier now that my spring semester has ended and my summer classes have not started yet. Here are some updates/recent lessons learned:

• Some technology upgrades do make my life easier. I recently decided to bite the bullet and purchase an iPhone. My cell phone bill is not that much higher than it was with my previous cell phone and plan. I also cut my landline to allow for more room in my budget. I plan to start using Skype or iChat when necessary, but see since my cell phone service works better in my apartment with my new phone, I can do without the landline. I like Apple technology and wanted a PDA phone that could help me manage my schedule, email and also had other features that would interest me. After about two weeks, I love being able to manage my email (work and personal) and respond back immediately to people. I am also an innately curious person, so I love being able to Google any idea or person I’m curious about immediately. I also like the fact that since I have a Macbook, I can synch my cell phone calendar and the calendar on my computer. I see how you can become a little too dependent on technology, but if used in moderation, it can really make life easier.

• I need to work on managing my time better. Some things on my things to-do list have gone by the wayside recently like staying on top of all of my email accounts, posting regularly on this blog and exercising regularly. I believe I do have time to do all of the things I’m interested in, I just need to manage my time better. I need to train myself to wake up earlier because I really am more productive in the mornings and either read/do homework, exercise, work on blog posts for an hour each morning before I get in my day because I normally don’t feel like doing any of those things at the end of the day.

• You really do learn to live on what’s left over when you increase savings. I opened a Roth IRA and now have money automatically taken out each month as I also do with my Emergency savings fund and I realize I should have done it sooner, because I don’t miss the money and I really can manage on less if forced to. Next year I will set the goal of maxing out my IRA, but for now, I want to continue with other savings goals.

• I thought Twitter was a little silly at first, but now I actually like it! I jumped on the bandwagon with Twitter and you are welcome to follow me/tweet: @SBChick. I actually Tweet much more now that I can access Twitter on my phone. It’s a great way to connect with people I love getting news updates, or chatting with people, seeing what interesting links people are ‘tweeting’ about.

• I need to try baby steps for my next shopping moratorium. My shopping moratorium for the first six months of the year was a failure. I was good until my birthday month of March with no shopping and then just could not sustain no shopping after that. I do plan to try it again in the future, but not for such a long stretch. I plan to do a shopping moratorium again but for 30 day increments and eventually work my way up to six months. It’s a good check to do from time-to-time to test if you really need the items you want to purchase. I want to focus on quality not quantity for clothing and other non-essential purchases for the future. I am by no means anti-shopping, but I want to learn to shop smarter in general and not just buy things on a whim, which I have caught myself doing before. I am amazed by bloggers I read regularly that are so disciplined at cutting non-essential spending saving large amounts of their income and want to do so also.

Have you learned any lessons/insights about yourself recently?

Things that make me happy, but don't cost me money

1. Having a good laugh with a friend over something silly (can't be serious all the time).
2. Spending time with my family (my biological fam and people I've claimed as family over the years).
3. Figuring out a new way to wear something I already had in my closet.
4. Sunny days.
5. Hot cups of green tea (all year-round, I'm weird like that).
6. Seeing progress toward goals.
7. Finding a DVD at the library that I wanted to see for a while.
8. Unexpectedly seeing a friend in a random place or setting.
9. Riding (I don't drive much) through Rock Creek Park (in DC) or Fairmount Park (in Philly) on a sunny Spring day with the windows down.
10. Hearing my favorite song of the moment on the radio.

Brief Hiatus Until Next Week

I have let my graduate school class get the best of me and have to catch up on assignments and reading. Getting a quiz every class period makes my class a higher priority than usual at the moment. That along with the fact that I have never taken this type of class before is daunting. Regular posting will resume by mid-week next week. I clearly need to do a post on time management along with others I have in mind because I have not been managing my time wisely...

Babysitter to the Stars

This WSJ story isn't really personal finance related, but I found it interesting, so I thought I'd share this article about a man paid to be a babysitter to athletes. This guy sounds like an uber connector case study from a lost chapter to a Malcolm Gladwell book. I have no aspirations of becoming a celebrity babysitter to make extra money, but I am drawn to stories about people who network themselves into interesting jobs and opportunities in general.

"Many of the star basketball players descending on Phoenix today for the NBA All-Star Weekend will be calling a sitter -- and not for their kids. In a world that's become increasingly fraught with danger for superstar athletes as potential predators wield cellphone cameras at every turn, Julian Jones has carved out an unusual -- some might say enviable -- niche for himself. The lanky 27-year-old is the world's most sought-after athlete wingman.

Part companion, part publicist, part chaperone and part guardian angel, Mr. Jones, who lives in Las Vegas and works for a pair of casino owners, specializes in setting up elaborately arranged outings for athletes where every detail from transportation and tickets to the members of the entourage is premeditated...

Using a combination of street smarts, tips from veteran superstars like Shaquille O'Neal and ancient Chinese military tactics gleaned from reading Sun Tzu's "Art of War," Mr. Jones has become so adept at protecting his charges from ugly situations and nightclub mayhem that he's become a trusted ally of athletes across all sports leagues. NBA stars from Kobe Bryant to Amare Stoudemire have joined his entourage in Las Vegas. He rang in the New Year with Michael Phelps, escorted New York Yankees pitcher CC Sabathia and his son to a fight this month, and in January accompanied Dallas Cowboys wide receiver Terrell Owens to a party."

Things That Annoy Me...Can You Really Afford That House?

I love interior design and shows that revolve around home purchasing. So I often watch the cable stations, Home and Garden Television (HGTV) and The Learning Channel (TLC) when I can find nothing else to watch on television. Lack of programming that actually interests me on cable happens often enough that I question if I should get rid of the cable altogether, but that alas will be pondered on in another post.

I like shows like House Hunters, My First Place and Property Virgins. But something annoys me about these shows. Every so often whether the show I am watching focuses on a single person, a couple, or a family with children, they inevitably choose a home that completely falls outside of the budget they set. And sometimes, according to the shows, these people actually buy homes that fall outside of what they can comfortably afford. Depending on the show, you get more or less info on the prospective homeowner's finances.

I understand that some of these shows may be reruns that were shot before the economic turbulence the American economy has been experiencing due in part to mortgage loans, but some of them are fresh episodes. I know people have certain expectations in mind when they take the major step to purchase property, but what is so hard about staying within budget to avoid financial drama down the line? Seems pretty simple to me, but then again, I am not ready to be a homeowner yet.

Buy Obama Inauguration Paraphenalia to Stimulate the Economy?

It could be because I live in the District and the excitement about the upcoming inauguration has reached fever pitch. The whole city is turning upside down to prepare for the mass of thousands expected to start coming to town in a few days for the inauguration and festivities surrounding it. Is it just me, or is every one from fashion designers to retail stores hawking Obama-related paraphenalia? From Urban Outfitters, to Obama Metro cards to Etsy artisans, to designers like Diane Von Fustenberg, to this visual artist I've seen on my weekend jaunts to Eastern Market with original Obama portrait paintings; it seems like every one has jumped on the bandwagon to buy/sell Obama related items.

Darn my shopping hiatus...as much as I'd like to do my small part to stimulate the economy with a memento, I have temporaily banned myself from buying clothing/accessory items for the next six months. Oh well, any one who is planning to/has already purchased mementos, just make sure it fits in your budget!

Fashion Eye Candy I Have No Intention of Buying...

All of these items are from Top Shop US. One of these days, I'll make it to New York, so I can look around an actual store and not peruse their website. I have too many other things to pay for to spend money on clothing right now, but I can dream can't I?

Random Thoughts and Goals

Graduate School - The first session of the fall semester is over and I'm once again getting sticker shock from the price of textbooks. Oh well, I will have to get over it because I have to purchase the books to stay on top of my reading and assignments. I am taking two classes this session and have purchased two books and will purchase the other two today. I only have to go to campus one day a week because one class is online, so that will save me a little money on transportation to campus and food to eat before class.

403b Contributions - I have decided to increase my 403b contributions again to the max for me to receive the 5% match my organization offers. I didn't even notice the difference in my take home pay when I made my last increase during the summer, so I don't think this one will make much of a difference either.

Emergency Fund - I plan to add $274 by the end of the year to bring my Emergency Fund total up to $2000. It would be great to add more, but the $274 amount is the minimum. I will soon be making a short term goal amount to get me closer to my $5000 goal.

Travel - I have to pay a deposit for a trip I am taking early next year to Las Vegas. It is $100, so I will pay that with the $100 total in my travel fund and add $25 to that. I won't be adding anymore to my travel fund until next year. I still have to apply/pay for my passport renewal. That goal may have to wait until next month.

Gifts - I still have to come up with an amount that I will spend on holiday gifts...That will most likely come out of my first November pay check.

Discover Card Pay Off - Purchasing textbooks and other unexpected expenses threw my plan out of wack to put $1000 on my Discover Card balance with my extra October paycheck. I made a $500 payment earlier this month - which is still more than I normally make, but I don't think I will have the account paid off until early next year unless I get an unexpected windfall. I am keeping my fingers crossed for an end of the year bonus, but that is never guaranteed.

I Heart Google Reader

I know I am probably the last person to jump on the bandwagon, but using Goggle Reader makes keeping up with my favorite blogs so much easier. Using Google Reader has enabled me to expand my blog reading scope (beauty, fashion, gossip...), but reading personal finance blogs are still my favorite.

I've kind of needed a break from the somberness that has been the U.S. economy lately, but I will get back to more substantive posts soon and also reevaluate some of my PF goals.