Windfalls

Windfalls are profits that occur unexpectedly.  And I have had the pleasure of experiencing (3) windfalls over the past 30 days.

I got a $434 check, which I wasn't expected; a nice size raise at work and filled out my tax returns for the past 2 years and I am getting money back!!

So what do you do with a windfall? Since it's unexpected, it wasn't accounted for financially.  There are so many schools of thought... spend it all, save it all, spend some/save some.... etc...  I am not sure if there is a right answer, I think right is dependent on you and your circumstance.

2 of the windfalls have not materialized yet (takes a while for the taxes to hit your account and think the pay raise would be in the next check), but I am already planning it in my brain and here is how I am going to do it:  as for the $434 windfall, I already spent half of it and put the other half in savings.  I didn't mean to blow $200 but I needed a weekend out, it's been a long time and I was celebrating my raise.  Some of the $200 just got eaten away in my checking account with bills, etc... 80% of the tax refund will be applied to my debt and the other 15% will go to my savings and about 5% will go to a small gift for myself (a bag I have my eye on and some clothes for work).  The way I am handling the raise is that I am not accounting for it in my "budget". I am going to keep on living like I'm living and just sock the extra away into my savings.

So there is my windfall! How are you spending windfalls?

Charge!!

Remember this episode of the Flintstones when Wilma and Betty yelled "Chaaarrrggee...it" (personally can't hear the it at the end), right before shopping.

Well, I got a Credit Card (background to follow) and I now can yell the same cheer!.... but this is a financial blog and I'm on a mission, so guess what I'm doing, being sensible!

So here is the background. I was married for 8 to 10 years... I worked the first 2-3 years and earned a great living earning 100K.  I then became a housewife, mother and stayed on as a housewife... during my tenure, I somehow just lost all my credit cards (I only had 2) and then just had all the cars and everything in my husband's name. I wasn't raised to be that way, but I honestly wasn't thinking and my husband was good to me in the sense that I got whatever I wanted and even managed the money for the household. I never thought I would be divorced and didn't even think about my lack of credit history or work history when it was time to get on my own feet.  4 years after my divorce  and I finally am able to have my own credit card.

But I will not be yelling "CHAAARRRGE... it" anywhere.  I have a super low balance and my intentions are to charge it monthly and pay it back in full monthly on or before the due date.  I have had it 2 months now and that is what I am doing.  I am charging things like my groceries and gas (things I normally use my debit card for) and take the money I have set aside for groceries and gas and just pay the bill.  My goal is to build credit history, increase my balance and get one more open line of credit.

I paid off my car loan so I would like to have 2 lines of credit by the end of the year (actually by the summer...more on my financial goals later).

So be mindful of those credit card charges folks! Don't get crazy like the wonderful ladies of the Flintstones.

Staying the same

I have to be honest, since my last post (3 months ago) not much has changed. My income level, my debts, my situation.  I've been stuck or spinning my wheels because I felt out of control, unorganized and I lacked structure or focus. Now I'm there with a plan and taking action!

1st step: updating my debts (this weekend)
2nd step: get more money...actively searching for a job (at least 1-3 emails per day)
3rd step: seeking a part-time job in addition to my full-time job, while in this meantime of earning such little money

I've also done an inventory of my Net Worth (assets minus liabilities) and roughly I'm worth -20,000... very sad, but on the bright side, there is no way but up! I am taking the steps to get out of this debt in the next couple of years, so watch me!

Next post will be an update of my debt.

The Root of the Problem

Discovering the root of the my problem isn't that difficult.

The bottom line, my basic expenses outweigh my income:

Expenses
Rent	$1,295.00
Storage*	$112.00
Car Insurance	$135.00
Gym	$49.99
Electric / Gas Expense	$25.00
Cable / Internet/Phone	$150.00
Groceries/Household	$250.00
Gasoline	$100.00
Car Note	$233.00
Childcare	$625.00
Laundry**	$25.00
	$2,999.99

*Since I downgraded from a 2 bdrm to a studio, I had to put things in storage
**I live in an apartment with coin op laundry

My current income is $2,640.00; my new salary of $2974 isn't effective til Dec. 6th but it still doesn't cover the expenses.

Based on the numbers above, I have a deficit of ($359.99).

Prior to this income, my income was zero and I had to rely on personal loans from friends and family to cover my monthly expenses (hence the personal debt outlined on the side). I was already in the hole so the loans never covered all expenses, it was just a rolling deficit every month.

Not included in the figures: car maintenance, school expenses for my son, loans, savings, debt, my son's therapy (the school doesn't cover everything for his needs).

I don't want to dwell on the problem, but had to back it up for the blog purposes.

So far, I have downgraded my living, eliminated all expenses such as gym membership, I have searched for part-time job and do part-time childcare and I have asked for a raise at work (which they were not happy about).

My new solution, find a new job, since I have the skills, education and determination.

Laying my cards out on the table

The first step in any journey is being honest with the situation and I'm ready to be honest and put my cards out on the table; here it goes....

• I have borrowed money from each and every friend I know and my mother. I currently have several personal loans out--4 to be exact; in addition I have 3 payday advance loans (figures to follow in a separate post).
• I make $52,000 annually in the Bay Area where my salary does not compliment the cost of living.  I live in a modest apt (a studio, with my child) and my expenses are over my annual income.
• I have quite a bit of debt that I have incurred over the past years (post divorce).
• In addition to my debt, I have a few moving violations as well as other tickets including parking.
• No credit card/bad credit.

How I got into this mess....

Excuses/Highlights of the issues that I have gone through and deal with

1. I was married for over 8 years; I got divorced because my ex husband had addiction issues that I could not deal with.  At the same time we had a small child with special needs and I wasn't working (got laid off from a great paying job due to the economy)
2. I divorced thinking my ex would assist me with child support and spousal support.  At the time of our divorce our child was severely delayed and I was driving him to a dozen therapy appointments a week and could not work
3. My ex got fired leaving me with no money, no support and he did not offer to watch our son or want to.  This isn't about throwing him under the bus, just the facts
4. I had to work hard to find miscellaneous jobs that gave me the flexibility to chauffeur my child to all his therapies.  These jobs were very low paying
5. When my child got school age; I was able to look for a full-time job.  I could not find a full-time job and when I did they offered a very low pay.  That is where I am now, I have a full-time job as an analyst and I'm making what I made in my 20s for a lower rent
6. After divorce, my son and I lived in a wonderful 2 bedroom/2 bath for 4 years but had to give that up because the rent kept going up and up and couldn't afford $2100...now I am paying $1300 for a studio~ette! Not even a full studio
7. I have to be honest and say in the past, I have spent money that I shouldn't have on dinners/drinks out with the ladies because I do love to socialize. I felt like that was my only outlet in such a stressful time, but that is few and far between and not really happening now in the past 6 months.  I am trying to save every dollar and really be more conscience about my spending

Lessons

• Never rely on your partner..not being negative, but things do happen so it's best to rely on yourself and yes, I always knew this lesson but I let it slide because I enjoyed being a housewife and trusted my partner
• Have as many skills as you can to outshine your opponents in this job war (I have 2 degrees mind you! so not sure why I can't find a full-time job paying what I am worth...but I intend to)
• Network!!! Having a healthy network and staying in touch with people can only help you. That is the reason for how I managed to get by
• Do more conscience spending...I'm trying to ask, do I need it or want it...and I need to do better with deals, sales and coupons!

Updates

My son's father now gives me $300 a month; although he can earn more than 6 figures but chooses not to for whatever his reasons.  I did apply and qualify for a secured credit card.  I am in the process of searching for another higher paying job.  I want to move my son and I out of this studio!

This blog will serve as a journey and tracking device to get my premium assets!