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.