CashAholic

+.01 from parking lot

2012-05-14T21:13:00.003-07:00

I snagged a penny from the parking lot. I will apply it to my loan. I am sure my bank will adore that. However, as for me - free money is free money.

$125 from a Focus Group

2012-05-11T08:33:00.003-07:00

Yesterday I nabbed $125 from a focus group. Not bad for one day's work. I will apply this to my mortgage. This will bring the balance down to $299,125. I just need to keep plugging away until my balance is paid off.

$5 found in Parking Lot

2012-05-09T22:53:00.001-07:00

Yesterday I found $5 in a grocery store parking lot by accident. I was not looking for the money but there it was at my feet. I took the money to the bank this morning and applied it to my principal balance of my mortgage. My mortgage is almost at $299K.

$100 check yesterday

2012-05-05T10:41:00.000-07:00

A $100 check from my side biz arrived yesterday. Yeah! I will use that money to pay down my mortgage. This should bring my mortgage into the $299K range. I'm psyched to be below $300K for the first time ever.

I will go and talk to the bank today to find out when I can remove PMI from my mortgage. That will reduce my payment a few hundred dollars every month.

Realistically, it won't happen for a few years but it doesn't hurt to ask.

Filing a property tax appeal in June 2012

2012-05-03T04:41:00.001-07:00

I realized I can file a property tax appeal in June 2012. It's ridiculous that I pay a disgusting amount of property taxes when I home is underwater. I purchased for $333K and my home is worth about $260K. That's almost a $100K decrease!

I know the government has fiscal issues but so do I!.

Upcoming outflows of cash

2012-05-01T23:25:00.002-07:00

If things work out the way they should, I will have huge outflows of cash this month. I hope, and hope my refinance works out the way it is supposed to. It will be a HUGE burden off my weary back. It's been an albatross that I would happily get rid of.

Once that is done I can return to accumulating cash. Which coincidentally has been my goal for a long time. However, I never do it. Something always turns up. And what turns up is usually a bill.

Stock Gains

2012-05-01T22:41:00.001-07:00

I sold my ET stock for a $400 profit, not bad for 2+ weeks. It is in a non taxable account, so there are no taxes on my gain. I went to another account a very small ROTH IRA account I have and purchased 6 shares of APPL (Apple stock). I doubt I will make the big bucks, but I think I will make about $40 eventually on this transaction.

I believe in Apple's ability to come up with new innovative products. Steve Jobs is gone but his company lives on. I think he was dynamic enough that he inspired the people that worked for him to do great things. And I think his team will continue to strive for excellence after his departure from this world.

This may be a simplistic way of looking at things, but it makes sense to me.

Net Worth

2012-05-01T21:15:00.002-07:00

This month my networth will increase by $2K. Assuming I stay employed.

Here is the breakdown. Each paycheck I contribute $800 to my 401K. I get 2 paychecks a month so I contribute $1,600. My mortgage decreases by $400 every month after my gigantic mortgage payment.

The result is $1,600 + $400 = $2,000.

A 2K gain per month is not a shabby thing.

Plus $100 this week

2012-05-01T20:44:00.001-07:00

As of this week I am up $100 from my side biz. I contributed $20 to my co-worker's marathon, so I am really only up $80 for the week so far.

Trying to refinance but not sure if anything will happen this time either. The last time I tried I was out $450 for the appraisal. This time I will be out $650. Each time the amount increases. Wonder if this is trying to tell me something ....

Picking up spare change

2012-04-22T08:23:00.000-07:00

Do you pick up spare change? I do. I can't say I find a ton of it - but when I do I pick it up and apply it to my mortgage. I doubt it will be effective at paying off my mortgage but it helps.

Places to find money include sidewalks, vending machines, the cashier window outside of fast food restaurants, and laundry mats.

Whenever I walk I keep my eyes peeled for change. One never knows where one will find it.

How about you?

Paying down my mortgage

2012-04-22T08:17:00.001-07:00

I continue to attempt to pay down my mortgage. My mortgage was originally $335K when I purchased my house in 2008. It's now 2012 and my new mortgage balance is $301.6K. This isn't very impressive. I have had one refinance. My original mortgage was at 6.5% and my new mortgage is at 5%.

Now every payment I make reduces my mortgage by $400. Not a lot but in the past my mortgage was reduced by $300. So, it's progress. My mortgage is currently with Chase. When ever I have spare change I put it towards a principle payment on my mortgage. So, I manage to pay my mortgage down slightly. I think it's outrageous how much interest the bank makes on your money.

My goal for this year is to get my mortgage under $300K. What's your mortgage goal?

Ironies of Life

2012-04-19T08:38:00.002-07:00

Ironically the money from my biz (past projects I worked on) is trickling in. However, I am not getting any new biz. So, at some point I will not be getting any new money either.

I will keep my biz alive, people will come occasionally but I need to come up with a new biz.

Any ideas?

The Financial Tipping Point

2012-04-15T21:56:00.002-07:00

When do you reach the financial tipping point? When do you start accumulating money? For most people it's when they pay off all their consumer debt. When I paid off my consumer debt with the exception of my home mortgage and investment property my cash flow increased.

I am now able to concentrate on wealth building. For me that means maxing out my 401K for the first time in my life, and working towards paying off my mortgage. I purchased my house for $335K. My mortgage is $303K. If I can get my mortgage to $299K it's a good thing for me psychologically. I owe less than $300K. It's a good feeling.

One day it will happen.

Paying off my mortgage

2012-04-15T21:47:00.002-07:00

I am trying to reduce my mortgage. Despite the fact that my property is worth little I am determined to pay it off. I have thought of walking away from it but I would end up with a big tax bill. So, I might as well pay it off.

Being mortgage free is a big savings. I was looking at profiles on Networth IQ and I noticed that quite a few couples in their mid thirties paid off their mortgage. This resulted in a large networth - not surprisingly. Not sure how they did it, but I started thinking about it. I think if you make a conscientious effort to always make extra payments the mortgage will eventually be paid off.

It reminds me of my student loans. I would make extra payments to principle and eventually - many years later the student loans were paid off due to my diligent chipping away at them.

Stock Market Adventures

2012-04-11T08:04:00.002-07:00

As I write this the Dow Jones is up 101 points. However, my stock is down twelve cents. All my other stocks are up. However, the one stock that I take a chance on, the one meant to make money is down. So much for making a quick buck. If the stock is down in an up market that is BAD news. This has not been a good month for me. Below are the things that are tough for me to deal with:

1) water leakage in duplex
2) new stock purchase down
3) no raise / bonus

My mom had a rhyme for all the months, April was full of showers. She was so right! It has showered a lot for me.

Paying down my mortgage

2012-04-11T07:55:00.003-07:00

Yesterday, I gathered all the money in my wallet and made a payment towards my mortgage principle. Fortunately, I will be paid Friday so I only have to survive till then. Today is Wednesday. I can score a free lunch at work! This means I don't need to spend any money today, and my gas tank is almost full so that's another plus.

I have change in a canister in my car. I'm going to try and roll it today and drop it off at my bank. This will constitute another payment to principle while clearing up all the change that always accumulates around me.

New Stock Purchase

2012-04-05T08:27:00.002-07:00

I purchased a stock called Exact Target for my retirement account. It's a company that sends out emails. It IPO'd last month. Since I will be working with this company it seemed to make sense to buy a company with a good product.

I don't expect to make much of a profit. Five percent for the year would be okay. And it would be more than I make in a money market account.

Hoping the market will have another run-up, and allow me to cash in.

New Low for Home Mortgage Balance

2012-04-02T21:26:00.002-07:00

I suddenly realized that every time I make a payment my home mortgage balance hits a new loan. I am now at $302,900. My goal is to get my mortgage down to $299K before year end. I think this is doable.

Wish me luck.

A Water Leak in my Duplex

2012-03-30T15:03:00.002-07:00

The water leak in my duplex translates into thousands of dollars in repairs. I am hoping my insurance will cover at least some of this. I have the most basic of insurance so I am hoping for the best.

Why, oh why do these things happen to me?

Checks arrived today ....

2012-03-27T22:12:00.003-07:00

Today I received 2 checks totaling $250. I was thinking of what I would do with them ... and I decided to apply them to my outstanding mortgage.

My current mortgage of $304K will be decreased by $250. It's a start. Every little bit helps. My goal for 2012 is to get my mortgage down to $299! That's 5K below it's current limit. I think it's doable.

Quitting the 9 to 6 Grind

2012-03-24T15:53:00.003-07:00

If I quit work ... I need a few things to survive life without a paycheck. Number one on that list is a place to live. Preferably one rent free. This means I have to pay off $454K dollars. This includes my house and my investment property.

+$170 from the side biz

2012-03-24T15:48:00.003-07:00

I am up +$170 from my side biz this week. Not a bad week.

I think there are some interesting politics going on at work. It may end up causing more work for me. Not so good for me and the side biz. While it might help me professionally, I am not sure about working indefinitely.

I am thinking about retiring from the 9 to 6 work force. I realize that sucks but there you have it ....

2012 Savings Goals

2012-03-23T07:09:00.002-07:00

1) Max out 401K (17K)
2) Create emergency fund 20K
3) Pay down mortgage to 299K
4) House Project 3K
5) Trading Fund 5K

I am behind my goals with the exception of the 401K which is funded to $3.5K this year. It is on track to being funded.

However, I still need to work on goals 2 - 5. I think the emergency fund is my next priority.

No $ from my side biz today

2012-03-19T18:18:00.001-07:00

No money from my side biz today. So, today was basically a dead end financially.

Buiding up a Cash Reserve Fund

2012-03-18T21:24:00.003-07:00

It's no fun to build up cash reserves.

I currently have $2K in my savings account. I need to build this up. Once I have 100K I am going to retire from working a 9 to 5 job. I will find something else to do.