I hope everyone had a nice Thanksgiving. My wife and I just returned from spending the holiday with my family. It was a blast! Great food and good times.
In financial news, my wife and I decided today to pay off our 0% interest Chase credit card balance (the last of our credit card debt). This credit card had a clause that if we were late with a payment, they could back-charge us interest. We didn’t want to have that hanging over our heads any longer. Better yet, we also wanted to start 2008 with a little less debt.
I just returned from my business trip overseas. It was a good trip, but, as always, it’s nice to be home. One nice thing about traveling is the frequent flyer miles that I earn. This trip, I earned 15,692 and now have 60,276 Delta SkyMiles saved up.
However, I learned that I was not automatically updated to Gold Medallion status when I hit the 50,000 mile mark. The update usually takes place the following Saturday. So, I only received a 25% bonus for my miles on this trip (Silver Medallion), not a 100% bonus (Gold Medallion). One bit of good news that I learned though is that my Medallion status will be good until December 30, 2008 – a year longer than I thought.
I am going to Europe for a 5 day business trip tomorrow. I will pass Delta’s 50,000 mile mark (for the year) on my flight over to Europe. This will move me from the Silver Medallion level to the Gold Medallion level. At the Gold level, I’m entitled to a 100% mile bonus for every mile I fly with Delta the rest of the year. This means double the frequent flyer miles on my return flight from Europe!
My wife just received a $491.22 commission check from her new job as well as a $158.78 mileage reimbursement check. It’s amazing how she is able to pull in some extra money almost every month.
We plan to use $350 of the money to help pay down our 0% interest credit card. Our goal is to have this paid off by the end of the year. The remainder will be put into savings and a portion will be given to our church. Beginning in 2008, we will use her commission checks help us pay down our 2nd mortgage.
We just contributed the final $500 to my Roth IRA for 2007! It feels great to have maxed out our Roth IRA’s this year ($4,000 each for my wife and I). Hopefully we can do the same next year. It will be a bit more of a challenge with the new $5,000 max contribution per person, but it will be fun trying.
I’m a bit worried that November could be the 1st decline in our net worth since we began tracking it in February. We have a number of large bills due this month including a $880 truck insurance bill, $416 condo insurance bill, and $1,842.84 for our 1st 2007 condo tax payment.
We have been saving $302/month into our Emigrant Direct account for our condo taxes, so we expected to have to pull it out when the bill came due. Thankfully, my wife receives an extra paycheck this month (3 total) which will help cover the truck and condo insurance bills. However, if any other large bills come up this month and/or it’s a bad month in the stock market, I’m afraid we may post a decrease to our net worth. It’s not the end of the world, but it would be disappointing. Oh well, 25 more days until we know.
This year, our condo tax bill increased from $3619.60 to $3,685.68. This is surprising considering the decline in Southern California property values. We purchased our condo two years ago for $333,250. Similar units are now selling for ~$260,000-$290,000.
Our tax bill indicates the county’s assessed value pf our condo is currently $340,016. A couple of our neighbors have been successful this year at reducing their condo taxes $500-$1,000 simply by challenge the county’s current value of their property. So, we have decided to do the same. We filled out an APPLICATION FOR CHANGED ASSESSMENT, in which we estimated our properties value at $275,000. The form was easy to complete but the approval process can take a couple of months. If we are successful, we will receive a refund on the taxes we paid this year.
We definitely spent more money in October (click on spreadsheet below) than last month.
Our biggest expense was a $1,000 business expense that posted to my credit card, but that I was already reimbursed for in June. We also began purchasing Christmas gifts.Incomewise, my wife receive a $761.50 commission check from referring customer to her father’s company and a $752 commission check from old job. In addition to this, we received 123.47 in credit card cash back rewards and a small rebate. Our interest income continues to grow as our savings increases. In October we earned $20.29 in interest income.
Next month my wife receives an extra paycheck (3 total). Off setting this is a $416 condo insurance bill and a $880 truck insurance bill.
October was a pretty average month all around. We increased our net worth $1,409.31 from last month, to $27,172.68. We’ve already passed our net worth goal for 2007, so any additional gains are gravy.
What worked this month? My wife continues to bring in multiple streams of income. She brought in a $761.50 commission check for referring a customer to her father’s company and a $752 commission check from old job. Another plus this month was that our retirement accounts (401K and Roth IRA’s) increased by a total of $778.90. We also reduced our liabilities by the standard amount (~$1,000).
What did not work this month? A $1,000 business expense that we’ve been expecting finally posted to my credit card. I was already reimbursed for it in June and had the money sitting in our savings account gaining interest. We also saw a ~65% reduction in the value of our shares of Adventrx Pharmaceuticals.
What’s coming next month? My wife receives and extra paycheck next month and may also receive her first commission check from her new job. I will be traveling overseas for 5 days (all expenses paid by employers) so we might see small savings there. My wife and I will also be taking a road trip to visit my family for Thanksgiving. A couple of big insurance bill hit next month: We will be pay for a years worth of car insurance for my truck ($880) and a years worth of insurance for our condo ($416).
Many of our friends have been evacuated because of the Southern California Wildfires. We are far enough away that it is unlikely our neighborhood will be evacuated.
However, I’m flying to the east coast tomorrow for a business trip so we prepared my wife just in case the fire heads in our direction.
Here’s what we packed in a suitcase in case there isn’t time to fully load up the car:
Water Food / Dog Food Extra clothing Family Photos Legal Documents Insurance Documents Emergency Cash Checkbook Toiletries Flashlight Lighter Knife Hand Gun Pen & Paper
It’s unlikely she will be in a survival situation, even if our area is evacuated. There are many evacuation shelters available. However, worst case scenario, she and our puppy can get by safely staying a night by themselves in the car. In addition to the items above, she would also have her purse, cell phone, computer, and chargers with her.
Our path to financial independence and retiring early.
