Time to Grieve

Just posting a little note, to share why we have been so silent on this blog.  Over the past three months we have lost 5 people who were close to us.  Their passing has affected our family deeply.  They include my boss, my grandfather, two close family friends, and one of my students.  It has been a tough time for all of us and we took time to grieve and heal as we dealt with each week.

It reminds me that life is precious, and to spend time with those that we care about now while we have the chance.  One again I am energized to achieve my goal of spending more time with Baby Breeze as he is growing up so quickly.

These deaths have given us time to reflect as a family, and have also created some new financial opportunities which I will blog about in future posts.

As we remember those that lost their lives on 9/11 and those that have passed recently I ask you to take time to give those who are special to you and give them a hug!

The Power of Accountability

We all have urges, whether it is to eat or spend money on something that is not a need!  It is okay to give into those urges from time to time as well.  Recently we have paid off the Chapter 13.  For the first time in years our debt is just our primary mortgage and is below $100k.  We are putting away a good portion of our income into retirement and we actually have cash available.

All this leads me to want to go out and BUY!!!  I have a bad habit of searching Craiglist, and while I have been able to save money on some of the things we have needed to buy, I find myself looking at other items that are not needs.

For example, there was a great deal on a 5th wheel RV - complete with heavy duty truck, lot on the river, and even a golf cart!  This great deal for everything was about $50,000.  I kept looking at the pictures and dreaming of spending vacations with Mr. Breeze and Baby Breeze, and enjoying time together.  I thought, I have the money now, I could even buy this cash, this wouldn't increase our debt.

I was close to picking up the phone, when I decided to look over my Blog post.  Here I made goals for this year to pay off our debt, increase savings and increase our Net Worth.  Purchasing this "cool deal" would cause our Net Worth to decrease (as I wouldn't count these items).  I didn't want to fail in the eyes of my readers, nor do I want to miss achieving our goals for the year.

Why did I want this purchase so badly, because I was dreaming of spending time with my family.  But wait, my goals were set so that I can retire early and are helping me spend more time with my family already.

So I turned off the Craiglist, and went and played "Choo Choo" with my son!  Yep, this blog has helped me to keep focus and kept me accountable!  So thank you!

August 2014 Monthly Update

We continue in our quest for savings, here is how we stand for August.

Net Worth Standing for August 1, 2014:

Assets: $630,441.11 - Liabilities: $92,246.57 = Net worth: $538,194.54

Net Change = increase of $8,127.50

The markets took a little bit of a tumble at the end of July, but we were able to put a large amount into savings (buying stocks on sale, as I am trying to convince myself!).

The emotional weight of the Chapter 13 being paid off has been huge.  We feel we can finally breath without that monster on our back.  But this is no time for a spending spree, if I want to continue to work towards early retirement, then we need to take those funds and put them into savings.  In July, I put $2917 into my 457b (this amount will allow me to put in the maximum for this calendar year).  Since our bankruptcy payment was $2950 each month this doesn't really change how we are living.  In fact, since the Chapter 13 taken out after tax and the 457b is taken out pretax it is actually less.  So my paycheck, even after put money into savings went up $800.  Oh the joys of pretax savings.  We have already learned to live without the money, so the now we get to enjoy watching our savings grow.

Our credit scores have also gone up 5 points since our Chapter 13 was discharged.  We are hoping to continue to improve our scores hopefully get us back to Excellent credit rating.

So we continue to plug along and even with a drop in the market at the end of this month, we are still coming out ahead.  Keep putting little bits away over time, and it will continue to grow.  Until next time. . .

July 2014 - Monthly Update

Another month, and another update.

Net Worth Standing for July 1, 2014:


Assets: $622,464.26 - Liabilities: $92,397.22 = Net worth: $530,067.04

Net Change = increase of $10,427.14

We decided to do something crazy this month.  The emotional toll of the Chapter 13 was weighing heavy on us, and since Mr. Breeze is now working full time and we have been able to save some money, we decided to take our savings (which was only making 1%) and just pay it off.  This didn't affect our Net Worth by much, but as you can see we took a hit in the Assets, but that is offset by the much a much smaller Debt amount.

So our only debt is our Primary Mortgage on our house.  We will probably start paying that down soon, but right now we are going to funnel the money that was going to Chapter 13 payments into the 457b that I am eligible for at work. This allows us to take advantage of Pre-tax savings, and the 457b doesn't hold the penalties that a 401k or 403b does if I have to tap into it before I turn 59.5.  This makes it perfect for an early retirement fund for us so we are going to try to fully fund it first.  Since we were putting $35,000 a year into the Bankruptcy - we are hoping that we can fully fund the 457b (currently allowed at $17,500) and then put the remaining towards our debt.

The stress of having the Chapter 13 (notice I even hate to type the work Bankruptcy), paid off is a huge relief on us.  It wasn't the amount of money they were taking out of our checks each month (we quickly learned to live without it and it didn't hurt all that much believe it or not).  It was the fact that we just owed this huge amount and we were not able to open any credit or have any flexibility.  We were always good with our credit cards and used to rack up the rewards points and travel points, but we always paid them off at the end of the month.  We got ourselves too stretched when it came to houses and mortgages and then a job loss and business loss caused our downfall in 2009.

Now we have to focus on rebuilding our Credit Scores, and have found that we really don't need all that much to live on.  Our jobs continue to stress us out each day, and we are looking forward to early retirement.

Monthly Update - June 2014

Here is our Monthly Update:

Net Worth Standing for June 1, 2014:

Assets: $653,209.26 - Liabilities: $133,569.36 = Net worth: $519,639.90

Net Change = increase of $13,121.58

The month of May flew by, and we are now finally enjoying some warmer weather.

Thanks to the markets rallying again at the end of May, we have increased our Net Worth and continue to decrease our debts.  Our debt is significantly dropping (love to see those red bars going down).  We are a little over 1/2 way to our goal of increasing our Net Worth by $100k this year.  Since we are only at the beginning of June, we should definitely hit our goal, and hopefully even exceed it.

Mr. Breeze and I both had some serious concerns regarding our corporate jobs.  We know that both of our positions are high paying, and could easily be on the chopping block in the near future.  My boss was asked to step down so that has caused a bit of turmoil and stress in my office, and Mr. Breeze has had some employees leave so as manager his job is causing him more stress.  The levels of stress we are trying to each manage has caused us to be snippy with each other.  We are working towards achieving Financial Independence, so that at least one of us is able to leave our corporate job soon.

We continue to strive to increase our savings percentage and went from saving 10% of our income to now saving 25% of our income, and if you count the Ch. 13 payments (which is paying down debt) we are closer to 44% of our Gross income!

Baby Breeze is enjoying the warmer weather and we are trying to spend as much time as we can during the longer evenings and weekends.  We are amazed at the free things we can do with Baby Breeze (which I have been putting together in another post).

Monthly Update - May 2014

Here is our Monthly Update:

Net Worth Standing for May 1, 2014:

Assets: $643,393.40 - Liabilities: $136,812.08 = Net worth: $506,518.32

Net Change = increase of $11,906.68

Once again we have increased our Net Worth and continue to decrease our debts.  During April, we got our tax refund and put the complete amount toward our Chapter 13, which helped to reduce the debt.  The markets came back a little bit, so we had some small gains.

It is such a nice feeling to see our Net Worth over .5 million, and I cannot wait to double that and see our Net worth reach $1 million.

Our goal is still to reach $550,000 in Net Worth by the end of the year, and we are well on our way to getting there.

Net Worth Breakdown - From Real Estate to Retirement

Now that we are approaching a half million in net worth I have been asked the question of how do we calculate our net worth (i.e. what do we include).  So here is my stab at answering that request:

Total Assets: $641,676.80

$346,696.20 Retirement Accounts (401k, Roth IRAs, Pensions - age requirements)
$128,990.77 Cash, Savings, CDs, Taxable Accounts (i.e. Betterment and Individual stocks)
$123,000.00 Real Estate (primary house)
$  37,381.00 Personal Possessions, 2 vehicles, and 1 Boat (harder to access or liquidate)
$    5,608.83 Medical HSA [Health Savings Account]

Total Liabilities: $147,002.16

$54,018.78 Chapter 13 repayment plan
$92,983.38 Mortgage on Primary Home

Net Worth: $494,674.64

So that is our breakdown.  At one time, about 7 years ago, we had over $1 million in assets but over $700,000 of that was in Real Estate, since then due to the housing bubble, loss of jobs, we have had to file Chapter 13, and now we just have our mortgage on our primary home.  It was a huge shock to the system to watch our Assets go from over $1 million to less than $300,000 at the time.  Our Net Worth was negative due to the mortgages, which let to part of the reason we had to file Chapter 13.

Right now, we are probably a little heavy in cash/savings, which are only making between 0.5% to 1% on average but once the Chapter 13 is paid off we plan to increase our investments.

I don't include Life Insurance policies (no fun, since I won't be around to spend the money anyway!), and currently Baby Breeze's college fund is a part of our Cash/Savings category since it is pretty insignificant, but I will probably separate that out as it grows.

Ultimately if we are going to live off the dividends that our investments make, then we are really only looking at the top two asset categories, which are around $475,000.  Based on our spending needs, we need to double that number.  Our goal is to do that over the next 5 years.  This is where I got the goal to increase our Net worth by $100,000 each year.  I love playing with the numbers and hopefully we will blow this number away, but knowing that life happens, we are just going to track it year by year and continue to  . . . follow life's breezes!

Monthly Update - April 2014

 Time for our Monthly Update:


Here is our Net Worth Standing for April 1, 2014:

Assets: $641,676.80 - Liabilities: $147,002.16 = Networth: $494,674.64

Net Change = increase of $23,586.13

Thrilled to see an increase in our Net worth, especially since March was an expensive month.  Between both Baby Breeze and I being very very sick, and therefore not cooking the healthy meals we had planned, we ended up buying more food than planned and threw away a lot of food. Mr. Breeze ended up eating out a lot at work as there were no healthy lunch options for him.   Other than food, we really kept our spending to a minimum.  (Of course, being sick and not shopping probably helped that).

The big increase in our Net Worth has to do with the fact that I became vested in a third of the match the I receive for my retirement fund.  I haven't included this in my net worth until now since I wasn't really eligible to take advantage of those funds.  Now that I have 5 years in my current retirement plan, I am eligible to take 33% of the matched funds if I were to leave.  If I make it to 10 years then I get 66% vested match.

We also filed our taxes, and while we owe locally, we are getting a rather large return from our Federal taxes.  Our adoption of our little guy is a huge benefit to our lives and our taxes! ;)

This will allow us to pay more on our debt as we agreed that any return we would put towards debt, so you will probably see that next month when we get our return.

Here's to paying down debt and working towards that early retirement goal!

Must. Spend. Money.

The challenges of getting out of debt and becoming financially independent seem so easy when reading others' blogs, but occasionally I find myself being sucked in by that feeling of "must. spend. money."

It seems when things are starting to go smoothly, Mr. Breeze and I find ourselves getting that urge to go shopping.  For Mr. Breeze it might be going and picking up a new computer game for $20, or getting ice cream for a treat.  I unfortunately like to dream big, and some of those dreams come with a huge price tag.

For example, Mr. Breeze and I want to move before Baby Breeze starts Kindergarten (we are in one of the worst school districts, and many of the schools are in danger of losing funding or being shut down).  Now Baby Breeze is only 16 months old so we have at least 4 years before we need to move - and our home is very affordable and meets all our needs, but I find myself looking at real estate online searching for the next area where we want to live.  This is fine, and I usually start off with looking at reasonable houses (i.e. ones that we could pay off so I can still retire at 40).

But then I get those urges, and I think, why shouldn't I have a nice house or one that has a completely remodeled (kitchen, basement, theatre room, you name it).  Next thing I know I am looking at houses more than twice my original spending plan.  Or worse, I start looking at vacation or beach homes.  Seriously, I have a lot of conflict when it comes to wanting to retire early and being financially independent and wanting nice things (you know, the keeping up with the Jones - or in our case - all of our friends who have newer, nicer homes and cars).

Okay, so how do I get past this . . .  I tend to be very OCD when I get focused on something like this.  Which is probably why Mr. Breeze and I had to file Bankruptcy when the housing market crashed and we found ourselves with three homes and five mortgages.  I know I want to get out of debt, and I want more time to pursue my interest.  I do love my career, but it takes me away from Baby Breeze more than I would like.  It is not easy for me to just stop obsessing, and while that has helped me be successful in some areas of my life, it doesn't seem to help me financially.

So here is my plan so that I don't just take on more debt or require myself to continue working longer:

1. Review my list of Goals - these were the reasons I wanted to get out of debt and be financially independent.  They are a great motivator.
2. Look at my Net Worth.  One of the benefits of tracking it and reporting it each month on this Blog, is that I have an incentive to continue to make it grow - I don't want to see it go backwards, and that has helped me stop some of impulse buys.
3. Exercise!  I think part of the reason I am so hyper focused on looking for that dream home is because I haven't been able to get outside much because of this cold weather, and so I am spending WAY too much time searching the Internet.  Time to get out and get some fresh air.  Good thing Spring is just around the corner.

I would love to hear other suggestions to help keep those of us trying to get out of debt and someday reach early retirement and financial independence.  I am sure many people slip from time to time, and we just need to get back to what our motivation factor was that started us on this journey.

So long Million dollar dream home, I think I am going to go spend $1,000 and fix up the little thing around my house that are bugging me (like the patch in the bathroom ceiling that needs to be fixed, or the linoleum flooring that bubbles up in the middle whenever the heater is running ), its the little projects that are easily fixed but have me running for the dream home instead!

Okay, I have overcome the urge for yet another day.  Here's to Dreaming of Early Retirement!

No more Overtime!

"Seriously I have to work overtime again?  It is almost Spring time for us snowmen to go on vacation!"

I agree Mr. Snowman - you should go on STRIKE - no more snow storms.  Unfortunately we woke up to another inch or two of snow on the ground this morning!

The struggles of parenting

The Dreaded Ear Tubes

We have to make a decision, and one that I don't want to have to make.  Baby Breeze has had a number of ear infections during his first year and now we are being referred to an ENT (Ear, Nose and Throat) specialist to determine whether or not he needs tubes in his ears.

It was fascinating to watch them perform the hearing test on a 13 month old.  He was given a light up Tigger to watch.  Then as he heard noises to the left or right he was supposed to look.  If he looked to the left at the correct time a Minnie Mouse would light up and if he looked right a Winnie the Pooh would light up.  He did great, but eventually since Winnie the Pooh is his favorite, he would only look to the right, even if they didn't play a sound.  Test over!  Actually he did really well, and they were able to get a good reading.  Then also tested his ear drum and found that it did not vibrate as much as a normal persons, so the recommendation is tubes in the ears.  

Here is a great site for information: Ear tubes are plastic and shaped like a hollow spool.  Doctors suggest tubes for children who have repeat ear infections or when fluid stays behind the eardrum (our little guy has both).  A specialist will place the tubes through a small surgical opening made in the eardrum.  The child is placed under general anesthesia for this procedure. 

I don't like the general anesthesia part, but her should get through easily from what I am told, and it will help his infections and hearing.  So we have scheduled the surgery for March 26th.  Poor little guy, I hope this helps you.

Another year older

Well Mama Breeze is another year old, and a year closer to wanting to retire at 40!  Today is an amazing day for me - I actually get to celebrate my birthday.

Last year at this time, I was losing my hair to cancer and wondering if chemo was going to make a difference on my aggressive cancer.

Today I am completely done with cancer treatments!  Yippee!!  I am 36 years old and happy.  I have my wonderful son, my amazing husband and a loving family.  I have my career, and I am building our net worth and reducing our debt so I have even more time to spend with Baby Breeze while I am still on this earth.

I am excited to celebrate my birthday today, and I am looking forward to a new year - one with A LOT less doctors appointments!  (I had 109 doctors appointments last year!  Whew!).

Monthly Update - March 2014

Time for our Monthly Update:


Here is our Net Worth Standing for March 1, 2014:

Assets: $623,186.11 - Liabilities: $150,097.60 = Networth: $473,088.51

Net Change = increase of $16,705.26

Markets came back this month, which helped boost our numbers.  I got paid for my side teaching, so I was able to put some money into our savings account.  So we took a small dip last month, but have definitely made up for it this month.  Debt continues to go down by a little over $3000 each month.

I have submitted our taxes to the Accountant, and hoping we will actually get a little back, so we can pay down our debt even faster.  We have agreed that any extra money we will use to get out of this bankruptcy faster.  So we jut keep plugging along.

And Happy Anniversary to my wonderful husband - we are celebrating 7 years of marriage today.  I love this man for all the good times and bad times we have been through together!

Betterment - New Investment Account - Updated Monthly

One way that we are going to meet our financial goals is to reduce spending and save more.  I decided to try out a new Investment account through Betterment.com

You can check them out here, and receive $25 for opening through this link: Free $25 for Opening Account [Note: Betterment now requires a minimum deposit before depositing the $25; but still not a bad return on your investment with a guaranteed return!].

I was looking for a way to invest our Emergency fund, so it is easily accessible, but makes more than the 0.5% that my savings account currently makes.

I decided to start small with this account and see where it goes.  $250 initial deposit, and $100 a month auto deposit will fund this account.  

Why did I chose Betterment:

- They have extremely low fees

- The money is easily accessible

- The program helps me reallocate my funds easily

- The dashboard helps to show me if I am on track and the likelihood of reaching a certain amount over a given amount of time.  In fact the Dashboard is a great tool to play with different scenarios.

Other than Pensions and Retirement Funds (401k, Roth IRA), this is really my first dabble into the investment world where I control the amounts.  I am just dipping my toes into the water to see how I do.

I will track this account over time and see if we can grow that emergency fund.

Emergency Fund Tracker:

Month 1 [January 2014]: Initial Investment $250, Bonus $25 - Total Invested: $275.00

Month 2 [Feb 1, 2014]: Auto Deposit $100, Market Adjustment: -$11.47 Total Invested: $363.53
Month 3 [Mar 1, 2014]: Auto Deposit $100, Market Adjustment: $12.30  Total Invested: $475.83
Month 9 [Sept 1, 2014]: Auto Deposit $600 [$100 Apr-Sept], Market Adj: $38.22  Total: $1,114.05

Okay that probably wasn't the best month to start, since the market dropped in January, but I am still optimistic that I will earn much more than the measly half a percent that I would have in my savings account in the long run.  Should be fun.

Monthly Update - February 2014

Time for our Monthly Update:

Well, this past month has been tough - physically, emotionally and financially!

Here is our Net Worth Standing for February 1, 2014:

Assets: $609,576.66 - Liabilities: $153,193.41 = Networth: $456,383.25

Net Change = decrease of -$2,747.20

Okay, the markets took a dive this past month which dropped our total assets and affected our final number.  While it is not in the direction we want it to go, it is not too big a dip.  Our debt continues to be reduced each month, and we are still putting money into savings.

This past month, I have been going through radiation treatments every single day (with just weekends off). I have been so exhausted that just getting though each day has been my goal.  I have still been there to take care of my son, and I am still trying to work part-time.  But just getting to treatments each day, especially with this HORRIBLE weather we have been having [thank you Polar Vortex], I am happy to just be through January.

I have a few more treatments and then I will be onto healing.  It is nice that most of our finances handle themselves, so while I focus on healing our debt continues to be paid down, our retirement funds continue to grow (and shrink, but we have seen lots of growth in the long run).

So my advice . . .  don't be discouraged by this month.  The cold weather, bad markets, and many other factors have come into play.  I see more positive growth in our future.