Prioritizing our goals for the months ahead

Now that our emergency fund is complete, and we’re less than $1000 away from our goal to pay for our Europe trip in cash, I’m starting to think about what goals are next for us. Even though we’re unlikely to make much progress in the months ahead, it’s time to set our priorities and figure out where to start funneling our resources.

We have several goals for the next 3 years or so, but we’re still undecided on the order of things. Here’s a rough sketch:

Save $6,000 for moving expenses.

It will cost us under $1,000 to physically move our stuff. Tony’s family has generously offered us a place to stay while we get settled in and look for jobs, but we have several expenses that we’ll have to pay (health insurance, car insurance, cell phones, student loan payments, and groceries). We’ll need about $1,000 a month.

We’re hoping to find part-time jobs right away to extend our savings. My hope is that $5,000 plus whatever we make part-time will be enough to cover our expenses until we find jobs. Of course, in this economy, there’s no telling how long it could take. If we run out of “moving money” before we have jobs, that’s what our emergency fund is for. But I’m crossing my fingers that we won’t have to dip into that.

Our tax refund will give us quite a good start, and now that we’re done saving our emergency fund and Europe, we can devote all of our monthly savings to this goal, so saving this by May shouldn’t be a problem.

Buy a second car.

I know we’ll eventually need a second car. I want to wait until our current car is paid off before we begin shopping for a new one, but this will depend largely on our living situation once we move. If we’re both working on separate sides of town, it won’t be as easy as it is now for us to share a vehicle.

For now, we’re playing it by ear. Our car will be paid off in May 2011, and depending on our situation, we may need a second car sooner than that. So we’re starting to save now for a down payment at the very least, but if we have more time we might be able to pay cash.

Buy a house.

This is the big one, and it’s the goal that intimidates me most. I’m not against having a mortgage, especially if it’s a sensible one, but I’d like to save $20,000 in cash before we even consider buying a house. Saving that much money is a really tough commitment to make when I look at the cost of rent in the Indianapolis area, though. Considering our modest price range, it’s likely that a monthly mortgage payment would cost us less than rent.

Our plan is just to start saving, and then wait and see what our situation is. We may start doing some serious looking to figure out exactly what it would cost us, and if it makes sense to do it sooner, we may.

Pay off our student loans.

We still have a significant amount of student loan debt between the two of us. We’re currently paying them down slowly but surely, but eventually we plan to get much more aggressive to pay them off more quickly. At this point in our lives, though, I think security and stability is more important. I want to be debt free, but paying off those loans more quickly would eat up a huge percentage of our financial resources. So this goal remains on hold for now. It will likely wait until we’re settled homeowners.

I know that it’s unlikely that we’ll make much progress in the months ahead. Things are going to be very tight for us right after the move. We’ll be in survivor mode again, spending savings with no income, but we’re reasonably prepared. I can only hope that it will be very short time period before we’re able to start saving again.

I also have to remind myself that three years ago saving an emergency fund, moving halfway across the country, and paying cash for a trip to Europe seemed just as impossible. These are bigger goals, but we can achieve them if we stay focused.

Photo by alancleaver

Learning to jump right back on the wagon

This post originally ran on January 22, 2009. A year later, I’m still struggling to stay motivated, especially after temporary setbacks. Besides, I think we can all use a little encouragement as the novelty of New Year’s resolutions fades.

These days, I’m thinking as much about fitness as I am about finance. I’m still working on losing weight and living healthier, and I’m constantly fighting my vices — with overeating and overspending.

With the novelty and motivation of New Year’s resolutions wearing off, you may find yourself slipping up, too.

One thing I’ve learned is that it doesn’t matter how often you fall off the wagon. Everyone lapses. The real test for success is how quickly you rebound.

It seems that too often one little mistake can snowball into a catastrophe. In a moment of weakness you eat a donut or splurge on an expensive pair of shoes. Suddenly you’re thinking, “Well, my diet/budget is blown for today. I might as well make it count.”

That kind of logic led me to gain more weight and rack up more credit card debt in college than I care to admit.

This time I’m trying something new — forgiving myself and starting over. Not tomorrow or next week or after the weekend, but right now, right after I realize I’ve made a mistake.

After overeating or overspending, I used to bargain with myself. If I ate too many pieces of pizza on Friday night, then the weekend was shot, so I might as well wait until Monday to start over. In college, I used the same bargaining process when it came to my finances. “Starting next month I’m not going to use my credit card anymore,” or “After this weekend, no more eating out.”

The truth is, one mistake never really derails anyone. The real catastrophe comes from the self defeat that follows that one mistake. If you decide to give up for the rest of the day, week, or month, then you only make a bad situation worse. Your one mistake becomes a major derailment.

When you give up, even temporarily, after every little mistake, you find yourself feeling defeated a lot of the time.

Next time you find yourself straying from any goal, don’t put your efforts on hold. Don’t wait to start over. Do it right away.

Once you’ve eaten the donut or spent too much money, there’s nothing you can do to take it back. Don’t dwell on it and let one mistake derail you. Instead, wipe the slate clean, and move on.

A rock and a hard place

It’s time for us to deal with the part of moving that I’m dreading most: health insurance.

We were uninsured for a year after we moved to North Carolina. I was working part time in retail, Tony was a student, and we were trying to get by on a tiny income. In hindsight, I realize how stupid it was for us to forego coverage, especially since we later learned that we could have afforded high deductible catastrophic coverage. It’s not ideal, but it’s better than nothing.

Now as we look ahead at a lot of unknowns, we have to figure out what we’ll do next. Being uninsured isn’t an option for us right now. We’re grown-ups now, which means we accept that health insurance is a must.

Tony is currently covered by a private policy. His coverage is fairly comprehensive, and includes co-pays for office visits and 100% coverage for preventative care. He hasn’t made a single claim in two years, which is a good thing (knock on wood), but makes me wonder if he may be overinsured just a bit.

We’re considering downgrading his coverage to a mid-grade deductible with 100% coverage for preventative care, 100% coverage after the deductible is met, but no coverage before the deductible. If he needs to go to the doctor for a sinus infection or other minor problem, we’ll pay 100% of the cost up to the deductible. But if something more serious happens, he’ll be covered.

As for me, I’m worried that I’ll be denied private coverage due to my history with anxiety and depression. I also don’t want to deal with the stress of shopping for private insurance as we’re moving and job searching and dealing with a million other stressful situations. Tony is already covered, but getting him signed up for a private policy was a nightmare. Five months and several physicals and questionnaires after he applied, he was finally covered.

I have absolutely no desire to go through that, especially considering my history of mild anxiety and depression. I don’t know that I could stomach being denied coverage for my “condition.” How am I a bigger risk because I decided to seek treatment? I would think that my commitment to staying healthy and happy would make me a lower risk. In my opinion, it’s discriminatory and wrong. But I digress.

My other option is to continue receiving the same health care I currently receive though my employer with COBRA. I’m happy with my insurance, and it includes a $500 HRA provided by my employer (I would continue to receive that benefit). But it costs double what I’d pay for (somewhat) comparable private coverage.

There are just so many questions with private coverage, though. Will they approve me? How long will it take before I’m covered? And how high will my premium be considering my history? The online quotes I’ve received don’t ask about pre-existing conditions, which makes me think that even if they do cover me despite my history of anxiety, I’ll still have a higher premium.

Because of all these factors, we’ve made the decision to continue my coverage through COBRA and decrease Tony’s coverage a bit to ensure that he has a relatively low deductible, but also a lower premium. As long as his deductible is lower than what we have in savings, he’ll be completely covered.

Honestly, I was hoping this wouldn’t be an issue. I know I don’t normally get into this sort of thing here, but I was hoping real health care reform would pass before May, and at the very least, it would be illegal for health companies to deny me based on my minor anxiety issues. But unfortunately, we’re not counting on that happening now.

This hasn’t been a fun decision to make, but we recognize that our health is a priority, so we’ll just have to deal with the high cost of insurance right now. Here’s hoping it’s temporary.

Photo by bryanchan

I’m about four years late on this one

It’s Thursday. Which means tomorrow is Friday. So how about something fun?

Today I’m sharing some free music. First listen to the adorable Drinking with You, a fun little song about the beginning of a relationship. And then download the hauntingly beautiful but depressing When You Go , an all acapella song about the end of a relationship.

Both songs are by Jonathan Coulton. This guy has been Internet famous forever now, but I never heard about him until October when my sister played some of his stuff for me. I love his music, but I also love his story. Instead of seeking a traditional recording contract, he built a simple website, and started posting a free mp3 of one of his songs every week. He quickly built a huge following, and now he’s a real-live musician without a day job. And the best part is he did it on his own terms.

It’s just another reminder of the power of sheer will and determination when it comes to getting what you want. No record deal? No problem. Make it happen.

I wish I’d have heard about this guy five years ago when the rest of the Internet did.

Photo by abletoven

Time to order contacts again — or why I think “contact lens fittings” are a rip-off

Last year after I painfully paid $175 for a year’s worth of contact lenses and the accompanying “contact lens fitting” that wasn’t covered by my insurance, I considered setting aside money every month for this yearly expense. I don’t know why I didn’t, but now I really regret it.

It’s time for me to order contacts again, which means I need to make an appointment with the optometrist for my yearly eye exam. The exam is covered by my insurance with no co-pay because it’s considered preventative care. Anything associated with contact lenses, however, isn’t covered. That includes the “contact lens fitting,” which I consider the biggest rip-off I’ve ever had to pay for health care.

My prescription hasn’t changed since I was a kid. I won’t be changing my brand of contacts either. But I’ll still have to pay an extra $75 for my doctor to write me a prescription for contacts. I need that prescription to order my contacts anywhere, even if I choose cheaper vendors online.

What does the contact lens fitting involve? Well, not a whole lot. After my regular exam, the doctor will give me a trial pair of lenses — the same lenses I’ve been wearing for a year without any problems. Then I’ll schedule an appointment to come back two weeks later. At the second appointment, the doctor will come in and ask me if I’ve had any problems with the contacts that have worked absolutely fine all year. I’ll tell him they’re fine, and he’ll write me my contacts prescription so I can order another year’s supply.

Sigh.

Pardon this rant, but it really bugs me. I called around to several optometrists, but of course they all require this “fitting” appointment. I understand why a doctor I’ve never seen would require something like this (somewhat), but why would the doctor I saw last year who prescribed these contacts that have been absolutely fine for 12 months require me to do this again if I haven’t had any problems?

I suppose the most frugal thing for me to do would be to stop wearing contacts all together and wear glasses instead. But I hate my glasses. My prescription magnifies my vision. So my glasses make my eyes look comically big. Tony doesn’t think so, but I’m just uncomfortable wearing them. Not only that, but it wouldn’t be comfortable to wear glasses at the gym when I’m working out.

I’m usually not one to complain about medical expenses. I do what I have to do to stay healthy, and I understand that things like prescriptions and exams cost money. I value my health, and I consider most health care related costs to be absolutely worth the money. But this just seems so ridiculous and unnecessary. Don’t you just hate when our health care system requires us to pay for unnecessary things just so doctors can profit?

I’ve learned my lesson. This year I’ll be putting aside $15 a month for contacts so I won’t have to pay a lump sum all at once and throw off my budget next year. /rant

Photo by chrismar

Tips for applying for your passport

We’re setting sail for our cruise to the Bahamas in 44 days, which means we’ll need our passports much sooner than we originally anticipated for our trip to Europe in May. I already planned to take care of that this month, but booking our cruise really pushed me to do it sooner rather than later.

Week before last, we put together all of our documents and headed to the passport application office on Tony’s campus (you can search for the office nearest you here). I was really nervous about all the hoops we’d have to jump through, but I was pleasantly surprised to discover that it wasn’t that difficult. The whole process took about an hour and a half, and I was able to do it on my lunch hour. We filled out the application in the office and had our photos taken there, too. You could cut your time in the office significantly by filling out the paperwork ahead of time and bringing in your photos.

If you’re dreading your passport application process for an upcoming trip, keep these things in mind.

It takes 6-8 weeks to process your application.

If you’re planning to apply for a passport, I’m sure you already know this, but it’s really important to keep in mind. I didn’t think about the timeframe until after I booked our cruise, but luckily we were still able to get our applications in 8 weeks before our cruise. We’re cutting it close, but I’m optimistic that it will be okay. If you can’t wait 6-8 weeks, you can apply for expedited processing with a 2-week turnaround, but you’ll have to pay an additional $60 and cover the cost of 2-day delivery.

Bring your certified birth certificate.

You’ll need a certified state ID or driver’s license and your birth certificate. Some hospitals issue a “certificate of birth,” but you’ll need a certified copy from your county, city, or state to apply for a passport. Look for a notary stamp and a signature from a county or city official to be sure. Also, you’ll have to send the original copy with your application. They’ll send it back to you when they’re finished processing your application, but be prepared to be without your birth certificate for a couple months.

You’ll need a 2″ x 2″ headshot.

You can have passport photos taken at many drugstores and photo processing locations. Passport photo regulations require that the photo be recent and in color with a plain white or light-colored background. If you’re in a hurry, choose a passport application agency that will take the photos for you. We paid $8 each to have our photos taken at the office, which is comparable to prices I saw at drugstores.

To save time, fill out the paperwork ahead of time.

You can fill out the passport application ahead of time and bring your completed application to the office. I wish we’d done this, because I made a mistake on mine in ink and ended up filling it out twice.

Bring a check or money order.

The total cost for each passport was $100, but it doesn’t all go to the same place: $75 goes to the U.S. Department of State and $25 goes to the application agency for processing fees. The $75 passport fee is payable to the U.S. Department of State and sent along with your application, so it must be paid in check or money order. You must have a separate check or money order for each application. The passport agency allowed us to pay the processing and photo fees in one lump sum on a credit or debit card. If you use an online bank that doesn’t offer paper checks (like ING), you can get a money order at the Post Office for a fee of $1.10.

Track your application.

About a week after you apply, you’ll be able to track the status of your passport online.

Overall, the process wasn’t as difficult as I expected. Cross your fingers that we’ll get our passports with plenty of time to spare!

Photo by clappstar

I’m almost a real runner

My big New Year’s Resolution is to run a half marathon this year, but my first goal is a 5K in the middle of March. Last weekend I finished up week 3 of the Couch to 5K training plan.

Guys. Seriously. Running is HARD. I was hoping it would be a lot easier since I’ve been working out consistently for a year now, and it was … at first. But week 3 kind of kicked my butt, and I’m scared about tonight’s work out because I’m starting week 4.

It really shouldn’t be this hard. The longest stretch of running without stopping last week was only 3 minutes at 5 miles per hour. It should be much easier than it is. But like I said, I’ve never been a runner. I kind of hate it. But each week starts out much harder than it ends up, so at least I’m making progress.

I’m still afraid to weigh myself because I know I put on a few pounds over the holidays, and I don’t think I’m losing. My clothes aren’t fitting any better yet. But I’m sticking with it because I really want to run that 5K.

Here are some of the things I’ve learned that are making my training a little easier.

Couch to 5K iPhone app

This thing has been indispensable in my training. If you have an iPhone or an Android and you’re training for a 5K, I highly recommend it. I can listen to music and forget about the time, and a voice pops in when it’s time to change pace. If you don’t have a smart phone, there are many C25K podcasts that follow the same general idea. You could easily track your time with a stop-watch or on a treadmill timer, but something about forgetting about the time and focusing on my music makes it a lot easier for me to follow the program. Which leads me to my next tip …

Focus on anything but time.

I still catch myself staring at the clock, waiting for the run to end. But the more I focus on how much time I have left, the slower time seems to go. Instead, focus on the music, focus on how powerful you feel running, focus on why you’re doing this for yourself. Think about your to-do list or what you’re having for dinner. Honestly, if I’m thinking about other things, the time flies by, the run seems easier, and my time is better.

Remember that food is fuel.

I started training in December, and I learned the hard way that what you eat has a direct effect on how your workout will feel. The day after Christmas was torture, because I’d spent the day eating nothing but crap. Since I’m also trying to eat healthier, I’ve become very conscious about what’s on my plate, but I also consider how rough that run will be tonight if I spring for the french fries at lunch. Food is fuel, and if you eat healthy, you will feel healthier during your workout.

Listen to your body.

It’s okay to push yourself to increase your time and speed. It shouldn’t be easy. But you should always pay attention to your body’s limits. I try to bump up my speed a little bit with each workout, but if I slept poorly the night before or I’m not feeling at my best, there are times when I think I might die before I reach the end of a run. It’s okay to slow down a little if this happens to you. You’ll feel better at the end of the workout, and you’ll be less likely to skip working out the next day if you’re not dreading it.

Since I’m so new at this, now I want some tips from you. How do you stay motivated to run? And how do you improve your time and endurance?

Photo by lgh75