Debt! Specifically, credit card debt. We all have it (well most of us). Nobody wants it. At least I sure don't! So it suddently dawned on me that I have quite a bit of credit card debt (after adding up multiple balances) -- so I'm trying to get rid of it now. The main issue? As a guy, I'm expected to pay for everything. And that occasionally means I spend more in a month than I earn. And if there are a few months like that in a row, it starts to snowball. And I'm deep in snow. About $5815.64 worth. So how to tackle it?
First , obviously, I'm trying to limit expenses so I can avoid putting more on my two credit cards. I canceled some magazine subscriptions for things I don't really care about. I'm trying not to go out for dinner/drinks as much (like everyone else in this economy, I guess). I returned a few pairs of unused shoes I ordered online (Zappos has a very gracious return policy).
Second, I called Citibank and asked them to lower my interest rate. They lowered my rate 3 percentage points from 18% to 15%. My other credit card is at HSBC (also at 15%). I'm going to try to talk them down next.
Third, I'm trying to chip away at the amount owed each month by $200-300, with the idea that I'll get rid of the rest at the end of the year if I get a bonus.
Fourth, I checked and I had enough reward points to get some cash rewards (about $400). So instead of saving up miles for a free trip, or some trinkets, I'll apply the cash rewards to my balance owing.
I'll track progress here for the rest of the year.
Tuesday, June 24, 2008
Thursday, June 5, 2008
Rollover IRA at Fidelity
I rolled over my IRA from a previous employer's 401(k). Fidelity (http://www.fidelity.com/) made it really easy. I just went in and opened up an IRA account with them.
They suggested I put my money in a 2050 target fund. But I did some checking around, and I decided to put the money into two different funds:
30% FSIIX SPARTAN INTL INDEX INVESTOR CLASS
70% FSTMX SPRTN TOTAL MKT INDX INVESTOR CLASS
The International fund gives me exposure to growing economies overseas, and provides some cushion against the falling dollar.
The Total Market Index fund provides diversification.
Both funds have relatively low expense ratios, and if you have more money to invest, you can upgrade to the Advantage Class funds instead of the Investor Class (which have even lower expense ratios).
They suggested I put my money in a 2050 target fund. But I did some checking around, and I decided to put the money into two different funds:
30% FSIIX SPARTAN INTL INDEX INVESTOR CLASS
70% FSTMX SPRTN TOTAL MKT INDX INVESTOR CLASS
The International fund gives me exposure to growing economies overseas, and provides some cushion against the falling dollar.
The Total Market Index fund provides diversification.
Both funds have relatively low expense ratios, and if you have more money to invest, you can upgrade to the Advantage Class funds instead of the Investor Class (which have even lower expense ratios).
New theme for this blog
I realized recently that I have less than 30 years left before I would like to retire. And I've decided that I want to be wealthy when I retire, and not work like a dog until I drop.
That means I have a lot of work to do. I've decided to take stock of where I am, organize myself, and get my financial situation in order. After that, I will set discrete goals, and track my progress towards them here on the blog.
Plus, I hear blogging is the cool thing to do, and that some people actually make money at it. So I'd like to learn how it works, and perhaps improve my writing at the same time.
That means I have a lot of work to do. I've decided to take stock of where I am, organize myself, and get my financial situation in order. After that, I will set discrete goals, and track my progress towards them here on the blog.
Plus, I hear blogging is the cool thing to do, and that some people actually make money at it. So I'd like to learn how it works, and perhaps improve my writing at the same time.
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