Tuesday, October 30, 2007

NetWorth

I think I am going to include past big purchase items into my networth.  A part of me feels like I’m cheating by adding those items but another part of me feels like I paid good money for those things and they should be taken into account.  So, here is the list of my precious items that I feel are worth more than a few dollars:

Car: $5,000 (I need to look up the blue book value to be sure, but the car is only four years old so I believe it’s a good estimate)

Bed: $1,000 (I love my bedroom set)

Tables: $700 (Me like pretty wood)

TV:  $500 (me like my big flat screen)

Total: $7,200

If I was to sell the items today I would take no less than the above prices but it would probably be in my best interest to do some research on the subject.  The $7,200 increase in my networth will not affect my overall networth goal.  I still want to increase my networth by $16,000.

 

Monday, October 29, 2007

Who Am I Cheating?

It’s the end of the month, I’m over budget and I’m wondering if I should count this purchase in this category because then it’ll help in that category so I won’t be so much over budget in that category.  It sounds like I’m trying to cheat somebody out of something to make myself look good.  Seriously, I don’t answer to anyone but myself.  I am the boss of my personal finances.   I’ve been fudging my numbers but who am I cheating?   I’m cheating myself out of a much needed vacuum cleaner, my daughter of her college ed-u-ma-cation all because I wanted to buy a pretty water thingy and a scarecrow for Halloween.  Tsk, tsk, tsk.

Although, I have to admit I bought the pretty water thingy to motivate me to clean my home and it worked.  I am flawed in that way, sometimes I need major motivation to clean.  The 20 dollar purchase wouldn’t have been so bad if I hadn’t spent $60 on Halloween things for mom and then $30 in a restaurant that same day. Tsk, tsk, tsk.

Goal for next month: control impulse (off of work) spending.

Thursday, October 25, 2007

Today I learned about Capitalized Interest....

So I log into my Sallie Mae account to see just how much principle is paid off on my student loan per month. I assumed it was atleast $100 per month. Well, over the past year only $9 has been posted to principle (and that entire $9 was this month). WTF! Something must be wrong. I looked closer and apparently I've been paying something called capitalized interest. This is the definition from Sallie Mae:

What does it mean when interest is capitalized? When does it occur?

During periods when a payment is not required to be made on a loan, interest continues to accrue or build up on the principal balance of your loan. When this unpaid, accrued interest is “capitalized” it is added to the principal balance of your loan, which increases the total outstanding balance due. Because interest continues to accrue on the outstanding principal balance if a payment is not made, any future interest that accrues will be based on the new outstanding principal amount (previous principal balance plus capitalized interest). Therefore, capitalization increases the total cost of your loan. You can avoid this cost of capitalization by making interest payments while in school.For certain Federal Family Education Loan Program (FFELP) loans (i.e. unsubsidized Stafford, Parent PLUS and Grad PLUS), federal law permits unpaid interest to be added (“capitalized”) to your principal balance at certain points or milestones during your loan term.

I am speechless...... Oh wait I have something to say afterall... WTF!

Wednesday, October 24, 2007

2008 Financial Goals

2008 Financial Goals

1.  credit card debt free by July 2008

2.  $2,500 Cash Emergency Fund by March 2008

3.  Start 529 plan for my kids

4.  $2,500 into Roth IRA by December 2008

5.  Debt to Income Ratio of 3.1 by  December 2008

6. Increase net worth by 16,000

 

Plan

Can’t have goals without a plan on how to achieve them, right?  So here is the plan.

 

1.  credit card debt

I currently have ~6,000 in cc debt.  Believe it or not, 8 months ago I had no cc debt but then I stopped paying attention to my budget and now look!

I’m paying $1,000 towards the debt this month and $3,000 next month (I’m expecting a lump some of money (fingers crossed)).  So I’ll be entering 2008 with $2,000 in cc debt. 

In order to achieve this goal I must pay $330/month. (Doable). 

-Contigency..what if I don’t get the $3,000 lump sum, making total cc debt for 2008 $5,000.  --- Then I’ll have to increase payments to $420 and extend payoff deadline to Dec. 1. (Hard but doable)

 

2.  Cash Emergency Fund

$2,500 is weak emergency fund for a single mother of two, but I am compromising a bit until I get cc’s paid off and more debt paid down.

 

3.  College Savings

I have yet to start my kids’ college savings plan.  I suck. I’ve been talking about starting it for nine years.  Tsk, tsk.   Once I pass my P.E. the amount will increase but something is better than nothing.

 

4. $2,500 into Roth IRA for 2008 ($209/month)

This account will back up as my Emergency fund.  It’s not the maximum contribution but it’s a good start.

 

5. Debt to Income Ratio of 1.7 (my goal would be from 3.5 to 3.1) by the end of 2008

I recently read an article which said the debt to income ratio for a thirty year old should only be 1.7 times her income.  My debt to income ratio is 3.5.  Thus, I owe 3 and half times my yearly salary.  That is scary.  I worked on a few numbers and if things go as planned I should decrease that number to 3.1 by the end of December.  It’s still pretty high but it’ll be better than it was.

 

6. Increase net worth by $16,000 by the end of December

My current networth is -32,000 (includes home equity of $25,000), largely due to a student loan debt of $56,000.  In order to achieve this goal I will pay off $3,000 of my HELOC since it has a higher interest than my mortgage and student loans.

 

CC payoff

6,000

Roth

2,500

Mortgage will decrease by

1,200

Student Loan will decrease by

1,500

HELOC

3,000

401 (k)

1,021

Savings increases by

1,500

Total Networth Increase

$16,721

 

Conclusion

I plugged these numbers into my budget and it looks doable.  In fact, it looks easy.  If I stick to this plan I can actually have a positive networth in two years (Happy dance!!!)

I always get happy and lose sight of the long term goals when ever I gain short term success. But this time there will be no back sliding, no money lending to family members, and no crazy Christmas and Birthday gifts/parties. I will be well on my way to having a positive neworth by the end of next year!      

Essence's Mutual Funds for under $50 part 2

I looked up the other mutual funds suggested by Essence and once I eliminated the funds which had to have a broker and the mutual funds that had a minimum I was only left with fund #1. 

In the end, the funds were under $20, but the funds did not do any good if the minimum investment was over $50, since that is what my initial investment will be.

I tend to learn more by putting my feet into the water than standing by and watching other people swim.  But if I pick a fund I want it to be for the long run…. So I want to have more than one choice for a cheap low-cost fund with no minimum investment. 

I’ll keep on looking. 

In the meantime, I need to decide on who I’ll go through to get the fund. 

All in all, the more I read about investing, the more difficult it is becoming.  I’m sure that will change once I actually make a choice. 

 

Tuesday, October 23, 2007

Internet Use, email, and blogging

My job has severely restricted internet use.  The bad part is I severely restricted my normal internet usage and I still got a tongue lashing.  Tsk, tsk.  So I’ve had to cut it out completely except for work.  –Once an addict, always an addict--

 

I’m not complaining I’m glad they did it.  It’s so easy to abuse the privilege and I’ve become a better employee.  But something’s a sista just can’t do without.  So here is a few ways I’m trying to sustain:

 

I am a pf blogger addict.  But I think it’s a good thing because it keeps me on point with my financial goals.  It’s a good thing most pf bloggers do it for enjoyment and MONEY so they all have email subscriptions, which have the posts delivered directly to me at my work email.  So to all you who don’t have email subscriptions please get them. 

 

You can also email posts directly to your blog. So that is how I will be keeping up with my posts.  Actually, this will be my first post via email.  If you’re reading this I guess it worked.

 

The directions to posting via email are linked here:   http://help.blogger.com/bin/answer.py?answer=41452&topic=8929

 

 

Sunday, October 21, 2007

Mutual Fund #1

Mutual Fund #1 From Essence Magazine's "Five Mutual Funds You Can Afford" will be Van Kampen Comstock (ACSTX).


According to the it's Morningstar report there are actually three of the funds: Class A, Class B, and Class C. The mutual fund mentioned in the magazine article is Class A. What does it mean to have a Class A, Class B, Class C mutual fund.

Right now the Class A fund is priced at $19.43. The 1 year Annual total return is 18.85% without sales charge and 12.02% with the sales charge. According the the Morningstar report the Class A stock has a maximum of 5.75% sales charge.

On the otherhand, the Class C fund (ACSYX) priced at $19.44, has a 1 year Annual total return of 17.94% without sales charge and 16.94% with the sales charge.

Hmm, so what is the the difference between the Class A, Class B, and Class C fund, I don't know. I'll save that for another day.

FYI, you can not invest in mutual funds over at Sharebuilder, and Zecco has a $10 charge for investing in Mutual Funds. E*Trade, Scottrade, and TD Ameritrade have no charge for mutual funds. I'm sure theres some other trade off, though. I'll have to figure this out too before I start up the Roth IRA.

"Five Mutual Funds You Can Afford" According to Essence Magazine

Essence had a pretty good financial article this month titled, "Five Mutual Funds You Can Afford" Here are the five:

Van Kampent Comstock (ACSTX): Made up of large, well established firms, you can invest without going through a broker, best for conservative investors, 5 year performance is at 14.47%

Mutual Beacon (TEBIX): Combines stocks of large and medium size media and telecommunications as wellas financial services companies. you can investt without going through a broker. 5 year performance is at 14.86%

American Balanced (ABALX):balanced fund with stocks and a 30-40 percent investment in bods to reduce risk. invests in pharmaceuticals, computers and sconsumavle fuels. you must open an account with a financial advisor. Conservative. 5 year performance is at 10.70%

Templeton World (TEMWX): Global fundd that invests in both U.S. and overseas stocks with hoding in media and software companies. You can invest without going through a broker. Moderately aggresive. 5 year performance is at 16.32%

The Hartford Capital Appreciation (ITHAX): Aggresive fun with investments in information technology, energy and industrials. Focuses on stocks that appreciate quickly; must invest through a financial advisor. Aggressive Investors, 5 yr. performance 19.87%.

According to My Money Blog, a Roth IRA can in fact be used as an emergency fund. The only thing is. No one wants to play with thier Emergency Fund, right? It's not a savings account so the possibility of losing the money is a lot higher. I currently put a little over 10% of my income into a savings account. Unfortunately, I'm always loaning it out. and thus, I always lose it and when people give me my money back somehow it never ends up back into my savings account.

So although, the chance of losing my money is higher by putting it into an Roth IRA the chance of me not loaning it out to a member of my family (and thus losing it) will be less likely. And there is also the saying "Thou must max out your Roth IRA contribution" So, I am going to take a baby step and divert $50 from my emergency fund(the suggestion in the magazine article) into one of the suggested funds that I do not have to open through a financial advisor.

But of course I have do my research, right?

Unfortunatley, the article does not list the fees associated with the funds.
And, can I invest in the fund from a Sharebuilder or Zecco account?

Sunday, October 14, 2007

I am now a landlord

I am officially a landlord. It's a nice house. Of course, the house problems are popping up since they've been there for a week. The past owners had dogs and a flea infestation and my daughter and son have the flea bites to show for it. I've had to spend about $50 on flea stuff and I'll buy some more next month. I think my kids have bought the fleas to my house so i'll have to bug my house soon.

My mother, her boyfriend, and another roommate are spliting the rent. Thus, I pay nothing out of pocket. I am collecting rent for October and November so when the first mortgage payement is due in December I'll have a good cushion.

I'm proud of myself. I've been tottally watching my spending and I already see the difference in my balances and it's only been three months. I need to make sure I tithe this month.

P.E. exam: I studied every day for the exam last week. Woohoo. I can see my learning curve increasing. Hint: Don;t spend all day on the hard problems. So that the problems that I understand I cand do and do them quickly and correctly. And save studying for the hard questions till the end.

I plan to increase the my studying from 2 to 3 hours and try to review everynight for atleast thirty minutes. It's ambitious but I should atleast be able to do it a few nights a week.

Monday, October 08, 2007


An Interview with Carole McDonnell, Author of Wind Follower

Carole McDonnell's Wind Follower is being marketed as both Christian and Multicultural Speculative Fiction. I am a Christian and I love speculative fiction but the two don't mix, right? Well, according to Carole McDonnell and other voyeuristic Christian authors the two entities were made for each other.

How does it feel to have your first novel, Wind Follower, set to be released this month?

Very odd. Everyone, writers and non-writers, are being so helpful and happy for me. The neighbors and friends are proud of me. It's neat, almost like waiting for a baby to arrive. The funny thing is that Juno's acceptance of the book came about so suddenly. One day I was writing at my computer as I did for all these years. The next I hear that Wind Follower was accepted for publication by Juno Books.

Publication means acceptance or criticism or both. I get a lot of panic attacks when I think about possible reviews. What if folks hate it? What if
they think the book is badly written? What if the Christian mythos in the story offends them? I truly think it’s one of my six great works. Yep, I have six great works to do. I love this book. All my heart is in it. Wind Follower is so different from all the books out there. I'm not saying it's better than other Christian or African-American or fantasy romance books. I'm just saying it's different. And I’m very happy that God gave me the plot.

When did you know you wanted be a writer?

The first time I knew I was a writer I was in an English class in junior highschool. I had written a poem and my classmate and friend, Jan, picked it up and gave it to the teacher. She shouted, “Look what Carole wrote! It’s so good.” The teacher read it to the class. From then on, I was a writer.

I’m not really sure when I knew I would actually make writing a career, however. I loved reading the classics and I loved story. I loved cultures. I
also liked puzzles. I would watch foreign and arty movies and documentaries forever. And I was always changing the plot of movies and stories around in
my head. What if this had happened instead of that? What if the main character had been a black woman instead of a white woman? I like being a writer, though, because it's what I'm good at. What could be better than sitting around making up stories?

There is a big, beautiful picture of a black woman with a nose ring on the cover of Wind Follower. Has anyone ever told you black people don't read speculative fiction?

I belong to several online speculative fiction groups, many of which are groups dedicated to fantasy and science fiction written by people of color. They also ask this question and wonder where the black readers of fantasy are. They make generalizations such as ‘science fiction is a genre written by and read primarily by white male geeks.’ I don't really read science fiction. I like fantasy a lot but I don't read much of it because I don’t really connect to all those lords, ladies, knights and Euro-type elves. I'll read urban and contemporary fantasy, however. They're usually more inclusive. And I'll read works by multicultural writers. I don’t know if my audience will be black folks, though. It all depends on which market is receptive to me. Christian readers? White speculative fiction readers?
Romance readers? Black readers? Black Christian readers? Will see.

What do you think the difference is between Wind Follower andother Christian themed speculative fiction novels like The Left Behind Series and The Chronicles of Narnia?

The Chronicles of Narnia is a classic. In its time it was a mix of fantasy and contemporariness. Now it’s a bit dated in some places, at least in the contemporary scenes. At that time the young characters in the story were actual kids dealing with the war that had engulfed England. They had to encounter evil. Now, a movie like Pan’s Labyrinth is much different. I’m not saying Pan’s Labyrinth is going to be a classic, nor am I saying it’s a Christian work of art… but it understands the evils of the physical world. And it parallels the evils of the physical world with evils in the spiritual non-physical world. Harry Potter also deals with that. Again, I’m not saying Harry Potter is Christian. But it does deal with contemporary class and race issues, evil, and alienation. The Left Behind series is contemporary, but it is very preachy and although it deals with spiritual warfare, it doesn’t really touch on the subject of race. And like many Christian speculative stories, it focuses on the apocalypse. Wind Follower takes place in an alternate past. It deals with spiritual and cultural warfare but it is multicultural. So it’s alike in some ways and unalike in other ways. In addition, Wind Follower is a lot like Harry Potter and Chronicles of Narnia in that it has a kind of Young Adult feel because the main character comes of age in the story. He becomes an adult and decides what his relationship with the Creator will be.

Do you think Christianity and speculative fiction can really mix?

I really do. The basic core beliefs of many religions often share some of the same elements of fantasy. Religion is about what is unseen, about “spiritual” laws that affect the “physical” world. Fantastic literature deals with that also. Both religion and fantasy are built on the idea that a system of spiritual laws and spiritual causes which can effect physical things. Specifically, in Christianity the religion is about a God who is spirit who is separated from a physical world which has forgotten (and which ignores) the true spiritual laws. The early apostles write that the people of earth are deluded by a worldview which makes them ignorant about how the world really operates. They state that most humans are deceived about what reality, true power, true evil, true goodness, true love, and true life really are. Many religions, including Christianity, also speak of evil non-human beings with powers to deceive the world - or pure good beings who are watchers or protectors of ignorant humans. That’s fairly common to most religions and folklore. Biblical Christianity adds to the mix by saying that those who believe in the founder of the religion will become a “called-out” peculiar people who will be able to heal the sick, raise the dead, and conquer the evil non-corporeal beings with a mere word. In fantasy, in religion, in Christianity, words have power to do mighty and powerful things. Or else, why do people in the world pray? So yes, Christianity and fantasy can work together. Of course, much of Christianity isn’t as magical as it’s supposed to be. In the west, even religious people have to struggle to believe in the power of the world of the spirit. I certainly have trouble with it. Much fantasy is light and airy and I understand that Christian literature often fails in this respect because Christian writers are often so intent on preaching an altar call in their novels (or imitating C. S. Lewis or Tolkein) that they write very flat stories. I’m hoping I didn’t do that.

If I didn't know Wind Follower was based on Christian beliefs, would it be obvious to me after I read the book?

It should be obvious. But I suspect it might not be obvious to many people. Christians might not recognize it as Christian novel because they’re used to certain themes and styles. They might not want to deal with issues that the standard Christian novel protects them from: racism, intercultural and interracial marriage, imperialism. I think an atheist who loves fantasy could read it and not see that it speaks about Christianity at all, but that would have to be a pretty dense atheist. Even so, they would have fun with it. It’s a cool book. The Christianity in Wind Follower is very primal, very connected to folklore and to the gospels. The religion Loic chooses to follow may not be recognizable to many Christians who are not Pentecostal Christians because of issues such as the folklore roots of Christianity and such fantastical elements as demons and the like. But who knows? We’ll see what people think, won’t we?

Who will be pissed off by this book more - Christians or atheists?

I don’t really know. Atheists who read fantasy might actually like it. Readers of fantasy are used to magic, etc. Their only problem will be that many fantasy readers might have an ABC mentality. Anything But Christianity. Many of them don’t mind a writer exploring Celtic, Druidic, Norse, Greek, or Chinese myths but they get uncomfortable when a book explores Christian beliefs. As for Christians, many will like it, but some definitely won’t. Some will have denominational issues, definitely. Some will be annoyed that I included the six sex scenes. And some American Christians will definitely get angry with the book’s depiction of imperialism and manifest destiny. The book will reflect the opinion of a reader on one page and perhaps challenge that very reader on the next. For instance, my warrior is a spoiled rich kid, a momma’s boy raised mostly by women. He’s an epileptic. Most feminists might like it that I explore a male
hero who lacks the typical machismo. But at the same time, I have a chapter in which a pro-life comment is made. We will see.

How do you think the Christian market will perceive your book?

They’ll like me, I think. But they will have issues definitely and they’ll nit-pick. They always do. If they like the story, good. If not, that’s also good. The Christian market is one of the harshest markets out there. With all the denominations out there, a writer can always count on some reviewer criticizing her for some doctrine or other. A part of me wishes Christian readers will take me to their arms and love me. But at the same time, if the Christian market were to adopt me as their little mascot I would be in a great deal of trouble because they would want to pigeon-hole me and remove certain aspects of my writing. And that’s dangerous. I suspect that the Christians who like my book will be those folks who generally don’t read Christian fiction.


What do you think about Harry Potter and any other children's book that portray witches as a force for good and demons as having souls? Should good Christians ban their children from reading such books?

Harry Potter is a real tough one. On the one hand, kids love power, and that is one of the main subjects of Harry Potter. The book is also, for lack of a better word, romantic and fantastical. Christianity in America — and whatever power it seems to offers — seems pretty bland compared to the richness of the Potter world. Parents know how discerning their kids are. If a child wants to read Harry Potter, her parents should discuss the Christian world view with them. Kids like reading until that love of reading is knocked out of them by more exciting pleasures. Many Christian young adult books are badly written and preachy and not fun at all. They lack magic and romance. Often they are concerned only with a kind of literary altar call - and seek the salvation of the reader. As if kids are concerned with that. Many Christian YA books are also pale imitations of Narnia etc. The contemporary quality of Harry Potter makes it a better read for many kids, Christian or otherwise.

What authors have inspired you?

Probably the writers in the Bible, Shakespeare, James Joyce, William Blake, Lord Dunsany, Edgar Allen Poe, English and Irish poets, classical Chinese poets. Also old folktales and writers of folklore. I was a poet for a long time, and Wind Follower definitely has a poetic folklore feel.

I don't recognize any fantasy authors in your list.

Lord Dunsany is a very famous English fantasy writer. Shakespeare wrote fantasy. The Tempest, for instance. One could also argue that Hamlet is a story about fantasy and the ability to discern between reality and the fantastical. Edgar Allen Poe also wrote many fantastical stories.

Who are the two main characters in Wind Follower, and why do you think readers will love them?

Satha is the main female character. She’s a poor girl who finds herself suddenly betrothed one day to a rich kid. Very upsetting for her. But she does it. She’s practical and kind-hearted. Loic is the boy who suddenly decides he wants to marry her. He’s kind also, and he’s a typical petulant teenager who grows into manhood. Loic is not the regular hero. He’s got an illness. He’s been under the care of women who dote on him. He reads poetry, for heaven’s sake. Not epic poetry, love poetry. When Loic first sees Satha, what he likes about her is that she is caring and brave. Yes, she's beautiful - but he what matters is that she is kind.

They’re both good people. And lots of amazingly fantastic, triumphant, and heart-breaking things happen to them. What more can you ask for? The stories share a common plot but when the main characters are parted, Satha’s part becomes something like a slave narrative and Loic’s becomes a quest. Yes, Every African-American writer should write a slave narrative, don’t you think? It’s epic, and romance, and slave narrative. The reader should like it.

Where do you think speculative fiction is heading?

I really don’t know. Humans have always liked stories of the supernatural and the fantastic. As long as we’re fascinated with how the world works and with how different cultures work, we’ll love those stories. And, let’s face it, many stories are rooted in human sorrow. For instance, if we live in regret we think “what if I had done something differently?” Bingo, a time travel story is created. Writers who don’t like modern society might write a book in which history veered along a different path. Voila, an alternate history novel! A writer grieving for the loss of her dead child might do a novel on cloning. Science Fiction and Fantasy will always exist as long as writers and readers keep pondering the great “what if” of life. I think, though, that in the United States and Canada speculative fiction will become more multicultural. At least I hope so.


What’s the difference between science fiction and fantasy?

The typical genre writer believes science fiction is fiction using technology, fiction about something that might possibly happen in the future. And most of them believe that fantasy fiction is fiction based in magic and the supernatural, something that is impossible, something that will probably never happen. I’m a little different on that. For me the definition is the other way around. As a pragmatist, I simply think there never will be travel at the speed of light. There won’t be travels to the far end of the universe, there won’t be alien wars – or even first contact with aliens from out of space. Perhaps aliens from inner space, aliens from earth, demonic entities and the like. But not from beyond earth.

For me, fantasy is often a story that might very well be true. That’s the
Christian part of me. In Pentecostal churches, one often hears stories about demons, missionary battles with witch doctors, etc. Wind Follower, for me, has the feel of a story that not only could have happened but which probably has happened countless times. Sounds odd, I know. It’s fantasy, but it’s fantasy that is part of my religious tradition, and my Jamaican folklore tradition. When I write supernatural stories I ask myself, “am I writing a fantasy that in my opinion could happen? Or am I writing a fantasy that is creative and unrealistic, a fantasy that probably will not happen?” Right now I’m working on two paranormal novels. One of them, Father Gorgeous, is about a very intellectual priest who slowly begins to return to the supernatural roots of his Christian faith when he encounters a demon. He has encountered something so utterly evil and paranormal that he has to accept the fact that the spiritual world does exist and that
Christianity is a religion with supernatural power. I think that could happen in this reality. In some ways, Father Gorgeous is very much like Wind Follower because both main characters have spiritual crises that challenge their way of thinking. Father Gorgeous, however, has a contemporary setting.

My other novel, the Daughters of Men, is utterly creative. It’s about cloning, evolved male humans, chimeric biologically-engineered humans, and standard issue humans. It’s more Science Fiction. Which means it’s something I think will never ever happen. Not in my lifetime, and not in anyone’s lifetime. I’m cynical about human scientific research and am pretty doubtful that we humans will have the time or the sanity to advance to such great scientific discoveries. We live in a world where it’s often warfare and greed that drive science and technology. We might discover how to fly through the stars but we probably will have killed half the planet by the time we actually do.

Thanks for the interview. I look forward to reading the book when it's released in August.

Thanks. I hope you like it.