Finance Gets Personal

I’m a fan of MSN Money columnist MP Dunleavey (although I don’t necessarily agree with her decision to purchase a more expensive house while trying to get out of debt).

When I get my hair cut, it comes to $31 and I tip $6. I usually get it cut every seven weeks or so. Now, this might not seem like much to some of you, but I live in the midwest where haircuts are relatively cheap.

I used to go to Snip ‘N Clip, but then I started going to Beauty Brands. I accidentally got placed with a “Master” stylist instead of the mid-range one I requested (they charge based on the hair stylist’s experience), but I kept going. Then, my hair stylist switched salons, and I followed her.

Now, I’m really not a “hair person,” and I don’t have anything fancy done. In fact, I probably wear my hair in a ponytail about 50% of the time. I’m currently growing it out to donate it to the Pantene Beautiful Lengths Program (http://www.beautifullengths.com/), so my need for an expensive haircut is even further diminished.

I was talking to a friend about this recently, and she confided that she visits Fantastic Sam’s and is very happy with them. I’d been thinking about leaving my hair stylist for a while, but have been a wuss about it.

Then, the opportunity presented itself. My hair stylist is moving! (Not that I’m happy about that, but it gives me an out to switch to a less expensive place.) Of course, she told me she was leaving and scheduled an appointment for me with another person at the salon in nearly the same breath. So, I was scheduled for another expensive appointment, which my previous hair stylist would be in the salon for (she was too booked to see me another time herself before she left).

Well, the replacement stylist had to cancel, and I told the appointment setter that I didn’t wish to reschedule because I’m going to look for a less expensive salon now that my former hair stylist is moving, but that if it doesn’t work out, I’d be back. Free at last!

So, I just got back from the vet for my dog’s annual physical and shots. $172.25!

What happened?

Complete Physical Exam: $35
3-Year Rabies Vaccination: $24
3-Year Distemper/Parvovirus Vaccination: $32
Heartworm Test and Tick Screen: $43.25
Fecal Analysis/Centrifugation: $23.00
Express Anal Glands (I mentioned he’d been scooting around): $15

I think they forgot to charge me for his assisted nail trim (he has to be muzzled and held down), which would have been at least another $15. And, I started buying his heartworm and flea prevention medicine online, or that would have easily been another $100.

Dogs are so expensive. Last year, he ate a bunch of berber carpet when we weren’t home and nearly had to have surgery. He had to have an IV, X-rays and spend a couple nights at the vet for a cost of $740.

Too bad they don’t have flexcare health spending accounts for dogs! I know, I know, there’s always pet insurance, but it’s hardly ever worth it (unless you know in advance that your dog is going to be a dumb-ass carpet-eater).

Now, I may be trying to get out of debt, but I’m not crazy. If I get $20 for my birthday, I’m going to spend it, not put it toward my debt.

But what to spend it on? If I keep the cash in my wallet with no clear plan, I’ll end up blowing it all on McDonald’s and clearance-rack clothing that I’ll never actually wear. And since our tight getting-out-of-debt budget leaves little money for things like new shoes, makeup and entertainment, I have limitless ideas of how to spend the money.

Instead of blowing my birthday money on impulse purchases, this year I made a list of things I want and ordered them from most to least important in Ta-Da Lists (www.tadalists.com). Here’s my current prioritized list:

1. Emergency fire escape ladders for the upstairs bedrooms
2. 2 pairs of jeans for stepson to replace the ones he ripped
3. Clinique foundation (wait ’til Bonus Time beginning March 9)
4. Baseball opening day tickets
5. More long-sleeve casual shirts
6. New Pumas
7. Train ride into the city to see the Bodies exhibit with family
8. Black patent round-toe pumps
9. New Victoria’s Secret IPEX bra
10. Develop pictures for photo album
11. Swiss Gear Zurich Upright Suitcase
12. 4″ Satin Nickel Standard House Numbers from Restoration Hardware
13. Michael Kors Jet Set watch
14. Banana Republic enamel heart necklace
15. Set of 6 satin nickel wallplates from Target.com
16. Fiona Apple Tidal sheet music

I purchased items 1-3 with my birthday money, and plan to use the list in the future when I extra money to spend.

My stepson turns 9 next month, and we are in the process of planning his birthday party. It’s not going to be too elaborate - we’re renting a couple of lanes at the bowling alley during “cosmic bowl” for about 8 kids and having cake. Total cost: $56 plus the cost of invitations, cake and paper plates/utensils.

A few years ago, we had a bigger birthday package at a different bowling alley, where there were about 13 kids, pizza/hot dogs, cake/ice cream, arcade tokens, a private party room and a bowling pin that all the kids sign. Total cost of that package: $170 plus cake. I’m glad most of the parents stuck around, because there were so many kids I’m sure we would have lost one.

Last year, we decided to keep things “simple” and had a slumber party at our house with three guests. It was pure hell - the kids were arguing, crying, chasing the dog, jumping off stairs and spraining ankles, etc. So we decided not to do that again until the kids are older. I will gladly pay the bowling alley $56 to avoid having a party at our house!

Many of my stepson’s friends have much more elaborate parties than we do, however. Common parties include mini golf/go karts at a local fun center (package cost: $256 plus tax/gratuity), attending professional baseball games, lazer tag, parties at pottery studios, etc. Granted, most of the people throwing these parties can afford to, but it can create high expectations for the other children. For example, my stepson came home from a party last year and said, “Jake’s parents gave him $300 for his birthday! Can you believe that? I want to get $300 for my birthday!” So I calmly and politely explained that there is no way in hell that is going to happen.

The trend toward more and more elaborate birthday parties for children is happening throughout the country. If you are interested in the topic, check out this website I found on the subject: http://www.birthdayswithoutpressure.org/

For the past week, I’ve been getting daily messages on my answering machine for Shawn Connely. Now, I don’t know who Shawn Connely is, but he hasn’t had this phone number for at least two and a half years.

My husband was off work Friday, and answered the phone. The woman asked for Shawn, and my husband’s name is John. So, John thought it was for him for a minute, and then realized they wanted Shawn. So he politely told them they had the wrong number.

Well, I took off work on Monday, and my stepson answered the phone. He told them that John wasn’t here, could he take a message? Well, my stepson is not the best at message taking, and I didn’t see why whoever it was couldn’t talk to me, so I made him give me the phone. The woman asked to speak to Shawn Connely (my stepson had misheard the name). I told her she has the wrong number, and she’s like, “So there’s no one named Shawn Connely at this residence?” No, lady! Then, she has the nerve to ask me if I know Shawn. At this point, I started getting snippy with her and asked if this was a debt collector. Of course, they aren’t allowed to say. She just said that this was (insert generic corporate-sounding company name here).

This is not the first experience I’ve had with debt collectors calling for someone who used to have our phone number, but these people obviously think we’re lying because we keep thinking they’re asking for John. I’m off work again today, and if they call me, I am going to go off on them!

While I feel like I had a frugal Valentine’s Day and birthday season, I estimate that we spend about $3,500 per year on gifts. That’s almost $300 per month! ($140 if you don’t count Christmas, which we pay for out of one of our two extra paychecks) This includes gifts, dining out on special occasions, birthday parties, holiday expenses, cards, etc.

I’m not really sure how it got so out of control, or if it is really all that unusual. I try to stick to the following gift limits based on the receipient’s relationship to me:

Birthdays:
$70 Child
$60 Spouse
$30 Parent
$20 Other Relatives and Friends (no party, no present - unless it’s a nephew/niece)
$10-$15 Child’s Friends (no party, no present)

Christmas:
$350 Spouse, $50 Spouse’s Stocking (yes, I realize that’s a lot, but we don’t get much throughout the year)
$300 Child, $30 Child’s Stocking (kids get presents from everyone!)
$50 Parent
$20 Sibling or Niece/Nephew

Weddings:
$50 Good Friends/Relatives
$25 Everyone Else
$30-$35 Shower Gift
$20 Bachelorette/Bachelor Gift

Other Stuff:
$30-$35 Baby Shower Gift
$30 Mother’s/Father’s Day Gift
$170 Child’s Birthday Party/Cake
$25 Anniversary Gift for Spouse
$100 Anniversary Dinner/Entertainment
$130 Hotel for Anniversary
$50 4th of July Entertainment (i.e., Fireworks)
$100 Christmas Entertainment (i.e., Symphony)

Everyone has a “latte factor,” right?

Mine is Coke. Not the drug, the drink.

My husband and I consume approximately three 12-packs of Coke Zero a week, plus the free drinks my work provides and the plastic bottles he buys once a day. So, I figure that’s at least $500 a year just for the 12-packs. Probably more, when you figure the trips we run to the gas station for a cold $4+ 12-pack when we run out and don’t want to go to the grocery store.

Yikes! I guess it’s still cheaper than the daily Starbuck’s trip though.

When I was younger, I figured I’d have a baby when I was 24. Then, it became 25, 26, etc., and now I’m hoping to get to it before I’m 30.

What happened? Well, student loans, credit cards, cars, a house..plus, I wasn’t really ready until recently. So now that I’ve started seriously thinking about it, I’m not sure when the best time would be. And while I know there’s no “perfect” time, my husband and I have a goal of getting completely out of debt (including the house) within five or six years so we can explore lower-paying, more fulfilling careers.

Will having a baby ruin our plans? It might create a few detours, given the cost of daycare these days. But there’s no way we’re waiting five years for a baby. So our target date for the baby being born is December 2009, when we should have most (if not all) of our non-mortgage debt paid off. Then, I’m hoping my mom might want to watch the baby, since she only works part-time a few days per week. I’d like to pay her more than she makes now, but less than the cost of daycare. But I need to talk to her to see how she feels about it (although I hate the idea of people knowing we’re “trying” - it grosses me out).

I’m sure everything will work itself out. But I’d rather have a plan that goes awry than no plan at all.

Everyone knows that having a high FICO score is key to getting low interest rates and can save you thousands of dollars. But what if you don’t need to borrow money? Financial guru Dave Ramsey calls the FICO score an “I love debt score,” and suggests manual underwriting for mortgages.

I maintain that there are at least five good reasons why you need to have a good FICO score, even if you never borrow money:

1. Renting an Apartment. Many landlords check credit reports now, and a low or nonexistant FICO score means you might be required to hand over a hefty deposit, pay a higher rent or get a cosigner, if you’re not flat denied.

2. Getting and Keeping a Job. Some industries now check applicants’ credit reports prior to offering them a position. This is especially true for financial, military and other government positions. Your credit score can also be checked regularly after you are hired as a basis for retaining employment.

3. Obtaining Low-Cost Auto and Home Insurance. Insurance companies typically use data from your credit report in determining your rates.

4. Getting a Cell Phone Plan. Yes, you can get a prepaid phone or a “deal” from one of those “we don’t check credit” places, but the main carriers check your credit and will deny you if they don’t like what they see.

5. Turning on Utilities. If your score is bad, you might have to pay a deposit, get a co-signer or even pay higher rates.

So, boys and girls, keep that score up!