Punch Debt In The Face

Freakin' Frugal Fruitcake

ninja@punchdebtintheface.com (Punch Debt In The Face) — Mon, 09 Nov 2009 07:27:00 +0000

Yo, yo, yo people. Hope your weekend was equally as unproductive as mine :) I've got a fever and the only cure is more ~~cowbell~~ money. I'm a freakin frugal fruitcake (take that alliteration)! My first week back from my workcation and I'm stressed. I forgot how expensive it is to have friends, eat food, and drive a car.

Over the last seven days I had an unexpected vehicle incident, which ended up costing me $180. I dropped $224 on renewing my car's registration. Spent about $50 dining out with friends. Paid my cable bill, blah blah blah....

Basically I made a bunch of insignificant purchases, but still feel overwhelmed. WTF? I have plenty of money in my savings account, most of these expenses were anticipated, and most were unavoidable. Why the heck am I having an internal financial panic attack?

I definitely don't want to become so frugal I can't enjoy spending my money, but I'm afraid I might already be there. I embrace frugality, but at some point it just becomes an inappropriate love affair that can ruin happiness.

Fortunately, I'm not quite to that point. I'm using today's post as a reminder (to myself) that it is okay to spend my hard earned money. Do you other frugal dudes and dudettes suffer from a borderline OVERsavings problem? Ever felt guilty about going out to dinner, even though you deserve to go out and have the finances to do so? Slap some sense in to me and cure me of my disease.

p.s. check out this story about a woman who was so frugal she lived in a small condo even though she had a networth of $35.6MM

Time for a quarter-life crisis

ninja@punchdebtintheface.com (Punch Debt In The Face) — Fri, 06 Nov 2009 06:11:00 +0000

I'm hoping today's post will be therapeutic, not so much for your benefit, but for mine (I know, I'm selfish). I was on a walk with Girl Ninja the other day and we grabbed some dinner at Subway. All three of the Subway employees appeared to be in their mid 20's. I walked out slightly depressed that I didn't work at Subway.

Yeah I know....I'm freakin' crazy. I have a pretty awesome job, but sometimes I wish my job was kinda lame. Deep down inside I dream of working at Starbucks, McDonalds, or Costco. Why? Because they can all be part time and have flexible shifts. I went from immature college senior to special agent working for the government in just a couple months.

I thought it was an unwritten law: After college you must bum off mom and dad for a couple years, work a part time job, spend your free time hanging out with friends and backpack Europe (twice). After two years in the workforce, I'm feeling like McDonalds wouldn't be so bad. Not because I hate my job, but I would love the freedom to have a completely fluid work schedule.

I know, I shouldn't be whining like a little school girl right now. There are a ton of college graduates out there that would love to do what I do. Heck, I love doing what I do, but sometimes I'm a little envious of the part-time lifestyle. I was blessed to get the job I did, and know it's going to pay off huge in the long run, but the kid-ninja inside of me just wants to rap to Ludacris and play some video games, maybe even watch a little Spongebob.

Am I the only one suffering from a minor quarter-life crisis? Anyone else experience a little "Holy crap, I'm kind of an adult" moment? Will my passion to be part-time slowly fade? Or am I doomed to envy those that live on their parents couch forever?

I aint need no Kollege

ninja@punchdebtintheface.com (Punch Debt In The Face) — Thu, 05 Nov 2009 08:13:00 +0000

After two years in the work force, I'm learning a lot about the way the world works. Particularly in reference to my college degree. It really is funny how much emphasis has been placed on the value of a bachelors. Don't get me wrong, I think they're important, but to be perfectly honest...I don't really need it for the job I'm doing.

I honestly didn't take one class that is even remotely related to my career. I know, I know college is not necessarily about the degree you receive, but the work ethic necessary to reach graduation day. But why is a degree an ABSOLUTE requirement for most professional positions?

Take for example family physicians. They have to take all kinds of science and math classes as prerequisites for medical school. I'm sorry, but I don't really remember the last time my doctor needed to know the formula for the inelastic collision of two objects. I'm pretty sure he just needs to know what my body temperature should be, how fast my heart should be beating, and other random stuff about my body. Why are physics and calculus a requirement for ALL doctors? I don't care if my doc knows how to do integrals, I want to know if he can cure my ~~gonnohrea~~ cold. Best way to cure someone of their sickness is to be exposed to a million other people with that sickness, not take earth science.

Think about how different life would be without mechanics. We would all be screwed and have no way to get our cars fixed. I'm taking a shot in the dark, but I'm willing to bet most mechanics didn't go to college. Instead, they shadow and work with mechanics day in and day out for years, and eventually (if they know their 'ish) will get to work on cars without supervision. Why doesn't that philosophy apply to more positions. A degree is required for my position, but I can tell you right now, I don't think anything I do is beyond the intellectual capacity of an 18 year old, although it is above the maturity of most kids that age.

Some of you may be getting a little offended thinking I'm saying your degree is useless. Sorry, but it's probably true. The primary reason a degree is valuable is because society says so. Be honest, is your degree absolutely essential to your position. Not meaning is it a requirement to get the job, but would you be a total waste of space at work without it? All I'm saying is I think "on the job" training is really what helps us be great employees, not a bland degree in business administration.

p.s. if you are a physician, thanks for suffering through o-chem and microbiology, my body appreciates it :)

Bring it on haterz

ninja@punchdebtintheface.com (Punch Debt In The Face) — Wed, 04 Nov 2009 02:48:00 +0000

I still stand by my statement the other day "Personal finance bloggers are a pretty tolerant bunch." That said, after Dr. Faith shared with me the comments on this Give Me Back My Five Bucks article, I'm learning that personal finance readers, may not be. Krystal bought a new car for $30k and received a verbal beating from several readers. Well, after today, it might be my turn. I welcome the abuse :)

I finally have enough money to pay off my student loan...but I have no plans to do so at this point. If you follow my Net Worth updates, you will have noticed I have $5,182 in my checking account and $14,735 in my savings account. Together I have essentially $20,000 liquid. My student loan balance is at $17,867. I could pay off my loan today, and never make another payment to Sallie Mae again. I could, but I wont.

I have had quite the history with Ms. Mae. I started out making double minumum payments, then after some insight from my readers decided to up the ante to at least $1,000 a month. Then just a couple months ago, I got real crazy and decided to throw all of my discretionary income, paying between $1,000 to $2,000, on it each month. It seems that my plans may be changing yet again.

I'm probably going to be decreasing my monthly payment to about $500 each month for the foreseeable future. There are a few reasons I've decided to decrease my debt repayments and increase my savings rate.

1) I'm still going through the application process for my dream job and a "final offer" is hopefully not too far away. If I do get the job, then I will be entitled to receive "full" relocation benefits. One of the benefits that comes with this relocation package is aid in purchasing a home (down payment or closing costs). That could be anywhere from $5,000 to $20,000 in free money. The catch is, you only have two years to claim your benefits. That means I could potentially be purchasing a house within three years. I want to build a large cash savings, to give me more flexibility and options, when looking at what house is right for me.

2) I don't anticipate being single much longer. While there is nothing set in stone with Girl Ninja, I don't plan to date her for another 4 years. I want to bring a healthy savings account in to the relationship for peace of mind. Having $30K in the bank would make me feel much more at ease.

3) I can always pay off my loan in full with the money I've saved. If a year from now I'm not any closer to getting hitched or landing my dream job, I can always pay off my student loan at that time. Sure, I would be paying 7% interest on the $17K over the next year, which would be like throwing away a grand, but I save a crap load of money by, having a roommate, cooking most of my meals, rarely driving, no alcohol, etc. So consider this one of my PERSONAL expenses. You may think I'm crazy for throwing away $80 a month on interest, but people drop far more than that at the bar each month.

4) Most important reason: It's what I feel like doing right now. I know it may not be the smartest financial decision, but oh well, it's my choice.

I still plan to pay $500 a month on my student loan, which is more than doubling the minimum payments. Plus, my financial lifestyle is very fluid, so a month from now I could very well be back to hating my loan and paying the sucker off ASAP. I welcome any and all opinions. Am I being a complete moron? What would you do? Although I'm defying Dave Ramsey logic, can you see where I'm coming from? Let me know what you think, good or bad, I have some thick skin :)

I'm an idiot

ninja@punchdebtintheface.com (Punch Debt In The Face) — Tue, 03 Nov 2009 06:39:00 +0000

I'm freakin' stupid. Not only am I stupid, but I'm also $180 poorer. On Saturday I pulled my car in to my parking space. The car in the space next to mine was about half way in to my spot so I had to pull super close to a fence on the other side of my stall. I made a mental note to myself: "When you back up don't forget how close you are to the fence."

Guess what. This morning, when I was backing out of my spot, I forgot how close I was to the fence. Instead of listening to the sweet sounds of my radio. I was welcomed by crushing plastic as my passenger side mirror was being pulled off by one of the fence posts. As my attention turned to the mirror, I swear time stood still, and in an epic slow motion scene, I watched the plastic casing around my mirror explode in to the air and fall to the ground. Fence: 1, Debt Ninja's driving: 0.

It pretty much ruined the rest of my day. I couldn't stop thinking what an idiot I was. Who explodes their side mirror? Unfortunately I do. I called the Toyota dealership to get a quote and they told me it would be $350+ for parts and labor. Hell to the no, I said. I did a little google research and was able to find the entire side mirror for $180. Fortunately the install is extremely easy, takes about five minutes, so I should be able to save myself $200 bucks by doing it ~~ghetto~~ ninja style.

Let this be a lesson to all: Don't run your car's mirrors into a metal fence, chances are the fence is going to win. Thankfully, I can afford the repair and don't have to put it on a credit card. If you got car issues, you should always google for installation instructions to see if it can be a do it yourself project. I might be $180 poorer, but it's a whole heck of a lot better than being $400 poorer.

Help me feel a little better about my stupidity and share some sweet stories about costly things you have done. Have you had some stupid car issues? Ever sit on a really nice pair of glasses? Or maybe you threw your Nintendo Wii remote at your flat screen tv like this guy.

Net Worth: Nov '09

ninja@punchdebtintheface.com (Punch Debt In The Face) — Mon, 02 Nov 2009 05:45:00 +0000

October was a fabulous month for my Net Worth. That extra paycheck last month, was amazing and allowed my NW to continue moving on up. I'll take you all out to dinner to celebrate. And by "take you out to dinner" I mean "Do absolutely nothing for you." Let's take a look at the growth, shall we?. (p.s. I have had a couple people ask about my NW graph....I use quicken to track my finances and it makes the NW graph for me.)

Note: My NW is pretty easy to calculate because I don't own very many things. I have a savings/checking account and a couple retirement accounts . I chose not to include things like personal belongings (laptop, camera, etc) or my car (which would add probably $8K to my worth) because I figure those are things I will always need and wouldn't really want to go with out.

Checking Account: $5,182 +$3,939. I usually try to keep $1,000 in my checking account at all times. It got a little stacked recently because I didn't do any money transfers while I was abroad. The internet I used was all public wifi and I was hesitant to login to my bank accounts on the internet. Now that I'm home, I'll initiate some transfers.

Savings Account: $14,735, +$23. My savings account currently earns 1.3% interest, so that is the only reason it grew over the last month. I stopped contributing to my savings account for the time being and will focus all my discretionary income to my student loan.

Roth IRA: $11,192, -$469. Freakin' stock market pissed me off last week. It better not keep up these shenanigans. Although, if it does I might have to do some more investing :)

401K: $9,849, +$448. Eight percent of each paycheck makes its way in to this account. I invest in very similar funds in both my Roth IRA and 401K (mutual funds). I get 5% of my paycheck fully matched, so you know I'm not about to pass up free money.

Student Loan: -$17,867, +$127. Bleh. Worst decrease in student loan ever. It's not my fault though, like I said I didn't want to log in to my financial accounts on public wifi, so I didn't make a huge payment in October. Don't worry though, I'll be diverting some of my checking account stash this way.

I'm rocking a solid $22,420 net worth. I'm up $3,247 from last month. Usually I can grow by about $2K each month, so the over $3K gain for me was AWESOME. Mostly due to the extra paycheck and some overtime while abroad. Okay, I have to go pay down my student loan now.

If you have wondered why the blue bar (debt) in the graph sometimes increases, it's because my credit card balance gets taken in to account each month. Even though I pay the balance in full it still appears as a "liability" in Quicken. I just deduct this from my checking account balance to give myself an accurate net worth reading.

Take care ya'll.

Tolerance

ninja@punchdebtintheface.com (Punch Debt In The Face) — Fri, 30 Oct 2009 13:22:00 +0000

Everyone needs to be a personal finance blogger. Not so much because I think personal finance blogging is the greatest thing in the world (even though it is pretty awesome), but more so because personal finance bloggers may quite possibly be the coolest thing in the world (except for the snuggie).

The motivation for this post comes from the response I received from yesterdays article. I've been watching a lot of cable news while on my business trip, and have become depressed by the intolerance many of these shows portray. On MSNBC you have Keith Olberman spending one hour bashing republicans/conservatives and everything they believe. I click over two channels only to hear Glen Beck yelling about fascism and socialist Obama. Neither host is tolerant of any view but their own. I'm not gonna lie and say I wasn't a little hesitant to talk about a personal belief out of fear of people ripping me to shreds.

If you read yesterday's comments, you'll notice something magical. Tolerance. No one claimed their opinion more righteous than their counterparts. We all had our thoughts and preferences, but we all were clear that they were OUR individual beliefs. Pretty freakin' awesome if you ask me.

Everyone should be a personal finance blogger because personal finance requires tolerance. We all have different budgeting, spending, and saving priorities. We value different things. We come from different walks of life, yet we all have the same common goal: Manage our money at least quasi-responsibly, and possibly get ridonkulously rich in the process.

Did today's post have anything to do with personal finance? No. But I felt it was more important to thank everyone that stopped by for his or her intelligent and thoughtful contribution to yesterday's article. So is it just me, or does anyone else feel like their is a bit of hostility in society today?

Whoa, I just realized this post ended up being much more serious than my others. Don't worry though, I'm still gonna kick Sallie Mae in the nutz when I see her.

Leave me alone, I don't want to live with my girlfriend.

ninja@punchdebtintheface.com (Punch Debt In The Face) — Thu, 29 Oct 2009 08:35:00 +0000

I think it's quite funny how puzzled people become when I tell them I don't want to live with my girlfriend. I've been with Girl Ninja for three and a half years now, and apparently I didn't get the memo that I was required to move in with her after the first year. People look at me like I'm crazy, or making a big mistake. Everyone, it will be okay, our relationship transcends continual proximity. Here are some of the comments made during these arguments...

"Dude, you'll save money by living with your girlfriend."

Really? I beg to differ. If anything it will probably cost me more to live with her. I already have a roommate so my living expenses are split right down the middle. If I lived with Girl Ninja, I gurantee my expenses would go up. Why? Because I'm a guy, and I live with a guy. We don't care about decorations, good smells, or if our carpet matches our drapes (I know what some of you perverts are thinking right now). I have a feeling my bachelor pad would suddenly become page 43 of the newest Ikea magazine if I moved in with the GF.

"Dude, you're crazy, I would never marry someone unless I lived with them first."

Dude, you're crazy for needing to live with someone first. I would hope anyone that moved in with their significant other, did so because they are absolutely sure that is the best thing for their relationship. If you're committed enough to move in together, I say you're committed enough to get married. After all, what's the difference? So I wait till marriage and move in with the girlfriend, she'll discover I fart (very rarely of course) and I'll get frustrated because she folds our towels in a different way then I prefer. I'm sure we will learn a great deal about each other that we didn't know before, but why do I have to spoil the excitement of marriage by moving in with her early. To require that you must first live with your partner, to me, essentially means "If this doesn't work out, I'm outta here." My mentality is "Hey this isn't working, but I love you and you love me, let's figure out how to make it work better."

"Dude, you'll get to be around your best friend all the time."

I don't really argue with people when they bring this up. I get all giddy inside when I think about sharing ALL of my life with Girl Ninja. How fun would it be to wake up next to your best friend each morning or have someone rub your back after a long day of work? Pretty freakin' awesome if you ask me. But guess what. I can be patient. Just like I'm throwing money in to a Roth IRA that I wont see again for 40 years, I can invest four years with the GF without getting all the perks. We are fortunate that we both love each other a great deal, but are not dependent on one another. A little patience will go a long way.

Those are just a few of the reasons people provide when trying to convince me to move in with Girl Ninja. I'm old school, okay? I'm a big boy and I can make my own decisions. It's a decision I've made and I don't understand why my decision is "crazy".

Before all the cohabiters start foaming at the mouth, let me be clear, I don't have anything against people that move in with their boyfriends or girlfriends. To each their own. If you're sold on the idea of living with your partner, then by all means go for it. This article isn't about whether living with your girlfriend is right or wrong, it's about people criticizing me for choosing not to. Let's open the floor for a little dialogue. Do you, or would you, live with your significant other before marriage? Why or why not?

Punch Debt In The Face (Inside edition)

ninja@punchdebtintheface.com (Punch Debt In The Face) — Wed, 28 Oct 2009 09:15:00 +0000

Seeing that I have absolutely no financial insight to provide today, I figured we can examine some random facts about Punch Debt In The Face. If you have no desire to be educated on my site then you better get out now. Let the learning begin...

April 1st 2009: First post ever on PDIF.

160: Total Number of blog posts; Eight of which contained some kind of financial advice (The remaining 152 involved me referring to punching someone in the face or calling someone a douche bag).

15,642: Number of visitors since the conception of my blog.

3,541: Number of visitors in August

3,328: Number of visitors in September, clearly indicating people like me less as time goes on.

202: Most visitors in one day, referred from this interview found on Fabulously Broke.

$0.12: Average daily earning from Adsense.

$0.0000039: My hourly wage from blogging.

The majority of referred traffic finds my site by four means....
1) Google
2) Fabulously Broke
3) Well Heeled Blog
4) Jessies Money

Some funny phrases people typed in to Google and somehow made there way to my blog...

"Exactly how much is six figures?" (I feel embarrassed for this person)

"What happens if I don't wipe my butt?", "Back to front wiping", and "How to know if you've wiped your butt too much. (Write one innocent article and forever be tagged as a butt wiping professional).

"I don't know why I'm with my girlfriend" (Ladies, is this your man?)

"Am I going to hell?" (Probably)

Random other headers I have considered using for my blog...

and...

So there it is. Just a little bit about my journey over the last six months. It's been a great ride and I'm totally excited for what lies ahead. Thanks to all who stop by daily, especially to my loyal commenters. I am committed to making personal finance less boring.

p.s the google link is not a link to google at all...click it for a fun treat :)

Hugs and kisses,

We're all screwed!

ninja@punchdebtintheface.com (Punch Debt In The Face) — Tue, 27 Oct 2009 08:15:00 +0000

Have you heard about all the crazy new fees the big banks are tacking on to credit cards? I hadn't until I watched The Today Show. Usually I don't pay much attention to credit card fees. Why? Because I have never gotten one. I have ALWAYS paid my balance in full each month. Paying your balance guarantees no fees....right? WRONG!

We are all pretty much screwed. Those who can't afford to pay their balance in full have been getting screwed for a while, but now everyone's gonna be hurting. Here's just a few of the sneaky fees...

Initiating or increasing annual fees (aka: We hate you fee)...

Bank of America is testing out new annual fees of $29 to $99 on certain customers. How'd BoA decide who they were gonna hit with the new fees? They aren't telling. Hear this Bank of America, you increase my annual fee and I will punch you in the face and cancel my credit card faster than you can say "I smell like pantyhose"

Inactivity fees (aka: We really hate you fee)....

WTF? This one honestly dropped my jaw. I have a few credit cards that are really old, but that I never use. I keep the accounts open because my history with them gives my credit score a healthy bump. Ya really have three options here: Pay the inactivity fee, use the card (assuming you haven't cut it up...oops), or cancel it and damage your credit score.

Not Enough Activity Fees (aka: The bend over fee)...

I said it once before, but WTF!? I feel like the banks must have had a giant how-to-piss-off-our-customers board, with about 50 different ridiculous fees included. The CEO's then blindfold themselves and throw a dart at the board, thus creating the "not enough activity fee". Essentially if you don't charge at least "X" dollars on your card each month, or year (depending on the terms), you are gonna get penalized with a fee. Again a problem for me, considering I really only use one credit card, even though I have three in my name. Do I really want to be carrying balances on multiple cards, to avoid a stupid fee?

This is absolute insanity. I'm damned if I do and damned if I don't. I can either fork up the cash and pay these crazy new fees, or I can say "Funk You, Bank of America I'm out like a fat kid playing dodge ball" thus hurting my credit score. Even though I'm at the peak of my financial game, this could end up being a lose-lose situation. It's time for this ninja to start shopping around with local credit unions. I'm done with the big bank drama.

You can see the Today Show clip here to get the quick scoop on what I just ranted about.

Dear Sallie Mae

ninja@punchdebtintheface.com (Punch Debt In The Face) — Mon, 26 Oct 2009 07:20:00 +0000

I'm sorry. I have called you some pretty mean names during the last 8 months of my blogging career. Whore bag, ho bag, douche bag, and just about any other kind of "bag" are some of the insults that come to mind. I have been rather harsh and feel that an apology is in order.

As you know, I currently owe you $17,500 in student loan debt. I've held a grudge against you, when in fact I am mad at myself. You didn't force me to take out student loans and you didn't force me to consolidate the loans I did take out. That was a choice I made on my own. In fact, if it student loans didn't exist I would not have been able to attend the wonderful college I did.

Am I happy that I have debt? No. Am I grateful for four years of awesomeness. Hell yea. I would pay $17,500 today, if it meant I could go back and relive my college experience. I pretend to be mad at you for three reasons. First, I hate debt, and since you are the owner of my current debt, I am obligated to hate you as well. Secondly, you never informed me about the negatives associated with consolidating a student loan. Lastly, it's fun. Who else can I call a douche bag that wont punch me in the face for doing so?

I have learned an expensive, but valuable lesson: You are more than happy to take my money. I regret to inform you, that I will be minimizing the the profit you can make from my debt. With the giant payments I have been making each month, our relationship will not last much longer. Consider this official notice, of my intent to break up with you.

While your death grip may currently be wrapped around my neck, I will survive. I'm sorry for all the terrible names I have called you, but please do not expect me to stop. You're my number one whore girl :)

Respectfully,

Monthly Expenses: September (bonus edition)

ninja@punchdebtintheface.com (Punch Debt In The Face) — Fri, 23 Oct 2009 08:33:00 +0000

Okay before I get on with my Sept expenses, I came across this HILARIOUS article about one mans attempt to pay his debt with a drawing of a spider. The first email is above, but to laugh even harder go here and check out the full email dialogue. If you've already seen this, then I'm pissed at you for not sharing it with me.

Now on to the expenses. As always, here's the quick breakdown of where all my money went...

Explanation of Income:

Salary: My take home pay from the day job. I get paid every two weeks, so this usually doesn't fluctuate too much. It was a little higher than standard pay this month because I am on a business trip and have earned some overtime while here. Keep your eyes peeled for October because my monthly income is going to be even higher!

Gift: As I confessed before, I accept gifts from Momma Ninja when she is feeling generous. I use this money exclusively to pay down my student loan. I know some refuse to accept cash from the bank of mom and dad....I'm not one of those people :)

Explanation of Expenses:

Auto: Any maintenance and fuel costs associated with my car, excluding car insurance. Boo! This is the highest fuel cost I've had in a while. Usually I'm around $40 a month in gas. Don't worry though my gas bill in Oct will be $0.

Dining: I like to keep my dining bill under $100 each month, so I was pretty much right on the money. Yes I spent $7 more than my goal, sue me.

Groceries: My goal is to keep my dining and grocery total under $250 each month. I was over a $100 under budget this month. Confession: I'm on a business trip and they paid all my food costs from Sept 18th to the 30th.

Interest expense: Ah, stupid evil Sallie Mae....we meet again . I have a monthly obligation of $220 on my $17K debt. But I say "Screw the minimum monthly payment!" I'm trying to rid myself of this evil ho-bag as quick as I possibly can.

Travel: I still haven't really figured out a good method to track my expenses while I am on business. I pretty much include all expenses (dining, hotel, hookers) in the travel category 'cause I don't really see a point in itemizing these expenses. I get reimbursed for all travel related costs so I got nothing to worry about

The other categories were too unimportant or self explanatory so that is why I didn't cover them. The overall total at the bottom is the cash I had leftover after all my expenses. I had $346 left over which is sitting in my checking account right now. I have way too much money in my checking account, $3K, so once I get back home I'll be throwing another pretty penny at the student loan.

* Are you wondering why I post the previous month's expenses a couple weeks late? I use quicken to track my spending and I have to wait until the end of the billing cycle before I can download these transactions. I know I could manually add each expense as it comes, but I am entirely too lazy for that. Thanks for checking in and if you got any comments, tips, or advice I'd be more than happy to hear it. *

Who invented babies

ninja@punchdebtintheface.com (Punch Debt In The Face) — Thu, 22 Oct 2009 08:38:00 +0000

Seriously who invented babies, or better yet, who invented the desire to have babies? A while back I wrote an article about the cost of having a kid. Recently, Budgets are Sexy posted up a little article, discussing children becoming a part of his future. The article reminded me of a conversation I had with a friend who is currently pregnant. The conversation went a little like this...

Me: Have you ever wondered why we want to have kids? I mean it's pretty weird when you think about it. They cost a lot of money, take up a lot of our time, can be quite frustrating, and they poop themselves. I'm really perplexed why we desire to have children.

Friend: I use to think the same thing. They definitely cost a lot of money, but the joys of ~~owning~~ having a kid, must outweigh any of the perceived negatives.

Me: That's true. I definitely agree there must be a benefit to having kids, but I feel like if I had no concept of children, and then read about them, I would never want one.

Friend: Yeah, on paper having a kid probably isn't the most fun sounding thing. I guess we all have an innate desire to provide for and nurture someone else.

Me: I guess that makes sense.

Friend: Sure having a kid is going to be a lot of work, but being responsible for someone's well being is kind of cool when you think about it. Being able to help someone that can't help themselves is a pretty rewarding experience. I think that's really what it comes down to.

Me: Plus once they are like twelve years old, you can make them take out the garbage and stuff.

So what is it bloggers? I know the majority of my readers are younger and probably don't have children, but I'm sure there are some parents out there reading this. What is it about children that are so darn compelling? I know they can make me smile and feel warm fuzzies inside, but so can apple pie. There has to be some deeper underlying desire... right?

Fly finances (pun intended)

ninja@punchdebtintheface.com (Punch Debt In The Face) — Wed, 21 Oct 2009 09:15:00 +0000

If I could be any animal I would be a house fly. Okay, not really, I'd probably be a fire breathing squirrel, but house fly would be second on my list. Yeah I know flies are pretty gross looking and only have an average life span of about a month, but they do have one thing going for them: persistency. Sure they are rather annoying, but ya can't really say they lack commitment or dedication.

I was at the beach this weekend, trying to get my tan on, but a handful of flies were doing everything they could to prevent me from reaching ultimate relaxation. They'd buzz around me and land on my legs and stomach. I would try and swat at them, but they are just too darn quick and seemed to narrowly escape my hand each time. I think the flies got some sick pleasure out of taunting me, as they continued "touch and go" landings on my body. As annoyed as I was, I had to acknowledge the fact that these flies were persistent. Even when facing certain death as I swatted at them, they never gave up on their mission: Annoy the crap out of Debt Ninja.

This may be a stretch, but hear me out... Our financial attitude should mimic that of a fly. When declaring war on debt, like so many of us have, we have to keep consistent and remain committed to our battle. Paying down my student loan is not exactly my idea of a good time, but committing to being aggressive and throwing all my extra money at it will surely benefit me in the long run.

I have a stated goal of getting out of debt and becoming a bagillionaire. A fly has a goal of bugging the crap out of me while I chill out on the beach. Sure our goals are different, but the only way to achieve them is remaining persistent. Just as I tried to stop the fly from reaching it's goal (primarily by attempting to murder it), it's important to be aware that our lenders are going to try and prevent us from becoming debt free. They'll try and add late fees, increase our interest rates, and penalize the bajeezes out of us for sneezing. But we can not... I repeat, CAN NOT, let our creditors "swat" us to death. We will fight, persevere, and ultimately end up victorious. Let this be a lesson to you all, although flies may be gross, they can teach us a thing or two about managing our money.

When in doubt, go overseas

ninja@punchdebtintheface.com (Punch Debt In The Face) — Tue, 20 Oct 2009 08:15:00 +0000

My first international business trip has taught me some valuable life lessons. For example, don't drink the water. Maybe I'm naive, but I only thought this was true for Mexico and Kazakhstan, didn't know it was a virtually universal rule. Jet lag exists. I always thought it was some excuse people made for being cranky and/or lame. I did experience my first taste of jet lag on this trip, but I still think the term is overused. Jet lag for a flight from New York to China...maybe. From New York to New Jersey....I don't think so. Lastly, and the most important lesson, people make bank when working abroad.

There are a couple different private companies, where I currently am, that work on various government contracts. I have spoken with quite a few of the employees and am quickly realizing, they have the sweet life. Their incomes are average, but the benefits are second to none. I make $50K a year, but someone here can make $35K and walk away with more in their pocket. Here are a couple of the benefits all local defense contractor employees receive....

No federal income tax. Talk about a freakin' sweet deal. That right there automatically saves them 15%-30% of their income. They do pay a 5% tax to the local government, but I'd rather pay 5% than 25% any day.

No housing costs. It's all 100% paid for by the company. If you're single you live in "dorm style" housing. If you're married or have kids you get a small little two bedroom house. Sure, the living arrangements aren't the most "contemporary", but I'd live in a cardboard box in San Diego if it were free.

No food costs. When I learned the employee's here don't pay for food, I just about pooped myself. There is a buffet style dining hall, that everyone has access to at no cost to them. Granted eating in the same dining hall could get old, but they can go spend their money at the grocery store or the food court if they want.

No automobile, cell phone, internet, TV, water/electric bill related costs. Thats' right all the bills that nickel and dime us, don't exist out here. Since it is a military base, internet and tv are provided to everyone. There isn't a cell phone tower for 1000's of miles, so no cost there, and the island I'm on is so small, it's a bike only island. Imagine no car payments, no insurance, and no gas.

I'm sure there are even more benefits to working for a US company in a different country, but this is what I've heard about so far. To depress me further, I did some quick number crunching to figure out exactly how much I'm paying to live in California. I make $50K, but calculating in all the costs I mentioned above, it's more like $30K. I really had no clue someone can have a lower income, but make more money than me. I guess the $20K I'm paying each year to live in the states must be worth it...right?

The dreaded third pay check

ninja@punchdebtintheface.com (Punch Debt In The Face) — Mon, 19 Oct 2009 06:24:00 +0000

For those of us that get paid every two weeks, we face an epic battle, that others do not. For us, managing a budget is no easy task. Ten months of the year, things are just fine, but when March and October come around, my whole world turns upside down...I get an extra paycheck.

Although it is definitely a good problem to have, it does make things more difficult than other payment plans. We are really left with two options...

We can break up the two extra paychecks, by twelve, and calculate that in to our budget. Say for example you get $2K every two weeks. That means 10 months of the year your income will be $4K, but for two months it will be $6K. You can take the extra $4K (from the two extra paychecks) and divide that by twelve, this gives you $333. For budgeting purposes, you can average your monthly pay to be $4,333. In my opnion this method sucks. It's a lot of work, a lot of planning, and a waste of time.

I subscribe to the "Booya, extra money" budgeting plan. Instead of breaking up my extra two paychecks over the entire calender year, I simply pretend they don't exist. If I get $2K every two weeks, then I budget my cash flow around a $4K monthly income. When the time comes for the extra paycheck, I get to do with it what I want. Why? Because I have established spending habits around a $4K income.

If you haven't noticed...it's October, which means I'll have an extra $1,500 coming my way. Perhaps I will buy 1,500 McChickens, maybe I'll give it away to one of my lucky readers, but most likely I will contribute to my Roth IRA or pay down my student loan. Ah, the life of being a frugal ninja :) I know there are others that get paid every two weeks. What method do you use? Is there a third option I haven't thought of?

Improve your work situation

ninja@punchdebtintheface.com (Punch Debt In The Face) — Fri, 16 Oct 2009 08:45:00 +0000

I'm going to be perfectly honest. I don't think my boss liked me very much when I first started working. Unfortunately, I can't really blame him. I was pretty arrogant. I had done well in college, and felt it was now time to kick a$$ at work. I don't think I was a total douche bag, but I probably did carry a slight douche-tastic scent.

Fortunately, I have been pretty good at most things I work hard at. Probably because if I suck at it, I just give up and never do it (aka swimming and chess). I'm a Type-A kind of guy and have done some pretty cool things for my relatively young age. Why would I think work was going to be any different? I started my first day ready to climb to the top and be the highest performer/most valued employee.

Fast forward one year after my start date. It's annual review time and I anticipated hearing praise and worship from my boss, let's just say that's not exactly what happened. I sit down with him and am told that I'm not really a team player and I have put too much focus on trying to be the best.

I was devastated. I've never really received a negative review before, on anything! At first I was offended and wanted to argue all the negative points my boss brought up, but then I had an epiphany. Instead of argue why I'm a valuable employee, why don't I just do more to show him I'm valuable

During my second year of employment I started volunteering for less than desirable assignments. I've increased my productivity to be one of the top performers on my team. I check in with my boss every couple of months and ask if he has any advice on things I can do to further increase value to the agency. Essentially, I started being a team player. I had to swallow my pride, and rely on my boss and coworkers to nurture my success.

Luckily I think it has worked. I have a better relationship with the boss now. I don't think he sees me as an arrogant young punk, but instead as someone that has a genuine desire to work hard and be among the best. I guess the moral of the story is this. The best way to improve your work situation, is to be flexible and willing to adapt to the needs and/or recommendations of those more superior to you. Having a pleasant relationship with your boss is absolutely crucial to having an enjoyable work experience. Even if you think your supervisor is a total tool; shut up, smile, and say "Yes sir, thank you sir, anything else I can do for you?"

How far will you go to get a good deal

ninja@punchdebtintheface.com (Punch Debt In The Face) — Thu, 15 Oct 2009 07:35:00 +0000

We all have "that friend", the one who will drive 30 miles across town to save $0.02 per gallon on their gasoline. I get a kick out of how far people will go to get a good deal. Call me crazy, but I'll almost always take an okay deal with minimal effort, over a lot of effort for a good deal. That's not to say that I don't get a little intense from time to time.

Let's run through a little test and see if you are normal bargain shopper, or if you fall in to the "obsessed with getting a good deal" category. Answer the following questions....

1) Do you shop on The day after thanksgiving (black friday)?

2) Do you send in rebates valued under $5?

3) Have you changed your savings account more than twice in the last year because of better interest rates offered elsewhere?

4) Have you bought more of something than you actually needed just because it was on sale?

5) Do you try and barter with salespersons that work at stores that typically don't negotiate? (Best Buy, Costco, etc)

If you answered yes, to any of those questions, you are probably a pretty intense deal seeker. I have to admit I am guilty of question 5. I was at Costco once looking to purchase a monitor for my computer. The specific monitor I wanted was sold out, except for the display model. I tried for about 30mins to barter with the Costco manager, hoping he would give me a discount for purchasing the display model. He wouldn't drop the price, so I had to punch him in the face say goodbye and leave monitorless.

We are probably all guilty of obsessive deal hunting, but the line has to be drawn somewhere. If you plan to wake up before 8am on Black Friday this year, you just might have an addiction to getting a good deal. I mean come on, people die at Wal-Mart as they get trampled by the bargain mob. Anyone else feeling brave and willing to share an embarrassing "deal hunting" story? Are you guilty of doing the across town gas station fill up?

I'm just a really old teenager.

ninja@punchdebtintheface.com (Punch Debt In The Face) — Wed, 14 Oct 2009 07:43:00 +0000

Sometimes I think to myself. I can't believe I'm a grown up. I don't feel old. I don't look old, and I sure as hell don't act old. I use to think "old" was an age, but I'm quickly learning it's a lifestyle. I sit here now, wondering, what else can I expect for my future?

I remember being bored to death when my parents would watch political news. It didn't make any sense to me. Why was watching some old guy talk about two other old guys interesting? If it wasn't on MTV, I didn't watch it.

Same goes for finances. I don't mean to toot my own horn, but I'm pretty awesome at math. Although I have always enjoyed numbers, I hated dealing with money. Need an example? It's quite embarrassing, but my mom handled all my money in college. It was so bad, I didn't even know how to transfer money from my savings to my checking account. Whenever my checking was low, I would call my mom and ask her to transfer "X" amount of dollars for me. Not only that, but I didn't know how to write my own check until I was 21.

As much as I don't want to accept it, I guess I am a kind of a legitimate grown up. I live on my own, manage my own money, and even cook my own dinner! I find myself becoming more and more interested in "old guy" stuff like politics and finances. I'm wondering what other things will tickle my fancy as I age? Maybe I will take up quilting or shuffleboard. I can't help but laugh when I reflect on how much I hated the shows my parents watched when I was a kid, to now find myself watching the same darn channels.

In a final attempt to enjoy my youth I think I'm going to go buy a pair of Jnco jeans (please tell me someone remembers these), a hacky sack, a set of pogs, and I'm gonna go watch TGIF. Suck it Fox News and MSNBC, I'm staying young!

Savings are for stupid-heads

ninja@punchdebtintheface.com (Punch Debt In The Face) — Tue, 13 Oct 2009 06:46:00 +0000

Sorry I seemed to drop of the face of the earth the last couple days, but I've quickly learned after living on an island no bigger than a Super Wal-Mart, the internet here is quite unreliable. I'm glad to be up and running today, so hopefully I will be able to post regularly. Now on to bigger and better things.

Don't get confused by my title debt punchers, I love saving money. In fact everyone should save. I'm a huge fan of my online savings, account. Actually, that's not completely true. I was a huge fan until Bank of America took over my Countrywide account. Once I return stateside, I plan to convert to the ING cult.

As important as I think my savings account is, I'm not gonna lie, it's only my second most favorite way to pay for things. My all time favorite way to pay for future expenses is cash flow.

I may have money in the bank, but I hate spending it. In fact, I haven't withdrawn one cent from my savings account in the two years I've had it (except for some early Roth IRA contributions). Virtually all expenses can be anticipated, and as I anticipate them, I figure out ways to use my income to afford them. This keeps me from dipping in to my savings. Take for example the digital camera, I blogged about recently. I've wanted it for a while and have more than enough cash in the bank to afford the purchase, but when I finally decide on the camera I want, you wont see my savings account drop a penny. Instead, I'll set aside a couple hundred dollars over two or so months of paychecks until I reach the purchase amount. Then, I roll up to the Best Buy like a true gangsta and say "Give me my camera...please."

There are a couple benefits to using the cash-flow system for small to medium expenses. First, your savings account is truly a savings account (not some quasi-savings/quasi-spending thingy). Second, it limits buyers remorse and impulse buying. If I set up a cash-flow system, then I am forced to wait on the purchase at least until my next paycheck. Lastly, it makes you sound really cool when people ask if you want to finance your purchase and you say "Hell no, I'm cash flowin' this biotch."

Do you all work the cash flow system in to your medium sized purchases? Do you regularly dip in to your savings account, for non-emergency items? Did you miss me these last four days? Lord knows, I barely survived without you all.

Willpower is genetic?

ninja@punchdebtintheface.com (Punch Debt In The Face) — Thu, 08 Oct 2009 08:15:00 +0000

A few weeks ago, I briefly mentioned an article at I Will Teach You To Be Rich. It was titled Ugh,why don't fat people just eat less? I have wanted to talk about my opinions in reference to the article for a while, so I do so today. Here's a brief passage from the article.

Most importantly, behavioral change is not simply about trying harder. Yes, effort is important, but whether it’s passive barriers or the variety of other reasons that illustrate how personal finance is not about more willpower, let’s be real: Behavioral change is incredibly complex and difficult.
Anyone who believes people overeat and overspend simply because of a lack of willpower is simplistically ignoring decades of research so they can ideologically mislead themselves.

Although I do agree that both nature and nurture play huge parts in human development, I am still skeptical of blaming genetics for all our problems. Few would say DNA has no role in our development, but, and this is a big but, I do think we have allowed our DNA to limit us. It's become a crutch that too many use as a reason to underperform.

I'm just not buying the "My DNA has cursed debt upon me" argument. People get caught up in the "This research shows....blah blah blah" and never think past it. I would like to remind them of Newton's third law of statistics...For every statistic there is an equal and opposite statistic (that's what it was right?) You can also find stats that show saturated fat and high fructose corn syrup are beneficial to the human body. Don't live a life bound by how statistics tell you to live.

Maybe I am ignorant, but I refuse to subscribe to science that says I am forced in to medocrity. For anyone that disagrees, take a good look at Barack Obama, little (if anything) in his upbringing, would lead anyone to believe he was going to be President. I say, "Be the exception, not the rule." Do you think I'm ignorant for ignoring scientific research? Well, ignorance is bliss and I'm one happy ninja.

Addiction Whore.

ninja@punchdebtintheface.com (Punch Debt In The Face) — Wed, 07 Oct 2009 08:51:00 +0000

Are you like me? Do you get temporarily obsessed with random things? Maybe I'm bi-polar, maybe I lack commitment, but I sit here reflecting on all of the glorious obsessions I have had over the last couple years. Some persist, but many are short lived.

HGTV: Yes, it is terribly embarrassing to admit, but I was quite addicted to the channel. Any show that involved the home buying process was like a drug to me. I seriously think one day I watched four hours of Property Virgins and My First Place.

Photoshop: Holy crap, do yourself a favor and avoid Photoshop at all costs. There is no way to avoid an instant addiction to it. I mean it's the best way to make a crappy photo, less crappy. It has so many features that it is easy to spend ten or so hours just learning how to use one tool.

Olympics: Don't even try talking to me when the Olympics are on TV. I seriously am obsessed with every single Olympic sport. Yes, that includes male gymnastics. The worst part about being hooked, the Olympics typically are on at really awkward hours when they are hosted in different countries.

Personal Finance: Fortunately this is a relatively healthy and continual addiction. I say "relatively", as I'm sure many of us could admit we may spend a little too much time focusing on our finances. I'm particularly interested in clever ways to make and save money. Mention something like "Credit card arbitrage" and it's almost a guarantee I'll research the crap out of it until I decide if it's for me (arbitrage is not).

The list goes on and on, I'm seriously an addiction whore. If something tickles my fancy, I get super in to it, and about two months later I move on to something new. Maybe it's a bad thing that I can't stay committed, but I like to think that this makes me a more "well rounded individual" (at least that's what I put on my college application). What about you? What are some of your recent addictions? Please tell me I'm not crazy, and there are others out there that suffer from short-term-addictionitis.

P.S. Happy birthday to Brother Ninja today, He turns 21 and is partying it up in Vegas! Put the beer and poker chips down brother :)

Mini Fridge Hell

ninja@punchdebtintheface.com (Punch Debt In The Face) — Tue, 06 Oct 2009 07:38:00 +0000

I now can say I have experienced a little taste of hell. As you all are aware, I am currently on a business trip on a very tiny island in far east Asia. I have blogged a few times about my food setbacks when I wrote about packing a lunch and how awkward eating out alone can be on business trips.

Consider those issues trivial compared to the issue I now face. There are only a handful of food options where I'm staying. There's a burger king, subway, pizza place, one buffet style cafeteria, and a grocery store. After two weeks of whopper juniors, 12 inch subs, and medium pizzas, I'm pretty sure my stomach wants to punch me in the face.

My hotel room is equipped with a mini-fridge and a microwave. I've done the peanut butter and jelly thing a handful of times, but I am in need of some nutritional meals that don't require an oven or a stove. The meals I typically make for myself, back home, all require some type of cooking.

Imagine your oven/stove broke down today and you couldn't get it fixed for six weeks. What would you work in to your diet? I've flirted with the idea of making a salad, but would get pretty sick of it after about two meals. Right now my "mini fridge diet" consists of PB&J, cereal, apples, pears, oranges, and yogurt. That's all I got. I'm freaked out by cooking things in the microwave (I feel like it makes my food toxic....crazy I know) so frozen dinners and the like aren't really an option.

Anyone have any crazy delicious sandwich combinations that are easy and never get old? My culinary skills are quite elementary so try and keep it to recipes you would trust a 3rd grader with :) I may be a Debt Ninja, but I am in no way any kind of Chef Ninja. Oh, and keep in mind the grocery store on this island is pretty ghetto so pre-made sandwiches/salads/soups don't exist here.

Banks are geniuses!

ninja@punchdebtintheface.com (Punch Debt In The Face) — Fri, 02 Oct 2009 09:22:00 +0000

Now I know banks obviously have their best interest at heart and not always their customers, but they have come up with some pretty clever programs to bring home even more bacon. I had someone email me a while back asking for ways they can try and rebuild their credit, when no one will lend them money.

One of my suggestions to them: Attempt to obtain a secured credit card. If you don't know what a secured credit card is, I'll break it down for you. The bank looks at you and decides you are way to unreliable to give a normal credit card to. They say "Hey give us $500 and we will give you a quasi-credit card with a $500 limit." Essentially they allow you to borrow your own money from them. If you use the card for small purchases, and make your minimum payments (or pay the balance in full) each month, then the bank will eventually feel comfortable lending you some of their money. Soon enough you will be able to sign up credit card, bank loans, car loans, and any other kind of debt you want (although I'll punch you in the face if you take advantage of all this credit).

If you think that a secured credit card is a good option for you, you might want to check yourself before you wreck yourself...here's why. If you miss a payment, or are late, the bank still is going to charge you interest and fees. That's right. They charge the crap out of you for using your own money. Here's how it works....

You give them $500, they give you a secured credit card
You use $100 at the grocery store, and make a payment of $50 at months end.
The bank now charges you $15 in interest for borrowing your own money.

Booya, score one for the banks! I don't think people that have secured credit cards realize they get virtually no benefits of an actual credit card, but could end up getting charged a ton for using their own money. The secured credit card does have a benefit; improving your credit score if you're a responsible borrower, but for the irresponsible you'd be better off smoking dope laced with mushrooms that were dipped in black tar.

Net Worth: Oct. 2009

ninja@punchdebtintheface.com (Punch Debt In The Face) — Thu, 01 Oct 2009 09:32:00 +0000

Another month is in the books, and it's time to see how my net worth is looking. The last 30 days have been financially uneventful. I guess this is the part where my net worth gains become less exciting and more systematic. I wont be seeing 750%+ increases like I was a couple months ago, but hey at least I'm continuing upwards! Let's check it out...

Note: My NW is pretty easy to calculate because I don't own very many things. I have a savings/checking account and a couple retirement accounts . I chose not to include things like personal belongings (laptop, camera, etc) or my car (which would add probably $8K to my worth) because I figure those are things I will always need and wouldn't really want to go with out.

Checking Account: $1,243 +$148. I try and keep around $1,000 in my checking account at all times. No point in keeping more than a "G" in my checking at this point in my life.

Savings Account: $14,712, +$17. My savings account currently earns 1.3% interest, so that is the only reason it grew over the last month. I made a decision that I was going to halt contributing to my savings account for the time being (since I have an adequate E-fund) and will focus all my discretionary income to my student loan.

Roth IRA: $11,661, +$447. Keep on keepin' on stock market. I could still contribute $1,500 to it this year, but will probably hold off as I focus on my debt.

401K: $9,401, +$865. Eight percent of each paycheck makes its way in to this account. I invest in very similar funds in both my Roth IRA and 401K (mutual funds). I get 5% of my paycheck fully matched, so you know I'm not about to pass up free money.

Student Loan: -$17,994, +$1,358. It started at 28K on 02/08. I have been making at least $1,000 monthly payments on this after some words of wisdom from my wonderful readers. Can't wait to be rid of these biotch in about a year!!!

So what does this bring my total net worth too... $19,173. I'm up $2,985 from last month. I'm really glad that I can grow between $2K to $3K each month. I don't anticipate decreasing in worth until I experience the joys/pains of home ownership. Hopefully this next month will be a larger net worth increase since I receive three paychecks (instead of two) this month!

If you have wondered why the blue bar (debt) in the graph sometimes increases, it's because my credit card balance gets taken in to account each month. Even though I pay the balance in full it still appears as a "liability" in Quicken. I just deduct this from my checking account balance to give myself an accurate net worth reading.

Take care ya'll.