Here it is, January 17th already! My, how time flies! Well, I promised to keep updates on the progress of my resolutions. So, what better time than now?

• I enrolled in my company’s 401K plan, with a 5% deduction bi-weekly, pretax, with a 5% employer match.  5% of each check pre-tax is $77 dollars, plus the match gives me a total monthly contribution of $308, which is $4,004 annually. So, I’m off to a good start on that. Unfortunately, I have to cash out my current Roth IRA to clear the dead-car debt, but being that I’m only 23, I’ve got time to start a new retirement account, so no worries there.
• I set up an ING Savings Direct account, with a bi-weekly contribution of $50. It’s small but I want to make sure I still have a cushion in my checking after monthly bills are paid. By the end of January, I’ll have $150 in savings, with an annual saving of $1300.
• Unfortunately in 2009,  I filed a status of 10 dependents, leaving no margin for federal taxes. So, I’ve been hit hard this year with a $3,000 bill from Mr. IRS. To keep this from happening again next year, I’ve reduced my filing status BACK down to 1. This sets back my plans to return to school until the Fall. I’ll be filing at the last possible date in April so that I have time to pay off the dead-car and lower my overall debt to Citi Financial.
• So, the hardship now faced is the $350 reduction in my net pay bi-weekly. This is a total budget cut of $700 monthly. But, with the absence of the car payment, Ann Taylor credit card, and car insurance bills, I should still be able to live well within my means while still making contributions to my 401K, savings, and towards lowering my overall debt.
• The last thing I’ve done so far is applied (and was approved for) a Capital One Mastercard. It has a 0% APR until January 2011, and gives me an emergency cushion as well as helps rebuild my horrible credit. By using it sporadically and paying it off in full each month, I’ll slowly rebuild my credit WHILE still reducing my debt. Once I’m ready to start saving for a down payment on a house, I’ll have my credit at least partially repaired.

In other areas (needing improvements), I’ve begun working out more; both at home and at the free gym in our complex. I love to dance as oppose to just exercising. It’s more engaging for me and gives me the unwinding effect after sitting at a desk all day. I think Jack particularly loves me kicking his soccer ball around while I’m moving, so I can kill two birds with one stone there. I’ve also been updating my knowledge of the web world, having done some back-end updates of my blog and now venturing into Google Wave. Be looking for some integration on that end soon!

Until next time,

B.

My 2010 REASONABLE goals are:

• Gain better control of my personal finances by creating a realistic, sustainable budget and significantly reduce my personal loan debt by 50%.

• Pursue a certificate to improve my skill-set in Office Management by first completing  a CSC- Business Information Technology and then by beginning the one-year certificate in CSC- Business Management Principles at NOVA.

There. No outrageous, unattainable resolutions. Just a simple list with only two items, both of which explaining HOW I plan to achieve those goals. I always hear people say, “this year, I’ll [insert lame resolution here]” without ever sharing how they intend to accomplish it. I’ll keep you posted on the process of how I’m working towards these two goals in the coming months.

The coming of the New Year celebrates a new beginning, a chance to right your wrongs. Some cultures believe New Year’s Eve a time to repent for your sins and ask your enemies for forgiveness. Whatever tradition says, Americans have come to use this time as a time of introspect. Every year, we give ourselves outrageous unreachable goals destined to fail, then feel horrible about ourselves for failing. Don’t think of this time as a time to change, think of this time as a time of learning. Every day is a gift and should be treasured as so. So, no, I have no New Year’s Resolution, only a wish. A wish of peace, prosperity, and plain old good luck to everyone I know and love. And even to those I don’t know.