Turning Down Extra Money

The other day I was offered a chance to earn an extra $500 per month for next school year. I'm leaing towards turning it down.

I was offered an auxiliary class, meaning I would only get my conference period half the time, and the other half I would teach a class during what would normally be my conference. The days I don't have a conference I would earn my hourly rate for the 90 minutes of teaching I'd do. Because the school is a block schedule, that means I'd have a 90 minute conference period two days a week and a 45 minute conference every other week. I did the math, and accounting for taxes I think I'd make approximately $500 more per month (on months without long breaks, like Christmas, etc.).

While the money is good, I think I'm going to pass. In part because I will be doing yearbook at the high school level for the first time (which is a lot of work), and because while the money would be great, I don't think it's worth the insanity of not having a conference period every day. 

I think this is marking a transition in my PF journey. If I still had my credit cards or my car to pay off, I would have taken it for sure. But, now that I don't have either of those hanging over me, I don't feel like I have to do this. I could, and it's still on the table...they don't need an answer until the end of next month, but I don't have to do it anymore. I have the freedom to say "no thanks." Which is a pretty amazing feeling, no matter what decision I make.

Would you take the extra class? Have you reached a point where paying off debt has given you more freedom?

Free Prescription Glasses!

If you go to Facebook and like Coastal Contacts you can get a code for a free pair of prescription glasses! I just picked mine out and got this funky fresh pair. :) 

You have to know your prescription and you have to pay shipping and handling charges (mine came out to $12). But, that's less than I spend when I go to Lens Crafters each year, so I went for it. Plus, it's nice to have a backup pair of glasses. 

Why are you still reading? Go to Facebook and make this happen!

Extra Work=Extra Pay

As a teacher I do a lot of work that I don't get paid for. It's the nature of the job, and it doesn't (usually) bother me. BUT, when we have an opportunity to get paid extra to do extra work, I am all over it.

In August the new school I am working at is offering ten planning/professional development days (six hours each) at a rate of $25/hour. I will be on vacation for four of them, but I am planning on going to the other six. YES! There are also three required days that are not in our contract which we will be paid our hourly rate for. The "hourly" rate is our daily salary divided by six hours, so it's a pretty good amount.

I am accounting for taxes taking a chunk and planning conervatively I should still have an extra $1,000 on my September check (if not a bit more). I think I will budget around $250 to get new clothes, since I hardly ever do that anymore. I also like to do some back to school shopping each year and get some new work clothes. The other $750 I think I will split between my E-fund and my student loan.

Yes, I am planning for money that I will not get until September. For work I won't do until August. But I just found out about the optional days this morning, and I'm excited about them. :)

INTERESTing (it's a pun. I'm a dork.)

This morning I went to ING Direct's website to check out how their savings accounts work. I have always heard that they have higher interest rates than other banks, so I was a little surprised to see that their savings account interest rate is only one percent. That's it?!?!

My credit union has two types of savings accounts. The regular one only has an interest rate of 0.1%, so I realize that ING direct can offer me ten times that. BUT. My other option is the Educator Summer Saver Account. This account has more restrictions, but the perk is that it has an interest rate of 3.92%.

Here's how the summer saver works:
*Deposits are only allowed via direct deposit
*You can take money out six times per month
*Every August all the money in the account dumps into your checking account (it's designed for teachers who don't get paid during the summer.)

Up until now I've used this account as my emergency fund, depositing $100 per month into it. When it dumps in August I moved it to my regular savings account.

Finding out these interest rates sort of helps me decide how I want to handle the extra money I'll have at my disposal starting in August. I had originally planned to open a few ING accounts for different categories. But, it doesn't make sense not to take advantage of the Summer Saver interest rate.

SO, here's my new plan: Starting in September I am going to have all of my paycheck deposited into the Summer Saver. I'll create my monthly budget and transfer that into my checking right when I get paid. That way, whatever is not budgeted will be saved. I am going to open an ING savings to use as my E-fund and so that when the money dumps out of the Summer Saver in August I can get a little better interest rate on it.

If I need to use the saved money for travel or a computer, or a wedding, I can get to it. I don't think the six times a month restriction will be a problem. But, I am not going to make separate savings accounts for right now. I'm just going to go big on my savings, and maybe make a large goal to have saved up by the end of the school year so that I am motivated to keep that money in savings.

Do you ever dictate your plans by interest rates? Anywhere else I can get better interest rates that you know of? Anyone have an ING code that gives you money if I open an account?

The Budget is Blown...

I was going to start this post talking about how expensive June is, but then I decided to keep it real and just say that I've been spending a lot of money because I feel like it.

I bought plane tickets for Chicago in August and Alaska in July: $700
I got my hair cut and colored: $105
I took four kids out to dinner who won an essay contest in my class: $55
I got my TA a graduation gift, which he totally deserves because he's a great TA: $20
I went to the Victoria's Secret Semi-Annual Sale. Got some necessities and some not so necessities: $125
BF really wants to go to the beer dinner at our favorite brewery. He might be paying for it, or we might split it, I'm not sure. But that will be $50 each.

Things have gotten a little crazy.

Now, some of this really was budgeted for. My hair appointment, for example. And I had about $425 left over after my budgeted items, which was to be used for plane tickets. But jeez-louise, I've spent a lot of money this month.

And to be completely honest, I can feel the old me in there whispering, "Just go crazy. You already overspent. Go buy that new pair of shoes you've been wanting. Go to Victoria's Secret again and buy some more stuff on sale. See what they have a Nordstrom Rack."

Shut up little voice. Shut up.

I'm going to do what I need to do. I'm not going to buy any more stuff, and I may take back one of the $30 items to VS. (Or I may not. I haven't decided yet.) I'm going to pull around $275 from my savings to cover the purchases and then replace the amount when I get paid in July. But, it's interesting how it still feels really appealing to just blow the budget and buy whatever I want. I thought I was sort of past that now, and apparently I'm not.

Decisions, Decisions

Okay, dear readers, it is time for you to vote. Not for a political office, nor for something really important like a reality TV dancing competition. No, for what I shall do with my extra funds when my car is paid off (saving $500/month) and BF moves in (saving $450/month).

Starting in August I will have approximately $950 more dollars per month at my disposal. Which will be AMAZING. I am giving myself permission to use the money in August for my Chicago trip as well as some back to school shopping, since I rarely go big on the shopping. But in September I want to have a plan for that money so it doesn't slip through my fingers.

Below are three ideas I have for how to handle the money. Please vote on your favorite and tell me why. Then, I'll add them all up and probably do whatever I want anyway. But if you make an excellent point I might listen. And credit your brilliance for changing my life. Okay, onto the plans!

Plan A
*Save $500 per month in savings, not earmarked for anything specific. Just save for whatever future events/expenses may come.
*Put an extra $450 toward my student loan, which is my last remaining debt. It does have incredibly low interest though.

Plan B
*$100/month in car fund (for repairs and eventually a new car)
*$100/month in a travel fund (I like to go places)
*$100/month in computer fund (for whenever my laptop of five years crashes or to eventually buy a desktop with BF)
*$400/month toward wedding fund (I'm not engaged but it's being talked about). This could also become house down payment fund, depending on what the future holds.
*$250/month toward student loans

Plan C
*$950/month toward student loans. This would have them paid off in a year, though if I use tax returns for the debt I could definitely have it done in a 10 months, most likely less than that!


I am leaning toward plan B, because it makes progress on several goals that I have for myself. Also, any unbudgeted funds (which have been my car snowflakes) could go toward student loans, so even though I'd only be adding $200 more dollars per month officially, it could definitely be more than that.

The appeal of Plan C is being able to say I'm 100% debt free by September of 2012 (at the latest). Though, BF has student loans and a car payment, and if wedding bells are in the future, I'll just take on his debt at that point. And if wedding bells do occur, I'd have to sidetrack that plan to pay for said nuptials.

Cast your ballots now! Standard text messaging rates apply. You may only vote once a day. Watch for dangling chads. Don't swim half an hour after eating.

Should I Diversify?

This school year I finally started a 403(b). During my sixth year of teaching. I know, I know. I put $220 per month in there, soon to go up to approximately $400 per month.

Also, since I am a teacher I will get a pension when I retire. So, there's that.

My question: should I open another type of retirement account? Like a Roth IRA or something? Or, should I stick with my pension and 403(b) and use my funds elsewhere?

Would it make sense to keep increasing the amount in my 403(b), or should I start a new kind of account to diversify?

I'd love input on this issue. I'd also like to save for a house (hence the name of the blog), but not at the expense of my retirement. I think a pension and a 403(b) are sufficient, but I also have very little idea of how much I need to save for retirement. Like, no idea, really. Help a blogger out.