Double Debt Single Woman

Renting a New Room and Writing a New Budget

Posted on June 21, 2014 by Double Debt Single Woman

(This is not a picture of my new room. My room will not be as nice as this, but it’s somewhat similar.)

As you may know from my past posts, I have been sharing (one roommate) an overpriced apartment for the past year. One of my goals for 2014 was to find a cheaper and cleaner place to live once my lease ended. Well, the good news is that I have! I found a room on Craigslist a week or so ago that I went to see.

It was not love at first sight. The picture in the ad left much to be desired, but the rent was affordable so I had to at least check it out. It is a few towns over from where I live now. I decided to walk there from the public transit station along the busy main street. It was unusually hot that day and there were a couple of points where I thought I’d miscalculated the distance on the map and wanted to turn around and go back home, but I didn’t and eventually found the place.

There are three roommates, all women in 40s/50s, pleasant, so that may be a positive change. The room, like the house, was small, old, and a little dark, but neat. At first I didn’t like it at all, but the more I kept thinking about it, the more it made sense to rent the room.

Image credit: photographymad.com

I went back a few days later to drop off the deposit, sign the lease and see the room again. Talk about a big difference! I took a different route to get there by walking along a green walking and biking path that I’d learned about thanks to Google Maps. It was cool, breezy, and calm. I got there before I knew it, and realized that the house is within a few blocks of a small public library (win!), a popular local natural grocery store (big win!) and a small gym.

One of my long-standing goals is to find a way to get in shape. For the first time in my life I have developed the dreaded muffin top. My skin, which was never clear to begin with, has gone completely to crap, and I have the ironically named ‘laugh lines’ exploding all over my face. Why? It’s not from laughing, I assure you. I’ve been stressed out to the point of burnout over the past year.

I’m hoping that being near a good grocery store and a running path will make it easier for me to make some much needed health improvements. I don’t know if I’ll spend money to go to a gym, but if I can at least start running that’s half of the first battle. Anyway, as I said, what a difference a few days made. I’m glad that I didn’t pass this place by because of the Craigslist picture. I’m glad I didn’t turn around on my way to see it that first day. I can make this room work. As long as its safe, clean, and bug free, I’ll be fine.

Image credit: stackthatmoney

I’m mostly excited about the rent. Did I say it was affordable? It is only $500 /month INCLUDING all utilities and wi-fi!!

Depending on where you live, $500 per month may not seem special, but where I live now, rent that low is RARE to find. So my housing costs will drop from $1500 /mo. to $500/ mo. for a $1000 savings each month! I can’t wait to start throwing all of it towards this credit card debt. With this housing shift, I will be back on track to kill this credit card debt entirely this year!

I won’t be living high on the hog, or even low on the hog. You all know I’d MUCH rather have my own place, but by doing this I’ll have less and less debt to stress out over. I hope to be in the room as little as possible and spend more time outside for once, so that’s another goal.

After this credit card debt is gone, I’ll reformulate my basic budget

MY AUG – DEC. 2014 BASIC BUDGET

Yeah, that phone charge is out of control. I felt like I had to go unlimited because I currently work from home 2 days per week and with all the conference call meetings i’m on everyday – I kept running out of minutes and getting slammed with extra charges. (I don’t get a company phone.) I will be looking into how to reduce this.

I really hope this new room works out for me and I can stay for a while. This may be the best shot that I have for while to cut down this debt. I’m finally getting back on track to follow my own advice.

Cutting down on housing and transportation expenses are the quickest ways to save the most money. If you’re thinking about taking the leap yourself…

Image Credit: thetaline.org

“Debtor’s prison is real, and opportunity cost is a bitch.” (DDSW)

Where is my CTRL+ALT+DELETE button? Craigslist season opens again.

Posted on May 26, 2014 by Double Debt Single Woman

Credit: John Ackerly

I know I’ve been M.I.A for a while. My job is causing me all kinds of stress. It then takes me all weekend to build the strength to string two thoughts together, let alone write a partially coherent blog post. My new manager is still scary. Every time she requests a meeting with me I panic that I’m going to get reprimanded and put on the short list for a PIP (the pre-firing “performance improvement plan”).

I’ve slowed down my debt pay off. This has been hard for me to do because I’m getting so close to being in four digits of credit card debt instead of five. It will be such a boost to be under $10,000. Why am I slowing down my credit card ~~murder~~ payoff? I need to move. My lease will be ending within the next couple of months and I want to find someplace much cheaper to live. I also want to be able to see what kitchen counters look like again (messy packrat roommate). Soooo, I will need to save 2X – 3X rent to move into a new place. I’m sure this housing hunt will earn another post. If you’ve ever competed for housing on Craigslist in a large city with a housing shortage, you’ll understand.

Craigslist roommate listings. You either get:

1. The overly specific poster with a long list of random requirements. It’s easier to join the cast of Big Brother, than get a room in their apartment. O.M.G.! “Must play french horn with us every Tuesday evening and speak Swahili to our three 10 year old triplet Bengal cats”. NEXT! Sigh…

2. The poster with weird habits that don’t match your weird habits. A lot of ads have this kind of “kicker” at the bottom of the ad. Everything sounds great until you get to the last paragraph. “Oh, by the way all 5 of the other roommates will have to go through your room to get to the kitchen. The last tenant didn’t mind”. (Really? Well, you should get him/her back.) I’ve started reading the last paragraph first to save time. Sigh… “NEXT!”

3. The poster who wants your money, but doesn’t want you.

These posters will do things like spend several sentences bragging about the gourmet grocery stores within walking distance. In the last paragraph they inform you that there are no kitchen privileges. WTH?! Am I supposed to feed myself by cooking out in the backyard on a hot rock? Oh, wait, I won’t have backyard privileges either… Sigh… NEXT!

You know what? I’ll confess. If I ever had a room to rent, I’d be likely to write one like #3… There, I’m guilty. But that shouldn’t be surprising considering that I REALLY want my own place.

Ha!

Craigslist weirdness, big city weirdness, and hell, even my weirdness (We all have a bit. Yes you too – don’t deny it 😉 ) are making for good times… NOT! I’ve already told you about what happened to me last year and how I ended up in my current housing situation… In any event, my goal is to rent a cheap room for a year, kill off any remaining credit card debt and save some money before I even think about getting my own place.

Assuming I find a decent room, what will I do with said anticipated saved money (~$3k – 8k)? I haven’t decided yet. Should I keep it as an emergency fund? I’m not convinced that my job is secure. Should I put it in my high deductible HSA (health savings account)? My health issues will have to be addressed at some point. Should I use it to fund travel? Should I open a 401k with my employer and send it there? Should I just throw it at the $100k of student loan debt? I need to work through identifying and re-evaluating what my financial goals are.

Another year of renting a room means that next year I’ll be 40 and still homeless. Not literally of course, but for me, not having my own apartment feels like a form of homelessness. Is renting a room one step up from couch-surfing? Sometimes I wish I had a CTRL+ALT+DELETE reboot command for life. I wish life problems could be solved that easily… Short of having that, it IS within our ability to launch our own personal life ‘task manager’. I can’t start over, but I can decide what I prioritize and spend time / money on going forward. I can decide what activities/goals I shut down/drop from my life.

Decisions, decisions…

“Debtor’s prison is real, and opportunity cost is a bitch.” (DDSW)

Is It Ok to Travel While in Debt?

Posted on April 19, 2014 by Double Debt Single Woman

I’ve been reading some things in the blogosphere lately that have me thinking about my previous post in which I share my plan to take an international trip next year once out of credit card debt, but while still in student loan debt.

Trent at The Simple Dollar blog recently posted about the importance of celebrating achievements in a smart way, and not in a destructive way. Yes, as usual, he makes some good points. It is wise to be deliberate in one’s decision making and to celebrate achievements in ways that do not sabotage one’s goals.

There are a lot of opinions on whether or not travel while in debt is acceptable. At the most basic level, there are two opposing camps.

On one side of the argument are those who are against someone taking a trip while in debt regardless of circumstance. The motto: “Stay the course. No detours. No distractions. Go! Go! Go!”

Anti-Travel (while in debt)

(1) It’s all about the money

Numbers tell the story. Every penny thrown at debt is a penny closer to freedom, in the form of lower principal and less interest paid. Creditors are entitled to every penny you make until they get their money back. Not taking a trip means getting out of debt sooner.

If I take this trip, it will delay my student loan payoff by two months. To this camp, it is better to pay off all the debt first, then take the trips. If I throw everything at the student loans (minus bare minimum 401k contributions), I could pay them off in 4-5 years. I would be 45 before I could travel. If I contribute to retirement more aggressively, it would take me 10 years to get out of student loan debt. I would be 50 and graying before I could travel. ‘Oh well’, say the anti-travel people, ‘Them’s the breaks. You shouldn’t have gotten into so much debt’. Believe me, had I known better back in those years, I would not have!

(2) It’s all about discipline

You must deny yourselves your wants, until your debts are repaid. It is the responsible thing to do. Taking international trips while in debt means that you aren’t really committed to debt repayment. Such trips are wasteful indulgences that will lead to a cascade of financial belt loosening in the future.

These are good arguments.

In the other camp however are those who support more flexibility in high and long term debt payoff.
Motto: “Pace yourself. Don’t miss the important stuff.”

Pro-Travel (while in debt)

(1) It’s all about balance

If you have deep debt and are facing several years of repayment, 5, 10, 15+ years, these people say that you need to pace yourself. You need to be aggressive about paying off debt, but no so consumed by it that you risk burnout.

If you are no longer quite so young, say over 35 or over 40, you need to look at your projected length of debt repayment and make sure that you don’t let life pass you by while you are in repayment mode. That would be the equivalent of living in debtor’s prison. It is ok to pick one or two important experiences that you want to have in your life and make sure that there is room for them throughout your repayment plan.

About this trip:
This is an organized trip that I had an opportunity to go on about 4 years ago. Because of certain conflicts (long story), I chose not to go. I have seriously regretted that decision ever since. This is a destination I’ve been wanting to visit for the past 8+ years. I always told myself that if I ever had another chance to go, I would jump on it and not let time pass me by. As it turns out, I may be eligible again to do this trip. Of course, it would be saved and paid for in advance with cash. NO ADDED DEBT.

(2) It’s all about priorities

Red Debted Stepchild has written a fun, clever and witty argument for why she shouldn’t take heat for spending money on her #1 want – dining out. In short, she writes that as Americans, we already spend money on wants. Very few things are truly needs. Having our own house/apartment (vs. having roommates) is a want. Having a car, children, pets, are all wants, not needs. Having them are choices. They are not required for us to live our lives.

Some people don’t want those things (or are willing to give them up for a significant period of time) and instead choose to direct their money to other wants. Assuming that the writer is financially responsible overall (actively paying down debt), just because her prioritized wants are different than someone else’s, doesn’t give anyone the right to judge where she allocates every penny of her money. Her burrito analogy is gold.

So What is the Verdict?

I am not entirely decided, although I am leaning towards going on the trip. Getting out of debt is a priority for me, but I can’t let it become my only reason for living. We can always recover lost money, but we can’t recover lost time.

Andrea @SoOverThis faced a somewhat similar dilemma. At the the time she felt shamed by the personal finance blogosphere into reconsidering her decision to take a business trip. Unfortunately, I don’t know what she ultimately decided, but commenters encouraged her to go because she had a responsible plan.

I have several months to think things over before making any decisions. In the meantime, I’m staying focused on making my payments and looking for more ways to lower my living expenses.

What do you think? Which camp are you in?

“Debtor’s prison is real, and opportunity cost is a bitch.” (DDSW)

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