Debt Reduction Calculator

I found this nifty (and FREE!) little doo-hicky online the other day and thought I'd pass it along:

http://www.vertex42.com/Calculators/debt-reduction-calculator.html

Actual Screenshot:

It's a debt reduction calculator (spreadsheet available in Excel and Open Office friendly formats) based on the "Debt-Snowball" strategy. So I'm a bit new to the strategy, but basically it involves calculating how much of your income you can put toward bills a month, paying minimums on all revolving debt EXCEPT for the lowest amount, which you devote the "snowball" or minimum plus excess budgeted debt repayment amount every month until it's gone. Then you move to the next lowest debt, and so on.

(I know, I just made that sound hella complex. For a more thorough definition, try here.)

Apparently, lots of financial planners recommend this strategy for a couple of reasons**:

1. Paying off debt a lot more quickly and/or paying less interest overall* depending on how you structure the snowball effect.

2. Psychologically, this strategy is more rewarding than others. Because the payment effort is concentrated on paying off one bill at a time (aside from meeting the other minimums), it's possible to see results sooner (i.e. fewer bills overall). Since success encourages repetition - a sort of Pavlovian response I suppose: the reduction in number of bills becomes the strategies own reinforcing reward.

In any case, I've been informally doing this kind of debt payoff for the last year. Although, I confess it hasn't been really well organized. I tended to throw my snowball at whatever bill just FELT most pressing that paycheck. As a result, my efforts haven't been as efficient as they could have been, although I have substantially reduced my overall debt this year by about 40%. After putting the spreadsheet through it's paces (somebody smarter than me is going to have to check the math on this one) I'm really pleased to have a single place to store, track and set some goal payoff dates, as it gives me some focus.

Also, the spreadsheet gives LOTS of options for how to set up the snowball strategy: highest interest, lowest interest, greatest balance, lowest balance, etc. and a cool dropdown that calculates how much interest and how long it would take to elimiate the debt using each stratgey. I peeped out a few other spreadsheets and this one just worked best for me.

Anyone else using a similar spreadsheet? What do you recommend? Built your own?

What's been your experience with the Debt Snowball Strategy? Success stories? Caveats?









*Infact, if you have good financial discipline (which I am developing), an alternate strategy is to structure the snowball payoff by highest interest rate - thereby reducing



**(Disclaimer: Please be aware I am neither a psychologist or a financial adviser, so anything I say here is purely my own speculation based on research and trial and error. Don't fuck up your finances and blame it on me. Consider yourself warned.)

Savings Setback or Success...you decide:

The beast started clunking during braking a couple of weeks ago. The queen of ignoring potentially expensive car repairs - aka, moi - thought better of her usual tack because this time it involves BRAKES and one NEEDS THOSE TO WORK and took it to her favorite Car Guys in Ballard.

Good news: the thumping was actually just a loose bolt in the Control Arm.
Cost to fix: $0

Bad News: the bolt was probably rattled loose by the warped rotors. Oh and by the way, when was the last time you had a complete brake job?
Cost of complete brake job: $600.00

I could have bought a bicycle for that. A NICE bicycle. Unfortunately then I'd still have a car with bad brakes. Instead, I tapped into the "Uh-oh Fund" which is now depleted but has officially served its purpose. I didn't have to tap into my travel fund or engage any credit.

Now I have even less of an "uh-oh" cushion so the heat will be on to pinch pennies and do my best to avoid any further uh-ohs. In any case, there is no point in worrying - In theory, it doesn't really matter I guess as long as I'm doing the saving. And I am, and it's WORKING!

My verdict: I'm considering it a success because I had an unexpected expense covered without engaging ANY credit - or having to put myself on a Pho diet for the next month.

What cha think?

5 Things...

5 things I was doing 10 years ago:

1. Deciding on a college.
2. Driving the "coolest car ever" (at least at the time) : A 1985 Ford Thunderbird, with the Turbo Charger.
3. Dating my first boyfriend EVER.
4. Exercising hunter/jumpers and dreaming of the day I'd ride on the US Equestrian Team.
5. Picking out my dress for senior ball.
   

5 things on my to do list today:

1. Go to yoga
2. Finish my laundry
3. Pay that annoying traffic ticket
4. Watch the rest of the Weeds Season 2, Disc 3 so it can return to the 'Flix, enabling a new disc will magically appear!
   
5. Clean the bathroom
   

5 snacks I love:

1. I'm with you Mitch, Peanut Butter rocks my world.
   
2. Reese Peanut Butter Cups (Mitch, that's a two for two. Were we separated at birth?)
   
3. Chicharrones. Nasty, I know, but sooo good.
4. Apple slices. (Really, they're like crack to me)
5. Trader Joe's Dark Chocolate Truffle
   

5 things I would do if I were a millionaire:

1. Buy my mom a house
2. Pay for my dad's medical bills
3. Travel around the world for a year
4. Take cello lessons every day
5. Quit "working for a living"
   

5 places I’ve lived:

1. Virginia
2. Portland, OR
   
3. Florida
4. Idaho
5. California
   

5 jobs I’ve had:

1. Shit shoveler (work in barns, shovel some shit)
2. Summer Camp Counselor
3. Riding Instructor
4. Newspaper delivery
5. Telemarketer (for about 10 minutes)
   

5 people I tag:

1. All that you can't leave behind
2. English Major's Money
3. Kill the Goat

And two random people who visit this blog and don't ever make a peep! You know who you are!

Electric Mini Pilot Program Announced

Be still my beating heart, for true love hath arrived:

Pilot Project with 500 All-Electric Minis in Three US States :

2008-10-20 - BMW plans to test a fleet oft some 500 all-electric Mini models
that will be made available to select private and corporate customers as part of
a pilot project in the US states of California, New York and New Jersey. The
Mini E will give its world premiere at the Los Angeles Auto Show on November 19
and 20, 2008. It will be powered by a 150 kW electric motor fed by a
high-performance rechargeable lithium-ion battery, transferring its power to the
front wheels via a single-stage helical gearbox. More...

For you, dear sweet my love, I have but one tender question:

When can I get one? When can I get one?When can I get one? When can I get one?When can I get one? When can I get one?When can I get one? When can I get one?When can I get one? When can I get one?When can I get one? When can I get one?When can I get one? When can I get one?

"Joe the Plumber" is a real guy...

And Jon Stewart - as per usual - makes the funny out of it:






(Strange Bird: I think we're still right on about there being something wrong with a guy like this getting picked as the American 'norm'), IMHO)

Will the real Joe Six Pack please stand up?

No doubt you've been hearing all about the quintessential American "Joe Six-Pack."

Frankly, I'm wondering just who the hell is this guy and why the hell is he suddenly the prime character in this election. While watching the last debate tonight, with both candidates addressing "Joe," it took me a minute to realize exactly whom they were referring to.

Furthermore, the average - everyday "Joe Six Pack" is the same dude candidates have been pandering to for the last, oh say 200 years. The single issue, god-fearin' hard working male that has been making the decision for EVERYBODY else for HUWAY too long.

And, what the heck do REAL hard working American men think about being reduced to the guy in the photo above?



Cause frankly I'm exhausted by the labels and oversimplifications.

What a long strange trip it has been...

About a month ago, someone very close to me died.

I'm not going to euphemism it or get maudlin: He died and his dying changed my life. For the last seven years he was a confidant and partner in crime. And now he's gone. He's not someone you would know about because I never posted about him here: Although he liked reading my zany two cents on everything wasn't a wasn't a big fan of being part of it, and out of respect I never mentioned him.

I think he would forgive me today, because all of this is just by way of explaining - why I've been gone and where I've been. For the last month or so I've just been - getting by. He wouldn't have been pleased. He would have wanted the road trips and beach adventures, and park days to go on. I know all this, but without him, just wasn't doable.

The last time we spoke, there were three promised I made to my friend:

1. Quit being so hard on myself.
2. Travel, Travel, Travel - see EVERYTHING... and
3. Keep writing. Finish the book, write about the travels, keep blogging, whatever...just don't stop telling stories.

So here I am, keeping my promise.

Last weekend I hiked Mt. Si for the first time. It was the hike we always meant to do together when I moved to Seattle but never seemed to be meet up up early enough to avoid the "uphill version of Greenlake" sensation lots of people attribute to the popular trail.

The trail was 4 miles one way, almost entirely uphill. I couldn't help laughing to myself as I rounded the corner of yet another steep switchback headed what felt vertical. THIS is the real reason we never "did the Si." Too damn steep. But when I got to the base of Haystack (aka the novice hiker's summit) the view was breathtaking. From the Olympics, to Rainer and the faintest hint of what may have been Mt. Adams I had that top of the world feeling that reminded me our best moments in being together.

Adios, mi amigo - via con "huevos."*






* Correct phrase is actually "via con dios" - go with god. The "huevos" is a long story that became a bit of an inside joke. Please expect to be looked at like a retard if you actually use the expression "via con huevos" with any spanish speaking individual.

That is all.