Credit Utilization

Do you know what your credit utilization percentage is?

Easiest way to explain credit utilization is the balance owed as a percentage of available credit limit on all open cards. For example, total credit limit it $10,000 and you owe $5,000 - your credit utilization is 50%. So, why are we concerned about that percentage? What does it mean?

Your credit utilization percentage is one of the easiest way to increase or decrease your credit score. The higher your utilization, the lower your credit score. The lower your credit utilization, the higher your credit score. The reason for this is the higher your score, the higher the likelihood you will max out your available credit. That means you will use all the available credit. This is not good as far as your credit score is concerned.

To improve your credit score using utilization, you first have to know what your utilization is. Once you know that figure you can then start to pay down each debt. The method of pay down is up to you. In the past I have paid down my credit card with the highest utilization first. Back when I had tons of credit card debt, I had cards with utilization 90% and more. (please never, ever do this) The faster you are able to pay down debt and bring down your utilization, the faster your score will increase. Credit Karma is my website of choice. I monitor my credit on a monthly basis.

In a perfect world, credit utilization wouldn't really matter because the balance would be paid in full each month. However, we are not in a perfect world and life happens. If your credit utilization is above 50%, the goal should be to bring it down to 30% . Once you have achieved that goal then it should be brought down to below 10%.

Please calculate your credit utilization and work on paying down your debt.

Update

Time to bring this blog back to life and keep it going. 

I have a few blog posts I am working on:

1. Improving your credit score

2. Building your savings

3. Buying a home

4. Student loan pay off

Work and Life

I have been in my current job since September 2013. It came with a decent raise which allowed me to boost my savings a bit, take a few vacations and save more for retirement. However, I now know this job is not a good fit for me. I am in the process of trying to find a new job and relocate to a  new state. More on this as the process plays out.

Relocation will cost a pretty penny so I am preparing for it by saving more, and cutting back expenses. I am slowly doing things around my apartment in preparation to rent it out. My to do list will cost a bit, but I am trying to keep those costs down. One thing I need to do is read more on the tax benefits and consequences of renting out your home. 

Resurrection

Time to bring this blog back to life.

I will be updating on a weekly basis to keep myself accountable.

Quick updates:
 My savings account is looking the best it has in years.
Credit cards are still an issue. That is a post I am not ready to write, and haven't been ready to write in years.
School: I am back in school doing an MBA using student loans. No, Sallie Mae is not my servicer...that heifer can stay 10 feet away from me at all times.
Retirement is still coming along nicely. That is one area of my finances where I am consistent and successful.

Taxes

Last Thursday night I finally sat down and finished my taxes using Turbo Tax. This is a chore but one that is necessary or Uncle Sam will coming looking for me. I filed both my federal and state taxes electronically and both were accepted within 24 hours. There is a bigger than expected refund coming my way so I have decided to half on student loan and half to my travel fund.

The federal refund is bigger than expected but it is too small for me to adjust my withholdings. I am afraid if I do that then next year I may end up owing Uncle Sam and that is not a position I want to be in. Each year my goal is to break even with Uncle Sam or come out just ahead.

Money Update......I'm back.....transparency

I suddenly had the urge today to blog about my money. Why? Maybe because this morning it hit me that my retirement is coming along nicely but my everyday finances are still in shits and shambles depending on the day. LOL

Retirement: My retirement funds are coming along very nicely. I contribute to my pension and an IRA with vanguard. Combined there is about $35,000.

Credit card debt: This is a blog post by itself about emotions, cycles, life etc

Regular Savings: I am still saving what little cash I keep on hand in CDs. Why? This works for me. I use 3 month CDs from my credit union.
My other savings account is where I stash my travel dollars. Now you may ask why am I traveling and still have debt to pay off? Well because I can and my travels are not being put on a credit card.

Student loan: SallieMae was finally paid off in 2012 I think. Don't remember exactly. I now have one student loan remaining that has around $6,700 remaining. This will be my focus this year. It would make more sense mathematically if I paid off the credit card. However, I am not interested in the math. I just want the student loan gone forever and ever amen!!!!

Vacation

I am going on vacation.....woohoo. It was paid for with cash. I can't wait to the in the sun, sea and sand of the Dominican Republic.

Retirement

Retirement savings now total a little over 21K. Slow and steady wins the race.

Still running

Ran 1.75 miles this morning. This has been my longest distance ever.

Weight loss.....money....clothes

Yesterday I did more work in organizing my closet. OMG!!!!! I found more tops that are still new with tags on. There are bottoms that don't fit anymore because I gained a bit of weight in the past few years. The tops fit so I'll be wearing those. As for the bottoms, well I need to continue working on running and other exercise so I can lose some weight. I refuse to buy new clothes at my current size.

Still running

Running is cheap, I work up a good sweat and burn lots of calories. Today's training called for a 1.5 mile run. However, my legs are tired. I'm switching it to Monday. My new running sneakers by Saucony are absolutely awesome. Bought a new dri-fit shirt yesterday at Target for less than $20. This brings my dri-fit shirt total to 3. This is enough for now. Once the weather starts to get cold I'll buy more running clothes.

I'm running

woohoo. Last week I started the Jeff Galloway 5K training program. I was so excited to hit the pavement. Running has been a goal of mine for a while. My knees are finally co-operating (long story). The program calls for a one mile run the first two Sundays. My first mile was 15:37 and my second mile was 14:14. You might ask why is she so excited??? Well because I can run.
Stay tuned.

Running sneakers: $117.00

Running shorts: $49.00

Hitting the pavement: Priceless

The year is halfway done. It's time for me to sit down and calculate how much I would have to throw at my student loan each month to pay off by 12/31/2012. I really don't want to carry this student loan into 2013.

My main financial focus is to pay down as many of my bills as I can. The end result is to pull my credit score at the end of the year and see where I stack up. Since buying my condo over two years ago, I have no clue what my credit score is. If I have to guess, I would say it's close to if not above 700. Hope I'm right.

Keeping my eye on my money

My birthday is coming up in less than  two months. The plan is to have a fabulous birthday weekend. This requires me to be diligent with my money so that I'm able to treat myself for my birthday.
The weather has been great lately, so I don't need the heat or AC. This means a lower utility bill. I've also been taking my lunch to work more. This is an off again, on again struggle that I need to be more consistent with. Some days I spend money just based on pure laziness. Too lazy to pack the lunch the night before, too lazy to wake up early in the morning and do it. This is something that I need to change.

Priorities....where my dollars go

I haven't bought non-workout clothes in quite a while. A few weeks ago I was going on vacation with my boyfriend and needed a few things. It was not a pleasant experience. However, I bought some items. After the vacation I took back the ones I didn't wear. I was so happy to get my money back. LOL

Fast forward yesterday and I dropped a few almost two hundred dollars on workout clothes without batting an eye.

Oh how my priorities have changed.

After receiving a substantial enough tax refund I adjusted my withholding. The extra cash NOW is better than getting it next year. My goal for next tax season is to break even.

Finance goals April 1st to June 30th

I've accomplished my first goals for the year before the deadline. This is very exciting for me. Now it's time to set new goals.

1. Bring my student loan balance to below $6,000.

2. Save $500 towards my birthday gift to myself. My birthday is in June.

3. Research and purchase life insurance.

Update on $$

I'm finally over the $20,000 mark in retirement savings. This is split between my vanguard IRA and pension fund.

The emergency fund is at $5,500.

My last student loan has a balance of $8,639. The goal is to pay this off my 12/31/2012.

Blog disclaimer

This is MY blog. I'm not a professional writer. This is a place for me to share what is going on with me financially.

I am not a financial adviser. Please do not take anything here as professional financial advice.

My blog is my financial journal. Nothing fancy.Just me and my money or lack thereof.