Fiscal Conservatism?

Does anyone else get the sense that the fiscal conservatives have all retreated into hiding? I don’t understand the nuances of all these bailouts, but I do know that the federal government is borrowing a lot of money and giving it to companies in crisis. So far, I have little faith that an injection of cash is all these folks need to right their ships, and the distribution of cash has, as yet, included little in the way of governmental oversight.

How are we going to pay for this? Is throwing money at our problems going to pull us out of this recession?

The other problem I have is that I don’t really understand what we’re getting for our money. I understand President-elect Obama has public works projects planned, and that’s grand. What are we getting for the $350 billion already distributed? I understand that it’s supposed to strengthen our banking system, blah blah; that’s not much to hold onto though. It’s a little abstract for me, and it feels like we’re throwing that money into a pit. And in that pit is an ancient cash eating dragon.

Some Libertarian voices have questioned the constitutionality of November’s bailout, and I guess that’s something. Normally the only thing the Republican Party is good for is keeping the recurrent liberal impulse to throw money at problems in check. I don’t see that tension right now, and I’m concerned.

Major Goal Achieved

As of January 2nd, 2009, I became officially and completely 'bad debt' free.  We still have a mortgage (well, technically two mortgages)...  I've carried a balance of some kind for...  well, my student loans started racking up in the fall of '94.

It looks like I made a math error and I have a $50 credit on my personal line of credit.

First Activity of 2009

For my first notable activity of 2009 (aside from feeding the cat, making coffee, surfing the internet and tidying up from last night's party), I arranged appropriate transfers to pay off the last of my credit card debt.

On Schedule

I'm on schedule to be debt free (minus the mortgage, but even there, our townhouse is worth more than we owe) in four months. Now, Christmas is between me and there, plus I have a few expenses coming up (I NEED some winter motorcycle gloves, and I really should refresh some of my work clothes). I may or may not be able to fit these things into my leftover cash.

On the other hand, I have my annual pay increase coming in November, and a chance for an additional raise after that.

Yay for approaching a big goal!

Financial Dreaming

A few years ago I read “Smart Couples Finish Rich” and did my best to follow its advice. We created a filing system, which has only vaguely been maintained, raised my pre-tax retirement withholding, and set some goals for getting out of debt.

Miraculously, I seem to be in a position to meet my first or second round of goals, and should be debt free later this year. I’ve tried to keep my costs down, but really my success has come from a few specific things: 1) Nora has helped by subsidizing our household bills. I pay less of those, she pays more, so I can pay down my debt quicker and 2) my lifestyle has stayed essentially the same since we returned from our honeymoon while our income has grown.

My mind keeps drifting into the promised land of debt-free life. What will I do then?

1) Increase my pre-tax withholding, probably to 20% (I’m at 15% now)

2) Start paying my full share of the mortgage, if not more.

3) Start putting money into a simple savings account. We really should have a few months of fluid savings in case of calamity.

There are also some fun things I have in mind:

1) Join the next generation of gaming. I did buy an Xbox 360 shortly after launch, but it was for scalping, not for playing. I made a profit of around $150, if I remember correctly. I’m also considering the PS3, but still leaning toward the 360.

2) Go out once during the week. We used to have dinner and/or do something else fun midweek. After we bought the house that dropped off, mostly for financial reasons. I’d like to do that more.

3) Upgrade my computer. My current one does fine, but it’s a hand-me-down. I’m not sure between laptop or desk-top.

4) Buy a digital camera. I completely broke the last one while trying to ‘fix’ a less serious problem.