17 days into the month, I am happy to report I paid off my smallest credit card! I had expected this to take until at least mid-March, so I was a bit excited. I was able to cut the additional $67 necessary in just the first 1/2 of February!
Actually, I shaved that much - plus a few dollars more. Those few dollars were immediately sent to the other credit card company, and now I am moving towards the next marker.
Area: Finances
Marker #3: Pay off credit card #2
Now, with the amount I originally had in the spending plan for credit cards, this would take 9 months - meaning it wouldn't be paid off until November. If I can sustain the amount that I ended up paying in February, I could have it paid in 5.5 months - meaning mid-July. However, I know of at least one utility bill I still need to make adjustments to. If that change saves what I am expecting it to, it would mean paying it off in 4.5 months. That puts us at mid-June - still too late to start back to school this summer.
So, my goal is to find the money in the spending plan to pay this off even earlier. Let's see how it goes.
Showing posts with label balancing our blessings. Show all posts
Showing posts with label balancing our blessings. Show all posts
18 February 2012
06 February 2012
Want vs. Need
Some people have a really hard time with this one - myself included. When one has 'extra' money, it can become even more difficult to avoid mixing the two. Here's my 'in the moment' example:
I've been slowly remodeling my house. Most recently, I started the project of the large living area. Now, I have a set amount going into the project account every month, but the balance is currently fairly low.
A big test popped up over the weekend. I opened my newspaper to grab the coupon inserts and circulars. I don't always look at all the circulars - I mean, why look at Office Depot if I need no supplies, right? Well, I glanced through and saw the Conn's circular. On the front page was a 43" flat screen TV - exactly the size I've been watching for for this room. I've been watching the prices for the past few months, and this is a good deal. It's an anniversary special, so the price is only good this week. I wanted to run out and grab it! Of course, I'm on driving restrictions, so it gave me time to think about it.
It is the right TV and the right price. However, I don't have enough in my remodeling account to cover it. I'm close...really close, and could probably squeeze the extra amount needed out of this month's budget...if it were a NEED.
Now, I'll admit I might lean a little more towards grabbing this new TV if my old one wasn't working, or if it was the last thing needed to complete the project. However, I currently have a working TV in this room and there's still a fair amount of work to be done on the project. I might also lean more towards grabbing this IF my credit cards were paid off, but they're not.
So, as much as I hate passing up the $200+ savings, I will - with the hopes one will again go on sale for this amount when I am ready to make the purchase. Now that I know one can be found for this amount, I will be much less likely to pay more for one when the time comes - I hope.
I've been slowly remodeling my house. Most recently, I started the project of the large living area. Now, I have a set amount going into the project account every month, but the balance is currently fairly low.
A big test popped up over the weekend. I opened my newspaper to grab the coupon inserts and circulars. I don't always look at all the circulars - I mean, why look at Office Depot if I need no supplies, right? Well, I glanced through and saw the Conn's circular. On the front page was a 43" flat screen TV - exactly the size I've been watching for for this room. I've been watching the prices for the past few months, and this is a good deal. It's an anniversary special, so the price is only good this week. I wanted to run out and grab it! Of course, I'm on driving restrictions, so it gave me time to think about it.
It is the right TV and the right price. However, I don't have enough in my remodeling account to cover it. I'm close...really close, and could probably squeeze the extra amount needed out of this month's budget...if it were a NEED.
Now, I'll admit I might lean a little more towards grabbing this new TV if my old one wasn't working, or if it was the last thing needed to complete the project. However, I currently have a working TV in this room and there's still a fair amount of work to be done on the project. I might also lean more towards grabbing this IF my credit cards were paid off, but they're not.
So, as much as I hate passing up the $200+ savings, I will - with the hopes one will again go on sale for this amount when I am ready to make the purchase. Now that I know one can be found for this amount, I will be much less likely to pay more for one when the time comes - I hope.
05 February 2012
Day 5 - Focus on Finances - Marker #1 DONE! Marker #2 set
Out of the areas I'll be focusing on, finances will likely be the easiest area to mark progress in. My current goal in this area is to be debt free except for my mortgage...again! I did this a few years ago, but now have small amounts on my credit cards and, of course, now a good amount of medical bills. I'm still praying about this, but I believe my 'return to school' marker in this area will be for my credit cards to be paid off. That is a bit hard for me to swallow as I really 'want' to return to school for the summer semester. Want...not need.
My Unexpected Emergency Fund had already been funded with an amount equal to one yearly medical deductible. Though my recent hospital stay was unexpected, I did not have to pay anything up front, so those bills will be worked into my monthly spending plan as they come in.
With that already taken care of, my attention turned to my February Spending Plan. I decided that would be my first financial marker for my new focus.
Area: Finances
Marker #1: Balanced spending plan for February - to include minimum payments to all verified medical bills and credit cards, as well as amounts designated for incidentals accounts - car maintenance, vet expenses, clothing needs, doctor visits, etc.
After a good amount of time and thought, it has been finalized. All areas that I could think of have been at least noted on the plan - including the unexpected additional doctor appointments. Minimum payments have been scheduled for all verified medical bills, as well as one of my two credit cards, and an extra amount has been allocated to my other credit card - the one with the lowest balance. That leads to my second marker:
Area: Finances
Marker #2: Pay off credit card #1
Thankfully, this credit card has a pretty low balance. Reviewing the account today, I realized I only need to squeeze an additional $67 out of February's spending plan to meet this marker by the end of the month.
My Unexpected Emergency Fund had already been funded with an amount equal to one yearly medical deductible. Though my recent hospital stay was unexpected, I did not have to pay anything up front, so those bills will be worked into my monthly spending plan as they come in.
With that already taken care of, my attention turned to my February Spending Plan. I decided that would be my first financial marker for my new focus.
Area: Finances
Marker #1: Balanced spending plan for February - to include minimum payments to all verified medical bills and credit cards, as well as amounts designated for incidentals accounts - car maintenance, vet expenses, clothing needs, doctor visits, etc.
After a good amount of time and thought, it has been finalized. All areas that I could think of have been at least noted on the plan - including the unexpected additional doctor appointments. Minimum payments have been scheduled for all verified medical bills, as well as one of my two credit cards, and an extra amount has been allocated to my other credit card - the one with the lowest balance. That leads to my second marker:
Area: Finances
Marker #2: Pay off credit card #1
Thankfully, this credit card has a pretty low balance. Reviewing the account today, I realized I only need to squeeze an additional $67 out of February's spending plan to meet this marker by the end of the month.
22 January 2012
Maybe it can be done...
Early during last pay period, I unexpectedly decided to pick up a second class this semester. Since I emptied my Incidentals account in my Emergency Savings account at the end of the year, I had to absorb those fees into my regular budget or take money out of savings. I refused to do the latter, as it wasn't what I defined as an emergency. So, I decided to pay a bit more attention on my spending.
Last week, I had a 'day of finances.' I reviewed about 1/2 of my spending lines for unnecessary spending. Since I do this about once a year, I wasn't expecting much. However, one item was cut in half. Not a huge savings - just under $9 a month, but why pay that $9 to someone else when I can do much more with it?
Yesterday was pay day. That meant it was time to review what was spent during the last pay period, shift money as needed and finalize this pay period's spending plan. I knew I had been fairly careful, but I surprised even myself!
Not only was I able to absorb the class expenses, but I was also able to put the allotted amounts into my Incidentals account AND pay almost $100 extra towards my credit card pay off!
Yep, I was excited! I might actually be able to cut that 5.5 years (expected length of time to save for and finish remodeling this house) way down!
Today, in between reading 33 pages for one of my classes, I'll be working on reviewing the other 1/2 of my expenses. Wonder what I'll find there...
Last week, I had a 'day of finances.' I reviewed about 1/2 of my spending lines for unnecessary spending. Since I do this about once a year, I wasn't expecting much. However, one item was cut in half. Not a huge savings - just under $9 a month, but why pay that $9 to someone else when I can do much more with it?
Yesterday was pay day. That meant it was time to review what was spent during the last pay period, shift money as needed and finalize this pay period's spending plan. I knew I had been fairly careful, but I surprised even myself!
Not only was I able to absorb the class expenses, but I was also able to put the allotted amounts into my Incidentals account AND pay almost $100 extra towards my credit card pay off!
Yep, I was excited! I might actually be able to cut that 5.5 years (expected length of time to save for and finish remodeling this house) way down!
Today, in between reading 33 pages for one of my classes, I'll be working on reviewing the other 1/2 of my expenses. Wonder what I'll find there...
16 January 2012
A day of finances - medical bills
Okay, one last thing to look at for the day. Then I'm calling it quits and going for a walk!
Medical bills!
They come fast after a procedure and they expect you to pay just as fast. However, I have found many mistakes on these in the past and refuse to pay until I've had adequate time to review and verify the charges. That is usually not fast enough for some office and they then threaten to turn the bill over to collections. I say, "go for it!" Work with me and you will get paid faster. Threaten me or get testy and rude and you will get put at the bottom of the list.
Currently, I have just over $2,300 in reviewed and approved medical bills to work into the spending plan. However, there are many more still needing my review. I must admit, I haven't been very active in that area lately. Just trying to get a handle on some other things, I guess.
Before it hit that amount, I had designated "x" amount of my spending plan to go towards paying these. Each one gets a minimum payment monthly, with the lowest balance getting a little bit extra to get it paid off faster. The intent - once the smallest is paid for, that amount then gets applied to the next smallest. You've heard of the snowball approach before, I'm sure.
I use the same approach with credit cards, but out of a separate 'money bucket.' Once those are paid off, that amount will shift down to the medical bills.
How long will it take to pay this off, I've yet to sit down and calculate that. However, I expect the amount due to grow as I finish reviewing the bills from my son's recent surgery. I need to shift more money over to these areas, but that will have to wait for me to finish my review.
Medical bills!
They come fast after a procedure and they expect you to pay just as fast. However, I have found many mistakes on these in the past and refuse to pay until I've had adequate time to review and verify the charges. That is usually not fast enough for some office and they then threaten to turn the bill over to collections. I say, "go for it!" Work with me and you will get paid faster. Threaten me or get testy and rude and you will get put at the bottom of the list.
Currently, I have just over $2,300 in reviewed and approved medical bills to work into the spending plan. However, there are many more still needing my review. I must admit, I haven't been very active in that area lately. Just trying to get a handle on some other things, I guess.
Before it hit that amount, I had designated "x" amount of my spending plan to go towards paying these. Each one gets a minimum payment monthly, with the lowest balance getting a little bit extra to get it paid off faster. The intent - once the smallest is paid for, that amount then gets applied to the next smallest. You've heard of the snowball approach before, I'm sure.
I use the same approach with credit cards, but out of a separate 'money bucket.' Once those are paid off, that amount will shift down to the medical bills.
How long will it take to pay this off, I've yet to sit down and calculate that. However, I expect the amount due to grow as I finish reviewing the bills from my son's recent surgery. I need to shift more money over to these areas, but that will have to wait for me to finish my review.
A day of finances - Netflix
We were with Blockbuster until they closed all of their stores around us. Then we switched over to Netflix. Not too long ago, Netflix changed their plans. I didn't actively change anything, so I got shifted to the 'Unlimited Streaming and 1 DVD out at a time' plan. It is an auto-draft from my account, so I decided to take a look at it today.
My son and I both use the streaming, so that stays. However, the 1 DVD - well, I've had the same DVD sitting here to watch for a month now. That means I paid $7.99 to watch just this one movie (that I have yet to watch). That doesn't make me happy! So, I'm changing the plan to 'Unlimited Streaming' only. That will cut my monthly bill in half.
Now, there are many movies I'd like to see that are DVD only. Guess I'll have to find an alternative source to borrow these from or gather them and then get the DVD subscription for a month and knock them out. With me starting 2 classes tomorrow, that won't be any time soon.
Oh, and perfect timing! New billing cycle starts in 2 days!
It may only be a savings of $8.65 (incl. tax) per month, but that adds up to $103.80 for the year. That is just a few dollars short of covering 1 class at the community college!
My son and I both use the streaming, so that stays. However, the 1 DVD - well, I've had the same DVD sitting here to watch for a month now. That means I paid $7.99 to watch just this one movie (that I have yet to watch). That doesn't make me happy! So, I'm changing the plan to 'Unlimited Streaming' only. That will cut my monthly bill in half.
Now, there are many movies I'd like to see that are DVD only. Guess I'll have to find an alternative source to borrow these from or gather them and then get the DVD subscription for a month and knock them out. With me starting 2 classes tomorrow, that won't be any time soon.
Oh, and perfect timing! New billing cycle starts in 2 days!
It may only be a savings of $8.65 (incl. tax) per month, but that adds up to $103.80 for the year. That is just a few dollars short of covering 1 class at the community college!
A day of finances - cell phone and a good reason to stay organized
The next bill due this pay period is my cell phone. I know this, though I can't lay my hands on the current bill. I moved my desk a few months ago to prepare for the living room remodeling and things haven't been organized since!
So, I had this bright idea to go online. I click on 'set up an account.' It tells me I already have an account set up. Really? Hmm, guess it was set up when I got the phone/service last year. I've never accessed my account online. Next, I click 'account name reminder.' It asks if I want it to my phone or email. I chose 'phone' and enter my phone number - assuming it would text it to me. Ha! The screen then tells me it has been sent to my account email. This would be the email account that was set up when I got this phone/service because it required a gmail account (and mine is a yahoo account). That would be fine and wonderful...IF I ever used that account, therefore remembering that password!
Then it dawns on me...they linked my gmail account in my phone. Okay, grab the phone and touch the little gmail button. Ah...look...email. All OLD. WAIT. Oh, a screen pops up telling me it isn't set to 'sync' and 'update' automatically. What? It did before this latest not-so-great update they pushed out recently. Do I want to 'sync' or 'update?' I just want access to the stupid email that was just sent.
Success! Email received. Username is ........ Yep, that was set up by the service tech, not me. Okay, back to the website. Enter the username. Let's try a default password. Waiting...
Yes! Almost there! Of course, there has to be a pop up screen first. Do I want to go paperless? Well, at this point, that would be wonderful...IF you will send it to the email of MY choice. Let's see....
Oh, wow! Sprint will begin charging $1.99 a month for a detailed paper statement! That's okay - I only received a summary bill anyway. I already know who I call.
Yeah! I can have it sent to my yahoo account. Okay, I'll sign up. That done, can I please now see my current status?
Okay, there! Bill paid! While I was there, I grabbed the information and entered it on my Emergency Information Worksheet. Then, I shot off an email to customer service regarding the inquiries I had about my account information (verifying employer discount is intact and getting contract end date) and about the phone service issues I've been having. We shall see what comes of that, but for now, this service is now all caught up - nice and neat.
So, I had this bright idea to go online. I click on 'set up an account.' It tells me I already have an account set up. Really? Hmm, guess it was set up when I got the phone/service last year. I've never accessed my account online. Next, I click 'account name reminder.' It asks if I want it to my phone or email. I chose 'phone' and enter my phone number - assuming it would text it to me. Ha! The screen then tells me it has been sent to my account email. This would be the email account that was set up when I got this phone/service because it required a gmail account (and mine is a yahoo account). That would be fine and wonderful...IF I ever used that account, therefore remembering that password!
Then it dawns on me...they linked my gmail account in my phone. Okay, grab the phone and touch the little gmail button. Ah...look...email. All OLD. WAIT. Oh, a screen pops up telling me it isn't set to 'sync' and 'update' automatically. What? It did before this latest not-so-great update they pushed out recently. Do I want to 'sync' or 'update?' I just want access to the stupid email that was just sent.
Success! Email received. Username is ........ Yep, that was set up by the service tech, not me. Okay, back to the website. Enter the username. Let's try a default password. Waiting...
Yes! Almost there! Of course, there has to be a pop up screen first. Do I want to go paperless? Well, at this point, that would be wonderful...IF you will send it to the email of MY choice. Let's see....
Oh, wow! Sprint will begin charging $1.99 a month for a detailed paper statement! That's okay - I only received a summary bill anyway. I already know who I call.
Yeah! I can have it sent to my yahoo account. Okay, I'll sign up. That done, can I please now see my current status?
Okay, there! Bill paid! While I was there, I grabbed the information and entered it on my Emergency Information Worksheet. Then, I shot off an email to customer service regarding the inquiries I had about my account information (verifying employer discount is intact and getting contract end date) and about the phone service issues I've been having. We shall see what comes of that, but for now, this service is now all caught up - nice and neat.
A day of finances - electric
Next up on the review/pay is the electric bill. My payment is on time, but I wanted to check out a few things anyway. Here's what I found:
-late charge is 5% (this has been noted on my spending plan worksheet)
-my current contract expires late March (this has been listed on my March To Do list)
-company does offer a budget billing plan
Now, I was on the budget billing plan with my previous provider for years and it was very beneficial. When I saw the new one was offering this now, I must admit I thought about signing up. This would even out my billing, BUT I am in the lower billing season since I'm not using my a/c. For now, I think I will keep my budgeted amount where it is (which is remarkably close to what the budget billing amount would be), and push any 'left over' cash to paying off the credit cards.
Account is current, late fees and renewal time have been noted accordingly, and access information for website is entered on my Emergency Information Worksheet.
The only thing left to do to lower this bill is to reduce the usage, but that's a different post!
-late charge is 5% (this has been noted on my spending plan worksheet)
-my current contract expires late March (this has been listed on my March To Do list)
-company does offer a budget billing plan
Now, I was on the budget billing plan with my previous provider for years and it was very beneficial. When I saw the new one was offering this now, I must admit I thought about signing up. This would even out my billing, BUT I am in the lower billing season since I'm not using my a/c. For now, I think I will keep my budgeted amount where it is (which is remarkably close to what the budget billing amount would be), and push any 'left over' cash to paying off the credit cards.
Account is current, late fees and renewal time have been noted accordingly, and access information for website is entered on my Emergency Information Worksheet.
The only thing left to do to lower this bill is to reduce the usage, but that's a different post!
A day of finances - my mortgage
Since today is a company holiday, I decided to use it to jump start my quest to cut the 5.5 years down...WAY down, to a hopeful 2 years!
1st up - verify bank accounts (which led to the previous post)
2nd - pay the remaining bills due this pay period
The mortgage was first on that list. Unfortunately, I put it off too long. I had the money in the account, but just didn't get around to mailing the payment before the grace period was up. That means I am adding a late fee of $26.80 to the payment.
Completely my fault, completely avoidable. So, I have to spend less in another area of my spending plan this month or put $26.80 less towards the remodeling project. Given my goal, I'm voting for the first option.
While in the area of mortgage, I decided it was worth a few minutes to make sure everything else was neat and tidy with this creditor. Apparently, their records show I've been late 1 other time at some point over the last 6 months, so a phone call to the company is next on my list.
................................
Okay, after a call to verify, I agree. They show my December payment was late and my bank records agree. Family came in town and I got side-tracked. So, another check has been written to take care of that - all caught up!
While on the call, I also verified my new payment amount (effective beginning March) and was excited to find it will only increase $6.77 a month!
Last item to resolve while on the call...access to their website. With the remodeling going on, I've misplaced the little card they sent to use for log in. A new one will be mailed tomorrow. Once received, the information will be added to my Emergency Information Worksheet.
My homeowner's insurance and property taxes are included with my monthly payment. Both have been reviewed and verified to be reasonable. The only way to keep this cost low(er) is to avoid that pesky late fee.
Now, my largest monthly bill is all nice and neat.
1st up - verify bank accounts (which led to the previous post)
2nd - pay the remaining bills due this pay period
The mortgage was first on that list. Unfortunately, I put it off too long. I had the money in the account, but just didn't get around to mailing the payment before the grace period was up. That means I am adding a late fee of $26.80 to the payment.
Completely my fault, completely avoidable. So, I have to spend less in another area of my spending plan this month or put $26.80 less towards the remodeling project. Given my goal, I'm voting for the first option.
While in the area of mortgage, I decided it was worth a few minutes to make sure everything else was neat and tidy with this creditor. Apparently, their records show I've been late 1 other time at some point over the last 6 months, so a phone call to the company is next on my list.
................................
Okay, after a call to verify, I agree. They show my December payment was late and my bank records agree. Family came in town and I got side-tracked. So, another check has been written to take care of that - all caught up!
While on the call, I also verified my new payment amount (effective beginning March) and was excited to find it will only increase $6.77 a month!
Last item to resolve while on the call...access to their website. With the remodeling going on, I've misplaced the little card they sent to use for log in. A new one will be mailed tomorrow. Once received, the information will be added to my Emergency Information Worksheet.
My homeowner's insurance and property taxes are included with my monthly payment. Both have been reviewed and verified to be reasonable. The only way to keep this cost low(er) is to avoid that pesky late fee.
Now, my largest monthly bill is all nice and neat.
Savings Accounts
When setting up a savings account, there are many more options available today than in years past. Many brick building banks are now charging for withdrawals or requiring a minimum balance to be kept to avoid periodic service fees. Also, interest rates are minimal (.01% at my bank as of today). While it may be okay to keep a small amount of 'emergency funds' in such an account, there are other options.
Several years ago, I realized I could get a better rate with an online bank. Opening deposit was minimal - $1 at that time, and there were no fees. I wasn't sure how it all worked, but for $1 it was worth looking into.
While I have since switched from that first online bank (found a better interest rate), I have continued keeping the majority of my savings online. Right now, I have 3 accounts at one bank.
Emergency Savings (for unexpected car repairs, medical deductibles, etc.)
Remodeling Account (this is a money market account with a debit card, but earns the same rate as the savings account)
Incidentals Account (this holds the accruing monies for expected expenses such as tires, vet visits, clothing, eye glasses, etc.)
The down side of the online banking is the transfer time - usually 2 days. However, at any time, I can transfer the funds needed to my money market account and have immediate access with my debit card.
Interest rate on these accounts - 0.84% as of today! Much better than the brick building banks!
Remember, the monies going into these accounts are for short term issues - not long term investments.
Several years ago, I realized I could get a better rate with an online bank. Opening deposit was minimal - $1 at that time, and there were no fees. I wasn't sure how it all worked, but for $1 it was worth looking into.
While I have since switched from that first online bank (found a better interest rate), I have continued keeping the majority of my savings online. Right now, I have 3 accounts at one bank.
Emergency Savings (for unexpected car repairs, medical deductibles, etc.)
Remodeling Account (this is a money market account with a debit card, but earns the same rate as the savings account)
Incidentals Account (this holds the accruing monies for expected expenses such as tires, vet visits, clothing, eye glasses, etc.)
The down side of the online banking is the transfer time - usually 2 days. However, at any time, I can transfer the funds needed to my money market account and have immediate access with my debit card.
Interest rate on these accounts - 0.84% as of today! Much better than the brick building banks!
Remember, the monies going into these accounts are for short term issues - not long term investments.
18 November 2011
Balancing Our Blessings - Plugging the Purse Holes
From 25 Oct 2011
Plugging the Purse Holes
I know I saw a devotion on this some time ago. I'll have to go track it down and post it.
Do you have money left over at the end of the pay period (after you remember to pay all of your bills)? If so, yea you! If not, do you know where your money is going? Is it going where you want it to?
In December of 2009, I was completely debt free (except for my mortgage)! I had paid off 2 credit cards, 2 car loans and a few miscellaneous things and had a decent emergency fund. From there, I started socking away money into my home remodeling account. IT CAN BE DONE! 2010 saw me debt free as well. Then I enrolled my son in a private academy. 2011 came along and my purse began leaking again. Somehow, my credit cards starting being used again. They aren't maxed, but definitely need paid off...AGAIN! I have emptied my home remodeling account with the purchase of materials to finish everything but the laundry room, bathrooms and kitchen and certain recent events had me tap into my emergency savings. I DO, however, still have my incidentals account (I put money into this regularly for car maintenance, vet trips, gifts, holidays, yearly eye glasses and the like).
Of course, there was then the discovery of a wheat sensitivity - leading to a new way of eating - and the unexpected surgery, with all the bills that come along with it. My son is still in the private academy and will soon have his license - thus increasing vehicle insurance premiums.
The remainder of the emergency savings and the incidental account being fully funded for the next 2 months of incidentals is an absolute saving grace. However, I need to find and plug those darned holes!
Do you have money left over at the end of the pay period (after you remember to pay all of your bills)? If so, yea you! If not, do you know where your money is going? Is it going where you want it to?
In December of 2009, I was completely debt free (except for my mortgage)! I had paid off 2 credit cards, 2 car loans and a few miscellaneous things and had a decent emergency fund. From there, I started socking away money into my home remodeling account. IT CAN BE DONE! 2010 saw me debt free as well. Then I enrolled my son in a private academy. 2011 came along and my purse began leaking again. Somehow, my credit cards starting being used again. They aren't maxed, but definitely need paid off...AGAIN! I have emptied my home remodeling account with the purchase of materials to finish everything but the laundry room, bathrooms and kitchen and certain recent events had me tap into my emergency savings. I DO, however, still have my incidentals account (I put money into this regularly for car maintenance, vet trips, gifts, holidays, yearly eye glasses and the like).
Of course, there was then the discovery of a wheat sensitivity - leading to a new way of eating - and the unexpected surgery, with all the bills that come along with it. My son is still in the private academy and will soon have his license - thus increasing vehicle insurance premiums.
The remainder of the emergency savings and the incidental account being fully funded for the next 2 months of incidentals is an absolute saving grace. However, I need to find and plug those darned holes!
Balancing Our Blessings - How to get to the point of funding the emergency savings goal
If you've done the foot work, you now have a goal in mind. Then you likely looked back at that spending plan you had developed and shook your head! It is already tight. Perhaps you are still trying to just bring the essentials current. That's OKAY! Every journey starts somewhere - including the one towards saving!
My thoughts:
Looking over my spending plan, I realized I had every penny accounted for and marked to go somewhere, yet there was no amount going into the emergency savings and no amount left over to start back up on paying off those medical bills. Then, I reminded myself that saving sometimes starts really small. I can clearly remember having an extremely tight (and much smaller) spending plan while raising my kids as a single parent. My 'emergency savings' then could be held in a jar in the kitchen cabinet! If that's where you and your family need to start, START! Pay cash for your groceries and toss the change into a jar. It WILL start to add up! The more mindful we become in more areas, the more we can shift our money to where we need it to go.
Now, as far as my savings...I wanted to find 1% of my income to redirect to my emergency savings account. It took some hard thinking, but I found it. If I give up and keep it at that rate, it will take a really long time to reach my goal, so I am going back to the drawing board! I will be taking a hard look at many things - especially since I still need to pull in paying off those pesky medical bills. Let's do this!
My thoughts:
Looking over my spending plan, I realized I had every penny accounted for and marked to go somewhere, yet there was no amount going into the emergency savings and no amount left over to start back up on paying off those medical bills. Then, I reminded myself that saving sometimes starts really small. I can clearly remember having an extremely tight (and much smaller) spending plan while raising my kids as a single parent. My 'emergency savings' then could be held in a jar in the kitchen cabinet! If that's where you and your family need to start, START! Pay cash for your groceries and toss the change into a jar. It WILL start to add up! The more mindful we become in more areas, the more we can shift our money to where we need it to go.
Now, as far as my savings...I wanted to find 1% of my income to redirect to my emergency savings account. It took some hard thinking, but I found it. If I give up and keep it at that rate, it will take a really long time to reach my goal, so I am going back to the drawing board! I will be taking a hard look at many things - especially since I still need to pull in paying off those pesky medical bills. Let's do this!
Balancing Our Blessings - Emergency Savings!
Everyone knows they need to have an emergency savings tucked away somewhere, but most of us never seem to get around to it. If you have followed along with the first five set up steps of "Balancing Our Blessings", you are ready for this next step. Even if you are still behind on the essentials, you can do the leg work for this step. This is where the fun begins!
Everyone has heard of Murphy's Law, right? "He" comes knocking at your front door to tell you there is a tree downed in your back yard that took out the neighbor's cable, internet and phone..AND is sitting on the power line to both your houses..AFTER you've just wiped out your home remodeling account. You know it has to be taken care of, but to hire someone in to do this will cost WAY more than what you have access to. Of course, the scenario could be an A/C unit blowing in the midst of an extremely hot Texas summer. The outcome is the same - not enough funds to cover unexpected emergencies. So, how does one thwart Mr. Murphy? By outsmarting him and having an emergency savings account to kick his butt to the curb! I know some 'financial advisors' will give you a specific sum to fund this account with, but I don't live in a cookie cutter box. How about you? Here's my theory:
This is a personal decision. It will be a different amount for every person.
Here's what my thought process was like when deciding my 'comfort amount' for my emergency savings goal. I am a single parent - thus only one income. My son - ever so healthy - ended up having surgery this past summer. So, we start with the yearly deductible for my health insurance. Now, I had 3 surgeries within 3 years a while back, but according to my doctors I am healthy (outside of being crazy). I figure the chances of both of us having a surgery in the same year are slim. Add in 1/2 of a second yearly health deductible, just in case. Next - my car is paid off, but has enough miles on it to warrant some unexpected repairs in the near future (such as a transmission). Thankfully, I know someone that could get one and put it in if needed, so add in the estimated amount for that sucker. I have an old house, but I currently have a home warranty program that allows me to call out a service tech if needed, so I'm not adding anything for that (for now). Anything else? I am comfortable with the security of my job, so I think that is about it.
That's how I came up with my emergency savings goal.
Everyone has heard of Murphy's Law, right? "He" comes knocking at your front door to tell you there is a tree downed in your back yard that took out the neighbor's cable, internet and phone..AND is sitting on the power line to both your houses..AFTER you've just wiped out your home remodeling account. You know it has to be taken care of, but to hire someone in to do this will cost WAY more than what you have access to. Of course, the scenario could be an A/C unit blowing in the midst of an extremely hot Texas summer. The outcome is the same - not enough funds to cover unexpected emergencies. So, how does one thwart Mr. Murphy? By outsmarting him and having an emergency savings account to kick his butt to the curb! I know some 'financial advisors' will give you a specific sum to fund this account with, but I don't live in a cookie cutter box. How about you? Here's my theory:
This is a personal decision. It will be a different amount for every person.
Here's what my thought process was like when deciding my 'comfort amount' for my emergency savings goal. I am a single parent - thus only one income. My son - ever so healthy - ended up having surgery this past summer. So, we start with the yearly deductible for my health insurance. Now, I had 3 surgeries within 3 years a while back, but according to my doctors I am healthy (outside of being crazy). I figure the chances of both of us having a surgery in the same year are slim. Add in 1/2 of a second yearly health deductible, just in case. Next - my car is paid off, but has enough miles on it to warrant some unexpected repairs in the near future (such as a transmission). Thankfully, I know someone that could get one and put it in if needed, so add in the estimated amount for that sucker. I have an old house, but I currently have a home warranty program that allows me to call out a service tech if needed, so I'm not adding anything for that (for now). Anything else? I am comfortable with the security of my job, so I think that is about it.
That's how I came up with my emergency savings goal.
Balancing Our Blessings - Step #5
And the final (for now) step...
Balancing Our Blessings - CCC #5 - Setting Up Your Monthly Spending Plan
Step #5 – Setting Up Your Monthly Spending Plan
So…you know where you are, you know what you owe and you know what you have available, right?! Here’s the next step. This is where you will really start seeing some things come together and where there is work to be done.
Your Monthly Spending Plan is where you will “spend” all of your money on paper. You will allocate amounts to where they need to be or where you want them to go. Trust me…money will go regardless of where you would “like” it to go if you don’t set up a plan! So…get your tools back out!
At the top of the page, enter the amount of monthly income your household receives. If this varies due to you being hourly or on a commission plan, use the low average amount of income. This is how much money you have to allocate.
Next, down the left hand column, list all of your expenses – your monthly bills, gas, groceries, etc. Don’t forget to have a listing for savings! This can be general savings at this point unless you are ahead of the game and want to get more specific – emergency savings, long term, vacation, etc. Be sure to include items like car maintenance, medical expenses and such as well. Remember, it doesn’t have to be perfect at this point as you will be tweaking it! It does have to balance, though!!
To the right of each item/category, place the allocated amount of income needed. If you are unsure, use the average of the last few months. At the end of this exercise, you should come up with ZERO unallocated income!
So…you know where you are, you know what you owe and you know what you have available, right?! Here’s the next step. This is where you will really start seeing some things come together and where there is work to be done.
Your Monthly Spending Plan is where you will “spend” all of your money on paper. You will allocate amounts to where they need to be or where you want them to go. Trust me…money will go regardless of where you would “like” it to go if you don’t set up a plan! So…get your tools back out!
At the top of the page, enter the amount of monthly income your household receives. If this varies due to you being hourly or on a commission plan, use the low average amount of income. This is how much money you have to allocate.
Next, down the left hand column, list all of your expenses – your monthly bills, gas, groceries, etc. Don’t forget to have a listing for savings! This can be general savings at this point unless you are ahead of the game and want to get more specific – emergency savings, long term, vacation, etc. Be sure to include items like car maintenance, medical expenses and such as well. Remember, it doesn’t have to be perfect at this point as you will be tweaking it! It does have to balance, though!!
To the right of each item/category, place the allocated amount of income needed. If you are unsure, use the average of the last few months. At the end of this exercise, you should come up with ZERO unallocated income!
Balancing Our Blessings - Step #4
For those following the finance steps - and not wanting to go all the way back to the early posts of this blog...
Take the amount you wrote down from your account balance and subtract out what you NEED until payday for groceries, gas, diapers, etc. Notice I said NEED! This new balance is what you have to work with for this next step.
Look at the amount. Is it as much, or more, than the highlighted amounts from Step #2? If so, stop and right out the checks to pay all of those amounts – you are in a good place! Now wait for the rest of us!
If the amount you came up with is NOT as much or more than the highlighted amounts from Step #2, you have a bit of work to do here. Take a look at the items highlighted. Are there items that can be extended? For example, can you call your electric company and get an extension or work out a payment plan? Once you have worked out arrangements with those that you can, re-examine the shake out. If you are now good, write out the checks and hang out for a minute. If you still don’t shake out even or ahead, you will have to make some tough choices. Decide your priorities. If something can’t be paid, what can you live without? Personally, I would let my credit card go unpaid before I lost my electricity. Make those hard decisions and pay what you can NOW.
You still have enough money left for your necessities until pay day, right?! Now, take a deep breath and release. You just completed the yucky part of getting in balance!
Balancing Our Blessings - CCC #4 How Does it Shake Out?
Before I go any further with the finance part, I want to be sure everyone understands one thing:
While the basic steps may be the same for everyone, everyone’s circumstances are unique. That means there will be a ‘uniqueness’ to your approach on some steps. Just as everyone’s ‘command center’ will look different – yours may be an elaborate set up, while mine is in a little basket – the point is to make the steps work for YOU!
Okay, now back to the leg work. I completed step #3 and now know what I have in the bank. WOW! Entering all of the receipts can be a challenge at times, but VERY eye opening! Did you notice where a lot of your money went? Don’t be alarmed – we are still a work in progress.
Moving on along…
Step #4 – How does it shake out?
Take the amount you wrote down from your account balance and subtract out what you NEED until payday for groceries, gas, diapers, etc. Notice I said NEED! This new balance is what you have to work with for this next step.
Look at the amount. Is it as much, or more, than the highlighted amounts from Step #2? If so, stop and right out the checks to pay all of those amounts – you are in a good place! Now wait for the rest of us!
If the amount you came up with is NOT as much or more than the highlighted amounts from Step #2, you have a bit of work to do here. Take a look at the items highlighted. Are there items that can be extended? For example, can you call your electric company and get an extension or work out a payment plan? Once you have worked out arrangements with those that you can, re-examine the shake out. If you are now good, write out the checks and hang out for a minute. If you still don’t shake out even or ahead, you will have to make some tough choices. Decide your priorities. If something can’t be paid, what can you live without? Personally, I would let my credit card go unpaid before I lost my electricity. Make those hard decisions and pay what you can NOW.
You still have enough money left for your necessities until pay day, right?! Now, take a deep breath and release. You just completed the yucky part of getting in balance!
09 October 2011
Moving on to the next step!
True, the last two steps weren't all that fun, but we now know what we owe! That is usually enough to grab anyone's attention, so let's move along to the next step.
Balancing Our Blessings - CCC Step #3 - What's In The Bank?
This one may or may not be just as scary as the previous steps, but we need all of this information to Balance our Blessings! Have faith and move forward…
IF your checkbook register is up to date and balanced, YEA for you as this will be easy. All you need to do is make note of the current balance and put your feet up for a few minutes while you wait on the rest of us!
If your register is not up to date and will be semi easy to do so, stop and get it up to date and balanced NOW! Once you are done, write the amount down.
If you have the tendency to wing it (yes, there are those who do this!), you will have to estimate on this step. Pull up your account balance online and subtract what you think has not yet cleared. Then subtract another small cushion amount for those few things you likely forgot. Write the amount down.
08 October 2011
Balancing Our Blessings (again) Step 2
I pulled my credit card statements - not nearly as bad as the first time I worked this program, but they still need paid off...again! Are you ready for the next step? Here it is:
Balancing Our Blessings - CCC Step #2
Step #2 – Finding out where you are now
This one isn’t really meant to be fun either. You will need the tools you used in step one AND access to statements for ALL of your monthly bills – mortgage/rent, utilities, car payment, credit cards, day care, etc. (anything outside of food, gas, other necessities at this time). Don’t forget the items direct debited from your account!
As in the previous step, set your sheet up by listing all of these items down the left hand column. You will then have four columns to the right. Your sheet should look something like this:
Past Due Date Amount Current Date Amount
Mortgage
Electric
Gas
Phone
Cable
Credit Card
Car PmtCar
Ins.
Now, fill in those columns using the most recent statements available. The date columns should reflect the original actual due date of each bill. Total each column. This is what you currently owe others at this point. Pull in another tool…a HIGHLIGHTER. Highlight all amounts that are due prior to your next payday.
This one isn’t really meant to be fun either. You will need the tools you used in step one AND access to statements for ALL of your monthly bills – mortgage/rent, utilities, car payment, credit cards, day care, etc. (anything outside of food, gas, other necessities at this time). Don’t forget the items direct debited from your account!
As in the previous step, set your sheet up by listing all of these items down the left hand column. You will then have four columns to the right. Your sheet should look something like this:
Past Due Date Amount Current Date Amount
Mortgage
Electric
Gas
Phone
Cable
Credit Card
Car PmtCar
Ins.
Now, fill in those columns using the most recent statements available. The date columns should reflect the original actual due date of each bill. Total each column. This is what you currently owe others at this point. Pull in another tool…a HIGHLIGHTER. Highlight all amounts that are due prior to your next payday.
If you are following along, I'd love to hear your comments!
05 October 2011
Balancing Our Blessings - Step #1
Balancing Our Blessings - Step #1 Facing the Harsh Reality (the big picture)
This one is NOT meant to be fun or really even encouraging. It is meant to open our eyes and set our resolve to find balance!
Set your sheet up (computer or hard copy) by listing your debts down the left hand side. For now, we are only looking at things you pay monthly OUTSIDE of normal household expenses. By this, I mean car loans, credit card payments, etc. Things that have a total balance due. BUT leave out the house at this point. Check your statements to see what the payoff amount is and note that to the right of each debt. Total that column. THIS IS YOUR STARTING POINT! This is what you must pay off to become ‘debt free’. Now that your eyes are opened, set that aside and don’t think too much about it for now. You have likely found your motivator to move forward!
Reflect – While you were working on this step, did you find you were missing a tool? Did you discover it took HOURS to find your statements? Perhaps you need an ‘inbox’ for your SPOT or a special basket for incoming mail. Take time to pull in and implement that tool.
Set up and ready to move on
Okay, so with 1/2 of my house currently 'under construction', I decided a little basket on my night stand would be the safest bet. So, I rounded up what statements I could lay my hands on and grabbed a pen and paper. My trusty computer will round out my set up. I'm ready for the next step - are you?
04 October 2011
Central Command Center - Defined and How To
Central Command Center – What is it?
When I think of the phrase Central Command Center, my mind pulls in anything I need to run my household smoothly. Though it tends to jump ahead and urge me to list many things, I would have us all bouncing around like a scared rabbit! This Center will end up being just a little bit different for each person. Let’s get started!
When I think of the phrase Central Command Center, my mind pulls in anything I need to run my household smoothly. Though it tends to jump ahead and urge me to list many things, I would have us all bouncing around like a scared rabbit! This Center will end up being just a little bit different for each person. Let’s get started!
Balancing Our Blessings - How to Set up a Central Command Center
How to set up a Central Command Center
To start with, remember this will only consist of our financial arena at this time. Again, this can be customized to fit your personality and personal needs. Bare minimum, you need a SPOT! This can be a desk, a corner of the table, or a simple binder. Next, you will need a few TOOLS. Decide if you are going to work on this on your computer or the old fashioned way (pen(cil) and paper). You will also need a calculator (either your brain or an actual push button one – your choice) and access to your monthly statements. Again, this can be online or hard copy statements (stop and round all of these up if you are using hard copies). Tweak this to fit what you are most comfortable with – you are more likely to stick with it that way!
To start with, remember this will only consist of our financial arena at this time. Again, this can be customized to fit your personality and personal needs. Bare minimum, you need a SPOT! This can be a desk, a corner of the table, or a simple binder. Next, you will need a few TOOLS. Decide if you are going to work on this on your computer or the old fashioned way (pen(cil) and paper). You will also need a calculator (either your brain or an actual push button one – your choice) and access to your monthly statements. Again, this can be online or hard copy statements (stop and round all of these up if you are using hard copies). Tweak this to fit what you are most comfortable with – you are more likely to stick with it that way!
Balancing Our Blessings - I have my SPOT and TOOLS, now what?
I have my SPOT and my TOOLS, now what?
Now we have some hard steps to take that will not necessarily be pleasant. You may feel the urge to say ‘forget it’ or ‘it can’t be done’. Push past those thoughts and remember why you are doing this!
Now we have some hard steps to take that will not necessarily be pleasant. You may feel the urge to say ‘forget it’ or ‘it can’t be done’. Push past those thoughts and remember why you are doing this!
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