I'm still here, I'm still frugal, I just got bored with blogging for a while. Not to mention that my home became busy beyond compare when little man became mobile.
I'm making new frugal goals for each month (resolutions), so expect to see me blogging again soon!
Tuesday, January 3, 2012
Thursday, March 24, 2011
NSF
I got a big scare yesterday.
Went to the grocery store, picked up a few things for 2 or 3 suppers, scanned my debit card, and waited...
The cashier whispered, "It says insufficient funds."
My heart sank. Everything came back to me about the past, when we bounced checks on a regular basis, with overdraft fees compiling, the shame, the burden of worry. I kicked myself for not knowing my balance to the penny, even though I was aware of my spending limit before leaving the house. This was my third stop and I thought I had somehow miscalculated. I managed to beg enough cash off the kids to pay and hightail it out of there. Got outside and the van wouldn't start. What next, God? Finally got it going and headed home.
Went straight to the phone to call the auto bank line. Balance: more than $500! It was a computer glitch. This has happened before. Let's face it, computers are not always right. Something happened on one end or another of that little card scanning device; whether it was the debit card issuer's fault or not, I don't know. All I know is that the relief of knowing I was still within my boundaries flooded over me. The memory of that feeling of despair is so fresh and real. I was mentally scrambling, trying to see what I had done wrong, what I was going to do next, when I would be able to cover the bouncers, what I could convince the bank to do to help me out.
I never want to return to those irresponsible days! I'm now reminded that I am not perfect, and mistakes can happen to anyone, but it was the consistency of those overdrafts in the past that showed my lack of responsibility. I'm so thankful to have a cushion in checking and savings, no matter how small it may be. I'm also thankful that I have another car I can drive until my main transportation is fixed! More than ever, I am motivated to be a good steward and encourage others to do the same.
Went to the grocery store, picked up a few things for 2 or 3 suppers, scanned my debit card, and waited...
The cashier whispered, "It says insufficient funds."
My heart sank. Everything came back to me about the past, when we bounced checks on a regular basis, with overdraft fees compiling, the shame, the burden of worry. I kicked myself for not knowing my balance to the penny, even though I was aware of my spending limit before leaving the house. This was my third stop and I thought I had somehow miscalculated. I managed to beg enough cash off the kids to pay and hightail it out of there. Got outside and the van wouldn't start. What next, God? Finally got it going and headed home.
Went straight to the phone to call the auto bank line. Balance: more than $500! It was a computer glitch. This has happened before. Let's face it, computers are not always right. Something happened on one end or another of that little card scanning device; whether it was the debit card issuer's fault or not, I don't know. All I know is that the relief of knowing I was still within my boundaries flooded over me. The memory of that feeling of despair is so fresh and real. I was mentally scrambling, trying to see what I had done wrong, what I was going to do next, when I would be able to cover the bouncers, what I could convince the bank to do to help me out.
I never want to return to those irresponsible days! I'm now reminded that I am not perfect, and mistakes can happen to anyone, but it was the consistency of those overdrafts in the past that showed my lack of responsibility. I'm so thankful to have a cushion in checking and savings, no matter how small it may be. I'm also thankful that I have another car I can drive until my main transportation is fixed! More than ever, I am motivated to be a good steward and encourage others to do the same.
Tuesday, March 1, 2011
What I'm Doing Consistently
New month, new budget. While crunching the numbers today, I'm reflecting on what I have done right over the last couple of months. It's a short list, but there are a few things that I've been consistent about that are making a big difference in saving money.
#1- Budget. I'm keeping a detailed budget every month, that has one section for cash expenses and another for debit card payments. I remove all of the cash I need for the month and place it in envelopes, constantly reconciling or re-juggling the dollars in my budget worksheet to maintain a zero balance (Total expenses must equal total net income.) Things I stock up on at the beginning of the month: pet food, gas, groceries, cell phone minutes if needed. I'm getting better about planning the month's meals so I can do one big grocery shop. Not perfect, but better. I haven't managed to keep it to one shopping trip yet, but I'm getting there.
Here are my cash categories: kids' pay, tithe, pet food, food, clothing/diapers/misc., birthdays/holidays, household/repair needs, homeschool needs, trash pickup.
Here are my debit/auto withdrawal categories: checking buffer (this is an amount of money that will always stay in the checking account to protect from mistakes, and could be anywhere from $5 if you are VERY careful- not recommended, to $100 or more), Netflix, electric, water company, phone/internet, auto insurance, mortgage payment, gasoline, doctor bills, saving for yearly expenses (such as car tags, eyeglasses, and Christmas), and savings. The amount for savings will be transferred to the actual savings account periodically.
As you can see, I have a few unnecessary expenses like Netflix. These things could easily be cut out of the budget if our finances took an unexpected hit. I try not to buy things that come with a contract, like gym memberships and "real" cell phone plans.
Let's say I budgeted $300 for electric this month, and the bill came to $350. I would have to look at my worksheet and take $50 from another category. I do this each time I pay bills or go shopping, which makes shopping only once or twice a month very necessary, if I don't want to spend all of my time on the computer, reconciling.
One of my best tricks for staying within the budget is to consider my husband's projected income to be less than the actual amount. If you are paid hourly, and you work overtime, figure your budget on 40 hours worth of pay, and do not include overtime. This is especially helpful if your overtime is cut for some reason. If you only work 40 hours or receive a salary, only count a portion of the income and save the rest. Even if you spend it, it is better to begin this practice for eventual saving. Say you bring home $537 per week. Count only the $500 in the month's budget, so your 4-week "net income" line reads, "$2000." Then you plan all of your expenses for the month to equal $2000 and not a penny more. It may play out differently because of unforeseen circumstances, but you'll have a plan, a goal, and that makes all the difference. Each month you will see that you are getting a little better at this budgeting thing.
#2- Procrastination. I avoid withdrawing the money for the month until absolutely necessary. I am also planning a "spending fast" for the month of March. This will be a 2-week period of no spending. Exceptions will be bills that are paid through automatic withdrawal. Try a 1-week fast or even a few days, whatever you think will be a challenge, but still manageable.
I also do not consider the previous month's balance in the bank to be considered as part of the bill-paying income. That used to throw me off. Now, I just save whatever is leftover at the end of each month. Cha-ching! I count only the paychecks that fall within the calendar month as income, even if there was a check the day before the 1st. For instance, my bill-paying month actually begins March 4th, when we get our first check- really, the 5th, when it appears in the bank after automatic deposit.
#3- Preparation. Prepare the envelopes for your cash before you make your bank withdrawal. I always go to the bank on the way to run errands. If my envelopes don't have the dollar amount for each category (or at least have it written on a scrap of paper), I'm going to forget and overspend.
Prepare your month's menu.
Prepare your taxes!
Preparation takes a lot of time. It's worth it, if the time is available, and it creates a reasonable amount of savings for the time spent. Some people say that the time saved must be a decent wage, or at least save you more than the amount you would have spent on convenience. I agree in a sense, but if the time you used to prepare your finances was going to be frittered away on television or video games, it is better spent on furthering your goals. One way I speed up my prep time is by setting a timer for 5, 10, or 15 minutes. I always try to beat the timer.
#1- Budget. I'm keeping a detailed budget every month, that has one section for cash expenses and another for debit card payments. I remove all of the cash I need for the month and place it in envelopes, constantly reconciling or re-juggling the dollars in my budget worksheet to maintain a zero balance (Total expenses must equal total net income.) Things I stock up on at the beginning of the month: pet food, gas, groceries, cell phone minutes if needed. I'm getting better about planning the month's meals so I can do one big grocery shop. Not perfect, but better. I haven't managed to keep it to one shopping trip yet, but I'm getting there.
Here are my cash categories: kids' pay, tithe, pet food, food, clothing/diapers/misc., birthdays/holidays, household/repair needs, homeschool needs, trash pickup.
Here are my debit/auto withdrawal categories: checking buffer (this is an amount of money that will always stay in the checking account to protect from mistakes, and could be anywhere from $5 if you are VERY careful- not recommended, to $100 or more), Netflix, electric, water company, phone/internet, auto insurance, mortgage payment, gasoline, doctor bills, saving for yearly expenses (such as car tags, eyeglasses, and Christmas), and savings. The amount for savings will be transferred to the actual savings account periodically.
As you can see, I have a few unnecessary expenses like Netflix. These things could easily be cut out of the budget if our finances took an unexpected hit. I try not to buy things that come with a contract, like gym memberships and "real" cell phone plans.
Let's say I budgeted $300 for electric this month, and the bill came to $350. I would have to look at my worksheet and take $50 from another category. I do this each time I pay bills or go shopping, which makes shopping only once or twice a month very necessary, if I don't want to spend all of my time on the computer, reconciling.
One of my best tricks for staying within the budget is to consider my husband's projected income to be less than the actual amount. If you are paid hourly, and you work overtime, figure your budget on 40 hours worth of pay, and do not include overtime. This is especially helpful if your overtime is cut for some reason. If you only work 40 hours or receive a salary, only count a portion of the income and save the rest. Even if you spend it, it is better to begin this practice for eventual saving. Say you bring home $537 per week. Count only the $500 in the month's budget, so your 4-week "net income" line reads, "$2000." Then you plan all of your expenses for the month to equal $2000 and not a penny more. It may play out differently because of unforeseen circumstances, but you'll have a plan, a goal, and that makes all the difference. Each month you will see that you are getting a little better at this budgeting thing.
#2- Procrastination. I avoid withdrawing the money for the month until absolutely necessary. I am also planning a "spending fast" for the month of March. This will be a 2-week period of no spending. Exceptions will be bills that are paid through automatic withdrawal. Try a 1-week fast or even a few days, whatever you think will be a challenge, but still manageable.
I also do not consider the previous month's balance in the bank to be considered as part of the bill-paying income. That used to throw me off. Now, I just save whatever is leftover at the end of each month. Cha-ching! I count only the paychecks that fall within the calendar month as income, even if there was a check the day before the 1st. For instance, my bill-paying month actually begins March 4th, when we get our first check- really, the 5th, when it appears in the bank after automatic deposit.
#3- Preparation. Prepare the envelopes for your cash before you make your bank withdrawal. I always go to the bank on the way to run errands. If my envelopes don't have the dollar amount for each category (or at least have it written on a scrap of paper), I'm going to forget and overspend.
Prepare your month's menu.
Prepare your taxes!
Preparation takes a lot of time. It's worth it, if the time is available, and it creates a reasonable amount of savings for the time spent. Some people say that the time saved must be a decent wage, or at least save you more than the amount you would have spent on convenience. I agree in a sense, but if the time you used to prepare your finances was going to be frittered away on television or video games, it is better spent on furthering your goals. One way I speed up my prep time is by setting a timer for 5, 10, or 15 minutes. I always try to beat the timer.
Monday, February 28, 2011
February Wrap-Up
The heat has been turned down, and often turned off in this warm spring weather (yes, I know it's still the dead of winter, but it was 75 degrees today). However, the electric bill has remained high. Twice it was over $300 and once it was around $400. Gasoline prices are rising. Food prices are rising. I've been doing okay at cooking at home, but not great at shopping for bargains. In fact, I have gone over my food budget because I let DH shop for me and I was also sick, not wanting to cook as much. I did cook more when DD15 got on a kitchen-cleaning kick. Hopefully, she will stay on it!
Even with all of these budget-busters, I have been able to save a good deal of money. This is due to the overtime DH has been working. Were it not for that, the budget would be a little bit different. We know the overtime won't last forever, so I am saving as much as I can. I was able to put DH's entire paycheck into savings week before last. I'm not saying this to brag, but to tell you it can be done. You can reach that point. We even spent an unexpected amount this month because of an out-of-town trip.
Been reading the bawdy Jeff Yeager's books, The Ultimate Cheapskate's Road Map to True Riches and The Cheapskate Next Door. I really agree with his concept of "enough." This is what I have felt for a long time, that we aren't going to get rich by spending money on good deals, but rather by not buying the item at all. Most of us are already rich in things that really matter. Think about it.
I'm still working hard on our goal- to save $10,000 before returning to extra principal payments on the mortgage. Also have 2-3 doctor bills to pay. So, I will go into March with both hands on the financial reins and out of the pocketbook.
Even with all of these budget-busters, I have been able to save a good deal of money. This is due to the overtime DH has been working. Were it not for that, the budget would be a little bit different. We know the overtime won't last forever, so I am saving as much as I can. I was able to put DH's entire paycheck into savings week before last. I'm not saying this to brag, but to tell you it can be done. You can reach that point. We even spent an unexpected amount this month because of an out-of-town trip.
Been reading the bawdy Jeff Yeager's books, The Ultimate Cheapskate's Road Map to True Riches and The Cheapskate Next Door. I really agree with his concept of "enough." This is what I have felt for a long time, that we aren't going to get rich by spending money on good deals, but rather by not buying the item at all. Most of us are already rich in things that really matter. Think about it.
I'm still working hard on our goal- to save $10,000 before returning to extra principal payments on the mortgage. Also have 2-3 doctor bills to pay. So, I will go into March with both hands on the financial reins and out of the pocketbook.
Wednesday, December 29, 2010
A Little Bit Colder
Wow. Nothing like the electric bill to snap a person into reality. I can't ignore preparing next month's budget when a bill like this one looms on the horizon! More than double what we paid last month. Sweaters, slippers, throws, and hot tea are coming out today, and I'm turning that heat waaaayyyyyy down! I just can't let electricity eat up all of the extra $ that I want to save this winter!
With that scary little jumpstart, I'm working on the budget for the New Year, and looking for ways to trim it. I will have another tiny food budget in January. I have plenty of food in the house and in the freezer to last a good while if I am creative and plan meals ahead. Should only need to buy milk and fresh veggies.
I saw so many awesome tutorials for homemade Christmas gifts, I'd like to devote some time this year to making next year's gifts for everyone. I don't know if I'll stick to it, but maybe I will make a few things, anyway.
I'm off to work on a New Year's resolution... doing a workout video on Netflix.
With that scary little jumpstart, I'm working on the budget for the New Year, and looking for ways to trim it. I will have another tiny food budget in January. I have plenty of food in the house and in the freezer to last a good while if I am creative and plan meals ahead. Should only need to buy milk and fresh veggies.
I saw so many awesome tutorials for homemade Christmas gifts, I'd like to devote some time this year to making next year's gifts for everyone. I don't know if I'll stick to it, but maybe I will make a few things, anyway.
I'm off to work on a New Year's resolution... doing a workout video on Netflix.
Sunday, December 26, 2010
New Year
We had a wonderful Christmas. Stayed home due to the snow and enjoyed a leisurely day, although we missed being with our extended family.
I had planned a certain amount of spending for the children's Christmas presents, but I ended up going over budget a little bit. Without the plan, I would certainly have spent even more. DH and I also spent more on each other than we intended. Prices have risen so much. DH bought me an espresso maker! All of our Christmas goodies were so delicious-- cappucino, fudge, homemade pumpkin bread, rum balls rolled in dark chocolate and peppermint... yum!
I haven't crunched the numbers yet, but I believe that I have kept close to my weekly food budget. I did use the envelope system, although things got a bit confused during all the Christmas shopping. The spending for holiday food was in a separate category, so I don't count that. We've eaten at home constantly, with the one exception of spending a McDonald's giftcard. I purchased the items that I needed at Aldi from the $45 Emergency Menu on hillbillyhousewife.com, and found that most of the items were cheaper than listed. It may be that prices were reduced, or that the list was made in another part of the country. Regardless, I found that I was able to feed the family cheaply, even though I bought a few different items, and also stocked up on 20+ loaves of bread at the nearby Sara Lee outlet. I didn't make everything on the Hillbilly menu. Many of the recipes came from Clara's Kitchen. I also used a few of my own old favorites. (In a future post, I'd like to give a sample week's menu at our house.) I also cooked quite a bit from the pantry and freezer, using up things that I had on hand. I speak in past tense about the budget, because it encompassed the entire month and the envelope money is all gone! I will be spending some splurge money on The Voyage of the Dawn Treader, but that is money well spent! DH got some extra on his paycheck that will cover the discrepancies, while keeping us within the budget and savings plan. The envelope system helped to rein in our spending.
Still using the Tracfones, begrudgingly, for lack of a better idea.
Today we took our tree down. This is the earliest we have ever done it. We are all ready to get back to a regular routine, especially with the changes that the new baby has brought.
Looking forward to a new year! Resolutions forthcoming!
Tuesday, December 14, 2010
Depressing Recession
I'm waking up to the fact that our finances have been hit hard by the policies of the current administration. Can't thank the Fed enough for flooding the market with cash every time prices began to fall! The bailouts and health care increases in advance of Obamacare have also helped tremendously. Sarcasm aside, our paycheck is smaller, and our bills are bigger. Even people we know that have white-collar jobs are wondering what they will do next.
At this point, we are questioning whether pinching the pennies we are bringing home will be enough, or if we need to seek more ways to generate a few extra pennies! I know that other families are considering the same thing, as the economy continues downhill. My prayer is that the installment of the new members of Congress will bring changes for the better in our country. In the meantime, we need to prepare for emergency and find a way to set back enough pennies for the possibility of even harder times.
Several people have asked me how I am going to reduce my grocery budget to $50 per week, as I announced rather boldly on Facebook. I have high hopes that I will be able to accomplish this, and my first strategy is to bake more things from scratch than I had been doing previously. I am using ideas from Clara's Kitchen (book), the Hillbilly Housewife (website), and The Tightwad Gazette (book). I will implement the $45 Emergency Menu outlined on the Hillbilly Housewife website. For now, I will also draw from our freezer full of meat. I have 2 whole turkeys and many pounds of pork. I don't expect to make the goal every week, but I have something to shoot for. I have a separate budget category for the food I will buy for Christmas, and also a category for pet food. I am going to withdraw enough cash to cover my expenses each month, and return to the envelope system that I abandoned long ago. I will be forced to use only the cash available. Can I be brave enough to actually leave the checkbook and debit card at home?
I overhauled my budget in the middle of the month, so I'll be going to the bank to withdraw enough for the rest of this month as soon as the world thaws a little. Don't be afraid to start your budget now. If I waited for the beginning of the month, I would lose the inspiration and momentum that I currently have going.
I am rethinking our Tracfone usage. Tracfones were working great when we only used about 60 minutes in 3 months. However, my Dear Husband likes to call me from work, OFTEN. So, the savings are not what they once were. I don't know if I can convince him to use the phone less, so this one is going to require some thought.
At this point, we are questioning whether pinching the pennies we are bringing home will be enough, or if we need to seek more ways to generate a few extra pennies! I know that other families are considering the same thing, as the economy continues downhill. My prayer is that the installment of the new members of Congress will bring changes for the better in our country. In the meantime, we need to prepare for emergency and find a way to set back enough pennies for the possibility of even harder times.
Several people have asked me how I am going to reduce my grocery budget to $50 per week, as I announced rather boldly on Facebook. I have high hopes that I will be able to accomplish this, and my first strategy is to bake more things from scratch than I had been doing previously. I am using ideas from Clara's Kitchen (book), the Hillbilly Housewife (website), and The Tightwad Gazette (book). I will implement the $45 Emergency Menu outlined on the Hillbilly Housewife website. For now, I will also draw from our freezer full of meat. I have 2 whole turkeys and many pounds of pork. I don't expect to make the goal every week, but I have something to shoot for. I have a separate budget category for the food I will buy for Christmas, and also a category for pet food. I am going to withdraw enough cash to cover my expenses each month, and return to the envelope system that I abandoned long ago. I will be forced to use only the cash available. Can I be brave enough to actually leave the checkbook and debit card at home?
I overhauled my budget in the middle of the month, so I'll be going to the bank to withdraw enough for the rest of this month as soon as the world thaws a little. Don't be afraid to start your budget now. If I waited for the beginning of the month, I would lose the inspiration and momentum that I currently have going.
I am rethinking our Tracfone usage. Tracfones were working great when we only used about 60 minutes in 3 months. However, my Dear Husband likes to call me from work, OFTEN. So, the savings are not what they once were. I don't know if I can convince him to use the phone less, so this one is going to require some thought.