Well - we've been in Baby Step 4 for a while (invest 15% of your income in retirement), but now we're back in Baby Step 3 (save a 6 month emergency fund).
We had our 6 month emergency fund saved before ($30,000), but several "emergencies" in 2011 caused us to dip into that money.
2011 EMERGENCIES
- replace mini van ($15,000)
- replace dh's car ($15,000)
- replace furnace ($6,000)
Truth be told - none of the above "emergencies" were actually ture emergencies. They were all things we knew we would have to replace and we should have been saving up for them in sinking funds. But - we were caught before our sinking funds were funded, thus turning those situations into "emergencies" - or at least making us decide to dip into our Emergency Fund to pay for them.
You may note that the total of the Emergencies adds up to more than $30,000. And, luckily, our emergency fund isn't completely at zero (we have $8,000) - so, I guess that's a little good news. The bad news is that we have to get that account back up to $30,000 as quick as possible.
According to my projections, we should be able to have the savings back up there by the end of July - hopefully sooner.
So, that's what's going on with me. I'll try to update again soon!
Monday, February 20, 2012
Tuesday, October 26, 2010
LOOKING GOOD
Well, things have improved dramatically over the past few months.
Hubby got a new job with a 25% raise in his base salary, and the potential to earn very significant commissions (though I'm no longer counting on commissions!).
Our Emergency Fund is back to where it should be ($30,000) and we have even started putting money aside for the kids for college.
My pendant business is going great! Two weeks ago I had my best craft show ever, and I made $2,700 on that one day! Other shows have been good too, and the last two months my income was actually higher than my hubby's!
I have to say that it feels good to have a plan, and even when we get off track, we can recognize that we are off track and have a blue print for how to get back on track. (I'm referring to Dave Ramsey's Baby Steps!)
Hubby got a new job with a 25% raise in his base salary, and the potential to earn very significant commissions (though I'm no longer counting on commissions!).
Our Emergency Fund is back to where it should be ($30,000) and we have even started putting money aside for the kids for college.
My pendant business is going great! Two weeks ago I had my best craft show ever, and I made $2,700 on that one day! Other shows have been good too, and the last two months my income was actually higher than my hubby's!
I have to say that it feels good to have a plan, and even when we get off track, we can recognize that we are off track and have a blue print for how to get back on track. (I'm referring to Dave Ramsey's Baby Steps!)
Sunday, August 22, 2010
Financial Trouble
Well, things aren't going all that great. DH's new job isn't what we had hoped. He hasn't made a commission since he started 7 months ago. So, we have been living on just over 60% of what he used to make. Luckily I have been making some good money selling my pendants at craft shows, but our income is still seriously low, barely covering our monthly expesnes.
To make matters worse, we just got back from taking our family on a week long cruise. We had this cruise planned for months ago, and, in theory, we paid cash for it. That means, we paid cash when we initially paid for the cruise . . . BUT, there were lots of additional costs that I did not take into consideration.
Between everything, the bottom line is that our Emergency Fund is now down by $4,000 ($26,000 instead of $30,000). And what's worse is that it doesn't look like we'll be able to build it back up for several months - like probably not until next May! UGH!
DH is interviewing for a new job that would bring a substantial pay increase, so I'm keeping my fingers crossed - but still feeling very nervous in the meantime.
The road to Financial Peace certainly is a long one!
To make matters worse, we just got back from taking our family on a week long cruise. We had this cruise planned for months ago, and, in theory, we paid cash for it. That means, we paid cash when we initially paid for the cruise . . . BUT, there were lots of additional costs that I did not take into consideration.
Between everything, the bottom line is that our Emergency Fund is now down by $4,000 ($26,000 instead of $30,000). And what's worse is that it doesn't look like we'll be able to build it back up for several months - like probably not until next May! UGH!
DH is interviewing for a new job that would bring a substantial pay increase, so I'm keeping my fingers crossed - but still feeling very nervous in the meantime.
The road to Financial Peace certainly is a long one!
Monday, May 3, 2010
Baby Step 3 - CHECK!
Well, it's official - we have completed Baby Step 3! 6 months of emergency funds ($30,000) saved. It feels great!!
The money is definitely tempting to my husband (who wants new windows, new patio furniture, to remodel and expand the house . . .) but there is no way I'm giving up this security! Luckily our short term savings is starting to grow now too - up to $5,000 already. So, we should be able to get him some of the things he wants soon.
I have to admit that this whole process has turned me from a spender into somewhat of a saver. I actually feel a little reluctant to even dip into the $5,000. It is so hard to prioritize what to spend the money on. I just want to be conservative and spend our funds wisely.
Now we can finally begin (much too late!) to focus on saving for college for our 3 daughters. Our oldest is already 13 and will be going to college in just 5 short years. Not a lot of time to save the hundreds of thousands that will be needed.
Isn't it crazy - just as soon as something is crossed off the list, it's time to work on the next step! It's like the finish line is always moving!
But, I have to admit, when we began this process 3 years ago - being where we are today seemed almost impossible. I am so grateful to Dave Ramsey and all my PF Blogger friends for showing me the way and encouraging me to stay on track!
I am truly blessed!
The money is definitely tempting to my husband (who wants new windows, new patio furniture, to remodel and expand the house . . .) but there is no way I'm giving up this security! Luckily our short term savings is starting to grow now too - up to $5,000 already. So, we should be able to get him some of the things he wants soon.
I have to admit that this whole process has turned me from a spender into somewhat of a saver. I actually feel a little reluctant to even dip into the $5,000. It is so hard to prioritize what to spend the money on. I just want to be conservative and spend our funds wisely.
Now we can finally begin (much too late!) to focus on saving for college for our 3 daughters. Our oldest is already 13 and will be going to college in just 5 short years. Not a lot of time to save the hundreds of thousands that will be needed.
Isn't it crazy - just as soon as something is crossed off the list, it's time to work on the next step! It's like the finish line is always moving!
But, I have to admit, when we began this process 3 years ago - being where we are today seemed almost impossible. I am so grateful to Dave Ramsey and all my PF Blogger friends for showing me the way and encouraging me to stay on track!
I am truly blessed!
Tuesday, April 13, 2010
Looking Good
Well, things are looking up a bit. May will be a big income month for us. My husband will get an extra paycheck (being paid every other Friday, with an extra Friday in the month); we are expecting a large tax refund of $7,500; I have several craft shows booked and am budgeting $500 (as most the money I keep in the business); we are getting a check from FEMA for $500 our flooded basement, and I have several babysitting days lined up accounting for another $200.
So, looks like we will be able to finish the Emergency Fund of $30,000 and put another $8,000 into short term savings!! I really can't believe it!
We will finally be able to start saving for college and do some much needed home repairs. The Dave Ramsey Plan really works!!! :)
So, looks like we will be able to finish the Emergency Fund of $30,000 and put another $8,000 into short term savings!! I really can't believe it!
We will finally be able to start saving for college and do some much needed home repairs. The Dave Ramsey Plan really works!!! :)
Wednesday, April 7, 2010
BACK TO THE OLD WAYS
Well, I'm embarrassed to say that I have not been paying attention to our finances lately. I have definitely sort of reverted to the old ways. We have a good amount of money in our checking account and I have just been using my debit card willy nilly. This does not feel good.
Our Emergency Fund is substantial, but not complete. I have not looked at our budget in weeks (maybe months?).
I could make excuses and say that life has been busy - and it hasbeen, but when is it not? I have spent a lot of time applying to Craft Shows and focusing on my pendant business (which is going well), but a lot of people work full time and manage to handle their finances. I need to get back on track.
I remember someone saying that Baby Step 3 (Finishing the Emergency Fund) is even harder than Baby Step 2 (Getting Out of Debt) - and when I was in BS2 I found that hard to believe, but now that I'm here in BS3 I think they might have been right.
Looking forward to re-focusing and catching up on my PF Blogger friend's blogs for some inspiration!
Our Emergency Fund is substantial, but not complete. I have not looked at our budget in weeks (maybe months?).
I could make excuses and say that life has been busy - and it hasbeen, but when is it not? I have spent a lot of time applying to Craft Shows and focusing on my pendant business (which is going well), but a lot of people work full time and manage to handle their finances. I need to get back on track.
I remember someone saying that Baby Step 3 (Finishing the Emergency Fund) is even harder than Baby Step 2 (Getting Out of Debt) - and when I was in BS2 I found that hard to believe, but now that I'm here in BS3 I think they might have been right.
Looking forward to re-focusing and catching up on my PF Blogger friend's blogs for some inspiration!
Wednesday, February 10, 2010
Can We Really Live Without A Credit Card?
Well, we paid off all of our credit cards months ago. And we closed all accounts except one. Now the one we kept open is trying to charge us the annual fee.
I have no desire to ever use a credit card again, but I'm not sure I feel safe closing this last account. I know Dave Ramsey would advocate strongly to close the account. But something about having it does make me feel just a little more secure.
What do you think? Has anyone else closed all their credit card accounts?
I have no desire to ever use a credit card again, but I'm not sure I feel safe closing this last account. I know Dave Ramsey would advocate strongly to close the account. But something about having it does make me feel just a little more secure.
What do you think? Has anyone else closed all their credit card accounts?
Wednesday, January 27, 2010
February 2010 Budget
Here is our budget for February.
My husband will actually be starting a new job on February 1st. His base salary will remain the same ($75,000) but his commission potential (on target earnings) will go up (to $150,000), so we will hope for the best but plan for the worst. In other words, to start out I will plan our budget without planning for any commission at all.
(On the other hand, he will probably be getting some extra money from his old job for vacation days he didn't take, etc. And, we are waiting to see how much his last big commission check will be - maybe as much as $10,000, which will finish our Emergency Fund with a little left over. So, we'll see how it all pans out.)
I have also budgeted low ($100) for my Jewelry Income. I am only doing one craft show in February (there aren't that many around) and I can't allocate too much of my earnings for income because I need a lot of money up front to sign up for the many craft shows throughout th year.
So, basically, I am planning our budget very conservatively.
The Misc. of $250 is for the bridesmaid dress I will be getting to be in my sister's wedding. The Kid's Misc. of $52 is for my daughter's dance lessons.
My husband will actually be starting a new job on February 1st. His base salary will remain the same ($75,000) but his commission potential (on target earnings) will go up (to $150,000), so we will hope for the best but plan for the worst. In other words, to start out I will plan our budget without planning for any commission at all.
(On the other hand, he will probably be getting some extra money from his old job for vacation days he didn't take, etc. And, we are waiting to see how much his last big commission check will be - maybe as much as $10,000, which will finish our Emergency Fund with a little left over. So, we'll see how it all pans out.)
I have also budgeted low ($100) for my Jewelry Income. I am only doing one craft show in February (there aren't that many around) and I can't allocate too much of my earnings for income because I need a lot of money up front to sign up for the many craft shows throughout th year.
So, basically, I am planning our budget very conservatively.
The Misc. of $250 is for the bridesmaid dress I will be getting to be in my sister's wedding. The Kid's Misc. of $52 is for my daughter's dance lessons.
| EXPENSES | Feb-10 |
| AUTO-Excise Tax | $0 |
| AUTO-BR Gas | $160 |
| AUTO-Insurance | $119 |
| AUTO-Maintenance | $0 |
| CASH-Clothing | $0 |
| CASH-Dining Out | $120 |
| CASH-JR Gas | $120 |
| CASH-Gifts | $160 |
| CASH-Grocery | $450 |
| CASH-Kids Allowanc | $48 |
| CASH-Parties | $0 |
| CASH-School Lunch | $36 |
| CASH-Spending | $160 |
| HOME-Cable/Phone | $160 |
| HOME-Electric | $140 |
| HOME-Mortgage | $2,345 |
| HOME-Oil | $350 |
| HOME-Water | $0 |
| HOME-Trash | $0 |
| HOME-Snow Plow | $40 |
| KIDS-Bball | $0 |
| KIDS-Misc. | $52 |
| KIDS-Piano | $0 |
| MISC. | $250 |
| PERS-Cell Phone | $0 |
| PERS-Contacts | $99 |
| PERS-Life Ins. | $0 |
| PERS-Newspap | $12 |
| PERS-BR Nasacort | $0 |
| PERS-BR Prilosc | $0 |
| PERS-Cat Enalapril | $0 |
| PERS-Braces | $100 |
| PERS-BR Sports | $0 |
| PERS-Vacation | $0 |
| TRNSF-to EF | $0 |
| TRNSF-to Savings | $0 |
| | |
| TOTAL | $4,921 |
| | |
| INCOME | Feb-10 |
| 1st Paycheck | $2,261 |
| 1st Commission | $0 |
| 15th Paycheck | $2,261 |
| Church Pay | $0 |
| Jewelry Pay | $100 |
| Babysitting | $100 |
| Other | $0 |
| TRNSF from EF | $0 |
| TRNSF fr SAVINGS | $0 |
| TOTAL | $4,722 |
Thursday, January 21, 2010
Still Working The Plan
Well, I got a nice comment on an old post from a new reader. He asked me a little about my story and how we got out of debt. I told him a bit and suggested he look back through my blog by category (such as "debt", "earn money", etc.) - so I actually did this myself.
It was actually really fun and inspiring to read many of my old posts and to see how far we really have come.
We started on our journey in February 2008. We became debt free (except for the house) in April 2009. As of today, we are a little more than 2/3 of the way in saving our Fully Funded Emergency Fund of $30,000 (we have $22,500 so far).
My husband is expecting a very large commission at the end of the month, maybe close to $10,000 - so there is a chance we could finish the FFEF then! (This will only be the second commission check my husband has received in the last 6 months, and the last one was much much smaller.) So, I'm hopeful but trying not to count my chickens before they hatch.
The other problem I will be facing is - my husband.
Every week he talks about something else that we need to do around the house. He wants new windows, a new heating system, finish the basement, we'll both need new cars soon, etc. The list goes on and on.
I fear that when the big commission check comes in he'll want to spend it instead of save it.
In some ways this has been an ongoing problem. He isn't completely on board with the whole "get/stay out of debt" thing. He is happy that we are out of debt but I think he is skeptical about weather or not we'll be able to stay out of debt. (I am determined!)
Most likely, I will need to give in a little and spend a bit on some household upgrades that we do need (want) and are important to him. I'm just hoping that there will be enough money to finish the FFEF and do something he wants. :)
It was actually really fun and inspiring to read many of my old posts and to see how far we really have come.
We started on our journey in February 2008. We became debt free (except for the house) in April 2009. As of today, we are a little more than 2/3 of the way in saving our Fully Funded Emergency Fund of $30,000 (we have $22,500 so far).
My husband is expecting a very large commission at the end of the month, maybe close to $10,000 - so there is a chance we could finish the FFEF then! (This will only be the second commission check my husband has received in the last 6 months, and the last one was much much smaller.) So, I'm hopeful but trying not to count my chickens before they hatch.
The other problem I will be facing is - my husband.
Every week he talks about something else that we need to do around the house. He wants new windows, a new heating system, finish the basement, we'll both need new cars soon, etc. The list goes on and on.
I fear that when the big commission check comes in he'll want to spend it instead of save it.
In some ways this has been an ongoing problem. He isn't completely on board with the whole "get/stay out of debt" thing. He is happy that we are out of debt but I think he is skeptical about weather or not we'll be able to stay out of debt. (I am determined!)
Most likely, I will need to give in a little and spend a bit on some household upgrades that we do need (want) and are important to him. I'm just hoping that there will be enough money to finish the FFEF and do something he wants. :)
Sunday, January 10, 2010
Simplifying Life
. . . . aaaaahhh . . . . this is always one of my goals for the New Year - to simplify my life. Well, this year is no different. In fact, I think I need it more than ever!
I feel like my head has been spinning for the past several months. Trying to keep up with the schedules and activities of my three daughters, run the household and the budget, and keep my Scrabble Pendant business going - it has been busy, busy, busy.
I often feel an underlying stress pulsing through my body, when what I really crave is peace.
I don't have a set of goals outlined yet, to achieve this simplified life. But I know that I will begin by reading up on the subject.
Here are some of my thoughts in no particular order:
1. I need to improve my Calendar system. I am not prompt in recording things on the calendar and this results in things slipping through the cracks. (And causes much stress!)
2. I am not proactive enough. I leave too much for the last minute. I am overly confident about how much I can accomplish in a certain amount of time, usually resulting in frustration.
3. Frustrated and stressed is probably how my family would describe me a lot of the time - and this is NOT what I want. I want to be a source of peace for my family.
4. My Scrabble Pendant business has been a great source of pleasure and income for me, but I must put limits on the amount of time I spend on it and be sure the needs of my family are met.
5. I must plan carefully which craft shows I will attend, and more importantly, how many craft shows I will attend. Balance is essential.
6. I spend far too much time returning items, or organizing things to be returned. It is fiscally prudent to return items you don't want or need, but this is a time consuming and stressful process that needs to be weighed in terms of costs and benefits. Many returns result from things given to us by others (gifts, etc.) but many are self induced - and I must refrain from making purchases if I am unsure. I want to change my habit from "I'll buy it and return it if I decide I don't need it" to "I'll think about it and come back if I decide that I want it".
7. More attention needs to be paid to planning and reviewing the Budget!
8. Planning meals and grocery shopping regularly will help relieve Dinner Time Stress!
9. A clean (and organized) house goes a long way toward putting me in a peaceful mood. I need to make the time to clean (and organize)!
10. Less stuff means less clutter, less cleaning, less stress!
Well, that's a list that should keep me busy for most of 2010!
What are your goals for the new year?
I feel like my head has been spinning for the past several months. Trying to keep up with the schedules and activities of my three daughters, run the household and the budget, and keep my Scrabble Pendant business going - it has been busy, busy, busy.
I often feel an underlying stress pulsing through my body, when what I really crave is peace.
I don't have a set of goals outlined yet, to achieve this simplified life. But I know that I will begin by reading up on the subject.
Here are some of my thoughts in no particular order:
1. I need to improve my Calendar system. I am not prompt in recording things on the calendar and this results in things slipping through the cracks. (And causes much stress!)
2. I am not proactive enough. I leave too much for the last minute. I am overly confident about how much I can accomplish in a certain amount of time, usually resulting in frustration.
3. Frustrated and stressed is probably how my family would describe me a lot of the time - and this is NOT what I want. I want to be a source of peace for my family.
4. My Scrabble Pendant business has been a great source of pleasure and income for me, but I must put limits on the amount of time I spend on it and be sure the needs of my family are met.
5. I must plan carefully which craft shows I will attend, and more importantly, how many craft shows I will attend. Balance is essential.
6. I spend far too much time returning items, or organizing things to be returned. It is fiscally prudent to return items you don't want or need, but this is a time consuming and stressful process that needs to be weighed in terms of costs and benefits. Many returns result from things given to us by others (gifts, etc.) but many are self induced - and I must refrain from making purchases if I am unsure. I want to change my habit from "I'll buy it and return it if I decide I don't need it" to "I'll think about it and come back if I decide that I want it".
7. More attention needs to be paid to planning and reviewing the Budget!
8. Planning meals and grocery shopping regularly will help relieve Dinner Time Stress!
9. A clean (and organized) house goes a long way toward putting me in a peaceful mood. I need to make the time to clean (and organize)!
10. Less stuff means less clutter, less cleaning, less stress!
Well, that's a list that should keep me busy for most of 2010!
What are your goals for the new year?
Friday, January 8, 2010
Hello Blogging World
Happy New Year Everyone!
Sorry I haven't posted in so long. I really can't believe that it's been since November!
Things have been going pretty well. 2009 was a really good year for my Pendant Business. It was very enjoyable and profitable. I am looking forward to growing the business even more in 2010.
My record keeping hasn't been the best during this busy time of year, but I'll post the details when I get all my financial records in order for taxes.
I'd like to keep blogging and hope that I'll find (make) the time to do it. My finances will most likely revolve around my business, so I hope I'll have interesting things to share.
Many of you know that we became debt free in 2009. We are now working on building our Fully Funded Emergency Fund. Our goal is $30,000 and right now we are at $22,500. There is a chance my husband will be getting a very large commission soon that could boost us right up to our goal - but I'm trying not to count my chickens before they hatch.
With all the money I made selling at craft shows over the holiday season you would think that we could have contributed more to our FFEF, but my husband received very little in commission over the past 9 months - so my extra income largely just replaced the commission we had thought he would make.
I think 2010 is going to be a great year! Look forward to sharing it with you all and catching up on what you have been doing.
:)
Sorry I haven't posted in so long. I really can't believe that it's been since November!
Things have been going pretty well. 2009 was a really good year for my Pendant Business. It was very enjoyable and profitable. I am looking forward to growing the business even more in 2010.
My record keeping hasn't been the best during this busy time of year, but I'll post the details when I get all my financial records in order for taxes.
I'd like to keep blogging and hope that I'll find (make) the time to do it. My finances will most likely revolve around my business, so I hope I'll have interesting things to share.
Many of you know that we became debt free in 2009. We are now working on building our Fully Funded Emergency Fund. Our goal is $30,000 and right now we are at $22,500. There is a chance my husband will be getting a very large commission soon that could boost us right up to our goal - but I'm trying not to count my chickens before they hatch.
With all the money I made selling at craft shows over the holiday season you would think that we could have contributed more to our FFEF, but my husband received very little in commission over the past 9 months - so my extra income largely just replaced the commission we had thought he would make.
I think 2010 is going to be a great year! Look forward to sharing it with you all and catching up on what you have been doing.
:)
Sunday, November 29, 2009
Black Friday
Well, I kept our family tradition and went shopping on Black Friday with two of my sisters. Yes, we are crazy. We left the house at 4:45am! We stood in long lines. It was pouring rain. But somehow, we find this fun. I guess because we do it together.
Anyway, we did get some good deals. I got a really good laptop computer for my daughters (to share) for $299, a printer/copier/scanner for $25, an ipod nano for $120, and lots more. I'm basically done my shopping now.
I had budgeted $1,400 for Christmas gifts. When we left in the morning I brought almost $1,000. (I was afraid to bring more after my "lost $1,000 cash incident" in Florida), and we had to stop back at the house because I ran out of money!
What does everyone usually spend on gifts? I budgeted $200 each for each of my 3 daughters, $30 each for my parents, sisters, and in laws, and $15 each for my nieces and nephews. My husband and I have opted not to exchange this year.
Anyway, we shopped from 5am to 5pm - and I am just about finished. And it does feel good knowing that I shopped with CASH!
Monday, November 2, 2009
I WAS ALMOST NORMAL . . .
My it has been busy around here!
I have been super busy with a Craft Show every weekend, and it is only getting busier in the weeks to come when I often have more than 1 show a week - yikes! The shows have been going terrific and I am now averaging over $1,000 per show - yippee!
Unfortunately, we have not seen a great impact with all this extra cash. This is definitely in part because the busier I have been, the less I have paid attention to our money, and unmanaged money has a way of disappearing . . . The other reason is my husband's job. Times are tough there and he hasn't seen a commission in months. So, this extra money in a way has just replaced the commissions we are used to my husband receiving.
We even had to dip into our Emergency Fund this month because my husband mistakenly paid our mortgage payment (online) to our old mortgage company, instead of the new company that we refinanced with. This was a huge hassle and I'm hoping won't affect our credit negatively given that our new mortgage company didn't receive the payment on time. So, in the meantime I took $2,500 from our EF to pay the mortgage while we waited to get the money back from the other company. The check finally came, so I'm hoping to take a look at our budget for November and then transfer the $2,500 back to the EF. Ugh!
Anyway
, the reason that "I was almost normal" has to do with my oldest daughter's 13th birthday. She has been wanting a new cell phone and I started to think "well, it is a milestone birthday" and "she does study hard and get straight A's" and "all her friends have fancy cell phones", etc. I actually went as far as making the purchase of the phone with a 2 year contract to the tune of $70 a month!!! and as I was driving home I realized how crazy I was being. (Luckily I had checked and made sure that I had 30 days to return the phone with no charges or penalties.) So, I returned the phone without ever telling my daughter about it. And we ended up getting her plane tickets to fly to Florida to visit her grandparents over winter vacation. She was thrilled and we paid cash up front and won't be adding $70 a month to our bills for the next 10 plus years!
It really is hard to NOT do what everyone else is doing! Score 1 for Financial Peace! :)
I have been super busy with a Craft Show every weekend, and it is only getting busier in the weeks to come when I often have more than 1 show a week - yikes! The shows have been going terrific and I am now averaging over $1,000 per show - yippee!
Unfortunately, we have not seen a great impact with all this extra cash. This is definitely in part because the busier I have been, the less I have paid attention to our money, and unmanaged money has a way of disappearing . . . The other reason is my husband's job. Times are tough there and he hasn't seen a commission in months. So, this extra money in a way has just replaced the commissions we are used to my husband receiving.
We even had to dip into our Emergency Fund this month because my husband mistakenly paid our mortgage payment (online) to our old mortgage company, instead of the new company that we refinanced with. This was a huge hassle and I'm hoping won't affect our credit negatively given that our new mortgage company didn't receive the payment on time. So, in the meantime I took $2,500 from our EF to pay the mortgage while we waited to get the money back from the other company. The check finally came, so I'm hoping to take a look at our budget for November and then transfer the $2,500 back to the EF. Ugh!
Anyway
, the reason that "I was almost normal" has to do with my oldest daughter's 13th birthday. She has been wanting a new cell phone and I started to think "well, it is a milestone birthday" and "she does study hard and get straight A's" and "all her friends have fancy cell phones", etc. I actually went as far as making the purchase of the phone with a 2 year contract to the tune of $70 a month!!! and as I was driving home I realized how crazy I was being. (Luckily I had checked and made sure that I had 30 days to return the phone with no charges or penalties.) So, I returned the phone without ever telling my daughter about it. And we ended up getting her plane tickets to fly to Florida to visit her grandparents over winter vacation. She was thrilled and we paid cash up front and won't be adding $70 a month to our bills for the next 10 plus years!It really is hard to NOT do what everyone else is doing! Score 1 for Financial Peace! :)
Tuesday, September 29, 2009
Kill Something And Drag It Home!
Had another great craft show selling my pendants this past Saturday. I made $920! I'm so happy!
And I have another big show coming up this weekend. So, I'm feeling really good.
I got a call this morning from a woman in Florida that ordered a pendant and loved it and she wanted to rush order a bunch more. It felt great! It occurred to me this morning how much I really enjoy running this business.
I quit my job in 1996 when my first daughter was born so I could be a stay at home Mom. I love being a Mom and never had a desire to go back to work. I've never felt guilty about not earning an income. I know I've done a lot to contribute to the well being of my family. So, I am a little surprised by how great I feel about bringing home some extra cash.
It really does feel good to "kill something and drag it home" (as Dave Ramsey says)! :)
And I have another big show coming up this weekend. So, I'm feeling really good.
I got a call this morning from a woman in Florida that ordered a pendant and loved it and she wanted to rush order a bunch more. It felt great! It occurred to me this morning how much I really enjoy running this business.
I quit my job in 1996 when my first daughter was born so I could be a stay at home Mom. I love being a Mom and never had a desire to go back to work. I've never felt guilty about not earning an income. I know I've done a lot to contribute to the well being of my family. So, I am a little surprised by how great I feel about bringing home some extra cash.
It really does feel good to "kill something and drag it home" (as Dave Ramsey says)! :)
Wednesday, September 23, 2009
Emergency Funds Are Boring
I think that's the bottom line with our current financial situation.
I enjoyed the post 11 Ways To Spice Up Your Emergency Fund over at Get Rich Slowly, but mostly I was just happy to see someone point out what I've been feeling for the past several month - building an emergency fund just isn't exciting.
Although Baby Step 2 was a long journey to pay off all our debts, it came with a tremendous sense of accomplishment each month. It was like Debt was the enemy and I was pumped up to fight fight fight until I won.
The fire seems to have fizzled considerably.
In one way this is surprising to me because I am a worrier. And in these bad economic times, I would think I would feel more pressure to build that emergency fund up and up and up, but progress seems slow. My husbands company isn't doing well right now and his comissions have all but dried up. This leaves very little "extra" money in the budget to put towards the emergency fund.
Now, I have been doing really well selling my pendants at local craft shows. Last weekend I made $550, the weekend before I made $220, and the weekend before I made $1,050 (my highest so far!) - so, you would think that our emergency fund would be growing, but - not so much.
I haven't been great at tracking all the reasons it hasn't, but the few that come to mind are 1.) had to repair car for $250, 2.) husband went on a weekend trip for $400, 3.) I bought new stuff for our bathrooms for $600 (yikes!), 4.) I spent too much on back to school clothes for the kids, and probably lots more that I can't think of right now.
I hate to say it, but I think I have to spend a little time thinking about the reality that we could actually NEED our emergency fund in the not too distant future. I might need a little reality check and a little FEAR to make me behave with money right now. And the reality is that sales are waaaay down at my husband's company. Last quarter (Q1) was the worst ever. This quarter (Q2) isn't looking any better. Q2 ends in November and some of the people who work under my husband will probably be let go at that time. At the end of Q3 (February), if things don't get better, teams will probably be merged and my husband's position could be in jeopardy. He has already updated his resume . . .
Given that I am a worrier with a very big security gland - I need to realize how important our emergency fund is and get it pumped up fast!
We currently have $20,000 saved (not $22,000 as I previously posted as some funds didn't ever actually make it in there), and we need to work fast to get it up to $30,000 (or more).
Wish me luck!
I enjoyed the post 11 Ways To Spice Up Your Emergency Fund over at Get Rich Slowly, but mostly I was just happy to see someone point out what I've been feeling for the past several month - building an emergency fund just isn't exciting.
Although Baby Step 2 was a long journey to pay off all our debts, it came with a tremendous sense of accomplishment each month. It was like Debt was the enemy and I was pumped up to fight fight fight until I won.
The fire seems to have fizzled considerably.
In one way this is surprising to me because I am a worrier. And in these bad economic times, I would think I would feel more pressure to build that emergency fund up and up and up, but progress seems slow. My husbands company isn't doing well right now and his comissions have all but dried up. This leaves very little "extra" money in the budget to put towards the emergency fund.
Now, I have been doing really well selling my pendants at local craft shows. Last weekend I made $550, the weekend before I made $220, and the weekend before I made $1,050 (my highest so far!) - so, you would think that our emergency fund would be growing, but - not so much.
I haven't been great at tracking all the reasons it hasn't, but the few that come to mind are 1.) had to repair car for $250, 2.) husband went on a weekend trip for $400, 3.) I bought new stuff for our bathrooms for $600 (yikes!), 4.) I spent too much on back to school clothes for the kids, and probably lots more that I can't think of right now.
I hate to say it, but I think I have to spend a little time thinking about the reality that we could actually NEED our emergency fund in the not too distant future. I might need a little reality check and a little FEAR to make me behave with money right now. And the reality is that sales are waaaay down at my husband's company. Last quarter (Q1) was the worst ever. This quarter (Q2) isn't looking any better. Q2 ends in November and some of the people who work under my husband will probably be let go at that time. At the end of Q3 (February), if things don't get better, teams will probably be merged and my husband's position could be in jeopardy. He has already updated his resume . . .
Given that I am a worrier with a very big security gland - I need to realize how important our emergency fund is and get it pumped up fast!
We currently have $20,000 saved (not $22,000 as I previously posted as some funds didn't ever actually make it in there), and we need to work fast to get it up to $30,000 (or more).
Wish me luck!
Sunday, September 13, 2009
On The Rise
Earning and spending that is. Both on the rise.
That's not good.
Why is it that the more I earn, the more I spend? Obviously I want earning to go up and spending to go down. But how to get there . . .
And more importantly, I need to get some FOCUS. I need to focus on our finances again.
I have so enjoyed running my pendant business. It has been a lot of fun and I have been earning a lot of money. Both great things. But our emergency fund has not been going up the way it should be. We have been doing some small renovations around the house, ordering take out more and more - things that shouldn't be happening until the emergency fund is complete.
I had a feeling that it might be harder to stay motivated in Baby Step 3 than Baby Step 2 - but this is ridiculous.
I'm actually thinking about taking the Financial Peace University class again just to get my focus back.
That's not good.
Why is it that the more I earn, the more I spend? Obviously I want earning to go up and spending to go down. But how to get there . . .
And more importantly, I need to get some FOCUS. I need to focus on our finances again.
I have so enjoyed running my pendant business. It has been a lot of fun and I have been earning a lot of money. Both great things. But our emergency fund has not been going up the way it should be. We have been doing some small renovations around the house, ordering take out more and more - things that shouldn't be happening until the emergency fund is complete.
I had a feeling that it might be harder to stay motivated in Baby Step 3 than Baby Step 2 - but this is ridiculous.
I'm actually thinking about taking the Financial Peace University class again just to get my focus back.
Monday, August 31, 2009
Difficult Questions
I had a great craft show this past weekend. It was supposed to be both Saturday and Sunday, but Saturday was canceled because of the rain, so it was just on Sunday. And I managed to make $1,064 in sales! Yeay! I'm psyched about that.
I'm not so psyched about how much I spent on back to school clothes for the kids. I waited until the last minute and felt stressed - and just took them out and bought them what they wanted. I don't know the grand total, but it was definitely more than the $600 I budgeted.
Things have been very busy around here. I felt pressure getting ready for the craft show weekend, and the kids going back to school this week, and my parents are visiting from Florida and have been staying with me. My house is a mess - and things just basically feel out of control.
I REALLY need to de-clutter my house - especially the basement and the kid's clothes (that don't fit them anymore). I'm am struggling with the decision of whether to just give everything away or to save the stuff to try to sell it. My financial side obviously wants to sell the stuff. But I'm wondering if I will really get around to it. I basically have a craft show every Saturday between now and Christmas. I enjoy doing this and have made some good money at it - but I don't know if I'll have the time to do this and organize and sell all our junk.
The other decision I am struggling with is the kid's activities. My husband really wants all 3 of our kids to take piano lessons (and for our youngest to also take voice lessons). My middle daughter has an interest in theatre (she's been in several plays) and could possibly benefit from some voice lessons too.
My oldest enjoys playing piano and will happily take the lessons.
My middle daughter does not want piano or voice lessons at all.
My youngest daughter would like voice lessons, but not piano.
Piano lessons in my area are $23 for a half hour lesson.
A combo piano/voice lesson is $30 for a half hour lesson.
So, for 2 combo lessons and 1 piano lesson each week would be $83, or over $300 a month!
If I use the same teacher, I could possibly book a full hour and have each of the girls take 20 minutes of the lesson (not sure if this is possible, but it might be). This would cost me between $53 and $60 a week, or $240+ a month.
But I'm not even sure that $240 a month really fits into our budget. We still don't have our fully funded emergency fund (and it looks like it will take us almost to the end of 2010 to get it alll the way up to $30,000, at least on paper). And we haven't even begun saving for college - and my oldest is only 6 years away from starting college!
I dread discussing this with my husband. He is having a really bad time at work right now. Sales are down because of the economy - and pressure is high. I don't think he can really handle a realistic look at our finances right now. Even though I think we have been doing really well, he tends to look at the negatives - like how we will both need new cars soon, etc.
Yet I know he feels strongly about the girls having piano lessons.
I guess they don't have to start right at the beginning of September. I can wait a little till things settle down at his work - and then discuss it with him.
I hate to think that we can't afford this for our kids - but I bet Suze Orman would say "denied" if I called in to her "Can I Afford It" segment.
Oh - it's hard to know what to do.
I'm not so psyched about how much I spent on back to school clothes for the kids. I waited until the last minute and felt stressed - and just took them out and bought them what they wanted. I don't know the grand total, but it was definitely more than the $600 I budgeted.
Things have been very busy around here. I felt pressure getting ready for the craft show weekend, and the kids going back to school this week, and my parents are visiting from Florida and have been staying with me. My house is a mess - and things just basically feel out of control.
I REALLY need to de-clutter my house - especially the basement and the kid's clothes (that don't fit them anymore). I'm am struggling with the decision of whether to just give everything away or to save the stuff to try to sell it. My financial side obviously wants to sell the stuff. But I'm wondering if I will really get around to it. I basically have a craft show every Saturday between now and Christmas. I enjoy doing this and have made some good money at it - but I don't know if I'll have the time to do this and organize and sell all our junk.
The other decision I am struggling with is the kid's activities. My husband really wants all 3 of our kids to take piano lessons (and for our youngest to also take voice lessons). My middle daughter has an interest in theatre (she's been in several plays) and could possibly benefit from some voice lessons too.
My oldest enjoys playing piano and will happily take the lessons.
My middle daughter does not want piano or voice lessons at all.
My youngest daughter would like voice lessons, but not piano.
Piano lessons in my area are $23 for a half hour lesson.
A combo piano/voice lesson is $30 for a half hour lesson.
So, for 2 combo lessons and 1 piano lesson each week would be $83, or over $300 a month!
If I use the same teacher, I could possibly book a full hour and have each of the girls take 20 minutes of the lesson (not sure if this is possible, but it might be). This would cost me between $53 and $60 a week, or $240+ a month.
But I'm not even sure that $240 a month really fits into our budget. We still don't have our fully funded emergency fund (and it looks like it will take us almost to the end of 2010 to get it alll the way up to $30,000, at least on paper). And we haven't even begun saving for college - and my oldest is only 6 years away from starting college!
I dread discussing this with my husband. He is having a really bad time at work right now. Sales are down because of the economy - and pressure is high. I don't think he can really handle a realistic look at our finances right now. Even though I think we have been doing really well, he tends to look at the negatives - like how we will both need new cars soon, etc.
Yet I know he feels strongly about the girls having piano lessons.
I guess they don't have to start right at the beginning of September. I can wait a little till things settle down at his work - and then discuss it with him.
I hate to think that we can't afford this for our kids - but I bet Suze Orman would say "denied" if I called in to her "Can I Afford It" segment.
Oh - it's hard to know what to do.
Wednesday, August 26, 2009
Off Budget
Well, I can't say that my cash envelopes for August have lasted. As of today I am officially out of cash and there is almost a week left in the month - and I need to buy stuff for the kids for back to school.
Let's just say that we have been less than gazelle intense lately.
I understand losing a little steam over time, but I wish we could get the Emergency Fund fully funded up to $30,000. Only around $22,000 right now.
I do have a ton of craft shows coming up, so hopefully I'll be able to use some of that cash to beef up the FFEF.
Just wanted to check in and let everyone know we're still here.
Let's just say that we have been less than gazelle intense lately.
I understand losing a little steam over time, but I wish we could get the Emergency Fund fully funded up to $30,000. Only around $22,000 right now.
I do have a ton of craft shows coming up, so hopefully I'll be able to use some of that cash to beef up the FFEF.
Just wanted to check in and let everyone know we're still here.
Saturday, August 8, 2009
August 2009 Budget
Aug-09
AUTO-Excise Tax $0
AUTO-BR Gas $160
AUTO-Insurance $130
AUTO-Maint $0
CASH-Clothing $600
CASH-Dining Out $180
CASH-JR Gas $120
CASH-Gifts $0
CASH-Grocery $500
CASH-Kids Allowc $62
CASH-Parties $20
CASH-Schl Lunch $0
CASH-Spending $200
HOME-Cable/Ph $160
HOME-Electric $115
HOME-Mortgage $2,345
HOME-Oil $0
HOME-Water $0
HOME-Trash $0
KIDS-Bball $0
KIDS-Misc. $0
KIDS-Piano $264
MISC. $0
PERS-Cell Ph $0
PERS-Contacts $99
PERS-Life Ins. $59
PERS-Newspap $12
PERS-BR Rx1 $0
PERS-BR Rx2 $0
PERS-Cat Rx $0
PERS-Braces $200
PERS-BR Sports $0
PERS-Vacation $0
TRNSF-To Sav $2,300
TOTAL $7,526
INCOME August
1st Paycheck $2,261
1st Commission $3,090
15th Paycheck $2,261
Church Pay $100
Jewelry Pay $50
Other $0
Trnsf fr Savings $0
TOTAL $7,762
CASH FLOW August
Beginning Balance $0
+ Income $7,762
Subtotal $7,762
- Expenses $7,526
Subtotal $236
Save Fr Nxt Mnth $236
Ending Balance $0
SAVINGS FLOW August
Beginning Balance $20,381
+ Trnsf to Savings $2,300
Subtotal $22,681
- Trnsf fr Savings $0
Subtotal $22,681
Ending Balance $22,681
AUTO-Excise Tax $0
AUTO-BR Gas $160
AUTO-Insurance $130
AUTO-Maint $0
CASH-Clothing $600
CASH-Dining Out $180
CASH-JR Gas $120
CASH-Gifts $0
CASH-Grocery $500
CASH-Kids Allowc $62
CASH-Parties $20
CASH-Schl Lunch $0
CASH-Spending $200
HOME-Cable/Ph $160
HOME-Electric $115
HOME-Mortgage $2,345
HOME-Oil $0
HOME-Water $0
HOME-Trash $0
KIDS-Bball $0
KIDS-Misc. $0
KIDS-Piano $264
MISC. $0
PERS-Cell Ph $0
PERS-Contacts $99
PERS-Life Ins. $59
PERS-Newspap $12
PERS-BR Rx1 $0
PERS-BR Rx2 $0
PERS-Cat Rx $0
PERS-Braces $200
PERS-BR Sports $0
PERS-Vacation $0
TRNSF-To Sav $2,300
TOTAL $7,526
INCOME August
1st Paycheck $2,261
1st Commission $3,090
15th Paycheck $2,261
Church Pay $100
Jewelry Pay $50
Other $0
Trnsf fr Savings $0
TOTAL $7,762
CASH FLOW August
Beginning Balance $0
+ Income $7,762
Subtotal $7,762
- Expenses $7,526
Subtotal $236
Save Fr Nxt Mnth $236
Ending Balance $0
SAVINGS FLOW August
Beginning Balance $20,381
+ Trnsf to Savings $2,300
Subtotal $22,681
- Trnsf fr Savings $0
Subtotal $22,681
Ending Balance $22,681
New 2 Year Budget
Well, we bought a new computer and were able to upload everything from the old computer from an external hard drive - but not before I redid my 2 year budget spreadsheet. I was just too impatient and couldn't wait!
Turns out it was a good exercise to redo the budget from scratch. I feel a new sense of gazelle and calm at the same time. We are in pretty good shape and are moving forward every month. I also saved it to google docs so that it won't be lost again and I can access it from anywhere. :)
Turns out it was a good exercise to redo the budget from scratch. I feel a new sense of gazelle and calm at the same time. We are in pretty good shape and are moving forward every month. I also saved it to google docs so that it won't be lost again and I can access it from anywhere. :)
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