|
Post by ohblondie on Apr 4, 2015 8:34:12 GMT -5
I was going to say I don't have a budget, but I really do!
I have direct deposit of my paycheck so I designate a certain amount to go in one account that has a debit card attached to it and a certain amount to go in another account, and the rest I get in a check.
I have all of my bills listed by due date on a big calendar.
the amount that goes into my account with a debit card is the grocery money and gas money.since I don't drive much, is my bus money.
I take my two pay checks and deposit them at the beginning of the month. I pay the minimum on each card. anything that's left over i use to make a larger payment on the card with the smallest balance. Once I paid off the lowest balance card I went to the next lowest and so forth. I will have two paid off cards this month. By Sept I should be almost done.
On the calender I keep track of other bills like the water bill and garbage bill. And property taxes. So I can plan ahead and not get broadsided.
It is not a perfect system but it works for me. I just want to get out from under this stupid debt and get some savings so I can some day retire
|
|
|
Post by larataylor on Apr 4, 2015 9:49:50 GMT -5
We made it through the winter without freezing (or going hungry). I would love to have a wood stove, because there is so much wood on this property, and I just give it away and have no way to burn it to warm the house. I was offered a wood stove once before we moved, but it wasn't possible to take it at that point, and we had a fireplace there. The drawbacks, besides the initial cost, would be that it would take up room and create more mess.
We live in a culture in which people go out and spend money to have fun. A few weeks ago, I was playing old songs on YouTube, and it just hit me hard that I *need* music in my life … I need to dance, I need to have friends here. If I had a way to play music, it wouldn't cost much at all … maybe a bottle of wine. I totally need some happy-making FUN. I think some fun is actually a necessity.
|
|
|
Post by ohblondie on Apr 4, 2015 10:50:31 GMT -5
Yes larataylor..... our culture is a spend spend spend one. Once I put money in my acct for groceries. .... that is it. My forced allowance. Once in awhile I buy a bunch of discount movie tickets. But we have Netflix for movie nights at home. Not that I can have company over yet. I would ditch cable in a heartbeat if hubby wad not a tv addict.
|
|
Deleted
Joined: January 1970
Posts: 0
|
Post by Deleted on Apr 5, 2015 1:58:43 GMT -5
I'm a huge fan of YNAB (You Need a Budget) You can use their method without buying the software, but I have more than saved the cost of the software by using it. A lot of people swear by Dave Ramsey's programme Again you can get an idea of the principles without buying the programme. He says, pay off the smallest card,debt first and then the next smallest. He says this gives a 'snowball' effect as you can use the savings from paying off the smaller debts towards the larger ones. Good luck! The peace of mind that comes from getting control of your finances and getting out of debt is priceless! Although, when you start, sometimes it seems to get worse before it gets better. Also, although Dave Ramsey advocates using a cash/envelope system I couldn't cope with that. I do better with a budget and cards and now I use my remaining cards sensibly, paying them off each month. Cash runs through my fingers like water. So find out what works for you. Apart from that, just what everyone else has said about writing things down. You have to have your income and expenditure down in black and white before you can get control of it.
|
|
Deleted
Joined: January 1970
Posts: 0
|
Post by Deleted on Apr 5, 2015 2:24:28 GMT -5
I forgot - one of my financial 'epiphanies' was realising that these 'bogoff' or two for three, or whatever, offers rarely save money. I was just spending twice as much or more than I needed to. And never actually seeing the 'savings' in hard cash. Basically I was borrowing money from this week's or month's budget but never paying it back. Then I would run out of money and wonder where it had gone. This is even worse if you are buying on a credit card.
And there are always offers, they come round again and again. It's never a once only deal. So if you have an amount for groceries for the week/month, only buy what you actually need and will use right away.
Maybe when you are in control and out of debt you can get the offers if you want to and they fit your budget. But until then only get more than you need if you can pay for it out of the current budget.
Meanwhile, maybe you have lots of supplies, household stuff, freezer/storecupboard stuff already in the house from previous spends. Use them up before buying more. This really works. It also helps with the clutter. Obviously if food is out of date don't eat it, throw it away!
|
|
|
Post by papermoon on Apr 5, 2015 3:29:13 GMT -5
Two excellent books: "How to Get Out of Debt, Stay Out of Debt, and Live Prosperously" by Jerrold Mundis "Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence: Revised and Updated for the 21st Century" by Vicki Robin Plus three excellent websites: Wise Bread > www.wisebread.com/The Simple Dollar > www.thesimpledollar.com/Get Rich Slowly > www.getrichslowly.org/blog/
|
|
|
Post by ohblondie on Apr 6, 2015 11:38:48 GMT -5
I also like David Ramsey. I tried to coordinate a class in church but we never got enough people. THere are snowball calculators on the web that you can find and use for free. I just looked up each debt I had, listed total amount due, min payment due and the interest rate (what an eye opener. I created a chart/list and have just used that to attack my debt. I have cut back on the food we buy - I have a cupboard full and a freezer full and i was throwing out uneaten food that spoiled. I am also cutting out junk food. One plus is that my kids are older and sometimes they are working and are not home for dinner. I go to my weekly church pot luck dinner - that is the best meal of the week. I am also not a drinker - so if I go out I usually get club soda or water. I do still leave a tip! I also take advantage of the six month interest free offers on various credit cards, like Home Depot. Dave Ramsey does not like that - but I am diligent about paying those off and not incurring interest. Once I missed it and when I saw the amount in interest that I was charged - well, let's say I made sure it NEVER Happened again!! Now that the end is in sight - it is easier to buckle down toward that goal. Why can't I translate this same plan of action toward my squalor? ?
|
|
|
Post by Jannie on Apr 6, 2015 11:54:51 GMT -5
I once went to a Professional Organizer. She was giving a free lecture, to drum up business. I remember she said, every time she organized a messy house, she ALWAYS found money. I thought to myself- not me. I'm bad with money, deeply in debt, living from paycheck to paycheck, I'm so broke but I know there's no money in my house. I never forgot her saying this. Well, a few weeks ago I decided to clean out my front hall closet. I found an old leather purse that was so shabby I no longer use it and it's not even worth donating.Nobody wants an old purse that's so raggedy the strap is gone, the zipper is broken, it looks like cats chewed it. I had decided to chuck it, but I looked inside. A sealed envelope. Inside was $3500 in savings bonds dated 1997-1998. No advice here, just a funny story.
|
|
|
Post by gifted on Apr 6, 2015 13:18:02 GMT -5
Lara, that's exactly where my troubles started: I gave my credit card info to the propane company. They wanted cash on delivery, and I was underemployed...my card took a beating that winter, and didn't recover for years - because I was making payments that barely covered the interest, so I couldn't get the balance to go down. You're wise to stay out of that trap! ETA: installing a wood stove is what I'd recommend, because this saves us a huge amount of money every winter. My DH typically has a 3 week layoff over the Christmas holidays every year, while the plant is in shut-down/inventory. He uses this time to find free wood (storm damaged) or chop wood he's already collected (like when the Park's Dept. cut down all the overgrowth, and the worker told him he could take what he wanted, he made 4 trips and had a huge pile of old limbs) he was feeling discouraged last year, and I pointed out that the wood he'd cut had a dollar value equal to what he would have made by working his paid job! My son lived in upstate New York, and installed a wood furnace, and he had his pre-existing propane furnace act as a back up. The wood furnace paid for itself in one or two seasons. (He bought his wood. He did have trouble finding someone to hook it up for him, I think he may finally just installed it himself.) I don't know if this is an option for you or not.
|
|
|
Post by sauberkite on Apr 7, 2015 2:12:57 GMT -5
If making a big budget is too intimidating, just start with a food budget. If you use a credit or debit card to shop it's easy to add up how much you spend in a month. And then cut a comfortable percentage off of that to make your new food budget. Take that money out of the bank in cash when you get paid and use it to buy food. When I was a poor student I did this with food, fun and gasoline. I kept the money in three jars. I had it in all ten dollar bills whenever possible. It's a great visual. Toward the end of the month I walked a lot, stayed home on Saturdays, ate eggs and saved money.
My husband keeps a price book on excel. He has recorded every purchase for years now. This way we know a good price when we see it, and generally when products will go on sale because the supermarkets aren't very creative. This is way too tedious for me but I'm sure you can find something online that does the same.
|
|
|
Post by sauberkite on Apr 7, 2015 2:29:21 GMT -5
You can also call your lenders, card companies, landlord, insurance, utilities etc and change the due dates so they are all due at the same time. Or in another way that makes more sense for you. That way you don't have to constantly worry that you missed something. Or be surprised unpleasantly. Automatic bill paying is also great. At least your credit cards should all be set to make the minimum payment each month automatically. You can pay more on top later but you'll never risk a late payment.
|
|
|
Post by joyinvirginia on Apr 7, 2015 7:02:48 GMT -5
These are all great ideas! Here is something I heard years ago: pay yourself first. That is, have a savings account and put money in there every month, even if it's a little. I started my first job with a credit union thru work, and signed up for them to take eleven dollars out of my paycheck every time. Eleven dollars doesn't sound like much, but it adds up if you don't touch it. The amount increased as I made more money, and I switched jobs and credit unions. Over the years I have used credit union savings account money for splurge things like vacation, or help with down payment for big ticket items like car or house. Otherwise, I don't touch it. right now my car payment comes out of money going to the credit union every pay period, the remaining money goes back into savings Account. another good financial writer I really like is Michelle Singletary, she writes a column The Color of Money for the Washington Post and you can read it for free on their website. She focuses on things like making sensible decisions on picking a college, and family things like discussing finances before marriage and caring for elderly parents, how all those impact your financial health.
|
|
|
Post by desi on Apr 9, 2015 2:48:13 GMT -5
Love this thread!
I wonder if there is a support thread for dealing with financial issues, anxiety issues regarding money and bills etc? (I could use one...)
|
|
|
Post by ohblondie on Apr 9, 2015 11:41:05 GMT -5
My anxiety all lies in thinking about what I need to do. then worrying and over thinking it. then planning and re-plnning and making yet another plan.
Once I actually just do it - or just do something - I feel much better!
wORRY BREEDS MORE WORRY......
|
|
|
Post by larataylor on Apr 12, 2015 10:14:53 GMT -5
desi - my money issues are terrible, and severe marriage issues are involved. I think I could use a thread on this, too. I was completely debt-free when I got married. Then, with buying a house, taking on DH debt, and other things, we acquired a lot of debt together. After a few years, I got really organized--with extreme frugality as well as inheriting some money, I got us completely debt-free, including paying off the mortgage. Then dreadful things happened, and I was so stressed that my depression became severe. I turned things over to DH. I have never been able to get control back. Now we are more in debt than ever, and I am on a roller coaster in the dark. I think I will never have control of my finances again unless I separate from him--we have more debt than ever before, all my assets are gone, and I'm a lot older. It's quite scary.
|
|