Filing and Organizing Financial Paperwork

Since it is January - a great month for organization - I thought I would write a little bit about the various systems I use, (and have used in the past,) for organizing all that financial... stuff. I'm not saying that what I do is the best, by any means. "Different strokes for different folks," and what works for me may not work for anyone else. However, someone might see an idea here that will spark an idea of their own. So, here you go:

I pay all of my bills through my online banking system. I usually do it during a few minutes of my lunch hour, so, when bills come in the house, they get opened, glanced at, then put in my work bag. This happens in pretty much one movement, no letting them pile up on a counter, they go straight into the bag! Then, the next day I will pop on my computer at lunch time and go to my bank's web site. Many of my bills I have auto-paid. I set them up in January and then they just pay out automatically each month. This works great for bills that are the same amount and due at the same time each month; when I had car loans and credit card debt they were all set up this way. Now it is mostly my mortgage and my utility bills that are on a "budget plan" (so they are the same each month,) that are on auto-pay. I still like to sign into my bank's site though and make sure everything is going out the way it should. It's just habit. However, the beauty of this is that even if I am on vacation or a statement is lost in the mail, the bills get paid on time. It is one of the reasons my credit score is good - because I haven't had a late bill in years.

Some of my other bills are more random, either in when they arrive or the amount due. Trash, water, insurance - they are all quarterly or semiannually. My cell phone comes at the same time, never seems to be quite the same amount each month. I don't have an automatic bill pay for these, instead I create a single payment each time a statement comes in.

After I verify a bill has been paid, then I file the statement in my work bag. I have a folder in it that contains all the statements from the prior month. This is when I glance and make sure that everything seems normal. When I saw my cell phone took too big of a jump up over the course of a month, I spotted it right away, because I have the prior month's statement at my fingertips. So, the new month goes in the Statements folder and the old one goes in a To Be Filed folder.

So that is the basic set up for simple bills and things, here's what I do with the old statements...

Talk about low-tech, I have two cardboard boxes for filing. One is marked with the present year, (I just made my 2010 one a few days ago,) and one is labeled Taxes. I use envelope boxes I get from work - they are sort of like shoe boxes, but wider and and flatter. Any receipt, statement or other piece of paper that has to do with my tax return goes in the Taxes box. Everything else gets thrown in the year box.

I have gone through a couple of different systems for filing statements and receipts. I actually originally started with the shoe box system when I read about it in a magazine years and years ago. Then I got more sophisticated and started keeping files in a locked file cabinet. This worked fairly well, except that while I had no problem adding something new to a file, I wasn't very good at taking things out. Soon my Auto, Credit Card, Insurance and other folders were filled to the brim. For some reason (laziness, perhaps) sorting out the cabinet and removing the previous year's statements just didn't really happen.

Then I became pretty eco-conscious and decided to try to go paper free. I kept one month of statements as I do now, but older statements and receipts were all shredded and recycled. I felt good about the planet, but lousy about my pocketbook when not having a receipt cost me a couple hundred bucks. That's when I went back to my shoe box filing system.

Checking my bank account online on a regular basis means I see instantly if there is any strange charges or odd activity in the account, keeping a paper trail of receipts and statements helps with taxes and returns. It takes up very little space and is super easy to use.

Not all my financial documents are in envelope and shoe boxes, however. Important documents are kept in a fireproof safe in my basement. Documents I update regularly like my budget, are kept in my computer in spreadsheet format. Now in my file cabinet I keep more "timeless" information - taxes, important paperwork on my home and other purchases, generic account information, things like that. It is no longer stuffed to the gills with 3 years of statements from every bill I have ever gotten!

What do you do with all your financial paperwork?



Photo by: SpecialKRB
via flickr

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Frugally and Naturally Fighting Seasonal Affective Disorder (SAD)

If you live in a part of the world where you have dramatic shifts in climate during the seasons, you are probably familiar with Seasonal Affective Disorder, or SAD. Here in Michigan I know a number of people who are affected by it, some severely. In those cases it goes beyond a temporary case of the "winter blues" or "fall doldrums," it is a level of depression that can affect their jobs, relationships and overall health. I've been lucky. In the past I have not been very affected by season change, in fact, I love fall and winter, so I look forward to it. This year, however, has been a little different.

SAD is caused by a number of things, but one of the biggest causers is the change in daylight. Here in the Midwest our days are getting shorter at a fairly rapid pace. The lack of natural light is hard on the system. Personally, I am having a problem with the lack of light in the morning. Now when I talk about struggling with these fall mornings, most of my coworkers roll their eyes and make comments about me not being a morning person, but that isn't what is going on at all. To explain the difference, let me give you a little history:

I've worked at my present job for 10 years now. For the last 8 or so, I have worked a slightly odd schedule. For three or four years I worked 11:00 a.m. to 8:00 p.m. and for the last few I have worked 10:00 to 7:00 p.m.. Now, I like these schedules. In fact, if I worked at home and could set my own hours I would probably work on the 11 to 8 shift, because that is when I am the most productive. However, I wasn't doing that shift because I hated mornings, nor was I sleeping in until just before I went to work. I liked these schedules precisely because they allowed me to exercise in the morning or do things around the house. In May, my boss eliminated the 10 to 7 shift I was on and the last hold outs, a coworker and I, shifted to 9:00 a.m. to 6:00 p.m.. And you know what? It has been fine. I've had absolutely no problems all summer with the new schedule. My only minor complaint is that I miss extra hour at the end of the day when things were quiet to get things done in the office - but the mornings were fine.

Then, mid October that all changed...

At first I thought my difficulties with mornings had to do with my busy schedule, but it didn't feel that way. It felt bigger, darker somehow. I don't really have good words to describe this, but when the alarm went off in the morning, it felt wrong to get up - unnatural. I felt like I was struggling underwater, fighting to get up and get out of bed. It was starting to affect my mood.

After my schedule eased up, but the trouble with the mornings didn't, I realized what was going on. Just a couple of months ago, getting up hadn't been a problem at all. Now it was like climbing a cliff. It had to be because of the seasonal change.

Now there are fairly expensive ways you can combat this - you can purchase sunlamps and light boards to sit by. I also found a fabulous clock that has a lamp in it and it slowly lights up the room and wakes you with soft melodic chimes. It is fabulous and very cool... and over $200. That is just silly, when a simple digital clock costs less than $10 and I can use my cell phone as an alarm for free. Another option is to do what many older Michigan residents do - just move to a warmer state for a few months! None of these are really in my budget though, so I had to find alternatives. I really didn't like the way I was feeling and felt I had to do something about it.

Daylight savings was last weekend and that helps some. This morning when I got up, the sky was a pale silvery gray, but there was light, and that was great to see. But let's face it, that is only a temporary fix, the days are going to continue to get shorter and January and February are long cold, dark months here in Michigan. Here are my solutions:

Get Enough Rest at Night - Okay, this might seem obvious, but remember, my problems with mornings do not stem from lack of sleep. However, I don't want to compound my problems by not getting enough rest. So, I am making sure I am in bed by a reasonable time each night.

Getting Up Earlier - This sounds like the opposite of what I just said, doesn't it? Here's the thing, I'm trying to get to bed in time to get 7-8 hours of good sleep, while at the same time planning on getting up a half hour earlier than I was. I am doing it for two reasons: The first is that I am finding it is much better for my body and mental health if I get up a little earlier and allow myself time to slowly wake up, than it is hitting the snooze button and getting an extra 8 (or 16, or 24, or 32) minutes of bad sleep and then having to rush to make it out the door in time. The other reason I am getting up earlier is -

Exercise - Honestly, I hate exercise, but the effects are tremendous. I am getting up and doing 15 minutes of yoga stretches and 10 minutes of light aerobics. Nothing too strenuous, just enough to get the blood flowing and the brain synapses firing. Then I am doing another (more active) hour at night. I've been at this a week now and I already feel so, so much better. I used to take yoga classes regularly, but when life got busy and I was stressed, I stopped going. Isn't that always the way? When we get stressed and life is rotten, we stop doing the exact things that are best for us, like exercise and eating well - just when we need them the most! Which brings me to -

Eating Well - I have been trying to balance out my meals a little better lately. I always try to eat well, but I tend to go on kicks where I ate the same kinds of foods a lot. Currently that "kick" is having a small portion of some low fat meat and two veggies. One of the big problems with this time of year is the heavy amounts of food and calorie laden dishes. I'm trying to improve my overall health by eating well and getting a variety of nutrients. While there are some different studies showing the value of vitamins in fighting SAD, I figure whatever I can do to improve my health will help!

Drinking Water - Lots of it. In part this is because I have been exercising more, but also this time of year is very hard on skin. I have very dry skin and with being inside in artificial heat, my lips and skin can crack. Lots of water helps. It also is a good beverage for the evening, because unlike many other beverages (pop, juice, alcohol) water doesn't effect sleep behavior. That doesn't mean I am cutting out my hot chocolate or hot cider with cinnamon, it just means I am trying to have them early enough that the sugar and caffeine have time to get through my body before bedtime, and I am washing everything down with big glasses of water.

Getting Sunlight - This has not been easy the past couple of weeks, as we've had a lot of rain and cloudy weather, but when I can, I am opening my blinds and letting in the sun. The best place for me to do this is work, where my office gets quite a bit of light in the morning. Since Seasonal Affective Disorder has to do with the lower amount of natural light, I'm trying to soak up the sunlight when I can.

Turning on the Lights in the Morning - Yes, frugal me is actually turning on lights! I am such a Scrooge when it comes to my electricity bill, but not when it comes to my mental health. I am turning on the lights in the morning as I move about the house a lot more than I have in the past. It is a psychological thing, but it helps.

Appreciating the Season - The final thing I am doing is trying to take time to notice and appreciate these beautiful fall season. The leaves are mostly down now, but fall is a beautiful time of year. Winter is too. I'm trying to remind myself to be grateful for the changing days.

How about you? Do you have Seasonal Affective Disorder or know someone who does? What tips can you give? As I said, I've been making these small changes over the last week or so and really noticed a difference, what works for you?



Photo by: gato-gato-gato
via flickr

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The Automatic Budget

I haven't been writing about my budget a lot lately and I realized it's because I don't think about it as much as I once did. It took me over a year, but finally my budget is almost completely automatic! It is absolutely fabulous.

Let's take a look at some of my monthly expenses and how I am taking care of them each month:

Mortgages - I have two properties, each with two loans. All of these payments are taken care of every month with online billing.

Life and Auto Insurance - Since my home insurance is paid out of escrow, these are the only insurance costs I have. Both have odd billing dates - the auto is semiannually and the life is quarterly. Basically what I did was add up the cost of both over the course of the year and then divide by 12. Each month that amount is set aside in a special online savings account I have just for Insurance. When a bill comes in, I just transfer over the money from the account and pay it online.

Utilities are a bit different...

Gas at the house, and both electric and gas at the cabin, are on budget plan billing so each month I owe the same amount. I have online billing just pay those three bills automatically. Electric at the house is one of the few checks I actually cut each month (though, of course, I do it through online billing.) I did it this way because this was one area where I was really working hard to decrease costs. I think I have pretty much gotten it as low as it is going to go, so I am considering doing the budget plan for this one too. It is so nice to have a set number each month - then I can just schedule to pay it and it goes.

Cell phone - My cell phone bill is one of those ever changing bills. I have no idea why. Fortunately, it is almost always within $5 or so of what I plan on, but it is off enough that I cut this bill separately. Trash and water I treat just like insurance - I estimate the amount I will spend for a full year, divide by 12, then have a little bit put aside each month.

In fact, that is how I handle all the rest of my bills. I have a car registration fund, car maintenance, Christmas, and emergency funds - all which take out a little each month. I hate getting surprised by bills, so this way I am ready when the time comes.

For the two things I spend the money on the most - Groceries and Home Improvement, I have gone to the envelope system. I take $125 for groceries and $100 for home improvement out in cash and keep them in separate places in my wallet. Since doing it this way, I almost never go over, and usually I actually have money left over. The only other two things in my budget that are slightly unpredictable are Entertainment/ Dining out and Buying gas for my car. Since I started focusing on trying to only dine out with other people and making it a social occasion, I have really cut down my bill. I still miss dining alone, but having the extra money in my pocket is worth it. As for auto fuel, I always come in under budget - maybe because my budget is set too high. I still expect gas prices to rise.

Essentially, the way my life is structured now, I know that unless I am dining out - any time I use my debit card I am outside of my budget. This knowledge has scaled down my spending a lot. When I do use the card, I know why I am doing it and how much I have to spend. Same thing with cash that doesn't come out of the grocery or home improvement funds. Doing all this may sound like a lot of work, but it means that I don't think about it during the month. I just stay on track and everything else takes care of itself.


Photo by: massdistraction
via flickr

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The Long Route to Fixing Up Free

I mentioned in a post last week that my computer died. I do now have a computer running again at home, but the lengths I went through to to make it happen, while spending as little as possible, are pretty amusing. Talk about stretching frugality to the limit!

A few years back I had a lovely iBook, which unfortunately died. Apparently there was a known defect with it (there might have even been a recall on the part that I didn't know about) and mine died about 8 months after the extended warranty that Apple provided for it ended. To fix it, it would have cost me between $400 - $500, which really wasn't worth it. If I had had that kind of money, it would have made sense to just save up for a new one instead, however, this was during the time of the whole marriage separation, and the last thing I had was extra cash laying around.

So, for the time being I was using my computer at work. I'd drive into the office on Sunday afternoon and check email and take care of all my online business. My boss, running into me one afternoon, took pity on my and offered me a "permanent loan" on an old PC he had laying around in a closet. I could use it as long and I wanted and when I was done, I was to give it back to him so he could donate it.

Well, on September 12th, it died. The hard drive had been going for quite awhile, but this time it locked up, shut itself off and would not turn on again. I knew it was probably heading down that road, since it had been making weird noises for awhile, so I hadn't kept anything valuable on it. Of course, naturally it died the same time my cell phone did, plunging me into a world with the inability to call or email anyone. However, I wasn't completely out of luck, as I had another computer standing by...

A good friend of mine, knowing I was using a dying, borrowed PC, offered me his old iMac. There was just one problem. It only had an internal cable modem, and I used the neighborhood wireless. So, I chatted with a buddy of mine in the tech team here at work about what I could do. He suggested a usb wireless adapter antenna. There are a lot of them out there, and if I had a PC, they are pretty cheap. But since I had a Mac, I wanted one that said specifically that it was Mac compatible. After a lot of searching, comparing of prices and brands, I finally decided on one I found on NewEgg for about $50.

The night my phone died, I decided to try out my new antenna - and that is when I ran into a problem. It needed OS X, and I had OS 9. Sigh.... back to the drawing board.

The following Monday I went into the office and talked with my tech buddy again and asked him about getting a copy of OS X. (I was starting to wonder how much my "free" computer was going to cost me. ) Good news! My office (where we all use Apple computers) had a few copies of OS X.3 laying around - and I could have one - for free! Sweet! So that night I went home, downloaded the new software and the software needed for the antenna....

and it still didn't work. It seemed to me that the problem was the iMac itself. It's curvy plastic body, while looking cool, seemed to have a design flaw. The usb didn't connect very well. The next day, I went back to the tech team. By this time the whole team knew about my mission to get a computer running as inexpensively as possible. The tech director said he had had the same problem with the iMac and his son's iPod, and he dug through a box of pieces and parts and handed me an extension cable. It was maybe a foot long, and looked like it would do the trick... except, it didn't.

That night I went to the computer, excited to try it with the new cable... and to my vast frustration, the cable didn't fit. The male end plugged in nicely to my computer, but the female end had some kind of wacky bump on it. It wasn't a traditional usb fitting - even though at first glance it looked like one. I tried a few other usb ends into it - my keyboard and mouse - and nothing fit, including my antenna.

I admit, I did have a bit of amusement watching the director of technology go through the exact line of thought I did, when I handed it back to him the next morning. He too tried plugging a bunch of things into it and, for a moment, looked equally confused. He solved the mystery when he found out that the cable worked beautifully with some of the office keyboards. Apparently they have a special connection. The tech director wandered off into "tech land" (the back of the office where there are tons of dead and dying computers and computer parts) and emerged awhile later with a screaming bright aqua blue 15' cable usb extension, with standard ends. He gave it to me and said I could have it on "permanent loan." A lot more cable that I needed, but by borrowing it I could at least figure if the problem with the antenna really was that it wasn't plugging in properly. I still wasn't 100% sure this was the root of my problem.

I was right, it wasn't. The cable worked great and everything fit where it was supposed to, but the computer still didn't acknowledge the wireless. I tried my limited store of computer knowledge, then gave up. The next day I brought it into work.

My tech buddy had it on his desk for two days. He updated all the software and then found some drivers that could be downloaded for the antenna. I did still need the cable, that had been a problem, just not the only problem. He also put in a little extra memory he had taken out of his wife's computer when she upgraded. He found that the battery is pretty dead and the on/off switch is a bit wonky, but other than that - it lives! Taking it home, I held my breath plugging it in. I had my coworker's cell number in case there were problems, but I hoped it wouldn't come to that. Fortunately it didn't - I am now up and running and online!

Cost:

Computer - FREE
Antenna - $50
Assorted parts and software - FREE
Tech advice - FREE
Box of gourmet chocolate chip cookies and chocolates for the tech department to thank them for all their help - $12

So, for $62 I have something I can limp along on. Would I like something else? Sure, but this will do just fine until I can get something else. A computer is low priority right now, but when I do buy one, I want to have all the money saved up and put away so I can just walk in and pay cash.


Photo by: Stephen Hackett
via flickr

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T-Mobile Phones - Discounts and Insurance Plans

Yesterday I wrote about my cell phone dying and being home Saturday night with no phone or computer. Sunday morning I decided to head over to T-Mobile to see what they could do for me.

My phone, fortunately, is still under warranty. They ordered me a new one and then gave me a loaner phone while I wait. I still have to pay $9.99 in shipping, but other than that, I should be all set. When the new phone arrives I take my broken one and the new one to the store and they see if they can rescue any of my information. While chatting about my options, the T-Mobile rep told me that my phone warranty will end on December 10th of this year.

I am no longer under contract, so I can get a new phone whenever I want at the "new customer" price, or I can continue with my current phone, going month to month, as I am. If my I keep my current plan, my rep suggested that I consider putting insurance on the phone. If it is after December 10 and the phone breaks again, I can't put it on after the fact, so his suggestion was to put it on now, keep it on as long as I keep the month to month plan (especially once the warranty expires) and then cancel it when I get a new phone with a new warranty.

It made sense, but there is just one thing, I hate paying for extended warranties...

I've written about this before - and in fact canceled this very plan. Why pay $3 or $4 bucks a month on top of the warranty? I tend to get pretty low-end inexpensive phones, to me it just isn't worth it. By the time I get through a year of paying for this extra insurance - I could easily buy a new phone and keep the money in my own pocket!

I explained some of this to the rep, and he said, "Well, let's see if we can get you the insurance for free." For free? Well, now that makes sense. I don't mind having insurance if I am not paying for it! It turns out that T-Mobile has a new program with certain corporations and quite a few colleges and universities that gives a 15% discount to employees and alumnus. My university was one of them! So, he applied the discount, then added in the insurance, which meant my total bill will probably be about $4 less than what I have been paying. Great! (One funny note: in order to get me the discount he asked what my email address was at the university... I started laughing - when I was in college we didn't have email! I certainly didn't get one from the college. Gee dude, way to make me feel old!)

So, my plan is this - I will keep my present phone for the time being, but start researching new phones. Since this is the second time in a year I have had to replace it, I don't think it is a "high quality" phone, despite the fact it is made by Motorola, who I usually think quite well of. I'll definitely keep it through December and probably through to next year. In the meantime I will make the effort to research my next one. I don't care about Bluetooth and a lot of the fancy features, but there are some wacky little things I like in a phone and they aren't the kind of things they usually list on the T-Mobile website. That means I will need to go into the store and pick up different ones and play with them. Once I find one I want, I will keep an eye out for a deal - they frequently have discounts on the web.

While I normally hate insurance plans on appliances and the like, since the rep found a way for me to add it and lower my bill a little bit, I am a lot more open to it. Plus, this gives me time to use all my frugal shopping skills for the next one!




Photo by: JonJon2k8
via: flickr

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Turn Off the Power

Last Friday, during the garage sale, I noticed that my cell phone battery was very low. This was kind of annoying, since I had people all day calling me about the sale, but what can you do? I threw it on the charger. By the evening, it was charged up again.

Saturday my phone starts beeping and letting me know it is low on power again. I thought it was kind of odd, but I had been texting a bit and that always uses up a lot of power, so back on the charger it went.

Saturday night after the sale I went to grab my phone off the charger to make a call.... and it was hot. Really hot. I have to admit, I wasn't too surprised when it wouldn't turn on. It was fried. I had someone I was supposed to call, and I knew they would be concerned if they didn't hear from me, so I decided to send them an email and let them know the scoop.

So, I went into my office, turned on the PC, clicked to go to the internet, and then it whirred oddly for a moment... and died...

I can't say I was terribly shocked, I knew it had been close to dying for quite awhile. You see, a couple of years ago my beloved iBook died. This was about the time when my money troubles were starting and the divorce was looming. I didn't want to buy a new computer (and it would have cost over $500 to fix mine) so I started going into the office on the weekends to check email and do banking. My boss, running into me one Sunday evening working away, felt pity for me and offered me an old PC he had laying around - warning me that he suspected it had hard drive problems. Now, I'm an Apple girl because that is what I use at work and I love them, but a free computer is a free computer and all I needed it for was simple internet kind of stuff, so I gleefully accepted.

My office has a number of computer parts laying about, so they threw in a monitor, and I was in business! Sure, the PC made horrible noises and occasionally froze up, but for the most part it would work. I just never saved anything of any importance on it.

Then a friend came to the rescue. He had an old iMac - one of the old cute red plastic ones. Fabulous! Quite a few years ago I had had one of those on my desk at work - I was thrilled to accept his for home. There was only one tiny problem... he used a cable modem and I needed wireless. I've had the computer for awhile, but finally last week I decided to buy a USB wireless antenna. I had some help from the tech team at my office picking one out and it arrived last week Monday. With the garage sale, I hadn't had time to install it, so I figured now was the perfect time! I could kill two birds with one stone - get the antenna set up and send out my email. That's when I discovered another problem... the antenna was only compatible with OS X, and guess who had OS 9 on her "new-to-her" iMac? Sigh.....

So, I was pretty much out for the count Saturday night. Unless I wanted to use semaphore or smoke signals, no one was going to be hearing from me. I briefly considered getting dressed and going into the office to make a call, but it was very, very briefly. You have to understand that this was 10 p.m. at night, I was dead tired from the sale, in my pajamas and in absolutely no mood to put on shoes. I decided that my calls would just have to wait until Sunday.

It was a very strange feeling to know that I had absolutely no way of contacting anyone. People today are in such constant contact with others. I actually myself getting tense and nervous about it, and for a little while I felt really uneasy. Then I thought about it more. This is really only a problem of today's society. If you go back just 8 or 9 years, you would have found me living in an apartment with no cell phone, no internet and only a land line. There were times when that land line went down. I didn't worry about it - I barely thought about it. In fact, if you go back just a little further, I remember having only a land line and no call waiting or voice mail. If someone was on the phone (or accidentally left the phone off the hook for 3 days the way my parents did once) then too bad. Now my blood pressure was rising because if someone wanted to contact me, they couldn't. It was bizarre.

Once I realized how silly I was being, I settled down. In fact, I wondered if maybe this wasn't someone looking out for me - I was in absolutely no shape to talk to anyone Saturday night; the best thing I could have done was just sit quietly for awhile, and that was just what I was forced to do. It was good not to have to think about that little hunk of metal and plastic that I carry around all the time. I started to wonder if maybe I needed to do this more often. I do it a lot at the cabin - I don't have internet there and cell reception is spotty, but I don't at home. Maybe I need to turn the phone off a little more at home. Electronics are wonderful, but only when they are working for us, not when we are slaves to them.




(By the way, I did solve both the phone and the computer problems, but more on that in another post.)

Photo by: rtisbute
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The Benefit of Having a Plan - July Savings and Spending

Yesterday I wrote about my July income. The other part of the equation is comparing my spending and saving to my budget each month. Here's the breakdown for July:

In most areas I was right on target with my budget. This has been something I have been really working on a lot over the last year - not only figuring out the numbers, but also figuring out how to make it all work. I've written a lot about making finance personal, and gotten a lot of great comments in agreement from all of you on how budgets need to be customized to the person. There is no "one size fits all" budget. Of course, once you have a budget, it can't just be some sheet of paper that gets tucked in the back of the drawer - for far too long that is what I used to do. I'd make these great budgets and live with them for a month or two before I forgot about it or got bored with it. This past year I have found that my budget needs to be a living, breathing, changing document. It has to have the flexibility to fit with my circumstances, but also, I need to find ways to make my circumstances fit the budget.

A couple of examples are my Car Maintenance and Gift funds. Each month I was allocating a set amount to each of these areas, figuring that some months I would spend it, and some months I would save it and add the extra to my emergency fund. But you know what? Life doesn't work that way. Some months there are multiple birthdays, weddings and special occasions - other months have none. It is frequently feast or famine. I found that in the quiet months I would end up with extra in my budget but in the busy months I always ran short. Car Maintenance is the same way. There are months I don't need to do repairs, but on the months that I do it was almost always more than amount I was budgeting. It took me awhile to realize that what I needed to do was have small saving accounts for these items and have the amount automatically put into them each month. That way my budget comes out right each month and the money is there when I need it. This is working far better for me than the old system.

The other change, that I have mentioned before, is the use of the envelope system...

If you've been reading my blog you know that I've been trying an experiment of using the envelope system for Grocery and Home Improvement expenses for the past two months. These were tough areas for me, I had set budgets for them that I knew I could live with, but was regularly going over. The envelope method has helped a ton in this area! This month I spent all of my Grocery money, but I didn't go over. In my Home Improvement fund I actually have $26.00 still in the envelope!

But once again, this month I learned something about myself, or perhaps I should say I was reminded of something that I have known about myself - I am a planner and I work much better with a solid plan. Usually I make make bi-monthly menus and plan my grocery shopping accordingly. That way I always have a list of dishes I have all the ingredients for, ready to go. I come home, pick something off the menu and start cooking, knowing it will be something I like and that everything is at hand. This month was kind of a wonky month. For some reason I didn't make my menus, instead choosing to wing it. Not smart. I just don't improv that well, especially when I am busy. I spent all the Grocery money, but with very little left over and actually running short at the end of the month. It was fine, I mean I had food I could eat, but I had a couple days where I had to get a little creative there. That wouldn't have happened if I had planned better. So, tomorrow I plan on sitting down with cookbooks and menu planning pad and being a lot more organized for August. I will feel better, eat better and spend less.

Interestingly I not only spent all my Grocery money, but I actually went over my Dining Out budget. It was only by $22.14, but still. Some of it was that I was a bit more social this month, and I am totally okay with that - spending time with friends and family is important to me, but some of it was dining out because I didn't have a better plan. Again this goes back to the difference between knowing I have great food waiting to be made and served up, and having to come up with something on the fly with the weird ingredients I had on hand. Sometimes it seemed easier to grab a meal out. That's something I can fix by simply making a menu and stocking up on some healthy ingredients for quick on-the-go meals.

The other area I went over in my budget was my "Misc." category which this month paid for my haircut the other day and some expenses relating to the garage sale. Again, it was only by about $20, but with a little better planning, that could have been avoided.

However, I was able to save considerably in a few areas - my utilities were way down (I do the budget plan and they reset this month, giving me one month of gas that was prepaid,) and auto fuel was also low. My electric and cell phone bills were also lower than budgeted. That, combined with my home improvement excess, (minus my overages) means that I was able to save $192.37 this month! Money not spent is money saved baby! It will get added to my income meter on the right there and be moved into the House Painting fund. Sweet!

So, over all July wasn't my best month, but not the worst either. Some lessons learned, for sure. On both the income and the savings side, I am expecting August to be even much better.



Photo by: Djnn76

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Survey Sites I Like

Do you do surveys?

Personally, I think they are kind of fun. I don't do every type of survey that comes along, in fact, I keep it down to just three companies that I like. That also keeps the spam down as well! Much like Mystery Shopping, it isn't a big source of income, but I get a few bucks here and there and that has all helped towards the goal. I was working on my final numbers for the month and I realized I got almost $20 from surveys in June. That is almost double from what I usually get. If you have a few minutes throughout the day and you think they sound like fun, here are the three I do:

Pinecone - Pinecone pays cash, typically $3 per survey. For awhile I was doing several of these a month, but they have slowed down a little. I am sure the economy put a bit of a damper on it! Still, I got one today and it was kind of fun. In addition, they occasionally send you products to try in the home and then report back. You get to keep the product and get $3 for each follow up survey about how you liked it. Pinecone has very strict sign up requirements, though. The only way to sign up is to find one of their ads or get an invitation link from a member. These links are only good for a limited time. Fortunately, I got one last week, so I can pass it on to all of you. If doing surveys sounds like fun, click here.

MySurvey - MySurvey gives you points that you can use towards cash or gift certificates. Honestly, the points are fairly small so it can take quite awhile to earn up enough, however, the bright side is that surveys tend to be very fun and very short. When they have ones that run a little longer, those pay more points. This is one of the reasons I good month - I just got a $10 check from MySurvey last week!

The other site I like, I have written about before...

Socratic Forum Surveys - They tend to have a lot of technology based surveys. If you are the owner of your own company, work in any kind of IT Field or are a buyer for technology, you will get quite a few opportunities with them. Socratic pays out in cash or the better deal is with Amazon gift cards. I have gotten about $15 - $20 in gift cards from them.

A few other things I do - UPromise also has surveys you can do. I have written about them quite a bit, mostly because I love their program. They give you money towards college (and it is transferable so you can give it towards your niece or Godchild or mother - whoever is going to school.) You can get the money through buying certain things at grocery stores, shopping online, filling out surveys or shopping at local restaurants that are a part of the program. It just so happens that several of my favorite watering holes use the program, so I get more that way, but I will usually do the surveys too.

Just as one last note along this subject - I have also been having fun with Swagbucks lately. It's a search site, sort of like Google, that rewards you in points (aka Swag "bucks") that you can turn in for gift certificates from Amazon as well as a bunch of other things. Honestly, this is probably one of the fastest payouts - a $5 gift certificate is only 45 Swagbucks, and you can easily get a couple a day.

None of these are going to make your fortune, or even pay your cell phone bill, but they are kind of fun ways to snowflake a few extra shekels.




Photo by: D Sharon Pruitt of Pink Sherbet Photography

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The Great Debate on How Best to Save Money

Ladies and gentlemen, I now bring you another Fighting Foreclosure rant...

Lately I have been reading a fair number of blogs debating the merits of making "large" financial choices versus "small" ones. I put these words in quotes because I think they are extremely relative, but examples of these large choices seem to be things like refinancing, changing cell phone plans, comparing interest rates on investments and so on. Small (or frugal) choices would be things like using coupons, reusing plastic bags, installing cfls and so on. Every time I see one of these posts they make my teeth curl.

The ones that really get to me say something along these lines, "Why spend your time clipping coupons when you would save far more money by spending that same time researching loan options for refinancing your high interest mortgage?" And at first blush, that seems to makes sense... until you realize all the other added advantages of "small" (aka frugal) choices. In my opinion it isn't about making large or small choices... do both! Do everything that makes sense for your lifestyle and family. Here's how I see it:

You can make frugal choices 24/7.

Okay, so you spend your one hour a day researching new loans. Does that mean you can't turn the lights off or shut down your computer when you leave the room? That you can't have a cfl in that room or have the temperature set a couple of degrees to save a little electricity? Small, big - they are not exclusive of one another. In fact, most little everyday frugal choices don't take a consecutive hour. They can be done in tiny increments throughout the day. In fact, some choices may save you time. Maybe you decide not to water the lawn as much this year, or you decide not go shopping, but to stay at home instead. These types of small changes require little to no effort. Why not do them?

Frugal Choices Add Up

The argument that "big" changes can save you more than frugal changes is really arbitrary. Talk to some of the coupon warriors out there and you'll see that the money they save is incredible! That adds up over time. I was able to cut my electric bill in half by switching to cfls and being responsible with my electric usage. That may only save me $25 a month, but over time it adds up. Especially when I start adding in the other changes I have made on other bills. These little amounts of money can be saved again and again and again. It isn't hard to see how over the course of year they can add up.

Small Choices are Frequently Environmentally Friendly

I wash and reuse tin foil and plastic ziplock bags. I use cloth napkins. I started a compost pile. I do these things not only because they save me money and decrease my trash, but they also are better for the planet. Being wise about gas mileage, installing cfls, using less water, making your own coffee for the morning drive, shopping at local markets... all of these things are good for the wallet while at the same time they reduce your carbon footprint. In fact, other than perhaps coupon clipping, which uses up a lot of paper, I can't think of one small change you can make that isn't also green.

And there is more...

Being Frugal Doesn't Mean Buying Cheap

Most frugal folks I know love getting a good deal, but that doesn't always mean they want the cheapest thing out there. They will do a some research first and then choose the brand/model that has the best value. This may mean buying a more expensive item, but knowing it will last a long, long time. This doesn't put money in your pocket the way that getting new lower auto insurance will, but it does mean that they get more for their money and it will last a lot longer. If they can find it on sale - all the better! I find that frugal folks appreciate good quality and good deals.

Frugal Changes are a Gateway Drug

Once you start saving money, it is hard to stop. Once you see how easy it is to shave off a few dollars here and there, it is hard not to want to see what else you can do. Say you start making a brown bag lunch 3 times a week instead of eating out every day, once you see how much cash you have at the end of a week, I think it is hard not to find other things to do. Actually I think both big and small changes are gateway drugs - people get hooked on saving money. Whether they start with big changes and then filter down to smaller, or if they start with smaller and then start looking at their bigger expenses, it's like potato chips - you don't stop at just one!

You Can Pick and Choose, You Know

It isn't like anyone should be expected to do every single frugal tip out there. Everyone should go through and see what works and what doesn't. I don't feel like making my own laundry soap, though there are those that do. I hired someone to plow my driveway this winter. I don't do my own oil changes. Oh sure, there will always be people out on the outer fringe, but honestly, those folks are rare. Remember your high school statistics and that old bell curve? Most folks are going to be somewhere in the middle. If you don't want to clip coupons - don't! I think it is fun, but I don't spend any more than maybe 20 minutes on it the day I am going to shop. The idea that you only have a limited amount of time to save money per day is a bit silly. The fact is every family and person has their own threshold of what will work for them. Make choices that make sense for your family.

Frugal Choices Can Be a Source of Pride

I am not talking about bragging to everyone you meet about your penny-wise ways. I am talking about that feeling you get from turning an old beat up bookcase into a beautiful piece of furniture with a little elbow grease and a can of paint. I mean the thrill of going out into the backyard and picking veggies out of your own backyard. When I look at home repairs I have done myself, I feel proud of what I have been able to accomplish. Though I paid off my credit card last month and am proud of that, it isn't the same feeling as looking out at my square foot garden. I've been making my own birthday cards and doing a lot of cooking, and while it takes some time, I feel good about it and love what I have been able to create. That's a pretty wonderful feeling.

Frugal Choices Can Improve Quality of Life

I remember reading an article a long time ago titled something like, "You Will Have To Pry My Cable Out of My Dead Cold Hands." The same could be said for some people's vente lattes or Taco Bell lunches. If that is how you feel about, then that is fine. Don't make that switch. Or try a smaller switch - drop some premium channels, get a tall rather than a vente, go out to lunch a few less times. Or don't. Try something else. However, what I keep hearing from people is how much they enjoy the alternatives: people who wouldn't give up some convenience foods loving their home cooked alternatives better, tv buffs who are enjoying having one night off and having family night instead, home cooked "pub nights" with snack foods and beer being better than going to the pub itself. These are the kinds of lifestyle changes that are going to stick, no matter what the economy is, simply because people enjoy them more.

There Are Only So Many Big Changes

Let's face it, there are only so many huge changes you can make in your life. Eventually you are going to get through them and put them on a maintenance list, to be reviewed monthly or more likely, yearly. If you want to keep saving money, you are going to have to start looking in other directions.

Believe it or not, Frugality can be Fun.

I suspect that people who think frugal tips are a waste of time feel that way because they don't personally want to do them themselves. I don't recommend making yourself miserable to save a few pennies. As I mentioned, I don't make my own laundry soap - it sounds like a long, tedious, messy process. But there are many who do. They don't just do it because it saves money, they do it because it is kind of fun - there is a mix of science and DIY pride there. Frugal tips should have an element of fun. I love seeing my grocery bill go down when I had over my stack of coupons - not just because of the money I save but because it is fun. I feel like a video game that I just won. I made my own pita bread the other day and watching them puff up on the stove was a hoot! I actually look forward to getting my utility bills to see if I was able to beat the company this month.

Honestly, I think everyone should look at their personal big picture. How much income do they have? What are their goals in 5, 10, 20 years? How much money do they need to achieve their goals? What kind of lifestyle is important to them? What will it take to get it? Based on current income you might have to pinch every penny until it squeals or maybe you're doing just fine, but would like a little extra folding money in your pocket. Mix the big and the small choices for what works - it shouldn't be an either/or thing.





Photo by: swister_p

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Great Way to Sell Your Old iPhone

This afternoon I have a guest post for you from my friend David. I love hearing stories about how people are able to save money or make it in unusual ways, so I thought I would pass this along -

From David -

I have the first generation iPhone. Works great. Doesn't have the few additional features that the last upgrade has (GPS, faster network connection), so I decided that I would upgrade to the new iPhone that is coming out tomorrow.

Because I'm at the end of my contract, AT&T will subsidize most of the cost of the phone, leaving me to pay $199.

I figured that I would put my old phone up on ebay. Probably get about $50.

But then I saw this article on www.wired.com and I took their suggestion and went to gazelle.com. Their system made me an offer......

of $104.95! And they're paying for the shipping and sending me a box!

Part of the reason why they're offering so much is that I kept all the original packaging and have all the original accessories. It pays to be a geek-pack-rat!

---

Way to go David!! I admit, I am terrible about keeping all the packaging. I get annoyed by all those boxes laying around. However, if you have got the space it certainly sounds like it is worth keeping it. Now that I am living in a house with a basement I have a lot more room for it. Of course, I am always on the end of the curve when it comes to technology... my last cell phone I was able to turn in for a whopping $8!

What about you? Have you had any success doing things like this?




Photo by: armintalic

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May's Budget in Review

I've been working on my budget for next year and I finally think it is complete! As you may remember, I started my Fighting Foreclosure-Getting Nine Hundred blog at the end of May of last year - which was also the time I sat down with a spreadsheet and created my budget. So, my "fiscal year" currently runs June to June. Before I get into that, I wanted to give a summary of May:

I did quite well on utilities last month. My electric, water and cell phone bills all came in well under budget. The big winner was my auto fuel budget! This is a tricky category for me. Last summer when I started my budget, gas was up to $4.00+ per gallon. I was routinely spending $130.00 or more a month. I was forced to budget $150.00 just to make sure I could get through the month! When gas prices dropped, I was able to drop that category to $100. Since the big drop in prices, I've never come near that $100, but I was hesitant to drop it again because in the back of my mind I was sure fuel prices were going to go up again - it turns out I was right. It isn't up to $4.00 yet, but it has been climbing steadily. During the first part of May I was still able to take advantage of low prices, so I only spent $42.56 for the month. That is a little over April, where I only spent $37.14, but still well under where I needed to be.

Unfortunately my eBay and shipping budgets were not used hardly at all. I say unfortunately because those get used when sales are really moving. Fewer sales means less income. I still managed to sell a few books last month, but from what I hear, book sales are down all over. I guess it is one of those luxury items people are cutting out. There was other bad news as well...

I've mentioned this before - my budgets for home improvement, groceries and that dreaded "Misc" category were all blown! In addition to stocking up on some staples this month, I think my grocery bill was up because I did some entertaining at home. A friend of mine and I spent some time together cooking and I admit, I wasn't very frugal with some of my shopping purchases. That is partially made up by the fact that I came in under my dining out budget, but not completely.

Going over on the home improvement budget was not a surprise to me at all. I've been buying flowers and doing yard work that has required money. My only purchase that I could have planned better was buying an extension cord for up at the cabin. I brought a weed whacker up there to try to get the yard into shape and the extension cord I had wasn't nearly long enough. Because I wasn't about to drive an hour back home just to get another one, I went to a local Farm Supply store and bought one there. It turned out to be fine because there were other items at the store I needed (and didn't already have sitting at home,) and the cord I bought will be perfect for up there, but it is certainly something I cold have planned better.

Income was a bit low. I did get a check as a reimbursement for changing my home insurance, and I made a little money through bank interest, book sales, surveys, and mystery shopping, but it wasn't much. The majority of the income came from other things I had done earlier in the year - like changing my payroll deductions. Since I won't be including those in the future as "earned income" that means my goals are going to be a bit harder to get. More on that tomorrow!


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Budgeting and Bill Creep

I just read a rather interesting article on Yahoo's Finance pages called "In the Fight Against Bill Creep, Every Extra Fee is the Enemy." The concept is how bills can sort of gradually increase in size - either due to our own additions (like extra features on your cell phone) or added taxes, warranties and fees the company tacks on. I had that happen to me not too long ago with my cell phone - without warning they increased the cost of my warranty, so I canceled it.

One of the benefits of budgeting is that you can spot bill creep right away. My cell phone bill had been pretty close to the same amount each month, but when I saw a jump, even just a few dollars, I spotted it right away. I wasn't that diligent in the past. In fact, I am pretty sure that before I kept a strict monthly budget, I would have missed it.

Now that I have a budget I update daily, I catch all sorts of things I would have missed before...

Utility bills now fascinate me. I am always looking for ways to lower them, and I notice even a few dollars difference. I know there is sort of a movement in the personal finance blogsphere that a few dollars here or a few dollars there doesn't make a lot of difference, but I beg to differ! I bring in funds each month in $10 and less increments. I love small savings I can spot and make happen over and over again. I feel like I have already done all the "big" frugal things out there - dropping cable, not having a land line, reevaluating my insurance, changing my tax deductions, etc. The list goes on and on. However, along with those big things spotting little ways you can save money is not only rewarding, it can also be very valuable.

That's why I like my budget. It is nothing fancy - just spreadsheet with categories for each expense and fields for all the various ways I bring in income. However, I have every month at my fingertips - going back to June when I first started tracking expenses. Now I can instantly spot bill creep. If I were to add on a service, I would see instantly how that would effect my bottom line. In the old days, I wouldn't track month to month expenses that closely. I knew approximately how much things were and always had the previous months' statement, but small changes could easily slip by me.

I know a lot of people aren't particularly fond of budgets, but I have to say, they are a fabulous tool for preventing or stopping bill creep. My budget is one of the main things that has helped me stay on track, spot areas I could save, and makes sure I know the bottom line.

EDIT: One more reason to keep an eye on those statements - check out this article by Fine-Tuned Finances about Mysterious $.025 Charges Appearing on Credit Cards in the United States.

Photo by: Josef Stuefer

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What Happens if I Don't Get $900 a Month

So, it occurs to me that I have never really broken down what happens if I don't make my $900.00 goal each month. Obviously I haven't always made the goal, (you can see that along the right hand side there,) however, I am still paying all my bills on time and haven't had the bank knocking on my door yet. So, how do I do it?

Well, the first thing that you have to realize is is that my budget has some flexibility in it. I am using the same budget (with a few revisions) that I had before the divorce. When I took over the house I simply added all the house bills, utilities, etc. to it, and there it is... a $900 difference between what I budget to spend and what I know will come in from my 40 hour job and the rent from my tenant. However, you have to understand that money is kind of fluid. I don't have to actually earn $900. I could chose not instead not to spend $900.

It is easier said than done, but here's what I mean:

The difference between the two columns - what I budget to spend and my income - can be either made up by earning extra income or by saving money. In my budget there are things like dining out, entertainment, groceries, auto fuel, gifts, home improvement needs and charitable contributions. All of those things are pretty flexible. In addition, there are items that could be cut - my monthly emergency fund contribution, the extra I am paying on my credit card, my cell phone, even my life insurance. The question is, could I cut enough of those things to not have to scramble each month?

In a word, no.

I added it up once. I took out all the things that might be considered "extras" first - my gift fund, dining out, entertainment, the amount I put aside each week so I have Christmas money, my home improvement fund, my emergency fund, and the $15 I try to give to charity each month. That didn't cut it so I grabbed a calculator and started chopping in other areas - making minimum credit card payment, getting rid of my cell phone, cutting my grocery budget and my fuel budget. Then I calculated the difference if I cut my life insurance and the amount I budget for eBay selling fees, and when I was done, I still wasn't at $900. In order to make up the money completely I would have to live like a hermit and probably sell the house at a huge loss.

I decided that I would never do that. My goal is to live frugally - not unhappily. That is when I decided to work at doing whatever I could to do to make the $900 through extra income if possible. However, at the same time, I am very aware that if I can save money I don't need to make $900. For example, at the beginning of this whole process I was able to change my insurance and mortgage payments and save money that way. That gives me a fairly significant jump to the $900. I am also keeping the fact that savings and income are equally important in mind all the time. I do what I can to reduce the utility bills and other bills. I also am very frugal at the grocery story and those other more flexible areas of my budget. For example, last month I spent about half of what I normally allot for groceries, only $5 of my entertainment fund and came in at just a fraction of my fuel budget. So, even if I don't hit the $900 I can still come really close.

Fortunately I have also had a few good months where I have hit a surplus. That keeps enough cash in my account that I have only had to dip into emergency funds a few times. When that happens I always work hard to bring it back up. If a time came where I couldn't make the $900 for several months on end, and had used up all the reserves - even then I have back up plans and back up plans. It certainly keeps me on my toes, but it isn't like I am on a knife's edge... more like a balance beam.


Photo by Hello, I am Bruce's

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You Don't Need Math Skills to be Good at Personal Finance

Ah, my little blog, where I make confessions that ordinarily would make me blush. Ready for another one?

I am bad at math.

Not ferociously bad, just sort of generally bad. My brain works in different ways. I've always enjoyed reading and writing (though I can't spell), art and theatre. In school I liked English, History, even Science as long as it was about the how and why things work and not about the formulas. Then there is the whole "use it or lose it" thing, and believe me, I have lost a fair amount of whatever math skills I used to have from my school days. Oh, I can do the basics, and with a #2 pencil and a pad of paper can almost always come up with the right answer (after a try or two) on the harder stuff, but it still isn't my strong point.

I suspect that there are a number of us out there, people who are bad at math, but who are nonetheless trying to get their finances in order. Overall, I have found that while advanced math skills are certainly very useful, they aren't completely necessary. There are ways of getting around it. Here's what I do:

Whether you want to thank the Chinese in the 3000s for the abacus, Blaise Pascal for creating the first adding machine in the 1600s, or Charles Simonyi for creating Microsoft Excel, there is a wide variety of tools out there to help those of us in need of mathematical assistance.

Calculators - I have a calculator with me all the time, I bet you do too - right on your cell phone. It is a pain to use, but it works. I usually take a decent one with me when I know I am going to be out, but in a pinch, I have my cell. I use calculators all the time for everything from figuring out how far I have to go on my budget up there, using in the grocery store to make sure I don't go over my budget, to figuring out just how long I have until that pesky credit card is paid off. I know a gal who proudly tells me she can add her entire cart of groceries, in her head, and have it right to the penny at the checkout. That is a mighty impressive skill and one I wish I had, but since I don't, I use a calculator.

Spreadsheets - I don't actually use Excel, but I have a variety of spreadsheets that I have made to help me manage my finances. My budget, my balance sheet, my eBay and Amazon sales - all these I track in spreadsheet form. It sometimes takes a few tries to get the spreadsheets working just the way I want, but then once I do, all I have to do is plug in the numbers.

Online Services - I have been using a variety of sites to help me track my money. I use mint.com and my online bank account to keep an eye on my daily spending and FuelClinic.com to track my car's mileage.

Other people - When tools fail, fall back on people. I could do my taxes (and have) if they were simple. Back in the days of being single and having one job, life was easy and so were my taxes. Now that I have had a midyear divorce, multiple mortgages, multiple jobs, rental income and more, I am hiring an accountant to handle them this year.

Here's the point: being bad at math should not stop me, or anyone else, from working on their personal finance. Finance rarely requires involved math, and when it does, there are systems to work around that and help you figure out the answers. It does require the desire to be organized, but that can be learned. If you find anyone who says they don't try to budget because they don't like math (like I did last week) send them my way... and tell them to bring their calculator!


Classic math class photo by: Sam Starling

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February In Review

First of all, I want to say "hello and welcome" to all the new readers out there! I've had several people comment that they have just found my blog and I wanted to take a second and thank you for stopping by. I also want to thank all the folks that come by day after day - you guys are wonderful! Readers always put a sparkle on my day!

I also want to present an opportunity for you to ask me a question or two. If there is anything I haven't explained very well, or if you are new to the blog, or if there is just something you have always wondered about - please, leave me a comment. If we know each other quite well and you have a question you've always wanted to know - here's your chance! (Leave them anonymously if you wish.)

So, as far as my $900 a month goal goes - January was a bust. I suspected it was going to be a tough month when I realized that I didn't have any of my part time job income coming in. In the few months that I have had it, I have already come to really rely on it! This month however, I have part time job income from PTJ #1 and PTJ #2. I've been doing work for PTJ #1 the last couple of weekends and have a few more evenings there this upcoming weekend. That will pay in February. PTJ #2 has me working for them 3 weeks of the year. Next week will be one of those weeks - I tell you, it couldn't have come at a better time.

Although I didn't make my $900 goal this month, I certainly made a valiant effort! Good thing I had considerable surplus in December! Here's a look at all my 2009 goals and how I did:

Financial

One month of emergency savings - I currently have about a third of this goal completed. Since I was able to add to this account this month and (so far) have not had to withdrawal from it, I consider this goal on track.

Credit card paid off - This was another success. Some of December's surplus went to the card and again, nothing was added to it. I am currently on track for having it paid off by midyear.

Three eBay items per week - I almost made this goal. I did great for the first three weeks of the month, but during the last week I became extremely busy with work. Since that is my main source of income, that had to come first. I still managed to relist a few things, but it wasn't quite as successful as I had hoped. This month will be better!

Get an additional $900 per month - Didn't make this one at all. Again, February will be a much better month - I can feel it!

Home Improvement

Paint my house - The label on this one is neither green nor red. I left this one black since there wasn't anything I could do on this project this month. This is going to have to wait until spring when it will be time to start getting quotes.

Create a compost pile - Much like the one above, there isn't much I can do about this until spring, so why do I give it the green header of success? Because I found a book on this subject and read it. Baby steps towards a goal is certainly success!

Winterize my home in preparation for next year - Moderate success. I didn't make my January "to-do" list on paper, but I have it in my head. The next step is to put it on paper so I can work through and check the items off. Somehow I think we'll have plenty of cold weather in February to help me make sure that everything is on the list that needs to be! I did, however, install heat tape this month on the one pipe I have that is likely to freeze. Since it can just stay up, that is one item already done for next year.

Paint my bedroom - Again, this gets the celery colored header of "well, I tried." While I didn't buy paint, I did do some massive shopping for new light fixtures. I need to replace two wall sconces that came with the house and look like something out of Miami Vice. I scoured the resale and thrift shops this weekend, but didn't find much. So far, my best option seems to be eBay were I have found a number of them very reasonably priced. Then, I plan on turning around and selling my old sconces on eBay to a Don Johnson fan.

Fix up my attic - Dismal failure. I don't even think I went up in the attic this month! Ah well, it may become a spring project.

Personal

Self Schooling - I had two great opportunities for lectures in my area of study... but ended up having to work during one and the other was during an evening we were having a huge snow storm. The same group is offering another lecture this month... and again I am working. Fortunately they offer them every month, so there will be future opportunities. However, I think I need to pick up some books at my local library so when I have months like this I can still educate myself.

Gratitude Journal - I've been writing down 10 things I am grateful for each night before going to bed. I admit, that I am not always as perfect at doing this every single night (the way I would like to be) but I did do it most nights. It is really helpful for putting my life in perspective and reminding me of all the ways I am blessed.

A few other things...

This was an expensive month and packed with unexpected bills, however, I did come under my budget in a few areas that I can control: dining out, groceries and auto fuel were all down considerably. However, home repair, cell phone and that dangerous "Misc." category were all up. eBay income was up quite a bit, since I was actually listing things again, but all other forms of income was down.

So, let's see what the next month brings, shall we? Don't forget, if there is something you would like to know about me, my blog, or anything at all, just leave me a comment!

Photo by: WallyG

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January Bills Come Rolling In

It looks like it was a good thing that I had a profitable December. Some of the bills are coming in and things are a little higher than expected.

My electricity bill went up a bit, which actually wasn't entirely unexpected. I chose to have Christmas lights up this year - not on the house, but I had two trees (one large, one small) that were on timers. They went on just before I got home each night and went off at midnight. The difference was only about $20 on my bill, but considering that I have gotten my electric bill as low as $25, that is quite a percentage jump. Still, it was worth it - I definitely got $20 of Christmas cheer out of it! I also suspect that I had the lights on more in general and I haven't been as vigilant lately in making sure that I am using predominately the fixtures with CFLs in them. Since using CFLs has been such a successful method for lowering my bills, I am going to make it a higher priority this month to get back in that habit.

I also have snowplowing done at my cabin. Even though I almost never get up there in December, I still like to have it plowed so it looks occupied. My neighbor keeps an eye on the place for me, but still, there is no use encouraging vandals! I do love to go there in the winter whenever I can though, just because it is so peaceful. I like to snuggle up by the wood stove under an afghan with a mug of hot chocolate and book, watching the snow blow across the lake. One year I took a winter vacation there and spent a whole week in January just relaxing. I'd be tempted to do that again if it weren't for the recent layoffs at my job. Although I don't think my job is in jeopardy, I do think it is a good idea to be seen around the office as much as possible for awhile. I am hoping I might be able to get up to the cabin for a weekend or two this month, anyway. The snowplow service is flexible. He does it only on the weekends and only as needed. I can always call him if I were planning on going up the middle of the week, but for the most part, this system works out well. I pay on a "as needed" basis and last month it was needed every weekend. So, that is an unplanned expense that I will have to budget for next year.

My other unplanned expense was my cell phone bill. It was up quite a bit from my normal rate. That was due to holiday calling and a lot of extra text messaging. I have a text plan that normally works out great, but I went over last month. I hate doing that, so I am going be a lot better at keeping an eye on my usage. I don't expect it will be a regular problem though, again I think it was mostly due to the holidays.

The good news is that once again I got my bill for auto fuel and it was incredibly low. Though I budget $150 monthly for gas, that was in the $4.00 per gallon heyday of summer when I was driving a lot more. Last month I spent only $33.92 on gas! I am tempted to adjust my budget, but I think I will just let that line item ride for awhile. I suspect that gas will go up and spring is not that far away - both will mean more money spent on gas. I started my budget in June, so perhaps I will leave it where it is at for a full year, then do an average.

Another boon for this month is that I am well stocked on groceries. Hopefully I can get by with fewer stops to the grocery store this month. Last month was expensive with bringing dishes to parties and so on. I don't see that being much of a problem this month. Perhaps the big bills and small will all even out in the end.


Photo by: Dolinski

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November Recap - How I Did Last Month

Last month was a pretty good month, all things considered. While I didn't manage to hit my $900 goal, I was able to come pretty close. In addition to bringing in quite a bit in income, I also managed to do some major savings on my budget, so the month was a success. I am still striving to hit that $900 number, but it is nice to know that by scrimping in other areas, I can still make all my bills and get them in on time. Here's a break down of highs and lows for the month:

Electric Bill: As mentioned in a previous post, I rocked my electric bill. I still have my budget set at $52.40, since that was what was estimated, but I came in at a sweet $24.92. I really had to consider for this month if I was going to put up a Christmas tree and Christmas lights or not. I love seeing those low bills - but I also love Christmas lights. My solution? I decided to go ahead, but I only have them inside on Christmas trees (one regular sized, one small one in my bedroom) rather than having any outdoor lights. I also have them on timers so they are only on when I am home. I love having the tree on a timer because then I can see it as I pull into the driveway at night. It's a little thing, but it makes me happy.

Water Bill: I pay this quarterly, but I keep track of it monthly, since it is just easier for me to have a monthly budget. It is projected for $39.23 per month, but came in at $26.37. This is another great win for me. Unfortunately I just got the bill for next quarter and it looks like it went up. It is still under the original projected amount, so that will work out okay.

Auto Fuel Bill: This gas bill is always a month in arrears, so this is actually for the gas that I purchased for my car in October. The reason for this is because I put all my gas on a store credit card and pay it off each month. So, my budget for this is $150.00 and October's gas came in at $131.78, for another nice little savings. The great news is that I got a peek at my November bill, which came yesterday, and it is sweet! Between not driving a lot and the decrease in gas prices, I saved a bundle.

Car Maintenance: Sadly, this one came in over budget. I don't actually put anything aside each month for car maintenance, which I know is bad - but there is just no more room to squeeze it in. When I have car repairs, it just has to come out of savings. This month I had to replace a tire, but fortunately it was only $29.50. That wasn't too bad, really.

Cell Phone: My cell was under budget by $.23. Not a whole lot of excitement I know, but this is the start of my discontinuing my cell phone warranty plan. This month the bill should be down by $3.99.

Groceries: I blew my grocery budget, unfortunately, by $33.97. I was doing great, right up until Thanksgiving. Then I had two recipes I wanted to make and I needed ingredients for both. In fact, one of them, a chocolate mocha ice cream pie, I didn't have one ingredient in the house for. I probably should have made something else, but I really wanted to try this recipe and when else can you make something like that? I needed an event when there would be several people to eat it with me, on a day when people wouldn't care about how many calories they consumed - it had to be Thanksgiving. Also, while I was making my grocery list I realized I was just one or two ingredients from making several different healthy winter dishes. By picking up some carrots, barley, tofu and a few other things I have everything I need to make a bunch of great recipes. Theoretically, this should mean my December grocery bill will be low, but you know, it is another fun time of year to try crazy desserts...

Dining Out: Even though I was over budget in this category by $7.90, I am still pretty proud of myself here. Early in November I worked one of my part time temp jobs. It calls for late nights and I went out after a few of those evenings with some of that gals I work with. Consequently I didn't have time to pack lunches the next day, and ended up eating out. These are all things I can fix for the next time I work this job by making up a batch or two of something easy to pack for lunches - soup or a casserole, for example. So, why am I proud of myself? Because I realized I was over budget midway through the month and even though there were several opportunities and temptations for eating out later in the month, I held fast. It took some willpower but I knew I had to do it.

Entertainment: No entertainment this month, which meant $50 stayed in my checking account.

Home Improvement: I ended up being over in this category by quite a bit, however, most of those expenses were for my tenant or landlord related: salt for walks, supplemental heater, plumbing products. Had I only counted the purchases made for my personal home improvement, I would have been well under budget.

eBay: I did more Amazon and Half.com sales this month, so my budgeted eBay fees were way under for this month. That is kind of a mixed blessing, because while it is nice to have lower fees that also means far less income from this category.

Gifts: Only one small gift purchased this month, so I was over by $28.00. I won't be able to say that this month though!

Income: I was rather pleased with income this month. While I still would like to earn more, I also realize that I did a lot of work in November that I won't get paid for until December. I don't count it in my budget until the check clears, so I'll be adding it in this month. Likewise I am doing some work this month that may end up being paid next month. eBay sales were a little low compared to other months, but that was due to me being busy working part time jobs - not because items weren't selling. Amazon and Half did fairly well, though so far December is looking like a better month. I also was paid $24 for Mystery Shopping and $3.00 for a Pinecone survey, so the small income streams are paying as well.

One thing that I don't write about a lot, but I have mentioned in the past, is my credit card. When I started this whole process, my credit card balance was at $1,466.11. As of last month's statement I am down to $971.31. I am currently paying $75.00 a month on it and whenever I have extra cash, throwing more at it. I know that paying that off would give me an extra $75.00 per month and frankly, would just make me feel better. I will definiately have it paid off next year as soon as I can, but in the meantime it feels great to have that under $1,000!




Beautiful November photo by: Bri...D

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