Two years!

 

 

Happy Anniversary!

 

 

We celebrated two years of non-usage of credit cards in August.  If you can think of a better way to say that, please share, because that sounds like the worst. grammar. ever.  But - we are still going strong!  At least in that department we are doing awesome. 

 

We still struggle on a daily basis of getting a handle on keeping to the budget.  We still have no emergency fund because we have no budget.  And this fall is the absolute worst.  So many new activities to fund and all of the little extras that you don't think about that go along with them... I can't keep it all straight.  We have YNAB, but I haven't cracked it open since... March??  April??  I am once again balancing the checkbook by periodically checking the account via the online banking.  That is no way to take control of you money.

 

So Happy Two Years of not learning a damn thing.  :/

 

At least we haven't added to the mess!

Saving up for the big stuff..



As I mentioned before, we started shifting money into our savings account to save up for upcoming expenditures.  One the items was the 60K mile service on our Honda van.  We are about to leave on a road trip, and the odometer reads 69K... so we were way overdue.

Our van is no longer under warranty (for the most part) and I am doing a happy dance.  I have had a great deal of difficulty with the dealership when it comes to getting oil changes or service.  They are over-the-top when it comes to amenities, but the customer service personnel is another issue.  They aren't exactly polite when it comes to being around kids.  Especially when you have four of them.  I took the van in for an oil change recently, so that I could redeem a punch card for a free one.  We were quoted 45 minutes for our wait time.  We were there 2 hours and 10 minutes.  For an oil change, people!!!  Four kids and a stressed-out mom, crammed into a 6x8 playroom, for 2 hours and 10 minutes.  I may or may not have been responsible for some verbal abuse as I was paying my bill.  The best way to get out on time is to take your cranky kids back out to the service desk area at the appointed time, and let them go full boar.  Then you politely ask, "Dude!  Where's my car?" 

This time we happily took our car to our regular mechanic, Tom.  Tom works only on imports, and I have been taking my cars to him since I was 16.  We had our old Subaru Forester up until this past April, when the head gasket blew climbing a mountain pass, so we haven't seen him in awhile.  It was actually one of his mechanics that took the vehicle off of our hands for $500.  We were thrilled!  We were facing the very real possibility that we would only be able to sell if for scrap - and get *maybe* $100 for it.  So, since our van is now out of warranty - I was all too happy to finally bring it around to see Tom.

Following advice we received from Financial Peace University, we called ahead a couple of months ago to find out what the estimated amount for the service would be so that we could begin saving.  We divided it up the amount, spread it out between the paychecks, and saved up the $400 we would need.  That was a generous estimate, but it was nice to know it would be there.

The car was worked on yesterday, and I went back in the late afternoon to pick it up.  I was double-checking the bank balance on the way (my dad was driving), but just about had a mini-heart attack when I saw what was left in our checking account.  I was dropping off the mortgage payment that afternoon as well, (yeah - we were paying on the last day of the grace period...), and adding the two amounts together (mortgage and car)- it was more than was in the checking account.  WHAT???  I went into shock!  How could this have happened?  We have been so careful!  It took a full minute for me to realize that the money for the car service WAS there.  It was just over in the savings account.  We have been operating for so long (YEARS) with nothing but the minimum balance in the savings account ($25 bucks) that I completely forgot it was there.

Thank you Dave Ramsey!  What a feeling of relief to know that the money was there and that the money was meant for nothing else but the car service.  I wouldn't be shorting us for grocery or gas money, or be unable to pay some other bill because had I paid for the car service.  In the past, that was the vicious cycle.  Rob from one item to pay for another.

So, since it felt so good to have this money there and ready to go, and I like this feeling and I want to continue it, I called up Tom this morning and asked him when the next scheduled service is and what the cost estimate would be.  He told me 90K and around $1200.  It is a doozy of a service because a lot of things need to be replaced at that point.  That makes sense...  So.  We are at 69K right now.  We average 900 miles a month.  Each trip to OK is about 3K, and we go 2 -3 times a year.  We are not planning any other trips at this time because our focus is to pay off debt - not blow it on a trip.  So, I figure we will need this service in about 16 - 18 months.  Divide it out and I come up with $40 each paycheck.  That hurts a lot less than trying to come up with $1200 all at once.

So save your pennies - but give a name to each and every one and make a plan for those pennies!  The peace of mind is worth every penny.  :)

Penny for your thoughts??

(okay, that was corny)

How to reign in the desire to pile on the presents



It is so easy to go a little nuts when the holidays roll around... you pick up something here... you pick up something there.. and then you forget about half the stuff you bought already... and you forget the stuff you ordered online... you go into a store and see the toy display and change your whole game plan...

Sigh.

I don't remember how it came up in conversation, but a few years ago I got some advice from a fellow home schooling mom, Gail, about how to pare down the gifts and set the expectations to a more realistic level.  I've changed up the list somewhat to suit our kid's needs, but the premise remains the same.

Why was change necessary?



In years past, the kids have been spoiled.  Rotten.

You feel, as a parent, that if you don't have a humongous pile of presents for your children under the Christmas tree by Christmas Eve, you have failed.  Your children will hate you.  For years to come, they will sit on the couch in their therapist's office and lament at how stingy you were.

It's society's fault.  The commercials you see on T.V.  The displays in the stores.  The magazines and the websites.  They all show a disgusting amount of money being spent - all for a few moments of Hallmark Moment glory, before it disintegrates into "Where in the hell are we going to put all of this stuff??"  or "PUT AWAY YOUR @^#&$*% TOYS!!!"  All the while, your children are looking at you, completely bewildered, because they don't know exactly 'where' anything else can fit into the playroom.

So.  YES.  change was necessary.

Gail's list was simple, formulaic, and actually ingenious - because it took the craziness out of the season and gave you a concrete structure to go on.  Here is my version of the wish list that I go by...

Before Christmas...

1. An ornament.  Every child gets an ornament from us each year.  This is a family tradition that I grew up with, and I wanted to do it for my kids.  I keep a record of all the ornaments they either receive or make each year, so that they know when they got stuff.  When the time comes for them to leave home, they can take their ornaments and memories with them.  Makes me sad, but that is what I got to do at that age - and I love that I have all of those ornaments still on my tree, every Christmas.  The ornament, if possible, ties into what has captured the child's interest in the past year - a favorite character, activity, color, ect...  I do tend to splurge on this item.. in the past couple of years it has come from the Hallmark store (because, as a kid, mine did too...)  BUT.  Now that we are shopping for four - that means an easy $60 is dropped right there.  Ouch.

2. Advent goodies.  In the past I had three different Advent things that we do - this year we will have four, so each child takes a turn doing something different.  One is a felt calendar of a Christmas tree that has star-shaped buttons that mini-ornaments hang from.  The kids rotate turns hanging another ornament each day.  Another calendar is a wooden gingerbread house with numbered advent doors.  There is enough room to stuff four little chocolate candies in each compartment, or every few days or so I will put in dollar coins (I only fill the compartment early in the morning of the day of..).  The third is an advent candle that has the numbered days going down it - light it each day.  The final one is one I will start this year, if I can... - the Lego advent calendar.  I missed it last year because I hesitated and they sold out... not this year!!  Another advent thing to do is to use those little gauzy bags that you use at weddings or showers to put party favors in.  You can buy packages of them at craft stores for pretty cheap.  You fill up 24 bags with little trinkets, small toys, hair stuff or fun jewelry, coins or candy and then place them in a open-lid gift box.  Take out a bag a day.  My SIL did that for the kids about three years ago, and it was a BIG hit with the kids.  Another friend, Amanda, wraps up the family collection of Christmas story books every year, and each night, the kids take turns choosing one to unwrap and read.  No purchase necessary - except for the wrapping paper, which you can snag during end-of-season sales.

Christmas Eve..

• A new pair of pjs

Christmas Morning..

 (wrapped and under the tree)

• A book
• A game (sometimes this is a combined family gift)
• A toy
• A new outfit
• Something for art or crafting (model kit, paints, clay, playdoh)

(In the stocking)

• socks
• toothbrush and toothpaste
• nail polish, lip balm or hair accessories for Rylan
• body wash for Jordan
• Matchbox cars for Owen and Colin
• Candy
• DVD movie (if good deals are to be had...)

(From Santa)

• The one item they asked (begged) for the most, as long as the price is within reason

So... the list is set, and only ONE item per child per category is purchased.  I have, in the past, gone overboard stuffing the stockings with this and that and the other... the expense just goes through the roof.  I know exactly what I need and I make the best choices I can in each category - balancing needs vs. wants.  The biggest 'wow' factor is reserved for the Santa gift... leaving the magic exactly where it belongs.

Get out of the rut!



It's no secret that we are on a tight budget (especially since I've blabbed on and on about it on the www and even dedicated an entire blog to it...).  So it has become routine for family members to fill me in when this or that store is having a sale.  A big one came up recently, when my SIL called to say that Sears was putting a lot of their Land's End stuff on clearance. (thanks for thinking of me Michelle!)  I love Land's End!  I started doing calculations in my head.  Some of our clothing needs are critical... Jordan didn't get a new wardrobe last fall because everything still fit... now he has had a growth spurt and we are in trouble.  Same with Rylan.  The shirts still fit for the most part, but her pants are an issue.  And she has no winter coat.  And Jordan only has two pair of shoes: crocs and hiking boots.  That is a problem.   Thank goodness that Owen and Colin are just swimming in clothes - many, many thanks to some wonderful friends (Amanda and Dalliss) who have been frequently passing on clothing, coats and hiking boots to me - you are a godsend!!)

So I am doing the calculations: our needs are great.  But the money... hmm.  We sat down a month ago and planned out the next three paychecks.  We are really getting the swing of working the cashflow down to the penny.  Unplanned Halloween expenses (mainly food) threw a nasty twist into the budget, so I know there is no wiggle room.  We had set aside $100 from that cash flow to tackle the three biggest clothing concerns: a winter coat for Rylan, tennis shoes for Jordan and a pair of pants for Jordan.  When we plan out this month's two paychecks tonight at our budget meeting, we can see when we can put some more money aside for clothing.   

In the past, when I got wind of a big sale, I would just yank out the credit card in a flash and reap the rewards.  The savings!  The big haul!  LOOK at how much stuff we got for just $XX!!  Yes, I have taken advantage of many deals in the past.  And now the credit card company is taking advantage of my inability to show restraint.  To the tune of $460 a month in interest.

We went to our last Financial Peace University class last week.  We jumped in on the third class, so it has been ten weeks of some pretty intense learning.  I am sad the class is done.  It felt like a support group... like an AA meeting or something.  We could all commiserate about having to live on a budget.  I feel a little worried about not having the weekly support anymore, and that it might be easy to slip into some old habits.  The class is thirteen weeks for a reason: it takes that long to establish a habit.  We have gotten into the habit of not even considering the credit cards as an option.  If it is not on the budget sheet, we don't buy it.  I didn't budget extra money for clothes, therefore I did not go down to Sears to check out the sale.  I felt bad, but I didn't go because if I had spent that money, it would have meant that something else couldn't be purchased.  When the cash is gone, it's gone.  It is amazing though, how deeply entrenched that habit of using the credit card is.  That neural pathway of using the card as a way to acquire goods has been trodden down.  Much like the Oregon Trail.  You can still see the wagon wheel ruts.  The credit card ruts will remain for a long, long time.  Probably as long as it will take to pay off the stupid things.

Financial Planning: Holiday expenditures for the Fall



Have a plan for your money, or it will make the plans for you

(and you may not like those plans, particularly...)

Simple Mom posted a reminder about Holiday Budget Planning recently - and it was time to get started.  Well, it is too late for us to plan for this round of holidays, but it got me thinking and planning for next year.  Fly Lady also got me thinking about how to plan for holidays in the first place - only do what the family actually wants to do - not because you think you ought to.

So to pass the time on a longer car trip we took this past weekend, I wrote out a list (with every one's input) of the Fall/Halloween Activities that we like doing and want to do every year - or at least while the kids are young.

* Pumpkin patch visit.  (We always go to the same one - Bartel's Farm)

* Gleaning (again, we always go to the same farm - Miller Farms)

* Treatsylvania (a local, just-for-little-kids Trick-or-Treating event)

* Centennial Village (a local, just-for-little-kids Trick-or-Treating event )

* Trick-or-Treat Street at Dean's workplace

* Halloween trick-or-treating

* Pumpkin carving

* Fall colors drive/elk bugling

* Visit to the Denver Zoo

* Trunk-or-Treat at our church

* Make caramel apples

* Oktoberfest family gathering

* Apple cider & popcorn family game night

* Toasted pumpkin seeds

* Parties and the food items we bring along

Then, I priced out each activity.  Trick-or-Treating also means costumes and candy.  We make our own costumes, but sometimes I still need to purchase a few things.. material, paint, ect... 

The total was just under $300.  That is a lot of money to just come up with on the fly... yet you don't think about it as the fall season approaches.  We started actively zero-based budgeting in September, so we planned for about half of these items.  The other half - mainly the food items, were not really well thought out, so our food budget took a real hit the last half of this month.  Oops.  Live and learn.  So, beginning next month, $25 will be budgeted each month to go towards the Fall/Halloween fund.

So this is where true discipline takes place.  The money that we save towards long-term planned expenditures needs to reside in a safe place - our savings account - and not be touched.  We need to create virtual envelopes within our savings account so that we know how much of the savings is allocated to what expense item.

Enter the savings account spreadsheet.  As we begin each virtual envelope, we just add it to the list.  We have created a few this past month...

* 60K car service that will be performed next month, the week before we leave for OKC for Thanksgiving

* fuel/eating expenses for our trip to OKC

* Annual license plate tags, due in Jan.

* Furnace maintenance check next month

Unfortunately, there is only so much $$ to go around, so there is no way to set up something now for the xmas holidays. I honestly don't know where we will come up with the funds necessary for that.  I'll have to think about that tomorrow.  Or the day after that.  Or... the day after that.  Sigh.