You Need A Budget

YNAB. Pretty amazing stuff. If you have read my Month Ahead post, you already know that we save up the income from one month to pay the entire bills for the next month - IE, all the paychecks we receive in May go for our bills and spending during the month of June.

I've heard about YNAB on the TMMO boards for quite some time, but I thought I was doing everything just fine myself. Well, after reading about it, yet again, on the TMMO board, I decided to see what all the fuss was about. They have a 30 day free trial that you can sign up for. After that if you choose to purchase the software, it's $60. I've only had it 3 days and I'm already planning to budget that $60 to pay for it, because it's pretty fabulous.

What I like: you can download you bank transactions from your bank website and upload into YNAB. You can edit or delete transactions as necessary, and categorize those transactions so that you have a crystal clear picture of where your money is going each month. When you receive a deposit, paycheck, or whatever, you can indicate that it is money available to use this month, or next month. If you indicate next month, then that money is not calculated into your this month's budget - it's "babysat" to be used next month. Any money from your budget that you don't use this month will roll over to be available for the next month.

They also offer online teaching webinars that you can sign up for to learn more about how their service works. It's pretty fabulous. I cannot say enough good things about this - and I'm only 3 days in.

Please check it out. 30 day free trial. You do NOT have to enter payment info in to try it - you simply download and start using. At the end of your trial, your software quits working unless you finally pay for it. So you run no risk of them automatically taking your money if you forget to cancel at the end of your trial. If you're like me though, you won't want to cancel. 

Peace...

It's finally happened. After 3 1/2 long years, Jonny has been offered a full time, salaried, with benefits job. A REAL job - not like that title pawn crap place that treated him wrong back in January when he wouldn't compromise his integrity to do something they asked that was wrong. He's going to be working as an accountant for a law firm. YEAH! This is perfect. Thank you, Jesus. He starts the new job on Monday, May 7th. Funny thing, when I graduated 5 years ago, I started my new job at the Credit Union on Monday May 7th. Crazy coincidence :)

I am THANKFUL that we have been forced to cut our lifestyle down to bare basics. We've cut it down just about as far as we could go. We cut cable. We cut cell phone costs. We are mindful of our electricity and water usage. We've cut our food budget by stretching our meat and frozen veggies, and we buy organic milk, which even though it's more expensive, it lasts longer and doesn't sour as quickly as traditional milk. Therefore, we're not buying as much, so the money we spend is actually lasting us a longer period of time. Not only that, I don't seem to be lactose intolerant with it, which I thought I was with regular milk. We joined a local food-co-op. Paid approximately $15 a week to get a weeks worth of fresh, locally grown vegetables. It was an upfront expense, so that's $15 a week that we don't have to pay in the mean time. There are several other things on our budget that if things had gotten much worse, we probably could have cut them too. One example is the $17 per month trash service... we could have started taking the garbage to the dump ourselves, but that $17 convenience fee sure is worth it.

At any rate, we cut and cut and cut our budget some more, so that now that he has this new job, it's a HUGE blessing to make progress on things that we've "needed" to do, but have had to let slide recently. I posted on FB recently that I was going to be coming after the student loans with a vengeance as soon as I cleaned some stuff up. I'm not quite sure when that is actually going to happen, though. In the short term, we've got to rebuild our emergency fund, and sinking fund accounts, which takes care of our yearly or semi annual bills, such as car tags, life insurance and stuff like that. We also have some trees that need to be cut down in our back yard. We haven't been able to do that yet. The quote is only $750.... but that's $750 we haven't had. Hopefully we'll be able to get those monsters taken down by the end of May now :D I also have some medical bills to take care of too. We also want to save up some money for some things we want to do this summer.... go to a Nascar race, maybe a concert, etc. Our 5 year anniversary is this October, and we'll be going to the beach with our church family as we do every year. It just happens to fall on that weekend. I think we're planning on going down a couple of days early to make a vacation out of it.

So yeah, now that this has happened, we can dream again. Not go crazy, but we can actually budget a little more entertainment money than we had been so that we don't go absolutely stir crazy. I'm actually excited that we're going to be giving a larger tithe to the church! Tithing is something that's been especially important to me.

I worked on a generic budget with our new income, and I'm at a point now where we have a surplus amount that I'm not quite sure what to do with it yet. Part of me thinks "Throw it at the student loans!" since that's the ultimate goal anyway - get those suckers knocked out. But another part of me thinks I need to set a little more aside in our emergency fund and sinking funds account, to create a little bigger of a cushion. Technically, per Dave Ramsey's baby steps, we are still on Baby Step 2 - Pay off all debt. Baby Step 3 is a fully funded emergency fund. However, in his teachings, he does also give you the wiggle room to bump up your emergency a little bit if you are going to be in Baby Step 2 for a long time... which we are. It's been 3 years, and we still have a mountain of student loans. Even with his income, I anticipate we're going to be here at least for 4-5 more years, if not longer. I'm hoping we can do it in 5 years, with anticipated increases in salaries, yard sales, and maybe even a part time income on the side for me. I'm currently trying to find an online teaching position that I can use my MBA for.

Well... and the truth of the matter is, while writing this, I just remembered that we desperately need to start a "Car Replacement" sinking fund... badly. My car is 9 years old. It has 150K miles on it. It's still running well, though it needs a little more TLC these days. It's due for a major service, which we were not able to afford when I had the oil changed yesterday. I need Jonny to bring in a few paychecks before we can do that service. It's got a few quirks about it, and hopefully we'll be pregnant before too much longer. When that happens, I'm going to be in the market for an SUV. I will NOT be able to fit into my car once I get pregnant. Those of you who don't know, I have a 2003 Toyota Celica. It's a small little sports car, and it sits so low to the ground that my mom jokes about dragging her butt on the ground whenever she rides in the car with me. So yeah.... when I get pregnant, it's not going to be easy to get in and out of. Worst case scenario, Jonny and I will be able to switch cars (he has a Corolla, which is a 4 door, and sits higher off the ground than mine does) until we're able to afford another car. But the fact still remains, it's time to get another car, and we REFUSE to make payments. NEVER EVER AGAIN will I pay payments just to have a metal box with wheels. No thank you. So yeah... I think I just answered my own question. Those surplus funds will become the car replacement fund. When we're able to save up about 3-4K, we'll be able to trade my car for probably only 2-3K, and get a decent running early 2000 model SUV. We'll continue to save and upgrade again within a year, just like Dave's Free Cars for Life video illustrates.

Man.... it's good to be able to dream again!!! We cut our expenses so much, that this blessing gives us wiggle room to take care of things, without increasing our lifestyle. Our goal is not to go out an party, and eat out, and buy expensive new phones, or go on vacations every month with the extra money we're going to have. Our goal is to be responsible.... save up to replace the cars so we don't have to get a loan on a new one, throw a little extra money at the student loans when we get the emergency fund where we need it to keep Murphy away, clean up some medical bills, gets some trees removed, do some inexpensive work to the house that we've had to put off.... etc etc.

Thank you Jesus, for these blessings. THANK YOU for allowing us how to struggle, so that with this blessing we can be responsible with it.

I'm on a mission to never buy a razor blade ever again.

No, I'm not becoming a hippie and planning to never shave. I'm just tired of buying razors because they are so expensive!

Razor blades are one of the few things we have remained "brand loyal" to. I've been buying the Gillette Fusion blades in bulk at Sams Club for as long as I can remember simply because they come out to about $2.63 per blade, and unfortunately, even with coupons and sales I rarely have been able to find them for a cheaper price anywhere else. Additionally, my bald husband shaves his head every other day, and there is a specific kind of blade that he prefers - HeadBlade, which is difficult to find. Sometimes I can find them at Publix, but usually I buy them at drugstore.com. He goes through a Gillette blade every 6 days, and a HeadBlade blade every 10. I buy Gillette blades in packs of 16 and HeadBlade blades in packs of 4 (I buy 2), and they both last us about 2 1/2 months. That's almost $60 every 2 1/2 months for razors. I am just TIRED of spending that kind of money.

**Grumble Grumble** I didn't realize until doing the math to write this blog just how BAD it was. I thought I was buying them every 3-4 months. Crrraaaaaaaaaaaaaaap.

About 2-3 weeks ago, we stocked up on blades....and then I found this. I wont be buying the Razor Pro, but I'll probably go with the blow dryer approach since it's a product I already have. I do recommend that you click the link for the Razor Pro, to watch the video on how razor blades break down from being wet with water. Also, if you read the comments posted, one person mentioned leaving the blade in a cup of baby oil between uses. I may try that too, because it seems to me that baby oil would protect the blade more than simply drying the blade would.

I don't know if this works, but Clark Howard swears that he's been using the same $0.17 razor blade for 2 YEARS now. I'm gonna give it a try. I'm tired of spending an average of $20+ a month on razor blades between the hubby and I. I could do a whole heck of a lot with an extra $20 a month if we can make this work. It's just going to be a matter of making it habit to take care of the blades properly.

2 years, 5 months and 7 days later....

We paid the car off on Friday, 7/29/11. I don't think it's quite sunk in yet. This was a HUGE milestone for us, as it's now one less thing for us to have to worry about. We've had a couple of Negative Nellys who were trying to discourage us, but as Dave says, if we're being made fun of, then we're doing something right.

However, with this accomplishment, we reach a "hurry up and wait" point. Jonny's school plans for his CPA test prep have changed once more...hopefully for the final time this time. The latest plan is that he's going to take his final 4 classes this Fall to meet the 150 credit hours he needed to get his CPA license. Originally he was going to wait until Spring to take those classes, due to a particular elective being offered. He was able to get into another class in its place for the Fall. So now the new plan is that in the Spring he'll begin taking the 4 parts of the CPA exam.

He's taking classes at night, so he'll have the availability to take on a full time regular working hours job, IF he can find one. He still hasn't been able to find anything more permanent. We are fairly certain though, that his current employer will keep him through December, but once he's done with Fall classes, if he hasn't gotten something else lined up, then he's not going to have an income anymore. This is a worst case scenario that I really REALLY hope doesn't happen. Since is is a possibility, though, this means we HAVE to temporarily halt the baby steps and build up as much cash as possible. We are entering Storm Clouds mode. Why? Because my income alone is not enough to cover our regular expenses plus student loan payments. If we didn't have the student loans, my income would cover our basic living expenses. But because off the student loans, we don't have the luxury of being a 1 income only family.

So....for the next 5 months, we're going to follow our written budget, pay the minimums on the student loans, and anything extra at the end that would "normally" be applied as a snowball payment to the student loan, is going to be put into our emergency fund. This will cover us so that if we have a few months of him being unemployed, we'll still have a way to pay the bills. I pray though, that he'll find a full time job soon, and we can resume working the baby steps.

Until next time....

Washington makes me sick.

"Republicans are insisting they will note vote to raise the debt limit without major spending cuts; Democrats are refusing to sign off on cuts of such magnitude without at least some tax increases as well. Republicans say they won't sign off on any tax hikes at all, including those Obama wants targeting the wealthiest Americans or closing loopholes to corporations."

http://www.msnbc.msn.com/id/43645224/ns/politics-capitol_hill/t/obama-warns-against-short-term-debt-deal/

Washington really needs to go through FPU. If you don't have the money, you cannot spend it! Raising taxes on Americans should not be the equivalent of asking for a credit limit increase. Washington needs to make a prioritized budget, and if the program falls below the line of where the money runs out, then that program doesn't get funded. If you need more money to fund more programs, you need to find the individual equivalent of finding a part time job! Hiking taxes on Americans is not the part time job income generator.

Good job, Democrats, you refuse to grow up and realize that you cannot stretch the dollar any further than it will actually go. If you cannot afford it, you cannot buy it. Quit throwing a temper-tantrum and demanding a "raise" (read: increased debt ceiling) just so you can continue to give deadbeats a frikkin handout.

Republicans, you aren't much better. Have you no backbone? "Oh, well, if cuts are agreed upon by the dems, then we'll vote to increase the debt limit." Um, no....no increased debt limit is needed. If cuts are made, then no increase will be necessary. SIMPLE CUTS are needed to balance the budget. Period. No tax increase, no increased debt.


Dumb politicians.

Only 4 Digits....EXCITING!

$9,984.46. That's the amount that is left to pay on Jonny's car. The consolidation loan at $320 a month has been paid in FULL!

If we continued to pay only the minimum payment on the car, it would be December 2013 before it got paid off. This is completely unacceptable, and we are going to snowball this amount by as much as we can. Christmas doesn't look like it's going to happen....so our modified new goal is February 22,2011 - our 2 year FPU-aversary.

I'm not going to lie - that is going to be HARD to do...because of the house situation, our sinking funds account got raided, and some of those bills are going to be due before too much longer. I actually need to reconfigure our sinking funds accounts, but I just haven't been able to do that just yet.

I'm still not quite certain on our new monthly budget with the new house, and utility expenses, but here's a best guess so far:


--------Charity--------
Church                             330
AXiD                               10
--------Housing--------
Mortgage/Tax/Ins                   613.76
--------Utilities--------
ADT Security                       28.99
AT&T Land Phone                    35
Water                              50
Trash Collection                   16.95
Cooks Pest Control                 37
Alabama Power                      175
Cable TV/Internet                  85
Sprint Cell Phone                  143
--------Food--------
Food & Household                   400
--------Transportation--------
Gas & Oil                          350
--------Personal--------
A Blow                             200
J Blow                             200
--------Debts--------
Car                                276.11

Disclaimer: The totals do not list our entire monthly income, and this budget is not $0 based....I still have extra to spend, but if I don't find somewhere else that I need it, it will be snowballed to the car. I've also left out paycheck allotments to our savings account and sinking fund accounts which fund our life insurance, car insurance and tags, and home repair expenses.

We're more than 3/4 done!!!! Only 4 digits left in our non student loan/mortgage debt. Jonny's working hard to find a full time, or a better part time job/internship with a CPA firm this fall. Please keep him in your prayers. His military benefits income will go away once he graduates, and so we'll need to be able to replace that income with a job in order to start paying on the student loans at that time.... I'm slightly stressed about repaying the student loans, but not as bad as I would be if I still had all this other consumer debt...so for that, I'm grateful.

The Month-Ahead Plan

I am sick of my cash flow problem. The money is budgetted appropriately each month, but the fact of the matter is that with only 1 steady income, the money is not there as quickly as we need it to get through the month. As a result of this, during the first half of the month, I am ashamed to say that we have "borrowed" from the emergency fund, to have cash for expenses such as food and gas, and then paid back that which we borrowed when the paycheck for the second half of the month comes in.

This is dangerous, and I'm sick of having to do it. What is going to happen if we do have a Major Murphy visit after rent has been paid, but before Paycheck #2 comes in for the month? DISASTER!

I've been reading on the MTMMO forums that many people operate under the "Month-Ahead Plan." Basically the idea is that you build up one month's worth of income and you have that money sitting in your account, and then, on the first of the month, you already have every bit of money you need to pay your entire expenses for the upcoming month. You could essentially pay your entire month bills on the first, and pull out the cash you need for the month on the first. By doing this method, it wont matter when your paychecks for the current month come in, because you'll be paying THIS month's bills with LAST month's income.

So for example, if my usual monthly income is $4000, then I need to build up a reserve of $4000 in my account before the first paycheck of the month even comes in. Then on the 1st of the month, I can pay all my bills for the upcoming month, and withdraw cash for my cash envelopes - gas, food, and blow money. For safety's sake, I would probably actually only pull out enough cash for each envelope to get me through 1 week at a time, so that I wouldnt accidentally spend my entire month's grocery budget in the first week, etc.

It's going to be very very hard to look at my checking account and see a large available balance of $4000 or so from month to month, and not throw it to my debt snowball, but I think that this is the best way to take control over the cash flow issue. I need to start paying THIS month's bills with last month's income, rather than struggling to make this month's income work for this month's bills.

The plan to put this into place is to back off the debt snowball for a month or two and resort to paying only the minimum balance due on my consolidation loan, and car loan. I have some money, approximately $2000, coming in from the Post 9/11 GIBill within the next several weeks, and Jonny is still bringing in some money from his job at the tax office. If I have calculated everything correctly, I should be able to be on the month ahead plan starting June 1st, which is only 11 weeks away.

There are many more plus sides to getting a month ahead. I can stop relying on each bi-weekly paycheck and I can set up more allotments through work, to where certain funds go into particular savings accounts already, rather than into my checking account and manually transferring the money when it's time to put it in. My $300 a month Sinking Funds could become a $150 per paycheck allotment that would automatically go into my sinking funds account. Instead of having to wait until the second half of the month to pay the church my monthly tithe, I could pay the entire tithe at the beginning of the month. I could even FINALLY set all my regular bills up on AUTOPAY, rather than insisting that I pay them on a specific day of each month, because I know it's a day that the money is available. <--I'm a little iffy on that one, I'm afraid I would become sloppy, and not double check the bills to make sure they are right and that I'm not being overcharged.

At any rate....I've been digging my heels in about this one, but as I tried to come up wth my cash flow plan for April and May, I was thoroughly depressed to learn that, once again, I would be forced to borrow from the emergency fund in order to have the basics covered: food and gas. Bummer. I guess it's time to put my big girl panties on and just DO IT.

What are Sinking Funds?

Sinking Funds are defined by Frugal Dad as follows:  "In the personal finance world we can use sinking funds to help prepare for large, infrequent expenses that come along throughout the year. A prime example of such an expense is car insurance. Many insurers allow customers to pay monthly premiums for a convenience fee (my company charges $4.00 per monthly payment). I can easily save $24 by rejecting the monthly payment arrangement and agreeing to pay once every six month, when the auto insurance policy renews. But this means I have to come up with a hefty sum of money twice a year to cover the premium. This is where sinking funds can help."

Dave has a great form for such Lump Sum Payment Planning that works beautifully. The idea behind it is that you list your pricier infrequent expenses (you know, those things that you only have to buy every so often - usually only once or twice a year) and rather than having to come up with a large chunk of change when it's due, or paying a convenience fee to give the company the honor of setting you up on an installment plan, you save the money in your own savings account in the months leading up to when that bill is due, and pay it in full, with cash.

Our current sinking funds are $300 a month, for a total of $3600 over the course of the year. This includes auto insurance, renters insurance, car tag/taxes and fees, car maintenance (tires, oil changes, other services), and life insurance. Here are our yearly expenses on these items:
Car Insurance: $1300
Amanda Life Insurance: $350
Jonny Life Insurance: $450
Car Tax/Tags: $300
Renters Insurance: $350
Car Service/Repairs: $850
Total: $3600.

We actually had our car service and repairs a little less (only $700) when we initially started working on this, but when we divided the total amount out by 12 and our monthly savings were to be $287.50, we decided to round it up to $300. This way, if something happens and it's a little more expensive, we've got a little more wiggle room in there.

If you're first starting out, and trying to get your sinking funds caught up so that you can go forward with the correct monthly amount, you'll need to figure out how many months you have until that expense is due, and how many months portion you are behind on that item. Lets look at our example again, from a monthly standpoint, and taking into consideration when our due dates are:

Car Insurance: $1300/12 = 108.33 per month, Due in May and November ($650 every 6 months)

Amanda Life Insurance: $350/12 = 29.17 per month, Due in January

Jonny Life Insurance: $450/12 = 37.50 per month, Due in November

Car Tax/Tags: $300/12 = 25.00 per month, Due in December

Renters Insurance: $350/12 = 29.17 per month, Due in October

Car Service/Repairs: $850/12 = 70.83 per month, Varies.

Total: $3600.

To clarify, I have a separate savings account that I dump the entire $300 per month into, and I keep track on an excel spreadsheet how much belongs in what category.

For illustration purposes, let's pretend that I just got my tax return back, and rather than putting that amount towards our debt snowball, I wanted to get current on my sinking funds before putting any remaining amount towards debt. This way, starting next month, I'll just need to add the budgeted $300 to the sinking funds savings account. How much money would I need to put into the SF account to bring me up to speed?

Car Insurance is due in May. There is only 1 more month between right now and May, so to get caught up, I need 5 installments of the car insurance. $108.33 * 5 = $541.65

Amanda Life Insurance is due in January. I have 9 months between now and January, therefore, I need to pay 3 installments: $29.17 * 3 = $87.51

Jonny Life Insurance is due in November. I have 7 months between now and November, therefore, I need 5 installments: $37.50 * 5 = $187.50

Car Tax/Tags are due in December. I need 4 installments: $25.00 * 4 = $100.00

Renters Insurance is due in October. I need 6 installments: $29.17 * 6 = $175.02

Car Service/Repairs due dates vary. You can start with the current month and only add $70.83, or keep in on a calendar year basis. I'm going to assume this is a calendar year  thing, and save up from January through December. Therefore, I will save 3 installments now, which will catch up January, February and March, for a total of $70.83 * 3 = $212.49

Now, I'll add all these installments up: $541.65 + $87.51 + $187.50 + $100.00 + $175.02 + $212.49 = $1304.17 needed in my savings account for the month of March. In April, I will add $300 to it. In May, I will add another $300 to it, but I will also pull $650 from it, to pay my semi annual Car Insurance. In May, I'll add another $300, etc etc etc. Car service money will be pulled from it as needed, but make sure you don't spend more than you've currently built up for the year for car repairs. If you need more than you've built up, you'll need to budget to pay it back in future monthly installments.

Here's a list of other Sinking Fund expenses you may need to consider budgeting for:

Real Estate Taxes
Homeowners Insurance
Home Repairs
Replace Furniture
Medical Bills
Health Insurance
Life Insurance
Disability Insurance
Car Insurance
Car Repair/Tags
Replace Car (You should watch this video! As for the skeptic comments by users - just remember that the stock market AVERAGE is 12%. No, it's not 12% right now, but over a period of time, thats the average. Don't over-think the concept because of technicalities, or you'll end up just being another boring NORMAL person. Be WEIRD!)
Clothing
Tuition
Bank Note
IRS (Self-Employed)
Vacation
Gifts (inc. Christmas)
Other 

*If you're reading this on Facebook, please go to http://proverbs227.blogspot.com/ to read the original post for links to videos and other websites.

1 year later....a reflection,

February 22, 2009 we took the first step to taking control of our finances. We started off with 6 credit cards, 2 Car loans, and a consolidation loan, over $42,000 in debt, and a whole messload of bad habits. Here is a reflection of things we've changed as a result:

• In the past year, we paid off 6 credit cards, and a car. All we have left is the consolidation loan, and the second car. Total debt paid: $22,290.06
• We no longer use credit cards.
• We have a written budget... and we actually stick to it. If it's not budgetted, we dont buy it, unless it's an emergency....
• ...which brings me to my next point. We have an emergency fund. Luckily, we haven't had to use it except for a couple of vet related expenses. Once we use it, we halt the debt snowball until the emergency fund has been replenished, and we continue with the snowball.
• I don't go shopping out of boredom or "I Wants" anymore. If I find something I want, I save up blow money if I can justify having it. Many times, I do without. Sometimes Jonny has to tell me that my want is actually a NEED...such as clothing....when you go 6 months without buying clothes, it becomes a need to add a few new pieces to the wardrobe. However, I used to buy clothes ALL the time, and I knew this was a weakness for me. Therefore, I still try to avoid clothing stores while I'm still in this pursuit to get out of debt.
• Because of our written budget, we do not eat out to the tune of over $800 a month in FOOD. Good grief I was depressed when I first realized how much money we were wasting by eating out. Our eating out and grocery budget is now less than half that (due in part to coupons).
• I've become a better cook, and I brownbag more lunches for work, rather than swinging by the drive through.
• We saved up, and paid for a trip to California right after Christmas (to see family) entirely in cash. Flight, rental car, hotel, food, and activities while we were there, etc. The trip did not follow us home in the form of a credit card bill. Woo!
• We pay for things like auto, life and renters insurance in cash now. Rather than swiping a credit card when the bill comes due, I save up an appropriate amount every month in a savings account deemed as sinking funds for these expenses, and then when the bill comes in, I transfer the money and pay it off, rather than charging it.
• As far as entertainment goes - we've gotten creative. Date nights at home with a good movie and dinner, or movies nights at the dollar theater. Camping at the local state park is CHEAP for a weekend. As soon as tax season is over and I have my husband back, we'll be going camping this spring. Yay!

Goals for the upcoming year:

• To better manage our budget by using cash envelopes for our non-bill related expenses. Now that all the credit cards are paid off, our monthly cash flow with regards to the paychecks are going to be easier to manage because. 
• Find more snowflakes (unexpected income, or "found" money) that can be applied to the debt snowball.
• Pay off Consolidation and Car Loans by Christmas.

Hope you all have a great week!

Big News, More Couponing, and updated budget

Fabulous news! As most of you already know, we paid off the last 2 credit cards, and for the first time in over 10 years, we have NO credit card debt whatsoever! All that we have left is a consoliddation loan, and to pay off Jonny's car. We feel very confident that we will be able to do this by Christmas, and will be able to spend Spring building up our fully funded emergency fund, as well as a down payment on a house. Our goal is to be house hunting by Summer 2011! WEEE!

We've also cut our food and household budget because of the use of coupons and looking for savings. I looked back at my post from about a month ago, when I said I had spent $89, and just shook my head. These days, my shopping trips are more in the $40 range, and I have become successful at "flipping" my bill. I dont go shopping for what I need that week anymore. I go shopping for things that we use, but are also on sale. I stock up on non-perishable items. For example: Hamburger Helper. Normally $2.00 a box, today, they were 10 for $10 ($1 each) and I had three $0.75 off 3 coupons. So I bought 9 boxes for $9.00 - $2.25 = $6.75. 9 boxes at normal price of $2.00 each would have been $18.

I don't buy things just because I have coupons or just because they are on sale though. I buy things that we use, but the key to couponing is definitely to not be brand loyal. I have stocked up on laundry detergent, toilet paper, paper towels, and personal toiletries in the last month and have spent just a little bit of money doing so. They are all different brands, depending on what was on sale when. I have a good 6 months of toletries and laundry supplies stocked up right now.

I also buy more "treats" now, because I can. Jonny and I LOVE brownies....we dont make them all the time, but I'd rather buy them when they are cheap, rather than when I'm having a hankering for some, and end up paying $3 or $4 a box for the "good stuff." Today, the Betty Crocker Hersey Brownies were B1G1, and I had a $0.75 coupon off 2. Price came out to $1.02 per box. So, in short, todays trip to Winn Dixie prior to them swiping my loyalty card was $83.33. After swiping the loyalty card, and applying coupons, it dropped all the way to $37.80.

I look at grocery shopping completely differently now. If it's not on sale, if I don't have a coupon, and it's not something I can't live without for the next week, the I don't buy it. Such a different approach to grocery shopping than I used to have...

I'm still trying to find a cheaper way to buy Gillette Fusion Blades, which is one thing we ARE brand loyal to. Jonny and I both use these, and currently, we buy a pack of 16 at Sams club for $42, which comes out to $2.63 a blade. I've been looking at target, walmart, cvs, publix, winn dixie, etc, for a better price, but even with a $3 off coupon (cant use coupons at Sams), the cheapest I have found at those places are $3.00 a blade. So...until I find a better price, I guess Sam's Club will win for this particular product. If you have any suggestions for me, please let me know!

Here's the new budget. Since the last time I posted, we have lowered the cable bill, lowered the food and grocery bill, upped the medical bill. The snowball has changed as a result of no more credit card debt, and anything left over at the end of the month will also be tacked on to the NFCU Loan until that one is knocked out as well.

--------Incomes--------
A Disability 123
J Disability 123
GIBill 1518
Paycheck 1051 (after tax)
Paycheck 1051
Svgs Allotment 100
Svgs Allotment 100

--------Charity--------
AXiD 10
Church 300

--------Saving--------
Savings 443
Sinking Funds/NFCU 300

--------Housing--------
Rent/Water 794

--------Utilities--------
Electricity 150
Mobile Phone 142
Cable 85
Storage 40


--------Food--------
Food & Household 300

--------Transportation--------
Gas & Oil 125


--------Medical/Health--------
Medical 75


--------Personal--------
A Blow 100
J Blow 100


--------Debts--------
Student Loan 126
Corolla Loan 276
NFCU Loan 700

Why I Tithe...

So, one of my good friends yesterday sent me a message yesterday asking me some questions, and it inspired this particular post because I wanted to explain why I tithe, in case there are more people out there with the same kind of questions.


I feel like tithing is not an option, but rather, a necessity. The bible gives us instruction to tithe to the church. A Tithe is a 10th of your income. Anything more or less is an offering, a gift. So don't call it a tithe if it's not.

When Jonny and I first started attending St. Mark, for the first few months, prior to starting FPU, and even into the first month or two, we gave what we "could." We knew it was important to give, but 10% of our single income while he was not working was enough money that if we kept it for ourselves, it would make things easier...

That's not entirely true. In our experience, tithing is like an emergency fund; it's Murphy Repellant, as Dave calls it. When you have an emergency fund in place, your emergencies are less severe, and less frequent. Prior to having an emergency fund, a flat tire, or medical bill, or other kinds of unforeseen expenses would have been put on a credit card, because that was the only way we were able to handle it. Since creating the emergency fund, emergencies don't appear to happen as often - and when they do, it's only a minor inconvenience, rather than a catastrophe.

Like I said, in our experience, tithing kind of feels like an emergency fund to us. When we started tithing - rather than giving a small offering, our finances seemed to fall into better shape. We "found" money we didn't know we had, and we learned to better manage the money we DID have, so that it stretched further, and wasn't such a tight squeeze to make ends meet. Over the summer, Jonny had a temporary job which helped kick start some of our debt. Sure, it wasn’t permanent, but by that point, we had been living on one income for over 6 months, and the budget we had worked, so we continued living on that budget, and his extra income from that temporary job went only to debt (and, the tithe that was required from it).

I've listened to Dr David Jeremiah on the radio at night in regards to what it means to tithe, and why it's important. Dave says some similar things. Basically, what they've said is that our money is not ours. EVERYTHING we have is because of God. Yeah yeah, I know some of you out there are rolling your eyes about the freakish religious aspect of this post by now and how I must be a brainwashed Christian. Um, no. Just because someone is a Christian doesn't mean they are a brainwashed psycho. I'm not trying to change your mind, just letting you know why I feel it's important to tithe.

My church has been wonderful for me, and our transition in Columbus. I swore after I left the military, I'd NEVER leave home again. Well, I did - sort of. Yeah, it's only 2 hours, so it doesn’t really count, but 2 hours is still far enough away from my friends and family, that I get a little homesick from time to time. I've gotten really involved in the church, and it's helped make Columbus feel more like home. So in one sense, I feel like I owe it back to the church, for helping me. Here's an analogy that my sorority sisters will love: The same way that a sorority is fun and games, but needs money to operate on - a church has a responsibility to the community. Guess what? The church needs money to fulfill that responsibility.

I have friends who say "I can’t afford to tithe." Really? 10% is enough to make or break you for the month? If that's the case, you really should look at where your money is going and cut some unnecessary expenses. You don't NEED a cell phone at $150 a month, catch my drift? If you can’t afford to tithe, then Christ "can't afford" to reward you for being good managers of the money He gave you. We've all heard the story of the master with 3 servants, who gave the first servant 5 talents, the second 2 talents, and the last one 1 talent. The first 2 used their talents and made them grow, and I think, if I remember correctly, they at least doubled their money at the end of 1 year. The 3rd guy buried his talent in a hole for fear of losing it, and the master was displeased with him because he hadn’t used it to do anything with.

Basically, it's like this. If you can’t afford to live on 90% of your income, you can’t afford to live on 100%. If you can't show God that you are smart with your money, He has no reason to reward you with more. People say they can't afford to tithe, but I say; how can you afford NOT to? Yep, my 10% a month is a big chunk of change that could certainly go towards my debt snowball. But as luck would have it, if I didn’t give that 10% per month to the church, my financial luck would diminish. I'd have broken down cars, and medical expenses, other unexpected costs that my poor little baby emergency fund couldn’t not Murphy Repel for me, and then I‘d need that 10% - OR MORE - to cover those catastrophes. I am not willing to take any chances. God blessed us when we started obeying. Why would I start disobeying now?

http://www.daveramsey.com/article/daves-advice-on-tithing-and-giving/lifeandmoney_church/

Coupon Junkie

I went to a couponing class last night and I learned SO MUCH about how to save alot more money on my groceries and household goods. Apparently, there is a difference between combining coupons, and stacking them. Combining means using 2 manufacturer, store, or competitor coupons at the same time. Stacking, on the other hand is when you have a manufacture coupon in conjunction with a store coupon and possibly even a competitor coupon. Combining is not allowed. Stacking is.

If you wait until items go on sale - especially B1G1, and stack with a manufacturer coupon, store coupon, and competitor coupon at the same time, you may end up getting your item for mere pennies.

Some couponers make a game of trying to flip their bills. This is when you save more than you spend. I had a small shopping trip tonight, but I had my first flip! I bought 4 items: 2 bottles of Aleve ($3.49 each), a bottle of All laundry detergent(6.49) and a bottle of Clorox bleach(2.19). Total Regular Price: $15.66.

I had coupon for $5 off 2 bottles of Aleve. New price, 1.98.
All detergent was on sale for $5.99. I had a $1 off coupon. New price: 4.99
Bleach was free with the purchase of All. New Price: $0.
New Total: $6.97 + tax.
Savings: $8.69.

I could get used to this.

I talked to Jonny, and we're going to clean out the front coat closet and make rooms for more shelf space in there for household and pantry items. The coupon class taught me that the way to save so much money was to buy it with stacked coupons, while they are on sale, and to stock up as much as you can when they are on sale.

Ebay is a good place to find coupons if you're too lazy to look for them yourself. Southernsavers.com is a good site to check out for upcoming coupons that will be available, and what the best way to use those coupons are.

I cant believe I never knew you could stack coupons...and use competitor coupons. Oh my goodness.

New Goal: Cut my Grocery and household budget in half. By doing so, I'll have an extra $200 a month to put to the debt snowball. Lets see if I can make it work :)

Our Current Monthly Budget

---Totals---

|Budgeted| 4133

|Income|   4133

---Incomes---

GIBill                   1581

J Disability             123

A Disability             123

Omega                    1153

Omega                    1153

---Charity---

Church (147*2)           294 (2  * 10% of pretax earnings)

AXiD                     10 (Donation to AXiD Foundation)

---Saving---

Sinking Funds            300 (Car, Life, Rent Ins, Car Tags)

Savings                  443 (Vacations, Clothes, Car repairs)

---Housing---

Rent/Water               795

---Utilities---

Storage                  40

Electricity              130

Mobile Phone             142

Cable                    110

---Food---

Food & Household         400 (Groceries, household)

---Transportation---

Gas & Oil                125 

---Medical/Health---

Medical                  45 (Copay and prescription)

---Personal---

J Blow                   100 

A Blow                   100 

---Debts---

Student Loan             126 (interest only, for now).

Corolla Loan             278

NFCU Loan                325

NFCU Visa                100

CUGA Visa                270 (Next in the debt snowball)

Those of you who are familiar with $0 based budgeting will understand that every dollar must have a name to it. It took us about 3-4 months to lock in a good budget. Sometimes some numbers need to be shifted, or altered slightly. For example, phone is usually $141.23, which leaves me with an extra $0.77 but I prefer to round up rather than rounding down.

I'm trying to find a way to trim the fat on my budget some more. Downgrading our phones are not an option, we use them both too much, and it's not something we are willing to cut corners on at this time. I would love to find a way to save on cable, but I need high speed internet due to my online classes.  I think I can cut the food and household budget, but I need to get better about finding coupons and deals for things we actually use and need. If I could cut $50 or $100 from there, I would put it toward our debt snowball to pay it off quicker....

I think one way I could do this would be by tracking how often we're purchasing certain household items - Prilosec, razor blades, stuff we buy in Bulk at Sams that last "a while" but I dont really know how long "a while" is, I just buy it when we run out...

Hmmm...Just thinking out loud at this point...

*edit* I forgot to mention, and felt I should clarify...the reason our savings is so much is because we REALLY do not use credit cards anymore, and over the last year, I've learned that my "security gland" that Dave talks about in his book, is pretty big. We have this money going to our ING savings account, in which we have multiple savings accounts bookmarked for certain things - summer vacation, graduation cruise, AXiD Conventions, hair appointments, major car services, etc etc. Daves book will tell you you aren't supposed to save in baby step two, you're supposed to be knocking out debt. That's correct...but his plan is also about changing your lifestyle. If you go SO gazelle intense that you don't leave yourself wiggle room for fun, you could fall off the waggon and revert back to bad spending habits. As you can see from my previous posts, I KNOW that I am prone to this, and so in order to avoid it, rather than paying that extra $400 a month to debt, like someone hard core would probably say you should do, I put it to savings so that we can have fun and not feel so deprived. Some folks may disagree with this and say I'm not intense enough, but  I look at it as no different than an additional sinking fund. We have cut back on so much already that I am not ready to cut back further, and feel so restricted that I can't be successful. We're successful right now, doing it this way, and I want to keep it like that.

okay, off my soap box now... :)