Define 'savings'. It can mean preserving, as a verb, and it can mean reducing an expense, as a noun. Save can also mean to keep safe or intact. These definitions really show a major difference in the way one thinks. Has anything in your life journey set apart these definitions for you?
Once upon a time, when I was shopping myself into bankruptcy, I thought getting a $10 item for $6 was 'saving'. I used to think that using coupons 'saved' me money. The truth was, I was using 'reduced prices' as an excuse to buy things I didn't need, and probably didn't even want. I know I wasn't 'saving' because I didn't even have a savings account.
In the early part of 2008, things had started becoming really bad for us financially. Most months we couldn't even meet our fixed expenses, let alone put any money away for the future. This is when I discovered Gail Vaz-Oxlade. I started watching her show, Til Debt Do Us Part, and started feeling somewhat better about our situation. I told myself that those people had far more debt than we did, and we would never be like them.
I think I was dillusional. Turns out, we were exactly like those folks on t.v. We had tens of thousands of dollars of debt. Most likely it was in the neighborhood of $65,000, but I'm not entirely sure. I started looking at our payments, and figured out how to reduce our expenses so that we could start getting a handle on our debt.
Now, two years later, we still have some debt. But it's not at the level it used to be. We've paid off about $40,000 worth of debt in that time. And for the first time in my life, I have money in a savings account! Occasionally, when I find a way to reduce an expense(save-noun), I also manage to put that money into the bank(save-verb).
There are some uncertain times coming for us over the fall and winter months, and I am handling it all with a lot less fear than I would have in the past. I know that we can deal with whatever life throws at us, and not worry where next months rent or phone payment is coming from. This peace of mind is priceless, and I have Gail to thank for her wisdom and guidance.
Tuesday, September 14, 2010
Monday, September 13, 2010
Month challenge update
I was looking add $400 to the Emergency fund this month, to hit the $1000 goal. It seems that I may have been able to accomplish this in less time than expected. Let me explain.
As I stated in my Monthly Challenge post, I was able to contribute our regular monthly amount of $100 and carved $50 out of a 0% interest credit card payment. There were several other areas that I was looking at to find the other $250 needed. I found it in the least likely place, one of our fixed expenses...our rent!
The rent on our modest 3 bedroom apartment was slated for another rent increase at the beginning of October, from $976.26 to $996.25 per month. We were given the appropriate amount of notice. But I had questions. The lady in the rental office was as confused as I was as to why my rent was higher than others, and going up again. After some investigation, she found it was because we had failed to renew our lease.
B and I had a quick discussion, and agreed to sign another 12 month lease, with the rent being decreased from the current amount down to $959/month, which was what we paid when we first moved in two years ago. Yay us! A monthly difference of $37.25 per month than what we had budgeted to pay. That calculates into a 'savings' of $298 over the next 8 months. I budget yearly from June to May due to my contract. The only thing I need to do is to transfer the $250 from one account to the E-fund account, which is scheduled to happen in the next couple of days.
I will have achieved my monthly challenge goal in under 15 days! The additional $48 dollars from the rent budget will be left in the rent account to earn interest with the rest of the rent.
Cutting back in other expense areas hasn't gone as well as I had hoped, so there is no money being transferred to savings from there. I am still saving $5 bills and pocket change to roll at the end of the month. I'm hoping for $100 from this action. Contract work has come in, to the tune of about $400. To get ahead on the next goal of increasing the Xmas fund account to the $1100 goal, I will put 25% into that. Another 25% will go into the biz saving account (for things like taxes and new equipment). The last 50% will go into the household account for October's expenses.
It looks like I will have to work on 2 goals next month anyway, so getting a head start on them isn't such a bad idea.
As I stated in my Monthly Challenge post, I was able to contribute our regular monthly amount of $100 and carved $50 out of a 0% interest credit card payment. There were several other areas that I was looking at to find the other $250 needed. I found it in the least likely place, one of our fixed expenses...our rent!
The rent on our modest 3 bedroom apartment was slated for another rent increase at the beginning of October, from $976.26 to $996.25 per month. We were given the appropriate amount of notice. But I had questions. The lady in the rental office was as confused as I was as to why my rent was higher than others, and going up again. After some investigation, she found it was because we had failed to renew our lease.
B and I had a quick discussion, and agreed to sign another 12 month lease, with the rent being decreased from the current amount down to $959/month, which was what we paid when we first moved in two years ago. Yay us! A monthly difference of $37.25 per month than what we had budgeted to pay. That calculates into a 'savings' of $298 over the next 8 months. I budget yearly from June to May due to my contract. The only thing I need to do is to transfer the $250 from one account to the E-fund account, which is scheduled to happen in the next couple of days.
I will have achieved my monthly challenge goal in under 15 days! The additional $48 dollars from the rent budget will be left in the rent account to earn interest with the rest of the rent.
Cutting back in other expense areas hasn't gone as well as I had hoped, so there is no money being transferred to savings from there. I am still saving $5 bills and pocket change to roll at the end of the month. I'm hoping for $100 from this action. Contract work has come in, to the tune of about $400. To get ahead on the next goal of increasing the Xmas fund account to the $1100 goal, I will put 25% into that. Another 25% will go into the biz saving account (for things like taxes and new equipment). The last 50% will go into the household account for October's expenses.
It looks like I will have to work on 2 goals next month anyway, so getting a head start on them isn't such a bad idea.
Friday, September 10, 2010
Are you prepared for the holidays?
There are only 106 shopping days left until Christmas. Can you believe it? This year has flown by much faster than I could have ever imagined. I'm still trying to get my Xmas fund account up to where I would like it to be. So far, I've only saved $450 of the $1100 goal, but that is $450 more than I've saved up in advance in any of my previous years. I'm hoping to be able to add some money from contract jobs over the next couple of months, however I will work with whatever I've got. This will be our first Xmas without any sort of credit or loan whatsoever, and I'm very proud of that fact!
I start thinking about the holidays sometime in June, shortly after my MIL's birthday. This year, I had a conversation with DD1 about not 'buying' anything for B & I, instead I would prefer something that involves her spending time with us. Her holiday budget is going to extremely tight this year, with the baby coming and all.
Oh, I forgot to mention that I'm going to be a grandma for the first time. DD1 is expecting, and the baby's due date is December 26th, which also happens to be B's birthday. The gift of making me a grandparent is greater than any thrift store find she could ever come up with, so I've told her there is no need to 'give' me anything this year.
There are gifts that I planned to make last year, and ran out of time to make them, so they got bumped to this year's gift list. Here we are into September, and I still haven't started any of those projects. Good grief, I really should get started on them.
What are your thoughts about the upcoming holidays? Have you saved money for the extra expenses? Have you planned gifts to buy and make? Share your ideas with me, please.
I start thinking about the holidays sometime in June, shortly after my MIL's birthday. This year, I had a conversation with DD1 about not 'buying' anything for B & I, instead I would prefer something that involves her spending time with us. Her holiday budget is going to extremely tight this year, with the baby coming and all.
Oh, I forgot to mention that I'm going to be a grandma for the first time. DD1 is expecting, and the baby's due date is December 26th, which also happens to be B's birthday. The gift of making me a grandparent is greater than any thrift store find she could ever come up with, so I've told her there is no need to 'give' me anything this year.
There are gifts that I planned to make last year, and ran out of time to make them, so they got bumped to this year's gift list. Here we are into September, and I still haven't started any of those projects. Good grief, I really should get started on them.
What are your thoughts about the upcoming holidays? Have you saved money for the extra expenses? Have you planned gifts to buy and make? Share your ideas with me, please.
Thursday, September 9, 2010
Volunteering
I have agreed to volunteer for for the next two Saturday evenings, during the Western Fair, for three hours each evening with a charity call "Keeping Kids Warm". These fine folks knit various items for children of all ages within our community.
http://www.keepingkidswarm.ca/
I wanted to volunteer for a group who has similar interests and ideals as my own, and Keeping Kids Warm seems to be a good fit. I have yet to meet the lady who heads this cause, but I am sure that I will find this experience a good one. I am looking forward to helping out during the fair at the booth, and knitting some things for them.
I used to volunteer a lot of my time with organizations, but lately haven't done so. I would like to improve that.
Do you volunteer, and how much of your time do you devote to the service of others?
http://www.keepingkidswarm.ca/
I wanted to volunteer for a group who has similar interests and ideals as my own, and Keeping Kids Warm seems to be a good fit. I have yet to meet the lady who heads this cause, but I am sure that I will find this experience a good one. I am looking forward to helping out during the fair at the booth, and knitting some things for them.
I used to volunteer a lot of my time with organizations, but lately haven't done so. I would like to improve that.
Do you volunteer, and how much of your time do you devote to the service of others?
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