Financial Checkup

Money Saving Mom just posted her monthly 2008 financial checkup and encouraged all of us readers to do the same- so even though I haven't done this before, here are a few of our accomplishments from the summer:

1. As of this past spring, we are completely out of debt except for our home.

2. Once we paid off our car (our last non-mortgage debt) we took a month or so to enjoy our newfound financial surplus, then we decided to get back on the budget wagon and put the surplus to work for us by paying an additional 30% on our house payment, which we have automatically deducted from our checking account.

3. We also started Wachovia's Way-2-Save program, which puts a dollar into a special savings account every time we use our debit card or pay our bills online. This has taken us away from the cash-only system, but I love watching the savings increase, and the program has a great interest rate and cash incentives. 

4. Last month I implemented the $100/month maximum automatic transfer into the Way-2-Save account from our checking. 

5. I increased our weekly automatic transfer into our regular savings account by about 60% with the goal to have our 6-month emergency fund in place by this time next year.

Those are our accomplishments, now here are our goals!

1. Have emergency fund in place by this time next year, and just keep socking away extra money for it as soon as I do my weekly budget (my husband gets paid weekly, and his pay varies from week to week)

2. Keep on going with the Way-2-Save and hopefully have enough money within the next couple of years to purchase 

-new flooring for our kitchen (the peel-n-stick tile the last owners put in is starting to un-stick!)

-new windows (when you sit by the window and feel a breeze when it's not open- you need new windows! well, that and the wood rot on the outside...*sigh*).

3. Have our house paid off ASAP- right now we're on track to have it paid off in 11 years, but I say the sooner the better!

All in all, it has been a very productive year. The most important thing to remember is that you can't buy peace of mind- but you can save for it!

Any other thoughts on some good financial goals?

Timer Day

If your home is like mine, by the time Monday morning comes, the house is in some serious disarray! And when it's been a long weekend, like this past one, the aftermath is even worse. A messy home can drag you down and make you feel bad about yourself. It can also cause the atmosphere in your home to feel chaotic and disorganized. I firmly believe that the cheapest and best home decorating out there is simply to keep a clean and organized home. But as you'll read, it's often easier said than done!

Let me tell you what I faced this morning: a Mt. Washmore of at least 4 loads rivaled only by the peak of dishes in the sink (oh, and did I mention that the dishwasher is broken?), a floor that would be a dream come true for someone on the edge of starvation, and bedrooms that looked like a toy store exploded inside them.

I knew it all had to get done, and I knew I couldn't lock up my children in a closet while I did it, so I turned to my greatest inspiration, FlyLady, for guidance and direction in this my time of need. I implemented one of her favorite sayings- "You can do anything for 15 minutes!"- and planned a Timer Day.

Timer Day has 3 Rules:

1. Alternate between 15 minutes of family playtime and 15 minutes of Mommy work time- set the timer, and when it beeps- SWITCH! (and reset the timer for another 15 mintues)

2. Children must stay downstairs during Mommy's work time. If they don't, Mommy might not hear the timer on the stove and we'll miss out on playtime! When the timer goes off, it's the kids' job to tell Mommy, and it's Mommy's job to drop what she's doing and go PLAY! (this would also work to keep kids in a playroom or a bedroom)

3. There is a 1-warning system in place. If Mommy hears fighting during her work time, she will give a warning. If the fighting continues, she will send both children to their rooms to play alone until the next family playtime.

These rules actually proved to be quite effective today! I conquered both Mt. Washmore and Dishes Peak, the smorgasboard on the kitchen floor got devoured by the vacuum cleaner and licked clean by the mop, and the toy store shrapnel was safely put back into toy boxes and on shelves where it was rendered harmless to bedrooms everywhere. 

But the best part?

My kids and I built a magnificent castle out of blocks, had a roaring round of pass-the-ball-and-pretend-to-be-an-animal, played a highly competitive game of CandyLand, and read 6 books together. 

It was a win-win situation. My home was clean, my kids felt happy and loved, and I felt at peace knowing I could strike a balance between the two and fulfill my responsibilities as both a homemaker and a mother. And after naptime, my 4-year-old said, "Mommy, can we do another timer day again PLEASE?" 

I think I may just have to do that. :-)

Have you found any effective strategies for cleaning and corralling children at the same time? If so, please share in the comments section!

Give a Little Bit

All weekend I have been following the progress of Hurricane Gustav, as I'm sure many of you have. As I watched families having to leave their homes, unsure of what the future would hold, it got me thinking about what I can do to help.

One of the reasons I work so hard to be thrifty is not only so my family can benefit, but also so that I can have more to give to others. I'm not sure that my surplus of drugstore toiletries would be of help for those affected by the hurricane, simply because of the cost and difficulty associated with shipping them. But I feel blessed that I have saved enough money by doing couponing and other thrifty activities that I have a surplus (albeit small) of cash that I can pass on to agencies like the Red Cross who can allocate the funds to areas where they are most needed.

For those of you who do live in an area where the donation of goods can be useful, I would like to encourage you to do so. And for those of you who are removed from disaster areas, I would encourage you to give of the money you have saved by sending it to charitable organizations that can help those in need.

Recently, I spoke with the Relief Society president at our church about ways that I can donate my extra items to families in our area that may be in need. She happily showed me a closet with an extra shelf cleared off where she told me I could bring my items (toothpaste, shampoo, deoderant, etc.) and then she and the other service leaders could pass it on to families that were having financial struggles. Again, I would encourage all of you who have an excess of these items (and if you do serious couponing, I know you do!) to look for ways to use your blessings to bless others. Unto whom much is given, much is required.

Have any of you found ways to bless the lives of others with your thriftiness? If so, please share in the comments section!

New $3/$15 CVS coupon!

 

I know I said I'd try to keep couponing posts off this blog, but this is an important announcement- there are $3/$15 CVS coupons on the back cover of the September issue of Richmond Parents Monthly magazine here in Richmond, VA! So for all of you who live in the area, pick up a couple (please don't clean them out- I will be so sad!)!

And for those of you who are outside the metro Richmond area, I will pick up a few extra and I will soon host a giveaway so that everyone can share in the joy! Don't miss it- check back often!

Happy CVSing, everyone!

Friday Night is Date Night! How's Your Love Life?

 

Okay, so I don't want any gory details or anything, I just want to know if you've tried out any of the fun and frugal date ideas from the past 4 weeks! If so, 

Was it a success? 

Is there anything you would have done differently? 

Have you thought of any more fun date ideas? 

Post a comment and share your thoughts!

On the Road to Financial Freedom: Part I- The Beginnings of a Thrifty Life

I was just reading a post on Money Saving Mom about budgeting, and at the end of the post she asked the readers to post a comment about when they started budgeting and what inspired them to do so. 

Well, I left a fairly lengthy comment on there and I thought it would be a good topic for a post on my blog, and then I thought it would be a good jumping-off point for a series of posts I have been thinking of doing about my own personal story with my finances.

So let's go waaaay back to the beginning to start... (insert chimey music here)...

Childhood

When I was a kid, I got an allowance. I remember that I kept it in a jar, and I was definitely a saver. Counting all my quarters and dimes and nickels and pennies was a frequent and enjoyable activity for me, and I can still remember the thrill I got when my little jar of money reached the $10 mark. I really thought I was rich! It was just such a good feeling to have the potential to buy something I wanted. My parents would even occasionally borrow money from me and leave an IOU in the jar. I was a tough creditor, and I always made sure that I got my money back!

The Teenage Years

As I grew into a teenager, the price tags on my desires got bigger. My mom decided to cut off the "gimmes" (as she called them) before they could get out of control. We were expected to do our share of the chores around the house (I had to vacuum, mow the lawn, empty the dishwasher, set the table, do my own laundry, clean the bathroom, etc.) and when I did I received a $50/month allowance. The stipulations were that:

1. I did my chores. Not doing them would result in either a hold on my allowance until they were done or a reduction in pay.

2. The money paid for all of my personal needs and wants with the exception of food and housing. I was to buy all of my own toiletries, makeup, clothing, and treats.

This was a very effective system for our family, because we knew that we were never to go to our parents to ask for money or things (I think they wanted to start this habit early in preparation for our college and newlywed days!) and it made us solely responsible for the money we received. I remember thinking it odd to see my friends go to their parents to ask for money before coming to the movies with us. I thought they had it easy- their parents were like ATMs! But at the same time, I knew that my $50 allowance was a real gift, and I felt like I had more freedom than they did because I knew that if I did what I was supposed to, that money was mine, and I never had to beg anyone for it.

I wasn't big on budgeting as a teenager. I remember I would keep a small savings of whatever was left over at the end of the month so that I could have enough to buy some nice Christmas gifts for my family at the end of the year (I love giving gifts- Christmas has always been so fun for me!), but I pretty much just spent as I went. There were times that I had to tell my friends I couldn't go out with them because I just didn't have any money, and that was a bummer but it taught me a good lesson- you have to plan ahead, and if you don't, you won't get what you want.

College

Moving on to college, I got my first bank account and my parents continued to keep me on an allowance, though I think it was raised to $100/month to account for gas (they liked for me to come home to visit) and other increasing necessities like school supplies (and parking tickets...). But I was on a meal plan that they paid for and I remember going for weeks without spending any money at all. That first bank account was a lesson for me, though- I learned quickly that if I didn't keep track of what I was spending, it would disappear quickly, and overdraft fees are no joke. So I started tracking my expenses.

It was during the summer after my freshman year that I got my first job, and so I suddenly had a lot more money to work with (not really all that much, but it was a lot more to me!). It was then that I created my first budget. Looking back, I think I was a pretty smart college kid because I made my budget value-based. To create it, I gave myself a fictional $100 on paper. Then I thought about the different things I would want to use that $100 for. I made categories based on those things- clothing, entertainment, organization (at the time I really wanted to get my space organized), books and music, savings, tithing, etc. I used the amounts that I had come up with ($25 for clothing, for example) to create a percentage-based budget, which I used to divide my paychecks among the categories (a $200 paycheck would have 25%, or $50 designated for clothing purchases).

The budget worked well, when I used it. I learned that I enjoyed the freedom of having money set aside for different things. The budget was only on paper, but occasionally I would allow "transfers" from one "account" (category) into another to accommodate a larger purchase. Since my purchases were pretty much all wants, it didn't affect the overall plan very much, and it forced me to really think about where my money went.

So that's where it all began. Looking back I can see how these early experiences shaped my views on budgeting and my overall approach to earning, saving, and spending money. For my next post in the series, I will talk about my newlywed years, and how budgeting became not just a form of organization, but a thoughtful financial decision for my life.

How did you handle your finances when you were young? How do you think it has affected the way you deal with your money now?

 

Easy Deals of the Week: Free Glade Plug-Ins and Frank's Red Hot Sauce!

Welcome to my first Easy Deals of the Week, where I show you how you can get a deal using only the coupons from the most recent paper, or printable coupons from the internet.

*This week at Walgreens, Glade Plug-Ins Scented Oil Warmers are on sale Buy One, Get One Free. There was also a Buy One Get One Free Coupon for these in Sunday's paper (8/24) in the SmartSource insert. Get two and use the coupon with the sale and get both free! (Trust me, it works!)

*This week at Rite Aid, Frank's Red Hot Sauce in on sale for $0.99. There was also a $1/1 coupon in Sunday's paper (8/24) in the SmartSource insert. Use the coupon with the sale and get it free!

I hope you enjoyed these Easy Deals of the Week- if you are a veteran and you see any more that are easy, let me know!