From the category archives:

update

The Budget, an update

December 29, 2009 in budget, dave ramsey, update

I know it’s lengthy, but I tried to recap each month quickly so you get the idea.  Please feel free to ask any questions.  I know it seems crazy at first (and we never had any credit card debt or anything else substantial like that), but it is really working well for us.

December ends month three on the budget for us.  As a refresher, we have
-paid off our second mortgage
-switched to an all cash system
-started a debt snowball to pay off our van and student loans
-are on our way to being debt free.

October was definitely hard.  It was the first month on the budget and we were planning our girls’ birthday party.  That was tough, but we did it, and ended up still paying some extra money towards our van (what we do with any extra cash at the end of the month).  We discovered that we can eat out (using the term loosely) for $20 a week, and our family of four can do fine with $80 a week for groceries.

November went very well.  We actually had the girls out of daycare for a week (as we are allowed one free week off) and got a referral bonus, so we had quite a bit of extra money and ended up paying quite a large extra payment on our van.  We have found that while our health insurance isn’t awesome, we are thankful for our health savings account which allows us to save money tax-free from every paycheck to use for medical expenses.  This comes in handy when you have to take your daughter to the urgent care clinic, the ER and the orthopedic doctor twice in one month.

December was the hardest yet.  We had to budget for Christmas.  However, while it was tough sitting down and crunching numbers, it was a lot easier knowing exactly what we had available to spend and knowing that we couldn’t spend anything extra.  And with two days left in the month, I think we still have a little extra money!  Quite the success.

One thing I’ve definitely learned, is budgeting has helped our relationship a lot.  I am not a person that likes Mr. Serious to buy me gifts.  Why?  Because it’s my money, too, and I don’t want it to be spent on silly things like jewelry (I know..don’t shoot me) or flowers.  That’s just me.  And, even when it came time for Christmas, previously, I was upset that he spent too much.

This Christmas combined with our anniversary, however, we both had an allowed amount to spend ($50 total).  While it was really hard to make this gift something nice and enjoyable, we both found that we appreciated our gifts that much more.  More importantly, I was truly appreciative of my gift, and didn’t get upset.

So, I think the habit is set.  And, we are doing well.  We are still on course to pay off our van (and have my student loans written off) by this summer and I couldn’t be more excited.  In fact, I don’t even think about using a credit card anymore….but I still have the numbers memorized!
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Mid-October Budget Update

October 19, 2009 in budget, dave ramsey, update

Since you all asked for it, I thought I’d update you all on the budget.

October is the first month of our new budget…as a recap:
-pay cash for everything (except online bills which come directly out of the account).
-only spend money that has been accounted for in the budget.
-maximize debt payoff (car and student loans).
-set up and establish our emergency fund ($1000).
Some things are much harder than others. Before, if I wanted to treat myself to something (we’re not talking huge here…a pumpkin spice latte, a treat, etc), it was no big deal. Now, I only have $20 blow money this month, so I can’t just do that.
Also, all of our cash is divided up into envelopes. So, each trip to the grocery store or out to eat, for example, must be accompanied by the corresponding envelope. It’s tough to remember. This week was the first week Mr. Serious forgot the grocery envelope. He used the debit card and we will reconcile our envelopes.
Target trips are such a serious temptations. Like brutal and borderline unfair. For example, when my sister was here, we went to Target for her birthday present, Natalie’s and Isabelle’s birthday presents, laundry detergent and diaper rash cream. I walked in and saw the $1 cookie sprinkles. I touched them. I had to have them. Then I realized that I didn’t have a $1 for them, and I sulked and put them back!
Once it was time to pay for everything, I had to use three separate transactions. Diaper rash cream went on the flex spending account, laundry detergent came out of the “cleaning envelope” and the gifts came out of the “birthday/gift envelope.” Fortunately, the cashier was super nice and understanding (she actually thanked me for my patience!)
We’ve also had some other unexpected things, like two electric bills due this month. I tried to call and change the billing date and they wouldn’t have it, so we had to figure that out, too.
Otherwise, I think we are on course. We might even have a little extra money left over at the end of the month. If we do, we are going to pay it towards the van. We hope to have it paid off by mid-2010 (if not earlier).
On the student loan front, we are only paying the minimum as we hope to get the rest of the debt cancelled or significantly reduced because I have been teaching at a Title One school for 5 years.
And, the second mortgage has been paid off. WOO HOO! We got the paper work earlier this week and it is now hanging on our fridge.
So, there you have it. The mid-October 2009 update.
Thoughts? Opinions? Ideas? They will be greatly appreciated!
(And, I’m still looking for more sources of free Starbucks gift cards…I love those PSLs and my $20 will only buy 4 of them!!)
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