Budget stuff

On occasion I like to look at my debt - income ratio situation. Actually, I look at my finances all the time. I'm an odd bird. I like to know what's going out and coming in and if I'm on track at all.

Life took a few unexpected turns the past 3 years or so, and now I'm finally feeling like things are getting sorted out. I believe if a person is going to live (and, better yet, thrive) on a budget then you have to be super-diligent with it. I am not perfect by any means, but I've come a long way in my adult life in this area. :)

I'm still keeping monthly necessities to as much of a minimum as I can. I've even considered giving up my Netfl!x, but I don't think that $9 a month is a big deal. It's when you have SEVERAL of those things that it becomes a real bill to worry about. Money has been pretty tight around here for awhile, and I know that $10 is nothing really... but it sure can add up quick. (try adding up all your "little", insignificant expenses sometime)

Anyway, having another person in the house, the electric/heat bill has gone up considerably, as has our food bill. These are to be expected. Question is, how or if either can be brought back down at all. The electric bill is always much higher in the winter than any other time, even in the summer, for me.

No 'aha's' here... just thoughts. The one thing that has been of concern is my dependent account and having to pay daycare out of pocket this month, as opposed to that acct. That takes a bit of planning, 'cause DC ain't cheap kiddos. lol.

I wonder how people handle daycare if they got divorced and their child has to be in full-time DC vs at home. I mean, that'd be all of your child support, I'd think... or it might not even cover the full cost. Of course, I do not have that concern, but I do wonder how others handle that.

The past 6 weeks has given me an idea of what kind of costs might happen if I had number 2 permanently... that's sort of scary financially... but doable. Definitely would require more planning and diligence than even now.

Peace.

Budget update

I had to tweak the budget this month because I'm converting from a consultant at work to full-time.

Good news is
- that our insurance is extremely reasonable (includes dental and vision)
- the company pays for short term disability
- the quite nice company match to 401K contributions (after 1 year)
- that the company pays for a decent amount of life insurance
- that even though long term disability is paid by me, but is reasonable
- that the vacation is good, plus the actual days off for holidays give me more time with Lil M!!

The Not so good is the pay cut, of course. So, I had to revise the budget. The loss feels bigger than it probably would because I'm starting 401k contributions again. I know the market took a huge hit this year, but I'm a big believer in saving for retirement. I'm only putting 6% in, to start, but once they contribute that'll automatically double. Plus, they give an automatic 3% on top of that! So, next year, It'll go up to 15% without me doing anything! Woot!

I have to remember this when I look at my monthly income, though. Yikes.

The other good news is that Sis got a small raise where she works. So, that'll help. She's made huge strides since all the crap happened with ex-hubby to get back on her feet. And this is good for her. I still hope she gets her resume together, though, and eventually finds something else. They don't treat her that well there, and have taken advantage of her (mainly in salary).

I'm still working on getting the debt paid down. To date, Sis has one credit card paid off. As of this month, that'll be 2. Sweet! For me, I have paid off 3 credit cards, and have 3 more plus the line of credit to go. I'm still on target to get 2 more paid off by September. Which leaves just 2 big bills left. Sis will take much longer than that... boy, is divorce expensive. (i'm glad she's almost done with all of that, for many reasons... the least of which is money related!!)

Peace.

Basic Budget

I thought I'd write my thoughts about creating a basic budget. I know this might seem, well, really basic... but that's all it needs to be! Sometimes I think we make things much harder than they need to be!

I've got my budget complete, and it includes all of these, and then some.

1. House payment or rent
2. Car payment (even if you don't have one, i suggest starting to pay yourself)
3. Home upkeep bills - phone, cell phone, cable/satellite, water, sewage, heat, A/C, electric, internet...
4. Debt - credit cards,
5. Insurance (health and life and car and home...) the insurances that are a must are car and home/rent. the other two, well, i hope you have.
6. Groceries (start with what you know, then write down what you eat monthly for each member of the family for each week.)
7. Gas allowance and car miscellaneous (oil changes and the like)
8. Lunches
9. Pet food and such (dog food, cat food, cat litter...)
10. Vet bills, dry cleaning, etc.
11. Savings allowance
12. Fun allowance

Write it all down. Put a realistic/actual bill amount next to each item. Add them up. Do they add up to your monthly income? Are you over extended?

The next step is to figure out where/how you can cut back, if you are over extended, to be within your budget.

The step after that is to pay down your debt. Take one credit card and pay it off. Feel good. :) Do it again (if necessary).

Save an emergency fund.

Start paying yourself in advance... 401K, savings, IRA, CDs...

For me, I'm paying down debt. I've cut back, way back. I've never lived over my budget, or so I thought. But when you add the credit cards... you see it all adds up and you're likely over budget. Or why else would you use your credit cards every month? Right? You say you don't need it, but think about it. I don't like having to rely on them. The interest is obscene.

I put some of my savings into CD's this month. I use a Credit Union (which I HIGHLY recommend if you can get into one where you live)... because they always have higher CD rates than the normal banks.

By coming up with a plan to get things paid off, I can get my savings boosted back up here soon!! That feels really good :)

Peace.

Sis update

Sis has officially gotten custody of my nephew! They are still following the shared parenting, so it doesn't change much until the fall, when she can put him in the school by her. But, I hope this bodes well for the final divorce hearing in june. God, please. It's been a rough go for them, but Nephew needs to be with his Mom. That is for sure. I hope it happens soon.

But for now, we're relishing the tiny win of custody!! :D

Sis seems to be doing a little better overall, too. She doesn't get paid what she's worth at her job, and I"m trying to convince her to try to get the to give her more money, or move somewhere else where she can get more. It'll take time, but it is a definite need.

As for me, I got a new cell phone this week. I love it. I've been trying to lower my monthly budget bills, and this was one way. Which means other things can get paid. It also means Sis won't be on my plan for now, but that will actually save us money. So, let's see how it goes. I felt kind of bad about it, but I think it might work out OK. And, I'm totally digging the fact that my new cell phone battery is still at 3 bars, and it's been since Wed that I got it!!! WOOT.

I'm looking into digital home phone service, to see if I can cut another $10 a month off that one. It has been a pain in my behind for awhile... I don't use it much at home, b/c I use my cell... but I feel like I need the basics... which seem to stay around 40-50 each month! UGH. So, I'm determined to make a change somehow. Even if that means getting a 2nd cell and keeping that one at home or something. I don't know yet.

Sis has the same issues. So, we've been working on our budgets for this year. Really trying to be more frugal day to day... My number one goal this year is to get my credit cards paid off. Must.do.

I realize that it seems kind of silly to nickel and dime some bills... but I live by the rule that EVERY LITTLE BIT COUNTS. :) so... there you have it. If you're trying to budget, just remember that encouraging little tidbit. 'Cause it all adds up. Believe you me.

Peace.