Update on last 3 months
I have gotten off-track the last 2 months, not having paid anything extra towards debt in August or September. But I’m making up this month with a relative vengeance. Oh, and my current debt totals are up to date on the side-bar.
August I bought a semi-expensive digital camera for $600 and went on a mini-vacation/photo trip to Montana. Spent about $1200 total including film (much of it left over), food, motels, and of course, gas! I used part of my (previously paid-off) Personal Line of Credit to pay for this, partially to keep the account active so they wouldn’t cancel it or reduce the limit.
September saw me buying some clothes. I *finally* found a winter coat I liked; I’ve been looking for 3 years. Grand total, $311. I didn’t quite have that money in my mini-funds, so most of it is being paid off by me not paying towards my debt.
October didn’t start so well. My boyfriend had a big birthday. A friend made plans to go to a nearby city and have a big weekend (plans made and agreed upon between them, before I even got involved). I couldn’t not go, and truth be told I wanted to, but staying in an expensive hotel, going out to eat/drink all throughout the weekend, and the gas, completely didn’t help. Since it was the beginning of October, it falls into my September budget (which goes through Oct. 5, the day I get my first Oct. paycheck). So the crashing and burning only went for 2 months, and didn’t get extended into October! Small mercies, right?
Which brings us to this month. I lost a full paycheck day to being sick (my sick leave is now kaput) with a nasty 5-day flu. There are some short 10-day paycheck periods coming up, and I am trying to hoard my vacation time (it’s now about 36 hours). I have been trying to keep from going food-shopping all the time. That has been a downfall in the past. You know, the quick trip to pick up one item that turns into like 5-10, and that $5 purchase balloons into $30. A few extra of these every week and Whoa! Nelly! What a huge ding on your food budget. Well, at least that’s how it works at my house.
So I’ve been sticking with the food I have purchased. I tend to get bored with the same food over and over, but it’s a habit I’m trying to deal with. I ran out of goat cheese. Rather than go to Costco to buy more (it goes great on salads), I’ve been doing without. I’ve been making a little bag of baby cukes go into 4 side dishes rather than go buy something new. I’ve been foraging out of our p-patch garden for things. If I’m out of fresh bread, I use crackers as a snack instead. So far this month it’s been working really well. It’s something I definitely need to keep on top of regularly however.
I’ve also been curtailing the restaurant spending at night and cooking at home. I haven’t gone out for lunch in quite some time. I did buy a bunch of cheap frozen meals < $3.50, which I supplement with a piece of fruit, oatmeal as a mid-morning breakfast, nuts, that kind of thing. I still get a hot chocolate or other coffee beverage, but that’s really gotten cut down. I do this maybe 2-3 times max per week. I wish I could cut this more, but I’m at least going out less to coffee shops on the weekend. Coffee at home has definitely been the savior.
So I’m getting back on track. I avoided tracking money since I was doing so badly at saving the last 2 months, but I’ve at least gotten everything put into my excel spreadsheet. I’m doing really good this month! I’m proud of myself. Now, if I can only keep on track. Where are my blinders?
Gotta get serious again
I think I’m getting lazy and resting on my laurels a little too much lately. I’ve recently posted about a bunch of big purchases ($200-$600) that I’ve needed; those I don’t regret purchasing. But I’ve noticed that I’ve been easing off the debt/budget bandwagon and spending more than I ought to. I haven’t been getting serious about prepping food in advance for when I need meals outside of home. I’ve been splurging too much at restaurants. I’m buying more stuff than I need when I go to the grocery store.
My budget for the past 2 months definitely reflect that. I’m over, not a ton, but enough where it impacts how much extra I put towards debt, probably about $100 or so. A comment on a recent post about being ok taking 5 years to pay off my debt chided me for not needing quite that long, and ya know, they’re right!
If I think about every day, no, I didn’t have to buy that $4.75 (tip included) mocha when I got up late and didn’t have time to make coffee at home – I could have sucked up the semi-bad (but free) drip coffee at work and dealt with it. No, I didn’t have to go pick up a fast food burger and fry. I could have had something small, carried it with me, gone to my photo lab assistance gig and come home at 9:30 and had a late dinner.
I’ve got to tighten up my minor spending habits – I’m doing ok on the bigger stuff, but the small stuff, yes, I need to sweat it more than I do! I think this is going to be my biggest hurdle in following a budget – I don’t really. I use it as a rule of thumb and then oh well, I’m over this month. That has to change. It will be hard, and I guarantee you’ll be reading more about this in the future.
Marathon, not a sprint (my extra monthly spending)
I have bought things in the past few months that I haven’t budgetted for. Really, it’s not surprising. Prior to starting my debt payoff journey in October, I had spent most of last year denying myself things and saying I couldn’t possibly afford to buy things. So I didn’t!
Since December, however, along with thinking carefully about my spending habits, and being so focused on spending and saving, I realized that even though I was trying to save, there were things I really did need to purchase. So I spent lots of time researching how to extend my buying power, which is something I never used to do.
Almost every month I’ve spent an extra $200-600. In December I finally replaced my 5+ year old clunky half-broken computer ($615). In February I bought a used road bike ($200). Last month I signed up for an art class to help push my photography in new directions (tuition cost: $0 – I am doing work trade for the $630 cost). The class materials will be very high, so I expect to spend $250-300 by the time the class is over.
Mixed in with that, my art show spending has been significant. Framing costs for a show in March ($200), postcards ($50), and an upcoming show, $330 (I overspent this month due to an unexpected 15% coupon for custom framing – I’m buying everything I expected to buy during the summer now to maximize my savings) for matting for some frames I’ll be using this year. I expect this will continue to be a high expense and I have recently upped my budget to $100/month for photo spending. I should probably make it $200.
Yesterday I finally bit the bullet and ordered Photoshop CS3 for my new computer. I have a really old version, but I can’t load it on my new computer, since the OS is too fancy. I had been avoiding the purchase, since a new copy costs about $650, but now that CS4 is out, there are deals to be had. I bought a copy for $146! This is on my credit card, since I purchased it on the internet and I refuse to use a debit card there. That expense will hit the May budget.
As for future spending, the only thing I can foresee is a trip to Alaska ($300-400 max), but I’m trying not to do that to save the money (I’d like to go, but it’s more my bf’s family obligation).
Is my spending out of control? I don’t think so. I guess I look at this debt payoff journey as a long, maintainable system, rather than a sacrifice everything and live on the minimal edge to pay off debt as quickly as possible. You know, a marathon, not a sprint. I am still paying $400 extra a month on debt, beyond the minimum payments. I am going to try and bump it up to $500 this month and going forward. I still think I will beat my deadline of May 2014, but I won’t sweat it if I do it slowly.
Still spending on small indulgences
Last week I did amazing. I brought lunch to work every single day. I also made coffee every morning before going to work, and didn’t buy any extra cups or snacks once. This week I’m not doing badly, but I got tired and instead of scrounging late at night for dinner, we elected to go out for a cheap meal (meaning I didn’t get a drink) which also doubled as lunch today.
Today was super cold, and a coworker asked me if I wanted to walk and get coffee down the street, so I went and bought a hot chocolate, which I didn’t need and didn’t even finish. $3 with tip. And right now, I’m sitting in a coffee shop to use the internet for a few hours with the bf who is studying for his legal paper assignment. I am mega hungry and bought a day-old croissant and tea (the cheapest things I could find). $4 with tip.
Oh well, while I’m not rabidly spending, and while I try to minimize what I do spend, I still need to reign in the small indulgences. There’s just something about going to a coffee house, sitting for several hours, reading blogs and email, and using the free wi-fi. At least I carpooled this morning, so I saved on gas for a change (my bf and I work at the same place, though we have slightly different hours).
New Computer, No Work, More Snow
Beware of shopping! My neighbor has helped me show for a new laptop, giving me some insights on some other brands besides Dell (my original) that would work, and for cheaper! I found a few good ones, then bf dragged me to office depot 3 days ago and they had a great deal on a better version. I had them put it on hold, went home to comparison shop and check reviews, and found it even cheaper online! The store said they’d extend me the same price, so I got a brand new Toshiba Satellite L355 wide-screen laptop for $580+tax. That’s a bunch cheaper than the $900 I expected to pay.
I put the whole thing on my credit card, but I can pay it off this month I think if I dip into my EF a little (after all, I was planning on this purchase and I’d rather not have the credit card rate apply). So I’m happily playing on my new computer, putting it through its paces. I’ll try and load the various software that I have and see if I can still use it, or if I have to buck up and buy software. For right now i’ll do without. At least I now having a working CD drive (and I can even burn DVDs now, hoorah!).
The bad news is that we had even MORE snow this weekend, and work is closed yet again (3rd day running). I have almost no vacation left to make this up. It will be a really bad paycheck in early January. Will have to make sure I’m really really lean on my budget.
I haven’t driven anywhere since Thursday, other than a mile down the street and back, maximum. I have been going to cofffee shops to use the internet, which means $4 a visit for the last few days, but I get a little stir crazy being stuck in 1 room (the only one with heat) at my studio, no bf (he’s housesitting and stuck elsewhere), and no netflix videos to watch, I ran out of my library books and can’t make it to a branch (there are lots of hills on the way there). Add no internet, and you’ve got one bored chicklet!
One of the few upsides – I haven’t bought much food. I’ve been going through what’s at home, other than a last-minute trip to costco (they are just down the street). I’m a bit behind on keeping up with my budget, but all of my expenses have been minimal, though I would love to stop for food for lunch since they’ll be warm, unlike my 30-40 degree kitchen.
One bright spot – my manager went in to work to get client names and numbers to call to cancel work. We got paid on Friday but no one could make it in. Today he called and offered to take paychecks around town for everyone. So he stopped outside my building (I’m on his way home) to give me mine! Yeah!!! I already brought it to the bank, they were closed, probably because of the weather, and I have a big bill due tomorrow.
Feeling Flush
I was under budget for last month. I got an unexpected $400 check (my deductible for a recent car accident dropped because it was with an uninsured car). I decided to not put it towards debt or savings but to leave it in my account as a cushion since I am physically unable to balance my checkbook, and because the first paycheck of this month is super small and wasn’t going to be enough for my normal bills. However, I will definitely put all future unexpected income towards savings/debt.
There is one income source that I have not disclosed. My bf gives me his portion of the rent in cash every month. When I started 2 months ago, I wanted to keep this as free money, which quickly became buying a new laptop when I saved up enough. I’ve decided to put that into savings and keep it as my emergency fund, so the EF is going to grow a lot faster than I ever intended.
So I have $175 available to spend until next paycheck, for groceries and sundry expenses. All my bill obligations for the first half of the month are now met and I’m feeling flush with money. I feel like I can afford to go out for a nice meal for a change (but I’m still not sure I’ll do that). I’m also realizing I should buy the bf a nice christmas gift (haven’t budgetted or thought about that for the month, but I’m not going to buy much for anyone else, so it won’t be too bad). In fact, I feel successful. What a change from 2 months ago when I came out of the debt lawyers office a nervous wreck, wondering about bankruptcy, wondering if I should do it (I elected not to) and how the heck I was ever going to get out of the black hole of debt. Just having a plan in place and knowing what to expect has been the best part.
Costco: only cheaper sometimes!
Do you shop at Costco or any other warehouse club? Some interesting reading:
I joined a few months ago after someone in my building kept touting their salmon burgers and a few other items. They have a location less than a half-mile from my apartment, so it would be easy to go to. I bit the bullet and joined, splitting the annual fee with J. I’ve gotten really familiar with what they offer, and what I like, and what I need, so I feel like I do it justice being a member.
I try and limit myself to my written shopping list. It’s now one of the 4 markets I go to regularly to pick up specific items. Here’s what I do buy:
- 1 lb clamshell mixed salad greens $3.99 (at least 1-2 dollars off anywhere else)
- 4 lb clamshells strawberries $6.99
- 2 lbs organic butter
- 10 lbs white sugar (see previous post on baking and cooking more)
- cheese: gruyere, p’tit basque ($8/lb cheaper than in a supermarket), parm-reggiano
- Pacific organic chicken stock ($9.99/6-pack)
- grey poupon mustard 2-packs (mmmm, mustard chicken over quinoa!)
- instant oatmeal (thought I’d try the 55 package for $12 – makes great breakfasts at work)
- 3 lb packages of salmon burgers ($11.99 or 12.99, a GREAT deal for wild salmon)
- 4 lb frozen small scallops – a great idea for salads, pasta, you name it. ($8-9)
- packages of raw nuts – great for baking, and way cheaper than bulk at the co-op
- gas – but only if I don’t find cheaper elsewhere!
However, be advised that just like the artical above says, it’s not guaranteed to be a good deal just because you are there (and again, beware of getting things you just can’t use or can’t fit!).
I’ve been burned at Costco at the very beginning, but I’ve learned my lesson, mostly. I do occasionally spring for something new, like the 2 lbs of battered Halibut. At $20, it’s still VERY expensive, but I like halibut over cod (even though it’s 50% higher in price) and it’s cheaper here than anywhere else in town. I don’t buy perishable things that I have doubts I won’t finish (like a whole tray of one kind of fruit).
Interesting reading. Remember to shop smart!
I’m not a spendthrift
I don’t have cable. I don’t have a landline, only a mobile phone. My vehicle is paid in full. I don’t “go on vacation” to exotic places, or frequently at all. I don’t go out to the movies every week. My boyfriend pays 1/3 of the rent (it’s all he can afford). I just got rid of my internet (that was a hard one). I live in a commercial space so the utilities are exceptionally low ($25 electric/month & $15 garbage).
I do spend money on good quality, organic food. I feed my pets high-quality food. I don’t have a second job. My vehicle is a gas hog, but I need it for the occasional high-capacity hauling that it can do that an economy car can’t.
So why am I in debt? I was afraid to know where I stood. I knew it “wasn’t good.” So I lived in denial, never looked, and was scared to even go online to my checking account and check in. I’d have overdraft fees, overdraft transfer fees, and even use my credit card because I didn’t quite know if I had enough in the checking account for something. I didn’t think ahead and ate out whenI got hungry, since I hadn’t gone food shopping, and it would take too long to go shopping, THEN cook. I bought things that I wanted rather than needed. I bought clothes new (not a lot, but what I did buy was about $50 per item instead of $5 used).
Worst of all, when I got out of school, I lived on my loans instead of getting a job right away. When I did get a job, I didn’t get a full-time one which slowed down the debt accrual, but didn’t stop it. This was a 2 year process from being out of school to getting a full-time, acceptable-salaried job. So if you consider I’m $45K in debt from not having a job or only a PT one for 2 years, I guess that explains it!
The whole point of this post is to show that I’m not a spendthrift, but even not, there are still lots of things to be done to tighten the belt and get out of debt.
My goal is that it will take me 6 years to get out of debt on my own terms. I think I can pay off $7,500 a year. This is based on me keeping my job at my current salary, no emergencies, and no big life changes. Wish me luck.
Emergency Spending
Been reading debthater’s blog (starting at the beginning of course) and it’s been funny how there always seems to be some kind of emergency hurting her finance an debt payoffs. I thought I’d chronicle my own from the past few months, since I’m sure they are regular enough to significant.
So far this month:
No parking in the building, parked across the street, didn’t move it before getting up, car got towed. $237.
Brakes have been seriously needing work. Was going to do a trip, and felt it was time; brakes are NOT something you want to mess with (or not have!). Brakes & rotors: $440.
September car accident (front and back impacts, not my fault, but who cares, I still have a deductible). Beyond the impact on my well-being, $500 deductable to pay it off (which I did in October).
This has only been my first month of budgetting, but you can see the big FAT curveball I got hit with this month. I hope that’s it for car maintenance for a while. I’ll revisit this subject in future months.
