Our Semi-Annual Assessment

[MomToTwoBoys]

The last few months had been pretty good for us. We had a slight cushion in our checking account and I was able to put money back into savings.

However, with the home renovations that needed to be done and other sporadic expenses (sporadic in terms of the kids, not us), that cushion was deflated this past week.

I'm a little rattled, which isn't normal for me.

What have I learned?

You cannot, for one minute, deviate from your budget. Money is especially tight for us until we pay off our debt to our inlaws. That debt will be abolished sometime next September. For the next 15 months, we have to be vigilant on what we spend our money on.

I know this doesn't happen to us very often, which is why I think I'm feeling a little frayed at the edges of my nerves over it. We went back to a regular diet, which means that we can limit ourselves more. The kids' school fees are coming up in a few months, which also has me frayed at the edges over this situation we've put ourselves into.

Paying $550 in debt every month really does hurt. If people thought that paying $100 onto debt a month hurt, this is the equivalent of being socked in the mouth every time you say 'money'.

So I guess the point of this post is to let people know that even the ones who have been doing this for a while can let things get out of control.

What am I doing now to prevent this later? Well first, I let DH know that we have to be tighter on things for a while. Our minimum budgeted amount of income went down to $900 every two weeks on his side with the debt repayment and with the dollar acting weird, my minimum is skirting at $692 per month. I know a lot of people will say, 'Wow, $2492 is a lot of money per month for a family your size.' But with the cost of living here, it really isn't. We sort of get a break with a lower housing insurance and a lower auto insurance, plus a lower property tax. But that really isn't enough. I've debated getting rid of most of the cable and going to a basic package, but I'm not certain if we'd still get the Movie Channel package (this is probably our main form of entertainment now - $16/mo). When I'm at home during the day, I'm usually on the PC or watching channels that are lower on the list so it wouldn't bother me. We get our hockey games on lower channels as well. DH and I have movie date night on Friday and Saturday nights, so the Movie Channel package is definitely key to our sanity.

We had recent changes to our cell phones that we also need. We're locked in for 3 years (well, two for me) and the cost wasn't more than what we were paying before.

I think our biggest issues right now are cable and groceries and the eating out we've been doing. The home improvements are also running us some money, but that should have been originally slush-funded anyways. I think that's something we really need to look into. Even if it's just $50/mo, it needs to be done.

The kids' school fees are going up next year, too. We'll pay more for DS11 since he's going to junior high school and his bus fees will go up, but DS6 will be eating at home and that means savings right there. Their school shopping is being done with gift cards and money from the EF, too. Birthdays are being scaled back this year. The kids really are easy to shop for, but one wants expensive things so I'll have to corral him in on that one.

Overall, I think we're doing fine but we could be doing better. We'll see if any changes I make in June will help us out.

[forHISglory]

Excellent article! I am impressed with your attitude toward debt and your detailed plans. Your thoughtful and comprehensive writing has inspired me to do a similar inspection.

Here goes:
We do not have any debt. However, we have been spending at a much higher rate than usual. We redid the kitchen, bought some new furniture for the living room and patio, purchased a grill, and put up a small barn in the back of our property. The good news is that we didn't incur debt, but used our savings. The bad news is that we used our savings.

We are not taking a vacation this year, but rather doing a "stay-cation". We are visiting some nearby towns and exploring them, exploring this new town to which we have moved, and doing some eating out. So for the cost of a tank of gas and a couple of restaurant meals, we are having a much cheaper vacation. We've been saving and acquiring some coupons for some free meals out, too.

The market recently has dealt a blow to our savings. We continue to trust that the market gives and the market takes away, and that we will be OK in the long run. But we need to reign in spending.

Had some concern over our pension (we are retired teachers). The state wanted to shift control of the pension fund, and the retired teachers association saw nothing but trouble with that move. Fortunately our grass roots efforts stalled that for now, but I can almost guarantee that it will rear its ugly head again.

We are having to decide whether or not to keep our part time jobs. Did some consideration and decided that for now, while the market is down, we need to keep that source of income. But we would like to stop in a year. Will have to re-evaluate as we go through the year.

We are finding taxes and cost of living to be very high in this new state. We have had to do some shifting of budget to cover this.

We don't have children at home any more, but have grandchildren who are needing some help with school clothes and supplies in the fall. Will need to evaluate how to work this into the budget.

Thanks again for inspiring me to think about a mid-year assesment!!!

[mauimagic]

mahalo for hsaring your thinking process and the outcomes - always helps to see what others do.

[frugalwarrior2]

Funny,we were just discussing this last night. We had just paid down a $3000. lump payment on a CC and are feeling the squeeze as it followed 6 mo. car ins. and summer tuition for DD.

I am on a 3.5 year paydown plan for all incl. the mortgages. Repair constantly threaten the plan. This weekend the sewer,coffee maker,answering machine, and the R.O. water system alone. LOOMING the furnace and 2 vehicles worth of brakes. Our E-fund has suffered.

WE are trying to project out 5 years-no kids here,less pets by far,pare down on possessions,fix the house w/ finality,maybe sell and move. Retirement sorely lacking. We worry because DH may have to go on disability by then. Can't really plan that far but it's good to rough in the edges of the sketch.

I am working that menu plan hard and sticking hard to shop at home first. All the wants and I needs are being listed and considered over time. I agree sticking to the plan is crucial.

[StanleyJohnson]

Thanks for sharing your Semi-Annual Assessment.

Now I don't feel bad about handing my wife an invitation to our semi annual shareholder's meeting. (At least thats what I call it)

I told her that this is the time to discuss how we are doing on our goals and to make adjustments if we have to.

Ok, maybe I went a little too far when I asked her to make graphs and charts for the meeting. :-)

[nodmicks]

Thank you so much to everyone for sharing!!!! I thought back when that we became debt free that we would be floating in the cash. Nope everything still has to be budgeted and planned and there is not tons of free cash floating around.

[frugal is fun]

Thank you so much to everyone for sharing!!!! I thought back when that we became debt free that we would be floating in the cash. Nope everything still has to be budgeted and planned and there is not tons of free cash floating around.

I totally agree with this! I've been officially out of debt since March. I didn't have alot of debt so there was no large snow ball amount that suddenly came into my pocket.

I've have all my ducks lined up...retirement, college savings, EF, Insurance, etc and I have a budget that I can live with but there is very little room for extras. Extras have to be planned. It would be SOOOOO easy to just get out the plastic and get what I want however I KNOW I would regret it the second I got that bill in the mail.

ALOT of discipline and planning is needed to stay debt free.

Just as an example of planning...there is a $500 Chimnea that I want badly! I set it up to have $20 automatically deducted out of my "allowance" each week and put into an ING account. In 25 weeks (22 left), which will bring me roughly to mid October, I will have my $500 Chimnea!

[nodmicks]

I totally agree with this! I've been officially out of debt since March. I didn't have alot of debt so there was no large snow ball amount that suddenly came into my pocket.

I've have all my ducks lined up...retirement, college savings, EF, Insurance, etc and I have a budget that I can live with but there is very little room for extras. Extras have to be planned. It would be SOOOOO easy to just get out the plastic and get what I want however I KNOW I would regret it the second I got that bill in the mail.

ALOT of discipline and planning is needed to stay debt free.

Just as an example of planning...there is a $500 Chimnea that I want badly! I set it up to have $20 automatically deducted out of my "allowance" each week and put into an ING account. In 25 weeks (22 left), which will bring me roughly to mid October, I will have my $500 Chimnea!

I had to go google to see what a chimnea was! Neat!!!!!! It is hard staying out of debt! It is kind of more exciting in a way getting out. We had a pretty big chunk of debt but rising cost over the last few years ate a lot of that shovel. Plus you have sinking funds galore. Everything has to be planned. Dh and I added up a few things we have paid cash for in the last few years, flooring, new windows, braces etc. It made us much more proud of what we are doing too see it added up. We want all the new toys our friends constantly put on credit but we want to retire with some dignity more.