new idea for 2010

[akolb]

So since we have recently become homeowners (yea! ) we have decided we HAVE to get our emergency savings account in order. Our monthly bills for everything (my debt, groceries, house payments, utilities, gas) is roughly $2000. On a normal month we make a joint $3200. So that means that we should have our emergency fund set up in 5 months.

However...we can't seem to hold on to that extra $. We don't go out (much...I work in a bar so there are occasional nights out. Luckily we know lots of bartenders = free/cheap drinks), we don't have cable, I don't shop much.

Our main issues are daily little things. Diet Cokes, chips at the gas station, the Dollar Tree and clearance at Tar-jay calls me. The bf LOVES to buy movies.

So, I've decided to write down EVERYTHING I spend each day in my planner. It works when I do it with calories, since I have to think hard about if I want to claim it by writing it down. This seems so easy, but one of my main issues is that I deal in mostly cash so its easy to blow through $10 without noticing.

I'll let yall know how it goes!!

[mauimagic]

Great idea to write it all down - that always helps me out!!

Have you thought of automatic deductions to help your EF fund along? That something else that's easy and you don't even see or miss it!!

[MandaRenee]

That sounds like a great plan. You could start you a post (or use this one) and keep it up to date on here too. I did something similar a while back on another board I was on and it helped a lot.

I wouldn't spend on something because I knew I would have to write it down and own up to it. lol

Good luck with your plan.

[Luckybustert]

Writing it down on paper didn't work so well for me, but using my debit card for all purchases no matter how small, and downloading the banking activity to Quicken each and every day has forced me to be very honest with myself about how much I spend. It's right there in black and white, no "forgetting" to enter items or fudging the numbers. I think the key, no matter what tool you choose to use for tracking, is consistency. And flexibility...if you find one tool isn't working so well, don't be afraid to try a different one.

[AmyBoz]

Good idea. Writing it down holds you accountable...writing it down at the village holds you publicly accountable! In the new year, I'm adding some pages to my blog to hold me accountable to some of my goals for the new year. Nothing like knowing a few hundred people are keeping track to keep you in line!

[Grainlady]

We budget "walking-around money" (aka blow money or allowance - whatever you want to call it) to keep unnecessary spending in check. With mine, I purchase non-food items (grocery money is for food only), thrift store finds, general shopping, etc.... Hubby will use his for car and home care, and occasional eating out.

I'm sure many of us learned the old saying, "pay yourself first", which is why we have 1/3 of hubby's pay automatically placed into a savings account. So set aside your emergency money FIRST, then work your budget off the remaining amount, including your "blow money". With our method of automatic savings, we save 1/3 and work our budget off the other 2/3. When the house is paid off (not long now...) we'll live off 1/3 and save 2/3. We have a fully-funded emergency account and other investments using this method.

Saving $1 bills to fund our Christmas/Emergency account is another method I use. I save anywhere between $500 and $1,000 a year using this simple method. I budget $20/month for a haircut, but cut my own hair. I place that money ($240) into the Christmas/Emergency account as well. "FOUND" money is also added to this account. That includes gifts of money, rebates, recycled aluminum/metal from picking up aluminum cans in ditches, garage sales, etc. Since you probably get tips, you could set aside a portion of your daily tips for your Emergency Savings, much like I save dollar bills. Then deposit it once a week or month.

Snack foods are generally budget robbers, and bad habits which contribute nothing nutritionally, but you already knew that. It's an easy habit to get into, and uncomfortable to get out of... If you don't want to break the habit, try reducing it to save some. Purchase Diet Coke when it's on sale and stock-up - at least you will save the high price of the convenience store. Limit your servings, which is easy with cans, or if you purchase the 2-liter bottles, then limit the size and number of the servings. You can also portion your own snack food from large bags/boxes. There are store brands that are just as good as name brands. Switch to water and healthier options. We eat dehydrated zucchini chips (homemade), dehydrated apple slices (homemade), granola (homemade), baked tortilla chips (homemade), homemade cookies or quick breads, fresh fruit/veggies, almonds and popcorn as our snacks.

Wal-Mart and Kroger Stores have less expensive store brands for both soda and junk food. Our son-in-law is a Coke Zero fan. He said the Sam's Club brand (from Wal-Mart) was just as good as Coke Zero, since that's what I purchased for their recent Christmas visit (it was recently on sale - $2 for 12-cans). It may take about a week to get accustomed to the store brand, but it would also save you money over the convenience store.

It's all about the budget. Either you control your money or you won't have any idea where it goes. Bf can budget for his purchases out of his "blow money", or better yet, start visiting the Red Box or going to the Public Library where he can get movies for FREE!

[tervsforme]

I use my "found" money for my walking around money. Selling something, getting paid for a side job, etc. I think I'm going to put half into my EF and use the rest, but I am also going to write down where it goes, just so I can get a better handle on it.

Good luck!

[kimmy4433]

Ahh I think we all have the same plans. We are going to take 10% of each paycheck from DH, 10% of my unemployment money (as long as it lasts) and put it into our ING account. We opened one last year and June 2008 was the last deposit that was made. I need to set it up as a bill pay with our bank and remember to have it sent every week. We are doing good this week. DH cashed his check and brought the money home. There is still $400.00 sitting in our dresser. This week when he gets paid I am going to pay the house payment, grocery shop, and pay our utilities (that is all that is due) and take half of the cash and put towards our smallest credit card. Hopefully taking one check a month and just cashing it will help us to not spend it. I find it is harder for me to part with the cash then it is too just swipe the debit card.

Last week we went through our purchases...are you all sitting down for this...really I would sit down.....I know you are all going to spit your coffee out of your mouths......In 3 months just in gas, groceries, Michaels and Kohl's purchases we spent almost 3000.00 not including the cash that was spent at all of these stores....I know, all of that cash could have paid off all of our credit cards.....That is why we are both on board, and I am no longer allowed into Kohl's or Michaels until we owe just our house payment. And I am allowed only to take $50.00 cash to the grocery store. Infact my debit card is in the freezer!! lol

Good luck to you and remember that not looking at least once a week the money will just spent it self. I look forward to following your journey!!

[frugalwarrior2]

What works for me having my banking online. I transfer a static amt. into a savings acct. This savings acct. is purposely NOT attached to an ATM. Yes, I can transfer savings back to checking electronically but it takes a purposeful act.

I have told myself this year I have to be more frightened of an emergency and take steps. I have coasted on "I hope it will be alright" too long. That not what adults do. KWIM.

I also will have a fun acct. again. Not huge but we haven't had any. Not only do we get resentful , we cheat by charging,throwing ourselves back into a debt cycle.
You have plenty of room to do both. Save and play a little.

[NikoSan999]

Wishing you luck and look forward to reading of how you are doing. Having cash every night is nice...but it's hard to hold on to. Been there done that.

[shoiji]

Writing everything you spend really helps to keep track of where the money is going. I keep mine on a spreadsheet so I can easily see where the money is going. Try also keeping a total of all the money you have save for the emergency fund. May help you stay on track.

It is great you are thinking about keeping a good budget. Also think about keeping a baggie or small container with some nuts, dried fruit, even chips in them. Then just grab a container on the way out. Will take a while for it to be a habit but you will not need to buy anything while out and about.

[alotofgooddeals]

For the last two days i have done this.....
Yesterday
$15.76 which included one bottled water, one moxie, one 2.00 bag of chips and 1 .99 bag of chips
2 pizzas of pizza and one club sandwich

Today hamburger happy meal 2.99
mcdouble
small fry
small drink $3

So today was 5.99

Went grocery shopping and over paid $1 on yeast and bought two packs so would have saved $2 if bought at other store.

flour 4.69 at one store would have been $3 at the other store so $3.69 if i was paying attention... so for a total of two days.....close to 24.50 I didn't have to spend.... and this was taking it easy...trying to not spend... so if i really really tried..just think of what I could save....

[tripleb]

Looking forward to reading about your journey!

[MaryinFL]

Can you use Netflix instead of buying movies. One month of Netflix is less than buying one movie. We are on the unlimited monthly plan and the movies get here in one day. We love it.

[wjcalderon]

Another option for movies is the public library.
I think some libraries let you check them out for free.
But the one in my town charges $1 per movie - and you get to keep it for 5 days.
They get the new ones in about a week or so after the DVD is available for sale.
You can also request that they hold a particular movie for you - they will call you when it's available.