Now that you have everything set up to keep track of expenses effectively, what about all that debt? When my husband and I got married he brought along his student loans. At first, it was extremely overwhelming. Since we don't have a large income, we couldn't qualify for a mortgage unless they were paid off. That's the day I sat down and created a budget and a system to pay off the loans. In 2 years time, we have paid off 2/3 of his loans!
To begin, gather all paperwork for your debts. You'll need to know the company, the interest rate, and how much is owed. This includes car loans, credit cards, student loans, and even a mortgage.
With this information, make a list of all your debt. At the top of the list you should have the debt with the highest interest rate and at the bottom the lowest. It may be overwhelming, but don't worry! When I first sat down and did this we had 5 or 6 student loan companies that we owed money to, some at 8% and others at 2%. It really opened my eyes to seeing what we owed but I looked at it as a game of how to get rid of it.
We'll be working with this list in the next and final part of this budgeting series when we talk about how to pay it off!
Tuesday, August 31, 2010
Monday, August 30, 2010
Budgeting Part 3
In this section I decided that a visual would be the most helpful, so I created a video. Unfortunately, I write in pencil which is hard to see on this video but the basic information is still there. Also, my camera decided 3 minutes was long enough and stopped recording. Luck for you, I just got long-winded at that point anyway.
I find it really important to keep my receipts (not the ones for everyday purchases, but for car repairs, medical expenses, my electric bill, etc). This way, when it comes to doing taxes if I need anything they're all right there. Also, in the front pocket of my binder I keep any bills that need to be paid. In the back pocket I keep pay stubs.
I also have my own fiscal year. Our year begins on September 18. This is because that was the date I first sat down to create our budget. The 18th day of the month also marks the beginning of our fiscal month. Every month on the 18th I sit down and add what we allocated for that month in each category. For example, I'll add $50 to the electric section and $150 to student loans. For the expenses in the Yearly category, I add it the first day of the fiscal year and nothing is added for the remainder of the year.
At this point you are ready to start keeping track of your expenses! There are two more installments that I will write about, but they will not affect how you keep track of your money in your binder. Instead they will talk about debt and how to overcome it. So, get your binder organized and happy spending! Just remember, every penny you see will probably need to be written down somewhere.
I find it really important to keep my receipts (not the ones for everyday purchases, but for car repairs, medical expenses, my electric bill, etc). This way, when it comes to doing taxes if I need anything they're all right there. Also, in the front pocket of my binder I keep any bills that need to be paid. In the back pocket I keep pay stubs.
I also have my own fiscal year. Our year begins on September 18. This is because that was the date I first sat down to create our budget. The 18th day of the month also marks the beginning of our fiscal month. Every month on the 18th I sit down and add what we allocated for that month in each category. For example, I'll add $50 to the electric section and $150 to student loans. For the expenses in the Yearly category, I add it the first day of the fiscal year and nothing is added for the remainder of the year.
At this point you are ready to start keeping track of your expenses! There are two more installments that I will write about, but they will not affect how you keep track of your money in your binder. Instead they will talk about debt and how to overcome it. So, get your binder organized and happy spending! Just remember, every penny you see will probably need to be written down somewhere.
Sunday, August 29, 2010
The Franciscan Monastery
After a long week, Hubby and I decided to go on a short road trip yesterday. We have always loved car rides, Peter sleeps, and we have plenty of time just to talk. On this particular trip we decided to head to New Hampshire. We didn't know exactly what we would do but a had a few addresses programed into the GPS. After spending a couple hours in New Hampshire we decided to make our way back north. I had wanted to go to the Tom's of Maine outlet store so we stopped in Kennebunk before heading home. On our way back to the car, we decided we really should bring Peter to the beach since he had not yet seen the ocean. After programing our handy GPS, off we went. We passed by the most beautiful houses, I joked about maybe running into the Bush family, and we found the ocean. Unfortunately, every parking space was "for permit parking only." We decided just to keep driving and forget about our ocean adventure. As soon as we finished driving by the beach we came across a sign for "The Franciscan Monastery." Nathan had just learned of this place the night before but we hadn't thought about it that day. Before we could give it a second thought we were pulling into the driveway. As we drove to the parking lot we saw a bunch of signs announcing that this very day was "Franciscan Day." What exactly this meant made no sense to us, we hadn't been there before, but we were excited to explore.
We found the chapel, an outside grotto, a beautiful path to the ocean (Peter was able to dip his feet in), and finally bumped into some Franciscans. We learned that there had been workshops all day for the participants, there were Franciscans that had come from across the area, and even some from Lithuania. Best of all, mass was starting in an hour!!
We had a wonderful evening talking with the Franciscans, discovering the monastery we never knew about, and even ran into a few people that we knew. We left there wondering what God's plan was in all of this? It was only by His doing that we were there, but why? I'm sure He'll show us in His time.
We found the chapel, an outside grotto, a beautiful path to the ocean (Peter was able to dip his feet in), and finally bumped into some Franciscans. We learned that there had been workshops all day for the participants, there were Franciscans that had come from across the area, and even some from Lithuania. Best of all, mass was starting in an hour!!
We had a wonderful evening talking with the Franciscans, discovering the monastery we never knew about, and even ran into a few people that we knew. We left there wondering what God's plan was in all of this? It was only by His doing that we were there, but why? I'm sure He'll show us in His time.
Thursday, August 26, 2010
Budgeting Part 2
Continuing with the lists that have been made in Part 1, let's figure out what your expenses look like for each paycheck. I will explain how to figure out expenses on a weekly paycheck, if you get paid every two weeks, simply multiply by 2.
From the Monthly list, take each figure and multiply by 12 (months) and divide by 52 (weeks). For example, for Rent, I have $500. $500 X 12 (months) = $6000 a year. Divide that by 52 (weeks) $6000 / 52 = $115.38. Do this for each of the items in the Monthly List.
From the Yearly list, divide by 52 (weeks). For Car/Rent Insurance I have $1000. After dividing by 52 we have $19.23 in the Weekly column.
Finally, add up everything in the Weekly Column. This will determine how much is needed every week to maintain this budget. Do you make this much every week? If not, it's time to reduce some costs somewhere! Do you need that cell phone? We got a TracPhone for emergencies which costs only $100 a year instead of $550. Is there a cheaper company for Car Insurance? Do you need cable and internet? How about hanging clothes to dry instead of using the dryer, that'll help with electricity costs.
Note that I do not include categories for food, clothing, and anything you would purchase from the store. Feel free to add money for that if you feel it would be helpful. I choose not to do so because it is not consistent. I'll explain that later, but be sure to have enough money left after determining your Weekly Expenses vs. Weekly Income.
Budgeting Part 3: "So now what?? How do I keep track of it all?"
From the Monthly list, take each figure and multiply by 12 (months) and divide by 52 (weeks). For example, for Rent, I have $500. $500 X 12 (months) = $6000 a year. Divide that by 52 (weeks) $6000 / 52 = $115.38. Do this for each of the items in the Monthly List.
From the Yearly list, divide by 52 (weeks). For Car/Rent Insurance I have $1000. After dividing by 52 we have $19.23 in the Weekly column.
Finally, add up everything in the Weekly Column. This will determine how much is needed every week to maintain this budget. Do you make this much every week? If not, it's time to reduce some costs somewhere! Do you need that cell phone? We got a TracPhone for emergencies which costs only $100 a year instead of $550. Is there a cheaper company for Car Insurance? Do you need cable and internet? How about hanging clothes to dry instead of using the dryer, that'll help with electricity costs.Note that I do not include categories for food, clothing, and anything you would purchase from the store. Feel free to add money for that if you feel it would be helpful. I choose not to do so because it is not consistent. I'll explain that later, but be sure to have enough money left after determining your Weekly Expenses vs. Weekly Income.
Budgeting Part 3: "So now what?? How do I keep track of it all?"
Wednesday, August 25, 2010
Budgeting Part 1
I've been obsessed with numbers for as long as I can remember, so budgeting has come naturally to me. It has been requested that I share some of my "secrets," so here you go!
This will be part 1 of a several part series so it can be well organized and thorough. For the purposes of this blog, I have not used our actual financial figures. I have used numbers that are easy to divide, multiply, and explain. In my actual budget I account for every penny that will be spent.
To begin, I make two lists, one with expenses that are seen monthly and another for yearly (although some can be interchangeable). These are the categories that we use, but every family is different so add categories as needed. Be sure to add any debts and the minimum amounts that you are required to pay.
Although it is very tedious and time consuming, it's very important to go through past bills to accurately assign amounts to each category. If it is not something that has a set amount, (ie. medical bills, electric, gas, cell phone) give a generous estimate. I will go over later what will happen when you have extra money in a category.
Part 2 will answer the question, "How large does my paycheck have to be!?!"
This will be part 1 of a several part series so it can be well organized and thorough. For the purposes of this blog, I have not used our actual financial figures. I have used numbers that are easy to divide, multiply, and explain. In my actual budget I account for every penny that will be spent.
To begin, I make two lists, one with expenses that are seen monthly and another for yearly (although some can be interchangeable). These are the categories that we use, but every family is different so add categories as needed. Be sure to add any debts and the minimum amounts that you are required to pay.
Although it is very tedious and time consuming, it's very important to go through past bills to accurately assign amounts to each category. If it is not something that has a set amount, (ie. medical bills, electric, gas, cell phone) give a generous estimate. I will go over later what will happen when you have extra money in a category.Part 2 will answer the question, "How large does my paycheck have to be!?!"
Tuesday, August 24, 2010
Healthy and Affordable
I've spent the vast majority of my time lately trying to create systems and procedures that can aid in a less chaotic lifestyle. The three major issues I have found as a housewife seem to be: "What's for dinner?" "How much money do we have?" and "How am I going to get all this cleaning done!?" After tons of charts, binders, and lists, I have finally found a way to simplify my life and accomplish all of these tasks! I may not blog often or I may find tons of inspiration during nap time, but it is here that I plan to share some of these ideas and strategies.
Tonight's dinner:
Tonight's dinner:
Sauteed Vegetables with Pork cooked in Applesauce
Calories: 319
Cost per Serving: $0.77
I recently purchased several pounds of pork for only $1.99lb and was determined to find a way to prepare it for dinner. After a trip to the local farmers market, a couple of dollars, and about 30 minutes, VOILA! we have dinner!
Peter's verdict: Summer squash and Zucchini are delicious!!
Calories: 319
Cost per Serving: $0.77
I recently purchased several pounds of pork for only $1.99lb and was determined to find a way to prepare it for dinner. After a trip to the local farmers market, a couple of dollars, and about 30 minutes, VOILA! we have dinner!Peter's verdict: Summer squash and Zucchini are delicious!!
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