December interest earned from all cash accounts is $99.14. Starting to approach $100!
I expect that we will exceed $100 a month in interest earned in the coming year. I have added even more cash, specifically $8,000, to higher interest accounts. And it seems interest rates have finally started creeping back up. That is a big deal for savers. We have had a lot of years with very low interest rates. We are earning 1.4% on our online savings account and between 2.0% and 2.25% on three different CDs.
I will include all 2017 interest in my Big Goal total since I am using that money to help meet that goal.
Viewing the 'saving' Category
December interest earned from all cash accounts is $99.14. Starting to approach $100!
We officially ended 2017 with $500,483.61. Even if we made it by one penny, I'd be thrilled. This was always my hope for this year. And I knew it had to be a year of high returns to make it. Definitely happy dancing!!!
Last year's ending balance was $392,814.02. That's a change of $107, 669.59 or 27.4%.
We contributed the max to our Roth IRA's, $5,500 each. My husband turned 48 this year, so soon we will be able to contribute even more each year. Specifically, in 2019 we will be able to contribute an additional $1000 for him. Luckily, this should be the same year our oldest daughter will graduate with her two bachelor's degrees.
In 2017, my husband contributed $10,067.11 of his base pay to the TSP. Total retirement contributions were $21,067.11 for 2017. Our total retirement contribution is 18% of our gross income.
I haven't decided yet if we will increase our retirement contribution to my husband's TSP. It's tempting to increase another 1%. I need to do some calculations once the new withholding and tax calculator's come out.
I want to point out that it is NEVER too late to start saving for retirement. Anything you save for it is better than nothing. And over time it adds up! Increasing 1% a year isn't noticed particularly if you get a raise of at least that amount.
How did you do with your retirement savings?
This post may be a bit all over the place...several money thoughts on my mind this morning that I simply want to share.
We bought a new camera just before Christmas. We have been without one for about two years. I personally could probably have passed, but my husband seemed very interested. He has made a great point of using it over the last several days, getting pictures and video of our family. We took a family picture to send out on Facebook. The cost of the camera was $299, plus tax. He also bought an HD SD card. I was mad about that part initially, but I do see it has some better features than some older cards we have, so I will deal. I applied my husband's birthday money that he hadn't yet spent, and the remaining Christmas budget to cover most of it. After that I just took some cash from other budget areas so we can make it work.
We shopped for some grocery and personal care needs at Target yesterday. I used a $2 coupon along with the gift cards I bought for 10% off after Thanksgiving. So no new money out of pocket for things we needed. I was thinking of going to the store again, but I think I'm going to see if we can make it through Friday or Saturday night and just get our regular groceries for the first week in January.
Our final 2017 education and retirement contributions have been made. We added $2K to our youngest's Coverdell account and maxed out our Roth IRA's. These are all on automatic investment from our checking account, so it's easy to make it happen. I will need to double our payment in 2018 for our daughter's final contributions. She turns 18 in July, after which we we can no longer contribute. I think I may actually just take $1000 from savings and put it in for January. and then continue our regular $166.66 for the first six months of the year as we usually do. I can pay ourselves back the $1000 to savings for the remainder of the year.
I'm working on financial goals for 2018, but I need more time to focus. It's a little busy around here this week, with both girls off school and my husband home from work!
Our Discover statement closed the other day. We earned $15.53 in rewards. I'm going to redeem those and put them towards the Big Goal.
I transferred $8K we had in a second checking account to FNBO Direct yesterday. They have 1.4% interest rate, which is far better than our checking account.
We are about to buy my daughter a new cell phone. Her's is 3.5 years old, barely holds a charge and the camera on it no longer works. She is going to get the same phone I have, it will cost us $13 a month for the next 24 months. Since I charge our Verizon bill to US Bank for 5% back we will also get that same discount on the cost of the phone as well, which adds up to $15 in the end. But we will take it!
And finally, we are very close to purchasing a new laptop computer for our youngest daughter to take to school in the fall. We are going to buy it from the university she is going to attend. They offer a four year warranty, a discount and no sales tax. It's a Dell that will work for her engineering study needs. Cost will be $1299. I currently have $1,047 in the budget for it. We should have the rest of the money on Friday when my husband is paid.
Thanks for sticking with me on all my thoughts!
It looks like one of our money market accounts has raised their interest rate again! Money we have there will now earn 1.4%. It wasn't that long ago that it was earning just 0.95%. This is at FNBODirect if interested.
I also noticed that our Chase Freedom credit card is offering 5% cash back for the first quarter of 2018 for cable, internet and phone merchants. I think I'll take them up on that offer and pay our cable bill, Netflix and Ooma bill with that card. I already get 5% back on our wireless phone bill with US Bank, so I will leave that alone, but will pay the other two with Chase Freedom January through March. May only net me a few dollars, but I'll take it. Oh, and gas stations are included as well for the same quarter.
Starting to ponder goals for January, financial and others. I usually won't have those quite together until mid month of January, as that is when my husband's new pay starts. He is getting a raise, another $187 pretax per month to work with. This should go to the Big Goal. Some will go to retirement since we put 11% in his TSP off the top. I was disappointed for a second year in a row that our housing allowance did not increase. Based on the market around here, it does make sense. Not much I can do about it. It is what it is.
I sold another item on eBay today. I net about $15. Not bad for a used clothing item I was no longer wearing!
That money will go to the Big Goal. More on that can be found on a page on my sidebar if you aren't sure what I'm referring to.
Spending has been minimal, except I ran to the store today to pick up some things to help my daughter cope with a cold. She arrived home from college on Saturday and was recovering from another cold. It seems she picked something else up along the way home.
In other news, we have had a few days of warmer weather, with rain coming tomorrow. I enjoy these mild days knowing it keeps our electric bill lower.
I'm working on some year end posts. More to come soon!
We finally hit another retirement milestone today! And it's a big one at half a million dollars. Happy Dancing!!
Exact total at today's close for all of our accounts is $501,160.59. The change to our balance from Friday was $3,450.92. Yep, one day of trading can make that much of a difference in one day. The more you have the bigger a small percentage impact can make on the total balance.
We were at $392,814 at the very end of 2016. I really did want to reach $500K this year. I knew it would have to be a very good year to make it happen. So grateful it did!
Seriously...start investing if you have not yet! It compounds over time. Just 14.5 years ago we had $25K invested for retirement. You will have nothing if you don't start. And it is never to late to start. Something saved is better than zero saved.
Our retirement balances are close to another milestone. Actual amount at the close of today is $497,709.67...
half a million get ready!!
Honestly, I'm a little stunned. It's really hard to believe that just 14 years ago we had just $25K.
Invest. You won't regret it!
I've done more earning on Swagbucks than I realized this year. I had taken some time off from it in the past because it can be a time suck. Usually, I just do it when I'm watching television (which is rare) or hanging out in the evening (not as rare).
I redeemed all but $25 of my Swagbucks for Amazon gift cards. I redeemed amounts ranging from $3 to $25. I think I often would redeem the smaller amounts when I knew I had an upcoming purchase on Amazon, so I would redeem to get some cash off those purchases.
The $25 that was not for Amazon was Paypal cash. I applied that money to my Big Goal (see side bar for explanation).
The total amount of cash equivalents redeemed in 2017 was $472! Almost $500. I do have enough Swagbucks to redeem for $15 right now. I will likely earn more and redeem in January. If I redeem before I will update this post with the correct amount earned!
Did you earn Swagbucks this year? How much did you end up with?
Check them out if you want to earn some gift cards and cash! My referral link is at the top!
I was balancing our checkbook on YNAB today and found a transaction that should have been recorded on our credit card. Turns out it was already recorded there too! So a double recording means that transaction can be deleted. That put $140.54 back into our budget.
I should probably put it towards the Big Goal, right?
It's tempting to throw it into a few other pots for some other short term savings goals. We are probably going to buy our youngest daughter a laptop (for college) here in the next month, if I can pull the cash together.
Heck, I will put it towards the Big Goal...I can always pull it out if needed.
I had an email this morning that our Netflix subscription amount is changing from $11.99 per month to $13.99 a month. Sounds like their will be more programs and the ability to download for later watching as benefits. Never a fan of price increases, but we will stick with Netflix for now.
Purchased my daughter some vitamins on Amazon today. I used the Discover cash back for a credit of $2.38. Final cost was $12.36. I think I will send that cash back amount to our Big Goal. I should add in the coupon savings from Sunday, too.
I had to take a mental health break today. I had some stress and anxiety pop up on me this morning. I'm feeling better already. To help, I called my mom, went for a two mile walk, ate a good lunch, and then took an epson salt bath. Later I added some relaxing oils to my diffuser while I listed to some very nice relaxing YouTube music. I also got up and got busy in the kitchen making some muffins and hummus (not to eat together!).
I share because this time of year can be stressful for various reasons. It is okay to take a time out and take care of ourselves. And it doesn't have to cost anything! And be kind to those you meet as you don't know what their current struggles may be.
I took advantage of the Target gift card deal. 10% off online and another 5% cash back using my Discover card. I bought the maximum of $300. I checked and in the last year I have spent around $700 at Target. These gift cards will get used.
At the commissary today I redeem a physical coupon I found in the store for $0.50. I also used their rewards card to get another $2.40 off our bill. When I came home I redeemed rebates worth $2.75. Savings from those sources was $5.65. And theoretically, I'm saving 30% shopping at the commissary in the first place.
I totaled up the amount of interest earned on a money market account, a savings account and three CDs for the month of November. The amount earned was $84.77.
One account earns 1.15%
One CD matures at the end of the year and is earning 3%.
Two others are 2% and mature in April and June 2018.
If you hear of good CD rates at the end of the month, I'd will be interested to hear! Although, I'm just now remembering I may be able to roll that money in the 3% CD into one of the other ones. I will check that.
My daughters wanted a series of books. There are 12 in the series. I was told I could skip purchase book two as it is a combination of two other books my youngest daughter already owns.
Each book retails for $20. Thus this expense could have cost me $220!! No way was I going to pay that much out of pocket.
I figured if I could at least pay half of retail I would be doing good. I started purchasing earlier this fall. Two initial purchases came from buying used on eBay. One book was $12.40 with shipping and another was $11.13.
I mentioned that I sold some things back to a used book store and was able to use a $13+ credit towards a new book they had listed at the $20 retail price. I paid $7.70 out of pocket for that one.
The deals get better because I found three ex-library versions on eBay from one seller for $21.40. Average about $7 each.
And I made two separate purchase on eBay using Amazon gift cards I earned from Swagbucks over the last couple months. The book prices offered on Amazon varied from $13.59 to $17.36. One purchase was completely covered by gift cards and the other cost me $2.30 out of pocket.
In the end new books that could have cost me $220 new plus tax, were just $54.93 out of pocket. An average of $4.99 a book. A savings of 75%!
No worries that my girls will be offended by used books. They are fans of the library and know that book costs add up. And the used ones that did arrive are in very good shape! The three ex library books do have tags and tape on the side but again in very good shape! They will be very pleased, and hopefully surprised that I found all of the ones requested.
I do sort of wish I started earning the Swagbucks a little earlier so I could have reduced the out of pocket cost, but it is what it is! Still a great deal.
No spending here at our house today. I didn't go anywhere, except a walk around the neighborhood where I ran into a friend. We walked and talked while enjoying the nearly 70 degree weather. I'd much rather be chatting with a friend then out shopping!
The pay period is winding down. I did pull $50 that I put into savings as it looked like I didn't budget quite enough for our expenses. My daughter suddenly needed water filters (yes, that is a need), and we purchased a pair of workout pants for my husband. I thought the pants were going to be a present for Christmas, but no he decided to wear them before I could wrap them! So those came out of our current budget rather than the Christmas budget. I still have $18 of the $50 in our account, so may be able to move some of that money back.
I wrapped the gifts that arrived in the mail yesterday. I can't tell you the relief I have that my November shopping and preparing have paid off. I will get nearly all of December to enjoy the holiday season. No stress. The money spent will not be on credit cards held over until January like so many. In fact, the cards I did use (and never pay interest on) will be paid before Christmas!
I'm starting to wonder if December will be a low spend month? That seems like the rarest of possibilities, but I sure do like the idea!
I'm looking for snowflakes! The money kind that I can add towards our Big Goal.
I have two items on eBay that I wish would sell. I must need to lower the prices. One could be the wrong time of year.
I came up with four items we have that we don't use that I could sell. Our china sugar bowl. An exercise foam roller (used twice so nearly new). Two very large black table cloths. And a Wii U game that I don't think my daughter will play again (I do need to ask). Make that five items...I could list a couple scrapbook tools.
Did you know that some old Hallmark ornaments sell? I have some that would fetch at least $5 each, but I'm not sure I want to sell them, but I will consider it. I'm sure I wouldn't miss one or two.
Will these add up to big money? No not by themselves, but the small amounts add up together to make hundreds of dollars. The more I can find the better for the goal!
I mentioned a few days ago that my neighbor asked me to make 6 more key fobs. A few days later, she asked to add one more on. I was quick to get the work done and yesterday she paid me $56 for the work. This goes towards the Big Goal.
In my planning November planning for Christmas, I'm making a point to stock up on things around the home. When we were at the commissary, I bought dish soap, laundry detergent, parchment paper, ziplock bags, vitamins, toothpaste and bar soap. I want to be stocked up through the end of the year, so that the only shopping I need to do in December is for food. The more I can stay out of the stores in December the easier it is to keep to the Christmas budget. I did notice I need coffee filters and toilet bowl cleaner, so I will pick those up this week.
Yesterday was pay day. All credit cards were paid off in full. I put $42 in the birthday category of our budget, $50 in Christmas, $940 in college and tuition (normal amount is about $410), and $272 for insurances and auto tags. There was money added to our car maintenance fund. It was negative after a having some recent maintenance done. Now it's back to zero. There was about $200 left, and I just dropped it into the emergency fund category for now. May need it elsewhere later in the month, but we will try without.
I have three items on eBay that I'd like to see sell soon. May need to drop the prices a bit, but a little extra cash would be nice.
Wow! The stock market is on fire. Our retirement accounts totaled just over $480K yesterday. We are getting closer to $500K...just under $20K to go. Of course, I know there could be a correction at some point, but I'd love it if the accounts could rise to $500K by the end of the year. Another 4% or so. We started the year with balances totaling $392K...so there has been very nice progress!
I tallied up our interest earned in October. We earned $95.28. Can't complain about more money!
I made an eBay sale today. It was an item I have been trying to sell for several months. Netted just $6, but I'll take it. I do have four new items to list soon.
I requested to trade in my old cell phone (well, really my daughter's old one) with Verizon. I was offered just $20 as a credit, which is perfectly fine. We got 3.5 years use out of it. Verizon is sending a box for me to mail it in.
I also checked our account and noticed my husband received $48 for per diem on a one day trip. I think he spent less than $20, so we netted $28 at least. I'm counting the full amount towards the Big Goal.
We are just two months until Christmas. Time to start saving and making a budget now. In fact, I've learned November is the best time to shop and prepare for the holiday. The more you get done before December the more enjoyable it can be.
I had a mini job fall right into my lap. My neighbor asked me to sew a fabric key fob/lanyard, like the one I had given her. She wanted to give them as teacher gifts this Christmas.
I figured she just needed one or two! No, she requested ten. And I charged her $8 each. They don't take much fabric, but I did have to go buy more than I had on hand. And I definitely wanted to make it worth my time.
This was about a month ago that she requested them. I got right on it and she paid me this week! I could get used to this kind of side hustle.
I've added the money to the Big Goal!
Christmas is just 100 days away!
We have saved some money already. We spend just about $600 a year, and simply save $50 a month. It's nice to know the money is there. I don't include money for gift wrap, baking, or the occasional new decoration. The amount we spend on that is very minimal.
I wanted to bring this up now for anyone that often finds themselves scrambling at the last minute to find cash or pulling out the credit card. Remember now, how disappointing it is to get that big credit card bill in January.
My suggestion is to make a list now of who you buy for and what you can afford to spend. Add that up and then divide by the number of pay periods you have left until Christmas. Save that amount going forward. Now if that seems like too much to save, then you need to go back and adjust the amount you are spending on each person or eliminate some gifts. Look for deals while shopping to make every dollar count. The sooner you start shopping the more time you have to find the right item at the right price.
I'm going to do a little better this year buying my baking items on sale. Last year I divided the items up and bought them during two different regular grocery trips. This year I'm going to watch the sales, probably in the weeks before Thanksgiving.
How are you planning for Christmas (or other holidays) to make it fit within your budget? Do you have a budget?
Let's see if I can recall the recent snowflakes arriving here lately:
$8.05 Electric co-op return of capital
$6.00 Pinecone Research payments
$0.93 eBay proceeds for a book
$9.00 ATM refunds from our bank
$25.00 Amazon gift card from Swagbucks
$8.54 US Bank reward (5% back on Cell Phone)
$9.95 AmEx cable bill reward
Those snowflakes add up to $67.47!
I printed out some coupons for things we normally buy. If I use them all within the next month I will have saved $11.75. Only took me a couple minutes to print.
I've always said that small amounts add up!
I've started Christmas shopping! One item arrived in the mail on Tuesday and another arrives today from Hungary. I mentioned to my girls at the beginning of August that it was never too soon to give me Christmas gift ideas. And they have done just that. Their lists are not flushed out completely, but I figured these couple items would be good to get now. Later this month I'm going to brainstorm for everyone else on my list and start making a rough plan. We've been saving $50 a month since December, so will have $600 saved for gifts by mid November. Yes, $600 is enough, we buy for fewer people now, and buy less expensive simpler gifts. It really makes for a much nicer holiday season.
We did buy my husband his new speakers for our family room. Out of pocket cost for them, the stands and speaker was $457.88. This was paid for with the per diem he received from his summer travel. He is very happy with his purchase and I'm happy for him as he has wanted to replace our old set (which we received as a gift for our wedding) for awhile now.
For now the remainder of the per diem is in savings. I'm pretty sure it will go to the Big Goal, but next time we have a budget meeting, September 15, we will discuss again. We may use some to fund some short term savings, but then pay ourselves back. But it really ends up being saved either way.
We are prepared for Hurricane Irma heading to the southeast coast. We have water, batteries, a hand crank/solarweather radio and cell phone charger, cash, and plenty of non perishable foods. And yes a manual can opener, although we don't have many cans! The weather radio is new. I found one at Bed Bath and Beyond for $51, after my 20% off coupon. I feel lucky as many of these kinds of radios were not going to arrive until late next week!
I used quite a few coupons at the commissary yesterday while shopping. They totaled up to $8.20! I also submitted my receipt to Ibotta for another $1.50 in rebates. I will follow my own advice and transfer that $8.20 from my groceries budget line to the Big Goal. I'm not moving the $1.50 as that is a rebate I will get in cash once I meet the $20 cash out threshold.
I sold a book on eBay over the weekend. Only netted $0.92, but it is now out of our home.
This weekend our landlords drove nearly four hours to put new mulch down in the landscaping beds. It was so needed. In one bed, they changed it to rock. It was very overgrown and over filled with plants. Honestly it really always looked awful. Now it just has a crepe myrtle tree and three rose bushes (which are new) and it looks much better. They also agreed to leave one large backyard bed without much as it only has three trees in it and all the mulch had virtually disappeared and grass has almost filled it all in. This will be much easier to maintain...just mow the grass, no pulling weeds or spraying chemicals! It will save them money in the long term too.
Last Friday, the high school football game was cancelled due to a tornado watch and severe storms. They played their game on Saturday but the band was not needed. We would have been volunteering, thus getting free admission, but we saved the few dollars our daughter would have spent at the concession stand. Tomorrow's weather looks good, so a couple dollars for a evening snack is scheduled. This is how the band makes money, so our daughter does benefit when the money is spent at our home team's concession.
I'll wrap up the post to mention I'm making a photo book for my niece that was adopted by my sister and brother in law in December. I had made one for her older sister when she was adopted. I'm not nearby so I've been gathering the photos as the take them and send them to me. I'm about to wrap it up, order it and have it mailed to her in time for her birthday next week. I'm considering it an adoption gift, and sending money and a small item I'm sewing for her birthday separately.
A lot to do, so I must get back to it! Prayers to all in the path of Irma and those that love them!!
We had some good news today on my daughter's University Bill. The school has applied her VA tuition payments. I'm not entirely sure they have received the funds, but they have noted them on her bill, so it appears we no longer owe the money. So now a bill for just $6,073.51. Most of that is for room and board, about $250 of that seems to be additional housing payment for the week she was in her dorm during band camp. I think something else was covered that we didn't expect. It seems they allowed her Honor's book scholarship of $250 to cover books. It didn't count towards tuition, so that was another $250 from the VA that went towards tuition. All done correctly it seems, just not what I was expecting.
There have been a few more school expenses. My daughter needs a conducting baton for her conducting class. We bought it used on eBay. It was about $22. Hopefully we can resell after this class. My younger daughter needed more notebooks and I picked up some printer paper. Out of pocket for those additional items was $4.03.
Other high school expenses I see coming up are $40 for senior dues (these primarily go to Prom I think), and my daughter's year book for $73. The yearbook isn't a need, but we have always bought them...and this is the last year!! We can afford it, so we are buying it.
Not sure how long it will take for the school to start talking about cap and gown orders and so forth. We will likely only order the cap and gown. We didn't do announcements for our older daughter and it was just fine. That will save some money. We also won't be having any big party. My parents, maybe my sister's family, will be in town and we will celebrate simply with them.
And then at some point we need to get senior pictures.
I made a donation to the American Red Cross to help Houston flood victims. I doubled our normal disaster amount. I wish we could do more, but if everyone helps it will make a difference. Consider miles you have or even Swagbucks if you don't have cash you can assist with.
I received a $3 Pinecone payment today. I redeemed $2.50 in coupons for groceries this week. Two were physical coupons, the other two were rebates with Ibotta.
That's the money news for now! I will get another Emergency Fund post up soon.
I saw a headline recently that 78% of Americans live paycheck to paycheck. This makes me so sad!
And then I talked to a good friend of mine yesterday who lives in the path of Hurricane Harvey. I reminded her she should have some cash on hand. She had just taken out $50. I told her more would be better. In my mind I had $500, but said maybe $200 would be good. She said although she just got paid, that she didn't have that much money! I said well since you just got paid, don't pay some of your bills you would be paying until the storm passes. Take the cash out and put it back in after the storm and pay the bills. That assumes she doesn't need it.
I'm of the belief that having an emergency fund, even a small one of $1000, is the foundation of financial security. The feeling you get when you accumulate that much money for just in case is palpable. Particularly if you didn't think you could do it. It's a feeling of accomplishment, confidence and security all rolled into one! It's also a feeling of relief when an emergency such as the one my friend is dealing with arrives and you have that money to use.
Saving that first emergency fund changes your mindset to being proactive against the unknown expenses rather reactive. If you can see that emergencies do come along and you will need money for them, then you can also see why setting aside money for irregular bills is helpful. It opens you up to seeing that you can save for other things like a new dishwasher or Christmas. And then you have saved money because you aren't charging the expense and paying interest. A proactive mindset with your money lets you see that you should save ahead for house down payments, college and retirement. Like I said it is the foundation of a solid financial house.
I can't save that much money. I will spend it if I see that money in my account. We have too many bills. Those are all excuses that block your ability to even try to start an emergency fund. Nearly everyone in the United States has the ability to save $1000. Now you might not be able to save it all this month, but any income level would likely be able to save that much in a years time. I think that is a little too long (and so would Dave Ramsey) but I would give you the grace to get it set up in that period of time. And if you want the math on that it is $83.33 a month.
And now I'm just going to do a quick brain storm of how I could find $83 each month. And honestly, the first thought that came to mind was Swagbucks! I know many people don't like it and even I get annoyed with it sometimes. But it is definitely possible to earn SB to equal a $25 deposit to a PayPal account each month.
I see my husband pick up a bottled water or soda at the grocery store at least once a week. Okay, I do it too, just not as often. The last time I remember noticing the price it was $1.89. If we could eliminate those five sodas from our spending we would save $9.45.
And at our house you have heard me mention that we spend more on restaurants than I prefer. I like to think we rarely eat out, but we do eat out. If we eliminated one trip to Subway each month we would save nearly $30.
I've been lax about using coupons at the grocery store. I think I could probably find at least $5 worth of coupons to use each month, maybe even $10. In fact, just confirm I'm right, I checked Ibotta and found the following coupons that I would use on things I normally buy. $0.25 on any item, $0.25 on fresh zucchini, $0.50 on cheese slices and $1.25 on a specific brand of bar soap. So in one shopping trip I could have $2.25 in savings. That is savings I could set aside towards my emergency fund. Again, easily $5 a month without changing spending habits, but by just finding the coupons!!
This next one is personal, and I've mentioned it here before, but I invested in a menstrual cup and washable/reusable pads earlier this year. At this point the small outlay (which I think I actually used Swagbucks to purchase) has been recouped by saving an average of $7 a month on disposable supplies. Because of my investment that is $7 I no longer have to spend. If I was consciously saving for my first emergency fund I would set that $7 aside each month.
Another one that has crossed my mind lately as a way of saving in our own home is the food we buy our cat. We've been feeding more wet food. A can a day, which is at least $0.50, often a little more. That is $15 a month. Now we do feed her dry food as well, so by eliminating wet food the amount of dry food she eats would increase, but the cost for that additional serving is far less than $0.50. Probably under $0.10. So let's assume we would save $0.40 a day, that is $12 a month.
And finally, I think I would be looking for something to sell each month while I was saving up my $1000 emergency fund. Things I have sold in the past for at least $5 include DVDs, girls jeans, Bath & Body Works lotions and sprays, kids coats and boots, Box Tops for Education, and tools. I've sold many things over the years, some online, some at yard sales. Of course, the amounts vary based on the item. Most of our homes are bursting with stuff! If you could find 12 items in your home worth $5 to sell, you would have $60 towards your emergency fund. I'm guessing many people have far more than that!
At at minimum I just came up with $94 a month I could save!! It takes effort, commitment to the goal but it can be done. And anything you eliminate for the year can be added back in. Or if you eliminate restaurant meals one month, swap it out with putting your Netflix membership on hold for a month. Be creative with how you come up with your savings each month. It doesn't have to be an elimination for a whole year!
Let me know if you are inspired to try saving your first $1000 emergency fund? Do you think you could do this?
And I'm thinking tomorrow I may brainstorm how I would come up with $1000 in one month! That is usually the best plan. Saving the emergency fund as fast as possible.
I'm sure there are others reading that haven't heard of sinking funds, or know how to set them up. Hopefully, some of us veteran savers can help share how they work! Since I brought up sinking funds yesterday, I thought I'd point out some options for tracking and holding those sinking funds until you need them.
I just remembered that the first time I heard about sinking funds in the personal finance world was from author Mary Hunt. She wrote a book called Cheapskate Monthly Makeover (now titled Debt Proof Living) where she described Freedom Accounts. I actually like that term a little better, as that is exactly what it gives you. Freedom from living paycheck to paycheck because you are planning ahead.
Sinking Funds or a Freedom account are a place to hold the money for the irregular expenses that are known. Christmas is a great example. We know when Christmas comes every year, there is not reason we can't set aside money ahead of time for those purchases. This is amounts to be proactive (saving), rather than reactive (often credit cards) with money.
As I mentioned yesterday we also save ahead for car insurance, vehicle registrations, renter's insurance. And I'm working on getting a bit more clear with saving for tuition, band expenses, vehicle maintenance, membership fees, cell phones and eye glasses.
Currently, all of our sinking funds are in our main checking account. Yep, no interest being earned there. The reason we are able to do this is that we track all the money we are saving in sinking funds in YNAB, You Need A Budget, an online budget tool. I'm not really tuned into the amount we have in our checking account as a whole, because I don't look there. I look at YNAB. And YNAB has it all categorized.
So you might notice I mention we are all done spending because the cash is gone. For me, this means the money I allocated to spending in YNAB is gone. Our checking account still has plenty of cash because the sinking fund money is sitting there.
Before we used YNAB I would hold our sinking funds in a separate checking account at our same bank. Each pay period I would transfer the money to that second account, for later use. This worked really well to keep me from spending that money without realizing it.
I've seen online many people use Capital One 360 checking and savings accounts for their sinking funds. Apparently their online saving account allows for making categories for the money being held there. I think Lucky Robin may use this??
I know other people actually save the cash in envelopes. For me this would not work, only because converting to cash to save and then back to pay for things would be inconvenient.
So those of you who are using sinking funds, where do you keep your money?
Here's a link to Mary Hunt's explanation of a Freedom Account and how to set one up. This is really crucial to getting in control of your finances. I'd say this is step two after getting an emergency fund set up!
In our budget discussions this weekend, I explained to my husband that I get overwhelmed with the sinking funds. The fewer I have the better, but lately we seem to have many more that I'm trying to juggle. And my post here, is just to talk about where we are now, not necessarily to fix it, as that is still part of the process we are working on.
The sinking funds that work really well that we have had for quite a long time are for auto insurance, registration, renter's insurance, and Christmas. I recently added birthday's and that one works really well, also.
Some of the one's that aren't as easy for me are: car maintenance and repairs, eye glasses, phones, and college expenses. Now to be fair these are newer categories I have set up in YNAB as a place to hold funds for the above listed expenses.
In the past, before YNAB, we had sinking funds for the auto registration, insurance, and Christmas. The other short term saving money was put into what I called a slush fund. That money was put into a separate savings account. When a bigger expense like eye glasses came up we would dip into it. And this way worked for many, many years.
I know I could still go back and even set this up in YNAB. I just want to be realistic in the knowing how much to put into the slush fund or these newer sinking funds. Because anything above what we need to save for those expenses, I'd really like to go to our Big Goal.
The nice thing about YNAB is that I can look at each category and see what we spent in the last year or year to date. For example last year, we spent $1,900 in car maintenance and repairs. That is an average of $165 a month. So far this year, we are on track to spend more. We have spent so far $1,537 in eight months, which is an average of $192. I think I want to use an average of the two years and start saving that when we get to January. Our vehicles are ten years old, repairs and maintenance are a given in the coming years.
We don't buy cell phones or eye glasses every year (usually) so that one is different. Much harder to figure out a monthly savings. Although again, looking at past expenses, I could probably come up some average over the last two years and save that amount monthly.
And then there is travel expenses and vacation. This includes flying our daughter here to visit and us visiting here. Last year, our Vacation spending was $9,270. More than half of that was for my daughter's trip to Europe. We had a small vacation to Nashville, and a trip back to our home state. This year our spending for travel is already at $2,526, an average of $315 a month.
Again, not really looking for advice, just explaining some of the things we are looking at for cutting, saving and managing better. These are line items in the budget we need to look at closely, if we are going to make progress on our Big Goal.
Tell me a bit about what you do for managing short term expenses such as the ones I described.
My husband is getting close to the point of needing to have his timing belt replaced on his Honda Ridgeline. This is based on mileage and owner's manual suggested maintenance. Our local Honda dealership quoted $1200! This seemed high to me based on around $750+ that we paid for our van a couple years ago. My husband called another dealership 30 minutes away this morning and was quoted $899. He also wants spark plugs replaced and those were quoted less as well. We haven't scheduled the maintenance yet, but once we have a free day and the cash set aside we will be getting the work done at the dealership that charges less.
Groceries are slim here at the house today. I think we are going to use a gift card I received for some pet care to try out a new restaurant for lunch. There may be a little out of pocket, but far less than without the gift card! Tonight we will eat dinner in, but we will need a couple items from the store. And then tomorrow I'll hit the commissary for the upcoming weekly food needs. Right now the grocery budget is still looking really good considering how far we are into the month.
Today my husband and I are going to sit down and discuss the budget. I'm excited to see what comes of it! What are we both willing to do in the next year to make our money work towards our goals.
I borrowed a carpet cleaner from my neighbor while she is on vacation, so I could clean the carpets. An ill cat last year didn't help the condition of the carpet. She brought carpet solution she already owned to use on it, which I was not expecting. I ended up doing every area that didn't have furniture on it once I realized how dirty the carpet was. So I used much more solution that I planned when I thought I was just doing the high traffic areas. I decided to clean up the carpet cleaner really well (get the cat hair out) and give her $10 for the carpet solution I used. So thankful she let me borrow it. This was much less expensive than calling someone in and the carpets look really good!
I took the girls for their haircuts on Sunday and was surprised to learn we earned at loyalty reward of $7.01. I didn't know Great Clips did that! My younger daughter has a much shorter cut now and we go almost monthly now to get her hair cut. I'll take the reward any time they want to give it to me!
We've had so much rain this week that I turned off the sprinkler system. I expect it to be off until Sunday unless we get more rain. That will save some water on our next bill. We also will likely have less water usage now that our daughter went back to college. Less laundry, less toilet flushing/hand washing, less showers. That is until my husband returns at the end of the month.
The weather is significantly cooler today, so I know the air conditioner is running less. It isn't fall yet, and there are bound to be many more warm days, but fall feels like it is just around the corner.
I took the advice and ran the dishwasher a bit earlier in the evening last night and then opened it up a bit to air dry. Yes, a couple things were holding water, but everything was dry. I just need to remember to start it earlier and open it before bed! And I only ran it once in the last two days, since only two of us are home.
I think this offer was available last year as well. American Express is offering 10% cash back on cable and satellite bills, up to $30. We have two Amex cards, only one had the offer. I added it to the card and plan to use it to pay our bill over the next several months to get the $30.
Because of the change we made with our cable subscription, our bill is prorated and much lower this month. Just $59. The offer will give us $5.90 back this month. I'll take it!
Anyone else going to take advantage of this?
Our Big Goal is on my mind a lot. I just can't wait to get there, but it is going to be a long journey to say the least. My mind keeps wandering to the items we spend our money on and wondering what we can cut back on, or eliminate all together.
I've mentioned before I did eliminate the need for disposable feminine products for myself. That is probably only a savings of $6-7 a month on average.
We did lower our cable bill by $11 a month just recently, so that will add up over time. I think we may still let it go entirely after football season. We have more channels now, and while it was fun to watch HGTV for a day or so, I'm already not interested in watching most of what is on.
It seems there was something else, too, but maybe that is it so far! There is still work to be done to eliminate more items we spend money on. I thought I'd make a brainstorm list of a few I'm thinking about:
Alcohol ($100 per month)
Paper Towels ($18 a year)
Movies (theatre and purchased) $260 YTD
Restaurant meals $1578 YTD
Chips (too much snacking!) ?
Gum $50/year ?
Ooma (home phone) $48/year
Trash & Recycling service $198
Using the Dishwasher ?
Let me explain the trash & recycling. We pay $16.50 a month for trash and recycling pick up at the curb. The trash pick up is twice per week, and the recycling is picked up twice per month. The reason I could possibly eliminate the service entirely is because about 1.25 miles from our current home is a county trash and recycling drop off site. They are open at least five days a week, maybe six. I drive by it ALL the time, so it is on my regular route to other places I go. I don't think my husband would be on board, but it's an idea to consider.
I use our dishwasher every evening. I like using it. I wonder though if some money could be saved by not using it. How much electricity and water does a dishwasher use each month? I may skip it for the next few weeks while my husband is still at school and it's just dishes for my daughter and I.
I mentioned I made hummus last week. It got rave reviews from my family members. It was very easy, too. When I make something from scratch it always tastes better because it has fewer 'extra' ingredients needed for commercial processing. It makes me think if I should be trying to make some other foods we buy from scratch. Bread is one idea, another would be pasta sauce. I'd have to think through what we buy most often that could be made at home.
Just by doing this little brain storm writing session I have seen where we can put our focus. Eating out. I feel like we don't eat out that much, and probably compared to the average american we don't, but our average is over $200 a month this year. Considering our income that isn't a big amount, but accounting for our goal, it is!
What can you give up to meet your goals?
|<< Newer Entries||Older Entries >>|