Dividing the Dime Personal Finance Blog

I've decided to track my spending per paycheck and pay period, rather then do it by month. I've set up a spreadsheet that will show what I plan to spend and save from each paycheck, what I actually do from each paycheck, the difference between the two and the cumulative total of spending and extra saving for the year through the current pay period. Seems a little intense, but I think it'll be more accurate. I also plan to do a percentage of planned amount spent through the year so I can see my progress.

I want to keep track of extra savings on the spreadsheet as well as keep track of automatic savings and savings balances on another sheet. (lot of spreadsheets!! I think I might keep handwritten notebook paper records on some things...it's portable and I might stay more motivated)

Spending/Saving Plan for the Year 2009:

Total 401K saving projected (from gross pay): $3,250
Projected Net Spending Income $38,500
Planned IRA savings: $1,200
Planned Freedom Acct savings: $2,600
Planned Christmas Acct savings: $1,000
Planned wealth account savings: $8,000 (!)
Planned Tithes/Offering: $6,000
Planned Mortgage payments: $9,792 + extra $1,000 toward principle
Planned spending for Utilities: $3,600 (doesn't include cable)
Planned spending for Groceries and Household Supplies/Toiletries: $3,200
Planned money to the kid: $1,000 spending, $3,500 college (from 2009 income).

I'll continue to keep a cushion in my checking account, which I do by keeping two account totals (grand total and budget total used for bills...requires a lot of math, but I do love math and am up to the challenge). Grand total includes 'float' (which I think is what Tightwad Kitty called it in her budget plan--thanks!!). (Example: I set aside $140 in the budget for the electric bill but if the bill is actually $100, the difference of $40 is transferred out of the budget balance and remains in the checkbook cushion/grand total to cover when the bill is actually OVER the $140. So far so good.)

I have some breathing space from the end- of-year church reports that I prepare so I'm baaaack. I've been working on my 2009 budget and saving plan, which will still need a little nudge with upcoming changes in my pay and in bills.

It's a fresh start and I'm still excited. The kid, however, has made his presence known on his Christmas break from college. Remember he totaled his car in Sep 08? Well, my spouse (his stepfather) let the kid borrow the Toyota a few times (my spouse's car) during the break and a funny thing happened while the kid was driving... One, he hit a curb in the fog (driving too fast, no doubt) and the car required a $332 strut and rim repair, plus a $50 alignment. Two, on New Year's Day (Happy New Year's to us!!), he backed my husband's car out of the garage with the car door open and crumpled the car door. (We were able to adjust the track on the garage door...the car door...not so much.) The cost of that was $270 for a salvage car door replacement and $45 for a body shop to replace it. My spouse is the one with the heart for children and family and all that, but I'm hoping he reconsiders allowing the kid to drive his car. There's nice... and then there's too nice. This is the very reason why I don't allow the kid to drive MY car.

Fortunately, we had the Freedom Account working for us, plus a cushion in the checking account which covered both expenses. I WAS ahead by $700, toward my cushion in both my Freedom Account and checking account and now I'm not. Thankfully, the kid's back at college now. (say it with me everyone--YAYYY!!!) We'll begin again.

I still have a lot of finance work to do for my church's finance board, so my focus is mostly on that right now. But it still excites me to read about everyone's goals for the new year, so I keep sneaking a few moments to check in with the blogs and stay motivated for my own goals.

Flew home to visit with my parents and my brother and neice and nephew over the Christmas week. We had a great time sitting around and eating and it got me thinking about how important family is. I'm 8 hours away and I'm beginning to think about moving closer... Went without my spouse, just me and the kid, and was somewhat disappointed to return home to the spouse. I'm hanging in there with my marriage, but the good conversation with my 'family of origin' made me sad and disappointed about the lack of partnership in finances and other things with my spouse. I've given up on trying to make the marriage better and am just trying to be content and make the best of the situation (he is, after all, a nice guy...and he cooks!!) Maybe the new year will have us in a better place...

Anyway, tentative budget ideas for 2009...I've been inspired by so many blogs. This year instead of doing a monthly budget and spending track by month, I think I'll do a paycheck budget PER paycheck and PER pay period. Then using that, I'll do a yearly tracking of year-to-date expenses against a yearly budget and percentage spent of yearly budget instead of trying to fit it into calendar months. Think it was Sheila's Personal Finance Blog that gave me that idea (thanks Sheila!).

Think (hope) this will give me a clearer picture of my spending and saving. Even though monthly budgets is what I've always done, I find lately that it's been difficult to reconcile some of my numbers at the end of the year. I get paid every 2 weeks and somehow it throws off my budget numbers when I have to stretch the paycheck at the end of one month into the first week of the next month. Anyway, I think this will work better for me this year.

More ideas to come...

Haven't written in a while. This is a quick check-in. I'm one of the finance chairpersons at my church and this time of year requires me to work out the church's financials during my spare time. This includes input on the church's budget and typing it up on Excel, plus finalizing the bulk of the data entry to print out the individual contribution statements of their tithes and offerings. Busy time for me and I have less time to focus on my own numbers.

Plus, there's Christmas shopping and traveling.

However, I was just checking in, reading the blogs, and it's SO much fun to read about everyone's 2009 goals! I'm thinking I'll work on smaller goals toward the first of the year (like fully funding my Christmas shopping account). Then I'll work on heavier goals after checking off a few small goals. I have a lot I want to do, just need to prioritize and update my sidebar. Main goal: Save as much as possible!!

I feel inspired by everyone. My spouse and my son are still not on board or working with me (they appear to be working against me). In fact, I'm bracing myself for my son being at home for the Christmas break...he's high maintenance and I have to stay focused! But I'm still excited and still working on both my spouse and my son. Hope to blog again soon. Everyone else...keep up the inspiration.

Already, like others out there, I'm looking at new financial goals for the new year. I love this fresh start stuff. It always gives me energy. I've tried to involve my spouse in my excitement and my review, but as usual, he lacks interest. I really just want to throw the book at him, but as the good wife, I just smile!

I've been reviewing my (our?) savings over 2008 and realize that I am still all over the place. I mean I've done fairly well, but I had more of a savings PLAN in place for the past year, rather then savings GOALS.

I believe I have 8 payroll savings allotments and 2 bank withdrawals for savings accounts (including retirement accounts). The plan was to consistently save as much money as possible.

In addition to the automatic deposits, I used lots of coupons, shopped at Good Will, stocked up on grocery sale items, took my lunch to work, and avoided shopping and going out to eat as much as possible.

Then, nearly every time I got extra money, say, over $100 or $200, I played with it in my head and on paper, dividing the deposit amount across at least 3 accounts, sometimes more. (My tax refund last year was split between every account I have PLUS I kept an amount for spending.)

It's worked for me...sort of. I mean, I have a good running start on most everything I wanted to fund. So I guess that was my plan AND my goal. But I'm like a juggler with too many balls in the air. Here I am at the end of the year, and I can't scratch anything off the list.

I shouldn't feel disappointed, but in a small way I do. I'm going to look at things with a new eye and narrow my focus...

Received 3 paychecks this month instead of the usual two. Also received $82 in overtime.

Regular household expenses: $3,261
Spending from Freedom Account and cushion:
Paid $475 Home warranty
Paid $410 Car repair
Paid $103 AAA membership
Paid $141 Plumbing repair (leak)
Total spent: $4,164

Notes:
1. Spent $282 on groceries, about $80 over the budget. $200 a month seems to be more and more unreasonable now that I'm at the end of the year, so I think for 2009, I'll do a budget amount by quarter or a semi-annual budget amount and track that instead of a by month figure, since I do a lot of stocking up when things are on sale.
2. Withdrew $550 from Christmas account. Will split with spouse and add to this with paycheck amounts, but don't plan to spend a lot this year.

Total Regular savings (from gross pay): Freedom account, $270. Education account, $300. Christmas $0 (withdrew nearly all). House repair account, $75. Creative ventures, $30. 401K, $339.

Total Regular Savings (from net pay):
Wealth account, $100. Extra mortgage payment account, $80. IRA, $100. the kid's moving-out-on-his-own account $10.
Car account: $100

Extra savings: Wealth account, $100, Cushion in checking account, $150 added.

Too many savings goals. Goal for November is to narrow my focus in my savings goals...at least a little. Also to review 2007 and 2008 total household spending to begin planning household budget for year 2009.

I had hoped to remain in ignorant bliss until some of this crazy stock market action has settled, but I opened my IRA statement quite by accident and was horrified to see that the value of my IRA (stock mutual fund) dropped from nearly $44,000 from last year to $31,500 currently.

Ignorance WAS bliss. Still contributing $100 a month. And I still have about 20 years to recover, so I think I'll be ok. But still, could someone pass the Kleenex, please...give me a moment...

(Note: I haven't yet reviewed my balance in my 401K. Same deal, I imagine. Considering my wide-eyed reaction to my IRA balance, I'll wait as long as possible to look at the balance for my 401K. Good grief!)

Yes, I'm a Freedom Account addict!!

If memory serves correctly, I've had my Freedom Account going for about 2 years or less and it was rough (rough!) in the beginning, but lately I've noticed that things have smoothed out nicely.

The plan is still to deposit an automatic $90 from every paycheck I receive, which I do faithfully (even when it seemed like all I did was take it out again). (I've previously added extra money like tax refunds also.) I also faithfully balance the subaccounts which are: cushion, car insurance, car repair, escrow/home warranty, medical expenses, and travel.

This year I expected to pay about $550 or so in home mortgage escrow. That was how much I'd set aside in my Freedom Account. (The bill has been between $400 and $700 every year except one year, when we got a refund.)

However, when I received the statement from the mortgage company, we only owed $15 in escrow!! A far cry from the $550 I was expecting to pay! That means I can carry over the $550 into next year's escrow if needed. I'm excited about that. (Of course, I wrote the check for $15 escrow and mailed it quickly so they wouldn't change their minds!!)

As usual in the life I'm living, there have been several large expenses throughout the year like car repairs and dental work which I've used the Freedom Account for. But it's working, working, working, and I love it, love it, love it!

The kid continues to have a spiritual growth spurt and has matured a great deal due to surviving such an ugly car crash last month.

It's affected our relationship in a positive way. As a result of this, I've had more meaningful conversations and emails with him. I've expressed over and over how extremely grateful I am that he survived this crash and that he was ok. I found out that until this happened, he didn't seem to think that I cared one way or another about his wrecklessness or about what happens to him. How did we get to that point?? That says sad, sad things about our prior relationship, but I did read the Five Languages of Love (I believe that's the title, recommended by a fellow saver) and can see what I could have done differently. Anyway, I'm incredibly grateful that we both got a second chance.

This crash has also affected my budget. We lost a car which cost me $3500 and with only liability coverage there was no pay-out for it. We received $255 from the wrecker (who'll use it for parts). We're adding that $255 to the car fund as a start, since I (nor he) had no plan for replacing a car so soon.

The kid's looking into getting a job that he can walk to. He handed over his debit card when I asked for it (the week before the crash in September, he had $75 in overdraft charges). He's now only using cash, but a lot less of it, since he's without a car and on foot.

Without his car, the gas for it and the insurance are no longer needed. The insurance premium is about $550 lower (we had to cancel the insurance we'd just set up for him on his own and put him back on our insurance as a driver). He's also eating in the cafeteria rather than at every drive-through that's near campus.

His goal is to get by without a car until summer. He's hoping to save money to purchase one. So much has changed. I'm still so incredibly grateful.

I just hit a work anniversary and realized this: I am tired of working!

I've been working full-time for 22 years (with a one year break in my late 20s due to a relocation move with my first husband). I'm TIRED!

But every morning I drag my tired butt out of bed, wash my face, brush my teeth and show up, because payday is around the corner and the only way I can see that I'll become financially free or wealthy (dare I dream?) is to focus on doing everything I can to honor the money I make and to save as much of my paycheck as possible.

Nine years, 11 months and 13 days until retirement.

My current job is not a job I love (nor have any of the previous jobs been jobs I've loved), but I currently work with people I both admire and enjoy working with, so I let that thought comfort me in the midst of my day-in-day-out routine.

My dream, however, is to wake up and stretch (with a joyful smile on my face of course), THEN decide if I want to write a novel or make pancakes that day. Or decide if I want to tend a garden or go to the library. Or decide if I want to tutor school kids in math or learn a new instrument.

Not only that, I also want to be able to donate money (and time) to any number of causes out there that have tugged at my heart in the past several years, either locally, nationally or internationally.

In my twenties I had no idea that I'd be working this long. I guess I thought I'd marry some rich guy and live happily ever after??? It started to dawn on me in my thirties that the rich guys weren't looking for me (though there were plenty of poor guys who loved me madly) and here I am in my forties still at it.

One day, one day... A girl can dream, can't she?

Had high goals of saving on utilities and groceries this month since my son would be away at school rather than home every weekend. However, we didn't do as well as I'd hoped.

Total household expenses: $3,103 plus $639 for regular car insurance premium, so that's $3,742 total. (Transferred $650 from Freedom account to pay for car insurance and extra.)

Utilities were about $60 cheaper than prior month, but still higher than I wanted. Groceries were over the budgeted cash envelope amount of $200 (I borrowed from other envelopes to stock up on sale items--I bought 6 boxes of Cheerios!--and to buy snacks for the kid at college.) I've been at or below $200 a month four months this year for grocery purchases (includes some household items, but I budget additional $40 to $60 a month for household items). Still working on this...
Gas was also over the budget amount due to extra travel to my son's college.

Added regular savings allotments to all accounts, plus extra $64 not used (a gift check for shopping).

Refuse to look at the balance in my IRA. I know it isn't pretty. But my regular savings accounts are still building up. I'll have to comfort myself with the familiar routine of regular savings allotments and 2% interest.

The kid is doing well after the car crash. He's back at school and grateful to be alive. He's settled and quietly maturing and I'm so grateful and quite proud of him. He's managing his classes and sports and has applied for work study to save money for a car, he tells me. He wants to have one before next summer in case he gets an internship job. Or he'll get a regular summer job if the internship doesn't work out. I didn't say anything to that except "Good for you, son." This was exactly the kind of maturity I was looking for. A lot of trauma to get there, but I'm grateful.

We had a pick-n-pull company come pick up the car and they gave us $255. I put that into an account to start him off in saving for his car. I think the kid will stay motivated, but we'll see. Think good thoughts...

I do not buy lotto tickets. Nothing personal. Maybe some religious concerns. But really, I just prefer to keep the dollars that I work for. I've probably spent a few dollars over my lifetime buying raffle tickets, scratch-offs, and the like in the past, but no regular lotto tickets for me.

I watched a show about lottery winners. It was fun to watch. I even found myself wondering what I'd do with all that money at once.

But here's the thing. I used to work with a gentleman who was in his late 50s and unmarried. He had a few expensive hobbies like traveling abroad, photography, and buying $20 worth of lotto tickets every Friday. Every Friday without fail he would tell us that he felt he had the lucky numbers this week and he would purchase $20 of lotto tickets after work. I worked with him for 10 years. We eventually grew tired of teasing him about winning, but I can only recall him talking about winning a prize of $500 and some odd dollars during the 10 years I worked with him.

The 'thought' of prosperity seemed to help him feel rich but I wonder, now that he's in his late 60s or early 70s (I'm no longer in contact with him), does he ever wish he'd put that $20 a week into something more certain? That's approximately $100 a month! Multiply that by 10 years and even without interest earned, it's over $12,000, which is a tidy chunk of change.

Anyway, he taught me to treat my paycheck as my own personal lottery winning. Yeah, I have to work for it, but payday is a good day. I'm happy for people who actually win millions in the lotto because that HAS to be exciting. But for me, every payday that comes, I get excited in trying to save as much as possible and stretch that baby out as far as it will go. That's about the only winning I'm going to be doing.

Well, the kid has done it. He totaled the car he drives. I was incredibly relieved to find him ok with very few scratches on him. Praising God for that all day and every day. He was pretty shaken up and I'm hoping this will become an important life lesson for him.

Here's what happened:
His college is about an hour and a half away. I called him Friday night around 10:30 to make sure he was at the dorm in case the storm (Ike) gave us any backlash. He said, "I'm ok, Mom, just hanging out here." We said good night, love you, etc, and I thought that was it.

At 1 a.m. we (my spouse and I) get a call from him. My son says "I've been in a crash, the car rolled over 3 times. I'm halfway (between school and home, which is all expressway). He asked if we could come get him... then his cell phone went dead.

We drove nearly to his college town (praying), then back again hoping to see him on the highway. We didn't find him nor his car and his cell phone was dead. There was no rain at all, so we were grateful for that, but we didn't find him. We went back home at around 3:45 a.m. and on the home voice mail was a message from him, except he was talking to the clerk in the gas station (not us), telling the clerk about the car crash and asking if there was a place to plug in his phone so he could get his step-dad's number out. (He didn't know it.) We called the gas station back (caller ID) to get the location, which was closer to home than we thought. We went driving again to see if we could find him. By this time, at least we knew that he wasn't trapped in the car.

We drove for another hour up and down the expressway, praying the entire time, and still didn't find him. We found the gas station but it had been 2 hours since he'd been there. At 5:45 my spouse's cell phone rings and my son is at the house. The tow truck had towed his car and him to the house. We were ten minutes away from home by then. By the time we got home again it was nearly 6 a.m., the tow cost $293 (for 15 miles), we had a copy of the police report (they were going to impound it, but the tow truck offered to take him home since there was no criminal or liability incident--nothing or no one else was hurt or harmed). Turned out my son walked for miles and miles on a dark access road trying to find help and he stopped at 2 gas stations and eventually found a church where firemen were setting up for evacuees from the hurricane and storm and they were able to help him.

Anyway, I was very glad and grateful and relieved to see him. So much so that I was in tears. The car, however, not so much. It is totaled. Rear windshield totally out, front windshield crushed and shattered, the trunk and gas tank area crumpled, tires blown, axle bent, etc. It's a 1997 Nissan so we only carried liability insurance on it. (We just got that insurance as a separate policy in his name at the beginning of the month!!)

He was speeding. Such a sad thing that this happened because he was speeding. And on the road when he wasn't supposed to be there, in the middle of the night. And it could have been SO MUCH WORSE!! But thank God, it wasn't. He'd already received 4 speeding tickets within the last year and he's had defensive driving classes and all the lectures about driving carefully, taking good care of the car, etc. It's unfortunate, but this may be the wake-up call he needs to take more responsibility - financially and personally. He is now without a car and without any plan for getting a new one.

I feel like I've done my part in purchasing the car and providing him transportation and insurance and rules. He didn't hold up his end of the bargain by respecting that. He could have died or killed someone because of his wrecklessness. Thank God he didn't. He now has a second chance to do better and I have a second chance to hopefully watch him learn. He appears not to be 'teachable' by me, but I'm hoping he will still 'learn' from his actions.

Right now it's a good thing for us that he stays in a dorm room--we dropped him off yesterday. We'll keep doing that until we (he) comes up with a better plan... But again, I'm SO GRATEFUL that he was ok.

I'm reading everything I can and watching a lot of Dave Ramsey, Suze Orman, the Big Idea, etc., to get additional ideas to save more money now that the kid is back in school. I'm saving fairly well each month, but feel like I should be doing more, saving more.

Budget: I've reviewed my spending plan for the millionth time this year, constantly trying to cut expenses and force savings. We hope to be able to cut down on utilities and groceries this month.

Current savings: I already have automatic savings allotments in place. I already save all my change and use the change for various savings goals (the kid, the grandkids savings accounts, Christmas shopping). The new thing I've started (after reading a blog or article in savingadvice.com about 'the cost of saving change') is to save as many of my one-dollar bills as possible and not spend them, then deposit them into various savings accounts as well. I deposited $8.00 in my emergency fund this week. Yay me.

Interest rate: My 6 month CD (principal $2500) matures in November and I'm searching for another CD that may pay more interest. I also plan to add enough to make the principle $3000.

Education fund: My son's education fund will be near $0 after this school year, much to my dismay. I'd hoped he would have made better decisions to use the money more wisely, but at the same time, I'm glad he's attending school and that I was able to help.

Retirement savings: I'm trying not to look at my IRA and 401K balances, praying that they heal themselves from the losses over the past year. I'm still contributing the same amounts.

Mortgage: I have a new plan to pay extra on the mortgage--I plan to save about $80 each month (which was the monthly payment of the second mortgage which we paid off earlier this year) into my money market account. I'll track those deposits and withdraw that accumulated amount at the end of each year to send in to the mortgage company as an extra principle payment. It won't be a lot this year, but it's better than nothing and I hope to shave a few years (and interest) off the loan by doing this consistently.

Emergency fund: I have too many money goals at the same time. That's why I feel like I'm not making a lot of progress. My emergency fund is a combination of my checking account cushion, the savings account cushion connected to this checking account (which I'm also using as my 'freedom account' to pay for large expenses that creep up on me) and a money market account. Totals are $500 in checking and $1500 cushion in the savings account. There's approx $8,000 in the money market acct, part of it the 6-month CD I was talking about. My goal for emergency funds is $18,000 so I have a ways to go. (Gee whiz!) PLUS I want to save for our next car purchase. I feel like I should focus more on this, but we'll see. Too many money goals... I feel like I'm a hyperactive saver...I'm all over the place...

Made $473 extra in overtime during the month of August. Received gift of $100 (for birthday).

Total household expenses from household account: $3,646 (Ouch! Expensive month for us!)

Extra bills paid from the freedom account and savings cushion:
Paid $412 balance on Visa card (for airline tickets to visit my parents in July)
Paid $265 for second half of son's dental work.
Paid $194 for new eyeglasses.
Paid $536 for son's car insurance--a new policy after removing him from our policy (used $200 from savings, $336 from household account-overtime money)

(I'd hoped to save all the overtime money, which is why I was motivated to work it. However, it got sucked up into real life, which included the insurance and an exterminator/pest control contract visit at $111. Bummer!)

SAVINGS:
Total regular savings (automatic deposits from net pay): $100 to wealth account, $80 to extra mortgage payment account, $100 to IRA, $10 to son's no-touch-move-out-on-his-own(!)account.

Total regular savings (automatic allotments from gross pay): $180 to freedom savings account, $226 to 401K, $24 to Christmas ccount, $50 to furniture account, $20 to Creative Ventures account, $260 to education account.

Extra savings: $14.50 to Christmas account, $100 to wealth account.

Freedom account is a little bare and I still have another insurance payment ($630)in September.

GOAL for September:
The kid has returned to school so we're on a crash savings diet in utilities and food in an effort to save even more. Goal is to add extra to rebuild freedom account cushion and also add an extra $100 to the Christmas account while maintaining all other savings goals. Hmmm....

After an earlier blog entry about my son and receiving some of the advice I got from fellow savers, I've made some steps over the summer to help train the kid in financial matters. He was destroying the budget this summer and it had to stop. I feel like I tried so hard to teach him financial foundations as he was growing up, but he wasn't interested before and now, at 19 years old, he still doesn't seem interested. And because I try to 'help' him financially by giving him money, I made the situation worse.

Anyway, I either failed at teaching or he failed at learning, but I made a few changes mid-July after some deep thought.

The things I decided that I'll continue to do are:
(1) Pay for college tuition until the $25,000 I saved over the past sixteen years (mostly savings bonds) runs out.
(2) Pay for the maintenance and insurance for his car.
(3) Pay for food at home. And shelter.
(4) Pay for his prepaid cell phone.
(5) Give him an allowance of $200 each month during the school year at college with the stipulation that he doesn't ask me for ANY additional money during the school year for personal expenses. The consequence of asking will be a slight decrease and a big lecture. (The lecture part being my motherly right and duty.)

This summer, here's what I decided NOT to do:
(1) Not pay for his gas. (I was doing that even though he was working a summer job. Don't ask me why.)
(2) Not pay for his fast food addiction. (I was doing that, too. Don't ask me why.)
(3) Not pay for his overdraft fees. (I was doing that, too. Don't ask me why.)
(4) Not pay for his speeding tickets. (I was doing that...well, you know the drill...) I'd already paid for 3 of his speeding tickets within the past year. He got a fourth ticket in July and will pay it with money from his summer job.
(5) Not buy his clothes or shoes.

He's a heavy spender and I'm a heavy saver. (We're both heavy-weights--ha ha!) All of our arguments are over money. To me, wasting money (like on overdraft fees) is a crime or a sin--it's that SERIOUS to me!! But he seems to think it's no big deal, that I make a lot of money compared to him, that I should spend a lot of money...on him.

These were small but serious changes for me as the mother of an only child. It's so intense! But already I can see the change in my cashflow. The kid has been angry with me for weeks because of these changes. But I was angry before. Now it's his turn.

School will begin for him next week. Eventually I want this money challenge with the kid to be win-win for both of us, but I think we have a ways to go...

Thanks to all for your previous encouragement. I'm taking baby steps, baby steps...

Ok, so it really wasn't a birthday bash. It was actually a BORING birthday according to my son. For my birthday last week (the 15th), I tried to ask my family not to buy anything for me, but instead that we just enjoy a leisurely breakfast together at a nearby restaurant and to allow me to enjoy the one thing I really wanted...time alone to write and read.

The kid (who likes to spend money) wanted to buy me something expensive (which he equates with 'valuable') for my birthday and was very disappointed when I had no request for anything in particular. He bought me supermarket flowers (which were wonderful and thoughtful and smelled great and the best gift he's ever given me) and a scented name-brand candle that also smelled good, but that I suspect he paid too much for in an effort to impress a mother who doesn't want or need to be impressed or in an effort to show me he really loves me. (I keep telling him that love has no price, but his materialism convinces him otherwise.) My spouse also bought me flowers and candy and a gift certificate for clothes shopping. And we did go out to eat breakfast.

It's nice to be loved and for my family to want to give me nice things, but my prize gift that day was leaving my family behind and getting a motel room alone. Because of my frugality and my primary intention to read and write through that day and night, I got a basic single room at a Super 8 Motel. Clean, simple, relatively safe neighborhood, relatively quiet, free coffee, toast and fruit in the morning, and the room had blackout curtains, a desk where I could write and a fairly comfortable couch to sit on for reading. It was one day/night and it was absolutely fabulous. I read. I wrote. Then I wrote. Then I read. Then I slept. Then I wrote some more.

At my age, the main thing I lack is the freedom to do what I want with my time. My days are filled with my full-time job, having to get things done pertaining to the house or having to get somewhere or get the kid or my step-grandchildren somewhere or support my spouse or volunteer at my church or something. I want to read and write more often and sometimes I just want to sit quietly without 3 TVs and a radio blaring in the house all at the same time. (This describes my house accurately on a daily basis, but add to that 3 young boys--the step-grandchildren--that my husband babysits and there's not much quiet time to be had.)

My son thought that my birthday was the most boring birthday a person could have, but I am still smiling about it. Happy Birthday to me...

My IRA is in a global stock mutual fund and has lost approximately $8,000 in the past year or so. I'm still contributing an automatic deposit of $100 a month. The positive side is that I'm buying a lot of shares at a very low price. The negative side is that it doesn't feel good to lose that much money at my age.

I've decided to ride it out for a while longer until I can make a decision of some sort.

In the meantime, I'm maintaining all my automatic savings deposits. I have a lot of different savings goals (about 10 or 12--I've lost count) and savings accounts (about 10). It doesn't seem like I'm getting anywhere when I look at each account individually. Many of my automatic deposits are small, but they're steady. And overall, I'm doing better than I thought.

In addition to the automatic savings, I've recently found it EXTREMELY IMPORTANT to add 'random acts of deposits' to each account as I see fit. No real system--I just gather loose change and dollar bills that are found or left over from the previous week's budget and deposit that into the account I feel needs it. The bank teller looks at you funny when you deposit $3.35. But I stand strong, smile, and say, "yes ma'am, that's three dollars and thirty-five cents". My spouse and my child were mortified when I told them I do this every week or so. "That's ridiculous," the kid says. (The kid is the one who spends all of his money.)

These random acts of deposits will not make up for an $8,000 loss in my IRA, but I'm hoping my IRA will heal itself. These deposits help me remember my 'intention' and help me to save 'on purpose'. It makes me feel like I'm doing the best I can in spite of what's going on around me.

Christmas shopping used to destroy my budget. And my Christmas spirit. Year after year it just wasn't pretty. I needed a plan!

Several years ago, a library book called Getting What You Want With The Money You Already Have (by Carol Keeffe) encouraged me to save for specific goals like Christmas, even if I save small amounts. It turns out that small amounts added to small amounts equals much more than $0 added to $0. Who knew?

This year I'm funding the Christmas account with an automatic savings deposit of $12 out of every paycheck. Wow, you say.

From October of the previous year to October of the current year (which is when I make the BIG withdrawal) is the timeframe for building up the Christmas account. The minimum amount will be approximately $264 with just the automatic deposits.

However, the rest of the plan is this: Add to that some tax refund money. (This only works if I get a tax refund. One year I owed taxes. What a painful year that was. We had Christmas Light rather than Christmas Deluxe that year. We were fine.)

Add to that some random acts of deposits. Every two weeks before I get paid, I collect some of my dollar bills and loose change and deposit that into the Christmas fund, too.

Right now, there is approximately $455 in the account. I hope to have $600. I usually split this with the spouse (who does the primary shopping for the grandkids, my step-daughter's children). This helps ease the confusion and ease the budget. It also helps me limit my spending. Before having a plan I was horrified to find that after the dust settled I sometimes spent over $1,000 on Christmas gifts for my only child and a few other family members and friends. That was out of control and commercialism at it's best. I don't even remember what I bought and neither do they.

Anyway, Christmas is coming. If you celebrate it, do you have a plan for gift giving? A budget? Will you do something different this year? Next year?

Made $160 extra in overtime during the month of July.

Total household expenses paid from household account in July: $2,446
(Note 1: A week-long visit to my parents home out of state meant no gas or grocery expense for household--very little expense at my parents house, they live in a rural area. Tickets to fly were $400 for two. Will pay off credit card with savings next month.)
(Note 2: Cut the funding for the kid's gas tank in mid-July--until school begins--lowered gas budget by approx $80)

Extra bills paid from the freedom account and savings: $242 for car repairs, $264 for dental work for the kid.

SAVINGS:
Regular savings (automatic savings deposits from net pay): $100 to wealth account, $100 to IRA, $10 to the kid's savings account (the kid's move-out account)

Regular savings (automatic allotments from gross pay): $180 to freedom account, $226 to 401K, $24 to Christmas account, $50 to house repair account, $20 to creative ventures account and $280 to the kid's education fund.

Extra savings: $100 to car payment account, $65 to checkbook cushion, $80 to extra mortgage payment account, $100 from overtime to savings just because.

Focus.

Consistency.

Learning from my father's thrift. (My mother, however, calls him cheap.)

A cash-only budget (envelope system) for flexible expenses.

Regular automatic savings allotments toward several savings goals--wealth, retirement, Christmas shopping, home repairs, college fund, etc.

A steady salary. (I'm so grateful!!)

Shopping thrift stores (go Goodwill!!) for 80 to 90% of my clothing.

Discovering the finance book section in the library.

Discovering savingadvice.com (yay me!)

I love budgets. I love reading about budgets. I love re-working budgets. I love reading about other people's real-life budgets.
Because of the way I get paid, it took several years, if not decades to manage the income. I made the mistake (often) of thinking I had more momey that I actually had, because of the date my paycheck hit the bank. Sometimes payday fell on the first and third week of the month and sometimes it fell on the second and forth week of the month. Same amount of money, but I just couldn't get a rhythm to pay those first of the month bills plus save plus be prepared for unexpected expenses all at the same time.

I've pulled ideas from many (many!) money books. After years in 'research and development', I currently have the most decent plan I've had. For years, the problem has been this: On paper I can work magic. But the actual greenbacks...not so much.

Now I start with gross pay and account for all deductions and automatic savings allotments from my net pay. This helps me see how much I pay in taxes, health insurance, etc. Then I have 'fixed' categories that I write checks for (giving, mortgage, utilities, insurance and medical expenses). Then I have 'flexible' categories that I use cash for (groceries, household supplies, entertainment, clothes and the kid. Clothes and entertainmenet don't always get fully funded.) I use my debit card for gas and occasional planned expenses.
(The 'freedom account' that I mentioned in a previous entry helps with the unexpected or non-monthly expenses.)

My mind works 'monthly', but I get paid biweekly. I've just begun to do what I guess I'd call a paycheck assignment sheet every payday. I plan and deduct what bills I pay with each current paycheck and project expenses for the next paycheck. We pay the majority of our bills the first half of the month. The second half of the month I can focus on saving. With each paycheck I 'assign each dollar a destination.' (Dave Ramsey) This has helped out quite a bit in avoiding overdrafts and forgotten expenses and my waiting for the magic to happen and the monthly budget to work itself out. Who knew?

Still needs improvement and work. Trying to add 'cushion savings' as one of my fixed expenses right off the top. And also since I'm not currently paying a car payment, I'd love to eek out a monthly car payment equivalent to $300 (!!) payable to my savings for a future car purchase, but I've looked EVERYWHERE for that extra $300 and have yet to find it. And with the kid in college, I keep adjusting the numbers. With life in general, I'll be adjusting the numbers...I guess, forever? But that's fine with me.

I stumbled across a book in the library called True Prosperity, Your Guide to a Cash-Based Lifestyle by K.C. Knouse. This book would have been an excellent book for me to read before purchasing a house. Unfortunately I didn't read the book before purchasing a house.

Not to say I'm not overly grateful to live in my home and to be able to afford it, because I am extremely grateful. But here's the thing: People tell you that buying a house is the American Dream. They say it's a great tax break. They tell you to stop throwing money away on rent. I can't speak for everyone, but if you're a saver like me and thought you were really doing something when you had a large down payment for your first home, you're in for a suprise. Once you sign that paperwork and pay those ridiculous closing costs you are not 'home free'. You're in debt. You're obligated to a bank who technically owns your house until you pay off the mortgage, you're responsible for every repair, every appliance, and every bill, and now you have to cut the grass. Truth be told, this was not the dream I had in mind.

Purchasing a house created bills I never even heard of (Escrow? Or.. A water heater costs HOW much?) Talk about being a grown up! After putting down a large down payment, I didn't have much savings left, but sure wish someone had told me that I would NEED savings after closing on the house. Within the first few weeks of closing, we managed to replace a faulty water heater, purchase yard equipment (an all-day field trip to the local home imporovement store), and buy mattresses and beds for 2 bedrooms with miminal credit card debt. (For the rest of the house, we used our existing furniture from our apartments.) The previously uncharted expenses seemed NEVER-ENDING and I would stare at the ceiling at night wondering why all the people I talked to about home-ownership never told me ANY of the after-story. (Now I find that it's because it's considered "NORMAL" to struggle financially and everyone I talked to back then wanted me to have the same kind of fun they were having.)

After being in the house for 10 years, I've almost (almost!) got the budget manageable. (Yes, it's taken 10 years to adjust, cope and get a manageable budget.) I still have a ways to go, but the mortgage is our only debt. And I'm grateful for that. Besides saving for a new roof (and it looks like we might need a new stove and fridge soon, insulation in the attic, landscaping and plumbing work--oh the joy!), I'm considering trying to pay the morgage off early. Still researching that since I'm not sure this is the house we'll live in for the rest of our lives... But I'm thinking, thinking, thinking...

Before discovering this website and the many other websites out there for encouragement in saving, I pretty much had to encourage myself and motivate myself to save money while living with a spouse and teenage child that are bored by all things financial. I read lots of books and I'm a little nerdy, so those two things helped.

Within the last year I started a new thing to stay on track...I held a household finance meeting / conference every 2 weeks, usually when I got paid. But at least once a month. (So far I've been the only one to show up at this regular finance meeting.) At this meeting I would:
1. Review my paycheck stub.
2. Review our budget and budget each paycheck to the dollar (or 'assign each dollar a destination' - Dave Ramsey)
3. Pay all current bills due and project new expenses.
4. Update checkbook balance, transferring any amounts we were under-budget into savings.
5. Gather all loose change from my purse, the washing machine, the car, the couch, pockets, and under my son's bed to fund coin jars.
6. Check balances in budgeted cash envelopes and use some of the remaining cash (if any) for savings.
7. Review bank accounts and balances. (Balance checkbook once a month).
8. Clip coupons and review sales papers.
9. Go to the bank for payday withdrawals to fund cash envelopes.
10. Determine my financial net worth. (I usually do step 10 every other month or so.)
11. Give a rundown to my spouse until he falls asleep.

Meeting adjourned.

The kid.

The kid's college expenses.

The spouse.

The house.

Three automobiles.
(All are paid for but cost in maintenance and insurance. Unfortunately, for both the expense and the environment, it's difficult to get around our city without an automobile.)

Medical expenses.
(Includes my son's extensive and expensive dental work, his contact lenses, my glasses, medical concerns for 2 chronic illnesses (lupus--me--and cerebral palsy--my spouse).

Note: Feel trapped by many of the above expenses above, but trying to stay hopeful. I've looked and looked and will keep looking to see where I can cut back. I'm able to cut back on small items fairly easily, but these big items...yikes! It's not very pretty once I add it all up.

1. A luxury car.
2. A Rolex.
3. A gas-guzzler anything.
4. Diamond earrings. (I can't keep up with the cheap earrings.)
5. A yacht or boat.
6. A service contract on appliances.
7. A $200 dollar dinner at a fancy restaurant.
8. An exotic snake as a pet. (eeww!)
9. Breast implants.
10. A third husband (the first two have taught me well).

In addition to the last entry about my savings plan, there's more...

(I LOVE savingadvice.com--somewhere to go to be accountable and to share and be encouraged with our goals!)

Anyway, the actual accounts I have for saving and building wealth are my money market account which has almost $6,000 and my two retirement accounts (traditional IRA and 401K.) My money market account I call my wealth account, but I used to call it my emergency fund. Then I called it the account to start my early retirement on. (It ain't looking good. Only $494,000 to go before I reach that half a million I was dreamed about.) Then I used the account to 'borrow' money from myself to put a down payment on the house, put a down payment on one of the cars we own and to purchase the other two cars with cash. (Not all at the same time, of course. What do I look like--Warren Buffet?)
The account high has been $17,500. The low has been $2,500. The idea was to pay the equivalent of a car payment to the account, which I was able to do some years ago ($300 a month), but I've only been able to deposit $100 a month for the past several years without going into the account to get it back out (smile). Of course, I deposit extra money there too, like tax refunds, etc.
Currently I just call it a wealth account because it has kept me/my family out of a lot of debt. I also use this as the 'parking place' for my auto and home insurance deductibles. Even though it's not looking good for early retirement at 50, I will keep building for both the next car purchase and some increased financial independence.

I do wish I'd done more several years ago. There was a time when I made less money, but was able to save a higher percentage of my income--and I didn't do it. Trying to make up for lost time is impossible. But, currently, it is what it is... I use this blog to stay encouraged.

I want to write this to publicly acknowledge my savings plan.

In addition to the "Freedom Account" and its sub-accounts which I mentioned in a previous entry, I have a household bill paying account. This is our joint checking account. (I try to keep a savings cushion within the checking account balance after a memorable run--and re-run--of bounced checks due to unexpected expenses.) I also have separate savings accounts for: household repairs, Christmas shopping, Creative Ventures (for writing supplies, community classes and travel), the kid's education account, the kid's 'getting out on his own' acount (the kid's got to go), and an account for my step-grandchildren to hopefully one day help them with college. (They're 9, 4 and 2 right now and I've been saving pennies and nickels. Not adding up very quickly, but it's something.) I have allotments or automatic payroll deposits to most of these accounts. All of these accounts are planned spending accounts...I try to build them up to a certain level in order to spend it.

My parents tell me this is a ridiculous number of savings accounts. My spouse stopped listening after the second account. (I have a list in case anything happens to me.) I don't even bother telling my friends, because no one gets it. Several years ago, I would have thought it was crazy to do this, but it actually works for me. I hear I can do this easily on-line nowadays, but I got the idea a few years ago from How To Get What You Want With The Money You Already Have by Carol Keeffe. It helps me stay organized. I have separate goal amounts in separate accounts that are easy to see and even though they build up VERY slowly, they do build up. It also helps that some monies are only available by driving to the bank and making a withdrawal. This is where I'm constantly "dividing the dime" -- I'm always trying to divvy up money to go to different saving goals EVEN TO THE LAST DIME. (smile)

Been without a computer for over a week. Blah!

Anyway, have had some interesting happenings with the kid, my 19-year-old--he needs a new crown (teeth issues), has spent most of his job money on fast food, and just got another speeding ticket this weekend. Heavy sigh...

The kid is keeping me from my millionaire status. Or at least keeping me from getting closer to my millionaire status. Depsite my years of thrift and saving and household cash management, my son has turned out to be materialistic, name- brand conscious, a fast food junkie, "forgets" to turn off TVS and lights, and he lacks a serious or consistent work ethic.

This is a problem.

I think the materialism began in middle school where although they wore uniforms he was obsessed by the expensive athletic shoes that the 'other kids' were wearing. So it began...

He's my only child, the kid, so I have trouble holding my ground. He's doing well in school with good grades and except for the money thing, is reasonably well-behaved. Somehow in spite of my efforts with him, I've gone horribly wrong in the finance department. While I avoided buying him a car in high school (and constantly argued with 'but all my other friends have one'), I did buy a small used car for college use ($3500) AFTER he graduated high school. He now has some independence and uses it to drive back and forth to school and to his summer job, but he has no greater sense of responsiblity. I neglected to have him sign on the dotted line for 'being more responsible.'

My goal is to save. The kid's goal is to spend. He has a huge sense of entitlement, which is partly my fault--a round of applause for the Bank of Mom!--and partly the 'fault' of our neighborhood and environment and society. In high school many of his friends had new cars, Ipods, laptops, expensive cell phones, name-brand every thing and NO JOBS! I didn't know any of these parent very well but would love to ask what the blazes they were thinking--obviously now I'm the one not thinking!

Things I regret or might regret, but am making a choice to live with: I bought him a car and required little extra responsibility from him. I still buy most of his gas and pay for his maintenance AND I added him to our car insurance. (The car is where we'll begin the second round of 'weaning.' This has been a financial mistake for me.) I recently bought him a re-furbished laptop for college. I pay $65 a month for his prepaid cell phone (namely so I'm able to call him, but his conversations with me are not really worth $65 a month!). I give him $100 a month allowance during college and will likely continue that or increase it due to the increase of gas prices. (He plays basketball for the school under partial scholarship--makes it difficult for him to work during school).

So.

I have to forgive the kid for being 19. I have to forgive him for not taking my advice. And for not doing what I do. And I have to forgive myself for the mistakes I've made. (Boy! the mistakes I've made.) But as the Bank of Mom...the doors will be gradually closing. (Gradual because I have to wean myself as well as the kid. And somehow I have to get my spouse on board! My spouse is worse than I am...)

Still working with ideas and a better plan than what I have. Will keep you posted.