If I watch “Jon & Kate +8” for more than seven minutes at a time it makes me never want to have children. While I realize that Jon seems like a responsibility shirking man-child, Kate seems to never believe that he can do anything correctly if it’s not done her way. Seriously, how many ways is there to wipe oatmeal off of a kid’s face? Just clean it.
At the beginning of our long walk to freedom from debt I knew that we would have plenty of people spewing forth negativity & all the reasons why debt cannot be conquered. But what I didn’t realize was once we began overcoming some of the debt that some people would still be negative despite our good results.
I have found out that just because we’re not doing it their way that they really believe we’re not doing it at all. This is what I call “The Kate Gosselin Effect” & I’ve been on the receiving end of it a time or two. While I don’t generally begin conversations about our debt quest, I do chime in sometimes when it’s brought up in conversation.
An instance of the Kate Gosselin Effect was when I told someone we are paying $25 extra a month on our car payment. It’s not a huge amount & there are other places I could put it. However, $25 is not such an outstanding amount that I would do serious damage with it on another bill. But if left in my pocket that same $25 could be spent each month on various items & I would likely not miss it. So I designate it. I make it work for me. I tell it where to go.
By our calculations we will have the car paid off early already. But by throwing that extra $25 a month on it, I can spare myself of four months of payments. I’m aware that this $25 does not apply towards the principle like it would if I paid it extra on the house. Car financing generally charges all of the interest up front in the loan. However, every $25 that I pay now is $25 I don’t have to pay later. I am $25 closer to being debt free.
I received blatant criticism from the person I was talking to & they declared (Not Michael Scott style declaring) that I should be paying it extra on another bill. I explained my reasoning & they continued for some time to let me know how wrong I was. I ended the conversation with, “Debt free is debt free no matter how you get there.” They had no response.
Listen, until they sit at my house & cut coupons for me to save that $25 then their opinion really doesn’t matter. When they start making their way out of debt & change their spending behavior then maybe I’ll find their advice valuable. Until then, your advice doesn’t apply to me.
For the life of me I cannot understand why people think I will lay awake at night recalling their opinions of my financial decisions. My way may not work for you but that doesn’t mean you can’t be debt free or more frugal. Because no matter which frugal way you decide to work your finances, the bottom line is that you will be more financially set than you were yesterday.
So take that financial Kate Gosselin’s! I don’t believe my method is the only way but I do know that it’s working. In the words of Dave Ramsey, “Live today like no one else & tomorrow you will live like no one else.”
You got it Dave. :)
Nevertheless ~
Tuesday, September 29, 2009
Tuesday, September 08, 2009
“The Freezer Chronicles”
Jason & I have been saving up for a nice upright freezer for some time now. Basically, I’m tired of being so busy after work. After work I usually find myself in a frenzy of appointments & stops to be made before I go home. Those appointments often consist of the chiropractor, allergy clinic, hair appointments, grocery store, & whatever else has taken priority. By the time I get home to start dinner & do homework, I’m usually ready to fall over.
In an effort to minimize grocery store stops we purchased a membership to Sam’s Club at the beginning of August. Our goal was to purchase as much as we could for the month & then only buy veggies or fresh fruits weekly as needed. We’ve been contemplating buying a nice freezer for some time now & getting the Sam’s membership really made our choice for us. We did spend half of our monthly budget on food at the beginning of the month & it took a few hours along with a trip to Sam’s out of our time.
This has already been a great choice for us because last week the only item I stopped for on the way home was milk & I did not have to go out of my way thanks to the Dollar General on the way home. I was able to go straight home more days than not & get started on my homework before my husband came home.
Yesterday we purchased our freezer sort of on a whim. Jason & I both discuss large purchases for a long time before buying. With all the Labor Day sales in effect we decided sort of last minute to stop at Sears to check their freezers out. We found one we liked for $450 plus tax with free next day delivery. It was basic & did nothing except freeze food. However, for Sears card holders they were offering another 5% off the purchase.
I love to bargain. I love to negotiate. I’m my dad made over when it comes to sales & my favorite job ever was a sales position. I will nearly always ask for a better bargain & I will walk away when I don’t feel I’ve been given a fair price. Yesterday I asked the Sears salesman if he would be willing to drop 5% for me if I pay in cash & take the freezer today. Right now. Presto & you’ve made a sale.
He said no. I asked him if the manager would be willing to talk to me. He said no. Eh, no big deal to me. I don’t need the commission & there’s no harm in asking. But then he said something that really surprised me. He said, “Cash doesn’t talk like it used to.” Then he offered to open a credit card for me. I was nice but I was firm when I said, “That’s not going to happen.” He then tried to give me a good reason for opening the credit card…the coveted 5% off. I said, “I’m not interested in giving Sears more money than this freezer is worth.”
He was nice & we were nice. But we weren’t budging. So off we went to Lowe’s where I’ve always had incredible customer service. They seem to appreciate my money no matter what form it comes in. We found a better model freezer with a digital thermostat & a locking feature for $428 with 10% off & free delivery was included. By the time everything was said & done with we had purchased the freezer for $412 tax & all. Lowe’s also attempted to offer me a credit card & I told him that we were paying with cash.
I learned yesterday that cash may not talk everywhere. But that’s not what is important. Cash talks to ME. It’s freedom baby & I like it. Paying with cash yesterday was a great feeling & today we’re not anyone’s slave. (Proverbs 22:7) We worked hard to save & we met our goal. We didn’t prematurely buy it before we could afford it.
I’m not belittling anyone who has had to open an account to make such purchases. Lowe’s saved my bacon a couple of years ago by issuing me a card when I was single & badly needed a water heater. But now things are different. The emergency fund is in place, we are working on our savings account, & we are living below our means. We plan now for things we need later instead of spending money tomorrow for purchases we made today.
My cash is talking & I like what it says. :)
Nevertheless ~
In an effort to minimize grocery store stops we purchased a membership to Sam’s Club at the beginning of August. Our goal was to purchase as much as we could for the month & then only buy veggies or fresh fruits weekly as needed. We’ve been contemplating buying a nice freezer for some time now & getting the Sam’s membership really made our choice for us. We did spend half of our monthly budget on food at the beginning of the month & it took a few hours along with a trip to Sam’s out of our time.
This has already been a great choice for us because last week the only item I stopped for on the way home was milk & I did not have to go out of my way thanks to the Dollar General on the way home. I was able to go straight home more days than not & get started on my homework before my husband came home.
Yesterday we purchased our freezer sort of on a whim. Jason & I both discuss large purchases for a long time before buying. With all the Labor Day sales in effect we decided sort of last minute to stop at Sears to check their freezers out. We found one we liked for $450 plus tax with free next day delivery. It was basic & did nothing except freeze food. However, for Sears card holders they were offering another 5% off the purchase.
I love to bargain. I love to negotiate. I’m my dad made over when it comes to sales & my favorite job ever was a sales position. I will nearly always ask for a better bargain & I will walk away when I don’t feel I’ve been given a fair price. Yesterday I asked the Sears salesman if he would be willing to drop 5% for me if I pay in cash & take the freezer today. Right now. Presto & you’ve made a sale.
He said no. I asked him if the manager would be willing to talk to me. He said no. Eh, no big deal to me. I don’t need the commission & there’s no harm in asking. But then he said something that really surprised me. He said, “Cash doesn’t talk like it used to.” Then he offered to open a credit card for me. I was nice but I was firm when I said, “That’s not going to happen.” He then tried to give me a good reason for opening the credit card…the coveted 5% off. I said, “I’m not interested in giving Sears more money than this freezer is worth.”
He was nice & we were nice. But we weren’t budging. So off we went to Lowe’s where I’ve always had incredible customer service. They seem to appreciate my money no matter what form it comes in. We found a better model freezer with a digital thermostat & a locking feature for $428 with 10% off & free delivery was included. By the time everything was said & done with we had purchased the freezer for $412 tax & all. Lowe’s also attempted to offer me a credit card & I told him that we were paying with cash.
I learned yesterday that cash may not talk everywhere. But that’s not what is important. Cash talks to ME. It’s freedom baby & I like it. Paying with cash yesterday was a great feeling & today we’re not anyone’s slave. (Proverbs 22:7) We worked hard to save & we met our goal. We didn’t prematurely buy it before we could afford it.
I’m not belittling anyone who has had to open an account to make such purchases. Lowe’s saved my bacon a couple of years ago by issuing me a card when I was single & badly needed a water heater. But now things are different. The emergency fund is in place, we are working on our savings account, & we are living below our means. We plan now for things we need later instead of spending money tomorrow for purchases we made today.
My cash is talking & I like what it says. :)
Nevertheless ~
Friday, September 04, 2009
"And another one bites the dust!"
Wow, I'm feeling good today! Today I was able to write a check for the last payment on one of our debts! I am so super pumped. On days like today, the budget doesn't seem so bad. :)
Every time we pay off a debt it's just more incentive to get intense & pay off the next one. We have three left & that includes Jason's car. It's on now baby. We can do this!
Nevertheless ~
Every time we pay off a debt it's just more incentive to get intense & pay off the next one. We have three left & that includes Jason's car. It's on now baby. We can do this!
Nevertheless ~
Wednesday, September 02, 2009
“Budget Roundup: End ‘O August”
Jase & I decided to have an end of the month chit chat last night so we could discuss where we are with our budget. It’s a time that I really look forward to because it keeps him involved, we’re able to make new goals, & talk about long term goals.
I’m excited to say that August turned out to be a pretty good month for us & we came out ahead in several areas. There were a couple of things that set us back but despite that we actually did pretty well. We’re both encouraged & talking things over last night really lit that fire again to keep pursuing Operation: SqueezeThe$.
High Points of August –
We lowered our utility bill by $81! W00t! In July our utility bill rolled in at a hefty $239. We don’t have any trees surrounding our place (yeah, yeah, I know we should plant some) so we have sunshine all day on our home. It hurts to pay a bill that high when no one is home all day. So we decided to unplug all unused electronics, crank our thermostat up as high as our pooch can stand it, & keep the lights turned off in rooms we’re not in. The results are in & the bill for August is $159. That’s August folks. When I told Jay how well that worked he was equally shocked. We expected it would go down about $20 or $30. We never expected an $81 drop. So, we have another $81 to pile on a debt.
We shaved our grocery budget even more. Although I tried to bring our grocery budget in at $250, it finally settled at $300. I’ve told a couple of people what our grocery budget is & they just kind of look at me like it’s no big deal. The thing is we’re not eating out. We have a TIGHT restaurant budget set at $30 a month. That means every other meal is eaten from home. Breakfast. Lunch. Dinner. That budget rounds out to aprox. $4.84 per person per day & lands at about $1.61 per meal. It just can’t get much cheaper than that. If someone is eating out a lot then a $300 food budget doesn’t seem that frugal. For instance, I viewed another person’s budget & they allow $200 for groceries & $200 for eating out per month.
Low Points of August –
My family was down from Michigan & we had our annual Christmas in August. This was not a happiness low point by any means because we were able to spend time with our family. Budget wise it’s a low point because the money spent on gifts was not previously budgeted in. August was our first real month on a strict budget & planning. The previous months we were trying our own way & working on creating a plan for our little family. Previous to August we were like my mom stepping into a swimming pool – One step & screech at a time. =)
Another unexpected expense was my allergy & bronchitis medication. OUCH. That squeezed us pretty hard. We could have taken the funds out of our emergency fund but we really try not to touch that money so we paid it from our monthly income. Because there were no generics for what I was prescribed, the outcome wasn’t fun at all.
All in all we’re very happy with our August budget. I’ve heard that it takes about 3 months of budgeting before you actually get it right & it’s doable. I’ve also heard it takes 30 days to make a habit. August was our budget habit forming month & I know September will be completed with a better mindset. Our goal for September is to pay the last $265 of a debt & kill it. It’s time to get intense so we can eliminate payments!
Nevertheless ~
I’m excited to say that August turned out to be a pretty good month for us & we came out ahead in several areas. There were a couple of things that set us back but despite that we actually did pretty well. We’re both encouraged & talking things over last night really lit that fire again to keep pursuing Operation: SqueezeThe$.
High Points of August –
We lowered our utility bill by $81! W00t! In July our utility bill rolled in at a hefty $239. We don’t have any trees surrounding our place (yeah, yeah, I know we should plant some) so we have sunshine all day on our home. It hurts to pay a bill that high when no one is home all day. So we decided to unplug all unused electronics, crank our thermostat up as high as our pooch can stand it, & keep the lights turned off in rooms we’re not in. The results are in & the bill for August is $159. That’s August folks. When I told Jay how well that worked he was equally shocked. We expected it would go down about $20 or $30. We never expected an $81 drop. So, we have another $81 to pile on a debt.
We shaved our grocery budget even more. Although I tried to bring our grocery budget in at $250, it finally settled at $300. I’ve told a couple of people what our grocery budget is & they just kind of look at me like it’s no big deal. The thing is we’re not eating out. We have a TIGHT restaurant budget set at $30 a month. That means every other meal is eaten from home. Breakfast. Lunch. Dinner. That budget rounds out to aprox. $4.84 per person per day & lands at about $1.61 per meal. It just can’t get much cheaper than that. If someone is eating out a lot then a $300 food budget doesn’t seem that frugal. For instance, I viewed another person’s budget & they allow $200 for groceries & $200 for eating out per month.
Low Points of August –
My family was down from Michigan & we had our annual Christmas in August. This was not a happiness low point by any means because we were able to spend time with our family. Budget wise it’s a low point because the money spent on gifts was not previously budgeted in. August was our first real month on a strict budget & planning. The previous months we were trying our own way & working on creating a plan for our little family. Previous to August we were like my mom stepping into a swimming pool – One step & screech at a time. =)
Another unexpected expense was my allergy & bronchitis medication. OUCH. That squeezed us pretty hard. We could have taken the funds out of our emergency fund but we really try not to touch that money so we paid it from our monthly income. Because there were no generics for what I was prescribed, the outcome wasn’t fun at all.
All in all we’re very happy with our August budget. I’ve heard that it takes about 3 months of budgeting before you actually get it right & it’s doable. I’ve also heard it takes 30 days to make a habit. August was our budget habit forming month & I know September will be completed with a better mindset. Our goal for September is to pay the last $265 of a debt & kill it. It’s time to get intense so we can eliminate payments!
Nevertheless ~
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