VROOM: Holiday Spending

Love it or hate it November – January is what we call “Holiday Season”.  From Thanksgiving to New Years and everything in between it is two months of eating, gifting and spending.

Did you read that…SPENDING!  It doesn’t matter how you twist it unless you are doing a white elephant of gifts from your house for everyone you will end up spending some money some where, it’s inevitable.

Since holidays are nothing new our  house has been planning for them all year.  Yes, all year!  After Christmas last year my husband and I sat down and reviewed.

-We both enjoy gift giving and are huge fans of giving thoughtful, meaningful gifts.

-We also don’t have a lot of time to go shopping together so we know that online shopping is something that we can do together and can be cost efficient.

-We don’t have a huge budget.

-We aren’t very good at DIY projects or homemade gifts.

With all those things in mind we came up with a plan of attack.  Buying gifts for free!

There are a lot of ways to earn points, earn rewards, earn discounts and earn gifts/gift cards.  If you look at your spending habits (those within your budget) and your online usage (search engines, blogs, etc.) you should be able to locate several of these opportunities for yourself.

For us it has panned out this way:

Chase Rewards: We have a debit card that allows us to earn rewards every time we use it.  This is great because we have set up bill pay using this debit card and points have acquired pretty quickly just because we pay our utilities and student loans via that card.  We have earned over 10,000 reward points.  What does that many points get us?   A lot of things but one of them is $100 gift card to Target.  We can get the gift card and either give it to someone or use it to purchase smaller gifts for people. (In full disclosure we did have to pay $25 to sign up for the program so our net is only $75.  The sign up was a one time thing and I still think that $75 is a good return for no extra time or effort on my part.)

SwagBucks: SwagBucks is a search engine that awards you points for searching.  You can then spend those points in the SwagStore to purchase various items and again, giftcards.  I have not been as diligent as using this as I could have been but between my husband and I we have acquired almost 4,000 points.  We plan to turn those into Amazon gift cards that we then use for buying gifts.

Change Jar: Everyone has a change jar right?  We have a blue piggy.  It was actually given as a flower arrangement when our son was born but it is glass and he is 3 so we have it in our room.  Every time we have change we put in in there (except for quarters:  those are used for laundry!).  So far this year I have turned in almost $150 worth of change which I then set aside for gift buying at this time of year.

Between our rewards and change we have over $350 that we can use to purchase gifts.  It has taken time and a small amount of effort but overall it has been worth it!

Take a look at your spending habits, debit cards, credit cards and web use.  Where can you acquire a few extra bucks for the 2011 holiday season?

GLUG: Retreat!

I mentioned a couple days ago that I had a chance to take a little personal retreat.  The first reaction of most people is WHY?  And HOW did you afford that?

Why: Because I needed it.  I am a full time mom to 2 kids, freelance writer, am employed part time and have a husband who travels 6 days a week.  Even when I am not “working” I am working.  There is a lot on my plate.

Even our quest to be frugal and pay down debt takes time and forethought.  Since that is a goal for our family we have sacrificed the luxury of vacations. My husband and I have not be away together without children since October 2008. We did go away last October but had a 10 week old baby that was along for the ride.  This means that in 2 years I have gone home for holidays with family and that is all.  (Note:  My husband travels for work and although that is not a vacation he does have some time to himself to recharge.)

Lesson:  In order to achieve our goals we have to have the ability to think through them. Sometimes to keep going on a project, in a job or just in life you need a time out.  Take a break to think through your current plan of action.  Make sure you aren’t just going through the motions but that your heart is really in it.

How:  FOR FREE!  (Of course!).  After my husband agreed to help me work out the details with our kids I put the word out.  I asked around.  I let people in my immediate circle know that I was looking for an inexpensive or FREE place to take some time away.  Within one day a friend from church emailed me with 3 trips she was taking before January and she offered her place as a retreat full with comfy bed, cable and quiet.

LESSON: ASK! We all have different things we are willing to share, lend or give.  Maybe it isn’t your home but your power tools, free babysitting or just your time.  Don’t be afraid to ask.  It really is one way that you can stay connected to your community.  It is also inspiring.  When someone gives to you – you will feel that much more inspired to give back.

All I can say is RETREAT! Both you and your goals will thank you!

November 1: It’s almost New Years

40 to 45% of American adult make one or more resolutions each year.

The following shows how many of these resolutions are maintained as time goes on:

- past the first week: 75%
- past 2 weeks: 71%
- after one month: 64%
- after 6 months: 46%

Via ProActive Change.com

I know it isn’t January 1st but November 1st will do just fine right?  All those stats just to say “sorry I haven’t been around for awhile”.  I am obviously in the 54% of people that have a hard time resolving to something, in my case, this blog.

No, I have not stopped trying to reduce our debt.

No, I have not done a good job of reducing our debt recently.

Yes, We did hit a rough patch – our car died.

Yes, I have been busy being a wife, mom, freelancer, volunteer and employee.

Nope – I’m not giving up!  I can not be taken down that easily!

One of the hardest things about reducing debt is staying on track.  Like many other things it SOUNDS like a good idea (and let me assure you it IS a good idea) but the follow through is always a little harder than you anticipated.

One of my son’s favorite books for months was Sputter, Sputter, Sput.  It’s about a car that runs out of gas, gets gas and keeps going.  ”I put more gas into my car. Glug, Gurgle, Glug.  It makes my car go very far. Zoom, Vroom, Zoom”.

Sputter: August 19th – I began to lose my focus.  I made a mistake, it was costing me dearly and I lost my focus.

Sputter: September.  I had not yet fixed my problem from August.  I was still giving away much more time than I actually had.

Sput: Our car died.  Money coming out of the emergency fund, husband’s overtime slowing down, just general surrender.

*****

Glug: Getting a car.  This is happening this week.  With all the money accounted for and details taken care of.

Gurgle: Time.  I have backed out of several volunteer commitments and have my work time under control.  Not having a car helped me put a few things in perspective.

Glug: Retreat.  My husband took my kids for 2 days and I went away.  I had time to rest, collect my thoughts, and start new.

*****

Zoom: Today.  I’m not starting over I’m just moving ahead.

Vroom: The Plan:  Right now I am focused on rebuilding our savings from buying a car and making sure all our holiday purchases are made.

Zoom: January 2011.  Getting this show back on the road.  I’m still working on it but think maybe, just maybe 2011 will be the year where we do some big time conquering!

Come back soon as I outline GLUG and VROOM for you!

Some things in life ARE free!

Some things in life really are free.  As we have made the commitment to scale down our lives and live frugally so we can be debt free some good things have come our way.

I want to encourage you by sharing some of the free things that have happened upon our family in the last month and how they happened.

Maybe you will be inspired and encouraged to either give something away OR be creative about receiving something for free!

Item:  Train Table
Received From:  Church Message Board

We have a 3 yr old that is into trains.  That added to the fact that my husband works with trains we pretty much live, breath and sleep trains in this house.  A train table is not a “must have” in our book and although we had talked about purchasing one we decided it was not a good use of our money.  We have even often visited our local gelato store just to play with the train table for a precious 20 minutes.  This past month one of the moms on our church message board decided it was time to pass on their table and offered it for free.  We were blessed and able to pick it up and it arrived at our house yesterday.

In the midst of the pick up this very generous mom mentioned that they were gifted the table from another family and it was their joy to pay it forward.  If you are in a situation that something has been gifted to you that you no longer need or use consider paying it forward and gifting it to someone else.

*****

Item:  External Hard Drive
Received From: Facebook

I “like” a photography business on Facebook.  This past week the business started going through their items and downsizing.   Some of the items are outdated but still usable.  The business posted on Facebook that they had these items both for free and for sale and listed a way to contact them.  I did so and within a few hours they called me, offered me up a 150gb external hard-drive and will deliver it within the next week when they are in my area for business.

If you have outdated items of any kind that someone could still use consider posting them on freecycle, facebook or the free section of your local Craigslist.

*****

Item:  Fresh Vegetables
Received from: Next Door Neighbor

Our neighbors next door are in the process of decluttering and making space for a new dog.  Since we live in the city they also choose not to have a car. In the past week they have needed to make some trips to both drop off items for donation and pick up items for their new dog.  We mentioned that instead of trying to walk the items somewhere or use their bikes they were welcome to use our car.  Today when they came to get the keys they dropped off fresh cucumber and tomato from their garden!

If you have an item that someone could borrow consider lending it out for free.  You never know what you may receive in return!

So there are things in life that are free.  By being unselfish with the time and things that you already possess you are able to help others and in return may just gain a few new things of your own!

What is your favorite “free” item that you have given or received?  Tell us about it in the comments below!

Turning Down Money!

Turning down money? Maybe!

*gasp* I know – why would I turn down money.  We all know I could use every extra cent I can get my hands on.

I have been presented with a job/side job opportunity and here are the details:

Pros:
$75/week 
(or $300/month or $3600/year)

My kids can come with me

My “boss” is someone I know

Cons:
11 hour day (so essentially $6.82/hr)

Start time (with kids on tow) is 6:30am 

My “boss” is someone I know

I am very pro about extra income and I am very willing to work for it.  However, as you may have noticed I put a high value on my family and on my friendships.

By dragging my kids out of bed extra early I am sacrificing their rest.  There are few things kids, especially kids as small as mine, need more than rest.

By working for someone I know that is both a friend and a peer I am putting our relationship on the line.  Although I am a hard worker, honest and have no doubt we would have a good employee/employer relationship, I also value the friendship and don’t want to put it at risk.

Lastly, the return for the effort is rather small.  My hourly rate for freelance work is more than the hourly return on this “gig”.  I would rather spend less hours working for equal or greater return.  The upside of this potential job vs. freelance work is stability.  Same day every week, same hours.

So what would you do.  In your journey to financial freedom what are you willing to give/do to be free?

August: Mid-Month Report & How NOT to make money…(Money Misstep #3)

I know, you come back here to peak and see if I’ve made $100,000 yet.  Just so you know, I haven’t!

For a quick mid-month report:

August Income
$250   Part Time Job
$ 20     Husband’s Overtime

Total income for August: $270.  I know, you are overly impressed.  I’m not either.  Keep reading…

So this month I have made another Money Misstep.  So sit down for Money Misstep #3: Volunteering vs. Income

I am very passionate about volunteering.  (Just ask my husband…it does get out of control some times!) I would encourage anyone and everyone, regardless of your financial situation to give of some of your time to volunteer.

Putting other peoples needs before your own helps with many things:

Perspective: You see other people’s situations and realize all that you have.

Insight: By giving you will gain insight into what it really means to live.  In all situations in all times.

Humility: It takes energy to give freely of your time and it keeps you humble.

I could expound on these (trust me, I could go on for days) but these are just a few of the many things that happen when you give of your time and energy to others.

The misstep I made was not making a correct calculation of the time a volunteer opportunity would take.

In order to meet our financial goals some of my time has to be spent working, trimming our budget and seeking income opportunities for our family.  However, since I see volunteering as such a high priority I am willing to give 10-15 hours every week toward it.  Sometimes for my church and sometimes for my community.  If I can use my skills to help someone I will try and make time to do so.

In the month of August I have given over 50 hours to volunteer work.  I do not regret the time I spent serving others but it has had some negative impact on my every day.

If my first commitment is to my faith and my second to my family those things must have equal or greater time and energy put into them as my volunteering.  Both my commitment to my faith/faith community and my family have suffered.

I have not been able to engage in my faith community as much as I normally do.  And my family has suffered because I have not been able to spend quality time with them and I have not been able to spend time managing our family life in order to positively impact our financial goals.

All this got put to the side so I could volunteer on 2 projects.  One for my church and one for my community.  Both good opportunities where I could use my skills but both opportunities that I had forewarning on and could have planned for and thought through a little better in terms of time commitment.

Also, in the midst of volunteering I got sick (am sick).  I had committed so deeply to 2 projects that I had no time in my day to day to rest and heal (which is probably why I am still sick).

How to avoid this misstep: Set boundaries and stick to them!
I am not in a physical, personal or financial place to spend all my hours volunteering.  I would LOVE to, don’t get me wrong! (I remember talking to my mom when I was trying to figure out my college path and through tears saying that I didn’t want a career, I just wanted to spend my whole life volunteering.  She kindly reminded me that although that is a great heart felt thing, it doesn’t put food on the table!)

Since I absolutely have to take my life situation into consideration I need to stick to 10-15 hours of volunteer work.  Even that stretches me and my family but it is important to me that serving others is a priority.

Next time I think about volunteering I will ask more questions about the opportunity and really weigh the time commitment within the boundary I have already set for myself.

Where should you set a boundary today?  What area of your life are you spending too much time/money/effort in that you can not really afford?

July: Month End Report

I know this is what you all really come back for!  I’m glad.

One of the goals of this blog is to be an ongoing inspiration for those people that have a large amount of debt.  Hopefully this report that I post bi-monthly is encouraging and a testimony to the fact that debt repayment, with some work, can happen.

July Income:
$250    Part Time Job
$180     Freelance
-$102    Car Repair
$250     Part Time Job
$280     Husband’s Overtime

Total Income: $858.00

This is income over and above our normal living expenses in the month of July.  So what is this going to.  $450 paid of an existing loan.  The remaining $408 went into our savings to help round out our emergency fund of $1000.

Some notes:

A paid off loan feels good.  We now have more money per month to put towards the next piece of debt.  This loan would have been paid off by the end of the year but by paying it off in advance we save money in interest and are able to use that toward something else immediately.

A small emergency fund is a must.  We used to have a much larger emergency fund.  Over the course of Winter 2009-2010 we used that emergency fund to live.  My husband’s hours decreased dramatically and we had to use almost all the money we had saved to live off of over a 5 month period.

We will continue to put our budgeted $50 a month into this savings account so it will exceed $1000 but our first goal was $1000.

For those that like numbers: $858.00 in savings for a month is not $1000 a week.  However, it is a good chunk.  We are currently averaging $214.50 a week which is 21% of the way toward our weekly goal.

I have 2 other possible freelance sources of income.  I am considering them based on time input and financial income.  They are both currently below my hourly rate for freelance work.

My current dilemma is to figure out if I just want the income and will take well below market rate or if my time is better spent securing freelance jobs paying the market rate.

What would you do?