Progress and Updates

I had really hoped to get our first debt down to the $1k mark last Friday but I just wasn’t willing to take a thousand dollar hit to the checking account over and above my paycheck.  In just over a week though, it will happen.  I’ve decided to leave that $1k balance n the card for now.  Sometimes credit card companies have a nasty habit of closing accounts once you pay them off.  We had that happen with a Bank of America card.  They had been happy to collect our interest over the years but shortly after we paid it off, they closed it.  

As I’ve stated before, once that account is at the lower amount, I will move straight on to paying down our other credit card.it has a $5k balance and will likely only take one and a half to two months to pay down to less than $1k.  From there, we need to decide what path to take.  We may decide to pay towards both our car and motorcycle equally or alternate increased payments.  Both have low fixed interest rates but we’d just like to have lower balances.  Of course, with any debt repayment you always have unexpected expenses that throw you for a loop.  Last year it was a dud car and tree trimming expenses then a cruise we paid cash for.  Who knows what will happen this year.

I’m still working on my gree Triple Irish Chain quilt.  I finished a row and rolled the quilt forward another 8-10 inches.  Slow progress is better than no progress.  I’m currently also working on constructing a baby quilt and buying supplies for a traditional Double Wedding Ring quilt.  I think I’ve decided that I make more progress when I have several projects going.  I can bounce between as interest wanes.

It’s very cold here right now.  They had forecast snow for earlier this week but it didn’t happen.  Work is very busy.  By Tuesday afternoon, I already had nearly two hours of overtime for the week. I could work an extra hour every day and just barely keep up most days.  I have to mention that I find many of my coworkers to have bad attitudes or look and act weary at work.  They don’t seem to be cheerful. I know it’s tough to get up every morning and get to work.  Maybe you don’t like what you do or don’t want to be there but you are.  Make the best of it.  Stop complaining about everything.  Smile.  Find some joy.  I just wish I had more energy after work and maybe got to bed a little earlier at night.

February is a pantry/freezer challenge month.  Technically, I guess it started Monday.  I’m going to try to plan meals to use a lot of our pantry and freezer items and only supplement new groceries as needed.  I also need to use up what we have.  For example, I’m planning fried rice and egg rolls for Saturday.  I just need broccoli and maybe some sugar snap peas (unless I can find some in the freezer). I may buy an extra box of egg rolls if they are still BOGO.  If we’re home for Saturday lunch, it will be sub sandwiches.  Pizza on Friday is all set. I have a crust, sauce, cheese and meat already.  Sunday, I will cook fish and chicken - from the freezer.  I may need a few veggies and definitely milk, eggs and bread.  

Budgeting to Eliminate Debt

I did a little preliminary work today on a net worth calculation and also a monthly budget.  The net worth calculation will be helpful to see what assets we have that we may not have remembered or considered such as stock ownership, retirement accounts and asset value versus debt.  As we begin to make plans and ramp towards retirement, these will be important to track and consider as we make decisions.  I also quickly looked at a loan amortization schedule but couldn’t get the figures to match up with our loan.  I’ll take another look at that at a later date.  All of our February bills are paid except for the water bill.  It is usually the last one because they don’t store bank numbers so you have to have your card available when you pay.  That means two trips up and down the steps!

Changes to my prescription drug coverage for 2019 mean that I need to change pharmacies for my prescriptions and revisit where I fill DH’s prescriptions.  Looks like I will be required to fill mine at CVS or mail order.  I know I can get one of DH’s prescriptions for free at Publix and one may be significantly cheaper at Kroger with the membership.  I’ll have to analyze if it make sense to move them all or just the one.  Some may actually be cheaper by paying cash and using GoodRx.

I tried two new recipes today:  flat bread from Bigger Bolder Baking and Banana Cake from Spend with Pennies.  The flat bread was good but needs a little salt to negate the bland nature of this bread.  It was quick and easy but next time, I will use a little less yogurt, a little more baking powder and mix it up closer to baking time.  I will also leave it a little thicker so it’s less like a tortilla.  The jury is still out on the cake.  We’ll eat that a little later this evening.

Most of the Christmas stuff has been put away neatly.  I have some gift wrap bags, a rug, wreath an nativity still to put away but it was a big accomplishment to get that done today.  I will attempt to finish this task tomorrow and also get boxes out to the garbage for pick up Thursday morning.

I start my new schedule at work tomorrow.  I start work a half an hour earlier and also leave earlier.  My start time will be 7:30 now instead of 8 but I expect that I will start work around 7 every day to get a little OT in.  Getting out of work 30 minutes earlier will mean it will be easier to stop at the store on the way home or make a dinner that requires a little more time.  I can also get a load of clothes runnng or the garbage to the curb before it gets dark.  I’m hoping that it’s an improvement.  

Today has generally been very constructive.  I was able to go to Joann’s today and although I wasn’t able to get any fat quarters (they weren’t on sale like I thought), I did buy fabric for a baby quilt I need to work on.  It was on sale for 40% off so I spent about $15 for the top fabric.  I will either use something I already have for the back and batting or pick up something on sale in the next few weeks.  It’s medium gray, light gray and mint to match/coordinate with the nursery.  I need to decide on a pattern and get started.

Back to work tomorrow but it is just a four day week!

Halfway into January

Initially, I had wanted to do a pantry challenge for January but since we were keeping three of our grandsons for five days, this wasn’t going to work.  Instead, February will be a pantry challenge but I will start focusing on using pantry items and freezer items now.

My plan is to restock some staples in the pantry while eating down the more perishable or specialty items.  Some of the items I plan to purchase are canned tomatoes, beans, broths and boullions, pastas and rice, spaghetti sauce, etc.  The goal is to stock up a three month supply of items we routinely use with a one month supply - or an extra “one” - of condiments and specialty items.

Frugal accomplishments so far this month include closing the post office box we opened last January.  We planned to open a business but that didn’t happen.  We closed the box before we owed more money.  Saving about $60-80 for the year.  I also plan to cancel and turn off a landline we currently have in the home.  Again, this was done in anticipation of the business that never opened.  This savings will be about $30-35 per month or $360-400 for the year.

We plan to switch our cellular service onto a senior plan which should save us $75 per month.  We will also need to purchase a new cell phone as we’ve had some issues with one of our phones.  While that will be expensive, DH uses his phone for his work and is reimbursed $40 each month.  I’ve been putting that money into either our checking or savings for over a year or more.  This means that probably half of the phone cost will be covered by these reimbursements.

Tax DH will be here soon.  I plan to order my software and start collecting paperwork before the end of January.

Non-Frugal/financial changes:  I’ve been working about 3-4 hours of overtime each week.  Unfortunately, we’ve been asked to cut this back to 2 hours each week.  I’m disappointed about this not only from a financial standpoint but also because I cannot get my job done in 40 hours each week.  There will need to be some adjustments to expectations.  I am also planning on implementing a savings plan to start systematically saving a percentage of our income to see how little we really need to live “comfortably.”  (I’ve started a weekly transfer to savings of $100/week.  I will up this to $125 after two weeks.)

We really limited our Christmas spending putting very little on credit cards.  I think we placed one Amazon order ($100) for items we couldn’t get locally and one gift DH ordered for me.  Both were paid last week.  No lingering credit card debt for Christmas. Another large payment to our main credit card was made this week.  Another payment was made to cover a recent purchase on the other credit card. WooHoo!

Paycheck to Paycheck

I read an article today that said 78% of us live paycheck to paycheck.  The article was focusing on the financial hardships the current government shutdown was having on people but I was flabbergasted at the statistic.  What that really means is that 78% of people live with no margin in the financial lives.  No extra money, they spend every penny they have and when something, anything, disrupts the cash flow, there will be problems.  

I realize that there are some people who simply don’t make enough money to survive and their financial decisions are made dollar by dollar but most people with relatively steady jobs and no extenuating circumstances shouldn’t be in this situation.  They should have some kind of cushion or margin to tide over the valleys in our financial lives.  I know.  In a three year period, we experienced two layoffs and a period of unemployment.  It taught us a lot about how to thrive even under difficult situations.  Here’s my advice, if you want to consider it.

1.  Always anticipate the unexpected.  You will have an auto accident, the water heater will quit working or you’ll simply get the flu.  What will you need in any of these cases?  Money.  Find a way to put some money aside every time you get paid until you have enough to cover the smallest things.  Then, keep going.  Dave Ramsey suggest that your beginning emergency fund should be $1,000.  That’s a great place to start but it won’t cover your deductible or a new water heater.  Brainstorm things that could happen then put that much aside.  You want to have enough to cover your auto or medical deductible, a months rent, or maybe it’s your medication expenses.  You decide.

2.  Pay off your debt.  If you don’t have any consumer debt, any financial crisis will be easier to deal with.  That means you may not have a new car every 2-3 years or your phone may be an older model.  We are currently planning to get rid of most of our consumer debt this year.  We have already reduced the amount we carry over the past few years.

3. Live frugally.  Limit restaurants to those with cheap, filling meals and go rarely.  If you’re in the middle of a financial crisis, stop eating out all together.  Canned soup and grilled cheese sandwiches cost little to nothing.  A baked potato with broccoli will fill you up.  A big pot of vegetable soup will serve the whole family.  Stop spending money except for absolute necessities.  We always keep a well stocked pantry.  It protects us from weather issues, financial issues and ensures that we don’t go hungry.

4. Find stuff to sell.  Everyone had old electronics, unused clothing, older toys, etc. that can be turned into cash with a garage sale.  Marketplace is also a good place to offer items for sale.  

5.  If you’re not working, find a project around the house.  Declutter and plan that garage sale.  Plant some herbs.  Repair a long broken item.  Reorganize a closet.  Babysit the neighbor’s kid or mow their lawn.  Shovel sidewalks.  Turn your time into cash.  Drive for Uber.

Finally, learn the real difference between a need and a want.  You may think you need a manicure but really what you need is a nail file, you want a manicure.  You may think you need 138 channels of cable tv, you want the cable tv.  What you need may be just to stay busy or entertain yourself.

Back to the article I read.  I was very concerned to read that some folks were saying that they may lose their house because of the shutdown.  Really? I think we’re on day 20- one potential missed paycheck and you’re facing foreclosure or eviction?  This tells me that they were in trouble long before the shutdown happened.  Occasionally, people find themselves in these situations through no fault of their own but frequently, it is the individual’s decisions that lead them to where they are now.  Buying a home way out of their budget, spending too much on cars, lavish vacations, daily coffee stops or just bad choices.  Be responsible and plan for the unexpected.  Be part of the 22% that don’t stress about money every day, build some margin in their budgets and are more prepared for those financial storms.

Day 4 and 5

It’s only been four days but I wanted to quickly pop in with an update. 

Saving the lunch money!  

Usually, I buy at least one lunch a week from the vendors - approximately $8.   I was able to spend $0 for unch this week by eating canned soup twice and eating leftovers twice.  I will be eating more soup during the winter months to cut back on calories.  The Progresso tomato soups are very low in calories.  I wish I knew a way to take small amounts 1/2 cup per day of cooked pasta to add to the soup.  I’m thinking about pre-packing some fresh veggies to eat along with it to satisfy that crunch factor.   Some days it might be a few crackers with cheese and pepperoni.  I also bought a box of snack sized popcorn to work - I believe this is a better alternative to chips.  I may even pre-pack a salad or two (for me nd hubby) for Tuesday.  It would be great to save money, cut calories and probably enjoy the lunches I do buy more.  I’m also trying to limit soda entirely but that was tough the last few days with a scratchy, sore throat.

Sewing!  

I’m struggling to get my quilt straightened on the quilt frame.  I unwound it once and thought I had it fixed only to discover that the backing is not rolling properly.  I’ll try fixing it once again because it is really too large to hoop quilt.  Tomorrow, I need to start work on cleaning and organizing my sewing room.  I will not make another one this big - not on this frame for sure.

Organization!

Also tomorrow, the Christmas stuff goes back into the attic and storage.  It won’t take long and it will make a great deal of difference in the “feel” around here without boxes and bags hanging out everywhere.

Stocking Up!

We stopped by Walmart today because they seem t be the only store selling the Camellia brand Dried Red Beans.  I bought six bags to restock our shelves now that I’ve found a yummy recipe.  While we were there, I picked up a large bag of bacon bits.  We don’t need them quite yet but, again, Walmart is the only store selling them now.  Finally, sugar was .37 a pound in the four pound packages so I got four.  That’s the cheapest price I’ve seen in a while.  I’m working on stocking my pantry back up to the six month level but really focusing on the things we eat regularly - not everything.  For instance, flour.  We really don’t use that much flour unless there’s baking going on.  One bag in the kitchen and one in the pantry will likely last six months or longer.  Canned tomatoes on the other hand are very frequently used here.

2019 Plans and Goals

Finances

Our first and most important priority for 2019 is paying debt down.  Our plan is to aggressively pay down/pay off our credit card debt first.  These debts are always subject to increases in interest rates and can quickly become a problem if routine payments are not met.  With the fed recently making a move, I think this could be a continuing trend for 2019 and rising interest rates mean higher costs for credit cards.  We have made significant progress on this card’s balance this year along with paying for an expensive (well deserved) vacation.  Once we bring it down to $1k, we will move to the second card. If all goes as planned, we should be able to have both card accounts into small balances by the end of March.  Further into the year,we will be paying down on one or both of our loans (auto or motorcycle).

Along with our payoff strategy, I will also be moving 20% of DH’s take home pay into savings (beginning with 10% in January and increasing from there). This serves two purposes - it builds our savings quickly and allows us to see what our budget will be like if he takes a pay cut in 2019.  Due to some changes and events in his job in late 2018, this could be very useful information.  100% (or close to it) of my salary goes to debt reduction.

We will also be looking at some other things to reduce our spending and/or position ourselves for future events.  Some of the things that come to mind are eliminating our home phone and perhaps putting those dollars towards a faster internet.  Also, we may reduce our cable expenses. We will be utilizing Netflix and other streaming services more.  We will be decluttering and organizing and a garage sale may be necessary I the spring and fall.

Home Improvement

We have some things that need to get done in 2019.  Rebuilding or outside fence is a high priority along with replacing the exterior door on our garage.  Neither should be very expensive except for our labor.  I’d also like to finish painting the inside of the garage and generally clean it out.  The front porch needs a little repair and paint touch up.

Personal (for me)

I want to try 26 new recipes this year and read 24 books.  (I got a kindle for Christmas so this is on!)

I will finish my green quilt this year and finish a quilt for the youngest grandson and a baby quilt for a new baby in the family.  (I need to get on this one.)

I plan to post once a week to update on our progress, share a recipe or share a project.  It may be brief depending on what’s going on.