or Connect
Mothering › Mothering Forums › Natural Living › The Mindful Home › Frugality & Finances › Gazelle Intensity in the New Year
New Posts  All Forums:Forum Nav:

Gazelle Intensity in the New Year - Page 3

post #41 of 45
Quote:
Originally Posted by Smithie View Post
"zero-based budgeting"

Can you tell me a little bit about this? I'd love to have a name for my philosophy other than "Oh, Mommy/Wifey/Aunt Smithie is being neurotic about not spending more than she makes (or has earmarked in savings for a vacation, etc.) in any given month, so we can't get Chinese food tonight!"
Certainly

It's a system of paying your bills by pre-spending every dollar of it. Basically, your income and outgo are identical. This week, we sat down with our paychecks and divided the money up by starting with the things that NEED paid (based on due date), then looking at the expected expenses (gas, food, daycare, church, etc) and setting aside money for those, then looking at the remainder and figuring out where to put it.

For example, one week we had $218 left after we did all of our pre-spending so we started on our list and applied the money to them. We set aside $200 for our line of credit and put $18 in the vacation fund on the counter. Then, DH went to the bank and took out $420 for the kidsitter and $18 for vacation and then put childcare money in an envelope and the vacation in the jar. I took out $100 for groceries, spent $32 and put the other $68 in an envelope. Every pay we do the same thing but the envelopes and amounts vary. For instance, we fund a medical envelope and put $140 a month into it - we'll use it for copays and then deposit the right amounts in the bank to cover ordered prescriptions. Some months will be lower so the extra will sit in there to cover the higher months.

What we do, though, was SPENT EVERYTHING. We have a zero balance, in essence. By doing this, we are telling our money where to go and how to be used and (more importantly) don't have the option of wasting it. By stopping ourselves from wasting this money, we are able to use it.

I fell in love with the idea in TMMO. If I hadn't already returned it to the library I would be happy to give you a page or chapter to look at!
post #42 of 45
I want to be more like a gazelle! You guys are so inspiring. I have definitely been doing a bit better with money since I started meal planning (it used to be common for us to eat out 2-3 times a week!!!), but I have a loooong way to go. This past weekend, for example, I dropped $35 on wine and beer that we (obviously) did not need, AND we bought a computer. We had been planning on that purchase and had been saving up, but still had to put almost half of it on a credit card. We could have waited until we could pay cash, but DP said he just couldn't take our old (admitedly, extremely frustrating) computer anymore. So off we went to Best Buy.

It doesn't help that my DP is completely averse to talking about money, or having any type of budget or savings plan. I am going this alone, folks! It's very frustrating. But actually, he is trying. When we met 5 years ago he had 3 or 4 years worth of income tax debt. He is self-employed and would file his taxes each year, just not pay them. Amazing! But I convinced him to call the IRS and set up a payment plan, and we were able to pay them off in about 2 years. Now we are down to both of our student loans and the mortgage...

But I am feeling more and more comitted to paying things off, especially since we are wanting to make some major purchases in the next year (mattress, vacation, wood stove). I am planning to try to sell some vintage stuff I have been holding on to (because I love it! but not as much as i will love a new mattress....) and use that money towards paying off our student loans. I have been paying an extra $50 on the mortgage each month, but now that I'm learning about this "snowball" method, I may stop that and put that extra $50 on the student loans.

Thanks, everybody, for keeping me inspired!
post #43 of 45
I am SOOOOO inspired! So many of you are really doing great. We have hit rock bottom. No money in checking (until I get paid a week from Friday), no money in savings, overdraft maxed out, credit cards maxed out, and we are drowning in debt. I have a very good job as a university prof, but we live in a high COL area and my husband's job is seasonal and sporadic. We've also made a lot of mistakes, which plan to change.

In the past I never paid attention to how much I was spending on food. We don't eat out and live frugally, so I always thought we were doing pretty good. Then the economy went to pot and my credit all dried up, payments and interest rates skyrocketed, etc.. It was a real rude awakening.

However, I do see light at the end of the tunnel. Consolidate the CC debt with MMI and have one big payment a month. Will be debt free in 5 years! Car will be paid off next year (can't sell, I have to drive to my job on an interstate), and we should get a nice tax return this year. I also will be teaching summer school.

I am excited about gazelle intensity! Have already started making a price book for grocery shopping, and have cooked from scratch every day this week. Plan to give up ALL extras, like soda and convenience foods.
post #44 of 45
I was all set to pay off everything on the credit cards in a few months here and start saving for our next car we'll need, gazelle intense and all that. Then DH decided he wants to take several trips, wants to buy some stuff, wants to fix the siding on the house, and wants a dog. And he and DS1 won't stop complaining about what I fix them to eat at home, they'd rather go out. Ugh! Plus a friend is staying with us for 2 months now and we have to feed him half the time and drive him around, he gives DH some cash in return and DH spends it.
post #45 of 45
Quote:
Originally Posted by JamieCatheryn View Post
I was all set to pay off everything on the credit cards in a few months here and start saving for our next car we'll need, gazelle intense and all that. Then DH decided he wants to take several trips, wants to buy some stuff, wants to fix the siding on the house, and wants a dog. And he and DS1 won't stop complaining about what I fix them to eat at home, they'd rather go out. Ugh! Plus a friend is staying with us for 2 months now and we have to feed him half the time and drive him around, he gives DH some cash in return and DH spends it.
Oh-- that sounds rough! Don't give up hope, though! Maybe you could try talking to your DH (and DS1) about what foods they prefer to eat, and cook more in line with their tastes? Hopefully you can reach some sort of compromise about spending-- maybe only take one trip? maybe fix the sidding after you pay off 1 credit card? Good luck!
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: Frugality & Finances
Mothering › Mothering Forums › Natural Living › The Mindful Home › Frugality & Finances › Gazelle Intensity in the New Year