Spending Fast

No, I'm not spending money quickly; instead, I am not spending money. Like one of these fasts. It wasn't until today that I had a sort of epiphany. (Warning: it's not as major as it seems.) I haven't spent money for the past two days [GASP!]. Three days ago, I paid my phone bill and applied a few bucks towards my credit card balance (that hardly counts as "spending" as it's more of an obligation, rather than something that's discretionary. "Spending" sounds much more fun to me and, although it's the same thing, I set aside "bill paying" in my head. But I digress...)

My mini-revelation surprised me in two ways. First, I realized - aside from looking at my expense tracker- that I spend quite a bit of money on food. I still long for Panera (it hasn't been a week yet and I'm already dreaming about the next time I'll treat myself to their goodies), I haven't eaten any cheesy goodness from a fast food restaurant (ex. Subway's meatball sub, an organic cheeseburger from Elevation Burger), and no random snacks from my local CVS (I've been thinking a lot about sour gummy worms). I tried the meal planning thing; actually, it wasn't much of a plan. I made a crock-pot meal on Saturday and have been eating it for lunch and dinner all week long. I'm so sick of chicken stew! Chicken stew and rice. Chicken stew on a flour tortilla. Chicken stew and toast. Plain ol' chicken stew. I finished what was left of it tonight for dinner. Luckily, I changed things up a bit with a bowl of imitation Fruit Loops and pizza (that was on sale this past weekend) for dinner last night and lunch today.

My second surprise was that I didn't feel bad for not spending money. There was a bit of awkwardness because I haven't been too many places outside of home and work. As weird as it may seem, spending money has almost become an automatic thing (yikes!). I've always been aware of my spending (as evidenced by my near obsession with expense tracking), but I haven't been so conscious about my non-spending. We'll see if it matters.

Update: I tried bottled water for my coffee and it tasted better! Then again, it was a different type of coffee (Caribou's K-cup vs. the Gloria's Hazelnut that I tried at first). Frankly, the brand of hazelnut is unimpressive (which sucks, because it's my favorite flavor of coffee!). Nevertheless, I will continue to experiment in order to find the perfect cup o' joe. And if things don't work out, I'll sell my new toy for half of what I paid for it on Craigslist and head straight to Panera. Okay, okay, I'm joking....but only a little ;)

I Got A Rewards Card!

I finally got around to getting a rewards card. Yesterday, on a whim, I called my credit card company and told them I'd like to upgrade my card to a rewards card. I had a sense that the time was right, because they recently upped my credit limit. I'm also pretty sure it had something to do with my paying my balance in full every month for the past six months (and keeping the balance relatively low, prior to that).

Nevertheless, I made the call, was advised that an "upgrade" would not suffice and that I'd have to open a new account, so I did. I answered questions about my income, bank account balances, and rent payments. All in all, it took about 12 minutes.

In the coming weeks, I should receive a shiny new credit card with a $15,000 limit. I don't care what the APR is because, like I've done for the past several months, I'll be paying the balance in full. Additionally, there is no annual fee. I will earn 1.25 miles for every dollar spent, miles do not expire and there's no limit on the miles I can earn. Additionally, I can redeem my miles for airfare, hotel, and more (I'm most interested in airfare purchases). If I spend $1400 a month on my new card, I can rack up 1,750 points a month (21,000 a year). I'm already thinking about what expenses to charge (phone bill, groceries, gas, miscellaneous expenses). Sadly, this will impact my "Keep the Change" savings; however, I'm hopeful that the purchases I'll be able to make with my miles will offset the change. I'll keep you posted!

Do you have a rewards card? 

What's your favorite feature of the card?

What do you use your points/miles for?

Summer Spending

Tis' the season for barbeques, festivals, fun in the sun and friends! Undoubtedly, all of these things mean mo' money, mo' money, mo' money....that you'll be spending "mo' money" of course =)

As I have done in the past, I've failed to plan for my upcoming summer expenses. Namely, expenses for and round-trip travel for two family reunions. Both will take place states away and fortunately, my sister and I will drive. It's fortunate that we're driving because 1) it's much cheaper than flying and 2) since two of us are driving, the travel expense will be split in half.

At any rate, I'll be looking at a couple hundred dollars of "unusual" expenses. I better start figuring out how to make the most of what I'm working with. So far, all I've come up with is to be diligent about preparing breakfast, lunch and dinner at home (something I should have been doing over the last 8 weeks, instead of being Carefree Carrie!).

What summer-specific expenses do you have this year? If you have a regular income (and regular expenses to go along with them), how are you preparing for your seasonal transactions? Did you save for these upcoming expenses?

A Wonderful Vacation!

Somebody (i.e. me) didn't post for three days. If the picture to the left doesn't make it clear, then hopefully, these words do....I was gearing up for, and later enjoying, a vacation!!!

My dear friend married his college sweetheart on Thursday, April 28th and many guests enjoyed a cruise afterward. The days prior to his wedding were fraught with shopping (What to wear to the wedding!? What to wear on the cruise and for the excursions!?), planning (They want me to pay WHAT for an excursion!? Let me deal directly with the vendor!), and packing (What can I pack in my carry-on (clothes, shoes, toiletries)... What do I have to purchase once I get to Florida (liquor, large sunscreen, liquor)...)

The wedding was beautiful and the ensuing cruise was a blast! I got to spend time with friends, a little more time with my boyfriend, toured Ernest Hemingway's Key West home, parasailed, ate, snorkeled, danced, laughed, ate some more, played cards, snapped a ton of pictures, learned a "fancy" way to play Black Jack, ate again, and napped. My boyfriend ran into an old friend (and his girlfriend) and we shared a few experiences (we're looking forward to hanging out with them).

I hadn't cruised in several years and was anxious to find ways to spend less money where possible. This is how I did it:

• I read the FAQs like my life depended on it an learned that each person could bring 750mL of wine for embarkation day. Considering that cocktails on board started at $7 (plus 15% tip),  I made sure to take advantage of this opportunity: 1 bottle of pinot grigio and 1 bottle of Arbor Mist (my boyfriend likes fruity drinks) cost less than ten bucks at CVS.
• Long before the cruise set sail, my boyfriend and I explored the shore excursions we wanted to participate in. We settled on the Ernest Hemingway museum and parasailing in Key West and snorkeling in Cozumel. Had we booked through the cruise, the per person cost would have been $40, $90, and $60, respectively. I decided those amounts were too high and shopped around. I made online reservations for the Key West activities with local vendors ($11/pp for Hemingway's house and $35/pp + tax for parasailing). Once we arrived to Cozumel, we asked three vendors about their prices and settled on one for $45/pp (in hindsight, we probably could have negotiated with them). Nevertheless, instead of paying $380 (for the both of us), we paid $187.24....for the same exact thing!!!
• I printed coupons. In asking about places to go for our trip, Pancho's Backyard came up. We went to the website and printed out coupons for free lime margaritas. They were DELICIOUS!!!
• We booked early. As soon as my friend set the date, I booked the cruise (March 2010). Since then, I'd been setting aside $100 each month to pay for the cruise (which was paid for by October 2010) and spending money. A few months, I spent the "cruise spending money" on other (i.e. more immediate) fun things, but at the end of it, I still had $400 left.
• It wasn't a "way to spend less" but a financially savvy decision nonetheless...My boyfriend has a rewards credit card that earns points for every dollar spent. We each received a card that granted us entry into our stateroom and allowed us to make purchases on board (a few rum punches and mojitos, room service, coffee, and daily gratuities, for instance). Both of our cards were assigned to his card. So the $202 we collectively spent will translate into points that he can use at a later time.

Despite spending a ginormous amount of money on clothes ($700+), the amount of money we spent during the actual vacation was very reasonable. We had an amazing experience and are looking forward to our next trip! Perhaps next time, I can wear what I bought this time around and really keep the numbers in check!

Tax Realities....Better Than I Thought

Several weeks ago, I lamented that my goal of paying off my car by the end of this month had been dashed. Why? Because I anticipated a $2500 tax return (federal and state) which would have have been applied to my loan balance....and then I started using TurboTax and I soon discovered that my refund, if any, would be no where near that. So I updated my debt repayment plan to reflect NO tax refund. After having a CPA friend help me sort through taxes for two states (and one municipality) I've learned that I do get a refund (federal and state; I actually owe in one state). Now I am wondering how I should spend my refund. I've already purchased $100 worth of savings bonds using IRS Form 8888, so I have roughly $1100 left to play with. If I apply all of it to the car loan, I can finish the note approximately 1 month early. I could also contribute the amount to my Roth IRA for the 2010, for which I have $3,670.89 remaining. I could spend a portion of it for two weddings (within the month). I could put it in my emergency savings account towards my $10K goal. Or, I could equally divide it among the abovementioned expenses/savings. Decisions, decisions, decisions.....

What would you do if you expected something, then didn't expect anything, yet received something? Would you stick to your original idea when you were expecting something or change course?

Loose Change

The past 30 days have been kind of crazy. Compared to previous months of spending, I can say that my most recent spending has been out-of-control. Most of my purchases have been for food, namely eating out. Yesterday, I was faced with the temptation of getting yet another coffee from DD (Dunkin' Dounuts). For a split second, I reflected on my spending for the month and decided I would feel better if the money didn't come out of my bank account or wasn't charged to my credit card. What option did I have remaining? Short of asking someone else to pay for my indulgence, I went to my piggy bank. I cracked that sucker in half (I didn't break it, it splits down the middle to open and close) and selected 8 quarters. 

I found myself grabbing for my Visa a few times (out of habit I guess) and it was kind of weird handing the cashier the coins. Nevertheless, I experienced a sense of accomplishment knowing that that I wouldn't have to look for this expense when reconciling my expense tracker and bank and credit card statements. It was like free money!

Although my piggy bank is small, I'm happy to have it. In the few instances when I do use cash, I find myself depositing my change at the end of the day (too many coins weigh down my wrislet and I don't care for having to sort through the extra stuff). I don't have any plans for my piggy bank, such as savings or going out to a movie. Maybe I should. Perhaps only then I would become a little more intentional about using my piggy bank.

What do you do with your loose change? 

Do you have a particular purpose for it? 

How do you store it?*

*My mother has ziploc bags of coins around the house. It's kind of crazy.

Thank Goodness I'm Out of School!

If, like school, my attendance was recorded on this blog, I'd probably be failing. I haven't posted in two weeks! Which is especially terrible since I post twice a week. Nevertheless, I will share what I have been up to.....spending money recklessly and not so recklessly.

The reckless part comes into play because my financial decisions over the past two weeks have effectively set my car payoff date back by a month. A large part of this is because I spent $1,010.31 (I negotiated this down from the original quote) to get my tie-rod and rear struts replaced (this is the "not so reckless" part of my spending). The rest of my car payment money (and then some) was spent on spa services ($188), dinner ($55), hair supplies ($20 and change), airfare, eating out (including Dunkin Donuts), and a new pair of sneakers ($44), among other things. 

Why the splurge? Why the major deviation from "the plan"? Frankly, there's no excuse, yet, I found myself justifying expenses because it was my birthday. Yup. I turned 27 years old last week. And unlike previous birthday celebrations, I did not plan for this one. No trip out of town. No dinner with my beau. Nothing. It was quite depressing. I guess that saying about money not being able to buy you happiness is true....I sure made an attempt at it (enter sad face).

Image from murlocparliament.com

Now it's time to refocus and get back on track. No more emotional spending, no more failing to plan and trying to make up for it at the last minute.

Have you ever made emotional purchases? Splurged in an effort to "fill a hole?" What was the consequence?

Do You Keep Maintenance Records?

I went for an oil change last week and learned that my car requires additional repairs estimated to cost more than $1000. It seems like it was just yesterday that I was wigging out about the egregious amount of money I'd have to divert [from my car payment] in order to ensure I have a reliable ride. Actually, that was November 2010 when I paid  for the "check engine light" issue to go away and May 2010 that I paid for the rotor replacement (hundreds of bucks). 

If you guessed that I'd be talking about this again, your guess would be half right. Lately, I've been thinking about all of the work that I'm getting done to my vehicle. Frankly, I haven't been keeping an organized record of all services performed. Fortunately, however, I've been going to the same mechanic (at least since I've moved to this area), so they have a pretty good record of my oil changes, fluid flushes, and major repairs and whatnot. I've read a little bit here and a little bit there about the benefits of recording your vehicle's service history, the gist of the advice being that you'd be able to negotiate a higher selling price when you sell the car. I guess a record screams "LOOK AT ME!!! I'VE BEEN CARED FOR!!!"

Perhaps I'll get around to keeping a service record for my car. But I wonder, what's truly valuable to keep record of? Oil changes? Sure. Tire rotations? You bet! Car washes? Maybe not so much. 

I'll keep poking around to see what information is recommended to be part of such a record and will look to the comments in my budget for insight about the specific services I paid for. I'll keep you posted :)

Do you maintain a service record for your vehicle? 

If so, what information do you include?

What Rewards Card Do You Recommend?

One of my goals is to get a rewards credit card. For the sake of my own sanity, I've made an effort to pay my credit card balance in full each month (I'm going two months strong!). Since I'm getting more comfortable with this habit, I've decided that it's appropriate for me to start shopping around for various cards. These are the card attributes that I've decided are important:

• No annual fee
• No monthly maintenance fees (in fact, no stupid fees that are assessed, even if I elect not to use the card)
• Every purchase qualifies for points (none of that fancy stuff with "select merchants" or restrictions to entertainment or dining expenses)
• Points/rewards/miles don't expire
• I can use points/rewards/miles on any travel purchase (any airline, car rental company or hotel) without blackout dates.

Given these requirements, I've been considering Blue Sky from American Express, Venture Rewards from Capital One, Miles by Discover, and Chase's Sapphire card.

I realize that a couple of the cards waive the annual fee for the first year (one version of the Venture Rewards card and the Chase Sapphire card, specifically), but I'm confident that I'd be able to negotiate waiving the fee in subsequent years.

I've been on credit card comparison sites such as CreditCards.com, BankRate.com, CardRatings.com and even Google's credit card reviewer, and I'm still undecided.

The APR (annual percentage rate=the cost of using other people's money) and late payment fees are not important to me, as I will continue to pay my balance in full each month (no finance charges here and I ain't the one to go jacking up my credit score with late payments). Moreover, I will use this new credit card for regular purchases: food, gas, my phone bill, and miscellaneous expenses (ex: cat stuff, airfare, entertainment).

Do you have any of the above-mentioned credit cards? Have you thought about getting a rewards card recently? What have been your experiences? What advice would you offer as I make this decision?

Lesson Learned

In my last post, I was gearing up for part two of my vacation to the Bahamas [to help my girlfriend celebrate her birthday]. Sadly, I didn't go. I left my passport [1: The Passport Story]. Shipping that sucker overnight would've been stupid expensive, not to mention the expense related to changing my flight reservation. To make matters worse, several hours after returning from the airport, I got sick. I don't know if it was something I ate or my distress over missing my girlfriend's birthday manifesting itself, but I was out of commission for 2.5 days. Fortunately, I've recovered, and my vacation is behind me :( 

Although I missed out being a Bahama Mama this past weekend and creating adventure-filled memories, I've managed to find a [financial] bright spot in the midst of it all. The money set aside for the trip went unspent. And once you consider that I was bed-ridden and in no mood to do any online shopping, that money has remained unspent. Previously, I mentioned the temptation to go above and beyond those funds, but considering all of the circumstances, it's safe to say that that's not an issue. 

Here is my question to you: what do I do with the unspent vacation funds?

So far this is what I've come up with: buy a gift for my girlfriend (had I attended the festivities, I would've footed the bill for something- dinner, drinks, souvenir, excursion, etc.), put the money back into savings, use it for another trip (I'll be in a winter wonderland of snowboarding this upcoming weekend), put it towards my car payment, or buy something nice for myself.  

What would YOU do with previously set aside funds that go unspent?

[1] The Passport Story: August 2008, my girlfriend (the same one whose birthday I missed :<) and I drove 8+ hours to Toronto. As we approached the US-Canada border, my friend asked me a very important question: "do you have your passport?" If you guessed my answer being "no", you guessed right. Despite a verbal reminder to pack that sucker, I left it behind and was faced with the possibility of turning around (no fun, if you've ever driven on New York's I-90 [the exits are 15 trillion miles apart from one another...I'm only exaggerating a little bit]). Luckily, we were allowed to pass through without issue. Perhaps I took that lesson for granted; this most recent incident hurt a lot (i.e. not being able to go). Undoubtedly, I consider this a major lesson learned!

Financial Goals for 2011

In my most recent post, I shared that I'd been organizing my finances (reconciling savings plans, debt reduction plans and budgets). Naturally, the next thing for me to do was to think about what my goals are for the upcoming year and what I need to do to make sure these goals are achieved. Below, you will find my goals and the steps I intend to take to make them a reality:

• Zero credit card balance: My goal is to end every credit card billing cycle without a balance. This is one way to ensure that I don't spend above my income. I can make regular purchases, such as gasoline and groceries, with my credit card. In fact, I've been considering a rewards card to earn points for ___________ (<<that means I don't know, yet >). This year, I paid $68.21 in interest charges.  That's enough money for gas (and then some), a nice dinner with my boyfriend, an outfit, or a small contribution to my savings plan (after all, it all adds up!).
• Max out my Roth IRA: You already know that I've been kind of obsessed about paying off my car note. As such, I don't have much money left over to max out my IRA. With a projected payoff date of April 28, 2011, I have May 2011 through April 15, 2012 to contribute $5,000 to my individual retirement account. What do I have to do to make this happen? Contribute $454.55 each month to the account. With two "extra" paychecks in 2011, I may have the flexibility to reduce the monthly amount, but this requires that I'm diligent about redirecting a sufficient amount of those checks to the IRA. Knowing me, I'd like to set a few bucks aside for fun =)
• Pay off my car note: Originally, I planned to pay off my car note by June 2012, that is, until I ran the numbers on my beau's proposition of significantly increasing the principal payment amount. Currently, I am on track to achieve this goal by the end of April 2011, especially if my assumptions about my anticipated tax refund are correct. If they are less than I estimate, I may have to postpone the due date for this goal (which, undoubtedly will effect the savings goals). Let's keep our fingers crossed and hope I am at least right :)
• Generate at least $250/ month in extra revenue: Before I took the job that I currently hold, I had a steady goal of generating $3,000 in net income each month. With my deductions for my defined contribution plan, I am short of this goal by $222 each month. For the past few years, I've been toying around with a business idea that promotes personal finance. My goal for next year is to get serious about a web design and marketing plan so I can realize some income. $250/month of income to be exact. To be clear, I'm not looking to pocket all income; undoubtedly, I will reinvest into the business, but having the income will definitely provide some peace of mind.
• Accumlate $10,000 in non-retirement savings accounts by 05/31/2012: These funds would be available for immediate access and as part of my emergency savings. Why $10,000? Frankly, it's an arbitrary amount, but it's definitely a "stretch goal." There are a number of factors at play. Let's start with the not so good possibilities: what if I don't pay off my car by the end of April? What if I don't generate enough additional income? Well, my $10K goal within 12 months will be postponed (by the way, I'd redirect my "car payment" money to this goal). For me to achieve this goal, I need to set aside $833.34/month.  

If you recall, I have $1255 available as discretionary money each month. I'm comfortable spending $200 of this amount for fun stuff. So $1055 - $454.55 (Roth)-$833.34($10K goal)= $-232.89. A girl MUST increase her income to make these goals come true. Even if I sacrificed fun stuff every month (i.e. the previously mentioned $200/month), I'd still be a few bucks short! 

At any rate, these are my financial goals for 2011. What are your financial goals for 2011, if any? How do you intend to achieve them?

I Needed this LAST WEEK!

Proverbial Wallets from John Kestner on Vimeo.

I'm rather disgusted with how I've spent my money the past several weeks. Thoughtless credit card charges...countless transactions for eating out...blatant disregard for my spending plan. I've got $10 to my name (excluding all savings - easily available and not). Am I happy about it? Absolutely not. Is it the end of the world? Again, no.

So what's next? Buckle down and pay off the credit card balance and remind myself - DAILY- of why I have a spending plan. Then, make a list of things to purchase and stick to it. This should help me achieve some sense of redemption, because reflecting on the past several weeks of spending is not inspiring!

Have you ever gotten "down in the dumps" about recent spending? What have you done to reduce the likelihood of repeating such regrettable spending?

Funky Credit Card Action

Last week Wednesday, I received a recorded voice message advising that I call Capital One because fraud had been detected on my account. When I checked the message, I was getting ready to take a nap, but nothing makes your mind wander -and interrupt your ability to rest peacefully- more than a financial woe. So I postponed nap time and called back. It's still not clear to me how and why my account was flagged, but as a precaution, I was asked to verify several recent purchases and to agree to a new account number and card. Fine. What wasn't so fine was that Thanksgiving was a day away, I was at the very end of a pay period and I was asked to make some unexpected purchases (bundt cake pan, anyone?)

Ordinarily, I would have made such purchases using my credit card, but that sucker was out of business. With just over nine bucks in my checking account, I transferred $50 from my savings account so I could go shopping. Luckily, the total of the items I purchased came under $50, so I transferred the remainder back to my savings account (after my direct deposit cleared, of course).

These events made me wonder....should I keep a buffer of $100 in my checking account (or some other amount; frankly, $100 is an arbitrary amount). In doing so, I wouldn't have to use my credit card to make purchases [and dip into funds set aside in subsequent pay periods/spending plans].

Do you have a cushion or buffer amount in your checking account? Or do you access funds from your savings account as needed? Have you ever experienced fraud on a credit card account?

Set it Right or Else...

The title of this post refers to your perspective. Two posts ago, I shared that my money fear boiled down to being financially unstable and restricted by debt. Well here's a quick update about my "mini-dilemma." The car repair wasn't some irrational amount of money. After my coupon, I paid $231.66. No more "service engine light" and no more "gettin' jiggy with it" action from my engine.

Now about my perspective...

I'm not the type of person to spend my resources recklessly then look to someone else come to my rescue. But I do know, for sure, that if I legitimately faced an issue that cost me more than I have in all of my bank and investment accounts and more than my credit card limit, I still have somewhere to turn: family and friends. I know they would come to the rescue because they have in the past. For example:

• I'd worked through most of my undergraduate studies to pay for rent and tuition (whatever scholarships and loans didn't cover). It wasn't until my senior year that I focused my efforts on saving up to purchase a car. What I'd saved wasn't enough to purchase a reliable car on my own. And heading into grad school with a $1300 monthly stipend spoke volumes about my capacity to re-pay a car loan (that is to say, it wasn't in the budget!). You might argue that I didn't "have" to purchase a car, but I was headed to a place where I had no networks and there was little (read: absent) public transportation. In short, I was forced to purchase a car. Who dropped some stacks to fill the gap? Dad.

• After opening a Maaco credit card and spending $2500 of my own money to repair my car after an accident, my mom fronted me several thousand dollars to use for a down payment on another car. Unfortunately, when I retrieved my car from the body shop, the engine seized. Estimated replacement cost: $5600 for a rebuilt engine. I paid about that much for the car. And considering that I had JUST gotten out of the repair shop, it didn't seem prudent to drop that kind of money on it. So I got another car, with the help of Mom.

• The car I purchased (with help from mom) was stolen. Everyone knows that when you file an insurance claim, you have to pay a deductible for services rendered by/through your insurer. At the time, my deductible was $1000 (it was this high because I wanted to pay lower premiums). However, stupid me didn't have the full $1000 in liquid savings. I would've been forced to pull funds from my investment accounts (which would suck: fees and penalties and crap) had it not been for my boyfriend. He surprised me and put a check in the mail. As it turns out, I didn't have to pay the deductible because of the way my appraisal turned out, but he was there for me nonetheless.

Going forward, I should be reminded of these instances - and many more- of support around me and not freak out (as much :>) when I'm faced with a financial "dilemma."

Who would you turn to if you exhausted your resources in case of emergency/major unexpected expense?

This is What I Do

For as long as I can remember, PF geeks/fans/experts have encouraged the use of a budget. In helping people understand how to create a budget, much of their advice directs folks to track their expenses (i.e. categorize and write down everything you spend) for a month, and then use such numbers as a basis for your budget (i.e. the month to month plan for spending your money). My major beef with this technique is that one month of expenses (and income) doesn't look like every other month of the year. Sure, I have fixed expenses and variable expenses to look forward to every month, but how do I accurately plan for the miscellaneous expenses? And how do I remind myself of my progress (i.e. spending within my income and setting aside funds for goals)? 

I track ALL the time. Yup. That's what I do. Moreover, I take a summary of my expenses and average it with previous pay periods (that's how I break down my expense tracking; as per my regular paycheck). Next year, I look forward to tracking on a monthly basis. To give you an idea of how this budget/tracker tool works, I've included a blank copy here. I encourage you to use it if 1) you're not currently tracking your expenses/budget or 2) what you're using isn't working for you. I'd love to hear your feedback. But before we get started, here are a few assumptions:

• You have a bank checking account that you regularly use for transactions.
• You have stable income (i.e. you know how much you get paid for each month)

Okay, here's your guide:

1st Tab, Annual Budget: In general, this is what your month-to-month expenses look like. Simply insert the monthly expense and the spreadsheet will calculate your annual expense for said category. Your total annual expense should be equal to or less than your regular annual income. For the folks who work on commission and have widely varying income, you could estimate the lower end of your anticipated income...or use a tool that's better suited for you.

2nd Tab, "Insert Month Here": This is where you will track your expenses. Feel free to change the name of the tab for the month that you will be tracking expenses. Enter your regular monthly income in cell M3 (it has a little orange ticker in the cell for a comment box). The reason this is here is so your expenses can be deducted from it to show you what you have available to spend. I often check this number against my bank statements. If you have additional income during a specific month, you can add it to your regular income; remember to add a note about the amount and source of those extra funds (ex: tax refund, $3269.11; overtime, $563.97).

For the "date" column, type in the date that you make a purchase (ex: 11/04). For the "Description" column, type in what you purchased and any details you'd like (ex: Publix (groceries), PetSmart (toys), TGIFs (+$10 tip). If you run out of space for the details you deem critical, simply "insert a comment" to add additional notes. Now, enter the amount that you spent at the respective store/on the respective item in the appropriate column. For example, if I spent $56.93 at Publix, I would enter that dollar amount in the food column. Likewise, if I spent $46.36 at TGIF, I would enter that dollar amount in the food column. Now, if I used my credit card to make a purchase at TGIF, I would not enter it into the food column, I'd enter the amount spent in the "CC Transactions" column. Similarly, if you use cash, track all of your cash transactions in the appropriate columns. If my categories of spending don't work for you, change them!

3rd Tab, Summary of Expenses: This is pretty straightforward. Enter the total spending per category per month in the appropriate line. Put another way, copy the amounts from row 4 of your "Month" sheet to the corresponding month in the summary sheet. This last sheet will average out what you spend per category of spending (ex. food, entertainment, bills, etc.). You can then compare these amounts to your annual budget to explore opportunities for improvement.

Since using this budget tracker - about 2 years, now - I've gained an incredible sense of control over my finances. I can project where I will pull money from to make up for other expenses, keep an eye on how much I'm spending, and remain mindful about credit card transactions. I hope it is equally helpful for you!

Dumb Marketers or Dumber Consumers?

Since when did spending money equate to saving money? After plopping down on the couch for some good ole tube watching time, I couldn't help but realize how many companies were trying to appeal to my desire to save money. Here's the thing: they got it all wrong. Instead of asking me to change my car insurance provider to "save" hundreds of dollars, how about you offer coverage at no cost so I can use the money for an upcoming vacation? Rather than tell me I can get a ton of features from your cable/telephone/internet service for only $99/month - a "bargain" compared to competitors - cut me a check to deposit into my emergency savings account.

I've always believed that saving money was about setting money aside for future use, whether it was for a vacation, unexpected expenses or having 'enough' to comfortably use for investing (i.e. secure an amount of money I wouldn't mind "losing"; not that that's the intention, but I digress). Some may argue that saving is about, or also includes, reducing one's expenditures. Well, help me understand this...what good is the amount of money you didn't spend if you don't set it aside (i.e. save it)? Most folks spend their "savings" on other expenses. Here's a great example: you go to the grocery store and when you check out, you learn that because a number of items were discounted and you used coupons, you "saved" $25. What do you do with that $25? Do you think, "Gee, I was intending to spend $75 to purchase these items, but only spent $50, let me set aside the remainder of what I budgeted" or do you say "great, now I can go to happy hour!"?

I could care less about what you do with the money you did not spend because of reduced prices, but I am encouraging you to be clear about what saving money is. And if you're not setting the bucks aside for future use, whatever that use may be, and particularly in a savings vehicle (piggy bank, anyone?), then I'm afraid to tell you that you're simply spending less. Kudos for finding a bargain ;)

7 Days and 1,604.85 Dollars Later...

Last week, I posted "Decisions, decisions, decisions..." to reflect the conundrum du jour: should I use my "extra" paycheck for a trip to Houston or do other stuff with it?

Well, it took me less than a week to blow through more than my "extra" check. Here's how I did it:

• $717.73 for bills ($689.01 for my car payment and $28.72 to pay off my credit card balance)
• $255.64 for "other" or miscellaneous expenses (stamps, airfare, brake lights (the DIY replacement of $6.35 is much less than the $29.99 the rotor-replacers wanted to charge...more on them, next), pet food, public transportation fare).
• $250.10 (on a credit card) for an unexpected car repair.
• I had my coupon ready to go for my oil change, but after a road test (something that I insisted be done because I've been hearing squeaking while braking), I was informed that my front brake rotors needed to be replaced. Unfortunately, they were worn down to the point that resurfacing them (a cheaper alternative to rotor replacement) was not a feasible alternative.
• $197.63 for food (sadly, more than half of this was spent on eating out, including this little indulgence).
• $71.43 for gasoline.
• $60 for an ATM withdrawal ($49.72 was spent on a day trip to NYC - tolls and food- and state park admission for a "hiking" trip in a part of the Appalachian Mountain range. I spent another $6 as a tip for lunch that I didn't pay for.) Sadly, I can't account for the outstanding $4.28.
• $39.53 for savings (I wanted to make the amount in my ING Direct account an even number. Lame. I know).
• $12.79 for a bottle of vino (yes, liquor has it's own category in my spending plan). Don't judge me ;)

All said and done, I will have $34.26 left over from this "extra" check. None of which, I might add, went towards a trip to Houston. I should mention, however, that part of the airfare cost listed in the miscellaneous category includes a membership fee for Spirit Airline's "$9 Fare Club." This service, at approximately $60, will pay for itself over the purchase of two airline tickets (one down, one more to go) as I will receive special fares for being a member ($19 one way ticket to travel 900+ miles, anyone?)

I know this isn't the most impressive record of spending "fun" money, but tell me, WHAT WOULD YOU HAVE DONE?

I guess I don't have "money to blow".....

 

From Candy Slice Comedy

I Like My Sweets Cheap

This post is about me being a glutton or a cheapo. Or maybe I'm a gluttonous cheapo. You be the judge...

I am a fan of Dunkin' Donuts Marble Frosted donuts. It doesn't help that there's a DD (this is what I call it in my expense tracker/budget) within 100 steps of my office. There have been a number of days when, right before work, I would make a pit stop to DD for a small hot coffee and one of my chocolate-drizzled-over-vanilla goodies. And on such days, I would spend $0.89 for a doughnut. Recently, I learned that if I purchase later in the day (say, after 3PM), I can get not one, but TWO doughnuts for the delicious price of $1! Now I know I'm spending $0.11 more than originally planned, and it's not like doughnuts are a healthy food choice, but gosh-darn-it, it feels good to know I can spend less (per doughnut) than necessary. Armed with this new information, I am less likely to get my sweet treat earlier in the morning when a premium is placed on the price. Instead, if I "have" to have a doughnut, I'll let the clock tick-tock away before I indulge (if I'm still thinking about something so relatively insignificant, I might as well get it, right?). Some of you may contend that  3PM doughnuts are, well, old. And cruddy, and no good, and stale and blah blah blah. Well, out of the many discounted doughnuts I've consumed, I can say that I've only had one that wasn't up to par. Aside from that, I've been getting my sweet-treats cheaply!

What items do you wait to purchase? 

Are you the person with all of the Halloween candy in the middle of November? Do you "forget" to go holiday shopping until after January 1?

What's worth it to you to wait to spend less?

Update: Roth, Car and Wants

To date, I've fretted about Roth contributions, using savings to keep up with $1k+ car payments and a list of wants. Well, here's a brief update:

• Roth: I have not made any changes to my budget to redirect funds to my Roth account. So far, I'm saying "screw it." I'll be able to satisfy the $5,000 maximum contribution for 2011.

• Savings for Car Payment: You have likely read that I placed myself in the possible predicament of using my savings to pay my car note because I used a substantial portion of car payment money to pay off my credit card. Well, I haven't moved any money from savings (my ING balance is around $1200) and my credit card still has no balance. As previously reported, my balance for the car note is just north of $8,000.

• My wants: In the "It's My Budget! Part 3 of 3" post, I listed the following wants and needs: max out my Roth IRA ($3,883.75 remaining); pay for a trip to the Caribbean to celebrate my girlfriend’s birthday ($500); set aside money for my boyfriend’s birthday ($300), buy new clothes ($250); vehicle window tinting ($200-$250); and repair the crack in my windshield (I’m guessing $100-$200). Well, you already know about the Roth... I'm diligently saving for my girlfriend's birthday celebration in January (approximately $200/month)... I'm quite a bit unsure about what exactly I'm going to do for my boyfriend's birthday; whatever it is, I have to be realistic about it and make sure I plan for it :) Purchasing new clothes doesn't have to be a bulk purchase type of thing. Recently, I went to a discount clothing store and purchased a few items (I spent $37.07). The money came from the $66.80 reimbursement I received from work... I can postpone the window tinting. I'm likely to get it done for a much cheaper price if I looked outside the metro area that I live in... And the crack in my windshield? I got a quote for $114.95 + taxes. Now I just have to find the time to get it fixed!

What are your thoughts? Would you do the same thing if you were in my shoes?

A Little Extra Something...

I got a check, I got a check, I got a check, hey hey hey hey! I received a reimbursement check from my job and I don’t know what to do with it. By no means is it a tremendous amount- it’s a modest $66.80- but I’m still scratching my head as to what I should do with it. Normally, I apply such checks to my credit card balance. But I don’t have a credit card balance (yippee!). I could blow the money on something beauty-related (like this maybe?). Go out to eat. Put it in my savings account. Put it in my Roth or brokerage account. Give it away. Or let it sit in my checking account just for the sake of it.

What do YOU think I should do with my $66.80?