Pay Day Budget- February 5th, 2015

I hope everyone on here on the east coast is staying safe, warm and cozy today during the “storm”. For the first time in the history of my office we closed before we even opened. I hate to say it but meh’ I’ve seen worse. I don’t think we really needed to close. I was up and getting ready for work when I got the call and honestly didn’t even believe it! I am still thankful however for the chance to snuggle up, watch copious amounts of Gossip Girl and catch up on my favorite blogs!

Here is yet another attempt at a budget as promised for pay day on February 5th, 2015:

February 5 2015 budget

It’ll be interesting to see how it goes! Do you budget per month or per pay?

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Moving Forward – 2015 Game Plan

During a break on Friday I was sitting at my desk at working looking for a good debt repayment calculator that would help me figure out how soon I could have my car paid off when I stumbled back upon Unbury Me. A calculator I’ve used in the past. I input all of my debt figures and their minimum payments and hit calculate…well I almost pooped when I saw February 2019 pop up on the screen. The I said to myself “self, you always pay more than your minimum payment, lets add some more money to that”. I kept playing around until I found a figure I thought was a reasonable amount to contribute to my debt each month and this is what I wound up with:

unburyme

This is a year sooner but it still got me thinking…why am I not including my car payment in my debt total? I was so certain when I began this blog that I didn’t need to include it because it was “good debt”…well that good debt is costing me a whole $288.22 a month and is a big part of why I can’t contribute more money to other areas.  I still am not sure if I want to incorporate it into my totals just yet however I do have an adjusted plan for January-May:

My primary income source will be used to cover all of my bills as well as debt repayment. All of my bills come in and out of that account and that is where job #1’s pay gets deposited.

My secondary income source will be used for savings. Usually I make a little over $300 a month on average from this job. I had been getting so excited at watching my savings accounts grow that I was neglecting paying down debt as aggressively.

In the next few days I will be coming up with a budget using a template from one of my favorite blogs Blonde on a Budget and sharing it with everyone. Right now I plan on budgeting per-pay cheque as I find that a little easier than budgeting for the entire month, as I get going I’m sure I’ll get better!

Please feel free to share any advice and tips 🙂

Debt Update January 2015

Woah! The 18th almost snuck away without a monthly debt update. The progress bars will have to wait for tomorrow but until then:

Debt as of January 18th 2015

Visa: $4228.92
Student Line of Credit: $8716.24

Total: $12945.16.

Better than last month but still not great :(. Here’s hoping February is an awesome debt repayment month!

Money Rules Post #2

Here is is! My second post after beginning Gail Vaz-Oxlade’s “Money Rules”. I’m still loving the book and loving her voice. The only thing stopping me from picking it up more is having the time! Also I started learning how to crochet (I know, I know…I’m an 80 year old in a 25 year old’s body) so that has been taking up some of my free time too. Here we go with the next set of rules from Gail!:

Rule #6 “Set Some Goals”. I completely agree! Without goals, how do you know what you want your end point to look like? She goes on about the importance of making these goals attainable and realistic. I’m hoping soon that I’ll be able to open my new emergency fund account and build it to $1000 as one of my goals for 2015!

Rule #7 “Your Banker is Not Your Friend”- Easy peasy on this one! Banks need to make money, and they do so by charging you interest and fees on the money you borrow.

Rule #8 “Everyone Needs an Emergency Fund“. I can only imagine how much further ahead I’d be if I had had an emergency fund when my car needed repairs. Instead I had to use my savings to cover it. Gail recommends 6 months of expenses as a base for an emergency fund but I still think I’ll start small with $1000 while I’m still in the red.

Rule #9 “Calculate Your Own Debt Repayment Plan”.- Gail provides a really easy formula for working out how long it would take you to get out of debt, seeing how much you’re paying in monthly interest, and also what your monthly payment should be if you want your debt paid off in a certain time frame. So cool! She also suggests using online calculators to help you out if you have multiple debts. I might try this out very soon and see what my end point looks like!!

Rule #10 “Your Financial Education is Your Responsibility”- Oh goodness am I ever loving this book so far. How  are you ever going to learn more about finances if you don’t research. Again I think it would be such a good idea if basic financial lessons were taught in schools.

Rule #11 “Home Ownership Doesn’t Guarantee an Easy Retirement” – I guess I didn’t realize how many people rely on their house as their “savings” or “back up” in retirement. Sure being mortgage free would be awesome but that still doesn’t mean you don’t have maintenance costs and utilities! Retirement savings are still needed! Oh Gail, you smart lady, you.

Rule #12 “Compare Your Student Loan Interest Rate With Regular Loan Rates” – I’ve already paid off my government loans but this makes a lot of sense. Sometimes you could get a loan from the bank at a cheaper interest rate than a government loan. Or better yet, consolidate with a low interest rate.

Rule #13 “Term Insurance Is Not Better Than Permanent”- aaahh life insurance! I’m in the insurance industry and this topic still terrifies me. She goes on to explain the difference between both, likening them to rent vs. a mortgage.

Rule #14 “Don’t Let Your Lender Decide How Much You Should Buy“- Sure you might get preapproved for a mortgage of $300,000 but if you can only afford to pay the for a mortgage on a $150,000 house since you still have other bills, you might be in trouble! No one wants to be house poor. Watch your monthly payments.

Rule #15 “Don’t Wait To Invest”- Gail insists not to wait to invest. Investing still makes me nervous I think. I don’t really understand a lot about it. I feel like if I’m investing I should have a little more money to spend to do so. This is a subject I’d like to learn a lot more about once I have more debt paid down.

Stay tuned for Post #3 coming soon! Is there anything else you guys would like to see from these posts?

Brrr Cold!

Aahhh the joys of home ownership…well..not that I personally own the house but you know what I mean. One day last week it was pretty cold, I’m talking -24 Celsius with a windchill of -38 (-11/-36 for you Fahrenheit folks). I was sitting at my desk working a little overtime before heading home when I get a text from my lovely BF, “we have no heaters”. What do you mean we have no heaters? It’s freezing outside and we have no heat? Can we even sleep at home?? We had power but no baseboard heaters.

So after a while of frigging around the electrical panel (which was emitting a strange melty burny smell) BF finally shut the power to the entire house off and back on again which seemed to solve the problem. We called the local power company who came out about an hour later and said everything looked OK on the outside but our meter was spinning like crazy to make up for the power having been off. Since there was still that lovely smell, BF called an electrician just to make sure the house wouldn’t burn to the ground as we slept.

The next day the electrician came over and the verdict was in. We need a whole new panel. They’re currently pricing out or options (we asked for a price for a larger panel also since we plan to do a few more small renos over the years). I’m just hoping we can get through it for about $1000. I offered to pay for some of the panel or for the crazy power bill when it comes in but BF declined. I still feel like I’ll try to sneak a few other bills though.

OH BOY! Never a dull moment.

“Money Rules” Post #1

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This is my second time writing this post as my laptop decided to kick me off right as I was nearing the end and didn’t save my work…wonderful…
As promised I’ll be reading Gail Vaz-Oxlade’s “Money Rules” and blogging about it probably once a week. I borrowed this book from my mother months ago and kept shuffling it around from room to room telling myself “yeah I’ll get around to reading that some day”. It just looked so big and ominous that I was nervous to read it and feel like the content was over my head. I was pleasantly surprised! I’m only 15 pages in and I already love the book. Her voice as a writer is AMAZING and funny. She’s so easy to understand and also notes that the book is really written for women, which is nice…because I am one. I also love how pro-internet research and continued learning she is.

I’ve said it before that I really think there should be a mandatory course in high schools called “How to Handle Money n’ Shit” because there are skills I never learned before being thrown right in. If you’re a high school Math teacher (hello!) please do your students a favor and work budgets, mortgages, credit cards and other day to day financial topics into your course work!

The first thing I noticed when I opened the cover was that the book is broken down into “rules” and not chapters, 261 of them to be exact. Not to exert myself, I went with the first 5 today. They’re generally 1-2 pages and are a really quick read. My momsy already turned down the pages of ones she thought would be relevant, what a doll.

Here are the first 5 “Rules”. Again just for copy write purposes…Gail wrote these, not me! 🙂

#1. “Renting is Not a Waste of Money” – This was pretty cool. I don’t know how many times I’ve heard the opposite, but if your lifestyle doesn’t jive with home ownership and you don’t want the hassle of home maintenance then renting could really be a great way to go. For me I like the idea of having “a place to call my own” if I want to paint the walls lime green than I can. Currently I live with my BF in his house. I’m constantly changing things to make it feel more like “my home”.

#2. “Don’t Marry a Money Moron” – I don’t think this needs an explanation. She does say that she’ll let you know what to do and if you’re already married to him though later in the book!

#3. “You Must Have a Will” – I don’t have one of these. I did write a fake will as a school assignment in grade 4 when we were reading Tuck Everlasting. I was very selective of who I gave my toys to.
#4. “You Must Have a POA” – Again, I don’t have one of these but I do see everyday at my job in the insurance industry how important it is to have someone who can speak/sign for you when it comes to your financial choices! 

#5. “Figure Out What is Really Important to You”- Some people it could be becoming debt free (like me!) some people could want to buy a house or travel. Its different for everyone but just as important to figure out.

I’m sure another post will be coming soon, but until then I have The Good Wife to binge watch. Stay tuned for more “Money Rules”!