Thursday, January 21, 2010

2010 Woohoo!

Budget for 2010. This year my budget rules are:
  • 1 income at 40 hours per week
  • calculate all expenses on a weekly basis (excel spreadsheet)
  • save 10% of income
  • log all expenses (notebook for me...I'm not a techy)
  • envelop system - cash based
  • action plan for expenses (how to keep prices low through brainstorming i.e. gifts, entertainment, childcare)

Keep More Money-
1) I changed witholdings with the employer to take out less money. I can use this money during the year and not have to wait for the big refund.
2) took both classes 1 and 2. The first class is primary on couponing and saving groceries and personal products. Class 2 focuses on saving everything else. For example, notification on Old Navy's twice a year sale 50% off clearance prices. And
3)organization - I need to know what I have and what I need so I'm not just buying. For example, I keep my kids' next year clothes in banker boxes. I made a list of what I have and what I need and taped it to the front of the box for each kid. I have a copy of the list inside my glove compartment so that I have it for garage sales and clearance sales. Meijers has crazy deals on underwear and socks. I shop Penniwise and other resale stores for clothes.
4)sharing information - We had our first meeting of the year and wow! It is nice to find out ways other people save money. I didn't know that many of the Chicagoland libraries have discounts for 72 museums Summer activities and entertainment at much lower costs without paying membership fees. One of the members said to join Another mentioned, cell phone service through AT&T uses company FAN codes for discounts. has many gift certificates with promo codes for 80-90% off. I have been using these restaurant certificates for personal use. One of the members has been giving them as gifts. Summer camp or activities for kids - a suggestion vacation bible school. Lower energy prices through Nicor switch gas provider to Mulch through Steve Piper Landscaping in Aurora...Wow 1/2 the price from Sids. Have insurance auto and home repriced.
5)Use the services that are being paid for..i.e. We have a YMCA membership. It didn't get much use last year and I wanted to cancel it. We decided to keep a log of the number of times that it is used. If it is less than $5/visit, we will keep it. So far this month $6.81/visit, projected to be $3.26/visit.

What do I do with earnings over 40 hours:
note -husband is hourly not salary and does not receive vacation pay so priorities:
  • make sure all overages go to expenses/envelopes to meet budget
  • have funds available to cover expenses due to weekend getaways, vacation, and sick days
  • set aside savings for deductibles: auto, homeowners, medical
  • replacement costs - if necessary cost to replace vehicle, furnace, water heater, air conditioner
  • net worth diversification - liquidity, investments, and real estate, and liability reduction