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)

Actions:
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) www.jillcataldo.com 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 www.retailmenot.com.
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 - http://debtproofliv.meetup.com/111/ 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 http://www.museumadventure.org/museums.php Summer activities and entertainment at much lower costs without paying membership fees. One of the members said to join http://www.mycokerewards.com/home.do. Another mentioned, cell phone service through AT&T uses company FAN codes for discounts. www.restaurant.com 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 http://www.ambitenergy.com/. 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

HAPPY NEW YEAR!

1 comment:

  1. February 21, 2010-still plugging a long with my budget. Some things are over groceries, clothes,and utilities (or should I say 'A lot of things are over budget.')
    1-groceries - bought the Jewel freezer; we went on a weekend getaway and didn't do a good job with our food costs. I will need to strategize on this area. March madness - eat from pantry/freezer.
    2-clothes - sale at Old Navy (kids clothes are ready for 2010-11 school year) and I can open this category end of April.
    3-utilities - I believe the cost of utilities in spring and fall will bring the cost down.

    regular income streams, no significant overtime or commissions

    childcare for summer 2010 and prek 2010-11 concerns (need to keep kids active, educated, and costs within budget)

    still need to reprice cell phone packages (currently sprint) and cable (dish network)

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