WOMEN IN RED RACERS

[redracerris]

For our budget, each month we have our set expenses and any expenses that need to be taken care of that month, as well as what comes out as cash. For the longest time, I wasn't putting enough in certain categories, nor did I have all of the categories I needed. The cash that isn't spent gets put into envelopes that stay at home unless we need it. Anything extra that is left over at the end of the month goes into savings where it sits until the next month. Then it gets split 15% to each of us for fun money (cap of $100), 35% goes to our house project fund and 35% goes towards loans. If our personal fun money goes over the $100, we decide where we want the extra to go - house or loans. Unless there is something (like SCA Gear) that is wanted really really badly, then we talked and agreed that we would get the full amount to use, but only for two months. There were a couple of months where we didn't have any extra money because we had a car repair and some other things that came up. We were able to cash flow all of it because of this system. The reason the money stays in the savings account for a month is so we don't have to always dip into our EF fund (which is only $2,000 right now) if something comes up. Doing our budget this way has made it so that we have a nice balance between play and paying off loans. It's not exactly a zero based budget, but in essence, everything does have a name.

My only goal for this year was to pay off the PLUS loan, which happened back in July and have already paid off another mini loan. I will have to come up with some new goals for 2015.

[nidena]

Dec 3, 2014 10:42:07 GMT -5 Ombud said:

<snip>

Question to all: do you make an extra payment during the month or just at the end? If the end, how do you determine how much to leave in the checking account in case something comes up next month?

I make the last payment on the same day that my next paycheck is going to hit.  For example: last week, my "before paycheck" balance was $67.14 in my checking account.  I had allocated every last dollar that I had received on the 15th, so I already knew that I'd be putting that $67 towards my CC.  I scheduled that payment, on Wednesday, for Friday; it hit and for a very short period of time--maybe an hour--I had .14 in my account.  

As for financial goals to complete in 2015: 
1.  Pay off the $19,952.42 that is sitting on my CC.  It was zero four years ago.  It will be zero again.
2.  $458/mo to my Roth
3.  20 hours a pay period at my part time so that IT pays for groceries and small WANTS each month.

My next update will reflect my HEL payoff.  Is it the 15th yet?

[sealy]

I will have CC #2 paid off next week. I now owe $50.

[seriousthistime]

How many ways can we say "budget" without using that word?  Mine is "strategy."

I've fooled around with various strategies to stay on task, money-wise. In each, I first make automatic withdrawals from checking into various savings accounts so I have the money for certain recurring expenses like property taxes, vet bills, Roth, and so on. For each month I have a 9 x 13 manila clasp envelope where I keep the paper related to all bill paying. That's where all the paperwork goes. I clean it out at the end of the year and reuse the envelopes for the next year. I keep what I need, toss what I don't.

So that part's common to all of my strategies.  A few years ago I'd map out a full year on Excel, list each payday in the left column, and in the top of each row I'd list each recurring bill, like insurance (which I pay monthly), the various credit cards, gas/electric, mortgage, and so on.  Then, looking at the pay dates, I'd give every dollar a job.  If a bill needed to be paid out of a particular paycheck, there would be an entry in the box for that bill with the amount to be paid.  Then I could basically map out each paycheck, decide which bills would be paid from that paycheck, and I would keep about $400 from each check (after paying the bills) for things like groceries, gasoline, and other incidentals.  If for any particular paycheck I'd see I couldn't meet all the obligations without $400 or so left over, I'd juggle a bill into another paycheck, either earlier or later, depending on what worked. It helped for me not to pay so much in a given month that I'd have to use the CCs (a self-defeating act) to make ends meet. 

It'd look something like this:

	Mortgage	Utilities	CC#1	CC#2
Jan 1	$500			$45
Jan 15		$210	$335
Feb 1	$500			$45

It this case, I'd be racing CC#1.  Because I'm paid every two weeks, 26 paychecks per year, the first and second paychecks of the month did not always look similar. Sometimes I'd pay the mortgage with the third paycheck of a month, for example.

I've used various systems since then, including YNAB, paper and pencil, and so on. Nothing has been as helpful as the Excel example shown above because it is easy to see at a glance which paychecks are going to be tight (meaning I should shift some bills to an earlier or later paycheck with more flexibility), and it allows me to plan for the amount I need for things like gasoline, food, and so on.  I suppose I could refine it further by then taking that $400 or so out in cash and putting it into envelopes.  I may try that in 2015.

[bankergurl]

Dec 3, 2014 21:31:44 GMT -5 sparks2710 said:

Hi Sparks!  My blog is on the tagline on my posts, bankergurls.savingadvice.com/
Enjoy!

[bankergurl]

Hmmm.....the quotey box thingy doesn't seem to be doing what I want...

When you quote someone, do you have to quote their whole post?  I was trying to just quote one small part, so i deleted the rest, but then it didn't quote any?

[Sam_2.0]

You can quote just a piece, but it's pretty picky and typically ends up doing what it did for you. There's also the option to use the codes [ quote ] [/ quo.te ] (without the spaces or the dot) to copy & quote just alittle bit. But that won't tag the original poster.

[tribeca7]

UPDATE: tribeca7: 12/4/14, $29,231.82 (3/6/13, $45,406.31, NE101)


Hello everyone! I don't post too often, but I sure do read everyone's posts frequently- it's super inspiring and informative to see what everyone is paying off and what they have to say; I've definitely learned so much. I found this forum randomnly one day when googling debt and debt strategies. As for myself, I live in New York, and the debt I am racing is my student loan debt. I just combined them both together, but one is down to $550.44 and the other is at $29231.82. I love seeing that lower number on the one, but when I look at the other, it just feels like there's so much left to go...

[redracerris]

Ombud With the system I outline above, I just put the 35% plus any of my leftover 15% towards the loan on it's due date. For me it's simpler just to make a payment once a month. This might not work for some, because they might say, "OOOOOHH! I have money! Lets do that with it, and then this...and ooo yes this too!" DH kind of used to be like this, but now he's turned more into a saver.   It took us a while to figure out this format. A lot of compromising had to be done. I wanted more to go towards loan payoffs. But, we are winning with money now because we are both on the same page. Plus, it is nice to have a little play money.

[nikiz628]

I love reading everyone's strategies for bill paying, saving, debt repayment, etc.! I have found some of my best financial tips just from trying out what other people have suggested over the years.

[Sam_2.0]

Is anyone else a rounder? I try to round off my payments so that my principle balance is at an even number. Ideally I like it to be at an even $50 increment, but depending on the bill and what we are actively "racing" I sometimes settle for just rounding off to the next $1. I did a spreadsheet with my mortgage payments and I would save myself a whole payment by just rounding off the change. It adds up quickly!

As for Budgeting, we do a yours-mine-ours approach. Most of our obligations are paid from the household account. DH and I each have separate checking accounts where our money for variable expenses goes (clothes, food, gas, etc). Just easier on us if we don't have to check with the other before buying something and we always know that the money for the mortgage won't accidentally get spent on something else. The accounts are all tied together so we can easily transfer money around as needed. He's an indep contractor and paid sporadically so it's hard to plan on what to do with his income. We pay for most things from my checks, and his go to savings, debt paydowns, medical bills, car repairs, etc. Things that can typically wait until he gets paid (or he socks it away into savings for something in the future).

[bankergurl]

Dec 4, 2014 14:56:40 GMT -5 Sam_2.0 said:

Is anyone else a rounder? I try to round off my payments so that my principle balance is at an even number. Ideally I like it to be at an even $50 increment, but depending on the bill and what we are actively "racing" I sometimes settle for just rounding off to the next $1. I did a spreadsheet with my mortgage payments and I would save myself a whole payment by just rounding off the change. It adds up quickly!

As for Budgeting, we do a yours-mine-ours approach. Most of our obligations are paid from the household account. DH and I each have separate checking accounts where our money for variable expenses goes (clothes, food, gas, etc). Just easier on us if we don't have to check with the other before buying something and we always know that the money for the mortgage won't accidentally get spent on something else. The accounts are all tied together so we can easily transfer money around as needed. He's an indep contractor and paid sporadically so it's hard to plan on what to do with his income. We pay for most things from my checks, and his go to savings, debt paydowns, medical bills, car repairs, etc. Things that can typically wait until he gets paid (or he socks it away into savings for something in the future).

I am crazy OCD with my rounding!  Every month when my savings interest gets credited I immediatley go in and deposit enough to get to the next even $5 amount (I try to get it to the next $25, $50, or $100 if possible).  Also whenever I sell items and have that money for savings then I round that up right away too, so if I sold something for $7, I would put $10 in savings.   My only debt is the mortgage, but when I make my additinonal principle payments I make the payments so that my remaining balance is an even amount, usually down to the next $100 mark.  And to be honest it drives me bonkers that BF doesn't pay his down to an even amount (he pays an extra $180 on his mortgage every month ).

[bankergurl]

Serious - Can you please post a link for the Savers board?  Thank you!

[nidena]

I have only two ways that I round for now: on my Excel budget, I round to the nearest dollar for expected expense (but input the actual expense in the "Paid" column) and I round my actual payment to nearest dollar.  I think my payment ends in .51, so I just round up.  Basically, I'm paying an extra principle payment of .49 every month.  I might save a couple hundred dollars in the long run.  lol.

[Sam_2.0]

bankergurl - notmsnmoney.proboards.com/thread/36772/women-red-savers-2014 There's a thread out on the main WIR board. Not sure if they've started one for 2015 yet or not.

[forwardwego]

bankergurl   I'm sorry you are hurting. My parents divorced the summer I turned 9.  It's a real wound, especially for the people involved who didn't see it coming. Thinking of you as you recover gradually, and some days deal with setbacks.

Re:rounding yes I like to round the balance down to the next $10 when paying bills, and up to the next $10 on savings. Generally I like numbers that I can remember easily too. Maybe makes me feel in control if I know the numbers without having to "look them up".


tribeca7 nice update...under $30K . Love that zero on the horizon.

[forwardwego]

nikiz628 good job laying out your goals, come on over to the savers thread and track your progress on your savings goals.  BTW my "money schedule" is on paper too, but no folder...I use a giant paper clip 


@amiteraus nice update, looks like a zero straight ahead, and then another right around the corner 

sparks2710 wow....soon you'll be in the $4K's 

nidena nice score on the extra hours 

[teachermom]

I like to round too...Like to leave balance owing to an even amount....like someone else said, easier to remember without looking up. I don't usually make my mortgage balance even but I do round up my payment and always pay some extra so that I can pay it off quicker. Same with my car payment.

As far as budgeting goes....I am paid on the last working day of each month...salary so most times very easy to know what my check will be and since it is for the month, I pay everything that day for the next month and what I have left, is what I have for the full month. If I do get any "windfalls" the rest of the month, I have been putting in savings to get my EF to $1000. Most come from sales of something or a reimbursement from work.

Teachermom

[munjoyhill]

Good morning, I'm back. I lurk here and there but decided to jump back in.

I have one debt, my mortgage. I'm not paying extra on it per advice from my financial planner. I am now self-employed so he recommended I save any extra just in case. I have $7,000 in savings that I would have put toward my mortgage, but just have it available for business emergencies.

I have $10,000 in my emergency fund.

Update Munjoyhill 12/5/14 $105,576.53 ($155,340.30 6/18/09)

[sealy]

Dec 5, 2014 8:01:34 GMT -5 munjoyhill said:

Good morning, I'm back. I lurk here and there but decided to jump back in.

I have one debt, my mortgage. I'm not paying extra on it per advice from my financial planner. I am now self-employed so he recommended I save any extra just in case. I have $7,000 in savings that I would have put toward my mortgage, but just have it available for business emergencies.

I have $10,000 in my emergency fund.

Update Munjoyhill 12/5/14 $105,576.53 ($155,340.30 6/18/09)

ti was going to say what I've geard Dave Ramsey say but I'll just say this. I think your FP is wrong. You have plenty saved so you can work on getting debt free house and everything. You're almost there. If you wanted you could save $3,000 more so you'll have the same amounts in your EF for business as you do for personal. You will feel so much freere without any debt if any kind.

[seriousthistime]

Dec 4, 2014 17:16:52 GMT -5 Sam_2.0 said:

bankergurl - notmsnmoney.proboards.com/thread/36772/women-red-savers-2014 There's a thread out on the main WIR board. Not sure if they've started one for 2015 yet or not.

The 2015 thread will start right after Jan. 1, so the Savers can get their updates posted.

But please, stop by the 2014 thread.  You can join at anytime, even right now, and either continue toward a long-term goal in 2015 or set new goals for the new year.  And we've been kicking around some ideas to motivate even the smallest saver to save something in 2015.  We can save AND reduce debt at the same time. 

[Sam_2.0]

Dec 5, 2014 8:52:12 GMT -5 sealy said:

Dec 5, 2014 8:01:34 GMT -5 munjoyhill said:

Good morning, I'm back. I lurk here and there but decided to jump back in.

I have one debt, my mortgage. I'm not paying extra on it per advice from my financial planner. I am now self-employed so he recommended I save any extra just in case. I have $7,000 in savings that I would have put toward my mortgage, but just have it available for business emergencies.

I have $10,000 in my emergency fund.

Update Munjoyhill 12/5/14 $105,576.53 ($155,340.30 6/18/09)

ti was going to say what I've geard Dave Ramsey say but I'll just say this. I think your FP is wrong. You have plenty saved so you can work on getting debt free house and everything. You're almost there. If you wanted you could save $3,000 more so you'll have the same amounts in your EF for business as you do for personal. You will feel so much freere without any debt if any kind.

And I would go with the YM answer to not pre-pay a mortgage, but to sock the extra into savings (agreeing with your FP). Then again, I am about as anti-Dave Ramsey as one could possibly be. But I know others love him so I will be nice

[seriousthistime]

Sam, I don't think you are as anti-Dave Ramsey as one could possibly be.  You both agree about paying off debt...and being aggressive (to different degrees) about it.

There is no one-size-fits-all approach.  We each have to do what works for ourselves and our situation.

An investing example: for people your age, Sam, placing most investments in the stock market makes sense.  For someone my age, a few years from retirement, it would be very risky to put all my investments in the stock market.  

A lot depends on the mortgage to be paid off, too.  Assuming that someone is in their forever house and a few years from retirement, it makes sense to pay off the mortgage. For someone in a house they don't plan to be in for a long time, paying off a mortgage might or might not be the best alternative.   

 

[lulu0312]

UPDATE:

lulu0312   12/5/14   9,786.29   (9/21/2007   88,069.92   N571,608)


Hi everyone!  This is my first update on the new thread, and it's been really nice meeting all the racers from other regions.  I was on the Midwest thread and live in Illinois (was in Iowa when I started here over 7 years ago).  I've paid down quite a bit over that time period, and only have this one SL left, so I don't post the whole table anymore (it was pretty big!).

I'm turtle-ing along as my DH is currently fighting cancer, so this debt is not at the top of the priority list right now, but we stay current and pay a little extra when we can.  I work full time in IT and he now qualifies for permanent disability and those payments help a lot. We have decent savings and 401k accounts that should see us through.  (I'm 54 and DH is 58.)  I'm able to take time off from work as needed, so I'm very fortunate there.  The docs think they can keep him around for a couple years and I'm grateful for that.  There was a point where we weren't sure he'd see this Christmas... but he's doing pretty good at this moment, all things considered.  :-)

I get a lot of comfort and strength (and some smiles) reading all of your posts, and even if I lurk more than participate, I read everything several times a week.  Everybody keep up the good work!!  

[Sam_2.0]

lulu - so glad to hear your DH is doing well at the moment!! I was just thinking about you & hoping you would have a good update for us

Serious - I have a problem with Dave personally, but some of the methods he endorses are ok

[Sam_2.0]

We got a bit of a windfall, so the first-line EF is funded to $2,000 now Nice to have that cushion in place so we can focus on racing come January. DH's income was close to last years, I put a LOT more away into taxes this year, and we have a new little deduction so I am hoping we won't get hit with a big tax bill like we did last year. DH has quarterly payouts coming up in January, my company gets bonuses in March, and then he will have quarterlies again in April. With those three we should be in great shape come May!!

[lulu0312]

Sam_2.0 - How do you go about estimating your taxes?  I've tried a couple of online calculators, but am very anxious about what we'll owe come spring because some of DH's disability payments didn't have taxes taken out (they do now!), etc.  I usually do our taxes myself, they've always been pretty simple, but I'm feeling like I need to get some professional tax help soon so we're not blindsided... any advice??

[nodebt42]

Hi all,

I forgot to update after getting paid last week.

Account	Starting	Current	Difference	% Paid
CC #1	$311.08	$0	$311.08	100%
SL #1	$6066.89	$0	$6066.89	100%
SL #2	$34757.95	$20014.18	$14743.77	42.4%
Total	$41135.92	$20014.18	$21121.74	51.3%

On Monday, I'll be under 20K on that student loan for good. (I was a few days ago, but then interest happened.) I can't wait.

[Sam_2.0]

lulu0312 - I use the IRS calculator to get an estimate (www.irs.gov). But we pay for someone to do our taxes every year. It's way too complicated for me to attempt since DH is an independent contractor and works in more than one state. Add in city taxes for my work location and it's just too much. Well worth the $250 fee to have someone else do it (and that fee is deductible as an expense for DH!).

[Ombud]

munjoyhill, as a self employed person, are you building an eight month emergency fund?