Thoughts as we come to the end of the year...

Heh. The first one is, I made it! I haven't used the credit card for over a year. And, until maybe this month, I haven't even been tempted. Living on a budget works.... if you stick to it. We have come a long way. I am proud of what we have accomplished, though at the same time, I feel beaten up. It is hard, now especially, to stick to the budget, and I have been overspending lately.

We found out we are having a boy. Even though I wanted a girl, just knowing this suddenly made the pregnancy so much more real. I also started feeling him move in the last few weeks, and have started really showing in the last week or so (though I really just look really fat, I think). I am wanting to buy stuff for the baby and worrying about big ticket items. I have been going over budget and my account is suffering for it. BUT I drew the line at the credit card. I did spend some money that was sitting in my account for car repairs, though. And it isn't like I went crazy... I bought some clearance clothes at Target and some cloth diapers and I am making the nursery linens, so I bought fabric (which I still don't have enough of). But when you are on a tight budget, and when I really have myself focused on being able to pay a lot off this summer, it is hard to carve out even a little bit.

We have also gotten hit at work - Neither one of us got bonuses or raises. Although, my husband's job has "promised" retoractive raises and bonuses in June. He thinks this means layoffs are coming, though it is unlikely he will be laid off. In addition, our insurance premiums are skyrocketing. They are going up $150 in January and another $150 when the baby comes, so we are essentially taking a big paycut. I don't know what is up with my job. They refuse to admit we are hurting, but it is a huge deal that we got screwed in both raises and bonuses and we saw several large rounds of layoffs this year. I also feel I am terribly underpaid for what I do for them, and feel I deserve an additional raise to balance that out. I was surprised I didn't get it, and am debating at what point I need to ask for it. I just feel I am not in a bargaining position right now. That may change next fall. I really think I will be looking for another job by then, not just because of money but also because I spend 2-3 hours commuting everyday. I am having a hard time justifying that knowing I will have a baby this time next year. I keep playing with the stay at home scenario budget, but I just can't do it. Not only do I not really want to be a stay at home mom, we would be cut to nothing. I don't think it is worth it. It is worth it to find a better paying and/or closer to home job though, even though I ultimately love my job and am very comfortable there.

Making things worse, my laptop finally gave up the ghost this weekend. My husband keeps talking about getting me a new one, but I hate spending that money. All I can think about are all the other expenses we have coming up.

Looking back, I said there were three things, I think, that I wouldn't be able to do and still pay off debt:

1. Buy dolls: Well, I did. I am not entirely sure, but I think I bought three dolls this year, and minimal doll accessories. While this is certainly more than zero, it is a whole lot less than the several hundred dollars a month I was spending before. There have been many things I have had to pass on and watch retire, even though I really wanted it. There's always ebay? It did get easier once I got pregnant, though. It is a lot harder to justify these sorts of purchases knowing I need things like cribs and bottles.

2. Get a dog: Well, I did. Barely made it a few months on that one. He was expensive initially, and has been lately because I am taking him to training classes before the baby comes. But, overall, he has not been an overwhelming financial impact. I think after having such an old, sick, expensive dog for so long, I forget that the younger ones aren't generally as expensive. We have also built up a good savings fund for pet expenses. With everyone's shots coming due in the next few months, I am much more calm about handling that than I was this time last year.

3. No 5th anniversary in Hawaii: Yeah. We had to let this one go. There was no way. We did spend a nice week at my parent's beach house using money we saved for that purpose. I spent a lot of time on the beach, reading books, and getting pregnant. :) Maybe for our 10th we can do Hawaii?

4. No baby: Well, I did. Well.... I will. My arrangement with myself was that we would start trying once the credit cards were paid off, which is what we did. It took a few months to get pregnant, which allowed me to also pay off one of the loans. It did not take anywhere near as much time as I thought it would though. I thought we would be seeking medical treatments at this point, but I guess we were very lucky that it did not come to that. It does, however, throw off my 14 month to debt freedom plan, and I have had a hard time dealing with the realities of that. I hate stretching the money stuff out so much longer, and baby expenses, daycare, and maternity leave are all going to make it even longer.

So. I guess the lesson here is that even though you get on a budget, and by definition you have to sacrifice, you do not have to pass on the important things. I was still able to get some fun things - not as much as I wanted to or would have a year ago, but didn't have to give it up entirely. And the important things, like animals and babies, can still be worked in and worked around. You just have to be flexible and plan.

I think back to the first few months, when we were really getting by on nothing. When buying my book club book was my entire "fun money" allotment. When a month with five weeks cropped up and we ran out of gas and grocery money. When I had to pay vet bills with no pet fund cushion. When a leaking roof was the end of the world. When a hotel and plane for my cousin's wedding was a huge deal. I am griping about how low our sinking fund is now that we used it for it's purpose: Christmas gifts. But I am still entering January with around $300 in it, which is $300 more than I had last January! We have been through a lot, and we have come a long way, and we have been able to increase things, like gas and fun money, as things have been paid off or income increased (fat chance).

This has gotten long, so I suppose I will post my looking ahead thoughts separately.

August Budget

Revenue:

I had an extra paycheck this month.

Fixed Expenses:

I was being ridiculously optimistic about power. Termite due this month.

Debt Repayment:

Pay off Student loan #1! Minimum payments to #2 and my dad.

Variable Expenses:

I gave us raises on our personal amounts this month. I put in a clothing budget (finally!!). I am desperate for new underwear. My panties all have holes and are unravelling. My underwire has popped out of my bra and is giving my bruises in my arm. Also, as we approach fall and winter, I desperately need work appropriate winter clothes. I wore the same four sweaters from November - March last year.

Funds:

Lowered our repair amount to help cover our trip and the clothing. I wanted to put all of my extra paycheck into savings, but gave some of it to cover other things.

Trip Summary

Back from our trip.

While we didn't meet the individual budget goals, we came out under overall.

There was $415 in the travel fund in August. We added $100 of the August grocery money to that. I budgeted that money as above for gas, groceries, eating out, and a buffer.

Our stay was free, as it is a family home. We had to clean the place before we left and do some minor repairs and checking while there. We did spend some of our money (grocery) on these tasks. We only ate out once, at my favorite restaurant. Other spending in the restaurant category was for food on the road to and from. I grossly overestimated the gas spending. I think the last time I drove down there was when the gas prices were really high, and I was going off what I remembered spending that time. I also expected us to putter around more while there and need a fillup during the week. We only had to fill up at the beginning and midway each way, for under $50 each direction. I had to mail some packages while there, and that is my "other" expense. (Most of these are rounded up, by the way).

The big hit was groceries. I was shocked at the prices there, and almost no sales. We had to shop Publix, and it was freaking expensive, and like I said, no good sales. I think all the prices were inflated. Even with coupons, it was painful. Later in the week we went out to Walmart (which is much further away) but the deals there were so much better.

We still came in under budget, though I do feel I was a bit of a tightwad about it, but I don't think we suffered for it. We aren't big eater-outters anyway. $74 back into the travel jar.

May Income Statement

I really have to say, at this point, after doing this for a few months, that I really don't understand how we keep having such large net incomes. It isn't like we are gaining $2000 a month. I suppose it is from our bank balances, but even those aren't really that high. We each maintain about $350 in our accounts throughout the month. Maybe it is because we get paid at the end of the month, and haven't spent that money on bills yet when the statements are mailed? It does make sense that the end amount is $400 less than the beginning balances, because I think I got paid an extra $400 at the end of April, which we saved to pay for our hotel in May. I don't know... I just don't want to give the false impression that we are rolling in dough or that we aren't busting our budget every month, which we usually are.

Extra revenue: Birthday money

Expenses:
Yay low power! We over paid cable last month, so it is a little under this month. Termite due this month. I think netflix was double paid last month, or else I just missed it on my statement.

Debt:
Standard stuff here.

Variable:
Restaurant was high because we were out of town and had a couple of unplanned lunches. Most of our meals during the trip were covered by one relative or another. Supplies were high ... I have gotten into CVS ing. Unfortunately, some trips I get out of there for under $1, some are more like $20.

Additional expenses:
I spent almost $200 making my cousin's programs for her wedding, but my aunt offered later to reimburse me for that, which was great! That will show up in July, I think. The rest of the expenses for the wedding included our hotel, parking at the airport, and some last minute outfit additions.

Fund activity:
I have been struggling with how to handle planned expenses in the budget. I keep a separate spreadsheet with the tallies for our funds. Most things I just leave off altogether, like the boy who cuts our lawn, or our cleaning people (which my mom paid for as our Christmas gift). But I feel that I need to keep a true account of our expenses, and I also want to celebrate the fact that we actually were prepared for some things. The money isn't technically coming out of our monthly income, it is coming from our savings funds for that purpose. So, I have added "fund activity" at the bottom of the IS.

This month we took from two funds: I show the balance of the fund, the amount removed, and the new balance.

From repairs, we paid for our roof repair (YAY!) and also 2 new tires for my husband's car, since one was completely flat. From pet, we paid for my dog's boarding for our trip, which somehow tripled in planned amount, because he also had a checkup and some medicine added on.

May Budget

...better late than never? I am glad this month is over, that's all I can say.

Revenue: Includes my husband's raise, and my extra week paycheck for this quarter.

Fixed: Termite bill due.

Debt repay: Typical amounts all around.

Variable: I have split this section up into the categories we are actually spending each month and the categories we are funding, and may or may not actually be spending. It makes it easier for me to read, plan, and analyze.

We gave ourselves a small raise in our discretionary spending. This is financed by my husband's raise, but also well deserved after a full quarter of really having no spending money, and making good debt progress. As I have started to work out more, I had wanted to buy new sneakers, but that money ended up buying mother's day flowers :/ The rest of the expenses are the same as any month.

For the funds, my husband's raise allowed us to add a car fund category. My hope is that this will build toward a new car when needed, but may end up going to car repairs if necessary. All of my extra paycheck this month was earmarked for our wedding expenses, including our stay and parking.

Mid month update

Happy tax day!

We had to pay $2000. But we are also getting $800 back from the state. Had to dip into savings for this. I think this has something to do with our mortgage set up right now. If'n we refi soon, maybe it will straighten itself out. I have tabled the refi for now.

We have had an estimate for our roof, and another one coming next week. They think it was a bullet! I forget exactly, but it was around $850. The people coming next week can also do our siding repair (which is probably from settling), so I am waiting to see what that looks like. We have about $1000 saved for this, and I want it done already.

Counting down to my cousin's wedding. I get an extra paycheck this month, which should cover the hotel. We also have $200 in the travel fund, and the $400 in the sinking fund to cover any other expenses. I don't expect many, but we will have parking and miscellaneous spending. I still need to get a gift, too.

My husband needs new tires. Like, one if his tires is literally completely flat. I still haven't worked out how we are going to pay for this.

The good news is, my husband's boss called him last week and gave him a promotion and an 8% raise. It seems to amount to about $360 more take home a month. It was shocking how quickly I found places for that money to go. I had so many things I wanted to fund, and hadn't yet, that the whole thing is not going to debt repayment, as I might like. Starting in May, We will begin a car fund. Both our cars are old, and I am holding my breath that they will both make it another year (let alone long enough to save for another one). My husband's car is ten years old and has over 150,000 miles. I gave us each a raise in our personal money. I think we deserve it. We have had very little fun money. Now we are up to an amount we can actually use for something we want. I doubled what we are saving for our lawn boy - both because we are going to start needing him again, and because I expect his rates to increase again this year. The rest seems to be ironing out things that were getting ignored in the budget, such as the bills being charged on our cards and the quarterly bills. It doesn't last long. But it is good to have. I am just disappointed, because somehow I thought we could get our debt repayment up to 2900 a month, but I guess that was not a realistic figure. I was not accounting for things properly.

I am also struggling with the fact that I am "saving" about $500 a month into these funds. I could pay things off faster if I didn't. But I feel better knowing that we are building money towards these things, should they happen. Our travel and pet funds are about to take another hit. The repairs we have are outpacing what I am saving for them by far. I have decided to put caps on some of these things. If I manage to hit the cap, then I can cut back the saving there until I have to use the money.

The sacrifices we are going to have to make this year

In addition to just spending less, no more dolls and no more credit card use, we have some pretty big sacrifices we have had to accept in order to do this.

Sure, we are cutting back on our cable, and (after a pretty heated debate) my husband has compromised giving up his Texas server, and trying to set it up at home. We have to order less delivery, and we never ate out or went to movies anyway (s0mething I instituted during that first year, which just stuck. The last movie we saw in a theater was the most recent Harry Potter, and I think that is the only theatre movie we saw last year).

But we had some bigger plans for this year.

No Dog. At least, not as soon as I had hoped. I wasn't planning on getting a dog until after new year sometime, just because of my personal schedule right now. That doesn't mean I was going to go out Jan 2 and get a dog... I wasn't sure when I would be ready again, or when the right dog would be there for me, but I have been looking and did plan to get a dog again at some point. I don't know that I can promise NO dog in 2010, but I have budgeted a rather large "pet fund" partly due to all the pet bills we have been experiencing. I don't expect to have as many animal emergencies now, but I do have our kitty on pet insurance. It is expensive, but it more than paid for itself this year. I don't expect that to be the case again until she gets older, but I have learned the pet insurance lesson. So perhaps once that fund has gotten large, and barring any emergencies, we will use it for a new dog. It'll be a few months at least.

No 5th year anniversary in Hawaii trip. We have been planning this forever. Since before we got married. We couldn't swing Hawaii for our honeymoon, but for SURE we would be able to do it for our 5th anniversary (which is in August). Nope. It has been very hard coming to terms with the fact that we will not be doing this. Maybe for our 6th we will have our s**t together and actually have saved for this trip? While it is disappointing, it is a relief to know I won't have the weight of adding another several thousand dollars onto our credit cards this fall.

No baby. The whole baby thing is so big it probably deserves its own post. Its own blog. I will try to be concise. While I have many reservations about bring a child into this world, particularly one with our combined genetic makeup, the fact that I do not feel we can afford a child is pretty much my biggest excuse. However, we aren't getting any younger here. I have a family medical history of problematic pregnancies, and I have my own medical issues that will probably make getting pregnant difficult. So, I had it in my head we would start trying this spring (when I was past my first 90-days at work, and the baby, if easily concieved, would come at least a year after I started my job.) Because I think it will take a while to get pregnant, and because I don't want to be ninety at my child's high school graduation, I figured we should start trying sooner rather than later, to allow time to try to do it naturally, and possibly time to try alternative methods or adoption, which can also take a lot of time (and be expensive). I have put this on hold. Again, we can reevaluate our situation in the fall and see how close to out-of-debt and savings goals we are, but I cannot imagine adding the possible financial and medical complications of a pregnancy on top of trying to get out of debt. And how much better will I feel bringing in a baby I know I can afford to support?