180 Degrees in Less than 180 Days

Simplicity in Kansas suggested in a comment yesterday, taking a look at a post about how my family has changed since we began our journey together in October. A reflection on five changes I have noticed as we work our Success Map and through the Dave Ramsey Baby Steps.

It hit me immediately as a great idea, since a lot has changed in less than 6 months. In fact, regarding finance, nearly a 180 degree turn-around. It might be easiest to explain by listing some positive advances, and contrasting them to how they were being done before.

Change #1 Bill Paying:

• Then: We haven't had a 30-day late pay in a long time, but it was very close. Basically we paid them as they came in without a plan. This led to silly $20, $30 late charges from the cards. It also lead at times charging a payment to a credit card, or having wave after wave of Ninja Bills.
• Now: We track every bill in MS Money including yearly ones and know exactly when we are going to pay them to maximize cash flow and eliminate late-fees.

Change #2 Spending Habits:

• Then: It kind of used to be first come first served! If I wanted to go Golf, I checked to see which credit card had some credit and I was off. The kids would hit up their Mom for everything with little thought of earning or saving for what they wanted.
• Now: Everyone in the house know where a bill is allocated, down to getting a Tea on the way to work. All of us are on allowances, we can spend it on what we want, but when it is gone, its gone! We try to pay with cash anything that we can...oh yeah, the Credit Cards are chopped and haven't been used in four months!

Change 3# Success Plan:

• Then: Don't worry, we'll always make more money...It will work out. Hey, there is the sand, I am going to be over there with my head in it!
• Now: Each person, including the kids, has a good idea to where the money is going. They know we didn't handle our finances well and we are now cleaning them up. They now know that a budget is a lifestyle, not a prison sentence to be paroled from. We all know that whatever we want...we have to save for it. A great example is with the tax return that we are getting. While questions came up about vacations, etc., when I explained that we were putting it away for taxes, everyone understood why. My oldest daughter told me to find the best interest rate, so there would be more for Christmas! (Both Girls are budding CFOs)

Change #4 Attitude Towards Money:

• Then: When my 10 year old daughter was four, she asked for a credit card for Christmas...so she could shop whenever she wanted.
• Now: Just last weekend she said she never wanted one because it was silly to pay extra just to get it now! Today I was with my 7-year old son at the bank getting the cash for our envelope system and he asked if we could go to McDonald's for lunch...just us two. I said sure, but reminded him that since the family wasn't all there, we each have to use our allowances to pay for our meal, because that was fair. He turned to me and said, well, how about I save this for a Bionicle instead...Good choice Son!

Change #5 Stress:

• Then: Never knowing what would turn up next, always waiting for our next check. Everyday felt like a rainy day.
• Now: Never is everything perfect. But the stress level around money is 10% of what it was. What stress there is really due to our understanding of what opportunities we blew by not having our stuff together...

So looking back we really have turned 180 degrees in less than 180 days. We are not perfect by a long shot but we got a budget, planned out our Success Map, are working our baby steps, built our snowball, and the light at the end of the tunnel isn't a train anymore!

If you haven't started, start. If you stopped, restart. If you are doing well, look for improvement! You can do it!

Moving Day! Savings Day!

Today (actually it started Friday) was moving day into my new office. They rearranged the common area next to my group and basically tossed us out of our homes. But this is already working better. It seems like I should be able to save time and save money.

The new area has the cubes arranged better so there is a common shared table area for everyone to use. We are also a bit more tucked into a corner so it is a bit quieter.

However my I do need to clean up and organize the new office. I just didn't realize I was such a pack rat! Here are some of the things I found:

• About 20 semi-used legal pads - Why do I always use 2/3 of one, lose it and then do the same thing again and again
• 2 packs of pens - Which is great because these are the Bic gel Grip pens and the company won't order them any more...probably cause I lost so many!
• $5 - Stuffed into the back of my old desk - Yeah!
• 20 -2" binders- This was on the bottom shelf of my suitcase, my group doesn't use these as we need the type with the clear view front
• About 400 packets of ketchup - From when I used to eat out for lunch.
• About 400 Napkins - From the same...I always take extra napkins, this was drilled into me as a kid. I don't think Mom ever bought napkins...
• Two full Garbage can of...junk
  

Once it is cleaned up I can bring in my little fridge that I have had for years and stock it with drinks. It is such a waste to go to the vending machines. Not eating out any more for lunch saved the biggest chunk of my "allowance' this will save me even more as I can load up at Costco on the weekends pretty cheap.

It can't be just me though; have you ever found something cool, or weird cleaning up your desk that you forgot about, or even your home?

Keep Your Budget and Keep Your Hobbies...

I really enjoy playing Golf with my friends. It really started just this year, but it has been great. It is relaxing (most of the time) it gets me outside and away from the computer, and it is one of the only sports (don't worry, I use the term loosely when associated with me) where you only really play against yourself. On top of it all my daughter will often "caddy" for me so we get some one on one time as well.

So when money came to a real head in July and we all made the pledge to cut expenses, especially non-Needs, and get on a budget (although it took to September to really get things in order). I was thinking that my golf time was behind me, at least until our debts were paid off.

It had been drilled into me as a small fry that Golf was a Rich Man's game by my family. I believed that you really couldn't play unless you were willing to pay big money, or at least had big money. I had a chance to go out a couple times with our Reps and Sales Guys and it reinforced the issue. They played at nice, often private clubs and spent like a liquored up monkey on the latest gear. So not willing to spend that sort of money, I moved on.

For my Birthday last year my wife surprised me by getting me a gift cert for a set of club and 6 lessons. I bought some off-brand clubs that actually fit me (I am 6' 4") took the lessons and found that I enjoyed it. I started to play on the weekends with my brother and step-father at a local course and really enjoyed it.

But even this was going to be out of my "allowance range" now that we were on budget. Then some friends clued me in to some great ideas as they were trying to play for as little as possible too.

We started by looking into "Twilight Golf" meaning a round at the end of the day, especially on a weekday. This gave you big savings because hardly anyone plays at that time! We would go right after work and found deals that took expensive courses that normally ran $55, for $20! We then found a little 9-hole course that we could play for $5!!! It started at 5pm and we were always last, but we got to play!

I then turned to equipment. Golf is like fashion, every-year new sparkly things come-out and the old stay for a year or so, but get severely marked down. I started by using balls that were a generation or two behind and buying ones that were on closeout, since they weren't as popular. These were balls that had been $40+ just 6 months ago, now going for $14 or less.

I really wanted one of the new drivers that just came out that help your slice. But using what I know now I waited and saved. Sure enough the driver kept coming down in price until it was on closeout for 70% off. I will have saved enough in two more weeks to get it...using 100% of saved allowance cash.

The point isn't to bore you with Golf stories. The same goes for any hobby. Just because you are on a budget doesn't mean you have to give up the things you like. Put creative though on how you can do them for less. I guarantee you will appreciate them even more...