Two weeks in and a day from halfway. I am currently at $6 a day over budget. I'm a little concerned about what rent and electricity will do to that in two days, but I digress.
I've been reading a new financial book for women. At first I was a little offended at the idea of 'budgeting for women'. It either insinuates I'm bad at saving money or it insinuates that, as a woman, I have some un-male habits that cause me to spend more. I think I just plain don't like it when someone suggests women are predictable and only act a certain way, or they're not normal women. Hell, I even had a conversation about the expectations people have on women maybe... three days ago?
However this book made a clear and good point as to why women should be more careful with their money than men. Fact: Women on average make less than men. Fact: Women on average live significantly longer than men. Meaning, we have to live a lot longer off a lot less money in order to survive old age. This makes sense to me. This is inspiring to me. What do I do when I'm inspired? I pass it on - because I'm Jesus like that. (Must be a Jewish thing.)
So I'm making a deal with my readers. I am going to continue this budget thing - once a week I will update on something budget-y. I'm also doing a few other things:
I currently own two credit cards. One has a few thousand limit and is almost full. The other has a few thousand limit and is about $1500 full. $4500 in debt is really not something to be concerned about. Y'know, unless it has interest. Which the big card does. The little one doesn't. Not for another 4 months. With today's cheque coming in the mail (I confirmed it was sent last wednesday) I can pay off a full thousand on the big interest card. Then I can tranfer two thousand of it to the smaller no interest card. Leaving me with $3000 with 0% interest and $500 at 14%.
Currently I have almost $500 in savings gaining 6% interest. So with this credit card hogging space I'm losing money. Might as well chuck that savings onto the card, I suppose. It's annoying because that money was 'paying myself first'. But I am not paying myself very well if my debt exceeds my savings investments, am I?
I guess what I'm saying is by the end of today I will have an entire credit card paid off. All because I budgeted. I should point out I don't consider paying off credit cards part of my budget - technically the money is still there. I will cancel the card in the future and I've decided when. When I have that exact amount of money on the card ($3500) in cash in savings, I will close it. I will no longer need it 'for emergencies' (like I ever did...) and of course, I will have paid off the second one and will do the same exact thing.
Then - I will invest. I will talk about this when it happens - like I said I want to update weekly on this. I'm eyeing some stocks at the moment, but we'll see how I go. Unless I go high-risk, there's no point in using money that can go on my 14% credit card (because I'd need a 15% or above return to make it worth it). So once the credit card is paid off, I can start paying the other credit card, then I can invest what I pay myself, which may be as soon as next month.
I am excited.
Heya, just wanted to drop you a line and say that you have inspired me to budget next month. we are in a similiar position (this is cherry_sin from edn) in the whole expendable income thing. I'm glad to see i am not alone in trying to live below my means and happy to see it can be done. ;) You're doing great!
ReplyDeleteIn re the credit card, it isn't totally evil. If you use it for expenses you need to pay anyway (ie rent, fuel etc) and then use the cash you would've used anyway for these expenses onto the card... you win a couple of ways: 1) showing you have good credit history which will only serve you well in the future + 2) you get the reward points which you can use for holidays, etc.
ReplyDeleteAlso, check your T&C on the credit cards to see how long before the bank cancels your card due to non-use. Some banks will cancel your card on your behalf due to you not using it within a certain period so you can't really have one around 'for emergencies'.
Ok, this is just my personal opinion however if you're going to play the stock market .... you might as well go to the casino with the money because it's just another form of gambling. No stocks for me thank you. I would rather buy CF+ IPs (cashflow positive investment properties).
ReplyDeleteI think ALL forms of investing are gambling. Some are a bit higher in odds like blackjack and some are worse than keno. Even Investment properties fail. If I can get a decent stock with dividends I can make money while making money. :)
ReplyDeleteI'm glad I'm inspiring people! I feel like an idiot.
I never use my frequent anything anythings on my card. I don't even know what I get. Should look into that....
True true... and whilst I don't have any IPs I've always wanted to break into that form of investment because of one huge reason: Here in Australia (unlike the USA) we have a drastic UNDER supply of homes. I'm not kidding. Ask any person who really knows their sh*t with IPs and they'll tell you that yes.. Australia has an under supply whereas the USA has an over supply thus the huge difference in the markets.
ReplyDeleteI wouldn't touch the US property market with a 10 foot pole .. actually longer. Plus yes it is all about timing as well not just "location" of the property as well as what the property itself can give you as such.
One of these bloody days I'll get my first IP ! I'm working on my biz first so I have a good consistent income. Once that is done (and I can show my income will only go up).. I'll finally be a position where I can get my first IP !!
Plus I need a decent mentor. IRL mentor not just someone on the internet.