Monday, July 6, 2015

bought the book...

We actually bought a copy of the Total Money Makeover.... it came on the 4th of July. So I guess that is the official start of our own journey to financial independence.

I'm still making my way through it, reading a few pages when the baby lets me but it's gonna get real folks... Who knows maybe we'll be able to actually do a 15 year mortgage instead of a 20 if we can anchor down.

While we have never been commercial debt people and we don't have any debt but our mortgage, I feel like there is going to be a lot of life lessons along the way. I'm hoping the book will help us make better choices and learn more about making our money work better for us.

Since we don't have debt, we'll need to get creative with building our "snowball" but hubs is on board. He hasn't read the book and might not, but he sees the wisdom in moving in 5 years or less and he knows having a plan is better than not having one.

Friday, July 3, 2015

July Budget

With the increase in our monthly HOA and the need to start paying down the mortgage to prepare to move in 5 years and actually still be able to afford a mortgage, our budget needs some tweaking. We ended up cutting our grocery budget back to accommodate for the increased HOA fee and the money we had ear-marked for retirement ($69), will now be our base amount for additional money for the mortgage. 

Last month we had $25.61 leftover at the end of the budget from the items we don't roll over into savings, so that will also hit the mortgage. We used to automatically transfer 1/2 of all the overtime SCB earned into a savings account in an effort to build a little surplus savings. Since we are slowly taking some extra money we have laying around and sending it to the mortgage, I'm eliminating this savings account and taking the $239.31 that was in it and applying it to our mortgage this month. Now 1/2 of all the overtime earned will automatically be applied to the following months mortgage. The other 1/2 will stay as a budget buffer like it has been.

Last month we successfully kept our paws off our daycare fund. It was the first month since our little guy was born that we were able to live very close to our written budget (we went over in a couple areas but spent less in others). I'm hoping we keep our paws off of it again with the hope of taking $440 and adding it to the daycare savings account (so we have 6 weeks saved in advance) and then next month we will apply the $440 to the mortgage. 
 
July Budget: 

Regular Spending:
  • Mortgage (P&I, Property taxes)    $792.01
    • Extra Principle: $69.00
    • Last Months Leftovers: $25.61
    • Eliminate the OT savings account: $239.31
  • Giving     $600
  • Fast Offering     $20.00 
  • Groceries: $315.64
  • Date Nights     $100.00  
  • Pocket Money for the month-     $80.00 ($40 each) 
  • Cell phone allowance     $45.00  
  • HOA     $325.00 
  • Utility Bills      $150.00 
  • Gasoline/Auto     $250.00  
  • Discretionary Spending     $100.00
  • Diapers and wipes: $118
  • SCB's Cell Phone: $30.00
Regular Savings:
  • Roxy Fund     $50.00
  • Prescriptions & Doctors visits     $50.00
  • Birthday savings     $50.00 
  • Insurance     $155.00
  • Christmas savings     $50.00 
  • Vacation Savings     $100.00 
  • Car Emergency Fund     $100.00 
  • Car Registration Fund     $25.00 
  • Daycare: $440.00
  • Daycare: $440.00
  • Clothes: $50.00

Wednesday, July 1, 2015

What we spent in June



I'm really excited to say that we had our first month "living" our new budget. It wasn't 100% perfect, but we kept our paws off the $880 that would normally go towards daycare and were able to save it instead.  With our new 5 year plan, that will eventually be tossed on our mortgage over the next couple months gradually, along with extra money we end up with when the month closes out.

I'm still out on Maternity/bonding leave from work, but these past almost 3 months with our little man have been incredible in more ways than I can imagine (both trials and smiles). I'm glad I decided to take the time (I don't go back to work until August 13th), especially since I've ended up needing to pump and bottle feed him since he wasn't gaining enough weight after the 1st month due to a bad latch and a poor supply on my end... but now he's filling out and growing like a weed.


SCB's parents will be coming down in July for our little man's baby blessing over the holiday weekend and we couldn't be more excited.

My sister has been AMAZING with this little guy. Its crazy how a cute innocent little baby can help heal a family and years of hurt. She babysits at least once a month so my husband and I can have a little time for ourselves. In return I've been giving her a loaf of homemade bread and some freezer jam because she had some of my bread and thinks its the best thing ever.

My husband also started carpooling with one of our friends from church who now works with him so he's only filling up his car twice a month on average-- which is great for our budget because any extra gas money at the end of the month we are putting in our car repair/replacement fund since we know eventually one of our cars will need to be replaced and we don't want to rob our emergency fund for it in a few years... especially since we hope to move.

I also had to break down and get some more clothes... again. While I've lost a ton of the baby weight so far, I can't seem to make my closet work for me still... I have no bottoms that truly fit outside of yoga pants and workout clothes. Needless to say I got a few things to help make Sundays work for church (some cheap skirts and a couple button down maxi dresses from walmart). This way I only have to to "half" undress to pump in the mother's room. My other "regular" dresses/church clothes either don't fit yet, or just don't really work for pumping.

One area we did spend some money in was on Eli... We bought a bunch more bottles so we only have to wash them once a day at night for sanity purposes... Honestly with the pumping I have to do, it was worth every freaking penny. I also had to buy a few more nursing bras in a larger size so we tossed that in the baby category as well. We used some OT and our discretionary money for the month to cover the overages.

What's really awesome is this is the first month in a long time where we intentionally spent money instead of "making it fit" the budget after the fact... and SCB and I didn't really sit down to figure out our 5 year plan until the end of the month so it gives me hope that we are finally back on track.

We also finally have a system going that works for us on the day to day end of things with the baby... we'll have a month and a half before we need to figure out our new normal once I go back to work.

June 2015 Spending:
  • Tithe: $640.00
  • Housing:
    • Mortgage: 792.01
    • HOA: $295.00
  • Internet: $52.99
  • Cell Phones: $45.00
  • Electricity: $71.00
  • Groceries: $346.60
  • Cars:
    • Gasoline: $115.33
    • Carpooling: $13.65
  • Eating Out/date nights: $88.37
  • Clothes: 
    • SCG: $41.93
  • Medical
    • Dr. Visit: $15
    • Hospital Pump Rental: $43.70
  • Baby: $180.74
    • Bottles, bottle supplies, nursing bras, bulk wipes, clothes, etc.
  • Roxy: 
    • license: $27
    • Shots & 6 months of meds: $150
  • Gifts:
    • Father's Day: $40
    • Baby Shower: $41.50
  • Pocket Money: $80 ($40 each)
  • OTHER
    • Organizer bins: $36.57
    • Haircuts (one for each of us) $46.00
    • Video Game: $2.49

2015 Spending

  • Tithe: $4,969
  • Electricity: $316.64
  • Internet: $285.27
  • Cell Phones: $411.92
  • Housing:
    • Mortgage: $4,732.04
    • HOA: $1,770.00
  • Groceries: $2,220.07
  • Automobiles:
    • Gasoline: $830.48
    • Car Repairs: $486.42
    • DMV Renewal: $99.00 
    • License Renewal Fees: $66.00
    • Insurance: $681.66
    • Carpooling: $13.65
  • Eating Out: $816.69
  • Fun Money: $480.00 ($40 each) 
  • Clothes- SCG: $400.68
  • Clothes- SCB: $344.51
  • Doctors/Hospitals/Etc
    • Baby Prep Classes: $100
    • 2 months of DHA meds: $54.65 
    • Shot at Walgreens for SCB: $19.70 
    • Food @ Hospital: $57.53
    • Hospital Photos: $44.16
    • Prescriptions: $70.70 
    • Dr. Visit: $15
    • Hospital Pump Rental: $43.70
    •  
  • Baby:
    •  $214.43 (6 Nursing bras, Changing pad cover, diapers, wipes, bottles, petroleum jelly, gauze pads, stuffed animal, activity mat, onsies/clothes, bottle supplies.)
    • $180.74 Bottles, bottle supplies, nursing bras, bulk wipes, clothes, etc
  • Roxy:
    • Flea/Heart-worm meds: $258.92
    • Shots: $18.00
    • New Leash $23.10 + $14.44
    • Kibble and treats: $39.86
    • License: $27.00
  • Valentines Day: $116.66
  • Easter: $89.73
  • Gifts:
    • Squeeze Present: $50.36
    • Push Present: $113.95
    • Flower "Thank yous" for baby shower  $16.17
    • Birthdays: $226.95 
    • Father's Day: $40
    • Baby Shower: $41.50
  • Other:
    • House Items
      • New Keys for house, mailboxes and cars... plus key chains: $19.96
      • Office Organizing (File organizer, receipt holder, binder clips, pens, desk drawer containers): $25.05
      • Bar Soap, Batteries, Hygiene items, bed cover, toy hammock, silicone tray: $62.90
      • Wire hooks, Silicon muffin and ice cube trays: $25.63
      • Walmart odds and ends: $161.72
      • Kitchen Items (Silicone baking cups, spreaders, muffin pan, ice cube trays).$55.38
      •  Pens/Spatula: $3.08
      • Organizer bins: $36.57
      • Home Depot (Fix changing table): $23.41
      • Church Cannery: $62.50
      • Corner Shelves for Eli's Room $13.55
    • Computers/Tech/Video Games
      •  Light Switch: $27.71
      • Video Games: $52.60
      • Additional lights for the computer desk $118.96
      • Epic computer case of all computer cases. $204.24
      • New office chair, Camera and memory card, thermometer, and canned air. $287.16
    • Fitness
      • Fit Bit Covers and WiiU fit meter: $32.74
      •  Dietbet: $115.77
    • Vending Machines and soda during baby classes: $17.32
    • Soda Overages: $32.91
    • Tax Prep $61.98
    • CED lights for my moms house: $10.40
    • Car charger for pump, pony toy, and lego bag: $25.88
    • WiiU Controler cable: $25.92
    • Radio Shack (parts to convert swing to wall power) $49.11
    • Toys for my husband; Lego sets, ponies, etc. $98.84
    • Road Runner store membership -- $24.99
    • Hospital Prep Items. $167.01
    • Hair Cuts $66.00
    • DVD: $8.62
    • Photo Shoot Pictures: $150.00
    • Movie Tickets: $18.35
    • Shutterfly: $199.88
    • Canvas Pictures: $209.47
    • Screws: $4.52

Monday, June 29, 2015

HOA Fee up over 10%

One of the downsides to living in a condo is how little we can control our joint interest in this property because I do not have the time to sit on the associations board. (I would run if we didn't have the baby, that's how irritating this all is).

We just got a notice in the mail that our HOA fee is going up 10%. Now I know why these things happen, but i'm a little upset at the percentage of increase and that it is going entirely towards RESERVES when we were paying $45.49 a month (15% of our dues) into the reserve already.

Now it will be $75.48 a month, or 23% of our monthly dues going entirely towards reserves.

For our area, this is insane. We don't have a community pool, gym, or other higher cost amenities AND we don't have any outstanding debts or loans that run longer than 1 year.

The surrounding communities all have carports, pools, gyms etc and assessments in the $330-$350 price range... Heck, one even throws in cable for the entire complex...

Makes me glad were leaving in 5 year.

Thursday, June 25, 2015

Our new 5 year Plan...

Call us crazy, but were halting our retirement contributions for the next 5 years...

We know we can't live forever in a one bedroom condo with our son and pretending we can is just silly, especially with home prices in our area.

So we sat down, ran the numbers and looked at the current housing market... Given our current income and the area we live in, the only way we would be able to move into a larger place is if we significantly pay down our mortgage and have a HUGE down payment to ensure a smaller loan on a new property.

After all, 2 bedroom places are $300,000 and up for a condo barely larger than our current one.



Why 5 years?

  • In 5 years our little one will start school and we should be able to eliminate daycare and use that money for a larger mortgage payment on a larger property. Since our current mortgage is tiny (my original loan was for only 120k), we will need that daycare money since we couldn't even sell our place now and buy it again with a mortgage. 
Even with daycare eliminated, no matter how I do the math we come up short $30k-$50k

But if we take the money we would be putting toward Roth IRA's and instead send it to our our mortgage, we should be able to wipe out an additional $30,000.00 in 5 years... more with overtime, profit share checks etc... and if this happens, so we can hopefully sell our home and walk away with $150,000+ to use as a down payment on a new home which will leave us with a new mortgage of $150k-$200k which we could then afford with our income and no daycare payments.

If I get a promotion in 5 years, even better... but for now its looks like i'll be hanging our with Dave Ramsey and doing the debt elimination plan.
 


Monday, June 1, 2015

What we spent in May


 May 2015 Spending:
  • Tithe:$848.00
  • Electricity: $21.27
  • Internet:$50.32
  • Cell Phones:$45.00
  • Housing:
    • Mortgage: $792.01
    • HOA: $295.00
  • Groceries: $474.39
  • Automobiles:
    • Gasoline:114.73
    • Insurance: $351.07
    • Insurance: $330.59
  • Eating Out:$53.57
  • Fun Money: $80.00
  • Clothes:
    •  SCG: $208.08
      SCB: $46.49
  • Birthdays:
    • $75.01
  • Baby:
    • $84.78 (Diapers, wipes, onsies/clothes, bottle supplies) 
  • Roxy: $14.44 (leash)
  • Doctors/Hospitals/Etc
    • Prescriptions: $50.00
  • Other:
    • Walmart odds and ends: $78.75
    • Movie Tickets: $18.35
    • Shutterfly + ornaments $199.88
    • Video Games: $50.11
    • Canvas Pictures: $209.47
    • Screws: $4.52
    • Dietbet: $115.77

2015 Spending

  • Tithe: $4329.00
  • Electricity: $245.64
  • Internet: $232.28
  • Cell Phones: $366.92
  • Housing:
    • Mortgage: $3,940.03
    • HOA: $1,475.00
  • Groceries: $1,873.47
  • Automobiles:
    • Gasoline: $715.15
    • Car Repairs: $486.42
    • DMV Renewal: $99.00 
    • License Renewal Fees: $66.00
    • Insurance: $681.66
  • Eating Out: $728.32
  • Fun Money: $400.00 ($80 each) 
  • Clothes- SCG: $358.75
  • Clothes- SCB: $344.51
  • Doctors/Hospitals/Etc
    • Baby Prep Classes: $100
    • 2 months of DHA meds: $54.65 
    • Shot at Walgreens for SCB: $19.70 
    • Food @ Hospital: $57.53
    • Hospital Photos: $44.16
    • Prescriptions: $70.70
  • Baby:
    •  $214.43 (6 Nursing bras, Changing pad cover, diapers, wipes, bottles, petroleum jelly, gauze pads, stuffed animal, activity mat, onsies/clothes, bottle supplies.)
  • Roxy:
    • Flea/Heart-worm meds: $126.92
    • New Leash $23.10 + $14.44
    • Kibble and treats: $39.86
  • Valentines Day: $116.66
  • Easter: $89.73
  • Gifts:
    • Squeeze Present: $50.36
    • Push Present: $113.95
    • Flower "Thank yous" for baby shower  $16.17
    • Birthdays: $226.95
  • Other:
    • Vending Machines and soda during baby classes: $17.32
    • New Keys for house, mailboxes and cars... plus key chains: $19.96
    • Office Organizing (File organizer, receipt holder, binder clips, pens, desk drawer containers): $25.05
    • Bar Soap, Batteries, Hygiene items, bed cover, toy hammock, silicone tray: $62.90
    • Soda Overages: $32.91
    • Tax Prep $61.98
    • CED lights for my moms house: $10.40
    • Car charger for pump, pony toy, and lego bag: $25.88
    • Fit Bit Covers and WiiU fit meter: $32.74
    • Wire hooks, Silicon muffin and ice cube trays: $25.63
    • WiiU Controler cable: $25.92
    • Home Depot (Fix changing table): $23.41
    • Church Cannery: $62.50
    • Walmart odds and ends: $161.72
    • Kitchen Items (Silicone baking cups, spreaders, muffin pan, ice cube trays).$55.38
    • Corner Shelves for Eli's Room $13.55
    • Radio Shack (parts to convert swing to wall power) $49.11
    • Toys for my husband; Lego sets, ponies, etc. $98.84
    • Road Runner store membership -- $24.99
    • New office chair, Camera and memory card, thermometer, and canned air. $287.16
    • Additional lights for the computer desk $118.96
    • Epic computer case of all computer cases. $204.24
    • Hospital Prep Items. $167.01
    • Hair Cut (SCB) $20.00
    • DVD: $8.62
    • Light Switch: $27.71
    • Photo Shoot Pictures: $150.00
    • Pens/Spatula: $3.08
    • Movie Tickets: $18.35
    • Shutterfly: $199.88
    • Video Games: $50.11
    • Canvas Pictures: $209.47
    • Screws: $4.52
    • Dietbet: $115.77

Monday, May 4, 2015

May Budget

As of May 1st, our little man is official on Kaiser. (We still haven't received a bill for our hospital stay yet... but we might not get one at all depending on how its code everything since my insurance pretty much covers everything and they haven't hit us with a bill and we have been back for multiple appointments since). 

This will be our first real monthly budget with the baby and our new take home pays (... well kind of). Since I have my disability money already, i'll be transferring it out bit by bit as the paydays come... but i'm estimating what my new paychecks will be with the benefit changes so they may be way off if I did the math wrong. 

My disability covers me from his birth (4/4) till the end of the month (5/30) since I get 8 weeks for a c-section... but with supplementing my vacation time and when pay periods end and a few other things we aren't really sure what everything is really going to look like and probably won't until the middle of June. We will still have the "daycare" money to draw on if need be, but for May we are going to try and just drop it into our Roth IRA savings to try and get us up to 15% for the year, especially since we didn't do any Roth contributions last year because of the baby preparations.
 
May Budget: 

Regular Spending:

  • Mortgage (P&I, Property taxes)    $792.01
  • Giving     $608
  • Fast Offering     $20.00 
  • Groceries: $331.99
  • Date Nights     $100.00  
  • Pocket Money for the month-     $80.00 ($40 each) 
  • Cell phone allowance     $60.00  
  • HOA     $295.00 
  • Utility Bills      $150.00 
  • Gasoline/Auto     $250.00  
  • Discretionary Spending     $100.00
  • Diapers and wipes: $118
  • SCB's Cell Phone: $30.00
Regular Savings:
  • Roxy Fund     $50.00
  • Prescriptions & Doctors visits     $50.00
  • Birthday savings     $50.00 
  • Insurance     $155.00
  • Christmas savings     $50.00 
  • Vacation Savings     $100.00 
  • Car Emergency Fund     $100.00 
  • Car Registration Fund     $25.00 
  • Daycare: $440.00 -- stick in retirement until we start actually paying daycare
  • Daycare: $440.00 -- stick in retirement until we start actually paying daycare
  • Clothes: $50.00
  • Retirement: $69.55