money challenge 2009

So next year is going to be quite a lean year for us. the family is planning on returning to the Cook Islands for my FIL's 60th so we have figured out we need to save approximately $6K to do that - by December next year. So we are cutting back significantly. We worked out it is actually a huge mindset change for us. I see $7 in my bank and think "I have seven more dollars to spend" and that needs to change.

We are lucky in that we ALWAYS pay our bills, we have paid off a significant amount of debt so it's not like we aren't doing well, but we certinaly need to change in order to save thisd money.

So here are the things we are doing:
debt consolidation loan (will save us about $2000 in interest and bank fees - and get us completely out of debt in 2 years)
keeping a money journal - basically every cent that is spent we will have to justify to each other - not saying we can't buy stuff, just hoping it will be an incentive NOT to spend
A picture of Raro cellotaped to our cash cards
Go through our shopping list and see what we can make ourselves (e.g muesli - home made is great and doesn't take that long)
cancel sky - the only ones who watch it are the kids and we have a ton of dvds
a garage sale - let other people buy my crap

It's a bit overwhelming and I know it will be hard, but will be good practice for one day when we have saved enough to buy a house (when I'm about 78)

we are doing this too! The time has come to be smarter and wiser and not spend because we have a few dollars but actually save it for anything we may need later.

We are thinking of getting rid of sky too it is so expensive!
Also a money book to write down EVERYTHING we buy.
Good luck to everyone trying to save and get ahead.

Yup we'll be doing the same now that I work part time only. It's going to be a challenge but should be worth it.

Yep I started on the big savings plan when we found out I was pg as we will be going down to no income.

First of all I worked out all our expenses for the month and then multiplied it by the number of months I wont be working.

Ive got a spreadsheet that has all the future pays and the amounts I have allocated to each item ..

(expenses, maternity leave savings, isabelle's savings account)

Then each payday I sit down and put all the money into the delegated bank account.

Its quite fun to move all my millions around and Im always chuffed when Ive overbudged .. like I might not need as much gas in the fortnight as usual and that money gets to go into the savings pile.

Watch out .. it gets addictive!

Oh and I could have been way more ruthless .. but I "need" sky

We won't be getting rid of sky either but we might try to alter our package so we're not paying for channels we never watch.

oooh, I like the idea of a money journal!

I have a spreadsheet with future pays etc too.

All bills are "paid" fortnightly. I put away a set amount for every bill into a higher interest savings account. I even account for doctors bills, birthday/chrissy presents, vet bills... everything! The fortnightly amount is more than we would actually need to pay so we always have enough.

We have been a bit slack at the moment though and have bought some things for the house that have come out of our savings instead of the reno fund.. will need to pay that back before bubs comes along.

we are needing to do the same thing this year.

I am very very sure we can become nearly debt-free by the end of 2009, or possibly mid-way if we knuckle down. we get very complacent in the middle of the year when money is good and near the end we think "oh crap".

Our bills are always paid, we have a no-fee account with all our bills set up to go out by auto payment fortnightly, a standard amount that usually more then covers each, and we have our budget set up so we know what our total expenditure each fornight will be taking into account money we need to save for the few monthly bills that we have. We also try to pay things like the wheely bin/car rego etc in a years lump sum so we don't have to worry as much about them popping up when we can't afford them.

We have a list of things we NEED this year, and the rest is going towards bills.

*Me to get my licence
*A new fridge as the seals on our current one are going kaput and it's no longer big enough for a family of 4 that like their fruit and veges. i know as part of our staff discount plan through the hospital that there are a few places around palmy that i can get pretty good deals
*A new bed for paris as hers is my old double bed from when i lived at home, and before then it was my older sisters, so is at least 15 yrs old - not great for her asthma i bet!

We are starting to pay off the card(s) once mike is back at study, starting with the one with the highest interest rate and going from there. I want to be able to save and get a house by the time he's been in the workforce a year or so, so we have 2 study years left to get in a good place to do that and my money should increase with another year of work under my belt too.

Edited by mum2paris

We consolidated our credit card and hp debt onto the mortgage. cheapest interest rate, and sits as a seperate loan in our account. Its good that there is only 1 amount to be paid.

Our money goals are to clear that debt so we can start our family.

With interest rates coming down, it will be good to reduce the mortgage payments.

I got made redundant 3 months ago, been in a new job for 1 month, it was quite scary being without two full incomes.

I always feel guilty when I get my free coffee, cause it usually means I've spent $40 to get there.

Same here Fleur - I just added up what I spend on coffees in a month, and it's shocking!!! It is my "treat" to myself, but I may just transfer that money to savings instead of getting a coffee - it will really add up.

I think I'm going to try and get MS Money on my home pc. We've kind of muddled along through 2008, what with buying the house, adjusting to paying a mortgage and rates etc as well as saving for the wedding, but we really need to knuckle down instead. We still spend too much money on just junk, and we want to start the renovations next year after the wedding.

We don't have debt as such - DF's credit card with a $500 limit and his car loan to his grandma, and that's it. We just have a lot of outgoings it seems!!!

ETA: There's also the amount of time I will be off work if we finally get a sticky BFP....I need to add that into the equation

Edited by minik8e