In the personal finance world, "side hustle" is a major buzz word... and I don't have one.
I've mentioned many times before that both The Husband and I are college graduates and have good paying jobs. I've also talked about the fact that we are in debt. Our debt is solely the cause of living beyond our means. Our debt has nothing to do with job loss, financial hardship, difficult circumstances, student loans, or medical bills... just plain stupidity. Most people in the PF community or who are debt bloggers talk all the time about their side hustle or what they are doing to make extra money, and honestly, I'm doing exactly nothing.
I choose not to have a side hustle. Although it would enable us to get out of debt so much faster, I'm not willing to give up the time with my family. In fact, I don't have the time. For many years, 12 to be exact, I worked at a shoe store. It was a job I loved. When I began teaching, I even kept my retail job for the first couple of years. I would only work at the shoe store one night a week and a weekend day here or there. Once the kids got older I had to quit my second job to become a full time chauffeur to my kids. This is also a way we are keeping ourselves in debt longer: we allow are kids to play sports and do extracurricular activities.
Having a side hustle, while definitely financially worthwhile, isn't worth the time away from my family or the strain it would put on my family. And while many hustles get to the point of where they are passive, they usually take massive work to reach that point, work I'm just not willing to put in.
I read all these blogs where the author has quit their day job to become a full-time freelancer, but for a long time they were working 40 hours a week at their day job and another 25+ hours per week developing their brand or padding their portfolio. I just don't have time for that.
I could get a second job but with soccer two nights a week and dance three nights a week, plus comps and games on the weekend, my free time is very limited and I don't want to give up my free time to a side hustle. As much as I want to get out of debt, I don't want it badly enough; that's why we are still in debt.
I admire people who give up everything to get out of debt. I admire people who have a garage sale every other month, who scour thrift stores for clothes, who work two jobs, who turn down invitations because they can't afford something, who clip coupons. But mostly, I admire people who have created a side hustle that works for them and works for their lifestyle. I'm just not that person.
Side hustles are by far the best tool to help you get out of debt faster. As long as you are able to meet all your financial obligations on your day job salary, any extra money you make can be thrown 100% at debt. That works out to be an awesome return on your investment. But do I want to invest my time just to gain financial freedom a couple months earlier? To me it's not worth it so for now I have no hustle.
Monday, September 19, 2016
Friday, September 16, 2016
Debt Totals
Okay, here goes… I’m going to let the world (even though nobody reads this) in on my debt totals.
Each month, I’m going to do a debt update, obviously starting with September. I will have to decide if I will do
this at the beginning of the month, the end of the month, the middle of the month, or just when I feel like it
each month, but it’s going to happen!
this at the beginning of the month, the end of the month, the middle of the month, or just when I feel like it
each month, but it’s going to happen!
I have been hemming and hawing on putting my actual debt on the blog, but only because I’m ashamed
and embarrassed. Putting it out here, on the world wide web, makes it real. (I know it’s real, but now I can’t
take it back. It will always be here.) I am embarrassed that we have debt! No one really knows we have credit
card debt and one of my biggest fears is that someone I know will find out. I really don’t want that to happen!
and embarrassed. Putting it out here, on the world wide web, makes it real. (I know it’s real, but now I can’t
take it back. It will always be here.) I am embarrassed that we have debt! No one really knows we have credit
card debt and one of my biggest fears is that someone I know will find out. I really don’t want that to happen!
At least for right now, I’m only going to include my credit card debt and my car loan. I’m not at the point where
I’mre ady to put my mortgage on my debt totals. Baby steps. I’m also not going to include the credit card we
pay off monthly. Because it’s paid off monthly, we haven’t carried a balance over on that credit card in going
on 5 years so we don’t consider it “debt”.
I’mre ady to put my mortgage on my debt totals. Baby steps. I’m also not going to include the credit card we
pay off monthly. Because it’s paid off monthly, we haven’t carried a balance over on that credit card in going
on 5 years so we don’t consider it “debt”.
Here are the numbers:
Credit Card 1: $5709.92 at 9.24% interest ~ the current minimum payment is $177
Car Loan 1: $14470.25 at 0% interest ~ payment = $345
_______________________
$20180.17 Total
That’s depressing. :(
Knowing I have debt is one thing. Actually seeing the numbers in black and white is quite another. Seeing the
number, $20000+ is very daunting. I’ve known I had debt, but I never sat down and actually added those two
numbers up, but they hurt!
number, $20000+ is very daunting. I’ve known I had debt, but I never sat down and actually added those two
numbers up, but they hurt!
Right now, because of the kitchen remodel, paying down our debt at any significant rate is hard, so I just keep
plodding along. On our credit card, we are paying more than the minimum, but not by much. A few months
ago, we were paying between $600-700 a month; that number has dropped to only about $300 a month now.
Currently, any extra money we have is going towards paying off the credit card we pay off monthly or towards
paying for something for the kitchen remodel… needless to say, progress has been S.L.O.W.
plodding along. On our credit card, we are paying more than the minimum, but not by much. A few months
ago, we were paying between $600-700 a month; that number has dropped to only about $300 a month now.
Currently, any extra money we have is going towards paying off the credit card we pay off monthly or towards
paying for something for the kitchen remodel… needless to say, progress has been S.L.O.W.
But I guess the takeaway here is that there has been progress. I’m already looking ahead to my next month’s
debt update because I know I will be under the $20000 mark – so there’s my first psychological boost!
debt update because I know I will be under the $20000 mark – so there’s my first psychological boost!
The worst thing about our debt, particularly our credit card debt, is that if we would curb our spending for just a
short period of time, we could be credit card debt free. But we don’t. The balance on Credit Card 1 is very close
to the balance I pay off monthly on our other credit card, yet we still have a balance. For just one month, if we
could truly have a no-spend month, we could be credit card debt free, but we aren’t. I guess that’s because
we aren’t gazelles. I say we want to be debt free, but I don’t pursue that freedom with intensity. We still buy
stuff and go places so we are still in debt.
short period of time, we could be credit card debt free. But we don’t. The balance on Credit Card 1 is very close
to the balance I pay off monthly on our other credit card, yet we still have a balance. For just one month, if we
could truly have a no-spend month, we could be credit card debt free, but we aren’t. I guess that’s because
we aren’t gazelles. I say we want to be debt free, but I don’t pursue that freedom with intensity. We still buy
stuff and go places so we are still in debt.
I’m trying to keep my head up and remember that our total debt load decreases every month, if only by a little.
I try to remember that we haven’t added to our debt total in 9 months and that we are better off now than when
we started 2016. I try to remember that we choose to not let debt dictate our life or to punish our kids for our
poor financial habits/choices. That’s it in a nutshell, I’m trying.
I try to remember that we haven’t added to our debt total in 9 months and that we are better off now than when
we started 2016. I try to remember that we choose to not let debt dictate our life or to punish our kids for our
poor financial habits/choices. That’s it in a nutshell, I’m trying.
Someday, I might start doing net worth updates, too. We do have a home, in which we have some equity. We
do have 3 fully paid for cars. We do have retirement savings. We do have some (not much) cash money in the
bank. It’s not all bad.
do have 3 fully paid for cars. We do have retirement savings. We do have some (not much) cash money in the
bank. It’s not all bad.
Thursday, September 15, 2016
No-spend September Update 3
September 15, 2016
Yesterday I went to Costco and spent about $45, but that was including cups, plates, and spoons; because of the kitchen remodel, I’m not counting them in my no-spend September budget. Of that $45, however, I also bought grapes and strawberries to the tune of $13 leaving us with right about $200 to spend for the rest of the month.
This No-spend month is killing us! We have spent tons of money at Home Depot so far! And tomorrow night is The Husband’s 20 year high school, which we are attending. First we will attend our high school’s Homecoming game (for which we will have to pay an entrance fee), then we will go to a local bar for the reunion part. I’m anticipating tomorrow night costing us around $100 for everything: entrance, food, and drinks.
Our credit card bill (that we pay off monthly) has been around $5000 every month for the last six months… and it’s killing me! We are able to pay it off monthly, but we are not able to get ahead. Our current billing cycle ends today and the balance is at $4500. I was hoping we could use No-spend September to get ahead but unless we are able to really curtail our spending for the last half of the month, that’s not going to happen.
Our gas budget is doing well for the month. I’m hoping to have a few hundred dollars left over at the end of the month to help us pay our monstrous credit card bill that we are currently accruing! We’ll see. Right now, any “extra” money we have is going to pay our credit card (that we pay off monthly) or towards our kitchen and not towards our debt total. We are still deceasing our debt… some, but not at the pace I want.
Saturday, September 10, 2016
No-spend September Update 2
9/10
Well, we are only a third of the way into the month
and I have already spent about half of my grocery budget… EEEEK!
Yesterday I went to both Costco and Winco. I had already spent $46.50 at the Farmer’s
Market this past weekend, leaving $353.50. At Costco I spent $116.83, all on
food, leaving $236.67. Next, I went to Winco and spent another $22.79, leaving
me with just $213.88 for the rest of the month!
At Costco, I only bought food, however, for half of my shopping trip I
had some boots in my cart I was going to buy for The Girl, but then it occurred
to me that it was No-spend September so I took them out of my cart and
continued on my merry way. At Costco, I bought a case of canned green beans (12
cans), 2 packages of bread (2 loaves each), 8 gallons of milk, 8 pounds of
butter, 2 boxes of yogurt, a bag of clementine oranges, baby-bel cheese,
Cheeze-Its, trail mix, Pirates Booty, and Pub Mix. Other than perishables, we
shouldn’t have to go grocery shopping for the next two weeks or so, so I hope
our budget makes it!
I only had to buy a few things at Winco. I bought 4 boxes of tea, 2 for
school and 2 for home, hamburger buns, Ritz crackers, bananas, and 4 boxes of
Lil’ Debbie Nutty Bars.
We were running low on snacks that could be used for school lunches so
that’s where a lot of the money went.
Snacks aren’t cheap. Because
Costco now takes Visa, I charged our purchase there for points and then took
the money and put it in a jar to use to pay off the credit card bill when it
comes due. Winco only accepts cash or
debit so I paid cash there.
Yesterday I also had to give The Boy $15 out of our house “petty cash”
to pay for a Leadership shirt for school. He is in Leadership and expected to
participate in all of the activities so we needed to buy the shirt.
Unfortunately, our school budget envelope is currently depleted so I had to
take that money from somewhere else. (I
also have to pay $60 for a field trip for The Boy, $40 for him, $20 for a parent
chaperone, and I’m not quite sure where that money is going to come from.)
I’m a little nervous… only $213 to last over 3 weeks. That leaves me
with about $71 per week. I need to get
to Walmart and buy The Girl conditioner. She is all out. She has 3 bottles of
shampoo yet so at one point I must have bought 4 shampoos instead of 2 and 2
like I had intended. Normally, this would come out of our essentials envelope,
but in September we pay for toiletries with our grocery budget. Other than
that, I can’t think of too much more I would need to buy that isn’t food
related. I should be able to stretch
$71… wish me luck.
Thursday, September 8, 2016
No-spend September Update
This has already been a very challenging no-spend month for us.
First of all, we did buy our kids' school pictures, which we choose to do every year even though many people think they are a waste of money. In the days of film cameras many people didn't have their pictures taken and printed often. Many people would argue that today, in the days of digital cameras, that's not the case. I would argue, however, that it's the opposite. Because of digital cameras, a lot of people take pictures, but very few print them out. Anyway, long story short, this cost us $93. Of that $93, we had $50 in cash in our school budget envelope and we will just pay the rest.
On Saturday, we went to our local Farmer's Market and spent $41.50 of our $400 food budget for the month. At the Farmer's Market, we allowed each kid to pick out a small treat to eat. That is included in the $41.50.The Boy picked out a piece of alligator jerky and The Girl chose some homemade salted caramel marshmallows. Soon we need to make a trip to Costco to get milk, bread, and some snacks.
On Saturday we had to make multiple trips "out of town", about 30 minutes away and so got gas in my car beforehand. We put $37 of gas into my car and that is also included in our gas budget for the month.
The above are all normal spending during our No-spend September, however with our kitchen situation, we have already had to eat out twice this month... That makes me sad. The first time was after church Saturday evening. We had to go to my sister's and brother-in-law's house to pick up some to more kitchen cabinets that he has completed. By the time we would have been done, we wouldn't have gotten home until about 8:00 pm and since we had planned to grill that night, we wouldn't have been able to eat until 8:30. We did choose a cheap option and ate at Taco Bell. The next night we were invited to a friend's house to barbecue, but we opted to stay home and spend more time working on the kitchen. We dropped The Kids off at our friend's house and we went over later. Cooking for two is no fun so we opted to grab Taco Bell on the way to our friend's house later that night.
These aren't excuses, just explanations. I do think this is going to be the most challenging No-spend September we have ever had. Having no kitchen definitely puts a cramp in our style and takes the importance of planning to a whole new level.
I'm hoping that going forward, we will do a better job of planning and not eating out. We have plenty of food and for the remaining 3 weeks of the month I want to make sure that we are honoring our goals for our no-spend month.
Off hand, I can't think of anymore unplanned spending we will have for the month and I hope we are able to save money to help pay for the kitchen and to make sure we aren't spending any money unnecessarily.
First of all, we did buy our kids' school pictures, which we choose to do every year even though many people think they are a waste of money. In the days of film cameras many people didn't have their pictures taken and printed often. Many people would argue that today, in the days of digital cameras, that's not the case. I would argue, however, that it's the opposite. Because of digital cameras, a lot of people take pictures, but very few print them out. Anyway, long story short, this cost us $93. Of that $93, we had $50 in cash in our school budget envelope and we will just pay the rest.
On Saturday, we went to our local Farmer's Market and spent $41.50 of our $400 food budget for the month. At the Farmer's Market, we allowed each kid to pick out a small treat to eat. That is included in the $41.50.The Boy picked out a piece of alligator jerky and The Girl chose some homemade salted caramel marshmallows. Soon we need to make a trip to Costco to get milk, bread, and some snacks.
On Saturday we had to make multiple trips "out of town", about 30 minutes away and so got gas in my car beforehand. We put $37 of gas into my car and that is also included in our gas budget for the month.
The above are all normal spending during our No-spend September, however with our kitchen situation, we have already had to eat out twice this month... That makes me sad. The first time was after church Saturday evening. We had to go to my sister's and brother-in-law's house to pick up some to more kitchen cabinets that he has completed. By the time we would have been done, we wouldn't have gotten home until about 8:00 pm and since we had planned to grill that night, we wouldn't have been able to eat until 8:30. We did choose a cheap option and ate at Taco Bell. The next night we were invited to a friend's house to barbecue, but we opted to stay home and spend more time working on the kitchen. We dropped The Kids off at our friend's house and we went over later. Cooking for two is no fun so we opted to grab Taco Bell on the way to our friend's house later that night.
These aren't excuses, just explanations. I do think this is going to be the most challenging No-spend September we have ever had. Having no kitchen definitely puts a cramp in our style and takes the importance of planning to a whole new level.
I'm hoping that going forward, we will do a better job of planning and not eating out. We have plenty of food and for the remaining 3 weeks of the month I want to make sure that we are honoring our goals for our no-spend month.
Off hand, I can't think of anymore unplanned spending we will have for the month and I hope we are able to save money to help pay for the kitchen and to make sure we aren't spending any money unnecessarily.
Monday, September 5, 2016
Living Paycheck to Paycheck Sucks
We live paycheck to paycheck... and it sucks!
We are both college graduates who make good salaries but we can't seem to get ahead. No matter what we do, it feels like we can't catch a break. Just when we think we are going to get one step ahead, something happens to knock us two steps back. I know we dug this hole of debt all by ourselves, but sometimes it feels like the universe wants to make sure we stay there.
Living paycheck to paycheck is the worst feeling. I never know when the next disaster is going to hit. We have saved up a $1000 emergency fund like Dave Ramsey suggests, but I'm always afraid it's not going to go far enough. If the washer and dryer both go out, that won't cover it. If we need a major car repair, $1000 isn't going to be enough. Money is a constant worry in the back of my mind. What if? What if? What if?
We are ever so slowly digging ourselves out of the mess we created, but sometimes we make decisions that keep us in debt longer, too. For instance, we are remodeling our kitchen... completely - new floors, cabinets, counters, walls, electrical, appliances, you name it, we're doing it. And we aren't going further into debt to do it. On the flip side, though, all the money that could have gone to helping us pay off our debt faster, is going to help us cash-flow our kitchen.
Every other Friday, which is how The Husband gets paid, I sit down and figure out what has to be paid within the next two weeks and pay it. Ideally, I would like to only have to pay bills once a month, go to the bank once a month, and not have to worry about how this bill being due coincides with this big bill and we don't have enough money to pay for both of them. Although I haven't talked much about my goals yet, (I do plan on getting to that eventually), getting a month ahead with our finances is one of my main goals. I want to break the paycheck to paycheck cycle and start living on last month's income.
We aren't there yet, in fact, we aren't even close to there yet, but we are working on getting our financial house in order so that we can get there. More than anything, I want to get rid of the stress that living paycheck to paycheck brings. I want to stop spending tomorrow's dollars on today's things; that is no way to live. Living paycheck to paycheck makes it very difficult to meet any financial goals, let alone, audacious ones. How can I get out of debt, payoff my mortgage, save for a car, or do anything if I have no idea how much money is going to be in my bank account next week.
The idea of living on last month's income is so appealing to me because then I know exactly how much money I have to spend that month and I'm not banking on money that may or may not show up on payday. As it is, we hope we are going to get as much money on payday as we think we are. If that doesn't happen, then we are in real trouble. If The Husband's job goofs up and we don't get paid, because we live paycheck to paycheck, neither will our bills. If my work has a billing error and my paycheck doesn't go through, because we live paycheck to paycheck, my mortgage wouldn't get paid.
Those are sobering and scary thoughts, and more support for getting out of the paycheck to paycheck rat wheel!
We are ever so slowly digging ourselves out of the mess we created, but sometimes we make decisions that keep us in debt longer, too. For instance, we are remodeling our kitchen... completely - new floors, cabinets, counters, walls, electrical, appliances, you name it, we're doing it. And we aren't going further into debt to do it. On the flip side, though, all the money that could have gone to helping us pay off our debt faster, is going to help us cash-flow our kitchen.
Every other Friday, which is how The Husband gets paid, I sit down and figure out what has to be paid within the next two weeks and pay it. Ideally, I would like to only have to pay bills once a month, go to the bank once a month, and not have to worry about how this bill being due coincides with this big bill and we don't have enough money to pay for both of them. Although I haven't talked much about my goals yet, (I do plan on getting to that eventually), getting a month ahead with our finances is one of my main goals. I want to break the paycheck to paycheck cycle and start living on last month's income.
We aren't there yet, in fact, we aren't even close to there yet, but we are working on getting our financial house in order so that we can get there. More than anything, I want to get rid of the stress that living paycheck to paycheck brings. I want to stop spending tomorrow's dollars on today's things; that is no way to live. Living paycheck to paycheck makes it very difficult to meet any financial goals, let alone, audacious ones. How can I get out of debt, payoff my mortgage, save for a car, or do anything if I have no idea how much money is going to be in my bank account next week.
The idea of living on last month's income is so appealing to me because then I know exactly how much money I have to spend that month and I'm not banking on money that may or may not show up on payday. As it is, we hope we are going to get as much money on payday as we think we are. If that doesn't happen, then we are in real trouble. If The Husband's job goofs up and we don't get paid, because we live paycheck to paycheck, neither will our bills. If my work has a billing error and my paycheck doesn't go through, because we live paycheck to paycheck, my mortgage wouldn't get paid.
Those are sobering and scary thoughts, and more support for getting out of the paycheck to paycheck rat wheel!
Thursday, September 1, 2016
No-spend-September
Starting today, is our family's fourth annual No-spend-September.
Many years ago, I was reading a blog and read about this concept of having a spending hiatus for an entire month. With a little coaxing and cajoling, I was able to get my family on board too and now we are in our fourth year.
We chose September for a couple of reasons. Due to my son's soccer schedule, we are home most of the month because he has practice during the week and games every weekend, school is newly back in session and summer credit card bills are coming due, and we don't have any family birthdays or commitments we need to meet during September.
No-spend-September is a family effort, even if sometimes The Kids wish it wasn't; for the month of September, we halt all unnecessary spending and try to keep our gas and grocery bill to a minimum. During this month, we don't go out to Starbucks or out to eat unless we have gift cards. We don't buy any lunches, and this includes the kids who buy lunch once a week at school. We don't get haircuts or manicures or pedicures. We don't get massages. We don't go clothes shopping, or shopping at all really, unless it's for food.
The goal of No-spend-September is two-fold: to make us more mindful and conscious of our spending and to save money. (For the last couple years, there hasn't been much money saving going on, but it has helped us to cash-flow our home renovations.)
We have some ground rules that we follow, but all of our rules have exceptions. We want No-spend-September to work with our lifestyle, not against it, because it's a tradition we want to continue. Every year during September I choose to still buy The Kids school pictures. To us, that's non-negotiable even if it is to other people. We also continue to buy gifts if it's necessary. We also pay for any school fees and kids activities fees that pop up during this time.
During the month, we try to find free activities we can do with The Kids; things like hiking, going to the park, or going to the library. We also save any gift cards we get throughout the year to use during September. We currently have Red Robin, Baskin Robbins, and movie theater cards.
Unfortunately No-spend-September does not mean we spend NO money throughout the month. We still pay all of our bills: mortgage, utilities, car payment, credit card payments, cel phone, cable, etc. We also still need to drive to work and to eat. The idea of No-spend-September is that we don't buy any extras.
Our normal grocery budget is $500 a month, for September we try to scale it back just a little and spend no more than $400. We also try to eat what we have in our freezer, fridge, and pantry. Some years we do better than others.
Our normal gas budget is $600 a month. Even in September this remains the same because we still have to do most of the same driving: to and from work for both of us, the grocery store, to and from The Kids school, and to and from all of their various activities.
Essentially, we just try to spend less and save more. We don't stock up before the month begins or go crazy shopping once the month is over. It's just one month of mindful spending and purchasing.
As the month progresses, I will write updates about how much money we've spent and what we've spent it on. Wish us luck!
Many years ago, I was reading a blog and read about this concept of having a spending hiatus for an entire month. With a little coaxing and cajoling, I was able to get my family on board too and now we are in our fourth year.
We chose September for a couple of reasons. Due to my son's soccer schedule, we are home most of the month because he has practice during the week and games every weekend, school is newly back in session and summer credit card bills are coming due, and we don't have any family birthdays or commitments we need to meet during September.
No-spend-September is a family effort, even if sometimes The Kids wish it wasn't; for the month of September, we halt all unnecessary spending and try to keep our gas and grocery bill to a minimum. During this month, we don't go out to Starbucks or out to eat unless we have gift cards. We don't buy any lunches, and this includes the kids who buy lunch once a week at school. We don't get haircuts or manicures or pedicures. We don't get massages. We don't go clothes shopping, or shopping at all really, unless it's for food.
The goal of No-spend-September is two-fold: to make us more mindful and conscious of our spending and to save money. (For the last couple years, there hasn't been much money saving going on, but it has helped us to cash-flow our home renovations.)
We have some ground rules that we follow, but all of our rules have exceptions. We want No-spend-September to work with our lifestyle, not against it, because it's a tradition we want to continue. Every year during September I choose to still buy The Kids school pictures. To us, that's non-negotiable even if it is to other people. We also continue to buy gifts if it's necessary. We also pay for any school fees and kids activities fees that pop up during this time.
During the month, we try to find free activities we can do with The Kids; things like hiking, going to the park, or going to the library. We also save any gift cards we get throughout the year to use during September. We currently have Red Robin, Baskin Robbins, and movie theater cards.
Unfortunately No-spend-September does not mean we spend NO money throughout the month. We still pay all of our bills: mortgage, utilities, car payment, credit card payments, cel phone, cable, etc. We also still need to drive to work and to eat. The idea of No-spend-September is that we don't buy any extras.
Our normal grocery budget is $500 a month, for September we try to scale it back just a little and spend no more than $400. We also try to eat what we have in our freezer, fridge, and pantry. Some years we do better than others.
Our normal gas budget is $600 a month. Even in September this remains the same because we still have to do most of the same driving: to and from work for both of us, the grocery store, to and from The Kids school, and to and from all of their various activities.
Essentially, we just try to spend less and save more. We don't stock up before the month begins or go crazy shopping once the month is over. It's just one month of mindful spending and purchasing.
As the month progresses, I will write updates about how much money we've spent and what we've spent it on. Wish us luck!
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