•Thursday, April 16, 2009
Well so far this year has been "so-so" financially and I need to adjust a few areas of how our money is being tracked to help us out of this "so-so" year we are having.
Let's begin with what will be getting paid off in the next 12 months:
1.) Truck $16,000 (Matt Bonus)
2.) Discover $3200 (Snowball money 5 months)
3.) Kim Fall School $1000 (Matt Bonus)
4.) 2009 Farm Payment $9,700 (Matt deployment money/bonus)
5.) Van $12,500 (partial Matt bonus/snowball money 6 months)
6.) Farm $5200 (taxes 2010)
7.) Investment money $4000 (taxes 2010)
8.) Kim Spring School $2000 (taxes 2010)
Approx. Total $52,000
WOW WOW WOW! I could type that a million times because a-lot-o money is being paid out this year and we just paid a chunk off from this past taxes to pay off our horse trailer and a few other items that I will not mention.......which came to a total of around $10,000.
Lets start at the top of this list and work our way down. My husband is set to receive a bonus this year due to various reasons with the military. We are SO BEYOND FORTUNATE to be "tentatively" getting $23,000 in August. This money will pay off his truck, pay for 1 semester of my college classes and pay down my van debt. We will then start using the truck payment for 5 months to pay down my van and any extra from paychecks. This should place the van being paid off March 15, 2010. We will then pay my spring semester of school, our farm payment that was due from a previous year and place some money back into one of our investments.
Now I can hear you saying, "Whoa whoa whoa, Kim, slow your roll you missed a few things!" "First what about the farm payment of $9700 and why do you think you will be getting $11,000 in taxes for 2010?" Well let me explain my dear friends and family. My husband is as said before active military and at times this requires him to serve our country while in another war zone country. The only perks that come from him being thousands of miles away in a war zone is the compensation you receive. You not only get his regular pay, but it is all tax free and we will receive additional money for him being gone. This all leads to a higher paycheck and a lower gross income at the end of the year. We will not be paying any taxes for 6-7 months of the year and this allows us a large tax return at the end of the year, just as we had this year. Not to mention all of the small extras that add up when he is away. I don't buy as much food, use as much gas, go out and spend money as much and etc. when he is away. Our typical amenities and money needed decrease greatly when he is gone!
With all of this being said we still have a few areas that we can improve. We desperately need to go fully to the envelope/cash system. We have a tendency to use our debit card more frequently than we would if we set limits with cash in an envelope. For example, we allot $200 for entertainment a month which will include any date nights, babysitter charges, eating out and etc. We have a tendency to go over this limit because we use our debit card and do not pay much attention to how much we have spent on these types of items throughout the month. By using cash and placing a set amount in the envelope once the envelope is empty that is it for the month. I know it will take a small amount of effort and many of you are saying, " I am not a child and I don't need to set limits!" This may be true but it is a weakness of ours and of many others. I am happy that we are able to recognize it and make the effort to correct it!
I will try to keep up with this primarily as we get to the end of the summer and really begin to pay things off!! I will also let you know how the envelope system is working as I continue!
HAPPY SAVVY SHOPPING!!!
Let's begin with what will be getting paid off in the next 12 months:
1.) Truck $16,000 (Matt Bonus)
2.) Discover $3200 (Snowball money 5 months)
3.) Kim Fall School $1000 (Matt Bonus)
4.) 2009 Farm Payment $9,700 (Matt deployment money/bonus)
5.) Van $12,500 (partial Matt bonus/snowball money 6 months)
6.) Farm $5200 (taxes 2010)
7.) Investment money $4000 (taxes 2010)
8.) Kim Spring School $2000 (taxes 2010)
Approx. Total $52,000
WOW WOW WOW! I could type that a million times because a-lot-o money is being paid out this year and we just paid a chunk off from this past taxes to pay off our horse trailer and a few other items that I will not mention.......which came to a total of around $10,000.
Lets start at the top of this list and work our way down. My husband is set to receive a bonus this year due to various reasons with the military. We are SO BEYOND FORTUNATE to be "tentatively" getting $23,000 in August. This money will pay off his truck, pay for 1 semester of my college classes and pay down my van debt. We will then start using the truck payment for 5 months to pay down my van and any extra from paychecks. This should place the van being paid off March 15, 2010. We will then pay my spring semester of school, our farm payment that was due from a previous year and place some money back into one of our investments.
Now I can hear you saying, "Whoa whoa whoa, Kim, slow your roll you missed a few things!" "First what about the farm payment of $9700 and why do you think you will be getting $11,000 in taxes for 2010?" Well let me explain my dear friends and family. My husband is as said before active military and at times this requires him to serve our country while in another war zone country. The only perks that come from him being thousands of miles away in a war zone is the compensation you receive. You not only get his regular pay, but it is all tax free and we will receive additional money for him being gone. This all leads to a higher paycheck and a lower gross income at the end of the year. We will not be paying any taxes for 6-7 months of the year and this allows us a large tax return at the end of the year, just as we had this year. Not to mention all of the small extras that add up when he is away. I don't buy as much food, use as much gas, go out and spend money as much and etc. when he is away. Our typical amenities and money needed decrease greatly when he is gone!
With all of this being said we still have a few areas that we can improve. We desperately need to go fully to the envelope/cash system. We have a tendency to use our debit card more frequently than we would if we set limits with cash in an envelope. For example, we allot $200 for entertainment a month which will include any date nights, babysitter charges, eating out and etc. We have a tendency to go over this limit because we use our debit card and do not pay much attention to how much we have spent on these types of items throughout the month. By using cash and placing a set amount in the envelope once the envelope is empty that is it for the month. I know it will take a small amount of effort and many of you are saying, " I am not a child and I don't need to set limits!" This may be true but it is a weakness of ours and of many others. I am happy that we are able to recognize it and make the effort to correct it!
I will try to keep up with this primarily as we get to the end of the summer and really begin to pay things off!! I will also let you know how the envelope system is working as I continue!
HAPPY SAVVY SHOPPING!!!
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