Frugality and Finance

So I am venturing into dangerous territory in this post, finance, budgeting a life! Well there will be no preaching, probably no maths and definitely no telling you what to do, so everyone can calm down. There may be a few tips and definitely links to people who know more than me, so read on…

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Our situation

My husband came home a couple of weeks ago, he had been thinking about our financial situation, which isn’t bad by a long shot, but isn’t where we pictured ourselves either, which is often the reason for reflection of this sort. We started rethinking our spending, trying to see if we can cut down on anything, which of course we could find very little, a few expenses here and there, hidden spending that we try to hide from ourselves, that sort of stuff.

Then I came across a blog. A fairly in you face blog! A blog that told me that we are spending way too much even if we think we are being budget conscious. A blog that told me to buy a bike for goodness sake! A blog that grabbed my attention and kept me reading, giving me insights and most importantly, hope that our situation is not only very manageable, but we could retire, if we wanted within a time period which at first glance seems impossible, but with further study, completely achievable if we wanted to try. We wanted to try! Luckily my husband and I are both on the same page, and weirdly even though we are still in the same situation we were two weeks ago the future feels good!

So here’s where we are at the moment:

  1. we have started pulling the budget/spending apart, looking closely at where our money goes.
  2. started a messy sort of plan for income generating savings.
  3. thinking about getting a credit card ( don’t ask not really sure how this works yet??) p.s. we only have a debit card which was much safer for us, so no credit card debt, currently ๐Ÿ˜›
  4. lots of reading, talking and thinking
  5. I looked at bus timetables. My excuse for not using bikes: three children, Sydney traffic, okay not a good one but I’m sticking with it. My excuse for not using the bus, um, I’ll get back to you on that one :/
  6. Stopping superfluous spending, this is not as hard as it sounds, but it is tricky. You don’t realise that buying a bottle of water or a cup of coffee is not only unnecessary but can add up. I know I can hear the groans now, “don’t you touch my daily coffee!” . But for us the sums are helping to change our minds.

See example below.

So my daughter and I were talking about this in the car, me trying to impress on her the importance of our new step toward financial security, her, trying to impress on me why she needed blonde streaks in her hair @ $130+ and a tongue piercing, (who cares what this costs, what the heck)?? So I gave her a little demonstration, sorry about the maths:

If we all (five of us in the family), bought one bottle of water a day @ $3.00/btl

  1. that is $15 a day
  2. $105 a week
  3. $5460 a year
  4. and a staggering $54,600 after 10 years.

Now we are already in the habit of taking water from home, but that is not the point, what seems like a small amount initially can become a huge amount over time. Now this impressed her no end. She’s on board, the middle girl is frugal by nature, and now I just have to convince my little man that a new computer game is not in his near future, instead walking, climbing and fishing are, fingers crossed.

I will jot down our journey now and then and once our journey is complete, we will celebrate with poetry for everyone! And one final tip, use the calculation above and replace ‘water’and ‘$3.00’ with your own daily spend, whether it be lunch, coffee, a magazine on the way to work, whatever, it can be surprising and a little nauseating, hehe.

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All ideas came from :

www.mrmoneymustache.com/ – Early retirement through Badassity

read with an open mind people, you might not agree with anything on there, but for us it is exactly what we need to hear. If this post is of no interest to you, then don’t click on the above website, just saying ๐Ÿ™‚

All work and savings is ours!

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