How to develop your PLAN

[Russ H]

rcardin-

You mean you don't know what the interest rates charged on your cards was?

It always makes sense to pay off the high interest rate cards quicker. But I'm curious if you actually did a list of each card, w/interest rate for each, and how much was on each card?

-Russ H.

 

[Russ H]

Good stuff, guys.

Dave- you really will notice some surprising things if you track each penny. I don't expect you to do it until it make sense for you, though. I put it off for *years* b/c I thought I had the "gist" of things with my standard expense tracking and accounting.

I didn't.

But anyone that does this (tracks expenses to the penny for a month) has to go into it with an open attitude-- not a "alright, I gotta do this . . .", but a "hey, this is a pain, but it's a new experience, and I'm going to learn something about myself" kinda feeling.

Hoping that makes sense. Sounds like you've got some big changes coming up soon-- very exciting!

-Russ H.

 

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[yveskleinsky]

Like Russ said, it's really easy to brush off an exercise, (especially this one) when you get the jist of it. I thought the same way- I mean, the point seems to be a latte factor kinda thing (on the surface). Track your expense, cut out lattes. WRONG! What the exercise does it is wakes you up. You may even get what I'm saying now and still think you've learned the lesson- you haven't. Write it all down. Wake yourself up financially. ...I can't wait to read your lessons learned!

 

[randallg99]

I would grab my baby, wife and dog. (not necessarily in that order, heh)

everything else in this world is truly dispensible and replacable.

 

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[Sparky]

A good thing happened to me because of this exercise!

In the past, when I didn't know exactly where my money went, I called it 'Lost money' in my accounting of my expenses. But since I've become more diligent and doing it everyday, I've on occasion 'Found Money'!:banana::banana:

Mind you, I don't know where it came from, but I know its money I didnt have before - maybe a cashier gave me one penny too much change or (as on one occasion) I picked up a dime coin. Its good to start seeing money flowing my way because of being consequential/responsible with it.:fastlane:

Sparky

 

[CarrieW]

Who am I?

a mom-
a critical thinker
a debater
a planner,organizer
a procrastinator
a thinker
strong willed
a helper



wanting is better then having

any info on financial freedom... books ect.
why---- wasnt in line with what i wanted to do or was too difficult to accomplish-or put on the back burner untill a later time.
just about every infomercial excercise gadget that looks like I can do.
why didnt i like/use them--Most anything I try ends up making my back hurt worse~


what do I really want?


Id love to do whatever I want whenever I choose
exploring new ideas and places
to travel
to learn
to read
to solely provide for my family
to visit family and friends
going out to eat a nice meal with dh and kids
to help others
to entertain
to be skinny again!


fun stuff

going for a drive
going for a walk
going out to eat
reading
being online reading chatting ect
take the kids kite flying
go carts
watch movies
cook
go to the beach
site seeing
learning something new
hanging out with friends
studying forex(yes I do SOO enjoy it!!!)


What do I need to survive?

just surviving

shelter an efficency would do for the 4 of us (1 room to live in, somewhere to cook, a
bathroom)
a car (just something that runs and moves lol)
food
water
electric
meds
4 outfits (for each fam mem)

survive in partial comfort
2 bdrm apt
car
more food
drinks other then water
cell phone
ele
meds
2-4wks of clothing
my cat
kids rabbit


what would I need to grab in a fire?

my purse! cell phone keys(usually in the purse lol)

what I would want to grab!

laptop, important papers, pictures, clothes and my kids
toys.

expenses--havent done the tracking this is my budget (we can spend anywhere from 0-200bucks in a day.usually on needed/budgeted stuff)

rent 850
ele 100
cell 100
cab/int 70
food 400
h2o 40
cins 30
gas 120
cigs 200
misc 300
2310-865=(1345)inc ((1400)) +55a mnth


Have to move(and scale down)?

repl essential
2 boxes of toys for each child. $1000 Y
our clothes 5000 Y
washer n dryer 800 N
movies/dvds 5000estN
1 tv 100 N
1 dvd/vcr 100 N
laptop 500 N
3 desk pc 2000 N
lr set 1500 Y
kids beds/dressers 800 Y
our bedroom set 1000 Y
our pets 6+fish priceless N
my books 400 N
kids books(scaled down) 2000 N

 

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[Poudda]

Week 3

Tues Jan 29
Groceries 18.08

Wed Jan 30
0.00

Thurs Jan 31
Bank Fees 16.73

Fri Feb 1
Mortgage 1114.68
Coffee 9.47

Sat Feb 2
Wood Glue 5.24
Wire 9.15

Sunday Feb 3
0.00

Monday Feb 4
Groceries 122.81
Daycare 396.00
Spouse W/D 120.00

Total 1,812.16
Not including Mortgage = 697.48



Seems like this thread is slowing down!!!!


PS: Thanks for the Rep Russ!

 

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[Russ H]

Wonder what the next exercise is?

Next is an in-depth analysis of what people discovered when they inventoried.

So to move forward, we need more of you out there in fastlane land to inventory!

So far, it's me and Poudda.

Anyone else?

Wild Ambitions & Being Chewsie, I know the two of you have gone through some major shifts, so taking stock of what you own may have been a part of it.

I'm not looking for anyone to do a personal listing here.

Just DO IT, and then report in.

We need at least half a dozen people to do a full inventory.

A fast inventory can be done in ONE WEEKEND (we used to call this "spring cleaning").

Start with the cleanest/emptiest rooms in your house. Put all unknowns in the garage.

We did it in this order:

-Living room/dining area
-Bedrooms
-Bathrooms
-Kitchen
-Closets
-Basement/garage

This approach gives you visible results, fast. You'll have beautiful living areas and bedrooms within hours.

For us, this gave us the energy/encouragement we needed to clean the bathrooms (fast) and then kitchen (more stuff, so it went a bit slower).

As we went from room to room, anything that we hadn't used in 3-6 months was up for grabs ("Do we *really* need this? Will using this enhance our daily life?"). In a lot of cases, the answer was "No."

Anything we hadn't used in at least a year was banished--either to the basement/garage/storage, or (in most cases), we decided to sell it/give it away/throw it out.

We started at 7 am on Saturday. Had pizza for lunch. We got the entire house (except for garage & basement) done before 6 pm. Had Chinese take out for dinner, and kept working. Crashed at 10 pm.

On Sunday, we had a special breakfast (waffles!), since we had found the old waffle iron. Got to work on the basement by 10am.

Had the basement inventoried and organized by the latter part of the day.

So at the end of that weekend, we had done the ENTIRE house, everything except the garage.

Of course, the garage now had a bunch of extra stuff in it that we'd decided to sell/give away/throw out.

We spent the next week talking about how this all made us feel, and 2 weeks later, had a huge garage sale (this forced us to clean the garage!).

I'll be happy to share any cleaning tips (Jeff Campbell's Spring Cleaning and Clutter Control books are excellent).

Use a video camera (and talk while you're doing it) to document things like books, DVDs, CDs, etc. Move it slowly enough to show all individual items. You can also use the camera for furniture and electronic equipment, as well as clothes.

BUT DON'T LET THE CAMERA SUBSTITUTE FOR GOING THROUGH EVERYTHING!!!

(actually sorting through stuff and asking these 3 questions:

-Do I need this?

-When will I use this?

-Can I live without this?

Will *really* make a difference in how you start to look at things (after only a few hours!).

C'mon folks, let's do some Spring Cleaning, Fastlane style!
:banana::banana::banana::banana:

-Russ H.

 

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[CarrieW]

I havent done the expense tracking yet. I am already a stickler for the finances. I know where every single dollar goes in this house.

so Ive done it already just not on paper recently.(only thing on paper is just the budget)

I have shown my dh the money we have wasted since weve been married. its ALOT. it makes me sick to my stomach to even think about lol. we blew somewhere inbetween 60-75k over about 6 and 1/2 yrs time on basically nothing. I realized after about 5 yrs in but it took us over a year to finally make the changes. (ok when I say us I mean it took me that long to convince dh to change lol)

since oct 06(when we were losing the house and decided to move away) we have become way more concious of what we are spending on and if we need to or not. we have cut those wasteful expenses down to less then 300 a month from 1200-1500(or more some months)

the way its set up now there is no extra money that can get spent on something its not allocated for.


I have done a partial inventory. we have an attic and storage room full of stuff that we are selling.

we got rid of tons and tons of stuff before we moved from pa to ga. and when we just moved in january we got rid of all the stuff we thought we needed that we brought with us that we never even touched in over a year. so we tossed alot of things (that we moved 3 or 4 times lol)with the exception of the things we kept to sell.

so basically we have furniture, clothes, pets, toys, dvd's, books and a few nick knacks.(getting rid of alot of this stuff too when we do the yard sale) we are just keeping the basic essentials.

everything in the attic and storage room is outgrown baby toys and clothes(we were keeping for the next one but......)and dh's investments(see my last post in this thread) lol and alot of excercise equipment.

in the next 60 days we will have sold everything excess in our lives. we are even having the kids scale down. they are majorly fighting us but we are pushing. they have far too many toys and stuffed animals. mostly its just taking up space... it will be better for them in the long run to get thru this phase now.

 

[BeingChewsie]

I didn't just do inventory, I did a dumpster and anything else went on ebay. Some of the reasons for that are because of my sons autism. He does better in an uncluttered calm environment. I know people walk into my condo and wonder if I'm either moving out or have just moved in and that is fine. I like Sonya am very cautious and slow about allowing things to start creeping back into my life.

Sue

 

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[offroadaz]

Little late but here is my list

Core values:

• Serving God
• Spending time with family
• Spending time with friends
• Learning new things
• Adventure
• Living life to its fullest

Things I like to be around

• New cultures
• New places
• New experiences
• People
• Animals
• Nature

Things I like to do:

• Travel
• Explore
• Hike
• Offroad in the jeep
• Caving
• Build things
• Reading
• Teaching
• Community service
• Cook
• Develop plans

Ive been tracking my monthly expenses with the site www.mint.com It works great, it imports all of your expenses from your bank, credit and checking accounts then categorizes each expense. Its a very easy way to see what you spend each month and where your money goes. They also have an easy to use budget feature that keeps track of your expenses and lets you know when you are over budget

Some of you know already that I haven't been very good with my money lately. Ive managed to rack up 27k in credit card debt. I was having problems paying my monthly bills and incurred a few late fees which really hurt me. I'm doing better though, Ive already paid down 17k of the debt with a loan from my 401k and hope to have the rest paid off this year.

Ive spent $13,022(click for pic) in the last 3 and a half months. Some of that has been on bills but a large portion was on useless stuff and things that could have been avoided (late fees, overdrafts, junk)

I have finally sat down and put together a monthly budget. Hopefully this allows me to spend my money on paying down my debt and bills rather then on starbucks or movie tickets.

Im still having a hard time changing my thinking though. I just filed my tax return and my first thought was, "Sweet I can use the refund to go on a vacation!" I have been thinking about it since then though and I know that unless I change the way I think and live my life then I will never be out of debt and on the fast lane. I have talked with my wife and instead were going to use the majority of it to pay down our credit card and only keeping out a little to paint the living room.

Once the credit card debt is paid off I need to focus on building my asset column rather then buying more junk.

Thanks for the exercise Russ. I know that I still have allot to learn!

 

[PEERless]

I would love to declutter my life in this way, but whatever empty space I create is instantly filled by [someone else]'s stuff. Grr...

 

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[Poudda]

I did the dumpster thing two weeks before my son was born. I sold my house in Ontario (was a furnished rental) and lived in Alberta. Wife didn't want any of the furniture and we didn't want to spend the money to transport it. I also had some of my personal things there as well.

Everything went into the garbage except for things I gave away (bongos to a friends son, and guitar to previous roommate), and an old maple dining room table that was my Grandmothers - It's now at my folks place (unless they threw it out!). I think my parents took some of my grandmother's dishes, but I'm not entirely sure. Also gave away a really nice bedroom set to the tenant.

It was a huge experience to just get rid of it all and it was kind of a shock at the time. I don't miss any of it.

Right now, I'm converting all my old music tapes to digital and then throwing them out.

We're planning on having at least one garage sale in April / May (too cold this time of year) to get rid of the easy crap and nick nacks and kids toys.

I think that if we do sell the house (market is cooling here) we may have an "estate sale" to get rid of the larger furniture. Going to put an ad in the paper for the piano and cross our fingers.

Don't know what we are going to do with the stuff we don't sell, but will cross that bridge when we get there.

Cheers!

Dave

PS: Anyone want a piano? You can have it for $500 if you pick it up!

PPS: Thanks for the rep russ!

 

[Russ H]

Little late but here is my list . . .

It's never too late to start this thread!

Great stuff, offroadaz!

(in typing your screen name, I just realized you are referring to Arizona (off-road-AZ).

At first, I just thot you were a gangsta, hangin' widda utha off roadaz.

I've *got* to stop watching MTV . . .:smxB:

-Russ H.

 

[Poudda]

On the toys side. Really didn't keep that much, but will reduce again once we begin traveling in a few months.

Did my clothes yesterday. Looked in the closet, asked myself "self, how much of this stuff have I used in the past year?" Removed everything, kept only one nice suit jacket, dress pants white shirt, two ties (so I have choice) and a short sleeve button up shirt. The rest went to the Salvation Army. Still have to go through my dresser, but I use just about everything in there.

On the funny side. Michelle went through her clothes, found a wallet in her dresser that had $300 US$ in it. We suspect it was from when we last travelled south of the border about a year ago.

So you've already helped us find $300, Russ! How 'bout that.

I'm liking this plan thing.

 

[offroadaz]

Last week my XBOX 360 decided it hated me and developed the red ring of death.

I never realized how much time I wasted playing it until I didn't have one

I work four 12 hour days with 3 days off every week. Normally on my days off I play xbox and do a little housework. Well, without the XBOX I was able to accomplish so much more with my time. I was able to do a ton of yard work I have been putting off and even had enough time to help out with chores at my parents house.

I never realized how much time I wasted playing video games until I no longer had it.

Another big thing that helped my productivity is I planned out my day the night before. Usually I would just wake up and do whatever I felt like, this lead to allot of TV and not much else.

Since I started planning out my day I have found that I have more time to do the things I need to do and even more time to do the things I want to do.

I think I can apply this strategy to my finances as well. Stop wasting my money on needless things, focus on my overall goal and take action to achieve those results

 

[Russ H]

Now you all know why I buy TONS of socks (say, 20 pr), all the same, all at the same time.

The only colors I buy are white and black.

So when 1 (or 2, or 3 socks) go missing, I just pair it up with the other identical socks.

Part of my commitment to Simplify.

-Russ H.

 

[AroundTheWorld]

You will like it even more when you have hundreds of kids running around!!!
well, okay. Maybe not hundreds.

 

[Russ H]

You will like it even more when you have hundreds of kids running around!!!
well, okay. Maybe not hundreds.

Yeesh. I'm ambitious.

But not that ambitious!

-Russ H.

 

[Russ H]

Dejan-

Or has been pointed out, just use an ATM card, and the bank totals all this stuff up for you!

The big point here is: Most of us make a LOT (a LOT) of spur of the moment cash purchases, that suck THOUSANDS of dollars a year from our lives.

Actually documenting every penny calls for a much higher level of awareness.

I collected receipts for years, but it wasn't until I started tracking each and every penny that I really discovered where all that "lost money" was going every year.

Now, I just never carry any cash. Accomplishes the same thing, and takes less time. :banana:

-Russ H.

 

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[mizchels]

Whewee. I'm really happy to post my list, thanks again for taking the time to consider it and letting me join in.

----------------
A. Who Am I?

- a creative
- an artist
- an adventurer
- motivated, ambitious
- a web/technology lover
- a fashion lover
- value healthy living/eating/athletics
- love learning
- a dreamer
- strong-willed/stubborn
- focused
- organized
- compulsive
- a connector, connecting people to one another or to ideas
- introspective
- sociable
- like to flirt/love sex
- like being flexible/spontaneous but with a general goal
- like talking to friends/family, relating to others
- like to move/love to dance
- like being entertaining

B. Wanted But Then Thrill Was Gone:

I - tickets to events that I thought would be exciting but then...meh
II - fancy iPod
III - food items
IV - brand-name items (i.e. hair styling products, shoes)

Why Do I Not Like This?

I - excitement fades shortly after arriving, usu. because I built it up too much in my head beforehand
II - my off-brand, simpler mp3 player did fine
III - thrill was gone after few seconds of swallowing
IV - later buying generic versions and realizing they were just as good--the name is for status, and who really notices?


C. What Do I Really Want?

- to be flexible with my daily schedule, doing what I want when I choose
- to be interacting with people, in person and online
- to be creating/exploring: trying new designs, ideas, gadgets, technology, outfits, places
- to be organizing and entertaining
- to help people by making their lives easier or making them feel better about themselves; making people feel good
- to learn
- to research, review and critique new things (i.e. artwork, websites, movies, clothing, interiors, etc.--something in design/entertainment/media)

D. Fun Stuff: What Do I Love To Do?
* = do regularly (weekly/daily); *** = haven't done in a long time
- run* CORE VALUES: value healthy living/eating/athletics; focused; motivated/ambitious; adventurer

- swim* CORE VALUES: value healthy living/eating/athletics; focused; motivated/ambitious; adventurer

- dance*** CORE VALUES: like to move/love to dance; creative

- surf the internet* CORE VALUES: a web/technology lover; creative; a connector, connecting people to one another or to ideas; fashion lover

- read* CORE VALUES: love learning; dreamer; a connector, connecting people to one another or to ideas; introspective

- paint/collage/illustrate* CORE VALUES: a creative; an artist; introspective

- learn about and relate to people* CORE VALUES: like to flirt/love sex; a connector, connecting people to one another or to ideas; love learning; sociable; like relating to others

- go exploring*** CORE VALUES: an adventurer

- travel*** CORE VALUES: an adventurer; love learning; motivated/ambitious

- make multimedia projects, i.e. animations/videos/montages*** CORE VALUES: creative; a connector, connecting people to one another or to ideas; an artist

- shop for clothes/shoes/accessories* CORE VALUES: fashion lover; like being entertaining; creative

- make greeting cards and personal collages* CORE VALUES: like relating to others; an artist; a creative

- learn new things* CORE VALUES: an adventurer; love learning; motivated/ambitious

- make things* CORE VALUES: a creative; an artist

- hanging out at art/music/entertainment shows, public events* CORE VALUES: sociable; like being entertaining; like relating to others

-----------------------

My weekend total, since Friday March 14 thru Sunday, March 17:

Friday: Postage, $6.90
Saturday: Gas, $25.00
Sunday: Groceries: $28.43

TOTAL: $60.33

This is a pretty typical weekend...living on an island means goods are more expensive--but there are less of them and less entertainment to spend money on (i.e. no movie theaters, etc.) on a regular basis. (I can go to the neighboring, bigger island for more things to do but don't do that on a regular basis.)

 

[mizchels]

Ok, I've been tracking this for a couple weeks now. My expenses haven't surprised me much, although I have noticed that I'm not reaching for a few of the "little extras" that I was just grabbing without thinking prior to this exercise.

I have found the greatest sense of freedom and then energy from evaluating the "stuff" in my apartment. I have tossed out excess things I was keeping for art projects and never used, magazines with "good articles to save" and critically sorted my clothes. I am a clothes horse, but I've given away things I haven't worn to several little kids I know (girly jewelry and makeup) and started selling on Ebay! I've "re-gifted" several books that I don't need. I'm about to move into a new apartment--it's perfect timing with this exercise. I like renting if only because I don't settle completely into a place; I come from the mindset that I'll have to move eventually so I don't want to collect excess.

I'm not saying anything that hasn't been said already on this thread, obviously. But it IS really cool when you do it for yourself and fully understand what others are saying. Fast lane or slow lane? It's a simple choice but not always easy! There's a book called, "Design Your Self: Rethinking the Way You Live, Love, Work and Play" which covers all topics in one's life and simplifying. From your career, your closet, your relationships, your health, your spirit, your sex life...it's a fast read and a book that fits in well to this.

(On Amazon: http://www.amazon.com/dp/0060839023/?tag=tff-amazonparser-20
if you're interested)

Thanks, Russ.

 

[Russ H]

CarrieW:

Merkin Man: Great insights! :icon_super:

(BTW, I always feel strange when I call you "Merkin". You know what a merkin is, right?

-Russ H.

 

[Russ H]

You're welcome.

But just to clarify, I'm not your boss.

Boss kinda means I'm above you, somehow.

I don't feel that way.

Consider me a fellow traveler on the road to financial independence.

-Russ H.

 

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[max momo]

Hi, Glad to join this thread, been following it for one entire year now!:smx19:

I’ve seen this topic develop over the internet a few times now and must say this thread proves a shining example. Love that the thread isn’t rushed. Also poignant – to me -that the thread began right before 9/11 and is why I am just posting now. [September, Fall, Change in the air, Back-to-School, new beginnings.]

The Exercise
I’ve actually gone through this exercise, In Full, about three cycles now and in part, more or less, any number of times. The Exercise transformed, for me, into a fine method for information processing and a repeatable and scalable forum for critical thinking and systems analysis.

First started The Exercise, formally, in early September 2000 – mostly as a result of having a few “A-HA†moments and reading a few “A-HA†books starting in 1998. In late 98 I finally came out of a haze and asked “Why am I broke and in debtâ€.

By early September 2001 I actually had written out my core values and what I wanted to accomplish in life in fair detail. And a couple days later, 9.11.01 happened and made me reconsider: What really changed? Were my goals still the same if everything else changed? Did anything, or would anything change – really change, down to fundamental makeup? Did I change?

ACTION
Well 911 came and went and there have certainly been many more significant changes in my life before and after. There’s the rub, your goals do change over time because YOU change and YOUR position relative to everything else changes. Once you really learn what The Exercise does FOR you, then you’ll continue to implement the lessons and resultant skills across various other platforms and applications and grow what YOU can do for OTHERS.

2. And then my fiancée and I completed The Exercise on our COMBINED values, actions, expenses, goals…

3. And then I repeated (and continue to do so) The Exercise for my financial and professional endeavors.

The Exercise continually enlightens the consciousness as you delve into yourself and REALLY answer the questions in a forthright and meaningful fashion.

For those that started The Exercise, but got bogged down (there are a whole host of reasons why that happens) don’t get discouraged. Taking stock of one’s emotional/physical/social/financial and spiritual life isn’t’ for the self-absorbed or uninformed or those dead-to-the world and themselves.

Indeed, you awaken or revisit those places in yourself which may have lied dormant for quite some time.

Like many of you, when I just woke up and initially began The Exercise I was amazed at how far deep in debt and denial, and just plain ignorant, I had been.

And for those of you lurking on the thread, or who have started but hit a roadblock, stopped progress and now are dejected, take heart – it happened to many of us.

In fact, I was first challenged to write down my goals for the first time in 1991. I didn’t do it and actually held the temerity to tell the coach who challenged me that I would finish it and provide to him soon. And I never did…

It took the first “A-HA†moment to jar me out of the stupor and I didn’t truly write my goals out ON PAPER for the first until late 1998. [On Paper proves important. The chasm between dreaming and establishing goals simply comes down to putting pen to paper – a small matter but a Large Step. That gulf between dreams and goals we now know to call ACTION.]

After I started tracking my expenses (to the penny) on Jan 1, 1999 I REALLY got into it. As a Point in Fact, I saved EVERY receipt throughout the year and on (per recall) the first day of September that year I actually took a brown paper bag full of those receipts to Burning Man and threw it on the fire pyre and watched a year of consumption go up in smoke to the drone of voices, drums, techno and sights and sounds I’ve never experienced before or since.. .

At that moment I realized how those few ounces of paper actually weighed a Very Heavy Load on my psyche and pocketbook.

RESULTS
The goals that my then fiancés (now wife) developed are still in my briefcase just a few feet away. And yep, I still have the year’s worth of notes documented EVERY PENNY that I spent, in my archives.

I’ll spare all the details from this post, but suffice to say I WITNESS HERE that it worked for me, both personally and professionally. As my financial endeavors have developed, blossomed, struggled, failed, and rose again, those skills and abilities – and the self honesty – it takes to realistically employ The Exercise improved practically every facet of my life since it forces personal accountability which then allows accountability to outward people and goals.

Hence, at this point I personally no longer feel the need to write out my goals or expense in this thread. Over time I have built a number of systems to continually do so and implement in the Big Four financial concerns: 1. Real Estate, 2. Internet Business. 3. Investing and 4. Career.

Indeed, I have collected a fair amount of The Exercise results, thoughts/notes/analysis etc. and shaped them into my blog which goes back to the beginning of 2000 (probably over 500 pages now), which is just part of the website I developed, and have also formed the outline of a book on personal finance that I’m writing. For that matter, many of the lessons I have learned I have shared with many folks in my life and the posters at numerous forums. In fact I’ve read many posters here since I joined the RD forum in early 2004 and continue to follow the development over at this site.

And of course, The Exercise continues and the opportunities to share lessons learned forms a dandy reason to establish This Forum, and This Thread.

The way I look at it, if you stop (or never start) posting here, may it be because you are posting/acting/developing EVERYWHERE else….

 

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[kwerner]

Part II: Taking Action

...the first question of TAKING ACTION is: How little can I live on?

What do I need to survive?

And once you know the bare minimum it will take . . . how much does that survival existance cost, per month?

How little can I live on? Well, if I were to go to the extreme and sell my SUV, house, and most material possessions, like Russ suggested in the "Taking Action" thread, and go with a completely MINIMALIST lifestyle - I figure my expenses would cost me about $1,500 a month. (But then, of course, I'd have quite a bit of extra cash available to invest, not only from the sale of my possessions, but also from my dramatically reduced monthly expenses - which, I assume, is his point in this exercise).

Here's how I came up with the $1,500 a month figure:

Car - Spending $4,000 on an older, but dependable, car. Monthly Payment: $125 (on 3 yr. loan)
Mobile Home - Find a bargain for $10,000; it's not fancy but provides basic shelter. Monthly Payment: $450 ($250 month loan payment + $200 month lot rent)
Health / Disability / Life Insurance - $180
Auto Insurance - $45
Maintenance - $40
Clothing - $25
Food - $300
Gasoline - $125
Electricity - $80
Entertainment - $40
Household Necessities - $50
Phone - $40

Total - $1,500

And that would cover pretty much all my needs for "survival existance".

If you are motivated, try to write down what you think your current expenses are (rent or mortgage, prop tax, insurance, car expenses, etc) each month. For expenses that occur only once a year (like dental appts or vehicle registration), divide by 12.

You're on your way to determining your "bare essentials"!

-Russ H.

My average monthly expenses are quite a bit higher than my "survival existance" expenses I budgeted in the above exercise.

Mortgage - $787
Car Payment - $0
Health / Disability / Life Insurance - $186
Auto Insurance - $72
Phones / Internet / Cable Services - $183
Electricity - $74
Heating - $42
Water - $35
HOA Dues - $11
Trash - $22

Groceries & Household Goods - $427
Dining Out / Fast Food - $389 (I should easily be able to reduce this down to $150)
Entertainment - $111
Gasoline / Auto Maintenance - $227
Gym Membership - $45
Clothes - $40
Miscellaneous - $75

TOTAL (AVERAGE) MONTHLY EXPENSES: $2,726


And since I know Russ has been hounding everyone to tally up your expenses "down to the last penny", I included my actual expenses for the month of September (from using my debit card for all purchases - and this is how I came up with some of the figures above). But keep in mind that I had some highly out-of-the-ordinary expenses in September (mainly the clothing and Amazon.com purchases) - but as Yves had said, unordinary expenses can creep into your budget each month.


September Expenses:

Mortgage: $787.54
Health / Disability / Life Insurance: $185.80
Auto Insurance: $72.25
Phones / Internet / Cable Services: $183.26
Electricity: $74.42
Heating: $41.80
Water: $35.52

Groceries and Household Goods: $427.43
Doctor Visits / Medicine: $44.77
Dining Out / Fast Food: $389.42 (holy crap!)
Amazon.com Purchases: $84.16
Annual Credit Checkup: $23.95
Entertainment: $111.45
Gasoline / Car Maintenance: $226.83
Gym Membership: $44.59
Business Expense: $95.00
Clothing: $265.30 (crap, again!)

TOTAL EXPENSES FOR SEPTEMBER: $3,093.49 (yikes)


So, what did I learn from this excercise? The biggest thing probably would be the fact that I can get by with significantly less expenses (just how I convince my wife of the fact is another story). And also, although I'm certainly not living beyond my means - I'm also NOT saving an additional $18,000 a year that I could be if I reduced my expenses by $1,500 a month (as I could by keeping the "survival existance" budget).

 

[Charmed Angel]

This is a Great Thread Russ! I have just spent the most part of this day reading your thread and following the activities.
I did the activities as I read through your original post. I put them in a word document that I can reference when I need to.

The "Who Am I" was something that I find to be very valuable and I'm very greatful that you pose this question. I have learned a lot just from doing everything in your original post. This brought me to notice certain influences in my life that take away and distract from the very person that I am.
My Plan

Step One 1 Who Am I?

Core Traits (my deepest values and morals)

Spontaneous

Empathic

Helpful

Giving

Loving

Leader

Trainer

Inspiring

Enjoy family and friends

Director/ Manager

Independent

Open minded

Healthy

Outdoors

Learning

Confident

Classy/ Elegant

Achiever

Winner

Integrity

Spiritual

Loyal



Sometimes Wanting is Better than Having (list of things I “wanted†but never used)

Some of the cloths in my closet

Because I didn’t feel comfortable in them, I liked it but it wasn’t me.

Touch up paint for my truck

Because I didn’t feel like getting everything together to get it done.



What do I REALLY Want?

Managing Projects

Train others How To

Spend time in Arizona and Pittsburgh

Travel more

Someone to share and build my Life with

Bring cheer, inspiration, and peace of mind to others

Live a free Lifestyle



Things that I love to do.

Swim in dry climates. OU

Drive. SP, IN

Rockclimb. OU, HE, AC

Go to starbucks. CL

Gamble in Vegas. SP, WI

Watch a couple of TV shows.

Go to the park. OU, HE, FF

Play games with friends and family. FF

Build stuff. LN, AC, CO

Off roading. OU, AC, CO

Learning. OP, AC

Lead. LE, DI, CO

Meet other likeminded people. OP, LN

Spend time with friends and family. FF

Cuddle. LO, GI, EM

Spend time in the sun. HE, OU

Reach goals. LN, LE, DI, CO, AC, WI

Race cars. SP, WI, CO

Figure stuff out. LN, DI, IN, CO, AC

Fix things. CO, AC, HE

Make money. CO, IN, LE, DI, AC, WI, GI, IN, CL,

Stuff that I have done recently, have not done recently.

Step Two 2 Taking Action.

How little can I live on.

Track expenses Every Day

1177.17 last month Oct 2008
Identify spending habits

I spend too much on cigarettes and my truck. Other than that, I have drastically cut my expenses over the last 6 months since I've started tracking my expenses. I moved in with my parents, eliminated bills for things that I did not need, don't eat out more than twice a week, I drive less by only driving where I need to and not eating out much any more (my gas bill has gone from 670 a month to 100 a month). The biggest thing I noticed by tracking my expenses was that I was spending too much money on things I wanted and did not need. So, now I ask myself everytime before I buy something, "is this something that I need right now." If not, I don't buy it.

What is essential? (if there was a fire, what would I grab?)

Birth cert.

Wallet

Laptop

Phone


I have most all of my stuff in storage in Arizona that I haven't seen since April. When I came to Pittsburgh I drove my truck and brought two bins and two suit cases of cloths, a pillow, my laptop, phone, and some tools. That is all I have been living with, that is mine, for the last 7 months, and to be honest I haven't worn half the cloths that I brought with me. :smx4:
This has helped me even more to practice the "if you don't need it now, don't buy it" rule. I have realized over the last few months that I don't need anything but food, shelter, and cloths... and running water too. All the other things that I have just make things more convenient, like laptop, phone, etc.

Is there another step coming Russ?!

 

[Russ H]

Lighthouse-

Goals are like speed.

They are irrelevant if they take you down the wrong roads.

DEFINE who you are first.

Then, ;earn how to PURSUE YOUR DREAM.

-Russ H.

 

[Russ H]

Buy your kids' toys at garage sales (you can get them for next to nothing) - then, when they outgrow them, you can resell them on Craigslist and make a profit (I know it's silly, but it's funny, and it's true)

Or . . . start a toy library. Get a storage space that you open 3x a week for 3-4 hours, staff it w/volunteers.

You can get TONS of toys from folks whose kids no longer play w/them.

And let's face it-- once a kid plays w/a toy for a few weeks, it loses its appeal. So you just bring it back to the toy library, and take out a different toy!

-Russ H.

(pssst-some longtime girlfriends do the same thing w/their clothes, I've heard ).

 

[Runum]

A few years ago, we decided to make some changes. We wanted to travel for a while.... Hubby wanted to sail, but I wasn't quite ready for that, so we went with a big RV trip instead.

We rented out our house, and gathered up all our possessions for a garage sale. Each family member was allowed to keep only a backpack, and whatever they could fit into it. Everything else was sold. Kitchen appliances, furniture, sports equipment, all of it.

Sitting in the sun that weekend, out in the back yard while people offered 5 cents for some little trinket I used to "love" was very strange. I went through periods of sadness, excitement, and regret.

In the end, there were a few things I could not part with:

Pictures
Books

All those things, along with our really important paperwork were put into a container and stashed away somewhere. Anything that did not sell at the garage sale was taken to the salvation army. Then, we hitched up the travel trailer, piled into the car and took off.

We stopped, literally on our way out of town, and had a good bye BBQ with some friends. Just as we were getting ready to drive away, someone asked how long we were going to be gone. Hubby said "Oh, only about a month." People looked at us like we were crazy. We later realized that it was use of the word "only." Everyone at that BBQ had a job, and were only given 2 weeks in a whole year for vacation time.

We rolled down the road, with all of our worldly possessions right there with us(except our investments). We were in our only car. All that we owned was coming right along behind us in our travel trailer.

Before I started the entire process, I would have thought that eliminating nearly all of our possessions would have been really difficult. At in little moments, here and there, I did have a little pang of sadness. I missed this little trinket or that little what-ever-it-was.

However, the overwhelming feeling I had was one of freedom. You mean.... I can go anywhere? I am not tied down by all of my possessions? I don't have to spend time and money buying, maintaining, cleaning, and walking around them? My home is the world? Checking out some place new is as simple as hitching up and filling the tank? (Oh, and not forgetting the kids)

Eliminating all that clutter is VERY liberating.

Sounds like a great trip. How long were you gone? Where did you go and what did you see?

Agreed ATW, it's weird that the things you own eventually come to own you. Many years ago I bought a C band satellite system for the TV. These dishes were about 6 feet across. I was in love with TV and wanted more. No cost was too much. That dish caught all kinds of wind and was constantly out of alignment. Instead of bringing me joy, this dish became a major albatross around my neck. I eventually pulled it out of the ground and sold it for scrap. Freedom.:cheers: