How to develop your PLAN

[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.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Poudda]

Change is my middle name!

Okay. I'll trust your recommendation and I'll start this on Monday when my wife gets back from her business trip. And I won't go into it with a "I guess I gotta do this" attitude (can't say the same for Michelle).

First expense: matching notepads!

 

[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!

 

[wildambitions]

Since our major downsize back in 2001 and our move in 2006, we have moved to the "simple" life too. I have to admit though, it is VERY easy to fall back into the "spend what you have" mentality. For us it is a constant struggle. BUT, now we approach it some what differently. We are MUCH more likely to save for what we want, work extra for what we want or trade for what we want. We no longer go into debt for what we want (bad debt). And if we use credit for a "want" (doodad) we set a limit and have a defined plan to pay it down rapidly. It is a lot easier to do when you don't work for money but let your money work for you.

As far as our inventory, I haven't been able to totally complete the list because much of what I have left from before the move is in storage. We haven't had access to it for 1.5 years. I CAN tell you though, that the things in storage are obviously NOT needed items. Most everything left falls into the comfort and convenience category.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[DeBorahBeatty]

I have spent a lot of time on just this sort of thing while discovering something called Dependable Strengths.

A. Who are you, really?

* A creative developer of new ideas, an excellent coordinator, planner, organizer, skilled at interpersonal communication -- verbally and in writing.

* Artistic, imaginative and skilled at finding new ways to do ordinary things,

* I'm a highly effective manager of projects, people, programs and events.

* Energetic and enthusiastic with a genuinely positive outlook and approach. I'm open to new experiences and learning and I'm willing to take risks and try new things.

* Happy to share the basic concepts of self-awareness, clarity of thought and purpose, time management and entrepreneurial finesse.

I love to be around:

People who are doing what they love
People who are working on their dreams
Oceans
Sunsets

Things I really dislike:

People getting in their own way
People so paralyzed by the fear of success they can't even start to dream
Narrow-mindedness and short-sitedness
Having to live inside a "box"
Bad cars
uncomfortable shoes

Bare Essentials:

Reliable, comfortable and fun transportation
Home of my own with a studio and quiet room
My husband and dog
Financial Freedom
Friends and places to hang out with them

Let's see, I'm still working on the rest. Can't wait till the next part, too!

 

[BeingChewsie]

Time for some fun. Remember, this is not a REAL fire (in a real fire, you get you and your loved ones out, right away, and don't go back inside!).

What would you grab?

Could you live without ALL of your stuff?

If not: What is ESSENTIAL to your life?

What are the things you cannot live without? (remember, people and pets are excluded from this exercise).

(Let's assume that, if you have insurance, it would cover the losses within 30 days).

-Russ H.

Hi Russ,

Sorry for taking so long to get back and answer this...I have been very busy working our plan .

I'd grab my wallet and blackberry.


For the next exercise:

I'm not a stuff collector. My condo is pretty much bare. I hate clutter and like open and clean spaces.

What do I have to have?

Looking around at my little bit of stuff, I'd keep my books and my son's books. I'd keep my laptop, my kiddo's laptop and high speed connection. We need food and healthcare products and clothes.

 

[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.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Sparky]

Hi all

I'm a bit late to the party, but bear with me - I've been working since Friday on this.

Core Values:
-Fitness/Health
-Fun/Adventure/Excitement
-Nature
-Respect
-Learning/Growing/Understanding
-Being around people
-Choice (freedom of time and money)
-Integrity & Loyalty
-Music
-Determined/purposeful/forward moving people
-Laughing
-Making an impact

Fun things:
-Golf
-Walking and experiencing nature
-Exercise
-Sleeping
-Mind twisters (e.g. "The truth is: there is no spoon")
-Listening to good music
-Solving puzzles/problems
-Experiencing the profound
-Hanging out with friends
-Reading
-Playing games
-People watching
-Random spontaneous walks and seeing where I end up

On the expense tracking side, I've bought a PDA last Feb (07) specifically for this purpose. And I have been doing it - except sometimes I forget and lose money (i.e. can't account for where it went), but also I haven't looked at the big picture - the overall spending patterns over time.

So after thinking "but I'm already doing this" and then reading "yeah, yeah, the cafe latte factor crap",:smilielol: I thought maybe its time to look at that again.:bgh:

And that is what have been taking time:
(to save space, I'll show monthly expenses for last year and detailed for dec and jan):

Monthly expenses:
Feb'07 - £910.31
Mar'07 - £908.62
Apr'07 - £906.78
May'07 - £1,394.06
Jun'07 - £1,771,70
Jul'07 - £966.79
Aug'07 - £1,511.25
Sep'07 - £1,012.10
Oct'07 - £1,097.23
Nov'07 - £1,116.37

Dec'07:
Bank charges (international account)- £7.50
Clothes (scarf) - £11.00
DIY tools (spanner) - £5.76
Entertainment (music cds/dvd/games/sightseeing...) - £182.17
Gifts - £7.99
Groceries - £114.79
Haircut - £6.00
Gym - £41.95
Medicines - £33.38
Lost money (Unaccounted for) - £54.53
Rent - £480.00
Software - £18.70
Transport (no car - I use public transport) - £150.60
Work Lunches - £28.65
TOTAL: £1,143.02

Jan'08 (so far):
Bank charges (international account)- £7.50
Clothes - £5.00
Computer repairs (which turned into an upgrade) - £1,351.37
Fast food - £6.88
Groceries - £12.58
Haircut - £5.00
Gym - £43.25
Umbrella (previous one broke) - £16.00
Lost money (Unaccounted for) - £11.76
Software (antivirus yearly fee)- £25.00
Transport (no car - I use public transport) - £134.10
Work Lunches - £47.12
TOTAL: £1,704.36

What I did learn from this, is that I have a lot of "it doesnt really count" type expenses - holiday ('only once per year'), gadgets ('I dont always buy an iPod/digital camera/pda...'), music cds ('havent done that in a while')...

While I have cleared all my bad debts, some of the sand in my hand is still falling through the gaps, for example I seem to have misplaced about £176.49 last year where can't account for how I spent it.

Stuff:

About a year and a half ago I decided to move country (Aug'06). I've been living in my own house for about a year and had managed to get lots of 'stuff'. But when you move country, and you can only take so much with you, you have to decide whats really important and what isnt. I sold some stuff to friends, a pawnshop or relatives, gave other stuff away, and stored the last few things in my parents garage (golf set, books and DIY tools mostly). What I took on the plane with me was what I could carry in one large suitcase and one carry on suitcase. Doing that made me think of the movie, Heat, in which Robert de Niro's character says something to the tune of 'Never have something in your life that you can not walk away from in 30 seconds flat'. While it is a bit pessimistic view, and I dont subscribe to it when it comes to family and friends, it made me break the connection I had with most of my 'stuff'.

So, running out of fire where there is no fire distingishers and no people/pets were in danger, I would take my passport (to prove my identity) and wallet (to buy new stuff of course). These two things I reckon would be the most hassle to replace - everything else can be bought again.

I am working on the list of stuff that I currently own and defining on whether they are essential to me or not. As I'm just renting a furnished room in a house, a lot of the stuff that I use are not my own. So beyond the stuff I own, I've created a section called 'Other peoples stuff that I use but do not own'. I've done this as I know that if I have to recreate a place of my own with essential'stuff', a lot of what I currently use (but do not own) have to be replaced. For example, I rent a furnished room, so the bed, desk and closet is not mine (and I'll let that burn :smilielol: ), but if I have to move out, I'd have to either find another furnished room (and pay more for that convenience) or get my own furniture (at a greater initial outlay).

Good post Russ, rep++, I finally got around to reading it :eusa_clap:

Sparks

 

[Poudda]

Just for fun, here's the first weeks summary. I hope it's okay that I rounded up of some of the numbers. And of course, the big expected expenses - the trailer and the macbook are on the list - not normal expenses so I've made the adjustment at the bottom to see what we "normally" spend on.

Here's the week's summary:

Monday 14
Nothing $0.00
TOTAL $0.00

Tuesday 15
House Taxes 135.80
Gym 90.00
Michelle - Lunch 25.00
Groceries 143.25
Hydro 130.97
Daycare 324.00
TOTAL $849.02

Wed 16
Tent Trailer 1,000.00
Car Wash 12.00
Transit tickets 21.00
Utilitiesl 76.00
Gasoline 35.00
TOTAL $1,144.00

Thurs 17
House Cleaning 60.00
Auto Insurance 150.37
Home Phone 80.35
TOTAL $290.72

Fri 18
Dave - Dinner 21.00
TOTAL $21.00

Sat 19
Breakfast 29.00
Chapters book 24.00
Craft Supplies 22.00
MacBook Pro 2,210.23
Lunch 16.03
DVD 15.34
TOTAL $2,316.60

Sun 20
iWork 80.00
TOTAL $ 80.00

Mon 21
Dinner 42.00
Patches 38.00
Charitable 100.00
TOTAL $180.00

Total $4,801.38
Total w/out Trailer & MacBook $1,591.15

We're so bad!

Spend spend spend!!! buy buy buy!!!

Rep ++ for Russ & Yevskleinsky

 

[Russ H]

Great stuff, Sparky & Poudda.

Keep it coming!!

-Russ H.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Bilgefisher]

Russ, I want to thank you. An interesting thing happened to me recently. I got a much better job. That was all fine and dandy, then I looked at my expenses. Suddenly they jumped i proportion to my pay. Thankfully only one week passed by because I have been tracking everything. I got it back under control. This probably would not have happened right away if I wasn't keeping track. That rat race will catch ya asleep if your not wary.

 

[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

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[MJ DeMarco]

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

Congrats and thx to Russ for running the exercise!

 

[Poudda]

Week #2

Tuesday 22
Model Train Stuff 228.22
Breakfast 5.40
Lunch 6.70
Groceries 11.63
TOTAL 250.95

Wed 23
Groceries 26.00
TOTAL 26.00

Thurs 24
Dinner & Drinks 45.00
Transit Tickets 22.40
TOTAL 67.40

Fri 25
Groceries 25.39
TOTAL 25.39

Sat 26
Breakfast 24.00
Haircuts 25.00
Gasoline 67.00
Groceries 141.02
TOTAL 257.02

Sun 27
TOTAL 0.00

Mon 28
Lunch 18.00
Groceries 30.31
Utilities 76.00
TOTAL 124.31

WEEK TOTAL 751.07


I think there's a couple of things missing (wife's credit card - and some cash payments) as I don't have access to that info and she's really not into tracking the daily stuff. I suspect its about $30.00 for gas and maybe $40.00 for lunches and stuff from her allowance.

 

[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!

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Russ H]

Seems like the thread is slowing down!!!

The hardest thing about getting financially fit is developing/changing habits.

And sticking with them.

Rep speed to you, Dave, for sticking with it.

How is everyone else doin'?

-Russ H.

 

[pitboss]

GREAT Thread!!! I wish I had gotten on board sooner. I now have incentive to go forth and put my list together as I always have good intention to do so but until now, did not have the motivation. Thank You Russ!!!! I will be back with my list!

 

[Russ H]

You're quite welcome, pitboss!

Welcome to the thread.

-Russ H.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Poudda]

Week #4

Tues Feb 5
Groceries 27.68

Wed Feb 6
0.00

Thurs Feb 7
0.00

Fri Feb 8
Gas 110.00

Sat Feb 9
Breakfast 30.00
Home Hardware 62.42
Train Stuff 189.72
Ink Cartridge 31.65
Groceries 214.49

Sun Feb 10
0.00

Mon Feb 11
0.00

90.00 cash unaccounted for – what is my wife spending money on?

TOTAL 755.96

 

[Russ H]

Fri Feb 8
Gas 110.00

Ouch.:smx3:

Sun Feb 10
0.00

Mon Feb 11
0.00

Gotta love these kinda days . . .

90.00 cash unaccounted for – what is my wife spending money on?

$90 is about 12% of the overall expenses for the week (so this is significant).

It's really, really hard to track expenses for 2 adults-- especially if you're into it and she's not so much.

Try not to get frustrated or angry-- that's super counterproductive.

You have some very savvy gals on this forum-- why not ask them for advice?

(I always say the wrong thing-- it's not just Venus/Mars-- more like being in different galaxies).

My wife and I are both doing this as a team, but the words I choose to talk about this kinda stuff are just not good girl words.

I continue to work on this, as its essential to a successful partnership (and, I hate saying things that make her feel crummy or guilty).

Let us know if you have any breakthroughs on this!

-Russ H.

 

[AlwaysCurious]

It's really, really hard to track expenses for 2 adults-- especially if you're into it and she's not so much.

Let us know if you have any breakthroughs on this!

I know exactly what you mean, and I for myself don´t have a clue what to do about it other than rough guessing.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[AroundTheWorld]

So much of this exercise - to include the spending portion - is about self awareness and making the choice to live intentionally..... to intentionally make choices about our lives and lifestyles.

By taking a holistic view - it is sometimes a lot easier to bring our spending to a happier place.

Care about the earth?

Often, the things we spend a lot of money on are the things that are harmful to the earth: fuel, home energy bills, grocery bills.

Like to ride your bike? Ride it to work.
Like to eat high quality food? Have a garden. Bake your own bread. Buy locally. You are cutting down on the waste (all that plastic... not only the bags but also the food containers) and the energy used to bring the food to your table.
etc.

Care about quality time with your family?

Cancel cable. Play games or read a book outloud in your new-found time.
Cancel your gym membership and go on family hikes, bike rides, play basketball together, ski, ice skate.

 

[rcardin]

8 more days till out end of month. We get paid on the 20th each month so it is really easy to track expenses. We use debit card for everything. Rarely do we have cash on us.

In 3 months we have gone from a zero balance budget to positive 800.00 as it sits now if we don't spend over our budget the next 8 days. Refi on cc debt and tracking our expenses have changed our spending habits alot.

 

[Russ H]

rcardin-

Way cool.

Let us know how things total up.

-Russ H.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Poudda]

$90 is about 12% of the overall expenses for the week (so this is significant).

...

It's really, really hard to track expenses for 2 adults-- especially if you're into it and she's not so much.

Try not to get frustrated or angry-- that's super counterproductive.

You have some very savvy gals on this forum-- why not ask them for advice?


-Russ H.

I did find $25.00 of the $90 so it's down to $65.00 unaccounted for. As far as getting my wife on board, it's a conversation I'd rather not have as I'd be about as delicate as a hungry polar bear in a grocery store. Generally I just roll my eyes at her.

To go on with the last couple of days of the month:

Tuesday Feb 12
Cleaning Lady 60.00

Wednesday Feb 13
0.00

Oh, and I messed up the Gas one - it was actually our electric bill; the Gas bill come out on monday for $103.69. For some reason, that didn't show up when I did my consolidation for last week. We also took out our allowance for the week of $50.00 each, I only dipped into mine today for lunch - fist time in ages I've done that.

Next post will summarize the month

 

[Poudda]

Here’s the breakdown for the month in order of most costly to least costly – I accounted for the computer and trailer separately only because they are not normal monthly expenses. Had I started this process one week later than I did, the computer and the trailer wouldn’t have shown up at all and I want to see what my normal spending habits look like.

House expenses incl. discretion (cleaning) = 1,843.80 (22% / 35.8%)
Groceries = 890.66 (10.6% / 17.3%)
Daycare = 720.00 (8.6% / 14%)
Hobby = 516.75 (kinda saw that one coming) (6.1% / 10%)
Meals out = 271.60 (3.2% / 5.3%)
Other Misc = 269.73 (3.2% / 5.2%)
Auto Expenses = 264.37 (3.2% / 5.1%)
Withdrawals – unaccountable or possibly double counted = 185.00 (2.2% / 3.6%)
Commute expenses = 43.40 (0.5% / .1%)
Entertainment = 1,039.34 (trailer $1K) (12.4% / 0.8% - no trailer)
Computer = 2,321.88 (27.8% / 0.6% - no computer)

TOTAL = $8,366.53
Total without Computer and Trailer = $5,156.30

Okay – ya got me. Holy crap!... And without the computer and trailer… holy crap!

 

[Russ H]

Cool.

Not sure if you've had a chance to read Sonya's thread, "On the Matter of Money and Marriage."

It's good.

Might give you a few ideas.

Or, you could post a few questions or try a few "how would this sound" roll plays. :chatter:

Lots of great female perspective on these forums.

-Russ H.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Poudda]

I figure - it's worth somewhere between $65.00 and $185.00 to keep the peace!!

 

[Russ H]

I figure - it's worth somewhere between $65.00 and $185.00 to keep the peace!!

Trust me, it's worth a lot more than that!!! :coffee:

-Russ H.