5 Easy Ways to Recover From Christmas
- Image via Wikipedia
November and December are crazy months and a crazy way to end a year. Lots of food, family, and money being spent. Lots of money being spent is where I want to focus this, obviously.
For me, December was a ridiculously hard month to keep up with. Money in and money out. I had a budget for my Christmas gift shopping, but as the saying goes sometimes, “Budgets are meant to break”. And I am ashamed to say that I broke my Christmas shopping budget.
Let me tell you what happened and how it can ruin you in the new year if you don’t recognize the danger. December is a busy month. Busy busy busy and you need to shop. So you shop shop shop. You are also working full-time and bringing in money. But you are so busy that you don’t sit down and put the money where it needs to go. You don’t do your budget the way you normally do it (organized) and all of the income just stays in your checking account. While you are shopping. Dangerous.
So you are shopping from your checking account and not really keeping track of things because you are too busy to do so. Then, the season is so happy and joyous that you don’t even think twice about going out to eat more than usual or going to the theater one too many times, or just spending money on things you normally would not spend money on. But the time of year is so happy you don’t want to ruin it (the feeling) for you or the people you are with. So you spend spend spend and don’t keep track.
If you are like me, this will drive you crazy and can really only last for one month. Not more and definitely not into the new year.
As you may have guessed, in the above “example” you can replace all of the “you”s with “me” and you have my December and Christmas season. It drove me nuts but I was too busy to do anything about it. I hope this was not what your December looked like, but if it is, here is how you can get back to the real world of making money and budgeting that money.
Paper and Pencil
No. I’m serious. Get back to the basics. Write your budget out on paper and use a pen or pencil. Do not use the computer or whatever method you were using. Get back to the basics. Write out how much you normally budget for a month. Write out all of your bills, categories, and saving goals that you are going to throw money at. Write it all out on paper and track it on paper. Sometimes using the computer just makes it too complicated and things just need to go back to the basics. Don’t think this is a bad thing. Do what you have to do to get your spending under control and your budget back on track.
Use Cash
Most Christmas shopping for me was done online and therefore I used my debit card A LOT. Get back to cash. Don’t use your card except for for paying bills online. Everything else, use cash. It may be inconvenient, but you need to take it back to the basics. Get back to using cash as quickly as you can. The card can become a habit and a REALLY bad one if you don’t get it under control. Make a stop to the ATM or bank today and take out the cash you will need for the month and organize it. No card in January!! Are you with me?
Revisit your Goals
Lindsay and I sat down last week and took a look at our goals. Where were we at? How far have we come, how far did we need to go? What could we do to speed things up? The point is to revisit your goals. Re-energize yourself to meet your goals in the new year. It is easy to forget what you want to accomplish, so a quick visit is a very good thing to do. If you have not done so already, this fund raiser is a great way to reach your goals in the new year.
Don’t Lie to Yourself
This is the worst thing you could do and exactly what most people do. They say it will be okay, things have been going good and easy this way so I’ll just keep on this path. Don’t do it. Do not lie to yourself and talk yourself into thinking that you can continue this way and keep above water for any length of time. You must change. And now is the perfect time to do so.
Restarts Are Good
The second worst thing you could do is think that starting fresh is bad. Rewrite your budget, rework your spending and revisit your goals. These are all good things and do not need to be frowned upon by you or your inner critic. Be afraid of quitting but not of starting over. I encourage you to do so.
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=a0be2fd5-d4a7-4b19-bb42-d44196c8cdbd)
Handling Your Household Finances
Who in your household handles the finances? Is it you or your spouse? It is almost always only one individual in the household that handles the money and truly has a grasp on their financial circumstances. But what about the other person? Shouldn’t they know exactly where the money is going and how much is in savings?Up until I got this nanny job, our finances were handled by Aaron. I had no problem with him handling it, as he had more experience setting up a budget than I had up until that point. Every once in a while though a situation would come where I needed to know where we were in our financial progress and if we had enough money for an item in savings. For example, if I needed to go to the doctors and have a procedure that I knew wasn’t going to be covered by our insurance, I would have to call Aaron or wait until he got home so he could show me if there was money for the procedure or not. After a little while, Aaron and I both realized that I needed to be more involved in the whole process. What we started out doing was having a “financial meeting” about every two weeks to once a month just to go over where we were and how close we were to our goals that we set for ourselves. It was actually really helpful for me. I felt more involved and had a better grasp on where we were and where we were headed, whether positive or negative.
Then came this new job. I would be getting a steady income and I had some very specific goals of my own that I needed to save this money for, like college bills for example. So, how were we supposed to handle this? Should we combine our money and handle it as one large paycheck? Should I keep my money completely separate and do my own thing with it? In the end we did a combination of the both. I had read an article that encouraged both spouses in a family to know the ins and outs of their financial status and how to go about taking care of the bills and other necessities. The article made the point, what would you do if something would happen to your spouse? Would the other person know what savings accounts there where? What money was invested and where it was invested? How to go about the weekly and day to day business of handling the family’s money? I would have had to say “no” to all of that. Yeah I saw the budget sheet each month but that didn’t mean I knew how to go about doing any of it.
Aaron and I both decided that it would be a good idea for me to have practice with a budget sheet and managing money in general. He sat down with me and we worked on setting up a budget sheet that worked for both of us. Even though it is my paycheck there are still common goals that we are working towards. This extra income in helping us to save for those things faster while still paying off my college debt month to month. This has worked out great so far. I am learning first hand how to handle money while still having Aaron involved. We both feel very strongly about having combined finances as much as possible and always keeping the other person in the loop with what is going on. Now if something were to happen to either one of us we both know exactly what to do and where everything is.
I would encourage every person to learn how to manage your families money, for several reasons:
1. If something were to happen to your spouse you would be prepared to still get the bills out on time and would know where all the pertinent information was. It would be a lot less worry in a time of possible distress.
2. Learning the importance of managing money is an invaluable life lesson. “Money is what makes the world go ’round.”
3. If both spouses are on the same page with their finances there is a lot less room for miscommunication and possible arguments.
4. It keeps both spouses accountable for their spending. If you both know where you are on your financial road map, then it will be a lot harder to make excuses for your excessive spending. You can’t get away with the “I didn’t know” excuse.
If you and your spouse handle your finances together let me know how you work it out in the comments below. If you are going to try this for the first time let us know about your progress. It may be a little tricky at first until both people are on the same page, but it will be well worth the time. There will be a lot less stress for the both of you in the future. Good luck!
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=be8ddcd6-1fde-466c-bea6-27cccc039b53)
Decorate this Christmas with a Budget
I’m not sure if you are like my husband and I at all but we love the Christmas season. We start listening to Christmas music before it’s necessary to wear a sweater and we get our shopping done before Thanksgiving even rolls around. For me, the shopping is done so early because I’m so excited about buying gifts for everyone. It’s something that I enjoy and look forward to every year. I also look forward to buying some new Christmas decorations each year, much to my husbands dismay. Not that he’s a Grinch in any way, he just thinks we have enough. But, there never seems to be enough for me. This year I am going to try to limit myself to two new Christmas decorations because he is probably right; there isn’t that much square footage to decorate in a one bedroom apartment.
So how do I go about buying decorations each year without breaking our strict budget? It’s really two-fold. I earn extra money on my own that I can spend how I chose and is not accounted for in our budget. Normally that entails babysitting for a few weekends around the holiday season. I already have some money that is allotted to buying a few extra things for the season that we didn’t originally budget for. Start planning right now, financially, for the holiday season. It’s a big time of big spending and the sooner you start saving the better. Most banks will even offer a Christmas account where you can allot a certain amount of money from each pay check to go directly to that account and you can’t get to it until a certain date. I think it’s a great idea to look into a system like that especially if you struggle with not touching money that you have “sitting around”.
The other way I save is by shopping at “cheap” stores first before going to fancy Christmas stores and spending extra money. A Christmas store just went in near our house and I have already visited it to check out the prices. I was very proud of myself that I could walk out of there empty handed. It was loaded with anything you could ever dream of having and lots of things you probably never knew existed yet. So why did I even bother going there in the first place? One, to check out the selection. I wanted to see what new things were out for the season to get ideas. The second reason is so I could check out their prices. I was surprised to find out that they did have some pretty good deals. BUT, I am still going to stick to my original plan and see if I can find the same exact item for cheaper. One store that I regularly check out around this time of year is the Dollar Store or Dollar General. I’m always surprised at the selection they have. It’s amazing what you can find and only have to pay a dollar for.
Last year Aaron and I celebrated Christmas for the first time as a married couple. This meant we were in dire need of finding absolutely everything; from the tree to the stockings to the outdoor decorations. We could have spent a ton of money but we gave ourselves a budget and did everything we could to stick to it. This is where the Dollar Store came in hand. We went there and picked out cute door decorations for our front and back doors; both only costing a dollar. Then I also got a wreath ($1) and a Christmas tree ornaments (12 pack for $1). I didn’t even have to compromise with what I wanted. I love gold and silver decorations for Christmas, especially on the tree, and I was able to get exactly what I wanted. All it took was some looking around and not being embarrassed about where we shopped. I could honestly care less about where I get my decorations as long as they look good. When it came to putting up decorations outside, we opted out of lights. Not that we didn’t want them, because I love lots of white lights, but rather because we had to. There wasn’t a good place for us to plug in the lights. This decision worked out well for us because it was a lot less money we were spending on the electric bill each month.
Another place that I went to was A.C. Moore. I wasn’t sure what I would find there but I ended up getting a tall standing snowman to sit out on the porch. It was really cheap because it wasn’t finished. I didn’t care because I already had paint at home and it only took about 20 minutes for me to paint it up the way I wanted it. It was a great, cheap alternative to buying a pre-made snowman that would have cost me significantly more.
If you don’t really need anything new for this season but you just want to buy something new, try waiting until after Christmas. There are always amazing deals after the season if you can wait. I may try this tactic this year since I really don’t need anything, I really just like buying something new each year for the Holiday’s.
Video Tutorial – 30 Day Challenge Spreadsheet
Before you start your budget you need to track your spending for 30 days. This spreadsheet will help you do just that, all you have to do is enter the numbers, it does all of the math for you. Below is a video walking you through this spreadsheet and how to use it. It is uncut audio and video and I hope it is helpful for you.
(I do need your help though. Those of you who have experience in screen-casting and/or podcasting, would you mind emailing me (aaron@whereyouarenow.com) the products you use or recommend using? I want to do these types of things the right way and need YOUR help to do so! THANKS!!)
You may also want to check out this article for more information on tracking your expenses and setting up a budget. What do you think about tracking your expenses for 30 days? Have you done this already?
Video Tutorial – Using Our Spending Plan Spreadsheet
(This post is loaded with images and one video. For best results view in your web browser. Also, if you hear a lot of background noise on the video, please turn down your speaker volume. Until I purchase a quality microphone the background noise will be there at a very low level. And another thing, I did not plan on having a video, I stumbled upon the ability to do this, so I was not prepared with a program that would boost the quality…for best results, expand the player by clicking the button on the very bottom right of the player. THANKS!)
If you have taken time to explore what we have to offer you here, you may have stumbled on to our “downloads” page. If you have not, wait until the end of the post to do so. We have made available to you the spreadsheets that we use here at home to keep track of and manage our personal finances (not including our checkbook register 
). The single download I recommend for everyone is the “Spending Plan” spreadsheet. This is your budget made easy. It does all of the math for you. All you have to do is enter the numbers. I’ve included a video tutorial and hope that it is helpful for you!
Notes: Budget is on the left hand side of screen, the right hand side is where you actually track your spending.
Step #1: Enter Income
Step #2: Enter each category and sub categories (bills, groceries, Starbucks, medical prescriptions, etc…)
Note: the top of each category has two “high view” items: “Budgeted” and “% of”. The “budgted” shows you the total for each category and the “% of” shows you the percent of your income each individual category consumes.
Step #3: Enter how much you are going to budget for each sub category.
Note: Remaining – Grabs budgeted amount for each category.
Step #4: Enter payments for each sub category in the “payments” category of the spreadsheet. Note: “Actual” shows how much you actually spent that much, and the “remaining” shows you how much you have remaining in that category as you make payments.
Note: Up top, the “Money Out” cell tells you how much money you have going out from your budget, the “% of spendable” is the percentage your are spending, and the “(-) if short” will show you how much you are short, if the dollar amount is preceded with a “negative” sign.
If you feel that this spreadsheet would help you get a hold of your finances, head over to our downloads page and download the spreadsheet (Excel format).
Oops! I forgot
When you’re working on your budget it can be hard to remember everything that you need to include in your categories. When my husband and I first worked out our budget we realized very quickly that there were things missing. Here are some of the things that we forget or you could easily forget that I hope help you get a better spending plan the first time around.
1.) Oil changes/car maintenance
2.) Christmas gifts
3.) Birthdays and other holidays
4.) Medications
5.) Magazine subscriptions
6.) Gym memberships
7.) Doctors visits
8.) Vet visits – if you own pets
These are things that may not be every month but that you should still plan on, especially the car. For whatever reason I don’t think you can take a car for an oil change and just pay for that. It almost always is something else too. I encourage you to read Budgeting 101 and track your expenses. That will really help you get a clear idea of the things you need to budget for. And, don’t get discouraged if you need to modify your budget because you forgot things or you just find it needs tweaked. It’s completely normal and you will need to adjust your budget on occasion as your life changes and situations arise. (Thus named, Where you are now)
Introduction to Personal Finances
Welcome! And thank you for taking time to stop by. We understand that your time is valuable and you are quickly browsing the web in search of something; we are honored that you have chosen to stop by our humble website! What you will find here is simple, to both read and understand, and can apply to your life no matter what type of job you have, where you attend school, how old you are, if you have kids, if you live on the west coast, east coast, or in Germany. Thus, where you are now (really: apartment, home…beach house, mountain cottage, college dorm…you get the point).
This is a personal finance website written by two people (a husband and wife to be exact) who are passionate about the gap in the “growing up process” that seems to skip right over managing money. Practical tips and useful ideas to help you better manage your money, give more, save more, and over all feel better about yourself and your financial status (the two are 100% connected) is what you will find here.
So, again, thank you for stopping by. Be sure to grab our RSS feed and/or subscribe to have new posts sent directly to your email (we do not SPAM)!
Here is what we have on tap for the coming week:
Sunday (today): Budgeting 101 & Honesty is the Best Policy
Monday: Money is Simple
Tuesday: Oops! I forgot
Wednesday: $1,000 in the Bank
Thursday: The Good ol’ Library
Friday: Living on Last Month
Saturday: Weekly Recap
In the meantime, check out the FREE tools we have made available to you or drop us a line just to say “hi” or to tell us what you would appreciate reading here.
Honesty is the Best Policy
This phrase is such a cliché but totally true in life; finances are no exception. Since my husband and I are young newlyweds that is the main audience that we are targeting. Because of this I feel like this is an important topic to talk about right away. When you’re getting into a serious relationship or have been recently married it is SO important to be open and honest about finances. Money is one of the main reasons for divorce so it’s vital to talk about it in the beginning to see where each other is at. Here are some questions to ask each other to get started:
1.) In regards to finances, how were you raised? (Did your parents buy you whatever you want? Were they strict with finances? Do you feel like they balanced their spending and saving?)
2.) Were you ever on a budget or spending plan? Explain.
3.) What are your spending habits like? (Do you tend to spend or save?)
Sit down with your spouse or significant other and answer these questions honestly. It will make life a lot easier for you if you do. If you sat down and realized you’re both spenders then really get serious about tracking your finances and setting a budget. If you’ve come to the conclusion that one is a saver and one is a spender then it’s important to discuss the expectations that you have for one another. Be open and work out a budget that you both can live with. My husband and I lean towards the saving side. We still have a budget that we stick to but allot a certain amount of money each month that we can spend however we want. It’s not a huge amount but it’s enough for the small splurges. How did we come to that amount? By looking at our income and being straightforward about our spending habits, savings plan, and expectations.
Budgeting 101
Money is not rocket science. Saving money is not rocket science, and budgeting your money is definitely not rocket science. A financial budget is like a plan, a spending plan to be exact, and is something that is necessary to have in order to get you where you want to be financially; no matter where you are now. Just like you use Google Maps or a traditional road map to get you from point “A” to point “B” on a trip, you will use your budget to do the same thing, but with your money instead.