Laceshawl's Personal Finance Blog

Now I know i promised this would be a no spend year, but today a relative from Ireland came to visit, and who can resist someone who's kissed the Blarney Stone. So we went out to a beachfront cafe and a leprechaun took $12.95 from my wallet for some mushrooms that were nearly as good as those in the Old Country. (Well, mebbe there was a drop of the good stuff too. I'm not saying) Then we decided to browse the 2nd hand shops, and while I was admiring some jewellry, another leprechaun pushed a ring onto my finger. It was obviously an enchanted ring, because it wouldn't come off. Then the store owner pulled a gun on me and demanded $10. Anyway that's my story and I'm sticking to it.

I'd better start saving for St Pat's day. Who knows what the little people will want to do with my money then.

I haven't mentioned I started the new job this week. They suggested I come in from 2-6, but I found I could complete the work in only 3 hours. Since noone is around to supervise me, I could be dishonest and pad the timesheet. Of course I don't do that, but it means I am earning less money.

I also found out that I am not getting paid weekly on this contract, but in a lump sum at the end. So it is a good job I was able to put aside so much money last month. I can't imagine how I would cope if I lived paycheck to paycheck.

Sigh. If only that were the end of expenses once the mortgage is paid off. But Nooo. there's money that has to be spent to keep the place in good order. Today I hired a dumpster - we call it a skip - and a work party of friends came round, and we filled it to the brim with garden waste. It looks so much better now. Unfortunately, while clearing the section we came across a wasp's nest, so there was the added expense of calling someone to dispose of it.

I'm afraid my garden has been getting the better of me while my health has been poor. I can't keep relying on friends and neighbours to take care of it for me, so I will eventually have to look at selling this place and moving into an apartment. But before that I will have to spend more money to get it into reasonable selling condition. I wonder if I can get on one of those do-it-up TV shows?

As it's a wet summer here and the garden is growing like crazy, I spent some time in it this morning with the help of my wonderful neighbour. I discovered a potato plant growing by my back door, and when I pulled it up there were several little white murphies. So we boiled them for lunch. P (my neighbour) calls them "volunteers". I am planning once all the weeds are cleared away to plant swiss chard, which grows very easily here. We call it silverbeet.

Thanks to the kind comments in response to my previous post, and - ALSO -

I've been totting up last month's spending.
INCOME nz$1437.49

EXPENSES
Electricity 134.00
Property taxes 90.21
Insurance 48.78
Phone 47.65
Internet and computer 27.95
Grocery 89.20
Entertainment and Dining out 28.20
Clothes 12.76
House and garden maintenance 25.54
Xmas gifts 39.44
Donation 35.70
Medical 29.00
Bus fares 10.00

TOTAL 618.43
Savings 819.06
Whee! I saved over 50% of my income last month. Maybe I don't need to cut back as much as I thought. I also reflect that much of what I used my savings for was family emergency and house repairs - exactly what it was there for. Plus I didn't touch my retirement savings or go into debt. Last year was tough, but I coped, and I think this year will be a lot better.

Anyone want to see one of those reality shows where people from different walks of life swap places? I'm volunteering to trade with a politician or a Treasury economist for a week

So the time has come to see how I went in the $20 challenge. i have consolidated my accounts and am ignoring the cents.

Cash 10
Check 120
Bill payer 611
House repairs fund 620
Travel 294
Emergency Fund 1920

Total 3574.
At the beginning of the year I had $3216, so my savings have increased by $358, or $6.88 per week. How unimpressive. However, my house has increased in value, and my retirement savings have also been compounding, so my net worth has increased more than that.

Next year, I shall just count the cash I've actually saved, by putting all my change in a jar. I begin with $3.20 in coins in a Spice Girls container.

It has been a sad end to the year. On Thursday I went to the funeral of a very special friend who passed away just before Christmas. D was born brain damaged and much of his life was spent in an institution. The great desire of his life was to be free of the authorities, and in the end he managed this, with his own little house and a gardening job.

His needs were few and simple; he loved to chat with his church friends and take an occasional bus trip. He was cheerful, honest, and he enriched the lives of those he met by his efforts to overcome his challenges. Goodbye D, we'll miss your enjoyment of life - and your never failing readiness to provide chocolates.

The other thing I had to do this week was visit a friend in the psychiatric ward, and I am quite sure that debt played its role in her breakdown. She was a single mom who, after having the courage to leave an abusive relationship, tried to compensate her children by giving them everything. There was nothing she wouldn't do for them, but, in spite of warnings from family and friends, she couldn't see that the lifestyle she was attempting to provide was beyond her means. When I talked to her, she was in complete denial, and her paranoia was an final attempt to avoid reality. I don't know what will happen now; I guess she will go bankrupt and lose everything. But when you get to the very bottom, there is no way to go but up, and I am hoping that now she will be able to cooperate with the help she needs to work her way out of this mess.

Someone in these blogs linked to violentacres.com and I've just been reading her. Her manner is not calculated to win friends and influence people, but what really resonated with me was her idea of buying freedom by not buying stuff. Not being tied to having to do what the boss says - how wonderful! I know some people think that beneficiaries get money without having to work for it, but being forced to dance to Income Support's tune is no joy either. I don't know any unemployed people who are happy with their situation.

The classic route to Financial Independence - what violentacres did - is to work like crazy for a number of years, climb that career ladder, mazimize your income, and invest that surplus until you have enough to live on. THEN you retire and do all the things you've been putting off because you didn't have time or money. I'm not happy with that. For one thing, my health just won't let me work all that overtime. I was exhausted doing 30 hours a week and had no energy to do anything else. I'd like to start cutting back on work NOW and having time to do the things I enjoy, spend time with friends and family. That work/life balance everyone keeps talking about.

Still, fewer hours means less income, so I'm going to go all Buddhist and start reducing my wants. The less I need to buy, the fewer hours I have to work to bring in the income. After all, there are people in this country who meet all their needs by casual work a few months of the year. I will still be creating a surplus and saving, but it will take me longer to reach the Classic definition of financial independence.

Today I recived my last week's pay along with some holiday pay; total $429.67. I'm putting $200 of this into Bonus Bonds. My emergency fund will stand at $1920.

It's summer here in New Zealand.Time for picnics on the beach. I have a ton of food in the pantry and frig so will see if I can do without buying any groceries until New Year.

The Christmas shopping madness is over - hey! I had a no-spend day on Dec 25!- and the bargain hunting season now begins. I could go along to the sales and get all the gifts and decorations for next year at reduced prices. But I have decided to join The Compact and buy nothing new for 12 months. My electric jug promptly celebrated this decision by springing a leak, but I can boil water in a pan.

Of course, I will still purchase essentials like socks and underwear when the old ones wear out, but in general, I'm going to try to make everything I have last for a year, or buy 2nd hand. I'm also cutting back on dining out and entertainment, tho this is not usually a big spend area for me. There is an interesting book called Not Buying It by Judith Levine, who restrained from consumer madness for a year. I think she overdid it and got too frustrated, but in general, I will be reducing my shopping to just the essentials of life. I am thinking it would be a good idea to sponsor a child in a Third World country with some of the savings. This will help me keep a perspective.

I gave $5 to the Salvation Army street appeal this morning. I am a firm believer that whatever you give away comes back to you. Sure enough I was walking back home across the Botanic Gardens and I spied a $5 note lying on a bench. No one was around, so I thanked the Universe. That's the quickest return I ever had.

I know some folks have commented in their blogs about getting bills for ridiculous amounts like 15 cents. Well, today I was preparing the invoices for sending out, and I came across a number for very low amounts, even ones for .01 cent, and even for zero, (where nothing was actually sent out, just to let them know it was backordered)

The thing is, when a transaction occurs, the computer automatically spits out the paperwork. So you might have a situation in which you wrote out a check, but accidently transposed the last 2 digits. The computer will record the difference, and send it out on the next bill. It should be checked by the sender, but when you have over 400 invoices to put in envelopes, along with your regular work, there isn't always time to scrutinise every figure. i did cull the silly ones this time.

And hey - who says you can't earn money stuffing envelopes? I got paid nz13 an hour for doing just that this morning.
then the boss decided the place should be put in order for the end of the year, so I was busy dusting shelves. Again, nice money for doing some cleaning.

At the end of the day, the boss had got some fruit cakes in for giving to customers, so he handed each of us one of the leftover ones as a thankyou gift. Yummy!

The temping agency rang me today. I am finishing this job on Friday, but they want me to go for another pt job starting on Jan 3. So I will have a nice 10 day break over Christmas/New Year, then more money coming in.

Boy, working 30 hours a week, especially leading up to holiday season, is really tiring for me. Never mind, got paid $303.03 after tax, of which $80 got paid into my EF and $20 into retirement. Yay for me saving over 25% of wages. Office party was on Friday, so didn't have to cook dinner that night. No gift exchange, instead the bosses donated a bottle of wine and we had a draw for it. I didn't win, but as I can't drink wine with my medication anyway it didn't matter.

Today I am cleaning and doing my laundry. I started to tidy up my closet. Boy, do I have a lot of clothes. I have decided not to buy anything new except socks and underwear in 2007. If I have to buy anything - from the thrift store! - I will throw out some older stuff.

I also tidied up my glory box, where I keep all my craft supplies. I decided I have enough yarn to knit out of my stash all year, and there are some neglected crossstitch projects I can work on to. So instead of going out to the movies or eating out with friends, I will invite them round to my place for a "stitch n bitch".

The other thing I will do next year to save money is work on my garden - planting veggies.

I went south 200 miles with some friends and met up with some more friends to have a feast and a gift exchange. I took some cream cheese and ginger sandwiches. Ironically we were meeting in a Catholic church hall but it didn't stop us committing the sin of gluttony. Several of us have resolved that we will fast every Friday next year. In my case, I think it will be a good plan to make every Friday a no spend day too, just to overcome lust for all those material goods.

I used to live in this town so went for a stroll round with my friends to see how things have changed. It seems a lot larger and there are a lot of new shops, all the big chains, which they are very proud of as sign of development. I came across one bookstore where they were giving away old posters. I got a couple with pictures of cookbooks on them, to put in my kitchen. Hmm, did I say I was fasting next year? For the moment, however, I will eat drink and be merry.

Happy to say my arm is improving and I have no problems using it, tho it is still rather painful. Medical costs nz25.

Because of my having a day off last week when I have not yet accumulated any sick leave, my paypacket is lower this week, only $142, plus 33 disability. Still, that is enough to put aside for bills, nz20 into retirement, 30 for home repairs and 10 into my Travel-the-trans-Siberian a/c. I had 17.10 in my change jar, which helped with buying groceries, and we had the library booksale this week. I restrained myself and only bought nz5 worth.

Actually, I would be alright even if for some reason i didn't get paid at all. The nice thing about having savings is you're no longer continually counting on the next pay. I still had nz85 in my check a/c from last time, so decided to go the end of year dinner with my Toastmasters Club. Very nice Thai restaurant, nz8 - I passed on the green tea icecream.

I have been learning about this group
http://groups.yahoo.com/group/thecompact/

They have decided not to buy anything new except essentials like underwear for the next 12 months. A very good idea for saving the environment, and also for saving $$$. I support it in principle, but I think I've borrowed my neighbor's pruning saw often enough, so I bought one for $nz19.99 at a closing down sale. Also I did buy a very nice navy 2 piece at the Presbyterian Social Support shop for only $1.

First party of the month, a pot luck. I took along the crackers and dip, but there was so much food I wound up bringing it home again. As I am going to be on my own this Christmas, I have decided to invite all my single friends to my place and bring a dish.

Last week I tripped over the phone cord and had a bad fall - my arm was so sore one of my coworkers insisted on driving me to A&E to get it xrayed. Fortunately there was no fracture, but I have a massive bruise on my elbow. However I can still use the arm. I am so glad we have a free hospital system in New Zealand.

End of the month is all good news
I finished knitting a beanie for ds and posted it on time to get cheaper rates.

Income for Nov was the highest it has been in a looong time; $1353.20, and i spent only $668.23. Woohoo saved 50% of my income!

AND the boss asked me if I would be willing to work 30 hours a week until Christmas. My doctor is agreeable to me giving it a trial, so who knows? Maybe next year I will be able to get back to full time work.

Today I decided to clear up my files and put all my papers in order. While I was sorting them out, I came across the letters stating that my mortgage and my student loan had been paid off. I got happy all over again remembering I am debtfree. True, things have not gone so well in the last few years, but I haven't been forced to borrow again, plus the value of my house has gone up. I have had the security of knowing my roof is secure and I have been able to cope on such a low income.

To all you working so hard to pay off debt, keep at it. It really is worth while. You are going to feel so proud of yourself.

One good thing about living in a university town, they are always wanting people to participate in studies, and are usually prepared to pay them. Today I took part in a study on motor control at the Psychology Dept. Very simple; all I had to do was sit at the computer and press either the left or right key, depending on whether a white cross or a green dot came up. Took me 30 minutes and I was given $25. I have to go back next week to do another test, and will recieve another $25 then. I put $5 in my wallet, and am planning to save the rest.

Having posted my goals on Forum, I will put them here where I can keep an eye on them.

1. Save up $5000 in Emergency Fund. Currently at $1380. OMG, have to find $60 a week to get there by DEcember next year.

2. Find a permanent job and save 10% of gross for retirement. The govt saving regulations are changing next July, so may only be allowed to save 8%, in which case, the remainder goes into mutual funds.

3. Pay for essential house repairs in cash. Have $450 in the Freedom Fund at the moment and saving $30 a week.

If I meet all these, I will allow myself the reward of a trip to Australia in December. I have somewhere I can stay for free, so only have to come up with airfare. (Starts searching out budget fares)

Today is damp and misty. I slipped on the path outside and now am nursing a very sore elbow. I'm thankful it wasn't any worse- can still use arm to do knitting and use computer.

The problem was my sneakers, they are very old and worn. So I decided I had better get some new ones and found a pair in Dowsons for $19.95. Grey and yellow. I found 10 cents outside the store.

When I got home my latest power bill had arrived. Because I am now out of the house during the day, it was only $59. I am very pleased as the last few have been quite high.

As New Zealand is ahead of the rest of the world, I have finished the working week before everyone else!

Today I found 30 cents at the bus stop, and spent $nz1.20 coming home from work.

I went out for a potluck tea with some friends tonite. I made my lazy cook's fudge;

Melt 4 oz butter, stir in 2tbs sugar and 1 tbs cocoa powder. Cool slightly and beat in 1 egg. Crush one packet Girl Scout cookies and mix the butter with the crumbs. Press into a foil lined baking tin. Refrij for several hours (overnight if poss). Next day cover with chocolate icing and cut into squares.

As I had all the ingredients at hand it didn't cost me anything.

So the current situation stands as follows:

Check a/c 118
Bill payer 518
House repairs 429
Travel 223
Bonus Bonds 1360

TOTAL 2648 + some cents I haven't added yet.

On Feb 1st I had $3216.38, so it looks as if I've gone backwards, but some of the money I had before was earmarked for spending anyway. (The point of an Emergancy Fund is to use it in an emergency, right?) Still, I wonder if I can get back up to $3000 by the end of this year?

I've been reading a book called "The Luck Factor" by a British professor of Psychology who has been doing research into why some people are lucky and others aren't. Basically it's a question of how you look at things. Lucky people are optimists and unlucky are pessimists. One of the things he gets people to do to become luckier, is to keep a journal where they record lucky things that happened.

I guess this is what I'd like to do with this blog - concentrate on the positive. Each little bit of progress helps me feel more prosperous. So here's the good news for today:

I found 90 cents.
The only money I spent was at the support centre - a 20 cent donation for a cup of tea.
The manager asked me about my long term plans and dropped a hint I may be asked to stay on as a permanent worker if things stay busy.

because a dollar saved now will bring me 5 cents a year forever. I now have $1360 in Bonds. Walking to work I found 50 cents, and on the way back, one of the opportunity shops had a "six items of clothing for a $1" deal. So I got a wool jersey, 2 skivvies, 2 summer tops and a skirt. i also got a big bag of milk powder for $nz7.10, so shouldn't need to spend any more on groceries. I have $9.70 left in my wallet - i wonder if i can gothe rest of the week without spending it?

so I am preparing. In New Zealand, everyone over 65 is currently guaranteed an income which is roughly equivalent to what I earn now ($nz260 a week). However, with the aging Baby Boomers, there are suggestions the retirement age will be increased or the amount may be cut. i would rather have less money now, while there is still a chance to earn and save more, than have less in my old age when I can't work to supplement my income and my health problems will be worse so bigger doctor's bills.

I redid my budget so I can put aside $20 a week into my retirement scheme. Hopefully that will be over $1000 a year. Alas it all comes out of after tax income; there are no rebates for those who don't have the good fortune to work for an employer who offers a retirement scheme. I don't think the govt wants to encourage us to save; it wants us to keep buying and pay the goods and services tax!
Of course you can bet the politicians made sure their own retirement scheme had a generous dollar-for-dollar subsidy out of the taxpayers' pockets. And when they're retired they carry on with all sorts of perks like free travel. I wonder how many disabled people could live on what a Member of Parliament costs the country.

Sis has returned home, leaving her elderly bomb behind for me in exchange for borrowed money. After some thought I decided to sell it.

Reason 1: it is cheaper for me to catch the bus than run a car

Reason 2: house repairs are currently the highest priority

Reason 3: the medication I am on it is not advisable for me to drive.

One ad in the free paper and four potentail buyers later, $500 in my hot little hand.

Since I have been working for one month and the boss says I will be staying to Christmas, AND I have put another $nz100 into savings, I thought I would look round the shops to see what little holiday gifties I would get for people. I had an idea that the best thing I could get for everybody would be piggy banks.

Well, I went into this new gift shop that's recently opened and saw these very eyecatching glittering silver and gold pigs. Big ones. I thought they would be just the thing for my goddaughter, but when I looked at the price I nearly died. would you believe $nz45.95? I thought the idea of having a piggy bank was to save money. Spending all that dough on something to put your pennies in is ridiculous.

So then I thought I would make some myself out of old plastic containers, and glue pictures of flash cars and fancy houses on them, with some glitter. What do you think? Will my loved ones get the message or will they think I'm cheap?

My old Epson has given up the ghost and the man at the shop informed me that kind is no longer being produced. I thought i would have to spend at least $100 for a new one, but a friend of mine had just updated his Canon because he wanted all sorts of fancy features, and offered me his old one for $30. I have just installed it and feel like a computer genius.

only purchases today
ink cartridge nz8.00
bananas for lunch nz0.50

I did a little paint scraping and now have nearly cleaned one window. I spent most of the afternoon knitting. I am giving homemade gifts this year - hats and scarves. I have a TON of yarn in my stash and am not allowing myself to buy any more for 12 months. It's silly to keep on buying new stuff when I'm not using what I've got.

A coupla pizza buns for $nz1.60. Ham and pineapple, mmm...

That is the only money I have spent today. Got inspired by the exercising on some other blogs and decided to walk to work, got a lift back from a coworker.

Oh, and I found 10 cents but gave it to a street collector.