Laceshawl's Personal Finance Blog

Ds took off for England this morning, and there is every chance he won't be back for a few years, as he may study or get work over there. I am left sitting round swigging endless cups of tea and contemplating the damage to my account. Of course I had to get him new socks and boxers before he left in case he gets strip searched at the airport, and a haircut so his passport photo would look presentable, plus a celebration night out with the family.

Hmm, did I say this was the month of minimum spending? Well, they say life is was happens when you are making other plans. Now I have to make some more plans to either get a housemate or a parttime job. At the moment I am just relaxing and slowly clearing up the mess in ds' bedroom. Then I shall think about getting some money together so I can go visit him in England.

Out of the blue ds received an offer to go to England, ticket paid for by dad. Great excitement and a furious rush to get things done on time. We had to get an urgent passport. Of course ds having happily blown all his cash on DVDs and satellite TV, despite my best efforts to encourage savings, dear old mum has to come up with the required $NZ300. Aesop should rewrite the fable about the ant and the grasshopper where the ant is too kindhearted to refuse to help the starving grasshopper when winter comes. Never mind, it's a great opportunity for him and I'm really happy. But I shall be lonely when he's gone next week. I shall have to get a housemate, which will help with finances too.

I am now drawing up a list of all the jewellry and things I want ds to buy for me in Europe.

Yes tax is deducted from my benefit. At 15%. Plus there is the Goods and Services Tax on everything I buy. And I pay property taxes to the local council. And tax on the the interest earned on my bank accounts. At 19.5%.

Someone told me about this website staplesrodway.com where NZers can check out their own personal Tax Freedom Day. Mine was on May 17 and I paid a total of $3,736.42. So there, I am a contributing member of society. Now I can use the rest of my money with a clear conscience.

I am thankful I don't smoke, drink or own a car.

Today was very windy. I was struggling past the shopping center when some rubbish blew across my foot. My good angel prompted me to pick it up, intending to put it in the trash. To my surprise it was a scratch-and-win ticket - and it hadn't been scratched! I carefully scatched it off and - ta da! it was worth $5.

It is really neat because I never buy those scratchies. I also found 10 cents by a parking meter. I have been seeing how much money I can find this year, and this brings the total up to $NZ91.65 (We have no notes smaller than $5. It is really nice when I find a gold $2)

Adding up all my various accounts for the end of the month

Cash 14
Chq 165
Bill payer 617
Travel 512
House repairs 406
Russia 767
Energency 626
Bonus Bonds 2440

which comes to a total of $NZ5547. There is something very satisfying about passing the 5000 mark.

I have not totalled all the interest received this month, but as interest rates are quite high in NZ at the moment, I am earning 7.4% on the online emergency savings. This month I got $NZ3.03 after tax.

This month there were 5 paydays, which meant I was able to save $600. So I loosened the purse strings a little and had a chai latte with my friend, $NZ3.50. But I did pass on the decadent chocolate slice.

Well, I'm planning my month on the breadline. My plan is to pay all my usual monthly bills, utilities, ISP etc. I also pay my local body taxes and insurance monthly. It generally comes to around $300 total.

Then I plan to withdraw $40 cash each week from my cheque account, which I will use for groceries and other little incidentals. I'm hoping not to withdraw any other money from any of my accounts. If I can do it it should keep the total below $NZ500 for the month. Then I'll run for Parliament, become Minister of Finance and balance the national budget.

As I'm single and have a small house I can't stock too much bulk food. Besides I have no car so would struggle to get it all home. So what I do is buy one item for the store cupboard each week. I make sure it's something on special that I will really use, like canned tomatoes or teabags. Then, if I'm having a tight week, I make use of my supplies.

Today I made this recipe out of the pantry and frig.
Cook pasta and frozen peas. Make white sauce with half milk and half drained juice from canned pinapple. Add cottage cheese and pineapple to sauce and heat through. Combine.

Last night I found another $1 outside the theatre, and this morning I found 5 cents on the way to church (I dropped it in the plate)

The play last night was about some climbers tramped in a hut, and there were some interesting observations about the kinds of things we think we can't do without. It got me thinking about how much i would be able to cut back if there was a real crunch. So I am going to try it for a month, just spending on the bare essentials. I wonder if I can get it down to $NZ500.

I'll be keeping the Internet connection, as email really is essential for me to keep in touch with my family all over the world. Now I'm thinking toothpaste? Cheese? Plenty of people all over the world manage without all sorts of things. However as it's coming on to winter here I don't intend to do without electricity for heating, and the local council would take a dim view of my walking to the reservoir with a bucket on my head and helping myself to water.

So it will be a basic Western amenities existence, but no frills like dining out, movies, and buying knick knacks.

It's Saturday morning down under. I went round some of the nearby garage sales, but the only thing I bought was a very pretty ring for $2. (Yes I know it's not a necessity, but what's the point of having money if you can't buy something you like now and then) I stopped at the supermarket on the way back and bought

milk NZ1.65
shampoo NZ2.00

There was a phone booth there that I always check out for reject coins (I know, scrooge) I found 30 cents.

When I got back a friend rang to say she had been given tickets to a play and would I like to go with her? So I'm off to gussie myself up.

Ten dollars! I found me a TEN DOLLAR bill just walking across the supermarket lot. There wasn't anyone in sight, so I put $1 from my wallet into the Blind Foundation collection box and then I bought:

eggs
lentils
carrots
cabbage
bread
peanut butter
cottage cheese
rolled oats

All very good value for money. Then I quickly scuttled to the bank and emptied my wallet into my savings account. $105.15 so far this month.

I now have $2,300 in Bonds. This is equivalent to 3 months sickness benefits. I aim to keep saving until I have a years income saved up.

This morning I walked past a store which was advertising, buy $100 worth of clothes and get a free pair of jeans. In another shop window there was a poster which read "My life changed since I got my Grab jeans." Well, I have had some events that changed my life: death of a parent, birth of a baby, moving to another country, developing a major illness, but I honestly can't say my life has ever been altered by buying clothes, regardless of what I believed as a teenager.

So I walked on to the Red Cross opportunity shop and they were having a $1 a bag sale. I got 3 pairs of trousers, 2 skirts, 2 blouses, 3 jerseys and 1 dress for $2. I don't think I'll need to buy any more outer clothes for a year, only socks shoes and underwear.

This weekend we had our annual 24 hour book sale. Nearly all the books were priced at 50 cents, so I got $10 worth, including a copy of the More with less cookbook. The most expensive book I got was a History of rock'n'roll $7.50 for ds. I also got a copy of Psychocybernetics and a book called Money Secrets of the Rich, which I discovered doesn't actually contain much I don't already know. Plus I got some beautiful knitting patterns for 20 cents each.

A few little bits of income have come my way in the last 2 weeks. I got a tax refund of $43.83. I got reimbursed by my Toastmasters Club $30 for an ad I'd placed in the newspaper months ago and practically forgotten about. I knitted a scarf for a friend and she paid me $10.

I also got the statement for my retirement account, and it grew by $2,700 last year. I'm now looking for a little part time job, so I can begin contributing again. I can earn up to $80 a week without it affecting my benefit.

I went out shopping for the first time in a while today and had a great find in my favorite thrift store. 5 cones of yarn for a $1 each, 4 of Shetland wool and one of laceweight. It will keep me happily occupied for a long time. They also had trousers on sale at 2 for the price of 1. I will need to get some more as I have lost weight.

I have been laid low for the last 10 days, so have been watching more TV than I usually do. There is one ad that bugs the H@#$ out of me. This chef tries to make pumpkin soup for the family, but makes such a mess that he has to buy a can of Campbell's soup. Yeah right, it's so hard to make pumpkin soup that we have to buy expensive convenience foods instead. I was cooking entire dinners and baking bread when I was 12 years old. No wonder people are broke when they lack basic skills and have to buy everything. What do they do with the time they save? Watch more TV? Go shopping? Work harder so they can have enough money to pay for all the conveniences?

Hmmf, reminds me I have a whole pumpkin sitting in the frig. I'm off to make me some soup (and cheese scones - can't buy those in a can)

Hmm, something has gone amiss with my tracking. According to the added totals in my littel pocket book notepad:
Income 925.25
Expenses 624.67
Savings 300.58

But when I checked the difference between last month's bank balances and this, I came up with an increase of $346.05. Oh, well it's more money for me.

The banks have sent me statements of interest earned during the year. $70.27 for the main account, and $19.34 for the smaller one. Alas, I have to pay interest at 19.5 cents in the dollar. Don't you think if the govt was really serious about wanting us to save for our retirement, they'd make all savings tax free?

It has been raining steadily and there is flooding in some parts of the area. I decided not to go get groceries, but see if I could feed myself from what I had for a few days.

So tonight I cooked up this recipe:
Cook last of macaroni in package for a few minutes. Drain, reserving cup of cooking water.
Fry half an onion until golden, stir in 1 teaspoon curry powder. Toss in
Half a small rutabaga, chopped and
1 cup cooked red kidney beans, thawed from freezer.
Add the reserved pasta water, cover and simmer until tender. stir in the macaroni and heat through.

Grandma, who learned to cook in the Depression, would have been proud of me.

BTW, a lot of people never think of cooking rutabagas (we call them swedes here) but they are very cheap and nutritious. Use them often in soups and stews.

i decided not to buy the bangle. I figured I can only spend each dollar once, and when I haven't got so many, I need to get the maximum bang for a buck.

I can spend a dollar 3 ways.
I can buy something beautiful because I want it and get a good feeling.
I can buy something useful and meet a need.
If I'm really smart I can buy something that will increase my net worth and bring me the most benefit in the long run.
So I decided instead to stock up on energy saving light bulbs which are on special this week.

Generally, people seem to get most pleasure when they think they have free choice over wehther to buy something. They don't think of taking pleasure in bills they're obliged to pay. When I was in India things were extremely cheap for Westerners and I bought a lot of stuff. I wound up paying excess baggage and when I got back home I gave most of it away. (Come to think of it, my main reason for buying was to show off to my friends). But when i got back home, things I really appreciated were things like reliable electricity and hot water, safe roads, relatively noncorrupt officials, free hospital care and education for all. I don't mind paying things like phone bills and taxes now, because I appreciate the service I get for them. (Tho natch, I don't pay any more than I have to.)

Oh I've got the wants real bad. I volunteer one morning a week in this nonprofit store, and they've got a new range of abalone jewellry in. My absolute favorite color is turquiose/aqaumarine, and this bangle has been enhanced with dyes so the bluey green really comes out. It is just lovely, and only $10.75.

Reasons for not buying:
I have veganish tendencies and don't want to wear animal shell.
I already have several lovely bangels
I already have several turquoise blouses, vests, etc in my wardrobe.
I could use the money to get to another goal sooner.
I need to build up my emergency fund.
It's not on my planned buying list.
I can buy it later if I really want it.
I don't need it.

Reasons for buying.
Other people will admire it.
I have a credit card.

So I asked the manger if I could put it aside until my next volunteer morning. She was agreeable, and now I have a week to think it over and decide where in my budget I will draw allocated money from if I still want it next week.

A cooling off period is a great idea. I should use it more often when I get the impulse to buy - I'm just not sure it would work when I get the munchies ("Can I put this hamburger aside for a week please?")

I have been living in the same house for the last 16 years, with a child, a dog and a cat, so much of my furniture is definitely the worse for wear. I also spent most of my spare money paying down my mortgage as quickly as possible, so I promised myself when I was debtfree I would replace it with decent stuff.

So I drew up this list of what I wanted and stuck it on the frig, and as suitable bargains come along I replace my old stuff. Last month it was the frig itself; this month I found a good condition innerspring mattress for $45. BIL knew I was looking for a computer desk, so when a business he knew went into liquidation, he bought this great desk for $40. Friend also knew I wanted a new garbage can, and bought me one as a present. The old one was still serviceable, but so grungy it drepressed me to look at it. Seems funny to be happy about a new garbage can, but I'm happy with mine.

I know some people claim to be above material possessions, and don't care what their stuff looks like, but if I'm going to have to live with my possessions, I'd like them to give me pleasure to look at as well as when I'm using them. I read somewhere a quote about artists: they are people who are able to make the useful beautiful. I am being a creative artist in gradually transforming my home into a thing of beauty on a budget.

Memo to self: check dates library books are due and get them back on time. $2.40 in fines and it wasn't all that great a book. Grr.

Long before David Bach wrote The Automatic Millionaire, i figured out i needed to make my savings automatic. From my bill paying account, $20 comes out every week into an investment account (used to be retirement, but I can't do that any more), and $25 a month goes into an emergency fund.

But now, I have an extra $5.31 a week, courtesy of the govt's cost of living increase. Well, I know power and property taxes keep going up, so i guess it will get eaten eventually, but in the meantime what to do?

I've wanted to try tai chi for a while, another trip to India would be fantastic,and and and...if I'm not to wind up with a heap of great memories, but suffering in my old age, I'd better make arrangements to put this money somewhere not-get-at-able now. Then I can have the money and use the interest for neat stuff. Guess I'm better beef up the emergency fund a bit faster. Should be able to increase it to $50 a month.

I read in some financial book that the less money poeple have, the more they micromamnge it. Well, I guess my income isn't very big to a financial adviser (the books I read seem toss off figures like $60,000 a year which leave me feeling very small). However, it's accounting for every dollar that got me to my current situation.

I make use off the pay splitting my bank offers. $105 goes every week to a bill paying account. Things like insurance, utilities, are paid automatically out of that account. I never touch it, never worry about paying regular bills. Over time, with the small safety margin I build in, it has got an extra month's worth of expenses in it.

I also have $30 a week going to a "Freedom Fund". This is used for any expenses related to the house, like repairs or buying new appliances. This is the one I need to concentrate on rebuilding, as it took a hammering last month.

The third account is my travel savings account which I use for holidays and trips. It gets $10 a week. At the moment it has $440 in it. I'm trying to get that up too as I want to go to Australia at the end of the year.

That leaves me with $28.29 for variable expenses. I'm happy to say that the annual cost of living increase has just come thru and I'm now getting $53.68 to micromanage. So I have $84.21 in my check account and I'm dividing it as follows:

Medical costs 25.00
Clothes $10 (need new shoes soon)
Toastmasters $20 (saving for 6 month fees)
Personal $5 (haircuts, gifts etc)
Yoga classes $11
Tickets for ballet with friend $10

My son pays me $50 cash each week for rent which I use for groceries and walking around money. I try to save as much of this as possible for my "Travel the Trans Siberian" stash.

Works for me.

Today I got my end of month bank statements, so I decided to make a statement of net worth. I made up a little Excel sheet and listed everthing.

Result
House $130,000
Retirement savings $15,000
All other savings $4,666

Liabilities None

I wanted to see how much of an emergency nest egg I could count on, so I divided the $4,666 by my weekly benefit payment (173.29) and found out it would last over 26 weeks. I am thrilled. Of course some of the current savings is slated for spending on house repairs, holidays, etc, but I would postpone those if I were to suddenly lose my income. My goal is to beef up the amount specifically earmarked for emergencies: I want to have $5,000 in an online account. I also want $5,000 in my "freedom fund" for house repairs etc.

Today I was in town changing my library books. When I walked past one coffee shop, I was given a coupon for a free cappucino. Then I walked past one of the opportunity shops I don't usually go to because it's more expensive than the others. Well! they had closed for the day because it was the end of the season and they were getting new stock in. And get this: they'd put all the remaining unsold stock out in boxes with a sign saying FREE HELP YOURSELF. So I got some things in my size: a navy skirt and 2 cream blouses which will do for work if I get this job, a pair of grey trousers and a casual sweatshirt. They still had the price tags on them and I would have had to pay $30 otherwise.

Then as I was walking home I found a dollar by the parking meter. It went into my change jar, in which I now have $8.40 (I bank it in my "Travel the Trans Siberian" account every time I get to $10)

To top it off my neighbour came over and asked me to feed her cat for the weekend as she was going away. She had some food in the fridge which she said wouldn't last till Monday, so told me to help myself to the milk and vegies.

If only every day could be like this!

Today i went shopping at the supermarket. I carefully checked the pantry and fridge before I went to see what I had, then I drew up a week's worth of nutritious menus. I wanted to keep below $30 so I put down the cheapest veges, and used lots of beans.

When I got to the store, I took my time to check all the prices and adjusted my list to take advantage of manager's specials. I made a couple changes to my menu. I deliberately went midweek early in the morning as I knew the store would not be crowded. When i got to the checkout I remebered the coupon in my wallet because I wasn't feeling hassled. Result: a week's healthy eating at $15.90.
And I avoided all the cookies and tempting treats.

I am feeling very pleased with myself. It's great how paying attention and getting value for money makes the difference between a satisfying purchase and just frittering money away (and feeling dissatisfied afterward). I think I could go the rest of the week without needing to spend any more money.

With everything so up in the air last month I didn't keep track of all my expenses. I was also doing a fair bit of comfort spending at the little coffee-and-muffin shop near the hospital. As near as I can calculate I have spent $55 there, and a total of over $1500 this month. But I did buy a new fridge/freezer, do some necessary repairs round home, pay Toastmaster fees and make a $90 donation to charity. So I guess that's okay, it's just that my savings account is now down to $214 so I need to rebuild it. I also have $2020 in Bonus Bonds which I can borrow against if need be.

On the job front, I have been told about a part-time position at the local library which I have a fairly good chance of getting. I am allowed to earn up to $80 a week before my benefit starts getting cut, but I think I would work at the library for free!! There are also positions at the Art Gallery and Museum of a few hours per week. I have been told I can get help with transport costs as well, tho as they are all not too far from home, I will probably walk.

Because all my work clothes are rather old, I went shopping in the consignment shops this week and found a nice turquoise suit for $15. The only drawback is I will be required to spend money on pantyhose, and I need some new shoes.

Today I went to lunch with a friend. I spent $7.20 - and I don't intend to feel guilty about it. Saving money is not about depriving yourself of things that give you pleasure, when you can afford them. There should be a balance between putting money aside for later and enjoying it now.

I had a relative, born in the Depression, who had a mania for saving every possible cent. Not only did he manage to alienate his family, when he finally got to old age, he was unable to relax and permit himself the things he'd promised himself he'd do when he retired. Although he was practically a millionaire, he lived like a renunciate in a cave. Finally when he died his children inherited his money and spent it all on things like trips which he would have enjoyed, but could never bring himself to do.

There is a difference between being frugal and being a miser.

Over the last 3 weeks I have lost 8 lb. I have another 40 to go (currently 173) My secret is a vegetarian diet and no sweet or salty snacks - at least i don't buy them. I slip up occasionally when I'm having coffee at a friend's. I also do a lot of walking. Not only is the weight falling off, i'm saving money because I'm buying less treat foods. I just don't understand people who say dieting is expensive. Eat lots of oatmeal and beans - they are low in fats and very good for you. And you don't have to buy expensive fruit and veges, potatoes are just fine if you eat them without added fat.

You have to be very skeptical of manufacturer's claims about low fat foods. Most of them have a lot more added sugar which increases the calories. A good site to check out is www.fitday.com You can put in the foods you eat and it will calculate the calories and nutritional value for you.

I knitted a scarf for a friend using some yarn from my stash. She was so pleased she offered to take me to the theater, so I had a great night out for nothing. Hmm, who else do I know that might like to swap favors for nice hand knitted gifts?