For some reason I have been unable to log into Everydollar for the last week, which means I am unable to track my expenses for February so far. I think I will do ok without recording as long as I stick to cash and stop spending when I run out - no going into my buffer to get more money, and no borrowing from other envelopes. I do have my change jar if I get desperate.

In: found 50 cents
Out: Marmite $5.50

Today for breakfast I had oatmeal with sultanas and cinnamon; lunch coconut pancakes with lemon juice and sugar; dinner pasta, potatoes, broccoli and chickpeas.

Someone gave me 4 bags of weaving singles. I knew it would take me ages to get round to using them, so I donated them to the annual craft sale.

I am not buying books and today I found in the Lilliput Library a book called Money Success and You by John Kehoe. It turned out to be one of those motivational books that tell you about other rich people. I don't need to be a multimillionaire and I don't want to be famous; I'm just looking for a basic how to on investing.

Winter is having a last little kick so I stayed home and binge watched Dave Ramsey on Youtube. I recommend the debt free screams for anyone who's trying to pay off loans. They made me all tingly and I've been debt free for 15 years. I'm not so impressed by the ones who pay off a huge amount on a big income, but every so often you get a single mom on a low income who's paid off her house.

One thing bugs me, when Dave tells people they should fix their mortgage interest rate, where are you going to find a lender stupid enough to fix for 15 years at these low rates? In this country you can only get 3 years fixed, at a higher rate, and there are heavy penalties for paying it off early.

A fine sunny day, so I line dried the laundry. Then I went for a walk and on the way bought myself a packet of chips. What I gain on the swings I lose on the roundabouts. I shall have to tighten the purse strings to save for Christmas. I am actually thinking I will be buying gifts in India and giving them when I get back.

So far my $20 challenge has been going well. If things keep going well I can see myself continuing this until my EF reaches the goal. I'm still planning to go to India in December, so will be taking a 4 week break, but the money for it will come from my travel fund.

I think I'm mildly addicted to spending. If I go 2 or 3 days without going to the shops I feel antsy and want to go see what there is and buy - something. Usually food but anything just to satisfy the urge. I think it's the power of handing over the money and getting whatever I want in exchange. Most of my purchases are small in dollar terms, but if there's a lot of them they add up. I'm considering having only one spending day a week, where I do all my shopping for groceries and anything else that's needed and pay the bills. The rest of the time stay out of stores. This will force me to make a list, which is the best way I know to save money.

"Everyone has the right to a standard of living adequate for the health and well-being of himself and his family, including food, clothing, housing and medical care and the necessary social services, and the right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control."

United Nations, Universal Declaration of Human Rights, Article 40.

New Zealand is a signatory to this declaration.

Only one purchase today, a big bunch of kale at New World for $2.80. saved $1.20.

I'm disappointed with Financially Free. It has a little bit about saving and budgeting but mostly about prosperity thinking and acting rich to be rich. A jobless person who's about to get their lights cut off might get the impression they just need to tell themselves "I deserve to be rich", go off on holiday and the money will miraculously materialise. I recommend Stop Acting Rich by Tom Stanley as an antidote.

I was browsing a website and a little ad popped up saying "every Kiwi deserves a reliable garage door." Well I'd agree a reliable garage door is a good thing to have, but "deserve" one? How 'bout we work on some other things first, like people in poor countries deserving clean drinking water and every child deserving a safe, loving home.

One of the quotes at the top of the page - by Tom Robbins, I think - read, "There's a Buddhistic calm that comes from having... money in the bank."

It's true, I'm happy and not worrying now I have ten grand in my emergency fund. Of course the money won't prevent stuff happening, but knowing I've taken practical steps to deal with Murphy helps me feel relaxed and capable of dealing with whatever comes along.

I am dealing with the insurance company abou the new place. House - no problem, but when it came to contents I realized I have got rid of so much stuff I am now overinsured. Most of my clothes and furniture is second hand, so the company would not give me much for it, and there is quite a bit I would not bother to replace anyway. Not yet a minimalist with only 100 things, but definitely simplifying my life by reducing my possessions.

So I'm working out a list of things I would replace in the event of a disaster and the cost of doing so, buying quite a bit at thrift stores and will insure for that. My plan is to eventually save up that amount in a special fund and self insure.

I think insurance companies play on the fear factor a lot of the time to get us to take out big policies. Yes catatrophes happen, but not that often, or they wouldn't be making a profit. I want to insure myself against reasonable risk, but not get paranoid about losing my possessions.

The only money that went out today was my church offering. I am adopting the Dave Ramsey mantra "Live like no one else, so later you can live like no one else"

I have been slack about saving over the last few months. I have dad's money tucked away and part of my wages automatically going to retirement, so that's going to be allright. I have been earning more money and it seemed like I didn't have to worry about every cent spent any more so I eased the purse strings and took my eyes off the dream of Financial Independence.

But thinking it over I realise I really do have a realistic opportunity of being FI, and sooner rather than later if I really tighten up on spending now. There is a lot of difference between having to be thrifty when there is no alternative, and choosing to save money in pursuit of a goal. When I had little money I would often rebel and spend on some treat because "I don't have any other indulgences". Now I am going without because I can have it back later on. As Dave Ramsey says, Live like no one else, so later you can live like no one else.

There was an item on the news this morning about borrowing by local councils. One observer reckons it's far too high. Councils used to use sinking funds for capital projects, now they borrow against these funds. A spokesman came on to defend the council saying they used very sophisticated methods to control the debt and some councils had lazy balance sheets - they actually needed more debt.

I'm just a simple soul (it was all those "sophisticated" borrowers that got us into this financial jam). I see only that if you borrow money, you have to pay it back. With interest, so that means you pay more, or rather the taxpayers do. My rates have gone up a lot since the sophisticates took over the council.

Yes I know, you'll save money in the long run because the return on assets is greater than the cost of borrowing. I'll believe next time i see a council project come in under budget. Somehow the cost always requires more borrowing than anticipated and up go the rates again. If these financial clever clogs want to play financial geniuses, they can do it with their own money, not public funds.

I'm grumpy, can you tell I just got my property tax bill?

is sometimes inconvenient, but saves me a lot of money. I get all my exercise from walking so don't have to pay expensive gym membership - can't understand people who drive to the gym and run on a treadmill. Besides, running stuffs your knees. Need to lift weights? Try carrying a 10 kg (22 lb) sack of rice a mile home from the shop - okay, that's beyond me now, but I did when I was young.

Not having a car saves me time. I've been late any number of times when someone offered me a lift because the car wouldn't start or we couldn't find a park.
when I walk somewhere I always know how long it is going to take me and I allow for that. If it's raining I catch the bus, whic is cheaper.

Now you're thinking, yeah but I have a full time job. I don't have time to walk everywhere. Here's the thing; because I don't spend money owning a car I don't have to work as many hours. I can meet all my needs with 30 hours a week - and that leaves me time to walk.

And walking, I spot all those coins dropped by rushing motorists at the parking meters. Found .70 cents today.

Today I cancelled Caller ID. I don't use it much anyway, as several of my friends have private numbers, so I often don't answer and just let people leave a message. Anyway, I worked out that at nz$2.50 a month, at current after tax interest on my new FI a/c, I will have to save $1,000 to be able to afford it in retirement. Am now looking round and calculating how much I need to save for various other unneccessary expenses. About nz$6,000 to afford coffee and tea... another way of looking at the latte factor.

Another pay day and I still had nz$25.20 left in my wallet. Go me! On my way to the bank I found another .20 cents so put $10.40 in my House a/c. The other $15 is sitting in a separate compartment of my wallet in case I need to take a taxi or suddenly decide to do something spontaneous or someone suggests lunch or or or ... any one of a thousand things.

I read somwhere it's a good idea to carry a $100 with you at all times to help you feel prosperous and so you can learn to trust yourself with money. I would be worries I'd blow all that cash so I usually stick any extra in the bank, but I know I can always get it with my card. I hate taking money out of the bank, so it's usually safe. Mind tricks, but they keep me solvent.

I've never liked seagulls since seeing that scary Hitchcock movie. A lot hang around this end of town, scavenging off the student leavings. When the scarfies are in town they live high, but now it is midterm break and the pickings are slim, so they are getting quite agressive. In the long summer vac it's as much as your life is worth to walk across campus eating a sandwich. Ain't they like people who spend it all when they're earning big money, then screech when the source of it goes.

Readers Digest has sent me an opportunity to participate in their latest prize draw for nz$450,000. Nice. Now the question is do I spend .50 cents on a stamp or do not take the risk and buy carrots for tonight's soup? decisions decisions.

I was waiting at the intersection going home, when I saw just down the road a young man trying to cross regardless of blaring horns and screeching brakes. He miraculously got across in one piece and went directly to - the ATM. Now come on laddie. The two minutes it would have taken you to walk to the crossing and wait for the light to change were surely well taken and better than risking life and limb for a few dollars in your pocket immediately. Noone ever died because they were without cash for 5 minutes.

Now all you writers out there, what is the story behind the young man and his desperate desire for dollars. I'll start.

His girlfriend had just walked out on him and he had to get flowers for her before she went back to her ex. He arrived at the florist 2 minutes before closing time and then remembered his wallet was empty. Hence the desperate dash.

Moral: always carry a credit card.

Well, no, that's not the message I want to promote on this blog. I'm sure somebody can do it better. Waht are your ideas?

Check out this website

http://earlyretirementextreme.com/

I guess it's possible to retire in 5 years if you live a bare essentials existence and have a $80,000 income, but when your earnings are much more average and you want some of the things that make life a little more pleasant you're looking at a longer working life.

Still, it got me thinking. If living a minimalist existance for 5 years would guarantee I'd never have to work again, how much would I be prepared to give up?

No car? Don't have one anyway.

Shop in thrift stores forever after? Fine by me.

Never eat icecream and cake again? I guess so.

Give up drinking tea? Umm, I may have to think about this.

Spend the rest of my life knitting from my stash? Noooo you can't do this to me. I defend my right to buy more wool even if I'm working in Mcd's at 90.

How far are you prepared to go?

I borrowed a book from the library last month called The Armchair Economist by Steven Landsburg. I was so diligently perusing it trying to educate myself I forget to return it on time and it cost me 30 cents. Still beats signing up for a semester study on the subject.

I have decided the problem with economists, financial policy advisors and others of that ilk is they are all doing better than average so support whatever system enables them to do well. If economists earned minimum wage I bet we'd see some very different economic theories.

I was working in the shop this afternoon. It's interesting that most people chose to make even small purchases with thier debit card. I guess they just don't carry cash any more. I only made $47 in cash sales, all the rest was electronic transfer of funds. Wonder if they'll do away with cash one day. Hooray - no more balancing the cash register at the end of the day.

I used an online calculator to work out how much I would need to save. At current interest rates, to replace the sickness benefit of $nz190 a week, I would need nz200-300 thousand. That seems so much I got depressed wondering how on earth I could possibly reach that amount.

Then I realised, at the moment I earn $139 a week in the hand, so to get up to $190, I only have to have nz51 a week interest coming in. Much more manageable - smiles again.

The traditional route calls for investing in somewhere like the stock market and letting your gains compound. This does not work for me becuase of the abatement regime. I need to have use of the interest to avoid being squeezed.

So what I am going to do is start paying my savings into an interest bearing investment. As the amount of interest paid to me rises, so the amount I am recieving from the govt will go down. And I can carry on paying a percentage from my jobs into Kiwisaver for retirement. Sorted!

and now there's a new reason for saving. The rating agency Fitch is looking at downgrading New Zealand's credit rating because our national debt levels are so high. That means higher interest rates on money borrowed overseas. They say increasing household savings will help reduce the current account deficit.

I'll let the economists argue about it. I still reckon it's good for my personal economy.

According to the latest news, the governor of the NZ Reserve Bank is urging Kiwis to save and pay off debt in order to help the economy recover. He reckons the property market is recovering here, but if everyone rushes out to buy a house we will get back into a spend and borrow mode and the recession will last longer because the national debt is so high.

Quote:
Bollard said that increased household saving would have the added advantage of providing a more stable source of funds for business investment and expansion, reducing reliance on foreign funding. This would contribute to more stable and lower interest rates, thus promoting a more sustainable growth path

Full story here

http://www.stuff.co.nz/business/2591808/Kiwis-must-save-Boll...


I am feeling very virtuous and patriotic.

So I'm looking sadly at my bank statement and asking myself whether I have any realistic hope of ever being financially independent. Perhaps not, but to me it still makes sense to save as much money from my benefit as I can. I never know when I might need a lump sum for house maintenance or travel to see family, so some needs to be put aside.

Then I think everybody should put something aside for retirement. I don't trust the govt when it comes to promises. Already they have altered the Kiwisaver scheme, and though they say they won't cut superannuation entitlements, I expect they will push the age limit out to 70. I can't see myself working that long.

Yes it is nice, to have time to do things like crafts when I'm on disbility, but basically being dependent on the govt sux. It's trying enough to have to go to the doctor all the time without having to carry forms to be filled in asking you all your personal details. Nothing is private and some anonymous bureaucrat makes decisions about how much money you are entitled to. Even if I was told I have to live on $nz184.17 a week for the rest of my life - the amount I currently get - I would do it happily knowing the money I had was mine and couldn't be taken away for some infringement. Building up my savings is a cushion of freedom for me. It cheers me to think my savings already add up to 2 years income.

Our minister recently resigned and we are looking for a new one. In the meantime we are having a variety of services. This morning we had a DVD called Indescribable, with pictures from the Hubble space telescope. Awesome, and certainly puts my troubles in perspective. It's good to be reminded I don't have to worry about running the Universe, God is doing a fine job, so I can certainly put my trust in Him for my future.

I makes my little plans and dreams my little dreams, but who can tell what the morrow will bring? Even if I never get to be fully Financially Independent, it's still good to remember I have never been without food and clothes to wear. I'm not going to give up planning and dreaming, but I'm not going to obsess with worry over the future either. Sufficient unto the day is the evil thereoff.

I thought I was doing well with the new shawl but I goofed majorly and had to unravel the whole thing. Start again. But the patience I have to exercise is a transferrable skill, especially when it comes to making my money grow.

For both knitting and handling your money you require a pattern, or plan. A few creative geniuses can just start and keep it all straight in their head, but most of us require a vision of what we want to achieve, and the details of how to do it - Written Down!!

Your pattern or plan must match your current skills. Don't expect to do a complex Aran if you're a new knitter, and don't invest in complex tax shelters if you haven't mastered basic budgeting.

It's important to get good advice from experienced people in the craft. This is easy with online communities today.

Be prepared to take time. Knitting is one stitch after another, saving money is one dollar after another. It's better to do a little towards your goal every day than to do a whole load of things one day, then ignore it for weeks on end.

You need the right tools and material for the job. These are simple, but gaining proficiency requires constant practice. You will make mistakes along the way, so be prepared to go back and fix the major botch ups, but don't sweat every little glitch. So long as you stick to your plan you'll be okay.

looks spectacular. I was very careful to spend only on needs, not wants, as I'm saving for Christmas.

Total Income nz$733.26
Expenses $491.24
Savings 242.02

Groceries 100.76
Donations 37.70
Clothes 3.90
Meeting friends for coffee 25.70
Medical 23.00
Local body taxes 90.67
Phone & ISP 67.74
Insurance 49.45
Power 75.00
Misc 17.32

When I go to the shop I feel like the Greek philosopher who went to the market and commented "who would have thought there could be so many things I have no need of." I have basically lost interest in spending money apart from meeting friends for coffee - and I'm reconsidering that expense. I'd rather save up and have a big decent trip than fritter it all away on little bits and pieces that give no lasting satisfaction.