Thankful for Savings - October 2014 Frugal chatter thread

[jasperandchar]

Our debt situation imo is really bad and so we're forced to make some tough decisions we should have made along time ago. When we moved to our current house 4 years ago we owed $30k on our LOC (new trailer and kitchen appliances - most in which we no longer have but are still paying the debt). We now owe around $53k total between LOC, VISA and hardware store card (both cards have low or no interest until Dec or Jan and then must be transferred to LOC). We have been on a vicious cycle of paying down the debt $10k or so then buying something else (trading in vehicles, camping trailer, home repairs and renovations etc....).

It is really hard to make a short term or long term debt repayment plan as DH is on LTD and my income is self employed and can change on a dime. The basic plan for now is:

1) Not incur any more debt for any reason what so ever

2) Make room on the LOC to transfer credit card balances once low interest or interest free period is up

3) Try to sell stuff and add to LOC payment

4) Save an emergency fund and for 2014 income tax

Possible drastic options we are still deciding on are:

- Take SUV off road for winter (to save on insurance/maintenance) or just sell it

- Sell camping trailer or at least put it seasonal somewhere so we don't need SUV to tow it

- Sever off side yard and sell (our property is 136 feet x 120 feet - so more than a double lot) and use profit to pay off LOC (however not sure what all the costs are involved in this or what the lot would actually be worth)

My 2 cents as some of this is very similar to our situations over the course of the last few years

If you park the SUV, you will need a parking sticker but your insurance rates may not go down that much and as for repairs depending on where it's parked the brakes could cease up which would cost you more $ in the long run.

If the SUV is not needed and you can manage with 1 vehicle I would consider selling it to pay down your LOC.

You could always pay someone a few bucks or or ask a friend/neighbour to tow your trailer once you find a seasonal place to set it up but if you are thinking trailer park those places are not cheap.

Perhaps consider setting up the trailer on your other 1/2 of your property and rent it out over the spring/summer?

We did a severance out here in Lanark Highlands 3 years ago and it costed it us $20,000.00 which in the end was not really worth it considering we sold the 2.5 acres parcel to my in-laws cheaper than we would have strangers. But again you will need to pay capital gains on this.

Since your dh is on LTD I would encourage him to still apply for CPPD, he may very well qualify which could improve your monthly income.

[lizzie bargain]

I just want to clarify that we don't always have it altogether . I get frustrated at times by the fact that at least one of our kids seems to have trouble keeping money in his bank account. Thankfully he has been able to pay for studies. But we try and teach them to also save. I am huge on saving for a rainy day so it bugs me when this advice isn't heeded. Thankfully I have a hubby who sits down with this one particular son twice a month to go over his budget and keep him on track. Good thing he is still living under our roof.

I hear you on teaching them to manage money! My daughter says she has learned this month that the less money she takes out of her account at one time the less she spends! She said this morning she has just $18.50 left of her monthly allowance and would try to make it last till the end of the month rather than transfer money from her savings account with her summer job money in it. We packed a lunch for school when initially she planned to buy one! I say-you go girl! I hope she learns these lessons now at 15 rather than when she is much older.

Now if only she would track her monthly spending on a spreadsheet my DH would be happy! I explained to him that I don't think most 15 year olds do this even though it might be a good habit to get into before adulthood-one step at a time!!

[coupon girl]

mind you my son saved as a teenager really well -my daughter another storey-always the latest makeup,clothing etc-but all in all we told them always pay off your credit card and they both follow this rule today (the odd time daughter/hubby has had a bit on hers )-but now that my daughter is 32 i am proud to hear she has a trip fund and a baby fund set up (for the future)plus she live in toronto -expensive city for most

[jasperandchar]

All caught up...you ladies were busy, really appreciate all the answers to the yesterdays Inquiring Minds want to know, very interesting getting feedback, input and plans!!!

Anyone 1 want to post 1???

[Angela273]

Last night the local high school VP called me, but I was already booked to teach for the rest of this week. Today I received phone calls from 3 other schools. One teacher called me to teach for her in early November 1hr away, it is the first time she has booked me...it is typically the VP that does all the bookings. One other day I had to turn down from a different Catholic school 1hr away because I am already booked for the rest of the week. The other call ended up with 2 phone messages for me and I am ultimately going to call back tomorrow and tell them "no thanks." She had spoken with me in the morning requesting 2 full days, but it turned out to only be until 1:15pm each day. One of those days our daycare lady is at the dentist, so I would have to arrange special childcare for the day. This is all in addition to the fact that the school is 25min away. *shrug* The two days that were requested were the end of November and she said that the teacher had something she hand to attend for the day, which means that it is likely that other teachers will also need a sub that day. It would have been for a K/1/2 class.

Anyway, it was a busy day. The principal at the Catholic school that I taught at today complimented me more than once. Definitely nice and he is a reference on my resume.

edit: Dh would like me to keep the Thursday partial day at the school 25min away, but call them back and pass on the Friday of work. Last time I had to put LO with someone else for the day he wasn't treated very well and he ended up with croup. Since he was sick with croup I ended up having to miss 1.6days of work because I was home with a sick 1yr old.

[jasperandchar]

Inquiring Minds Want to Know!!!

**** You don't have to answer the questions if you don't want to - absolutely no pressure to participate.

What are your thoughts on spending $ or as some others call it an allowance for adults & kids.

If your kids get an allowance, do they do chores or something to earn it? And what types of things are they expected to spend their allowances on?

Do you budget for it? if there is the $ to budget with?

Perhaps in the past you got spending $ but at this moment you cannot and that's okay.

In your budget is it a fixed expense/need in your budget and that's okay too? or do you have in another catergory as budgets are all personalized to each individual.

[jasperandchar]

Inquiring Minds Want to Know!!!

**** You don't have to answer the questions if you don't want to - absolutely no pressure to participate.

What are your thoughts on spending $ or as some others call it an allowance for adults & kids.

I think spending $ is important for individuals, however, we currently don't have spending $ and that's okay.

I don't believe in a child getting an allowance for doing household chores as I see it as a contribution to the household, everyone has things they are expected to do to keep the house in order and tidy. Children are responsible for their own rooms as it is their personal space. I never got an allowance as a child and I didn't miss out in my opinion but once in a while I did get a treat

If your kids get an allowance, do they do chores or something to earn it? And what types of things are they expected to spend their allowances on?

My kids don't get an allowance

Do you budget for it? if there is the $ to budget with?

No extras to budget for adult spending monies at this time

Perhaps in the past you got spending $ but at this moment you cannot and that's okay.

In the past dh & I both got spending $ but that was a long time ago, seriously like 8 years ago but to be honest if we wanted something we got it but that has not been the case in the last 2.5 years and that's okay

In your budget is it a fixed expense/need in your budget and that's okay too? or do you have in another catergory as budgets are all personalized to each individual.

**** answers above
When we could afford spending money we didn't per say have a budget back then

[MrsSunshine]

my word.. what a day. im finally back in .. been a long day. will have to go back and see what i missed today.

[saundyl]

For the Till Debt series, I think there were a bunch of criteria, like you had to have areas where they could help, like shopaholic tendancies, high bank fees, unjustified credit card expenses, etc. For people that they can't cut expenses for, they make them have yard sales or make more income somehow. I don't think that show is in production anymore and is in reruns. The host went on to making Princess, Money Moron, and now she's quit TV entirely. If you don't spend frivolously, they couldn't really help.

You can get a lot of good tips from the show like making a budget, tracking expenses, and a general guideline of what percentages to allocate for food, transportation, etc. The debt they get rid of in 3 years or less was consumer debt specifically and didn't include mortgages. Can you imagine if you could get rid of your mortgage in 2 or 3 years? Sign me up!

Oh Lizzie. Please move closer. LO is very cute and she is such a sweet girl. The food is only one of the major issues I have with this daycare. There are so many more, but the hours and distance to the other daycares don't make them options in our single car family.

I actually didnt realize she had quit TV enitrely until last week when i was reading her blog and she wrote "I retired from TV at 54, not because I didn’t love making TV, but because I was being asked to compromise my integrity and couldn’t do that. I can’t make any more TV because of the existing contract from which I “retired.” But I’m still doing radio, writing books (the next one is in edits right now!), writing my blog, and working on my financial literacy initiative. These are all things that make me anything but “retired.” And many also help the money to last a little bit longer."

[saundyl]

Inquiring Minds Want to Know!!!

**** You don't have to answer the questions if you don't want to - absolutely no pressure to participate.

What are your thoughts on spending $ or as some others call it an allowance for adults & kids.

If your kids get an allowance, do they do chores or something to earn it? And what types of things are they expected to spend their allowances on?

Do you budget for it? if there is the $ to budget with?

Perhaps in the past you got spending $ but at this moment you cannot and that's okay.

In your budget is it a fixed expense/need in your budget and that's okay too? or do you have in another catergory as budgets are all personalized to each individual.

I think everyone needs their "thing" to spend money on.

Our boys get a $5 allowance every other week when they are with us.. However they loose it for attitude, being mean to each other and showing elders disrespect. I highly disagree with BF when he allows them to "earn it back" 2 weeks later by doing chores BUT they are his kids and HE has to pay out the allowance if he says they can earn it back.

They are expected to tidy their rooms, put the dogs in and out, clean up after themselves -dishes trash etc in the living room and Show repsect for everyone - each other included. Being asked multiple times to do things and having a tizzy is not acceptable.

Allowance wise - I have $40 budgeted for the boys for the month out of my accounts which includes the allowance as I was the one that posed the suggestion a year and a half ago to give some incentive to do things and quit being mouthy (its worked really really well so far)

Adult allowance - i have a$150 entertainment budget which is where i tend to attribute our splurges of a supper out or a movie night and such.

My Budget inculdes
Water $100
Power$300
Cell $95
Capital 1 payment $50
Car insuarnace$75
business loan payment $565
savings & Emergency fund $50
TFSA $50
"Everything else"- covers meds, household goods, pet stuff, clothes for the boys myself or bf $250
Groceries, - $400
Joint savings $40
Entertainment $150
Car payment $150

i think im missing a category but cant remember right now.

Anything ive over budgeted for the surplus goes into the utilites savings account or attributed to one of the bills bF is responsible for

my 52 Week savings challenge tends to be funded by the Everything else fund when i take cash out and the change remaining goes into that fund which is saved for Christmas and a few extra payments on other debts. Anything i make on computers tends to go into my savings only to be eaten up by emergencies or sports or things like yarn/knitting i will wait until i have a computer job ive brought extra money in for a splurge for that. I rarely spend money on myself for things like clothing or perfumes or even massages. I go to the library for books and download ebooks for reading material.

My emergency account in Sept was eaten up by a Vet visit for Dragon. It was eaten in july for part of the bathroom renos when the tub tipped. the peace of mind having that extra couple hundred dollars available has been nice.

[bobbiegirl2010]

Inquiring Minds Want to Know!!!

**** You don't have to answer the questions if you don't want to - absolutely no pressure to participate.

What are your thoughts on spending $ or as some others call it an allowance for adults & kids.

If your kids get an allowance, do they do chores or something to earn it? And what types of things are they expected to spend their allowances on?

Do you budget for it? if there is the $ to budget with?

Perhaps in the past you got spending $ but at this moment you cannot and that's okay.

In your budget is it a fixed expense/need in your budget and that's okay too? or do you have in another catergory as budgets are all personalized to each individual.

My girls (4 and 8) currently get an allowance equal to their age per week. They tithe 5% to our church and the other 95% they can save for a monthly "shopping day".

Basic chores are:

- cleaning up their dishes after their meal
- cleaning the table off after dinner (8 year old)
- cleaning up playroom and their bedrooms
- putting their laundry in their laundry basket
- putting away laundry once washed and folded (8 year old)

DH and I have been discussing this and our 8 year old should clearly have more "chores" then her 4 year old sister to justify getting a higher allowance. I am planning on developing a chore chart for her. So if anyone else has any more ideas of chores that an 8 year old could do that would be helpful

We have a cash envelope system for our "spending money". We have $500 per month and it's broken down as follows:

$48 Kids Allowances
$172 Entertainment
$80 Church Tithings
$60 Gifts
$40 Hardware Store purchases
$100 Clothing


I think we need more categories because as our "entertainment" budget tends to be more of an emergency fund or get used for other things we just did not budget for such as school trips or gardening supplies.

[bobbiegirl2010]

My 2 cents as some of this is very similar to our situations over the course of the last few years

If you park the SUV, you will need a parking sticker but your insurance rates may not go down that much and as for repairs depending on where it's parked the brakes could cease up which would cost you more $ in the long run.

If the SUV is not needed and you can manage with 1 vehicle I would consider selling it to pay down your LOC.

You could always pay someone a few bucks or or ask a friend/neighbour to tow your trailer once you find a seasonal place to set it up but if you are thinking trailer park those places are not cheap.

Perhaps consider setting up the trailer on your other 1/2 of your property and rent it out over the spring/summer?

We did a severance out here in Lanark Highlands 3 years ago and it costed it us $20,000.00 which in the end was not really worth it considering we sold the 2.5 acres parcel to my in-laws cheaper than we would have strangers. But again you will need to pay capital gains on this.

Since your dh is on LTD I would encourage him to still apply for CPPD, he may very well qualify which could improve your monthly income.

Thank you J & C I really appreciate having someone else's input

The purpose of the SUV is: pull camping trailer, transport daycare kids to school if weather is bad and a second vehicle for me to drive when DH was working. It makes me nervous to not have a second vehicle to fall back on but I've come to the conclusion that it is a "want" not a "need". Its old and we had paid cash for it. It doesn't really cost that much to insure but it has just become a complete money pit and now needs several expensive repairs. I want to sell it now (before we sink anymore money into it) but DH is not ready to part with it and has agreed to just "take it off the road", not do anymore repairs on it and put only fire and theft insurance on it. We'll save the money we're saving in insurance and gas and put that away and see if we can afford the repairs in the spring or decide to sell at that point.

As for the lot, yes we have no idea what the costs are and if it is going to be worth it. I want to talk to a lawyer and a real estate agent first so we know what is all involved before we go ahead and do it.

As for DH, he plans on returning to work once his Dr gives the ok. Because his LTD is a non-taxable benefit we will be getting more gov benefits after we file our 2014 taxes. Lots of govt benefits we haven't qualified for before (ie HST credit) we will be getting next year which will help out. Just got to keep going until then.

[CouponingQueen]

Hey all! I have been in the baking mood lately. Have made a batch of pumpkin muffins and beet brownies

[coupon girl]

-I think I started an allowance many years ago but then stopped i think(they had wonderfull birthday parties over the years )hubby never had a birthday party in his life(I gave him an awesome 40th in our house)it just never worked if they needed money for things they got it(within reason)
-later on from age13 and up (both babysat at 13 for extra money)If they wanted name brand clothing etc they paid half-my son wanted 80.00 jeans at age 16-well then you pay half-they both never had a cellphone til my daughter university , my son last year of high school
-and for my husband and I -our money goes into same pot( I always made lot less than him too)didn't matter i stayed home for 8 years with the children
-we have no seperate accounts-we have been married 35 years remember-we don't buy each other birthday,anniversy or xmas gifts havent for years-it doesnt matter to me(the things he bought early on were wrong sizes,didnt suit my figure etc nope once he bought me a wool like pink and black long skirt/blazer-I wore that lovely outfit out everywhere
we are both very strong savers-o I keep in check what we spend per month-some month more entertainment /eating out more than others but we are very diligent about saving for rainy day(our income may change nextyear in nov/dec so we are saving for then if it does) we dont buy anything unless its broken
-everynow and then hubby will take 60.00 out of bank for his wallet for coffee,small items etc me i dont care to carry around extra money (it works for us thats the thing)

[lizzie bargain]

Bobbie Girl-to add to what J and C said we recently had friends sever a double lot in Saskatoon and they said the cost was about 20,000 as well-ouch( it had a house on though so worth it in their case for resale)! So your idea to research the costs first to see if it is worthwhile makes a lot of sense-and to find out about any capital gains that could be owed. I know if you sell the lot later still attached to your prinicpal residence there are no capital gains on selling a prinicipal residence but don't know if running a home business has any effect on that exemption or not.

With regard to the trailer and the SUV it seemed to me that in watching Till Debt do us Part, that often the husbands were reluctant to part with their "toys" like fancy cars, trucks or boats even if they were bought on borrowed money. Not sure if that is just a guy thing or an ego thing or sometimes I heard it expressed as an entitlement thing on the show as in " I work hard all day and I deserve this". Not to say that applies in your case at all but it was quite an interesting thing I observed-same happened with say having 4 TV's in the house with one of them being the $4,000 model with all the bells and whistles-usually bought on credit of course. Fortunately for me, my DH is not one of the "latest and greatest" gadget guys-give him a laptop and he is happy. However my brother has to have the newest, best electronic gadget going-fortunately he is working and has the funds but he may have to tone it down in a couple of years when he retires.

As for chores for your eight year old they can clean bathroom mirrors, fold laundry, unload the dishwasher etc.

Back to the allowance question-yes we do give DD what I consider to be a generous allowance. She receives $230 per month( from her deceased birth Dad's CPP survivor benefit) but out of this she is learning to budget all her needs/wants-clothes, gifts, entertainment, cell phone etc. Currently it comes in my name for her but from 18-25 it comes directly to her if she is attending school. Therefore I think she should learn to value and budget it now, while we can still guide her. We pay for school supplies/fees though. She is responsible for cleaning her room and bathroom and does her own laundry, packs her own lunch and helps with other chores as requested-eg cooking, clean up after dinner, unload dishwasher etc. When she was younger I did the dollar per year of age too and banked the rest in her RESP.

I do remember when we were kids we got a small allowance and we did help with cooking and cleaning-I also remember that the allowance could be stopped for a week( or more) if we didn't do our chores or if we lipped off to our parents. I remember my brother once saying to my Mum in a disagreement-if your brain was as big as your mouth you would be a genius! He got grounded for a week for that comment!