Thoughts Concerning Budget

Now that I have my basic budget I need to see where I can trim some fat.

• Water--The only item I can think of at this time is the need to purchase a low flow shower head. My partner and I both take showers everyday due to our jobs sometimes twice a day depending on the heat. (I work in a powdered metal factory, my partner works in janitorial cleaning the public school, some of the sh*t she has to clean is disgusting.)
• Garbage--Nothing can be changed here; we just got a notice concerning a rate hike
• Sewer--Cost is about 67% of the water bill, if water usage goes down sewer bill should follow suit
• Phone--Short of eliminating phone service completely, this bill is as low as it gets; we only have basic service. Which reminds me I should problably add our tracfones into the budget.
• Heat--I am definitely purchasing a programmable thermostat this year!! With my partner and I both working second shift we should be able to keep the heat fairly low. I currently use different types of window treatments to try and control heat loss during the winter months, but I don't know if it has had much effect in the past.
• Electric--Bill runs about $48 a month, been trying to lower it by switching to CFL bulbs. I have all but 2 lights changed but have not seen any difference, but we run A/C and fans. (Our house is very small with little or no air flow, full sun exposure all day, lousy insulation, lousy everything this also affects heating bill.)
• Satellite--This bill could be lowered by half, but it is our only source of entertainment. We live in the middle of nowhere so our "entertainment" is limited. Altho we do have access to lower cost cable I will not support a family of thieves and liars (Adelphia now known as Zito Media).
• Internet--Can't get any lower that dial-up!!
• Rent--Again cant go any lower.
• Groceries--I'd like to see this cut even more but have run into difficulty due to the hours my partner and I work; 11am-11pm for me partner works 6am-3pm. She's not much of a cook so our microwave and toaster-oven get a workout. There in lies the problem, if I don't pre-make lunch and dinner items we end up spending when we shouldn't be. I have been working on that but I have not been consistent and that makes me wonder if working 2 jobs is actually worth it.

As you can see I have a bit of thinking to do. My biggest concern is whether to continue working 2 jobs. It is a decision I am acting slowly on as I have to consider not only finance issues but health as well.

Financially dropping down to one job should not be an issue IF I can stick to our budget. But that is a big "if" since I seem to be having difficulties with 2 incomes.

My health issues are another story. I have been battling a bad foot/ankle since August--dxd as a grade 2 sprain/ligament tear which developed into tendonitis and plantars facitious (sp?) when I sprained my other ankle 4 months later. I discovered that walking on 2 bum feet is not a good thing. I now have tendonitis in both ankles altho my right one is the worst and is not healing; possible ankle fracture not detected in intial evaluation. I am waiting on another doctors appointment to determine what direction to take (continue to work in current condition with hopes time will heal or short term disability with/without immobilization). My appointment next week will determine whether what direction I take.

Some points that I have to ponder in the near future!!

Still Frustrated but Heading in Right Direction

I HOPE!!

Step 1--Currrent with necessities!! My monthly bills--

• Water--($120/qtr)--$40/mth--$480/yr--$0 current--$124 past due
• UPDATE 7/26/08: Paid in Full--next bill due Sept 28, 2008
• Boro (Garbage)--$14/mth--$68/yr--$14 current--$47 past due
• UPDATE 8/4/08: Paid in Full--next bill due Sept 10, 2008
• Authority (Sewer)--$32/mth--$384/yr--$32 current--$72 past due
• >UPDATE 8/20/08:aid in Full--next bill due Sept 10, 2008
• WS (Phone)--$26/mth--$312/yr--0 current--0 past due
• Fuel (Heat)--$118/mth--$1416/yr--$110 current--0 past due
• AP (Electric)--$52/mth--$624/yr--$52--current--$52 past due
• DTV (Satellite)--$73/mth--$876/yr--$73 current--0 past due
• Earthlink (Internet)--$22/mth--$264/yr--$22 current--0 past due
• Rent--$100/mth--$1200/yr--$100 current--$1600 past due
• Groceries--$300/mth--$3600/yr
• Monthly Total--$477 ($777+groceries)--Yearly Total $5724 ($9,324+groceries)
• Monthly Income (Net) $1216(-2nd income)--
• Yearly Income (Net) $14592(-2nd income)

As you can see I should not be having the problems that I am having. BUT this budget as printed does not include emergencies (ie. medical expenses) and I believe that is how my problems started over 3 years ago. Something to keep in my mind as I work on this.

When I came accross this article I had to take a second look. Altho I use cost per pound I have always looked at food items in terms of cost per serving; it has always seemed more natural to me. Finding this article has helped re-affirm something I have done for a long time.

Cost Per Serving versus Pound by Ellen Lawson Ferlazzo; a different type of tool to cut your grocery bill.

"When you are exploring different ways to cut costs in your grocery bill, one of the things you start paying attention to is the cost per pound of various cuts of meat. You probably see some things that are selling for less per pound than you are used to paying but perhaps the cut of meat is unfamiliar and you are not sure whether something is a good deal or not. How do you compare two different cuts of meat? You want to look at the cost per serving rather than the cost per pound. If something is cheap, but you throw away a lot of bone and fat, then you're paying more per serving than you might realize."

I Found this Article Fascinating

Budgets are great, they keep you in line and they help you reach the goals that you’ve set for yourself and your family. The thing is, there’s a point when the budget stops being a means to an end and they start dominating your life… and that’s when you start tracking things to the penny. Listen, if you’re going to budget, experts advise that you track everything but I’m going to give you a few reasons why you should track to the dollar and not down to every last cent.

Don’t Budget To the Penny

Key points to keep in mind:

1] If It’s Hard, You’re Less Likely To Keep It Up--
2] That Level of Visibility Not Necessary or Useful--
3] That’s Not The Point--

I would have to say I fall in the middle on this issue. Our monthly bills are fairly stable from month to month which makes for easier planning. But when I first tracked out expenses I found that going to the penny was more appropriate.

Our biggest problem has been not saving what we don't need to spend. (And that issue is very complex and gets into messy family dynamics.) One thing I am trying currently is eliminate access to unused income by no longer keeping checks on hand, and not carry my debit card with me thereby using a cash only method of purchase. I am hoping that this will help eliminate spree spending (for lack of better word).

Only time will tell how this will work. Staying motivated will be the biggest issue but I believe that once I actually see some progress in paying off old debts will help keep us on track. It will definitely be and issue to keep tabs on.