Decisions, Decisions

My brain is spinning with numbers, and I don't like it. My brain's been spinning with numbers for the past few weeks now, and I finally decided to blog about it. If for no other reason, in the hopes of making the spinning stop.

Just before Christmas, our sleeper couch (an old, worn leather couch that we got for a steal on Craigslist) broke. After some careful thought and planning - as much planning as you can do in the span of a couple of days - we bought another, brand new set. We had a pressing deadline, nothing was coming up on Craigslist, and what did come up was snatched up within hours. So we took ourselves to our favorite discount furniture store to take advantage of their 20% store wide sale, and plunked down $1000 that we'd not been planning on spending any time soon.

A couple of weeks ago, my beloved camera fell off the counter and broke. Broke the lens, broke the body. Just BROKE. The following morning, my beloved laptop (which, if I'm being honest was already on very borrowed time) chose that moment to give up its ghost and finally die as well. Dead. Fried. Finished. In less than 12 hours span of time, we were in the hole for over another $1000.

Not the most auspicious way to start the new year.

And now, I'm in a financial dilemma. Neither the laptop nor the camera are NEEDS, per se, but very strong wants. We are very fortunate in that we could take a month or two, just pay minimums on our credit cards, and replace them both. But it hurts... literally pains me to take even a month off of aggressively paying our debt. Especially since we already did it in December. I already declined a birthday present (a new tattoo :( ) because I just couldn't, in good conscience, spend $150+ when we have a camera and a computer to replace.

And, if that's not enough, I was going to take a yoga teacher training this year... something I was very, very excited about. We were going to pay for most of it with our tax return, but as it turns out, we greatly overestimated what our tax return would be. We could come up with the money without it, but it would mean a good 4 or 5 months of barely above minimum payments on the credit cards. And again, I just don't know if I could do it.

And just to add to the equation, we decided to take a long-in-coming trip east this summer, for which we recently set up an automatic monthly savings. We're excited, we're ready, and yet that voice is there. Should we really be doing it when we still have all this credit card debt? Is it really the best time to take such an expensive trip? Nothing is set in stone, and I think the only reason I was able to save for it in the first place was because I knew it wasn't for sure; I knew we could still back out if we needed to.

Oh, how much SIMPLER life was when we didn't care; when we wanted something and we put it on a credit card without a thought. How much simpler it was when we just let our debt rack up, and worried about it later. Or someday. Or never.

I don't have the answers yet, but I will. I'm convinced that there has to be a way, has to be some happy middle ground that I haven't yet found. Something that allows us to have what we want and still be responsible and mindful about the goals that we've set.

And maybe then my head will stop spinning.

2010 Roundup and 2011 Goals

2010 is over, and so are our financial goals for the year.  Did we meet them?  Some.  Not all.  Not most.  December saw us with a few setbacks as well, as we were met with unexpected expenses (emergency fund anyone?)  And while we generally do well staying within a budget for our Christmas gift shopping, we usually grossly underestimate what we'll end up spending on "extras" like food, carpet cleaning, and entertainment.  This year we also made an extremely last minute purchase of a new sleeper couch, something we hadn't planned on replacing anytime soon.

Still, it has not been an unsuccessful year.  There is much to be thankful for for sure, and lots of reasons to be positive about heading into the New Year.

Total debt for December:  

Down by $877.22

Total debt for 2010:

Down by $6562.54

In 2011, we'd like that reduction to at least double.  We also plan to:

1.  Pay off two targeted credit cards, leaving just one with a balance

2.  Bring our credit card debt down to 4 figures. (!)

3.  Increase Mike's 401K contributions

and otherwise,

4.  Just keep doing what we're doing.

Best wishes for a happy, healthy and prosperous 2011. 

Debt-Free Christmas & November Numbers

Last month, even before Thanksgiving, we started - and finished - Christmas shopping. Thanks to a budget, our ING Christmas account, and careful shopping, we will enjoy a very nice holiday season without adding to our debt. In fact, while this past month our debt reduction was minimal, December should see us right back to our big payments. It will feel good going into the New Year without the added weight of holiday expenses to worry about!

Total debt for November:
Down by $335.41

Something New

I have a great affinity for trying new things. It bodes well for me that our homeschooling lifestyle is free-flowing enough for me - and the kids - to continually try new things, take up new hobbies, and embark on new adventures. From a monetary standpoint, this has been both a blessing and a curse.

The good: I've explored, and continue to explore, lots of ways to make money (some successful, some not-so-successful) The not as good: I've also explored lots of things that cost money, in some cases a lot of it. $100 for lip-balm making supplies, $50 for ribbons, hair clips and hot glue guns, $40 for a better cupcake tin, flour sifter, and decorating set. Yes, I like to do new things.

This year I've been a little bit more focused. I am one final exam away from becoming certified to be a nutritional consultant, something I've wanted to do for most of my adult life. Next year, God willing, I am going to complete the training to become a registered yoga teacher, before I move on with the Master Herbalist certification, the next piece of the Holistic Health Practitioner Bachelor's degree. All of those things of course cost money, but anything that is furthering a passion (and will eventually lead to a career) is money well spent.

This month, I am writing my second novel for NaNoWriMo, and because that's apparently not enough newness for me, a few days ago I also signed up to be an independent distributor for Beachbody, because I believe in their products.  Beachbody is the company that sells such workout programs as P90X, Insanity, TurboJam, and Slim in 6;  as well as a whole line of supplements including the Shakeology shake.  Because I've actually learned something from all my past endeavors, I know that I am not a salesperson.  I know that approaching strangers, hosting home parties, and passing out catalogs is not for me.  I am however, very excited to apply some of the internet marketing techniques I learned from my last e-course to share both the products and the business opportunity with others.  I'm approaching it like I approach most new things:  as a fun new challenge, and an experiment to see how much I can learn and how far I can take it.

If you want to join me in my challenge, this is a GREAT time to do it, because it is completely free to sign up from now until the end of the year (it is normally $39.95 to get started)  You can check out my website for all the details, or you can just send me good thoughts and good luck, and vibes for another fun and successful venture.  :)

October Numbers

October was a good, good month.  Going full steam ahead into the last couple months of the year.  Total debt for October:

Down by  $1553.51

Book Recommendation - 9 Steps to Financial Freedom

It's not a new book... in fact, it's a decade old.  But I saw it for $2.00 at Goodwill the other day , remembered how much I'd liked it way back when, and thought I'd buy it and give it another read.  It's full of good practical advice on everything from 401Ks to mortgages to life insurance, and she keeps it interesting with lots of personal stories from her clients.  But what I really love about Suze Orman isn't so much her nuts and bolts financial advice (which is of course helpful and sound) as it is the emphasis she gives to the spiritual aspect of money. 

I'm a highly spiritual person, so I believe that everything is spiritually connected, but I think it's easy to lose sight of that when it comes to money.  This book proved to be a good refresher.  Everything from our earliest memories of money, to how we view money, to how we treat it (even in such seemingly trivial matters as how we line it up in our wallets) to how much and with what attitude we give to others.... it's all connected, and it's all important.   Every bit as important - if not moreso - than paying your bills on time.

If you've read it already, it's a good one to re-read.  If you haven't, put it at the top of your next library list.

September Update and Money Issues

First, for some old business:

Awhile back I posted about some news that would have a positive impact on our finances that was not yet official. Well, it's official now and I'm excited to share it. Mike just got another promotion (the second in three months), and has now officially moved from a Manager to a Director position. I am so proud at his growth in the company, as it obviously speaks volumes to their satisfaction with his performance and work ethic. I am also very thankful - very thankful - that in this poor economy that he even has a steady job, one that not only puts food on the table and keeps a roof over our heads, but also allows me to continue to stay home with the kids. It is a blessing, and it's not one I take for granted.

Financially, the past few months have been .... weird. As excited as I've been at the blessing of having extra money, I've also been squarely confronted with the fact that I still have a lot of hang-ups when it comes to money and spending. And just like a dieter can never permanently lose weight until they identify and face WHY they were overweight to begin with, I know that we can never truly be financially free until I deal with my attitude towards money. It still makes me anxious, it stresses me out, and it takes up entirely too much space in my head.

A few weeks ago I went to Hobby Lobby with the kids because they wanted to buy a chemistry set. We spent a long, long time browsing through all the cool science kits, bought the chemistry set and then some, and ultimately spent twice as much as I'd planned. We had the extra money. All our bills were paid, all our cabinets were stocked. We'd paid extra to our credit cards. But I was still so wracked with guilt that I came home and immediately listed some unused Wii games on Ebay to make up the difference. Why? And why, when my sister invited us to go horseback riding (something I really love, and hadn't done in over 20 years), why was my first inclination to say no? Why was my first reaction, "That's crazy, we shouldn't be spending that kind of money"? Is there something wrong with spending money if you have it? Should you not be spending any extra money at all if you're under debt?

I'm not looking for answers to these questions... just sending them out into the great unknown. I've been surprised over the past several weeks, realizing how much work I still need to do.

It's not a bad problem to have though, and I'm thankful I have it. I know it's just another step in the journey. And any step, large or small, is a good thing.

Total Debt for September:
Down by $1101.70




P.S. Thanks to a little bit of sensible prodding from my husband, I did go on the horseback ride. And it was wonderful.