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Mrs Sparkle - Part 1

I'd like to introduce you to Mrs Sparkle, who is the subject of our 2011 Budget Renovation.
Mrs Sparkle is semi-retired at 73 years young. She currently works two mornings a week to supplement her pension and get her mortgage paid off before she gets too much older (her words, not mine).
Since retiring Mrs Sparkle's income has dropped considerably while her expenses have increased. She has found that her food bill has increased almost 50% in the last five years, while utilities have almost doubled.
"The only thing that hasn't gone up is the mortgage," says Mrs Sparkle. "Thank the good Lord I was able to lock in my house repayments when I took the mortgage 23 years ago. I'd never be able to manage the repayments otherwise."
Mrs Sparkle desperately wants to get rid of the mortgage and build a "nest egg" (we call it an Emergency Fund) and a Peace of Mind account for her regular expenses so she can stop worrying about money.
"I'd like to be able to get the fences done, update my little car and rest easy knowing that when a bill comes in the money is there to pay for it."
Like many Australians of her generation, Mrs Sparkle was a stay-at-home mother to her two children, relying on her husband to support the family financially, while she worked to ensure they lived within the boundaries of their income. When her husband retired they lived on his (very) limited superannuation and their pensions and muddled along quite happily.
After his death 9 years ago, things started to get harder for Mrs Sparkle, until all her savings were gone and she relied solely on her part-time job and pension.
So with those things in mind, Mrs Sparkle is going to get a budget renovation Cheapskates style.
Dear Mrs Sparkle,
I feel a little disrespectful telling you what to do with your budget, especially as you already have incredible budgeting skills and a lifetime of experience and knowledge. I feel as though I should be learning from you, so I'm hoping that this year we'll both benefit from your budget renovation.
Of course, the first thing I'm going to ask you to do is track your spending. You've told me you know where your money goes, but having it in black and white in front of you can be a real eye-opener. I don't want you to stop spending, for the next four weeks do your normal shopping, bill paying and spending. Just jot down everything you buy, where, when and how much.
At the end of the four weeks we'll be able to see the pattern in your spending habits. From there we will be able to see the spontaneous purchases and the planned, thoughtful purchases and work out ways to save your money.
Remember, it's not the one big saving that has the biggest impact on our Spending Plans, it's the many little, almost insignificant savings combined that produce the best result.
Mrs Sparkle is semi-retired at 73 years young. She currently works two mornings a week to supplement her pension and get her mortgage paid off before she gets too much older (her words, not mine).
Since retiring Mrs Sparkle's income has dropped considerably while her expenses have increased. She has found that her food bill has increased almost 50% in the last five years, while utilities have almost doubled.
"The only thing that hasn't gone up is the mortgage," says Mrs Sparkle. "Thank the good Lord I was able to lock in my house repayments when I took the mortgage 23 years ago. I'd never be able to manage the repayments otherwise."
Mrs Sparkle desperately wants to get rid of the mortgage and build a "nest egg" (we call it an Emergency Fund) and a Peace of Mind account for her regular expenses so she can stop worrying about money.
"I'd like to be able to get the fences done, update my little car and rest easy knowing that when a bill comes in the money is there to pay for it."
Like many Australians of her generation, Mrs Sparkle was a stay-at-home mother to her two children, relying on her husband to support the family financially, while she worked to ensure they lived within the boundaries of their income. When her husband retired they lived on his (very) limited superannuation and their pensions and muddled along quite happily.
After his death 9 years ago, things started to get harder for Mrs Sparkle, until all her savings were gone and she relied solely on her part-time job and pension.
So with those things in mind, Mrs Sparkle is going to get a budget renovation Cheapskates style.
Dear Mrs Sparkle,
I feel a little disrespectful telling you what to do with your budget, especially as you already have incredible budgeting skills and a lifetime of experience and knowledge. I feel as though I should be learning from you, so I'm hoping that this year we'll both benefit from your budget renovation.
Of course, the first thing I'm going to ask you to do is track your spending. You've told me you know where your money goes, but having it in black and white in front of you can be a real eye-opener. I don't want you to stop spending, for the next four weeks do your normal shopping, bill paying and spending. Just jot down everything you buy, where, when and how much.
At the end of the four weeks we'll be able to see the pattern in your spending habits. From there we will be able to see the spontaneous purchases and the planned, thoughtful purchases and work out ways to save your money.
Remember, it's not the one big saving that has the biggest impact on our Spending Plans, it's the many little, almost insignificant savings combined that produce the best result.
Mrs Sparkle - Part 2
Dear Cath,
This has been a long month for me. Money is a little short right now because of the holidays. I didn't have any work for three weeks and while it isn't much, I did miss the $80.
I need a new lawnmower, my old faithful has given up the ghost and the repair man told me he couldn't fix it, it is just too old. It's done me good service for the last 34 years but I would have liked to have it last at least one more year. It's going to cost too much to get the lawns done by a mower man. I told my neighbour that the fence will have to wait. He suggested I go to the bank and get a loan to pay for it, what do you think? It would solve the problem, the fence is falling down and needs to be replaced.
I have tracked all my spending like you told me to, and it's about what I thought. I don't over-spend, but as you can see I am spending just about everything that comes in so I don't have anything left for saving. What do I do now? I really would like to get the mortgage paid off this year, I have $6,139 left to pay. Not much, but a lot of money to me.
Mrs Sparkle
Hello Mrs Sparkle,
Firstly, whatever you do, don't borrow any money! Apart from your mortgage you are debt free and you want to stay that way. I'm not sure how you'd go getting a loan, but I suspect that irrespective of your age and income, you'd be able to get one simply because of the equity you have in your home. It may seem like an easy solution but it won't be. You'll have the repayments added to your already limited income, which will put such a burden on you. What would happen if you couldn't work any longer? You've already said you missed the money for the three weeks you didn't work, how much harder would it be to repay a loan if you didn't have that money? I don't think it's worth risking your home for a new fence.
Before you even think about replacing fences, get three quotes. You can go to your neighbour and get three quotes each if you like. Then you'll need to decide between you which one to accept. Remember, the cheapest isn't necessarily the best value so look at the details on the quotes carefully. And you are a senior - so ask for a discount.
I hope you have a Seniors Card and I hope you use it. Every state has a seniors card which offers a range of discounts and other benefits to holders. It's also free, although you do need to apply for it. If you don't have one yet, visit the Seniors website (seniors.gov.au) to find out more information.
Have you thought of looking on freecycle for a lawnmower? It's a great way to get the things you need without spending a cent. You can put a "want" ad on the website and hopefully someone will be able to help you out. You can repay the generosity by putting anything you don't want, need or use on the website so that someone can benefit from it. It's a lovely way of recycling and you know your goods are going to someone who really needs them.
In the meantime is there a neighbourhood teenager who could cut your grass for you? Even if it was just once a month it will keep it trim and tidy until you can do it yourself. It won't be cheap I know, but a stop-gap measure until you get your own lawnmower.
You pay your mortgage monthly at the moment. I'm guessing you've always done this. Can you switch to fortnightly payments from now on? Just divide your monthly payment by two and pay that amount each fortnight. At this stage of the mortgage it isn't going to make a huge difference to the interest you pay, but it means you'll be a month ahead at the end of the year, and one month closer to owning your home. You may need to let your lender know what you've done, write them a short note explaining you've changed your way of paying. As long as you meet your monthly requirement you shouldn't have any problem.
You aren't over spending. You are living within your means, which is great. But to save money you need to live below your means. So, hard though it seems, you need to trim the fat.
I've sent you a blank Spending Plan for the next twelve months. Your job this month is to fill it in, as accurately as possible, using bank statements, receipts and your tracking notes. Once you've done this you'll have a reasonably accurate picture of your finances. Once you've done this you can see where to trim.
Groceries obviously will be the easiest to trim. Look at your food buying habits. Do you waste food (which is wasted money)? How often do you throw food into the compost because it's gone off? Is your freezer full of UFOs that you don't use because you don't know what they are? Is your pantry full of food you haven't eaten yet?
February is Essential Spending month, so I want you to join the challenge too. Essential spending only: mortgage, bills that have to be paid, only the food you really need, medicines, petrol if you really need it. See how much you can save this month, you may be able to buy your lawnmower in March!
I've given you a lot of work to do and a lot to think about for the next few weeks. I am confident that you'll be able to do it.
This has been a long month for me. Money is a little short right now because of the holidays. I didn't have any work for three weeks and while it isn't much, I did miss the $80.
I need a new lawnmower, my old faithful has given up the ghost and the repair man told me he couldn't fix it, it is just too old. It's done me good service for the last 34 years but I would have liked to have it last at least one more year. It's going to cost too much to get the lawns done by a mower man. I told my neighbour that the fence will have to wait. He suggested I go to the bank and get a loan to pay for it, what do you think? It would solve the problem, the fence is falling down and needs to be replaced.
I have tracked all my spending like you told me to, and it's about what I thought. I don't over-spend, but as you can see I am spending just about everything that comes in so I don't have anything left for saving. What do I do now? I really would like to get the mortgage paid off this year, I have $6,139 left to pay. Not much, but a lot of money to me.
Mrs Sparkle
Hello Mrs Sparkle,
Firstly, whatever you do, don't borrow any money! Apart from your mortgage you are debt free and you want to stay that way. I'm not sure how you'd go getting a loan, but I suspect that irrespective of your age and income, you'd be able to get one simply because of the equity you have in your home. It may seem like an easy solution but it won't be. You'll have the repayments added to your already limited income, which will put such a burden on you. What would happen if you couldn't work any longer? You've already said you missed the money for the three weeks you didn't work, how much harder would it be to repay a loan if you didn't have that money? I don't think it's worth risking your home for a new fence.
Before you even think about replacing fences, get three quotes. You can go to your neighbour and get three quotes each if you like. Then you'll need to decide between you which one to accept. Remember, the cheapest isn't necessarily the best value so look at the details on the quotes carefully. And you are a senior - so ask for a discount.
I hope you have a Seniors Card and I hope you use it. Every state has a seniors card which offers a range of discounts and other benefits to holders. It's also free, although you do need to apply for it. If you don't have one yet, visit the Seniors website (seniors.gov.au) to find out more information.
Have you thought of looking on freecycle for a lawnmower? It's a great way to get the things you need without spending a cent. You can put a "want" ad on the website and hopefully someone will be able to help you out. You can repay the generosity by putting anything you don't want, need or use on the website so that someone can benefit from it. It's a lovely way of recycling and you know your goods are going to someone who really needs them.
In the meantime is there a neighbourhood teenager who could cut your grass for you? Even if it was just once a month it will keep it trim and tidy until you can do it yourself. It won't be cheap I know, but a stop-gap measure until you get your own lawnmower.
You pay your mortgage monthly at the moment. I'm guessing you've always done this. Can you switch to fortnightly payments from now on? Just divide your monthly payment by two and pay that amount each fortnight. At this stage of the mortgage it isn't going to make a huge difference to the interest you pay, but it means you'll be a month ahead at the end of the year, and one month closer to owning your home. You may need to let your lender know what you've done, write them a short note explaining you've changed your way of paying. As long as you meet your monthly requirement you shouldn't have any problem.
You aren't over spending. You are living within your means, which is great. But to save money you need to live below your means. So, hard though it seems, you need to trim the fat.
I've sent you a blank Spending Plan for the next twelve months. Your job this month is to fill it in, as accurately as possible, using bank statements, receipts and your tracking notes. Once you've done this you'll have a reasonably accurate picture of your finances. Once you've done this you can see where to trim.
Groceries obviously will be the easiest to trim. Look at your food buying habits. Do you waste food (which is wasted money)? How often do you throw food into the compost because it's gone off? Is your freezer full of UFOs that you don't use because you don't know what they are? Is your pantry full of food you haven't eaten yet?
February is Essential Spending month, so I want you to join the challenge too. Essential spending only: mortgage, bills that have to be paid, only the food you really need, medicines, petrol if you really need it. See how much you can save this month, you may be able to buy your lawnmower in March!
I've given you a lot of work to do and a lot to think about for the next few weeks. I am confident that you'll be able to do it.
Mrs. Sparkle - Part 3
Dear Cath,
I can't believe February is over already. I tried to take part in the spending freeze, but it was hard. I had so many unexpected invitations, a couple of birthdays that were planned for and a 50th wedding anniversary dinner/party to go to.
On top of that there were some personal issues that meant I consulted a solicitor and updated my will. It didn't cost as much as I thought it would but still took a chunk out of my savings.
Otherwise I've been muddling along ok. I've decided to get the bus to the pool when I go swimming instead of driving. The saving is a lot - $3.20 for a bus ticket compared to around $9 for petrol! I really don't know why I didn't realise it before. I just put the petrol money aside each week and never gave it a thought. It's so much easier too, parking at the pool is such a hassle and with my knees walking isn't always the easiest. Getting the bus means too that I don't window shop, which usually ends up with me buying something, even if it is just a sausage roll.
I've done my Spending Plan and it was an eye opener. I've gone through all my bills for the last year, and by the plan I should have money over each fortnight! By my purse I don't. I'm sure I haven't forgotten anything, I've even included my 6-weekly hair cut and the out-of-pocket expenses I have when I see the cardiologist every 8 weeks.
Mrs Sparkle's Spending Plan
I can't believe February is over already. I tried to take part in the spending freeze, but it was hard. I had so many unexpected invitations, a couple of birthdays that were planned for and a 50th wedding anniversary dinner/party to go to.
On top of that there were some personal issues that meant I consulted a solicitor and updated my will. It didn't cost as much as I thought it would but still took a chunk out of my savings.
Otherwise I've been muddling along ok. I've decided to get the bus to the pool when I go swimming instead of driving. The saving is a lot - $3.20 for a bus ticket compared to around $9 for petrol! I really don't know why I didn't realise it before. I just put the petrol money aside each week and never gave it a thought. It's so much easier too, parking at the pool is such a hassle and with my knees walking isn't always the easiest. Getting the bus means too that I don't window shop, which usually ends up with me buying something, even if it is just a sausage roll.
I've done my Spending Plan and it was an eye opener. I've gone through all my bills for the last year, and by the plan I should have money over each fortnight! By my purse I don't. I'm sure I haven't forgotten anything, I've even included my 6-weekly hair cut and the out-of-pocket expenses I have when I see the cardiologist every 8 weeks.
Mrs Sparkle's Spending Plan
Income (Fortnight:) $796.10
Outgoings: Food Electricity Phone Mobile Phone Gas Water Council rates Chemist Doctors Bus fares Bowling Swimming Clothes/hair House insurance Car (rego, insurance, petrol & repairs) Birthdays Christmas Total: Surplus: |
$120.00 30.00 25.00 7.50 5.00 3.00 33.00 45.00 20.00 19.20 17.00 14.40 4.00 35.00 150.00 15.00 15.00 558.10 $238.00 |
All the best,
Mrs Sparkle
Dear Mrs Sparkle,
What a social life you lead! As long as you haven't overspent then enjoying time with family and friends is not a problem, even during a Spending Freeze. I understand how things crop up, and you had some of the events already covered so don't worry. The Spending Freeze is just a game we play, it's not a life or death event. You can always try for March, there are quite a few Members who didn't make it for February who are going to be brave and stop spending for the next 31 days, perhaps you'd like to join them.
How did you pay the solicitor's fees? I understand that they were a one-off expense, but as you don't have anything listed for an Emergency Fund I'm hoping you paid them from savings and didn't resort to credit.
Your Spending Plan is fine. As long as you have all your spending covered, and well covered, then the excess could go into your fence fund and towards building an Emergency Fund and Peace of Mind Account. Yes, even though you own your home and car, you still need an emergency fund and a Peace of Mind account. If you had an active Peace of Mind account then you wouldn't be saving for the new fences now, you would have had the money to pay get them done.
And yes, even though you are receiving a pension, an emergency fund is still a good idea. It gives you a little breathing room and assurance in your Spending Plan.
So where is that surplus $238 going each fortnight? It's back to basics and step 1 in living the Cheapskates way. Track your spending for the next 31 days. Record every cent you spend, how you spend it, when you spend it and what it went on. Jot down all your bills, shopping, petrol, activity costs etc so we can see where the leaks are. If that money isn't in your bank account or your purse it has be to going somewhere and we need to find out where.
I'm not suggesting for one minute that you stop spending and go without the things you want. There is no need for that, it would be a miserable existence. We live the Cheapskates way so we have the money to enjoy the things that are important to us, not to build a hefty bank balance and live like misers.
Ok, grab a notebook and a pen and remember to record, record, record for the next 31 days.
Good luck, I can't wait to see the results.
Mrs Sparkle
Dear Mrs Sparkle,
What a social life you lead! As long as you haven't overspent then enjoying time with family and friends is not a problem, even during a Spending Freeze. I understand how things crop up, and you had some of the events already covered so don't worry. The Spending Freeze is just a game we play, it's not a life or death event. You can always try for March, there are quite a few Members who didn't make it for February who are going to be brave and stop spending for the next 31 days, perhaps you'd like to join them.
How did you pay the solicitor's fees? I understand that they were a one-off expense, but as you don't have anything listed for an Emergency Fund I'm hoping you paid them from savings and didn't resort to credit.
Your Spending Plan is fine. As long as you have all your spending covered, and well covered, then the excess could go into your fence fund and towards building an Emergency Fund and Peace of Mind Account. Yes, even though you own your home and car, you still need an emergency fund and a Peace of Mind account. If you had an active Peace of Mind account then you wouldn't be saving for the new fences now, you would have had the money to pay get them done.
And yes, even though you are receiving a pension, an emergency fund is still a good idea. It gives you a little breathing room and assurance in your Spending Plan.
So where is that surplus $238 going each fortnight? It's back to basics and step 1 in living the Cheapskates way. Track your spending for the next 31 days. Record every cent you spend, how you spend it, when you spend it and what it went on. Jot down all your bills, shopping, petrol, activity costs etc so we can see where the leaks are. If that money isn't in your bank account or your purse it has be to going somewhere and we need to find out where.
I'm not suggesting for one minute that you stop spending and go without the things you want. There is no need for that, it would be a miserable existence. We live the Cheapskates way so we have the money to enjoy the things that are important to us, not to build a hefty bank balance and live like misers.
Ok, grab a notebook and a pen and remember to record, record, record for the next 31 days.
Good luck, I can't wait to see the results.
Mrs Sparkle - Part 4
Dear Cath,
Another month over already. My year of renovating is going so fast.
Thank goodness March has been a very quiet month, socially and financially. Only the regular bills and no unexpected expenses. I have spent a little and bought some new winter clothes that were much needed. I laughed to myself when I got them home and went to put them away - I had five new garments so I took five old ones out of the wardrobe and put them straight into a bag to go to the Brotherhood Bin. Then I used the hangers they were on to hang my new clothes. Last year I would have squashed everything up and found five new hangers! No wonder I had lots of clothes and nothing to wear.
The mild weather has been good for my veggie plot too. I've planted potatoes, cabbages, cauliflowers, silverbeet, beetroot, peas, beans, lettuce and broccoli. The cabbages and cauliflowers are a "mini" version - just the right size for me. Being on my own a full-sized cabbage or cauli would go black before I could use it all up. The cabbages are almost baseball size and I can't wait to start picking them.
I have also put in a rhubarb crown, given to my by a friend. I love rhubarb and it is so expensive to buy. This time next year I'll be picking my own and enjoying rhubarb and apple crumble.
The school holidays are just a couple of weeks away and I am going to be looking after my grand-daughter some of the time, hopefully it won't be too expensive.
Now onto business.
Honestly I was stunned that I had so much money left over each fortnight, or at least that I should have so much money left over. I've been tracking my spending, and it shows it's been a quiet month too. There are more no-spend days than there are spend days, and even those are mostly for bills and necessary expenses (chemist, food etc). It's still an eye opener isn't it, just what we spend our money on? I was sure I'd remember without writing it down simply because I don't do a lot of shopping, but there's no way I could remember everything. I had to use the dockets to make sure I recorded it all.
I have found a NAB bank account without fees that pays a little interest (surely a little is better than none) and I've opened it to use for my emergency fund. The teller at the bank was very helpful and helped me set up an automatic transfer each week of $50 for my emergency fund and I'm saving $50 a week for the fence fund. The other $38 is going towards a new lawnmower. I am going for a push mower rather than a motor mower. I'm getting older and starting a motor mower is a little difficult these days so I'll get some exercise by pushing the mower around. Once I've bought my new mower, it will go into my Christmas/holiday/fun part of my Spending Plan. This should well and truly cover Christmas and family birthdays and give me some fun money through the year. That's the plan anyway.
I can't tell you how liberating it is to feel in control of my money again. I didn't realise I was so worried about money until you started the budget renovation. I hope I never lose control again.
Mrs Sparkle
Dear Mrs Sparkle,
You are a champion!
Good on you for tracking your spending. It's the first thing I suggest people do when they want to save money and cut expenses, yet for most people it's the hardest thing to do. It gives you such a good overall look at where your money goes on a day to day basis, it really is eye opening.
And congratulations on your veggie garden. Ours is looking quite good too, the rain we've had has been a good boost. I think everyone should consider growing at least a portion of the food they eat. Even the smallest garden or unit with a sunny window can hold a garden.
Are you growing your veggies from seed? It's surprisingly easy to do and so much cheaper than buying seedlings. You can start them off in egg cartons and move them into small pots before transplanting in the garden. A packet of seeds costs a little less than a punnet of seedlings, but you get 10 - 50 times more seeds. If you're not doing this already, think about it. The saving can be significant if you are going to continue growing your food.
I'm so excited that you've started your Emergency Fund. While a certain percentage of your income is guaranteed by your pension, having a cash back-up takes the pressure off if the fridge needs repairs or the washing machine conks out. It won't be long at all before you have it built up to three months income.
Have you started paying your mortgage fortnightly? How is it going? Remember it won't save you a lot in interest at this point but it will get you a little ahead and give you breathing space.
Good news on the mower front. Remember to do your homework and shop around. Haggle for the best deal, ask for a Seniors discount and pay cash so you can negotiate a cash discount too.
School holidays don't have to cost you a lot of money. Why not take your grand-daughter on a tram ride into the city and have a look at the Museum one day. Take your lunch and some drinks and snacks and it will only cost you $11.60 for fares, entry to the museum is free for Concession card holders and children under 16. Scienceworks is another fun outing that will cost you the same fare, and an additional $9.50 if you add the Planetarium to your visit. Depending on your granddaughter's age, the Planetarium is well worth it.
Your local library may have some activities planned for the holidays, and even if there aren't, a trip to the library can be a lot of fun. If your granddaughter isn't a member perhaps you can help her join and start to learn the value of libraries.
And don't think that you have to go out to have fun. Perhaps you could teach her to cook. Make scones and have them for afternoon tea or perhaps cook pancakes and have them for lunch.
Easter falls during the school holidays so perhaps you can make Easter eggs, or dye some hard boiled eggs for something a little different. Then make baskets for them out of scrap paper and make little Easter hampers for her friends.
I'm sure you'll find plenty of things to do with her that won't cost a fortune, if anything at all.
Another month over already. My year of renovating is going so fast.
Thank goodness March has been a very quiet month, socially and financially. Only the regular bills and no unexpected expenses. I have spent a little and bought some new winter clothes that were much needed. I laughed to myself when I got them home and went to put them away - I had five new garments so I took five old ones out of the wardrobe and put them straight into a bag to go to the Brotherhood Bin. Then I used the hangers they were on to hang my new clothes. Last year I would have squashed everything up and found five new hangers! No wonder I had lots of clothes and nothing to wear.
The mild weather has been good for my veggie plot too. I've planted potatoes, cabbages, cauliflowers, silverbeet, beetroot, peas, beans, lettuce and broccoli. The cabbages and cauliflowers are a "mini" version - just the right size for me. Being on my own a full-sized cabbage or cauli would go black before I could use it all up. The cabbages are almost baseball size and I can't wait to start picking them.
I have also put in a rhubarb crown, given to my by a friend. I love rhubarb and it is so expensive to buy. This time next year I'll be picking my own and enjoying rhubarb and apple crumble.
The school holidays are just a couple of weeks away and I am going to be looking after my grand-daughter some of the time, hopefully it won't be too expensive.
Now onto business.
Honestly I was stunned that I had so much money left over each fortnight, or at least that I should have so much money left over. I've been tracking my spending, and it shows it's been a quiet month too. There are more no-spend days than there are spend days, and even those are mostly for bills and necessary expenses (chemist, food etc). It's still an eye opener isn't it, just what we spend our money on? I was sure I'd remember without writing it down simply because I don't do a lot of shopping, but there's no way I could remember everything. I had to use the dockets to make sure I recorded it all.
I have found a NAB bank account without fees that pays a little interest (surely a little is better than none) and I've opened it to use for my emergency fund. The teller at the bank was very helpful and helped me set up an automatic transfer each week of $50 for my emergency fund and I'm saving $50 a week for the fence fund. The other $38 is going towards a new lawnmower. I am going for a push mower rather than a motor mower. I'm getting older and starting a motor mower is a little difficult these days so I'll get some exercise by pushing the mower around. Once I've bought my new mower, it will go into my Christmas/holiday/fun part of my Spending Plan. This should well and truly cover Christmas and family birthdays and give me some fun money through the year. That's the plan anyway.
I can't tell you how liberating it is to feel in control of my money again. I didn't realise I was so worried about money until you started the budget renovation. I hope I never lose control again.
Mrs Sparkle
Dear Mrs Sparkle,
You are a champion!
Good on you for tracking your spending. It's the first thing I suggest people do when they want to save money and cut expenses, yet for most people it's the hardest thing to do. It gives you such a good overall look at where your money goes on a day to day basis, it really is eye opening.
And congratulations on your veggie garden. Ours is looking quite good too, the rain we've had has been a good boost. I think everyone should consider growing at least a portion of the food they eat. Even the smallest garden or unit with a sunny window can hold a garden.
Are you growing your veggies from seed? It's surprisingly easy to do and so much cheaper than buying seedlings. You can start them off in egg cartons and move them into small pots before transplanting in the garden. A packet of seeds costs a little less than a punnet of seedlings, but you get 10 - 50 times more seeds. If you're not doing this already, think about it. The saving can be significant if you are going to continue growing your food.
I'm so excited that you've started your Emergency Fund. While a certain percentage of your income is guaranteed by your pension, having a cash back-up takes the pressure off if the fridge needs repairs or the washing machine conks out. It won't be long at all before you have it built up to three months income.
Have you started paying your mortgage fortnightly? How is it going? Remember it won't save you a lot in interest at this point but it will get you a little ahead and give you breathing space.
Good news on the mower front. Remember to do your homework and shop around. Haggle for the best deal, ask for a Seniors discount and pay cash so you can negotiate a cash discount too.
School holidays don't have to cost you a lot of money. Why not take your grand-daughter on a tram ride into the city and have a look at the Museum one day. Take your lunch and some drinks and snacks and it will only cost you $11.60 for fares, entry to the museum is free for Concession card holders and children under 16. Scienceworks is another fun outing that will cost you the same fare, and an additional $9.50 if you add the Planetarium to your visit. Depending on your granddaughter's age, the Planetarium is well worth it.
Your local library may have some activities planned for the holidays, and even if there aren't, a trip to the library can be a lot of fun. If your granddaughter isn't a member perhaps you can help her join and start to learn the value of libraries.
And don't think that you have to go out to have fun. Perhaps you could teach her to cook. Make scones and have them for afternoon tea or perhaps cook pancakes and have them for lunch.
Easter falls during the school holidays so perhaps you can make Easter eggs, or dye some hard boiled eggs for something a little different. Then make baskets for them out of scrap paper and make little Easter hampers for her friends.
I'm sure you'll find plenty of things to do with her that won't cost a fortune, if anything at all.
Mrs Sparkle - Part 5
Dear Cath,
Another month down and I am loving my Cheapskates life. Even my children have noticed a difference in me, my son tells me I look younger and less stressed. I asked him what he wanted, he assured me he didn't want anything. I do feel better, more in control of my own life. I know it sound silly but after my husband passed away I became scared of how I would manage. It seemed that instead of life getting easier as I got older it just got harder and having to use my savings was really worrying me.
My little job, as I call it, keeps me young and gives me that little extra money I need to feel secure. It may be psychological but I don't care. Already I have some savings and goals for them. That new lawnmower is getting closer, I've been looking around and pricing them and plan to buy one before the end of the month.
I had a lovely time with my little grand-daughter over the holidays. She made me laugh though. We went to the movies one day (local, cheaper cinema) and I took our lunch for a picnic after. When the movie was over she wanted to look at the shops so off we went. Then we had our lunch in the park and took the bus back home. We were out for hours and had a ball and all it cost was our bus tickets and the movie tickets, under $20 for the day.
Yes, I bought packets of seed from the Reject Shop for 99c to grow my veggies. I've been planting a few seeds every two weeks to stagger the growing. I don't need to have half a dozen of anything all ripe at once, I'd never be able to use them just cooking for one.
I've been looking for a new skirt and found one, but it was $75, far more than I was prepared to pay so I left it. When I checked back the next week the skirt was marked down to just $20 and they only had them in my size. I bought it straight away and I am thrilled with it and the price.
The automatic transfer for my savings seems to be working very well. I don't have a computer but I check the balance each week so I can keep track of it. I am old fashioned I know but I like facts and figures on paper.
With winter coming on the heater needs to be serviced, which will be around $220 I think, going on last year and adding a little for inflation. The money is there for it, in my spending plan, thanks to Cheapskates and your advice. So far I haven't had the heater on, the weather has been mild. I am worried about winter though, I keep hearing that power bills are going to increase so much. I will have to cut back even more or find other ways to keep warm if the bills go up too much.
Otherwise I'm rolling along really well.
Mrs Sparkle
Dear Mrs Sparkle,
You always make me smile. What an inspiration you are, I only hope I have your positive attitude when I'm your age.
The day with your granddaughter sounds lovely and $20 for a day of memory making isn't too much. I bet she'll remember the day you took her to the movies and then had a picnic in the park forever and love you all the more for the time you spent with her.
I suggested we get a push mower for the lawns too. I think they are wonderful idea, and they are not overly expensive, although I did find one that cost more than our motor mower! But I think it was the deluxe of deluxe models. I love the idea of being able to cut the grass without paying for fuel or adding to the pollution problem so I'll keep working on it. Perhaps we can buy them at the same time and negotiate a deal for a better price!
Well done on the skirt too. Nine times out of ten waiting pays off, even if it's just because you change your mind. Have you worked out a per wear cost for your skirt? By that I mean if you only wear it once then it has cost you $20 to wear it. If you wear it ten times, that's just $2 a wear. Of course if you love it and wear it 50 times then the per wear cost would only be 40 cents a wear. Determining the "per wear" cost of a garment can really help you decide whether or not to buy it. Twenty dollars per wear doesn't sound such good value, but if it's 40 cents a wear then it's far more affordable.
Try not to worry too much about the cost of power, there's nothing you can do about the price. You can however control your usage. The mild autumn weather has been a blessing, for heating and veggie growing. When the days and nights start to cool down there are some simple things you can do to keep the power use down.
Make sure all your windows and doors are draft-proof. Use sausages against your external doors to stop warm air escaping and cold air coming in under them. Draw your curtains at night and open them during the day to let the warmth from the sun in. Close the doors to rooms you aren't using. It costs a lot of money to heat them and it's a waste if you aren't using them. And dress appropriately. We are spoilt with air-conditioning wherever we go and don't dress for the season.
Your fellow Cheapskaters have some great ideas. You'll find them here, in the article Keeping Warm This Winter
Another month down and I am loving my Cheapskates life. Even my children have noticed a difference in me, my son tells me I look younger and less stressed. I asked him what he wanted, he assured me he didn't want anything. I do feel better, more in control of my own life. I know it sound silly but after my husband passed away I became scared of how I would manage. It seemed that instead of life getting easier as I got older it just got harder and having to use my savings was really worrying me.
My little job, as I call it, keeps me young and gives me that little extra money I need to feel secure. It may be psychological but I don't care. Already I have some savings and goals for them. That new lawnmower is getting closer, I've been looking around and pricing them and plan to buy one before the end of the month.
I had a lovely time with my little grand-daughter over the holidays. She made me laugh though. We went to the movies one day (local, cheaper cinema) and I took our lunch for a picnic after. When the movie was over she wanted to look at the shops so off we went. Then we had our lunch in the park and took the bus back home. We were out for hours and had a ball and all it cost was our bus tickets and the movie tickets, under $20 for the day.
Yes, I bought packets of seed from the Reject Shop for 99c to grow my veggies. I've been planting a few seeds every two weeks to stagger the growing. I don't need to have half a dozen of anything all ripe at once, I'd never be able to use them just cooking for one.
I've been looking for a new skirt and found one, but it was $75, far more than I was prepared to pay so I left it. When I checked back the next week the skirt was marked down to just $20 and they only had them in my size. I bought it straight away and I am thrilled with it and the price.
The automatic transfer for my savings seems to be working very well. I don't have a computer but I check the balance each week so I can keep track of it. I am old fashioned I know but I like facts and figures on paper.
With winter coming on the heater needs to be serviced, which will be around $220 I think, going on last year and adding a little for inflation. The money is there for it, in my spending plan, thanks to Cheapskates and your advice. So far I haven't had the heater on, the weather has been mild. I am worried about winter though, I keep hearing that power bills are going to increase so much. I will have to cut back even more or find other ways to keep warm if the bills go up too much.
Otherwise I'm rolling along really well.
Mrs Sparkle
Dear Mrs Sparkle,
You always make me smile. What an inspiration you are, I only hope I have your positive attitude when I'm your age.
The day with your granddaughter sounds lovely and $20 for a day of memory making isn't too much. I bet she'll remember the day you took her to the movies and then had a picnic in the park forever and love you all the more for the time you spent with her.
I suggested we get a push mower for the lawns too. I think they are wonderful idea, and they are not overly expensive, although I did find one that cost more than our motor mower! But I think it was the deluxe of deluxe models. I love the idea of being able to cut the grass without paying for fuel or adding to the pollution problem so I'll keep working on it. Perhaps we can buy them at the same time and negotiate a deal for a better price!
Well done on the skirt too. Nine times out of ten waiting pays off, even if it's just because you change your mind. Have you worked out a per wear cost for your skirt? By that I mean if you only wear it once then it has cost you $20 to wear it. If you wear it ten times, that's just $2 a wear. Of course if you love it and wear it 50 times then the per wear cost would only be 40 cents a wear. Determining the "per wear" cost of a garment can really help you decide whether or not to buy it. Twenty dollars per wear doesn't sound such good value, but if it's 40 cents a wear then it's far more affordable.
Try not to worry too much about the cost of power, there's nothing you can do about the price. You can however control your usage. The mild autumn weather has been a blessing, for heating and veggie growing. When the days and nights start to cool down there are some simple things you can do to keep the power use down.
Make sure all your windows and doors are draft-proof. Use sausages against your external doors to stop warm air escaping and cold air coming in under them. Draw your curtains at night and open them during the day to let the warmth from the sun in. Close the doors to rooms you aren't using. It costs a lot of money to heat them and it's a waste if you aren't using them. And dress appropriately. We are spoilt with air-conditioning wherever we go and don't dress for the season.
Your fellow Cheapskaters have some great ideas. You'll find them here, in the article Keeping Warm This Winter
Mrs. Sparkle - Part 6
Dear Cath,
I've made a decision! I'm going to install solar power in my house. The problem is I have to rush my decision. I know I've had a long time to think about it but I really didn't think I could afford it, even with the rebates available. Now I realise that I have enough money saved to be able to pay for it, with the rebates of course, and hopefully it will pay my power bill at the very worst. At best I'll be paid for the power it puts back into the grid.
It means I'll be using up all my savings and I'll have to put the fences off. But if I don't have a power bill to pay, then I can bank that money towards the fences and still get them done this year.
With winter coming and all the news about power bills going up 100%, I've even heard 300%, I think this will be a wise use of my savings. The back of my house faces to the north and gets sun all day, even in winter, so I've been told it's a good roof for solar panels.
I'm getting three quotes and my brother-in-law is going to help me do the comparisons to make sure I get the best system for my money.
I'm really excited about this project. Apart from this nothing much has happened this month. I picked up some marked down meat and vegetables at the supermarket and made two stews and a big pot of soup, my favourite winter meals. I put 20 meals in the freezer so I have plenty of lunches and easy dinners and I only spent $21, so each meal is just $1.05! I think that's a bargain, don't you?
I've really started breaking down the cost per meal when I do my shopping and I try to aim for $2 or under for lunches and dinners and $1 or under for breakfast. I'm trying to get my grocery bill down to $35 a week without going hungry or eating mush. So far it's working well, I've become so good at spotting the markdown labels on meat and vegetables. Of course cooking all my meals really helps to keep the bill down too.
I guess that's all I have to report for May, so I'll sign off.
Mrs Sparkle
Dear Mrs Sparkle,
Solar panels - that's great news. I agree that it's a big step, if you are confident you can pay the bill and then rebuild your savings quickly go right ahead. It's lovely that your brother-in-law will help you do the comparisons.
It is going to be a rushed decision so don't forget to ask lots of questions when you get the quotes and get everything, and I mean everything, in writing, including exactly what is covered by the price, warranties and the installation costs.
I love your attitude to cutting your grocery bill. I love a good markdown myself, I get a real thrill when I can put marked down meat and vegetables in the freezer and know I've saved money. I think $1.05 a meal is excellent, especially as you are getting good, hearty and healthy meals.
How is your garden going? With the cooler weather it might be slowing down, but don't stop planting and growing. Remember, food you grow yourself is a genuine bargain and good for you. It will help bulk out your $35 grocery budget and give you more money to spend on other groceries.
Don't forget that on your winter power bills as a pensioner you will have a discount available, make sure you pay the discounted total. Every little bit helps and it's there for you, so take advantage of it.
Let me know how you go with the solar panel installation, I'll be waiting to hear.
I've made a decision! I'm going to install solar power in my house. The problem is I have to rush my decision. I know I've had a long time to think about it but I really didn't think I could afford it, even with the rebates available. Now I realise that I have enough money saved to be able to pay for it, with the rebates of course, and hopefully it will pay my power bill at the very worst. At best I'll be paid for the power it puts back into the grid.
It means I'll be using up all my savings and I'll have to put the fences off. But if I don't have a power bill to pay, then I can bank that money towards the fences and still get them done this year.
With winter coming and all the news about power bills going up 100%, I've even heard 300%, I think this will be a wise use of my savings. The back of my house faces to the north and gets sun all day, even in winter, so I've been told it's a good roof for solar panels.
I'm getting three quotes and my brother-in-law is going to help me do the comparisons to make sure I get the best system for my money.
I'm really excited about this project. Apart from this nothing much has happened this month. I picked up some marked down meat and vegetables at the supermarket and made two stews and a big pot of soup, my favourite winter meals. I put 20 meals in the freezer so I have plenty of lunches and easy dinners and I only spent $21, so each meal is just $1.05! I think that's a bargain, don't you?
I've really started breaking down the cost per meal when I do my shopping and I try to aim for $2 or under for lunches and dinners and $1 or under for breakfast. I'm trying to get my grocery bill down to $35 a week without going hungry or eating mush. So far it's working well, I've become so good at spotting the markdown labels on meat and vegetables. Of course cooking all my meals really helps to keep the bill down too.
I guess that's all I have to report for May, so I'll sign off.
Mrs Sparkle
Dear Mrs Sparkle,
Solar panels - that's great news. I agree that it's a big step, if you are confident you can pay the bill and then rebuild your savings quickly go right ahead. It's lovely that your brother-in-law will help you do the comparisons.
It is going to be a rushed decision so don't forget to ask lots of questions when you get the quotes and get everything, and I mean everything, in writing, including exactly what is covered by the price, warranties and the installation costs.
I love your attitude to cutting your grocery bill. I love a good markdown myself, I get a real thrill when I can put marked down meat and vegetables in the freezer and know I've saved money. I think $1.05 a meal is excellent, especially as you are getting good, hearty and healthy meals.
How is your garden going? With the cooler weather it might be slowing down, but don't stop planting and growing. Remember, food you grow yourself is a genuine bargain and good for you. It will help bulk out your $35 grocery budget and give you more money to spend on other groceries.
Don't forget that on your winter power bills as a pensioner you will have a discount available, make sure you pay the discounted total. Every little bit helps and it's there for you, so take advantage of it.
Let me know how you go with the solar panel installation, I'll be waiting to hear.
Mrs Sparkle - Part 7
Dear Cath,
I am so excited! I've had a win with my electricity company, I now get a 19 1/2% discount! You have no idea how excited I am. It was all quite by accident too. One night a few weeks ago there was a knock at the door and when I opened it, it was a salesperson from Origen Energy, wanting me to switch. Well he wouldn't take no for an answer and just kept on and on, until he finally offered me 7% discount to change. I thought about it for a few minutes and agreed and thought that would be the end of it.
It wasn't. Two weeks ago I had a phone call from TRUenergy, my old power company. The young man on the phone wanted to know why I had changed providers, so I told him I was getting a better offer from Origen. He asked me how much and I told him 7%. He asked me to wait and then he came back and said because I'm such a valued customer, who always pays on time, he could offer me twelve and a half percent. I was stunned. I asked him if that included my pension discount and he said no, that was on top of the 7%. I made him repeat it, and I asked his name and I wrote it all down. And I have gone back to TRUenergy. Best of all I'll get the discount for my electricity and gas bills.
I had a bit of trouble with Origen, they weren't happy at all that I wanted to switch back and kept nagging at me but I finally said if they called again I'd have to make a complaint. That seems to have stopped them, I haven't had any more phone calls. And I've put a "no hawkers" notice on the front door too - I don't want to talk to any more door-to-door sales people.
But I am very excited about the discount.
I'm still waiting for the solar power quotes to come in, I've had three different companies come out and they all explained they were very busy, but right now I don't mind waiting.
I can't wait to get my next power bill, even with the price rise it should be less than it has been.
I've been eating out of the garden for a couple of weeks now. I haven't bought any fresh vegetables for three weeks and it's saved me around $60. I have bought frozen mixed veggies instead of fresh carrots and I'll need potatoes this week, but the garden certainly is paying for itself.
And it's school holidays again so I'll have my granddaughter for a few days. She's already asked if we can go to the movies again, I think she wants a repeat of our last movie expedition, I only hope I am up to it! She's also asked if she can come bowling with me. She loves to visit with the other teams and play on the game machines, she uses her pocket money and then of course we have the bus ride home. She's good company and cheap to entertain so I'm looking forward to it.
July is shaping up to be a busy and frugal month.
Mrs Sparkle
Dear Mrs Sparkle,
Good on you! That's a huge discount, you must be a very loyal and reliable customer. And I wouldn't want to be the next door-to-door salesperson who rings your doorbell!
Don't count on your bill be lower just with the discount. You'll still need to be vigilant, but there are lots of ways you can cut the amount of electricity and gas you use.
Start by making sure your home is draft proof. Check windows in rooms you don't use and if you have ducted heating shut the vents in those rooms. Put draft stoppers against external doors. Use table lamps if you have them rather than ceiling lights of an evening. Turn everything off at the wall. Dress for the weather. On cold days wear layers, socks and slippers or shoes so you don't need to turn the heating up. I've been filling the thermos in the morning for my hot drinks during the day so the kettle is only filled and boiled once a day instead of a dozen times.
You mentioned you were going to get help with the quotes for the solar power, don't forget to take advantage of the offer. Reading and understanding the fine print can be confusing, and if you mis-read or misunderstand it can be expensive.
How are your savings for your little car going? You haven't mentioned it for a couple of months, so I'm just wondering if you are still saving for it?
Before you go to the movies look for any that have adults free. These offers are usually available for children's movies during school holidays. If you can't find an offer or a suitable movie, look for a discount cinema. You may not see new release movies but they usually have good children's movies showing during the holidays.
July is the start of a new financial year and it's a perfect time to review your Spending Plan. With all the changes to your spending you have happening at the moment, I suggest you get your Spending Plan out and go over it again. Remember, it's just a plan, it's not set in concrete. The best Spending Plans are flexible and adapt to your changing circumstances.
Good luck with your power savings and enjoy your holiday with your grand-daughter.
I am so excited! I've had a win with my electricity company, I now get a 19 1/2% discount! You have no idea how excited I am. It was all quite by accident too. One night a few weeks ago there was a knock at the door and when I opened it, it was a salesperson from Origen Energy, wanting me to switch. Well he wouldn't take no for an answer and just kept on and on, until he finally offered me 7% discount to change. I thought about it for a few minutes and agreed and thought that would be the end of it.
It wasn't. Two weeks ago I had a phone call from TRUenergy, my old power company. The young man on the phone wanted to know why I had changed providers, so I told him I was getting a better offer from Origen. He asked me how much and I told him 7%. He asked me to wait and then he came back and said because I'm such a valued customer, who always pays on time, he could offer me twelve and a half percent. I was stunned. I asked him if that included my pension discount and he said no, that was on top of the 7%. I made him repeat it, and I asked his name and I wrote it all down. And I have gone back to TRUenergy. Best of all I'll get the discount for my electricity and gas bills.
I had a bit of trouble with Origen, they weren't happy at all that I wanted to switch back and kept nagging at me but I finally said if they called again I'd have to make a complaint. That seems to have stopped them, I haven't had any more phone calls. And I've put a "no hawkers" notice on the front door too - I don't want to talk to any more door-to-door sales people.
But I am very excited about the discount.
I'm still waiting for the solar power quotes to come in, I've had three different companies come out and they all explained they were very busy, but right now I don't mind waiting.
I can't wait to get my next power bill, even with the price rise it should be less than it has been.
I've been eating out of the garden for a couple of weeks now. I haven't bought any fresh vegetables for three weeks and it's saved me around $60. I have bought frozen mixed veggies instead of fresh carrots and I'll need potatoes this week, but the garden certainly is paying for itself.
And it's school holidays again so I'll have my granddaughter for a few days. She's already asked if we can go to the movies again, I think she wants a repeat of our last movie expedition, I only hope I am up to it! She's also asked if she can come bowling with me. She loves to visit with the other teams and play on the game machines, she uses her pocket money and then of course we have the bus ride home. She's good company and cheap to entertain so I'm looking forward to it.
July is shaping up to be a busy and frugal month.
Mrs Sparkle
Dear Mrs Sparkle,
Good on you! That's a huge discount, you must be a very loyal and reliable customer. And I wouldn't want to be the next door-to-door salesperson who rings your doorbell!
Don't count on your bill be lower just with the discount. You'll still need to be vigilant, but there are lots of ways you can cut the amount of electricity and gas you use.
Start by making sure your home is draft proof. Check windows in rooms you don't use and if you have ducted heating shut the vents in those rooms. Put draft stoppers against external doors. Use table lamps if you have them rather than ceiling lights of an evening. Turn everything off at the wall. Dress for the weather. On cold days wear layers, socks and slippers or shoes so you don't need to turn the heating up. I've been filling the thermos in the morning for my hot drinks during the day so the kettle is only filled and boiled once a day instead of a dozen times.
You mentioned you were going to get help with the quotes for the solar power, don't forget to take advantage of the offer. Reading and understanding the fine print can be confusing, and if you mis-read or misunderstand it can be expensive.
How are your savings for your little car going? You haven't mentioned it for a couple of months, so I'm just wondering if you are still saving for it?
Before you go to the movies look for any that have adults free. These offers are usually available for children's movies during school holidays. If you can't find an offer or a suitable movie, look for a discount cinema. You may not see new release movies but they usually have good children's movies showing during the holidays.
July is the start of a new financial year and it's a perfect time to review your Spending Plan. With all the changes to your spending you have happening at the moment, I suggest you get your Spending Plan out and go over it again. Remember, it's just a plan, it's not set in concrete. The best Spending Plans are flexible and adapt to your changing circumstances.
Good luck with your power savings and enjoy your holiday with your grand-daughter.
Mrs Sparkle - Part 8
Dear Cath,
I can't believe how fast the year is going. I think it's because I'm having so much fun learning new ways to save money.
In all honesty I started this budget renovation thinking I wouldn't learn anything. I've always considered myself a very frugal person and I was sure there was nothing about living life inexpensively left that I could learn. I thought I was doing absolutely everything I possibly could to save money, stretch my money and live like a Cheapskate, although that's not what I was calling it.
Instead I've learned to accept help. That's been a very big thing for me. I am a very independent old lady and I don't like to have to rely on anyone or cause anyone to be put out by doing things I think I should be able to do myself. You have no idea what a huge lesson this one has been.
I've also learned that I don't need to feel guilty when I treat myself to lunch with a friend once a fortnight. Really, it couldn't be much cheaper to eat at home. We share a sandwich between us (they are big sandwiches, we don't go hungry) and we take it in turns to buy the coffee. It costs us $4.60 one week and $9 the next week. And we use our loyalty card and get it stamped for the coffee so every fifth fortnight the coffee is free!
The best thing I've learned is not to feel sorry for myself. I didn't realise I was until I started this renovation, but I did. There were times I'd wonder "why me?" and now I don't. I'm not sure exactly when I stopped feeling so deprived. That's the word. I felt like I wasn't getting the things I wanted. I know I was, but I had to save up or lay-by or wait until a sale, when most of my friends were able to just buy what they wanted immediately. Or at least it seemed that way to me, they probably have to save up too, they just don't talk about it. Once I realised just how well off I am living on my income isn't a chore anymore.
I've taken up the challenge Cath, to live beneath my means and I am loving it.
And you know what - I've come to an arrangement with my neighbour about the fence. She's going to get it done and I'm paying half of my contribution towards it because that's all I've managed to save up, $630, and she gets the plain side facing her yard. I don't mind if I have the cross supports on my side. I think I'll use them like you do to hold planters! I have visions of strawberries like yours and perhaps some geraniums in pots. I will have to see how I go, but that's my plan and it's saved me $630!
As for updating my car. The year is getting away, it's more than half over and I don't have too much in the car fund. My son suggested that all it needs is a good service and then a proper detail and he tells me I should be able to get it all done for under $700, depending on any repairs to my car, isn't that great news? I am really excited to think I might not need to buy a new or at least second-hand car. I can see those dollars staying in my bank account.
Mrs Sparkle
Dear Mrs Sparkle,
What a transformation. As I said when we first spoke, I feel a little disrespectful telling you what to do, but I am so glad it's working for you.
Your letter this month is so different from the others. Your transformation is amazing. Talk about a positive attitude. I thought you were positive before, you hid your doubts very well, now I know you are.
Mrs Sparkle when you look back over the last 7 months, look at what you've accomplished and pat yourself on the back. But don't stop working your plan.
I'm sure you've heard the saying "Failing to plan is planning to fail". Well I take it a step further with failing to work your plan is planning to fail. Stick to your plan and you'll get to your goals.
The deal with your neighbour about the fence sounds good. Just be sure to get her to put it in writing. You don't want it to be a problem if in the future she decides she wants the other half of your contribution or wants to turn the fence around. The saying good fences make for good neighbours can be taken literally.
I'm sure I've told you, I say it often enough, but living the Cheapskates way is about choices. We choose to not spend our money, time and energy on things that aren't important to us so we have the money, time and energy to spend on and enjoy the things that are. It's a huge breakthrough when it finally hits you, and from that point on living the Cheapskates way and saving money really is easy.
You haven't mentioned the solar panels, I hope they are still in the works?
I'm putting you on a spending freeze for the month of August. I'd like you to put the money you don't spend - so you'll need to do some tracking too - into your car fund. I know you have a "car" category in your Peace of Mind account so add the money you are able to save during the next 31 days to this. That should almost be enough, I think, to allow you to get your car renovated along with your budget.
Remember, during a spending freeze you pay your bills and buy your medications, but any other spending is on an absolute needs only basis.
Good luck with it, I can't wait to hear about your renovated car next time we chat.
I can't believe how fast the year is going. I think it's because I'm having so much fun learning new ways to save money.
In all honesty I started this budget renovation thinking I wouldn't learn anything. I've always considered myself a very frugal person and I was sure there was nothing about living life inexpensively left that I could learn. I thought I was doing absolutely everything I possibly could to save money, stretch my money and live like a Cheapskate, although that's not what I was calling it.
Instead I've learned to accept help. That's been a very big thing for me. I am a very independent old lady and I don't like to have to rely on anyone or cause anyone to be put out by doing things I think I should be able to do myself. You have no idea what a huge lesson this one has been.
I've also learned that I don't need to feel guilty when I treat myself to lunch with a friend once a fortnight. Really, it couldn't be much cheaper to eat at home. We share a sandwich between us (they are big sandwiches, we don't go hungry) and we take it in turns to buy the coffee. It costs us $4.60 one week and $9 the next week. And we use our loyalty card and get it stamped for the coffee so every fifth fortnight the coffee is free!
The best thing I've learned is not to feel sorry for myself. I didn't realise I was until I started this renovation, but I did. There were times I'd wonder "why me?" and now I don't. I'm not sure exactly when I stopped feeling so deprived. That's the word. I felt like I wasn't getting the things I wanted. I know I was, but I had to save up or lay-by or wait until a sale, when most of my friends were able to just buy what they wanted immediately. Or at least it seemed that way to me, they probably have to save up too, they just don't talk about it. Once I realised just how well off I am living on my income isn't a chore anymore.
I've taken up the challenge Cath, to live beneath my means and I am loving it.
And you know what - I've come to an arrangement with my neighbour about the fence. She's going to get it done and I'm paying half of my contribution towards it because that's all I've managed to save up, $630, and she gets the plain side facing her yard. I don't mind if I have the cross supports on my side. I think I'll use them like you do to hold planters! I have visions of strawberries like yours and perhaps some geraniums in pots. I will have to see how I go, but that's my plan and it's saved me $630!
As for updating my car. The year is getting away, it's more than half over and I don't have too much in the car fund. My son suggested that all it needs is a good service and then a proper detail and he tells me I should be able to get it all done for under $700, depending on any repairs to my car, isn't that great news? I am really excited to think I might not need to buy a new or at least second-hand car. I can see those dollars staying in my bank account.
Mrs Sparkle
Dear Mrs Sparkle,
What a transformation. As I said when we first spoke, I feel a little disrespectful telling you what to do, but I am so glad it's working for you.
Your letter this month is so different from the others. Your transformation is amazing. Talk about a positive attitude. I thought you were positive before, you hid your doubts very well, now I know you are.
Mrs Sparkle when you look back over the last 7 months, look at what you've accomplished and pat yourself on the back. But don't stop working your plan.
I'm sure you've heard the saying "Failing to plan is planning to fail". Well I take it a step further with failing to work your plan is planning to fail. Stick to your plan and you'll get to your goals.
The deal with your neighbour about the fence sounds good. Just be sure to get her to put it in writing. You don't want it to be a problem if in the future she decides she wants the other half of your contribution or wants to turn the fence around. The saying good fences make for good neighbours can be taken literally.
I'm sure I've told you, I say it often enough, but living the Cheapskates way is about choices. We choose to not spend our money, time and energy on things that aren't important to us so we have the money, time and energy to spend on and enjoy the things that are. It's a huge breakthrough when it finally hits you, and from that point on living the Cheapskates way and saving money really is easy.
You haven't mentioned the solar panels, I hope they are still in the works?
I'm putting you on a spending freeze for the month of August. I'd like you to put the money you don't spend - so you'll need to do some tracking too - into your car fund. I know you have a "car" category in your Peace of Mind account so add the money you are able to save during the next 31 days to this. That should almost be enough, I think, to allow you to get your car renovated along with your budget.
Remember, during a spending freeze you pay your bills and buy your medications, but any other spending is on an absolute needs only basis.
Good luck with it, I can't wait to hear about your renovated car next time we chat.
Mrs Sparkle - Part 9
Dear Cath,
I don't really have anything to report this month.
I've been laid up with virus after virus, coughing and spluttering day and night. I am sick of being sick! I haven't even felt like working in my garden.
I guess a bonus is that because I've spent so much time in bed I haven't had the heater on so the gas bill should be a little lower. And I haven't spent money on anything other than milk, bread and medicines for the last 3 1/2 weeks so I still have most of my grocery money too.
On the down side I've missed a couple of days work, so no pay. I guess it evens out in the end.
All the bills are up to date, the fridge is a little empty but there is still plenty of meat and vegetables in the freezer and I still have some meals frozen. Thank goodness for those back-up meals I made up a couple of months ago, they have been a life saver. I really haven't felt like cooking or even eating, so being able to just put a container in the microwave oven and then eat has been wonderful. When I'm back on my feet I intend to re-stock the freezer with more meals.
I hope I have more to report next month.
Mrs Sparkle
Dear Mrs Sparkle,
I'm sorry to hear you've been unwell. There are some quite nasty bugs around at the moment, I know that the students at Hannah's school have been dropping like flies with one bug or another. So far they've stayed away from our home :)
There are a couple of great cough remedies in the Tip Store that I've used with the kids, with excellent results. They sound odd but work, are natural and cost just a few cents.
One is the Carrot Cough Cure. Cut a carrot as thinly as possible (don't bother to peel it), place it on a saucer, then sprinkle ordinary brown sugar over the top leave overnight (do not refrigerate) in the morning it has formed a thick brown syrup. Take a tablespoonful of the syrup as needed to relieve that horrible tickle and irritation that constant coughing creates in your throat.
The other is a little more pungent, but it works to, and is especially good if you are having trouble sleeping due to the constant coughing. Chop up a white onion, place it on a saucer and sit it on your bedside table or dressing table. You'll get relief from coughing and a good nights sleep. Just remember to put it in the compost in the morning or your bedroom will stink of raw onion.
I have to admire your positive outlook, especially when you've been so ill. Finding a positive in not being able to do your grocery shopping and not running the heater because you are in bed is great. Do you have a plan for the excess money? Perhaps you could put it into a grocery slush fund and use it to re-stock your fridge and freezer when you are on your feet.
When you are back up and about, try cooking double meals for a couple of weeks and freezing the extra serves. That will fill your freezer very quickly without any extra work involved for you.
Is there someone who can do your grocery shopping for you for a couple of weeks? Or perhaps you could get a grocery order delivered. Coles and Woolworths both have online shopping with delivery available and while I wouldn't normally suggest it, there are times when convenience is worth the cost.
You'll probably be quite weak for a while so take things easy, you don't want a relapse. I'm sure once you are back to your old self you'll have plenty of Cheapskating news to share.
I don't really have anything to report this month.
I've been laid up with virus after virus, coughing and spluttering day and night. I am sick of being sick! I haven't even felt like working in my garden.
I guess a bonus is that because I've spent so much time in bed I haven't had the heater on so the gas bill should be a little lower. And I haven't spent money on anything other than milk, bread and medicines for the last 3 1/2 weeks so I still have most of my grocery money too.
On the down side I've missed a couple of days work, so no pay. I guess it evens out in the end.
All the bills are up to date, the fridge is a little empty but there is still plenty of meat and vegetables in the freezer and I still have some meals frozen. Thank goodness for those back-up meals I made up a couple of months ago, they have been a life saver. I really haven't felt like cooking or even eating, so being able to just put a container in the microwave oven and then eat has been wonderful. When I'm back on my feet I intend to re-stock the freezer with more meals.
I hope I have more to report next month.
Mrs Sparkle
Dear Mrs Sparkle,
I'm sorry to hear you've been unwell. There are some quite nasty bugs around at the moment, I know that the students at Hannah's school have been dropping like flies with one bug or another. So far they've stayed away from our home :)
There are a couple of great cough remedies in the Tip Store that I've used with the kids, with excellent results. They sound odd but work, are natural and cost just a few cents.
One is the Carrot Cough Cure. Cut a carrot as thinly as possible (don't bother to peel it), place it on a saucer, then sprinkle ordinary brown sugar over the top leave overnight (do not refrigerate) in the morning it has formed a thick brown syrup. Take a tablespoonful of the syrup as needed to relieve that horrible tickle and irritation that constant coughing creates in your throat.
The other is a little more pungent, but it works to, and is especially good if you are having trouble sleeping due to the constant coughing. Chop up a white onion, place it on a saucer and sit it on your bedside table or dressing table. You'll get relief from coughing and a good nights sleep. Just remember to put it in the compost in the morning or your bedroom will stink of raw onion.
I have to admire your positive outlook, especially when you've been so ill. Finding a positive in not being able to do your grocery shopping and not running the heater because you are in bed is great. Do you have a plan for the excess money? Perhaps you could put it into a grocery slush fund and use it to re-stock your fridge and freezer when you are on your feet.
When you are back up and about, try cooking double meals for a couple of weeks and freezing the extra serves. That will fill your freezer very quickly without any extra work involved for you.
Is there someone who can do your grocery shopping for you for a couple of weeks? Or perhaps you could get a grocery order delivered. Coles and Woolworths both have online shopping with delivery available and while I wouldn't normally suggest it, there are times when convenience is worth the cost.
You'll probably be quite weak for a while so take things easy, you don't want a relapse. I'm sure once you are back to your old self you'll have plenty of Cheapskating news to share.
Mrs Sparkle - Part 10
Mrs Sparkle won't be sending an update this month.
Unfortunately she is unwell and has had a stay in hospital for a few days and is currently recuperating at her son and daughter-in-law's home. She's hoping to be home in the next week or two and back on her feet by the end of the month.
Mrs Sparkle's illness means she hasn't been working, which will put a dent in her Spending Plan. So could you manage if you had no income for a week or two? How about six or eight weeks (it will be eight weeks before Mrs Sparkle gets back to work)? Do you have enough money in the bank to survive such a catastrophe?
If the answer is yes, well done. If it's no what are you going to do about it? Mrs Sparkle's illness started with a virus, one of the many going around this winter. While most people were back to full health in a few days, she's had complications and as a result been very ill, not something she had planned on happening.
Mrs Sparkle has a baby emergency fund so she will be able to maintain a no-frills lifestyle until she gets back on her feet. Everyone should have an emergency fund, a cash stash they can use to survive life's little hiccups (or major disasters).
Even if you have debt you are paying down you should be building an emergency fund. Yes, you may be paying more in interest on your debts than you'll get on savings, that's true. But if you don't have any savings when disaster strikes, and it will, you will need to increase your debt to survive and you'll be right back at square one.
If you have an emergency fund, even a small one, you can survive the emergency and keep on track with your debt reduction.
Here are some articles on the subject you may like to read:
Be Prepared and Plan
Saving for the Future
Surviving a Recession
Unfortunately she is unwell and has had a stay in hospital for a few days and is currently recuperating at her son and daughter-in-law's home. She's hoping to be home in the next week or two and back on her feet by the end of the month.
Mrs Sparkle's illness means she hasn't been working, which will put a dent in her Spending Plan. So could you manage if you had no income for a week or two? How about six or eight weeks (it will be eight weeks before Mrs Sparkle gets back to work)? Do you have enough money in the bank to survive such a catastrophe?
If the answer is yes, well done. If it's no what are you going to do about it? Mrs Sparkle's illness started with a virus, one of the many going around this winter. While most people were back to full health in a few days, she's had complications and as a result been very ill, not something she had planned on happening.
Mrs Sparkle has a baby emergency fund so she will be able to maintain a no-frills lifestyle until she gets back on her feet. Everyone should have an emergency fund, a cash stash they can use to survive life's little hiccups (or major disasters).
Even if you have debt you are paying down you should be building an emergency fund. Yes, you may be paying more in interest on your debts than you'll get on savings, that's true. But if you don't have any savings when disaster strikes, and it will, you will need to increase your debt to survive and you'll be right back at square one.
If you have an emergency fund, even a small one, you can survive the emergency and keep on track with your debt reduction.
Here are some articles on the subject you may like to read:
Be Prepared and Plan
Saving for the Future
Surviving a Recession
Mrs Sparkle - Part 11
Dear Cath,
I am beginning to think that if I was a horse they would take me out to the paddock and shoot me!
I'm still coughing and spluttering but not nearly as much as I was and I'm back to my morning walk, although I'm taking it slowly. Did I tell you that I've been using the carrot cough remedy you sent me? It's easy to make and take and seems to ease the scratchy feeling at the back of my throat, thank you for that.
The fence has been done and it looks lovely, even lovelier because it's all paid for. I've asked my son to get me some guttering so I can put strawberries in. I'm hoping to get enough to enjoy them without buying any during the summer. Oh, and he's been tending my veggie garden while I've been ill, making sure it has kept growing.
The saving has slowed down, I haven't been working as much and of course if I don't work I don't get paid but it's not too bad. There is still some emergency money left, not much but I can start building it up again.
My thoughts have been on Christmas while I've been stuck doing nothing much. This year we are having our family celebration the week before, and I'm hosting it here. Christmas is my favourite time of year and I am looking forward to it. I've been through and through the recipes and tips and found some ideas I can use for decorations and gifts without spending a cent! I had no idea I had so much in the house waiting to be used up.
I pride myself on keeping a tidy house and it is, but it's very full so the plan is to start at the laundry door and work my way through to the front door, cleaning, sorting and donating as I go. My cupboards are full to the brim and I don't need half of the dishes, linens, craft items etc that I have. Someone else can benefit from them.
Dear Mrs Sparkle,
I am sorry you're still unwell. It's been a long time and the good news that you are getting better, even if it is slowly, is great to hear.
I've started walking again too. I find it much easier during daylight saving, I really am not fond of walking in the dark. It's a great way to get fit, even better because it's free.
I trust you go to the same chemist to get your scripts filled? Next time you are there ask him or her how close you are to the safety net limit. If you are close plan to get your next lot of prescriptions filled as soon as you can so you'll have time to get another lot in before the end of the year. The chemist will be able to help you plan this.
Christmas sounds like it's going to be a lot of fun and frivolity for you. Don't over do it, physically or financially. It's just one day a year. Yes, it is a day of celebration, but it's just one of many we have in our society. As you live alone, plan your menu so you aren't swamped with leftovers or they'll go off before you will be able to use them.
I love your idea to use things you have in the house for Christmas. Not only will you save money, you won't have to tackle the crowds and heat at the shopping centres!
Perhaps you can add one or two things to your grocery list each week between now and the end of the month and then you won't have to go to the shops at all - that's my plan. I aim to stay away from shopping centres from the first of December until after Christmas.
Don't think that as a Cheapskate you have to make everything yourself, from scratch. While it's a great way to save money, time, energy and resources, there are times when convenience is worthwhile too. As you've been unwell getting the groceries delivered and buying a Christmas cake and pudding aren't an extravagance if you can afford them, it's a good way to save your energy for other more important things - like getting better!
On that note (convenience) do you send Christmas cards? Perhaps this year it would be easier for you to send Christmas emails instead. Writing and addressing cards is time consuming and can sap energy very quickly. Add to that the cost of postage and waiting in the queue to buy stamps and perhaps e-cards or an email newsletter is a better option for you this year. Just something to think about, I'm sure all your friends and family will understand this year. Google (what would we do without Google) e-cards, there are thousands of free cards you can easily edit and send from the comfort of your armchair.
Look after yourself and keep getting better.
I am beginning to think that if I was a horse they would take me out to the paddock and shoot me!
I'm still coughing and spluttering but not nearly as much as I was and I'm back to my morning walk, although I'm taking it slowly. Did I tell you that I've been using the carrot cough remedy you sent me? It's easy to make and take and seems to ease the scratchy feeling at the back of my throat, thank you for that.
The fence has been done and it looks lovely, even lovelier because it's all paid for. I've asked my son to get me some guttering so I can put strawberries in. I'm hoping to get enough to enjoy them without buying any during the summer. Oh, and he's been tending my veggie garden while I've been ill, making sure it has kept growing.
The saving has slowed down, I haven't been working as much and of course if I don't work I don't get paid but it's not too bad. There is still some emergency money left, not much but I can start building it up again.
My thoughts have been on Christmas while I've been stuck doing nothing much. This year we are having our family celebration the week before, and I'm hosting it here. Christmas is my favourite time of year and I am looking forward to it. I've been through and through the recipes and tips and found some ideas I can use for decorations and gifts without spending a cent! I had no idea I had so much in the house waiting to be used up.
I pride myself on keeping a tidy house and it is, but it's very full so the plan is to start at the laundry door and work my way through to the front door, cleaning, sorting and donating as I go. My cupboards are full to the brim and I don't need half of the dishes, linens, craft items etc that I have. Someone else can benefit from them.
Dear Mrs Sparkle,
I am sorry you're still unwell. It's been a long time and the good news that you are getting better, even if it is slowly, is great to hear.
I've started walking again too. I find it much easier during daylight saving, I really am not fond of walking in the dark. It's a great way to get fit, even better because it's free.
I trust you go to the same chemist to get your scripts filled? Next time you are there ask him or her how close you are to the safety net limit. If you are close plan to get your next lot of prescriptions filled as soon as you can so you'll have time to get another lot in before the end of the year. The chemist will be able to help you plan this.
Christmas sounds like it's going to be a lot of fun and frivolity for you. Don't over do it, physically or financially. It's just one day a year. Yes, it is a day of celebration, but it's just one of many we have in our society. As you live alone, plan your menu so you aren't swamped with leftovers or they'll go off before you will be able to use them.
I love your idea to use things you have in the house for Christmas. Not only will you save money, you won't have to tackle the crowds and heat at the shopping centres!
Perhaps you can add one or two things to your grocery list each week between now and the end of the month and then you won't have to go to the shops at all - that's my plan. I aim to stay away from shopping centres from the first of December until after Christmas.
Don't think that as a Cheapskate you have to make everything yourself, from scratch. While it's a great way to save money, time, energy and resources, there are times when convenience is worthwhile too. As you've been unwell getting the groceries delivered and buying a Christmas cake and pudding aren't an extravagance if you can afford them, it's a good way to save your energy for other more important things - like getting better!
On that note (convenience) do you send Christmas cards? Perhaps this year it would be easier for you to send Christmas emails instead. Writing and addressing cards is time consuming and can sap energy very quickly. Add to that the cost of postage and waiting in the queue to buy stamps and perhaps e-cards or an email newsletter is a better option for you this year. Just something to think about, I'm sure all your friends and family will understand this year. Google (what would we do without Google) e-cards, there are thousands of free cards you can easily edit and send from the comfort of your armchair.
Look after yourself and keep getting better.
Mrs Sparkle - Part 12
Dear Cath,
What a year it's been. I've spent the last couple of weeks reflecting back on 2011 and my attempt at a budget renovation. When I started I had such grand goals, now it's at an end and where am I? Well the goal posts shifted a few times during the year, good thing you kept reminding me nothing was set in cement.
One thing is sure though, my finances are under MY control, I am no longer under their control. I can't thank you enough for helping me win that battle. When my husband passed away I was sure I would be comfortable on my pension and our savings. Then the GFC hit and money seemed to disappear overnight. What I thought I had and what I actually had were two very different amounts and I was starting to despair of being able to live even a half-decent life, let alone the life I wanted.
My family has always regarded me as a bit of a Scrooge, now they're convinced of it. My daughter-in-law is slowly, slowly beginning to ask me how to do things without spending a lot of money and I am so happy to share. I know she'll love her Cheapskates gift certificate for Christmas ( a sneaky way of me helping her to learn about being a wise spender).
Speaking, or rather writing, of Christmas, it's almost here. My little grand-daughter is so excited, she's coming over on Saturday to help me put the Christmas tree up. I can't remember how much it cost, but it's the same age as my son, 47 years old and still going strong. Most of the decorations are that age too, the baubles are all glass, not plastic. I guess looking after things and keeping them to re-use is a one Cheapskates habit I've always had.
Do you remember at the beginning of the year one of my goals was to update my car? Well, I have changed my mind. After getting it serviced and speaking to my mechanic, who I've used for about 30 years, I can see it was just vanity that made me want a "new" car. My car goes well, is mechanically sound and safe and best of all it's economical - runs on the scent of an oily rag. To update would cost me money, that I don't really have to spare, for no real reason. Another Cheapskates habit I've picked up this year - being content with what I have.
It took a while for me to get the hang of my Peace of Mind account, but I can tell you that when I know the money is going to be there when I need to replace my hearing aids in a couple of years (around $5,000) because I've put it in the Spending Plan and saved for them I can sleep easy.
And to know that I didn't have to worry about the bills, regular or irregular, because you convinced me to build and Emergency Fund, while I was ill I am sure helped me recover much faster. These things are simple and I honestly don't know why I didn't have them, I've always used a household budget. It just wasn't complete, something I was unaware of. I had never thought to "plan" for emergencies and unexpected bills.
To be honest with you I started this sure that there wasn't anything you could teach me, that I was a very frugal person and there was nothing I wasn't already doing to save money. You have made me realise that there's a lot I don't know, or don't do if I do know it and for that I thank you.
I am so grateful for your time and your effort, especially when you are busy with your family and Cheapskates. This old duck really appreciates your kindness and patience and I am proud to call myself a paid-up Cheapskate. If I had a badge I'd wear it everywhere.
Cath, I wish you, Wayne and your children all the best for Christmas and hope 2013 is the year of the Cheapskates!
Mrs Sparkle
Dear Mrs Sparkle,
I told you way back in January that the year would just fly by.
I am so proud of you and your accomplishments this year. You have almost completely changed your attitude to your finances and yes, I believe you now control them.
I think the biggest change I can see in you is that you are no longer afraid of money. It's a good feeling knowing that you can survive on what you have, actually that you can thrive on what you have and when disaster strikes, as it always does, you'll cope and come through smiling.
I have one last assignment for you, the year isn't quite over yet!
This month, perhaps in the quiet days after Christmas, is the time to review your Spending Plan, Peace of Mind account and Emergency Fund contributions. These things need constant tweaking, they change as often as the weather, or almost. Take the time to go over your bills for the last year and make any adjustments you need to so those Spending Plan categories are always funded when the bills fall due.
I know you're not a fan of online banking, but I would like you to really think about setting up direct debits or scheduled Bpay payments for your regular bills. Have them come straight out of your bill paying account on the due date and they will almost be set-and-forget and another way to make keeping track of your finances easy.
I plan to keep an eye on you, don't think that just because your Budget Renovation is over I'm going to go away. I'll be checking in with you every now and then and I hope you continue to ask questions and enjoy the Cheapskates Club.
Have a lovely time on Saturday putting up your Christmas tree, 47 years old must be some kind of record I am sure. Imagine the stories of Christmas past that tree could tell if it could speak, and I'm sure you have many happy memories that will come back as you decorate it with your granddaughter.
Congratulations on a successful Budget Renovation and Merry Christmas and best wishes for a happy, healthy and prosperous 2013.
What a year it's been. I've spent the last couple of weeks reflecting back on 2011 and my attempt at a budget renovation. When I started I had such grand goals, now it's at an end and where am I? Well the goal posts shifted a few times during the year, good thing you kept reminding me nothing was set in cement.
One thing is sure though, my finances are under MY control, I am no longer under their control. I can't thank you enough for helping me win that battle. When my husband passed away I was sure I would be comfortable on my pension and our savings. Then the GFC hit and money seemed to disappear overnight. What I thought I had and what I actually had were two very different amounts and I was starting to despair of being able to live even a half-decent life, let alone the life I wanted.
My family has always regarded me as a bit of a Scrooge, now they're convinced of it. My daughter-in-law is slowly, slowly beginning to ask me how to do things without spending a lot of money and I am so happy to share. I know she'll love her Cheapskates gift certificate for Christmas ( a sneaky way of me helping her to learn about being a wise spender).
Speaking, or rather writing, of Christmas, it's almost here. My little grand-daughter is so excited, she's coming over on Saturday to help me put the Christmas tree up. I can't remember how much it cost, but it's the same age as my son, 47 years old and still going strong. Most of the decorations are that age too, the baubles are all glass, not plastic. I guess looking after things and keeping them to re-use is a one Cheapskates habit I've always had.
Do you remember at the beginning of the year one of my goals was to update my car? Well, I have changed my mind. After getting it serviced and speaking to my mechanic, who I've used for about 30 years, I can see it was just vanity that made me want a "new" car. My car goes well, is mechanically sound and safe and best of all it's economical - runs on the scent of an oily rag. To update would cost me money, that I don't really have to spare, for no real reason. Another Cheapskates habit I've picked up this year - being content with what I have.
It took a while for me to get the hang of my Peace of Mind account, but I can tell you that when I know the money is going to be there when I need to replace my hearing aids in a couple of years (around $5,000) because I've put it in the Spending Plan and saved for them I can sleep easy.
And to know that I didn't have to worry about the bills, regular or irregular, because you convinced me to build and Emergency Fund, while I was ill I am sure helped me recover much faster. These things are simple and I honestly don't know why I didn't have them, I've always used a household budget. It just wasn't complete, something I was unaware of. I had never thought to "plan" for emergencies and unexpected bills.
To be honest with you I started this sure that there wasn't anything you could teach me, that I was a very frugal person and there was nothing I wasn't already doing to save money. You have made me realise that there's a lot I don't know, or don't do if I do know it and for that I thank you.
I am so grateful for your time and your effort, especially when you are busy with your family and Cheapskates. This old duck really appreciates your kindness and patience and I am proud to call myself a paid-up Cheapskate. If I had a badge I'd wear it everywhere.
Cath, I wish you, Wayne and your children all the best for Christmas and hope 2013 is the year of the Cheapskates!
Mrs Sparkle
Dear Mrs Sparkle,
I told you way back in January that the year would just fly by.
I am so proud of you and your accomplishments this year. You have almost completely changed your attitude to your finances and yes, I believe you now control them.
I think the biggest change I can see in you is that you are no longer afraid of money. It's a good feeling knowing that you can survive on what you have, actually that you can thrive on what you have and when disaster strikes, as it always does, you'll cope and come through smiling.
I have one last assignment for you, the year isn't quite over yet!
This month, perhaps in the quiet days after Christmas, is the time to review your Spending Plan, Peace of Mind account and Emergency Fund contributions. These things need constant tweaking, they change as often as the weather, or almost. Take the time to go over your bills for the last year and make any adjustments you need to so those Spending Plan categories are always funded when the bills fall due.
I know you're not a fan of online banking, but I would like you to really think about setting up direct debits or scheduled Bpay payments for your regular bills. Have them come straight out of your bill paying account on the due date and they will almost be set-and-forget and another way to make keeping track of your finances easy.
I plan to keep an eye on you, don't think that just because your Budget Renovation is over I'm going to go away. I'll be checking in with you every now and then and I hope you continue to ask questions and enjoy the Cheapskates Club.
Have a lovely time on Saturday putting up your Christmas tree, 47 years old must be some kind of record I am sure. Imagine the stories of Christmas past that tree could tell if it could speak, and I'm sure you have many happy memories that will come back as you decorate it with your granddaughter.
Congratulations on a successful Budget Renovation and Merry Christmas and best wishes for a happy, healthy and prosperous 2013.