Emergency Fund

Posted on May 13, 2008
Filed Under emergency fund | 2 Comments

As I have had lots and lots of time on my hands since my computer breakdown, I have been pondering whether buying another computer is an emergency.  I am torn because a computer is truly a need for multiple reasons, my website, my business, all my books, my taxes, etc are all done with or stored on the computer.  However, it is not a need like food and shelter are a need.  I can live without it no matter how much I don’t want to do that. 

I am currently trying to work out a compromise and find a used computer that will not eat up my entire emergency fund but will still be good enough to get accomplish what I need.  Hopefully, I will find a solution by next week.  In the meantime, I am here at the library using the public computer.  I am limited to 60 minutes per day so while I will try to keep the blog updated, articles will be short. 

Have you ever had to decide whether something was an ‘emergency’ or not?  What was the deciding factor? 

Help keep me awake to write by buying me a cup of coffee! .

Computer Issues — Again!

Posted on May 9, 2008
Filed Under Uncategorized | Comments Off

Just a quick note to say that I am having Hard drive failures again with the new drive. I expect it is more than just a hard drive issue.  Is a new computer an emergency?  I will have to think about that for awhile.

I will be posting as I can beg or borrow some time on a computer. The local library is only open when I am at work.

Help keep me awake to write by buying me a cup of coffee! .

Give a Girl a Little Money

Posted on May 9, 2008
Filed Under Spending, Uncategorized | 2 Comments

by mitch.surprenant

I have money!!! I have money in savings, I have money in checking and I have money in my pocket! It’s not a lot of money but I feel like celebrating! I feel like the weight of the world has lifted off my shoulders.

I have also found that I am much more likely to succumb to impulse spending. I have spent the last six months congratulating myself on being frugal and now I find that as soon as you give this girl a little money those impulses come right back. This has been a recurring theme with me. I can be as frugal as the ultimate cheapskate but when I have a little money come in, I end up with a little more going out.

My main goal over the past six months has been bare survival. Really. When there isn’t enough, you get down to brass tacks and make decisions based on what you have to have to get through the next month and priorities are pretty easy. In looking over my spending in the last week, I have found that I have made several impulse purchases.

Now don’t laugh because these are going to seem pretty trivial. I bought a hair clip ($6.50), I went out to dinner last night ($11.95), books ($17.99), and then I have bought sodas and snacks ($8) several days which adds up to enough to the minimum payment on my credit card.

I would much rather have spent that $45 on paying down my debt or putting it into savings to pay for fuel oil this winter or to pay off my tax bill.  There are so many uses that I NEED to put money towards that I really cannot afford to fritter it away.

I’ve Paid For That Twice Already has some great tips to avoid impulse spending.  I have found that being accountable to my readers is a big incentive not to buy things on impulse but also because writing this blog keeps my finances at the top of my mind.  I also really try to know exactly what I want when I walk into the store.  If I don’t know where it is, I ask someone and go directly there so that I avoid temptation.

Some other things that I have found help me are:

Not using my check card.  I keep a limited amount of cash and use it.  It keeps me mindful of how much I am spending and what I am spending on.

Using lists.  I guess because I have ADHD if I don’t have a list, I don’t get anything done so having shopping lists fits right in.  It keeps me on target and if it’s not on the list, I don’t buy it.

Waiting to purchase. If I see something that is not on my list, I tend to hold off purchasing it.  If I decide that it would be a smart purchase, I will go back and buy it later.

What have you found that helps you avoid making impulse purchases?  Does getting a little extra money cause you to go on a spending spree?

Help keep me awake to write by buying me a cup of coffee! .

Surprise! Got an Envelope From IRS

Posted on May 8, 2008
Filed Under emergency fund, survival | 1 Comment

by pollyalida

I got home from work today and checked my mail.  Surprise!!  There was an envelope from the IRS.   I am not expecting my stimulus check until July and it felt awfully thick to be a check and guess what?  It wasn’t!  It was a notice that I owe them about $1500 more from my 2006 taxes.  I wish I could say that they made a mistake but I think the mistake was mine.  I had a 401k loan that must have come due when I left my job.  So I have to pay taxes on it plus the penalty.

by Cremo

This would be right after my hard drive crashed.  It’s amazing the amount of stuff that I keep on my computer including my 2006 tax return. Sigh!  Thankfully when I bought my latest laptop, I swapped out the hard drive so I had a spare.  Unfortunately, it doesn’t have any of my stuff on it.

I have been working at getting the basic software installed on the new hard drive.  That by itself should take me a few days.  In the meantime, I had stored all of my passwords, logins, etc in a file on my old one.  It may take me awhile to get it all straightened out.  If you send me a message or an email and don’t hear from me, you can find me on Twitter.  Twitterfox was one of the first things I installed!

I lost all my bookmarks for my round up this week so I will be working hard to reconstruct it.  There were some great posts so I hope I can find them all.

Other than those two things, it’s been a great day.  Busy as heck at work which is always good!  If business keeps on like this for another month or so, I will be in good shape financially for the winter.  That would be a blessing!

Help keep me awake to write by buying me a cup of coffee! .

It Takes a Community to Build a Garden

Posted on May 8, 2008
Filed Under Homesteading | 1 Comment

by Ralph Hockens

If you have no room to garden and don’t think a few pots will be enough, try finding some like minded neighbors and start a community garden. Community gardens go back to the 1940’s when the U.S. Government requested that people plant Victory Gardens to provide their own fruits and vegetables according to Living History’s Farming In The 1940s.

Margaret Rainbow Web tells the story of her grandfather’s victory garden at City Farmer. She tells of the beauty and productivity of a garden that fed 6 families. What they didn’t eat got chopped up to feed the chickens and rabbits that they also raised for food. It is a story that is filled with warm memories of times spent with the family and neighbors.

I would be the last person to argue with the government when they say that we are not in a recession or a depression but it is funny that homesteading and community gardening are coming back into fashion. I watched a segment on Martha Stewart today where they were talking about community gardening.

by London Permaculture

Starting a community garden is as simple as finding a few people in your neighborhood that are interested and then finding a place for it. Vacant lots, roof tops, and common areas can all be turned into a community garden if you can get permission.

1. Once you have interested people, set up an organizational meeting. Decide what type of garden you want to grow. While for our purposes we would want to produce food, there are other types as well. You could have a community flower garden or children’s garden. Will everyone have their own square foot plot or will they work a common garden and share the produce?
2. Find a spot. Is there a vacant lot nearby? What a great opportunity to turn an eye sore into a community project. If you live in an apartment, could you use the roof top? I have seen some beautiful rooftop gardens and think of all the sun they get! If you live in a townhouse development or condominium, is there a sunny area in the common spaces where you could get permission for a garden? If there are enough neighbors involved, it really should not be a problem to get permission to put one someplace nearby.
3. Look for sponsors. To me, this is the best part. Is there a neighborhood business that might be willing to sponsor the garden? They could provide building materials (assuming you are going for square foot gardens) seeds, fertilizer, plants, tools and other expenses. It’s great good will and there could be a plaque involved.
4. Set the dates. Set up a time schedule with work dates to get the garden underway. Enlist people to clean up and build and others to plant and harvest. You can be involved in the garden without necessarily gardening.
5. Reap the benefits. Community gardening is more than a frugal way to provide great food for your family. It is also a great opportunity to build more community spirit, get to know the neighbors and beautify your community.

by London Permaculture

You can find more tips on starting a community garden at The American Community Gardening Association. The Municipal Research and Services Center also has a community gardening section. It is even recommended as a benefit to the food security. Several cities across the Nation have community gardening programs similar to this one in Portland Oregon.

Although I live in the country and my neighbors have tons of room to grow a garden, the ones that need it most don’t. I think I am going to use the community garden idea to get their kids involved in building and growing square foot gardens. It will help keep me motivated AND it will help them immensely.

So if you live in the city, is there a vacant lot near you? Does your city sponsor community gardening? I’d love to hear from people who have tried it or who know of one near them.

Help keep me awake to write by buying me a cup of coffee! .

Business Update and Decisions

Posted on May 7, 2008
Filed Under Uncategorized | 6 Comments

Even in the sluggish economy, my business has grown by leaps and bounds this month. It has increased about 50% over the last month. Winter in the dog grooming business is always a difficult time and for a new business, it is deathly slow. There were too many months when I did not have enough money to meet the expenses of the business, much less my own. Slow enough that I have considered giving up and getting a job.

I am happy to say that the phone has been ringing and my net income this month looks pretty good. I am, however, faced with a new decision. My shop right now is tucked away in a residential area. The prior owners converted a building in their backyard into the grooming shop. It is not a high traffic area and one of my struggles has been to let people know that we exist.

Last week I got an offer to rent a larger shop in a commercial location. It is on one of the two main streets in town and the building is brand new. Normally, I would not consider moving as the build out costs for a new shop would be more than I could afford but this particular shop was designed for a hair salon and so the plumbing and electric outlets are already there and set up perfectly so the move in costs will be very low. The owner of the unit is offering it to me at a bargain price because the prior tenant defaulted.

The rent for my current shop is low and includes all of the utilities which has been a saving grace through the winter. The rent for the new location is comparable but does not include utilities which will run about $200 more than I am paying now. It’s decision time again.

I have pondered the pros and cons of this over the last week. It was not too long ago, only last month in fact that I was looking for a job. This has weighed heavily on my mind as I consider moving. However, I really feel that the additional exposure will help the business grow. The location moves the business from looking like a hobby (which is what it was before I bought it) to a much more professional appearance.

My long term plan was that when my net income from the business had doubled, I was going to look for a new location. This opportunity is about 6- 12 months ahead of schedule at my current rate of growth and will mean struggling financially for a bit longer but it will also give me room to expand both my grooming services and my retail business.

The state of our economy does not help my decision at all. I would feel much better about this if we were not teetering on the brink of recession, however, in some ways rising fuel costs may be a benefit. People who have not thought twice about driving to the city for services are now looking for local solutions. Even though they may be happy with their current groomer, they are considering switching just so they don’t have to pay the extra $15-20 in gas to drive.

I would also feel better about this if I had twice my current amount in my emergency fund. It is hovering right at $1000 and right now, I have been able to add to that every month. Increasing my business expenses will mean a reduction in the amount I can save.

What it all boils down to is that the ONLY con is increasing my expenses by $200 a month and the risk that if my business doesn’t continue to grow, I won’t be able to go back. The pros are that I will have a larger, more convenient, more professional location with increased exposure. I can slowly increase my retail line and that should provide some additonal income. The shop comes with high speed internet included at no charge and will eventually have satellite television as well. There is room inside to do small training classes if I decide to start them again for the additional income. On a more personal level, I will have a bathroom onsite (I currently use the bathroom at the prior owners, a minor inconvenience) as well as a kitchen.

I guess it comes down to a decision on whether or not I am able to live with the risk and additional pressure for awhile longer. Can I continue to scrimp and save for another year or do I take the easier way out? There is no doubt in my mind that the business will be a successful if I stick with it and can make it through the next year.

Late Night Update: My shop is in a small town. Apparently word has leaked out that I am moving and people have been stopping me on the street to tell me how excited they are that there will be a grooming shop in town. I have been carefully explaining that the shop is currently open and only a block away. I think it is going to generate quite a bit of business if the first few days is any indication. I went on a frugal shopping expedition on my way to training tonight and bought 3 kitchen base unit cabinets for the new shop. My final cost for 3 36′ base cabinets with a drawer? $250 for all three. I love builder’s salvage! Now I am hunting a counter top.

Help keep me awake to write by buying me a cup of coffee! .

Economics of Foster Care

Posted on May 6, 2008
Filed Under Foster Care | Leave a Comment

This is a continuing series on Foster Care as I complete my training to become a certified therapeutic foster parent. For more information on foster care or to read more about my journey, please stop by my blog on foster care and parenting My Chosen Children.

One of the considerations in deciding to do foster care is economic, just as it should be when considering whether or not to have your own children.  The economics of foster care can be drastically different than raising your own children though.  There are many different things to take under consideration.

Unfortunately, even though there is a  stipend paid for taking in foster children, it is not enough to make traditional foster care in most states a career or even a good part time income.  According to CASA,  the National average foster care stipend is $329 and the average family spends $574 per month to maintain a 2 yr old child.  Stipends vary by states from $161 to $588 with the difference being made up by the foster family.  Therapeutic Foster Care stipends are usually higher to cover the additional time and expense involved with caring for these children.

I found it interesting that most foster homes fall into the low and low middle income levels.  I have read the statistic in a number of places but no one really explains why it is that people in those income brackets are more willing to take on the financial responsibility of a foster child.

I personally believe that it is a combination of things.  People in those income brackets are used to raising children on a budget.  They have found that the emotional benefits of being in a family environment do not depend on having the latest fashion or fad toy.  They have learned to live within a budget that is often smaller than the national average.

Frankly, I am torn between thinking that foster parents should be compensated for the time and expense of caring for a child and not wanting to see people drawn into it solely for the financial benefit.  Thankfully, there are laws in place now that make the old image of people taking on countless foster children with little care given to them obsolete.  There are limits on the number of foster children a family can take and there is ongoing training involved in most states.  There are also ongoing inspections from DSS as well as  homestudies to make sure that the environment is a safe and loving one.

I think there is a delicate balance between being adequate compensation and being a financial windfall.   People who are committed to caring for a foster child should not be forced to stop because of the cost involved.  When a child arrives with only the clothes on their backs and health issues from neglect or abuse, the decision to take that child in should not depend on whether the foster family can afford to make up the difference.

There are several ways that you can help.  You can become informed about current legislation and lend support by writing letters to legislators.  Most states have a state foster care association which will provide both the information and sample letters.

You can donate to those same associations which usually also provide support to foster children and families.  You can donate to the National Foster Parent Association which supports foster families and also lobbies for foster care improvements on both a national and state level.

You can call your local Department of Social Services and donate goods to foster children and their families especially during the holidays when foster families are faced with providing not only day to day living expenses but also gifts.

Help keep me awake to write by buying me a cup of coffee! .

You May Not Get Your Stimulus Bonus When You Think

Posted on May 5, 2008
Filed Under Uncategorized | 12 Comments

Many people have been checking their bank accounts expecting to see their economic stimulus payments only to be disappointed and calling the IRS to find out where it is.  The answer was a surprise to many although it makes sense.

If you filed your taxes through Turbo Tax and you paid for your software and efiling with your tax return, you will be getting a paper check.  The reason for this is that the IRS actually sent your refund to a bank who deducted the fees and then the bank direct deposited the money into your account.

This will also affect anyone who got a refund anticipation loan or filed through HR Block or other tax softwares that allow you to pay for your fees with your refund.  You can check your bank statements to see if your refund was received from the Treasury Department.  You can also check at the IRS website at Where’s My Stimulus Payment although it will only track your payment if it has been sent.

I paid for my software and efiling with my refund and I was a bit disappointed as my ssn ends with 98 which means I will not get my payment now until mid July.  It’s a good thing I didn’t have plans for it other than adding to my emergency fund.

The paper check schedule is

PAPER CHECK

Last two SSN digits:	Payments will be mailed no later than:
00 through 09	May 16
10 through 18	May 23
19 through 25	May 30
26 through 38	June 6
39 through 51	June 13
52 through 63	June 20
64 through 75	June 27
76 through 87	July 4
88 through 99	July 11

Help keep me awake to write by buying me a cup of coffee! .

8 Ways That I Can Save Money On A Limited Budget

Posted on May 5, 2008
Filed Under emergency fund, savings | 8 Comments

by Caro‘s Lines

On Friday, I listed the 10 ways that I have found that I cannot save money and most of them are the ways that are recommended to save.  So how have I managed to save money while being on such a limited income?

The first and most important step is that saving money has become a priority.  Circumstances over the last year have decimated my retirement fund and all of my scant savings. Anything outside of my meager budget became an emergency even something as small as an extra tank of gas. In November, facing a dismal holiday season, I took a long hard look at my financial situation, started Oh My Aching Debts and began the road to financial recovery.

It has taken me six months to find ways that I can actually save money on my somewhat meager income of $12,000 a year.  I have learned to be creative, frugal and to develop some additional sources of income.  But again, and I can’t stress this enough, saving has become my number one priority and once it became a priority the rest just fell into place.

Here are the ways that I have found that I can save money:

I have made saving money a reward. It used to be that putting money into savings was more of a punishment than a reward.  Changing my priorities has meant that every dollar I put in savings is a reward and makes me feel good about myself.
Develop an additional income stream and designate that money solely to savings.  I have tried several different things from selling things on eBay to doing notary loan signings to hobby income.  The money from each of these activities went directly into savings.

Save my change every day.  I started dropping my change everyday into a jar.  It is a small amount, usually less than a dollar a day but it adds up over the course of a month and over the past few months I have been able to save almost $200 this way.

I snowflake money into savings.  No matter how hard I try, I end up buying soda and snacks.  It’s a habit I have tried to break but I guess it’s a luxury that I will end up never giving up entirely.  If I manage to go one or two days without purchasing any, I reward myself by dropping that money into my change jar. If I really, really, really want something frivolous and don’t buy it, I drop that money into savings as a reward.

I have found ways to save a dollar at a time.  Every day I put one dollar into savings for each dog that I groom.  Some days this is two dollars and some days it is five.  The trick is not to wait until the amount gets bigger than five dollars so I do it daily instead of weekly.  You and I both know that it works out the same but it is so much easier to drop one, two or three dollars into that jar than it is a twenty dollar bill at the end of the week.

I make a game of it.  I make a challenge to myself every week to see how much money I can squeak out of my budget to drop into savings.  Things like an extra trip to the grocery store can cost me as much as $20 in fuel so finding ways to eliminate trips or having a friend pick things up for me when they are in the city can save me money.  This goes back to snowflaking but it has the added allure of being fun.

I make things myself with what I have on hand.  There are a ton of forms that I use in my business.  Post cards, invoices, receipts, grooming records, appointment books, etc.  I have found that when I already have the supplies on hand, I can save money by making these myself and printing them out.  The savings will level out when I have to buy card stock but for the moment, I have it on hand.  At home, I make notepads out of scratch paper and find new uses for things I would have thrown away.  When I know I am saving a dollar or two, I drop that money into savings.

I don’t count my money.  I know this seems strange but when I drop a dollar into the jar, it ceases to exist.  I don’t think about it or about how much money is in that jar until I am ready to deposit it into the savings account.  That has a totally separate existence from my budget.  The amount that I put into it isn’t in my budget and the amount that is there is not included in any of the calculations for the coming month.  I never, ever allow myself to think that I can pay for this or buy that by using the money in that jar or account.

Those are the ways that I have managed to save more money on my limited income.  None of them by themselves adds up to a hill of beans but when I add them all together at the end of the month, I am always surprised at the amount that has accumulated.  I really don’t miss the money out of my budget and that is  the beauty of snowflaking whether it is to pay off debts or increase savings.  The tiny little amounts aren’t painful but they add up quickly.

What are some of the ways that you have found to put money into savings?  Do you have a regular amount that you save each month?  Do you have a savings goal monthly, annually or just a total amount?

Help keep me awake to write by buying me a cup of coffee! .

Summer Schedules and Time

Posted on May 4, 2008
Filed Under plan | 1 Comment

Have you ever had one of those weeks that just seemed to FLY by?  This has been one of those times.  It seems like just yesterday it was Sunday.  I am not complaining as the week has been full of good things.  The business is getting busier and I am working longer hours.  That is a VERY good thing.

Foster classes are taking up one of my evenings and it seems like I spend the next evening recovering from being out so late.  I guess I must be getting older as it doesn’t seem that long ago that I could stay up all night, go to work the next day and then do it all over again.  Yikes! Now if I stay up past my normal bedtime, I am ready for a nap when I get home from work.

Along with being busier at work and foster care classes, there are also more things to be done at home.  Grass needs to be cut, gardens need to be planted and all of the outside things that I put off during the winter need to be caught up.

I am finding that it is difficult to spend as much time writing and promoting this site.  I have had to take a hard look at my priorities and my writing schedule. One of my favorite things to do is to read articles on different sites.  It broadens my perspective and I have learned so much from other personal finance bloggers, however, I have found that I have much less time to do this recently.

In short, I am going to be spending less time surfing the web and try to focus more on reading the blogs in my reader.  I have a tentative schedule for the hours that I can spend researching and writing and I am going to be focusing on making those hours more productive.  I hope that it will be a positive change for Oh My Aching Debts.

Help keep me awake to write by buying me a cup of coffee! .

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