Chapter 11 - Money and Shopping

 

Chapter 11 - Money and Shopping

 
There will come a time after you find your mate and have kids that you wish you had made better choices in your spending when you were younger.
You will be 40 and wishing that you could afford a tummy tuck after 4 kids.
Or the basement will leak and there is no way you can pay the $10,000.00 estimate to get it waterproofed and so you put it off for 7 yrs all the while having panic attacks each time a hurricane comes through.
Or you finally find your passion and wanna go to college, but your credit isn't so good.
Or you see a family on the internet who saved up so they could suspend their jobs for one year and buy a used RV and go on a cross country trip as a family and you wish you could do that but can't.
Or you are 30 and have tried unsuccessfully for 3 yrs to get pregnant and you desperately want to try IVF, but you have no savings.
You want so many things. but you don't have the money or the credit and you are too old to borrow from your folks or family, or you have no family to borrow from.

Laying there in bed one night in early fall you toss and turn worrying about money and how you will pay the mortgage and all the bills AND buy Halloween costumes for all 4 of your kids, plus the upcoming Thanksgiving turkey and the December holidays presents for everyone. You will be worrying about all that, because that day your car broke down on the way home from work after stopping at the grocery store incurring a $150.00 towing bill and it looks like your car will be in the shop 4 days (meaning $1000.00+ repair) so you have to rent a car or get a bus or cab to get to work the rest of the week. Oh and when you got home from the car place, in all 4 of your children's school folders were the permission slips for the Annual Halloween school trip to the local farm to go pick pumpkins and go on a hayride and it will cost you $15.00 a kid! That night, your husband slips in next to you and he pulls you into him, but your worry and anxiety has ruined the mood you had that morning when you flirted with him while making breakfast and later, on the phone at lunch break. So you push him away, and turn towards the wall.
Too many nights to connect with hubby have been ruined worrying about money.
You will look back at stuff you bought and later donated to Goodwill, eBayed or put out in a Yard Sale or gave to friends and say "Why did I buy that junk?"
So really think before you buy things NOW.
Ask a friends Mom who you observe to be great with money and budgeting to teach you how to handle money and a checkbook. Start putting some money in a bank account of your own (you don't need to tell your parents, just do it for you) Honestly? being responsible and doing it all yourself, for yourself feels so much better And guess what? You can do it all yourself.

Let's Start With Banks Themselves...
Banks vs. Credit Unions
Both Banks and C.U.s are very similar. They both offer the same products

1. Checking
2. Savings
3. Credit/ATM Cards
4. CDs
5. IRAs
6. Business Accounts
7. Home Equity Loans
8. Student Loans
9. Loans
10. Money Market Accounts
11. Mortgages
12. Christmas Club Accounts
13. Online Bill Pay
14. Online Banking
15. Auto Loans

And they ALL work the exact same way in both places. And they BOTH insure your deposits by the
federal government (FDIC & NCUA)

However there are 2 striking differences
Banks take more of your money as profits.
C.U.s pass the profits on to you by paying you higher interest rates on your accounts...
Whichever one you choose to put YOUR money into or do business with is entirely up to you.

Let's move on to spending within your means...
My first house cost me $84,000.00 and the sellers paid the closing costs. My mortgage in 1991 was $540.00 a month, the bank escrowed for insurance and taxes. At the time I was making $24,000.00 a year. I didn't have to pay water or sewer or trash, so I was lucky.
$24,000.00 a year income
MINUS
$6480.00 a year mortgage
$6000.00 a year taxes
-----------------------------------------------
$11,520.00 <After paying taxes and mortgage
$11,520.00 <AFTER TAXES AND MORTGAGE
MINUS
$1800.00 a year electric
$600.00 a year cable
$1200.00 a year phone
$1600.00 a year heating oil
--------------------------------------------
$6320.00 <<LEFT OVER THE REST OF THE YEAR FOR FOOD, CLOTHING ETC...
$6320.00 BEFORE I decided to buy 2 AKC dogs and BEFORE I had Dickhead move in with me and get me pregnant...and BEFORE Dickhead started stealing money from my account.

I am going to admit something that is very hard to say in a public forum like an ebook. But im
always honest so others will learn from my mistakes.
I never used my checkbook register, nor did I open my bank statements.
EVERRRRRRRR,
Unless I had to fish out a canceled check for my tax man...
OH I forgot my taxman....Let's subtract an additional $400-$500 a year for his services.
So let's amend that to $5820.00
I never even looked at the slip of paper that came out of the ATM...
And I should have, I was so stupid.
I had never even had an allowance as a kid or was taught anything about buying houses or budgeting or saving money or A-N-Y thing...
I would just buy what I wanted at the store or supermarket and then checks started bouncing and my electricity would get turned off or I'd go to use the phone and it had no dial tone...
I'd be spending $400.00 a month on food and trying to go to the mall for clothing and housewares every week! I was spending with abandon! I was trying to put a square peg in a round hole!
Ohhh wait! I forgot the car insurance on my Jeep $2400.00 a year!
I was in serious debt, I was borrowing money against an account I had every other month just to keep my head above water. I developed this stupid pattern of shopping when I was depressed and it would pick my mood up....and I lived across from the hub of the community, a huge drug store with tons of doo-dads and tchotchkes for me to buy.
So I was consistently MINUS $-7380.00 a year (let's not even mention the 2 times a year I paid to fly my IN Laws up from Texas for Eddie to do the home repairs)
This went on and on and on for 4 years. I had stopped paying the mortgage, I had had a baby, and Dickhead was stealing money out of my account too and had no job so he was NOT helping.
Then I suddenly started making more money....but I still learned NOTHING cause now I was free to shop with abandon....
I still didn't open my bank statements or look at my ATM receipts or fill out my register... By that time I was fully deeply clinically depressed (due to my sons Autism and my bad relationship with his father) and as sad as it was, SHOPPING was the only fun thing I had. So I just kept on shopping!

I was living WAYYYYYYYYYYY above my means!
And Dickhead kept on stealing and not working.
I thought I was living the life! BORROWING AND BORROWING (on credit) AND SHOPPING AND
SHOPPING! (on credit)
AFTER I had the baby I knew we couldn't drive around in the soft top Jeep with a baby, it was dangerous!
So I went to the Chevy Dealer buy a brand new car!

HAHAHAHA!

They laughed at me. My credit was SHIT! They told me I could not have a new car! So I had to buy a used Van from a shady used car dealer that had electrical problems.
I wasn't even saving up for my taxes so I'd be borrowing for that …
Honestly, once my son was diagnosed as Autistic if I had let myself fully realize the extent of my debt or my misery I'd have had a breakdown, and since I was the only adult in the house, I had to keep going, and I was running on fumes. So I had to keep up the charade to save myself. Plus after my sons diagnosis I started buying my son everything I could to spark his interest and to show my love for him...
Looking back, the solution to all my problems was harder by far, but it was better. And that solution was:

1. Get into therapy & on meds
2. Get rid of Dickhead
3. Get on a budget
4. Slowly pay down my debt
5. Live a better financially leaner life

Over the 6 years that I had moved out of my moms house and moved Dickhead in and had a baby, I had accrued OVER $40,000.00 in debt...
Yet somehow I was able to buy the next house and move. (Thank God for Sub Prime Loans of the 1990s!) ..and then a year later I broke up with Dickhead and slowly got myself out of debt and my credit back up and I never have any bounced checks or insufficient funds now...

I still love to shop though but I do it wisely and in moderation now. I do not buy stuff I do not really
need.

So get on a budget.
So how do you get on a budget?

1. What Is Your Income? This is the amount you are paid after taxes... Your paycheck. If you are a person who works on commission (like Clothes Stores or Cars) or are a server at a restaurant, you need to estimate your income since the amount will be slightly different each month.
2. What Are Your Monthly Recurring Bills? Monthly recurring bills are Phone, Electric, Heat, Cellphone, CableTv, Car Payment, Insurances, Rent or Mortgage...Add them all up.
3. Estimate Your Monthly Expenses Whose Totals Change. These are expenses you have every month BUT whose totals change from month to month. These are things like Food, Clothing, Credit Card, Entertainment and your Magazine addiction. Save 3 months of receipts and add them all up and divide the total by 3...
4. Subtract Your Expenses From Your Income Add both the total from number 2 and 3 together and then subtract it from your after taxes paycheck or estimated income... If your total bills and expenses are larger then your income or your income just barely covers your expenses, then you need to reduce your expenses or get a raise, promotion or find a better job.
5. Keep Track Of Bills And Expenses Once a month open up all those bills and gather your receipts and write them all down in a notebook or on a Android or iPhone app or computer program and every other month evaluate and cut back on things that are costing too much.
6. Leftovers Let's say you have $150.00 left over every month! Do not spend it! I know it is tempting but don't! At this time of your life you need to start saving. Put that into your savings account every time you go to deposit your new paycheck.

Let's say you put away $50.00 each month into your savings account. In 10 years that
will be $6000.00. That is the down payment on your next car!
Save up $100.00 a month for 10 years, that's $12,000,00!
Save up $150.00 a month for 10 years, $18,000.00! Good chunk of your starter house
down payment, or used boat or RV....See what I'm getting at?

Add this to your budget as a recurring bill.
7. Create An Emergency Fund
Open up a savings account and put or save $2400.00 into it. This will cover all sorts of problems with your car, life or home or apartment. And you wont worry so much in the future. AND if you take some out to use in an emergency PAY YOURSELF BACK IMMEDIATELY, BEFORE YOU GO OUT TO EAT, OR BUY CLOTHES OR RENT MOVIES ON NETFLIX. DO NOT PUT THAT OFF! Add this to your variable expenses until you've completely saved up. Add the pay back to variable as well.
8. Take Care Of Your Budget
Now that you know what you are doing. USE YOUR CHECKING ACCOUNT REGISTER, Open your bills, save all receipts, adjust your spending, pay your bills before you have fun or splurge and put some money away into savings.
9. If You Still Live At Home.
If you still live at home and don't have utility bills. You should still budget. If you get a paycheck from a job but only have a cellphone bill, then you should be saving up a lot. Get your paycheck. Pay your cellphone bill, with what is left, put half in savings and have fun with the rest.

To Lower Your Bills
Saving on utilities
You can renegotiate most of your utility bills down. For instance, if you threaten to quit cable they will lower your bill. Get rid of all add-ons to your Land-Line that you can. Get on your electric company's Budget Plan. Call cell companies and see if they have lower cost plans...
Lower your mortgage or school loan
Every so often you can refinance your mortgage or school loans to get a lower monthly payment. You canalso make your mortgage higher to pay it down in 10 to15 yrs as opposed to the normal 30 yrs. Choose which one is right for you.
Shopping
You are lucky to grow up in the Google era. Use Google to find the cheapest stuff you want. Sign up for Amazon Prime.
Your Checkbook Register Is Now Kinda Obsolete
In the old days when you'd go shopping and pay by check, they'd take your check and put it in the cash drawer of the register and maybe it would be taken to the bank to get cashed by the end of the week. The money would stay in your account for weeks at times till it got cashed, and if you were like me and didn't use a register, the money allotted for that check would end up getting spent on ATM purchases
before it could be cashed. Nowadays most stores and businesses use check scanners, like the one below, it reads the funny numbers at the bottoms of thecheck and instantly withdraws the money from your checking account. So at least you younger generation aren't gonna have the same issues as me...
 

 

 Going Digital!
Checkbook registers are becoming obsolete...
The problem with checkbook registers these days is the fact that a lot of people use auto-pay for their mortgage and utility bills and have “Gone Green” and paperless with their bills altogether. So not only do most people never even receive a bill in the mail anymore but they don't even write a check for it. For 20 years now I have not written a single check to pay my utilities, and recently I have gone paperless with at least half of them. I also use my ATM card for everything, but there is no ATM register.

So what do you do to make sure you aren't over spending nowadays?
Go digital baby! Nowadays all your “banking” is done online or on free apps for iPhone and Android! I LOVE THEM! I can transfer money, pay bills, check on wires, and digitally deposit checks! I also know exactly how much money is in my account and can see all my transactions...
So make sure you enroll in your bank's online banking program and download the free app.

Do not buy crap you will never use or need. How do you determine what is crap?

• If you are buying it to impress others.
• If its a FAD item and you will get bored with it in a week.
• If its a collectors item (wait for when you have more money)
• If it has an “As Seen On Tv” label on it
• Anything that sounds too good to be true.
• Anything that has a low rating on Amazon
• Do not hoard discontinued beauty or food products! You will never use it all and its a waste
of money and shelf space. You will find something to replace it in time.

Learn from my mistakes, save and take care of your money now so you have lots later when you
need it...

To Recap:

1. If you are shopping to fill a void in your life or depression, get help instead, get into therapy
2. If you are with a man whose a stealing loser with no job KICK HIM OUT!!!!!!!!!!!
3. Get on a budget, save money
4. Do not buy stupid crap you dont need