2009 Goals

My SMART goals for 2009:

Financial:

1. Pay off credit cards ($6000) by July1. Plan: pay $900/ month x 6 + $600 from Job 2.


2. Have an emergency fund with two months living expenses by Dec. 31, 2009. $600 x 6


3. Start sinking funds for next car and house expenses. Still working on details-$110/month right now.
4. Use YNAB to track spending and budget. Update weekly.

Personal:

1. Work out or walk 2x a week.
2. Walk dog every day.
3. Recommit to morning and evening Flylady routines to reduce mental clutter.
4. Attend a Bible study.
5. Act on my interests and learn something new--possibilities are astronomy club or Master Gardener

House

1. Make a planned project for each month to improve the house. Projects include: painting the kitchen, my bedroom, 2nd bedroom, refinish wood floors, make steps to the river, new bathroom floor and tub walls.


2. Start a compost bin and plant a garden.

These goals are a work in progress, but it feels good to have a direction to start 2009.

Does anyone remember this Indiana blog?

I read a blog post a few weeks ago about a mother-in-law who volunteered by picking up surplus food from restaurants, especially Panera, and delivering the food to homeless shelters and group homes. I would like to find out more about the organization, but I can't find the blog or the link to the charity. I think it was located in Indiana. If you have any clues, let me know!

YNAB for the New Year

One reoccurring problem I have with budgeting is mentally spending allocated money more than once. Since this is physically impossible, my debt-reduction plan is not very realistic. For example, when I first began trying to pay off my debt in June 2007, I estimated that I would be debt-free in December 2008. While I have made great progress--reducing debt by $7500, my estimates were way off! I need a system that keeps me accountable. My budgeting tools in the past were pencil and paper first, then last April I found an Excel worksheet from Mr. Debtbeater based on bi-monthly pay. I was diligent about planning my budget, but not so diligent about entering actual expenditures. I tried jars and envelopes, but was still able to avoid the consequences of overspending. In September, I looked at spreadsheets to track expenses, but my brain was so stressed with school and then moving that I couldn't get started with anything new.

I first saw YNAB online awhile ago and was intrigued by it, so I decided to give the Excel version a try. YNAB stands for You Need a Budget, and is based on 4 Rules of Cash Flow that merge nicely with Dave Ramsey's Baby Steps and the envelope system. What I like about it is that if I overspend in one category, I have to figure out a way to "fix it" either this month or the next. I can spend less in that category next month, or move money from another category. My budget will be a better reflection of my actual spending.

I'm sure I will make mistakes and miscalculations, but with the YNAB software, at least I'll be aware of them and be more likely to correct my errors. I am excited to try January's numbers.

Does anyone else use YNAB?

Debt Reduction Progress

As I try to work out my goals for 2009, I want to evaluate my financial success and failures for 2008.

At the beginning of 2008, I had $11,700 of non-mortgage debt, and a $162,000 mortgage. During this year, I have paid $5500 to debt, sold my house and purchased a smaller one. My current status is:

Credit card debt:
Dec. 2008 $6200

Emergency fund:
Dec. 2008 $850

Mortgage:
Dec. 2008 $117, 000 (I need to look up the exact figure)


I am pleased with my progress in 2008. I have not been "gazelle" intense in paying off debt because another of my goals is to enjoy life now with my children and friends. Some of my splurges were: buying a share of a 20-year old boat, going to Ocean City with friends from college, going to Charlotte for a cross-country race.


I want to continue to be able to have dinner out with friends and to perhaps plan a trip to NYC in the summer to visit DD2. I want to budget for these important expenses as I plan for 2009. Realistic planning is a challenge for me. I think I need more accountability in my budget. I really want to find a system that works for me.

Get Inspired!

Great quotes from wise people:
1. From Suze Orman, "No blame, no shame". Start where you are. Just start! Thanks to Blogging away debt for the link.

2. From Sharon Rose, "Slow progress is better than no progress". Thanks to Ms Money chat for the Financial Nugget.

Help for the debt-free journey

I discovered the personal finance blogging world last year about this time. These are some resources that were helpful to me.

Dave Ramsey's Total Money Makeover opened my eyes to the possibility that I could successfully take control of my finances. Mary Hunt's Debt Proof Living is another website with good information. I recommend checking out books by both authors if you need a vision for your financial future.

Bob at Christianpf has a series on getting out of debt as well as spreadsheets to download.Ncn at nocreditneeded has a series called debt reduction 101.

Lynne at Beingfrugal has practical tips to reduce spending and live within your budget.



The first debt reduction blog I started to read was JW at Need to be debt-free. He and his family have made great progress while dealing with some setbacks along the way.

I have been inspired and encouraged by the other blogs on my side bar, but these were the ones I started with in December 2007. They helped encourage me on my journey in 2008.
I haven't been perfect, but I have made progress in 2008--I have a plan. I have paid $5500 to debt reduction. I have been able to pay for several unexpected expenses without going further in debt.

Check out the Christmas Giveaway at Christianpf.com

Bob at Christianpf.com is having a great giveaway--ipods, tax software, Pampered Chef, books--lots of chances to win. It's easy to enter, but hurry. The contest ends on Dec. 29.