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Step 2: New Habits

July 7th, 2015 at 10:08 am

My financial life has seen more ups and downs than a roller coaster so this for me is the more important part and I'm sure will be the the hard(est) one - forming new habits.

So far, here are some of the new habits I have in mind:

(1) Make a budget (and stick to it). I have one which I know I should stick to as strictly as I can.

(2) Track my day-to-day expenses. I've tried this many times - for a week, then it gets so tedious that I forget about it. But I know this is important to have an idea of where my money goes.

(3) Think and stay positive. I made a lot of mistakes in the past. I can't help but think about it with much regret. Sadly, this still cause me sleepless nights. But worrying and stressing about it will not help me in any way. I admit, the future seems blurry to me sometimes butI have to stay hopeful and think only positive thoughts that I can still turn my situation around. I have to keep my eyes on the prize.

Posted in Step 2: New Habits | 8 Comments »

8 Responses to “Step 2: New Habits”

  1. VS_ozgirl Says:
    July 7th, 2015 at 12:17 pm 1436271463
    1436271463

    I totally understand having a financial life just like a rollercoaster! (Actually my blog page is titled "trying to survive the rollercoaster ride of my finances" and things will go smoothly and I will go to change the title and then something will happen to make me realise why I have the title up there in the first place). I have been doing better this year though because I have paid a lot more attention to our finances and try to stick to the budget as much as I can. I have a set budget for bills every month and then I also have an app in my phone for our weekly spending (so for example if I'm at the shop and I spend $50 I put the amount straight in. I can then see how much I have left for the week. There is a saying I always think of when doing this "take care of the pennies and the dollars will take care of themselves". By watching your smaller purchases you are less likely to overspend and you have more room for growth. It all adds up.

  2. CB in the City Says:
    July 7th, 2015 at 12:23 pm 1436271802
    1436271802

    For tracking my expenses, I set up a simple spreadsheet with date, item, cost, and category. I save my receipts and I fill in the information in batches. (If I spend something and don't get a receipt, I'll jot it down right away, usually on one of the receipts I am already carrying in my wallet, so I won't forget.) It's not tedious or time-consuming, and I love knowing exactly where my money goes. It's really empowering.

  3. snafu Says:
    July 7th, 2015 at 04:08 pm 1436285322
    1436285322

    I wonder if you'd be willing to reveal the interest rates on your various accounts. There is such a huge spread between savings rates paid and interest rates charge.

    Have you gone through your home yo note items in good condition you've not used in the past 18 months? Items that no longer serve you or your family's needs merely take up space, often morph into clutter and are better sold on Facebook sale page or CraigsList to recapture even a small percentage of cost. You don't want this to be overwhelming, just take a photo of one or two items to list as items sell.

    Have you looked at Mint.com? You might find it helpful to track income, expenses and spending. I was shocked to discover how much money was leaking away weekly on small, $1. - $5. spends. It may take conscience effort at first, after 21 days you'll have established a good habit.

  4. starfishy Says:
    July 7th, 2015 at 05:47 pm 1436291225
    1436291225

    good luck - i look forward to hearing about your journey! Smile Snafu - in an earlier comment on this post, you pasted a youtube link that doesn't work. would you share the name of the person that you recommended for getting a house in order? thanks!

  5. scfr Says:
    July 7th, 2015 at 07:11 pm 1436296295
    1436296295

    Tracking the day-to-day expenditures is so important! It was a very important step for me when I began my journey to financial independence over 20 years ago. To make things a bit easier on myself, and therefore easier to stick with it, I carried a small coin purse in my handbag and put a bit of money in in that I recorded as "pocket money." If I wanted to buy a pack of gum or cup of coffee or something similar, I would use that coin purse money. When it got down to less than $1 I'd put a bit more in and record it. That way, I didn't have to record every single tiny purchase but I did keep track of how much I was spending on small purchases. Over time, as I began to spend more consciously, the coin purse no longer needed replenishing because I cut out almost all of those small purchases, and I stopped carrying it.

  6. snafu Says:
    July 8th, 2015 at 02:54 am 1436324095
    1436324095

    starfishy requested from You Tube, cleanmyspace.com

  7. VS_ozgirl Says:
    July 8th, 2015 at 11:46 am 1436355983
    1436355983

    scfr - that's a really good idea! I am one of those people who tends to reward myself for doing the grocery shopping by getting a $1 chocolate bar or bakery item so am forever recording these small purchases, may have to adopt this habit of yours.

  8. Greenleaf Says:
    July 13th, 2015 at 02:18 am 1436753884
    1436753884

    I second scfr- I don't have the patience to save receipts for tracking, so I make the vast majority of transactions with my debit card/primary checking account and go through the statement every so often to enter the totals for different categories on my budget spreadsheet. If I do (rarely) withdraw cash, I just count that as personal spending at the time of withdrawal.

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