Budget Archives - Page 5 of 11 - The Happy Homeowner

Kick Your Debt to the Curb in Four Easy Steps

Posted on January 21, 2013 by Jen

Debt. While it’s an unfortunate reality for most of us, I’ve never met a person who actually enjoys it. In fact, most of the people I know and/or interact with absolutely hate debt.

When I think of financial independence, I believe part of that equation entails being debt free. This means no mortgage, no student loans and certainly no credit card debt. When you’re free to do whatever you want with your money rather than send it to others, it’s much easier to accomplish your financial goals.

If you’re currently digging your way out of debt, here are four easy steps to get that much closer to being debt free once and for all:

Get Smart About Credit Cards

Credit cards can be both a blessing and a curse. If used properly (paid off in full each month, never charged over their limit, etc), they can be filled with great perks which include cash back and travel awards. However, left unchecked, they can be a source of high-interest, ballooning debt. It’s not worth the damage to your credit score to let this type of debt linger any longer than it has to–cut up or put away the cards until you’re able to use them in a more responsible, beneficial way.

Make More Money

Find a way to bring in as much extra income as you can and send every dollar of it towards your debt. I’m always looking for enjoyable ways to boost my income; from turning my passions into income sources to managing multiple jobs, all of the extra money I make is funneled to a variety of financial goals.

It’s important to note that as you increase your income, you should continue the same lifestyle you had before—this is not a time to let lifestyle inflation creep up; it’s a time to work yourself out of debt and on your way to financial independence.

Create a Budget

While it’s true that not many people actually enjoy adhering to a budget, it’s an invaluable tool for setting yourself up for financial success. A budget is a fluid, ever-changing entity that can help you track your spending, track your debt payoff progress and help you identify any unnecessary expenses that could be trimmed back. The key to setting up a good budget is to be realistic and honest about the numbers you’re entering for each line item.

Slash the Expenses

As you track your spending, pay attention to items that are sucking up your precious dollars but aren’t truly necessary. Some of the cutbacks I’ve made over the years include cable, shopping for clothing and dining out. I also set goals around cutting my expenses, such as my 2013 goal to cook at least 4 dinners each week and my focus to take my lunch to work instead of spending money in the cafeteria or nearby restaurants. With a bit of creativity, it’s possible to slash your expenses in a way that’s not detrimental to your current quality of life. Once you have that extra cash cushion in your budget, make sure to send the extra money straight to your debt.

By following these four simple steps, you’ll be on your way to a debt-free existence. Imagine how good it will feel to know that you no longer owe anyone another dime!

What are some ways you’ve sped up your debt repayment?

Do No Spend Days Really Work? (and a CASH GIVEAWAY!)

Posted on January 17, 2013 by Jen

I’ve always been a fan of no spend days. In fact, this blog has its roots in a No Spend Challenge back in 2011. For me, there’s something quite satisfying about knowing I haven’t spent a single dime extra in a given day.

Notice in that sentence how I typed the word ‘extra?’ That’s because I am a firm believer that no spend days and no spend challenges need to be about the extra, miscellaneous purchases that can wreak havoc on our budget–they’re not about the fixed expenses we must pay such as mortgage and rent payments, utilities, debt payments, etc.

How Does a No Spend Day Work?

For me, a no spend day means that I haven’t mindlessly thrown my money away. That means no meals out, no frivolous purchases of tea (not a coffee drinker–have actually never had it!), gum, magazines or any other small impulse purchase that’s easy to rationalize when it’s just a few dollars. It also means that I’m not shopping for clothes, spending money on entertainment or even filling my gas tank.

Isn’t That Cheating?

The argument with no spend days is that if you don’t spend the money one day on something you need (case in point, filling the gas tank), won’t you just spend it the next?

It’s true that in the case of the gas tank, I’d absolutely be filling it eventually. But the point of a no spend day is to get your miscellaneous spending under control AND to become more aware of your spending habits. By forcing yourself to not spend a single dime on a given day, you’re inherently learning more about yourself and your financial habits.

Benefits of a No Spend Day or No Spend Challenge

In addition to learning more about your spending habits, a no spend day can help you identify the leaks in your budget–those pesky nuances that, left undetected or changed, can send the best of intentions and budgets spiraling out of control.

By becoming more aware of your habits, you can seek alternatives that cost less. You can also develop strategies to help overcome impulse shopping and mindless spending. Remember, free costs you nothing but time and energy–something that is free usually has a positive impact on your budget!

Giveaway Time–Free Money!

I’m excited to be taking part in another giveaway–for even MORE cash! Enter now for your chance to win $100. And if you haven’t already entered, don’t forget about my other giveaway for $25.

a Rafflecopter giveaway

What do you think about No Spend Days?

Renovate and Organize Your Home Office on a Budget

Posted on January 16, 2013 by Jen

As I’ve mentioned, one of my 2013 goals is to renovate, redecorate and reorganize my home office. While future posts will highlight the before/after and various DIY projects I tackle throughout the process, today’s post is focused on the financial aspects of this endeavor. Or more importantly, how to save money while renovating and/or organizing your home office.

With this project, it’s all about the budget, baby.

Use what you have

I have plenty of shoe boxes, storage containers, cereal boxes, file folders, etc. lying around. With a bit of creativity and a small amount of supplies (duct tape, glue, a utility knife and yard sticks), I fully intend to turn these items into storage devices. Hopefully, I won’t also need a serious supply of Band-Aids as well!

Use-What-I-Have Budget: $50

Be a Discount Diva

I’m a self-proclaimed Curbside Diva, and I’ve been known to be a Discount Diva. By this I mean a dollar and thrift store connoisseur. I’ve never been too proud to shop in either type of store, and I’ve often found some great items at incredible prices while doing so. The plan of attack here will be seeking out sturdy baskets, a trash can, cheap frames, funky art pieces and a few other miscellaneous decorative/storage items.

Discount Store Budget: $100

DIY Your Heart Out

Much like my quest to make my own storage devices from items already in the house, I’ll also be tackling the larger parts of the project (desk, cabinets, etc.) on my own. I’m thinking a built-in desk, a la Young House Love’s sweet work space coupled with some overhead cabinetry ought to do the trick. I’ll also need to repaint the room as it’s currently a ~~lovely~~ terrible shade of mint green…ugh!

In order to keep the budget in-tact, I’ll be visiting the ReStore in my area, stalking the local second hand shops and making my monthly pilgrimage to Home Depot in order to find cheap options for this project. I’m also going to reach out to friends & family to see if they have any cabinetry they’re trying to get rid of and scour Craigslist for cast-offs.

DIY Budget: $350

Allow Only One Splurge

With my current plan to spend more time working from home, it’s a necessity to me that the home office be a calm, clean and uncluttered place. I also don’t want everything to be done on the cheap because I will be spending so much time here, and I think a balanced splurge will help the room feel more cozy. More Jen Zen Zone and less work, work, work. Therefore, I’ll be allowing myself one splurge item: A wall-sized mural.

Splurge Budget: $100

Account for Unexpected Costs

As with any major renovation or redecorating project, unexpected costs are bound to pop up. By budgeting for them in advance, you’ll be more likely to stay on budget for your home office renovation. The potential bonus is having money leftover to save or spend on overlooked items you need.

Miscellaneous Budget: $75

If everything goes according to plan, my entire home office renovation/decorating project will cost less than $700. Considering this sum includes furniture, paint, decor and storage, I’m pretty happy!

Total Project Budget: $675

Do you have a home office? How did you renovate or organize it on a budget?

Photo credit: clevercupcakes

Yes, My Boyfriend is Paying Me Rent

Posted on January 14, 2013 by Jen

In my most recent weekly miscellaneous updates, I’ve highlighted how my BF and I will now be living together, in my condo.

When we first began our discussions of where he’d be living (he’s currently living with a friend who now has his own girlfriend moving in soon, which sort of displaced my BF), many options were thrown out: He’d get his own apartment with a year lease, he’d rent month-to-month or he’d move in with me because I own and he rents.

We’d already thrown out the idea of renting out my place because the mortgage is so low and the location is extremely convenient for our current needs. While the idea now is to stay put, I haven’t completely written off the option to rent it out for the future as I know I’ll eventually keep it as an investment property.

The more we investigated the various options, the more it became clear he should take the third option and move in with me. Once that was decided, the ~~awkward~~ fun conversations about expenses began. Eventually, we settled on splitting everything down the middle.

This means that I’m essentially charging my boyfriend rent.

And as much as it felt awkward to have him joke about me being his “landlady,” I think this is the best choice for many reasons:

We’ll be sharing the condo

This isn’t like he’s renting a room or just staying over a few nights a week. He’s living there; my house is now our house. We’re planning to renovate the second bedroom into an office that includes a dedicated space for him to work from home (he’s a consultant and spends a lot of time working at home when he’s not traveling), and we’re tackling ideas for the kitchen renovation together as well.

I’ve discussed at length my desire to have it be our home, and I mean that 100%–I’m cleaning and organizing in an effort to make sure there’s room for anything he wants to bring into the house when he moves in. There won’t be any “you get those 2 inches in the closet” from this lady!

I’ll still pay for the condo repairs

Aside from the office renovation, I’ll be paying for any necessary repairs the condo/structure may need, and I’ll be paying for the kitchen renovation myself.

Why? Because these improvements are enhancing my property value and until we’re married, the condo remains in my name and is bettering my investment.

I’m a realist

Ultimately, I’m keeping a realistic outlook on all of this. Yes, we care about each other. Yes, we’re happy. But we’re not married or even engaged yet. Life happens and you never know when some freak event could turn things upside down.

Therefore, we’re both entering this arrangement as realists. I’d charge any other roommate money because they’d be living there, causing wear & tear and increasing utilities, etc., and I’ll be collecting rent from him for the foreseeable future. I’m just asking that he sends the check in an auto payment because it will be far too weird to have him give me cash or a hand-written check.

What do you think? Would you charge your BF/GF rent to live in your place?

Photo credit: z287marc

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