I was trying to write a post that sums up all the wonderful things that Gail Vaz Oxlade taught me, as a private little 'thank you' on her last day of blogging. I know everyone has their own financial guru, and much of what she said made her mine. Everytime I started, it felt like I had said it before. So I wandered through my archives and found one that I wrote on my first blogaversary. So much of what I said, I learned through her.
You can read the whole blog entry
HERE but below I have pasted my favourite parts. (and yes, I still have a lot to learn)
(July 4, 2009)
What I have learned:
- Budgets are not set in stone. You really have to tinker with and live with the budget to see how it works for me, and what parts don't. I think that was my trouble before. It would never balance so I'd just give up. When you first start, you may have forgotten an item or two, such as a once a year membership like Costco or CAA (AAA). You learn that some months take more money in certain categories than others and you have to learn how to deal with that. I have changed mine about three times in the past year and while it is far from perfect, for now, it is working.
- You have to become educated on money. I don't care if the reading is online or books, through classes or information at the bank. If we were all born knowing this information naturally, there would be no financial difficulties. Learn. Ask questions. Experiment. Ask more questions.
- Find a documentation system that works for you. I tried the spreadsheet. Oh lord how I tried. It just doesn't fit what 'works' for me right now. I haven't tried software like Quicken. I tried writing every single thing down. I love lists so this should have been a no brainer, but it was a disaster for me. It was too much detail and probably the reason past attempts failed miserably. I use a basic spreadsheet for how much goes into each category, but the rest is pen and paper. Right now, it just works.
- Find a distribution method that works for you. Some do it all online. Some use CC exclusively. At the beginning I tried a couple different ways but honestly it wasn't until I started using Money Jars (a la Gail Vaz-Oxlade) at the end of December, that things really clicked into place for me. It was as though the heavens opened up and I heard my own personal chorus of Hallelujah. Bright lights and all *grins*
- Set up your accounts to make it as easy for you as possible. Whether it is several actual accounts or online accounts that allow you to subcategory, or maybe you just subcategory in your head and it all goes into one 'savings'. I have two chequing and two savings; one set of each at two different banks. One is my primary one and the other I use for the special savings and the money I use for the boys' activities. In both savings accounts I have 'mental' subcategories.
- Be organized! When I started using the jars, I learned that if I didn't have that money ready to go at the start of that week, things got all........floofy, and I lost track of where things went. I also spent more. For me, I just have to have all my ducks in a row or it all falls to hell in a handbasket. Whether you're using jars or envelopes, or transferring money here and there, know what you're doing and when to keep things moving.
- Be organized paperwise. Ok I am still learning this. I was terrible at keeping track of my bills and statements; paperwork in general. I had no clue where my previous CC statements were, loan documents, utilities etc. I did a good job of keeping my pay stubs so woo hoo score 1 for me LOL I got myself a lovely organizer box and some pretty file folders and made categories, labelled lovingly. Some organize by month. I go by category. It's so nice to be able to go back and say 'hmmmm how much WAS my electric bill last June because this seems so high' and actually be able to find the bill. I still get behind in filing them into the box but that is more a product of being insanely busy and not taking a few minutes of down time to use it.
- Bounce back when you have a bad month. They happen. I call it "June". LOL Life isn't going to sail smoothly so learn from mistakes and make changes for the better.
- Little things add up. Since I started using jars, holy wow the snowflakes can add up. Change, recycled bottles, bits of money leftover from the jars. It is absolutely amazing how that can add up. I am still floored by it.
- Make it fun for you. Do whatever makes you enjoy the experience more. Whether it is pretty ledgers, labels and folders, or a fun blog, or a software program that makes you go 'oooo', make it fun so you will stick with it.
- Fewer, smaller targets make ME more successful. Everyone has different comfort levels for this. I tried several targets and it just felt like I was never getting anywhere. So the extra money I have and any snowflakes I get, all go to one. I've changed targets midplan because it wasn't working and thus far I think I've made the right decisions. It has to be what works for you.
- Don't get too attached to the blogs you read. I have seen so many PFs go poof in the past year. Some are announced. Some just disappear. I guess everyone has their own reasons. The first one I read was Twiggers and then she just poofed. I often think of her and wonder how her world is.
