Planning for 2014

It may seem odd that I'm writing to you about 2014 right now, in June of 2013.  But really it's not that odd.  

The reason I bring it up is because today my husband and I put some things on the calendar for 2014.  Not big, huge, amazing things.  But things that require a little money.  So immediately after we put those things on the calendar, I then put them in our budget, because a couple years ago I learned a valuable lesson:

$$$ ÷ now = $$$

...but...

$$$ ÷ time = $

I wrote a little more about it in this post.  The concept is called "sinking funds" and it's so simple, it's brilliant.  You start putting a little money away now for future commitments (annual bills, trips, big purchases) so that when you need to write the check for the large amount later, it doesn't hurt.

Seriously, I encourage you to start doing this.  Keep it simple and pull out some envelopes, write next years plans on them, and start putting a small amount in them each month.  Or transfer it into another bank account, separate from your regular checking account, and record it in a notebook.  One day you'll be glad you did.  

Like in 2014.  

Holiday Spending.

A couple days ago I went to the mall and I thought of two things...

First thing:  we should consider rationing out the holidays by last name.  Or neighborhood.  Or even Pepsi fans vs Coke fans.  This way we will average out the number of people at the mall in any given month.  We were crazy to think everyone in America should celebrate Christmas in December.

Second thing:  the holidays are not an excuse to spend money.  Sure, we like to give gifts, but I'm going to implore you all to only spend money you actually have.  Shopping can be such an emotional rush, but there is always always regret on the flip side if you let the holiday feel-goods determine your spending limit.  Go into the holidays with a budget....like, a REAL budget.   Not a spending limit but an actual budget.
Write down all the names of the people you buy gifts for (don't forget to include individuals like postal workers, teachers, neighbors, etc, if you generally gift these people).  Then figure out your limit for each person, add all the prices up, and make sure it's a figure you c.an afford because its money you actually have.  If not, tweak your budget.  Please please please do not justify credit card spending with your need to supply presents to your friends and family.  Essentially, you are giving away a borrowed item with the expectation to pay for it in the future.  That's not what the holidays should ever turn into.

Oh, I'm not saying this from a high horse either.  I've been there.  In fact, one Black Friday a few years ago I applied for a store credit card at one of the stores I stopped at because I didn't have enough money on my other credit cards to buy anything.  (Yes, that was extremely humbling to type.)  I can guarantee I didn't need any of the stuff I purchased on that card.  In fact, I don't even remember what I bought.  And no doubt I paid much more than the crazy Black Friday steal-of-a-price for it when interest was tagged on over the next several months.  How foolish.

I'm not saying it is wrong to buy things, but it is unwise to buy them if you don't have the money in your bank account to pay for them.  So in short, please just be prepared with a battle plan for your shopping over the next month so regret is limited and you're not a slave to your credit card.