Eventual Millionaire

I am two weeks away from my due date and figured a general update of my finances etc are due. (since I probably won't be updating any time soon after the baby!)

I am taking 3 months off of work for maternity leave (though I do only work part time) so that will erase around $1200 per month of my income that comes in. Usually the summer for my husband's work is super busy, but since we have two babies due this summer (SIL is due in August) a lot of work during those 'baby due' dates had to be refused. Plus we don't have prenatal/delivery insurance for the baby so we have been expecting to pay cash. We are also keeping my son in daycare (part time is over $500 per month) because I think it's the best thing for him. He LOVES his school and I want him to be with his friends instead of possibly playing second fiddle to the new little girl in the house.

So what does this mean to our finances?
Ouch.

What am I going to do about it?

Updated Budget: We have updated our budget and cut out some of the things that we could. We spoke about switching to cable internet because it is now cheaper than DSL for the first year. I changed our insurance policy so our plan doesn't cover as much preventative, but is a LOT cheaper than what we would spend on preventative anyway! (I wish I had looked into that one sooner!)

Hospital Negotiation: I spoke to the hospital to find out what they offer to people paying cash for a baby. We don't qualify for any state aid (and wouldn't want it if they did, I want to earn what I am given!) but they do have a program through the hospital that can lower our bills substantially. So the $10,000 we have set aside for the baby (outside of the emergency fund) will not be completely gone after the baby is born.

Daycare: My son's daycare implemented a new flexible plan for the summer. I was so excited, since their flexible scheduling means I can keep him home and not have to pay for that day. So I may try to lower that $500 per month by keeping him home more.

Emergency Fund: We have our emergency fund in place. While this situation has been expected and isn't considered an EMERGENCY I can't see anything more important than spending the first 3 months with my daughter. So it is there if we need it.

Worrying: This is one of the first times that financially I am not worried. I am not exactly sure why, but I normally am a worrier over where money is coming, and if we have enough. Right now though since we have done it before (with my son) I know we will get through it. I also have faith in myself that if things aren't going well we can pull ourselves out of anything. This is a first and something I am very proud of!

So I may go on a bit of maternity leave from the blog too! (though if I have a wonderful baby that sleeps a lot, maybe I'll update it more than I ever have in the past, you never know!)

The shower went great! Though I was dead tired afterwards. My sister in law seemed to have had a great time. So here is the run down of costs:

Invitations
Stamps $8.40
Invites (free, my sister in law gave me them actually!)

Games/Prizes
Quality Chocolate $3
Plant $3.78
(my mom gave me candles and other things for prizes!)

Food
Homemade Cake $12.34
Drinks $6.43
Chips $3.50
Meat and Cheese $23.97
Bread $9.55

(others are bringing, pasta salad, artichoke dip, mini quiches, brownies)


Supplies
Streamers $0 (had leftovers from my shower)
Paper Plates $1
Name Tags $0 (played a different game instead)

Total: $71.97

Yay! It was under the $75 limit I set for myself. The sandwiches were more expensive than I had thought, so I didn't do the veggies since other people were bringing so many appetizers. We also had a TON of meat and cheese and drinks left over. So in reality it didn't cost this much either since we had so many leftovers. (saved on our groceries for the week!)

All in all it was a good experience, I tend to worry to much about how nice it will be, but it turned out to be very nice and I had a blast running the show.

I am planning a baby shower for my sister in law at the end of April. When you are looking to be helpful and throw someone a shower you never think about the time and money involved, you just think that it would be something very sweet to do. I've had quite a few showers (bridal and baby) and they have seemed so well put together that I never think of all of the work!

It does take a commitment to pulling one off, including time and money. Since I am about as frugal as they come I have been trying to figure out the best and cheapest ways to put together a baby shower that doesn't cost a lot. I have no idea how much people normally spend on them though so I'm guessing! (one bridal shower we gave was over $100 per bridesmaid with 4 total bridesmaids)

This shower I have a budget of $75. I picked that a bit out of the air, but I am hoping to stay within it. I already had pink balloons, and since I am having a girl there were left over pink plates and cups from my shower. Here is a small break down of what I intend to spend:


Invitations
Stamps $8
Invites (free, my sister in law gave me them actually!)

Games/Prizes
Quality Chocolate $5
Plant $4
? $3

Food
Homemade Cake $10
Drinks $3
Chips $3
Sandwiches/platter $20
Veggies $8

(others are bringing, pasta salad, artichoke dip, mini quiches, brownies)


Supplies
Streamers $2
Paper Plates $2
Name Tags $2


The total so far of the budget comes to $70. I think the cake may end up being more expensive because I am using a Martha Stewart recipe, and going to make it into a monkey. (I don't think my sister in law reads my blog... hopefully not!) So it'll be good to have a little room, especially if I need to pick something up last minute.

Also for a gift I ended up painting a large canvas for her daughter's room with their theme. That way I can save on the actual gift also.

The one piece that I am missing is favors. I have been to quite a few baby showers and I am never impressed with the favors that I leave with. In my opinion people should save their money and no worry about getting a little plastic baby bottle with chocolate in it or something for favors!

So those are my thoughts, I am just hoping everyone can get together and have fun and eat, and my sister in law can enjoy a day all about her and her new baby!

I had another 'Becoming Debt Free' Class on Monday and I created a resource list of great websites that I have used, or that friends have told me about in regards to saving money, and becoming debt free. So here is the massive list to everyone that read this blog! Hope you find some gems!

Credit Report
Order it online at AnnualCreditReport.com
Call 1-877-322-8228.
(don't use freecreditreport.com!)



Frugal Information Sites
www.livingonadime.com
www.allthingsfrugal.com
www.stretcher.com
www.frugalvillage.com
www.101waystosavemoney.com


Communities Online
www.ncnnetwork.com - Forum and progress report community
www.daveramsey.com - Provides a radio show daily
www.wisebread.com – Easy to use forum and great articles on finance
www.savingadvice.com - Articles and community of saving advice



Tracking/Calculators
https://www.networthiq.com
cgi.money.cnn.com/tools/debtplanner/debtplanner.jsp - Debt Reduction Planner Calculator


Coupons
printable-coupons.blogspot.com
www.wow-coupons.com
www.keepcash.com/coupons
coolsavings.com
www.coupons.com
wantnot.net


Buying/Selling
craigslist.org
www.ebay.com
www.unclehenrys.com - A Local New England Site
www.swapthing.com – Swap items instead of buying something!

Other
www.gasbuddy.com
www.pricegrabber.com - Site to shop for the best prices

So it is now March, and we have had quite a few snowstorms this week already. Yesterday and today were beautiful though, which reminds me that Spring isn't a long lost memory, but something that should be here soon! It also helps that with daylight savings time we now have light outside until 7pm. A VERY nice bonus.

So in general March is usually a great month for income for us. For my husband, college shows tend to be happening now. This year we have been so busy getting other projects off the ground that March is a barren month for us. I think we have two sources of income for the entire month (we normally have around 8-10 at least!). So I am looking to be very strict with our budget, and find out if we now have to dip into the savings. I would rather not of course, so I am going to do everything I can to bring in income.

The first part means working more at my contracting job. I make great money at it, and only work about 5 hours a week. I am allowed up to 10 hours per week, but there hasn't been a lot of work. I need to be more proactive and have my employers find work for me that would benefit them. I have a few ideas already and I am hoping that will bump up the hours.

Second, I need to make sure my budget is tip top. I am teaching a budgeting class, so it has reminded me of what we did to get out of debt, and while we are still doing almost everything, I let a few things slip. I remember a opened up a Bank of America account for a promotion and I got $75. I didn't know how long I had to keep it open, and I forgot about it. It has been charging me a $6 fee every month! Geesh! So first thing on the list is close that account! The next are to really stick to all of my budget amounts for the month. They are lower than normal because I knew about the income drop.

Finally, I need to have faith. I am not a religious person, but I do know that having faith, that everything will work out, always helps me. This month is not going to break us, and I know our income is up again next month. It is hard to have to think about taking money from the savings, but I also need to be thankful that the savings are there. I do not have to get a 'real' job to make ends meet yet. I will on the other hand have more faith that things work out as they should, and life goes on. This month will be a memory soon (especially when we have baby #2!) and we can get through it and be prosperous on the other side.

So March is in like a Lion and hopefully out like a very financially sound lamb!

I am currently listening to the audiobook, The Knack by Norm Brodsky, and Bo Burlingham. It has been a great and eye opening book for me. I actually downloaded it for free from Audible.com because they will give you a free trial which entitles you to a free audiobook.

Norm Brodsky writes for Inc magazine and I have read his articles for a long time. I have always seen the ad for the book next to his article but I never paid too much attention. I have a HUGE list of books I want to read and it didn't get pushed to the top until last week. I've formed a partnership with a local business coach to gain experience and knowledge. He suggested this book highly.

I started listening to it last week, and I am just about finished. It is a book about the in's and out's of running a small business. The authors provide a lot of real life examples within business and how they learned lessons the hard way. They specifically talk about starting your own business and what you may need to know, and then go deeper into having the company after the start up phase (usually around 3 years or so). It gets into detailed information on gross margins, and how important the numbers are to a business. Most decisions can be made easily if you look at the numbers.

This book starts to get my entrepreneurial juices flowing! I have wanted to own a company (with employees!) since I was little. I am self employed now, and love it, but there is a piece of me that wants to be able to give back to the community and hire people. My path right now seems a bit to crazy (baby due in less than 3 months and all.. :) but I think this ideas leaves a lot open for the title of my blog.

I've wanted to become a millionaire since I was younger too, but not for the money (though I will completely admit the money would be nice!) I want to be able to provide a valuable service to people, and support my community. Owning my own business (that is successful!) can accomplish both of my goals. I want to keep this in mind for the future, and try to figure out where my path leads after I begin to have more time on my hands.

--On a side note, do any moms out there struggle with wanting to be supermom and be home for their children but also want to go out and be in business? I have the type of personality that wants to achieve all the time! Teaching a toddler to use the potty is an achievement but not exactly enough. I would love to work full time, but think it will have to wait until my kids are older so I can provide the best for them!

So it is finally March, and we are getting a huge snowstorm tonight. Ah well, spring has to be in the air at some point!

I started the Personal Finance: Becoming Debt Free class last week. There was a snowstorm then also, so only 3 of the people in class were able to make it. But it went well. I realized that they really wanted ideas to cut costs from their budget so I started to create a handout for that specifically. I'll update my blog with the information I have found so far.

Below was the class syllabus:

February 23rd

-Description of class
-My Debt Free Story and Philosophy
-Debt Free Plan (Part 1)
-Your Reason
-Be Honest, Add up your Debt
-Figure out your Net Worth
-Start to Track it for this week (Handout)

March 2nd

-Review: How did the week go?
-Debt Free Plan (Part 2)
-Starter Emergency Fund
-Budgeting (Handouts)
-How to Track your Expenses
-Gratitude

March 9th

-Review: How did the week go?
-Debt Free Plan (Part 3)
-Increase your Income
-What can I sell?
-Is that the best you can do
-Stay Motivated
-Money Beliefs


March 16th

-Review: How did the week go?
--Debt Free Plan (Part 4)
--The Next Steps
-Coaching around Money Issues
-Open for Questions

Just a few updates from me, I just installed a captcha comment verification so I don't have to worry about spam comments anymore, yay! Sorry it has taken me so long to do it.

I decided what to do with my birthday money. I bought a 10 week Tai Chi class, which is exciting because my doctor is letting me! (Having a few issues with the pregnancy so I can't work out, and I need to get moving!) Also we upgraded our cell phones, so I bought a LG Incite, which was $100 after the rebate. Plus the $30 per month for the internet package which will come out of my personal $50 per month until I can cancel it. (I'm just waiting for the rebate check until I cancel it)

Next up is my first workshop! I am teaching a class at the local adult ed called, Personal Finance: Becoming Debt Free. It starts a week from today and I am very excited about it. I am doing my best to try and make finances a fun subject! If anyone has any ideas to share it would be appreciated, but I will post the syllabus next time so everyone can have an idea on what it will be about.

Oh, and Happy Valentines Day a bit late!

Here is my list for cost cutting while you are becoming debt free. I'm quite sure all of them can be found on the web somewhere, but this is a list that was specifically helpful to me while I was doing it. Some items are big and cut costs drastically, and some items are small, and will save you a few dollars over a long time period. Over at the Simple Dollar, there have been posts about what is REALLY worth the time and effort. My opinion is, if you want to do it, go ahead! Even if it is a small change, it could make all the difference in your attitude of taking control of your finances. If it sounds like a huge pain for not enough savings, then it's best not to do it. Either way, great job for doing any of them!

Here is the list!

Budget: Ideas for Cost Cutting

Autos
Sell a car, replace with cheap 'junker' car
Look for cheaper car insurance (http://www.insweb.com/)
Carpool
Make sure your car is maintained (tire pressure etc)

House
Install CFL light bulbs
Install a programmable thermostat
Reduce drafts and seal your home
Cancel land line (use VoIP or http://www.skype.com/)
Cancel Cell phone
Use Cash Oil (http://cashoil.com $1.65 gallon - a local company)
Call utility companies for better rates (ask, is that the best you can do?)

Entertainment
Cancel club memberships (even BJs!)
Reduce or eliminate cable
Use the library
Volunteer at theaters or organizations to see free entertainment
Use Redbox! (free promo codes, dvdonme and breakroom)
Hulu.com for free movies or station websites for shows

Food
Cook at home – reduce eating out, Brown bag it!
Start a garden, or go to the farmers market for veggies
Buy generics
Make vegetarian meals
Coupons.com or coolsavings.com for coupon printing
Start a price book

Insurance
Lower your deductibles (my car is 1000, my homeowners is 1500, my health is 5000)
Use term life insurance

Other
Call the credit card company and ask for a lower APR
Eliminate services (housecleaning, landscaping, etc.)
Strongly reduce or eliminate clothes shopping
Reduce grooming expenses
Reduce or eliminate consumable habits (smoking, alcohol, etc.)
Craiglist.com (example I got a free Washer and Dryer there!)

Today is my birthday, and my wedding anniversary with my husband. We celebrate 6 years today. We have now been married longer than we were together beforehand (5 years before we were married, a total of 11 years!)

A lot has changed in those 6 years, and it's amazing to think of what has changed in 27 years. I can't imagine how much could change in 27 more. I feel like I am just getting started with this thing called life.

It's off to play with my son, go shopping then go out toa movie (Slumdog millionaire) and dinner!
woo!