Garage Sale Results and Good Relations with Element Money

[sabrinamari]

Our garage sale went well: the weather was great, people showed up over an hour early and we made $300. Our storage space is almost empty now, and we'll be ending our contract at the end of the month. The sale set off a chain of realizations centered on paying close attention to Element Money. These quickly snowballed into a money magnet miracle.



Michael also realized that we could throw our giant change jar of travel funds onto the bathroom project, since all our planned 2009 joint travel is now payed for. That yielded another $141.

I also remembered that several of my KIVA loans were due to be paid back by mid-July, and sure enough, I found $25 in my KIVA account to redeem when I logged in.

Then it occurred to us that the $100/month we had been using to paying for the storage space could be painlessly shifted to the bathroom rebuild fund for June and July without creating any additional financial stress. Yield: $200.

This morning, Michael remembered that he is getting a random $100 refund in the next week or so that he didn't work into his financial plans: more for the bathroom funds!

And it occurred to me that if I shifted my usual monthly credit card charges from my Chase Travel card to my BP Gas card, I could redeem a $25 reward check by mid-July (if not earlier) without any additional spending.

Finally, I noted that a friend owes me $10, and since I forgot about that, it's not part of my usual financial planning.



Beginning of weekend: $1000.00 in rebuild expenses due about mid-July
End of weekend: $801 for rebuild project, pain-free
Priceless: The payoff for paying close attention to Element Money

Comments

[skyefyr.livejournal.com]

When we do talk, I'd like to learn more about KIVA.

[glenmarshall.livejournal.com]

"Paying attention" has been my main strategy for a long time. It works for more than money.

I'm strongly intuitive. When I pay attention to whatever-it-is, the data feeds my intuition. Then, when it comes time to make decisions, my gut-feel choices are better... not perfect, of course, but good enough.

It does not work as well for non-intuitive people, but is still produces better choices.

[ingridsummers.livejournal.com]

You rock! We are also looking at our money manegment (or mis-management). We're not watching as closely as you, but, for the first time we're consistently paying attention and paying everything on time. We also have $$ in savings for our summer trips, bathroom repairs and shortfall while the apartment is vacant for a bit.

[lapiswitch.livejournal.com]

Do you have any budget worksheets/programs that you recommend? I also need to track what we are spending and where. We make enough money to be sitting pretty but we never seem to have that luxury when it comes right down to it.

[sabrinamari.livejournal.com]

" 'Paying attention' has been my main strategy for a long time. It works for more than money.

I'm strongly intuitive. When I pay attention to whatever-it-is, the data feeds my intuition. Then, when it comes time to make decisions, my gut-feel choices are better... not perfect, of course, but good enough."

This exactly my experience. It works with money, with physical fitness, with career advancement, with meditation: with anything that you want. You get what you focus on.

[sabrinamari.livejournal.com]

I am so proud and excited for you. A change of this magnitude requires tremendous consistent personal growth. You really have to want it enough to find the tools, assemble resources to support all your new behaviors and consistently make time for reflection and self-correction.

You really have to want it!

[sabrinamari.livejournal.com]

This is a great question: a podcast-inspiring question. :)

And my answer is a little starnge: no. What I recommend is that each person spend some time reflecting on their current relationship with money, preferably on paper.
Then I recommend making a list of all the practical manifestations of that relationship (credit card accounts, daily cash expenditures, unexpected but regular expense---car insurance premiums, for example---retirement accounts, emergency fund accounts or lack thereof...)and finally experimenting until you discover how it is easiest for you to track/check in with that item.

For me, this would look something like this:

* Element monet relationship musings (LJ and paper journal)
* Major credit card accounts (bookmarked online web access)
* Vanguard IRA retirement account (same)
* Vanguard money market fund (same)
* Monthly budget (paper system carried about in a day planner file)
* daily/weekly expenditures (withdraw $100 for the week in cash and make daily expenditures from that cash reserve rather than tracking)
* Regular yearly expenses: GEICO payments, life insurance annual premium, Yule budget, FSG costs (a series of computer files plus notations in my daily planner budget)...
* KIVA giving (bookmarked online access)

BUT Michael's list would look very different:

* ALL accounts except for mortgage (bookmarked online web access)
* Monthly budget (EXCELL spreadsheet he created)
* Net worth monthly tracking (EXCELL spreadsheet he created)
* All other money related tracking (computer-based EVERYTHING---all his own creations)

In other words, I need paper tracking. I don't just want it, I *need* it to feel good and whole and happy. If my budget isn't in my handwriting at my fingertips in my planner, I get very stressed and unhappy.

Michael *needs* to do all his tracking via computer, and no other financial program gives him the level of control he needs. He needs 100% control over the design of his computer files, so he makes his own.

The point is this:

Everyone is going to have a set of tracking (attention-focusing) practices that fit them perfectly. I recommend that each person first set their intent---why they want a stronger relationship with Element Money?, then do some reflection on what suits them and finally, create a system that is perfectly suited for themselves personally.

This means that spouses/partners will have to be able to move, intellectually and emotionally, from their personal system to their partner's system while continuing their own, or the family unit will have to decide on a family system they can all share for joint money matters.

The reason I don't recommend a one-size-fits-all approach is that i believe that tracking will ONLY work if it is designed to fit each individual perfectly, like a custom-fit bra.

If it's not perfectly suited for your life, you will never integrate it completely into your world.

That's my experience, anyway.

[lapiswitch.livejournal.com]

Thank you so much for such a well thought out response. Your work has really been inspirational for me. I've started making the moves recommended by Suze Orman in her Save Yourself Plan. All of seems a little out of balance because I don't feel like we have a good handle on what money we have and where it is going.

I think what we might need to do is start at the very beginning -- where is the money going. Then we can figure out what we think we *need* money for and create a solid, livable budget for ourselves. Once we've managed that step, then we can see where we can save money to ensure that we are financially secure, especially with this crazy economy. I also need to figure out my break-even point with commuting.

I think a lot of it for me is like Suze Orman says -- I start thinking about it and delving in to it and it seems like so much is out of balance that it becomes overwhelming and it is still easier at this point to be the ostrich... but it won't be for much longer if the economy continues as it is, which it will and just get worse before it gets better, IMO.

[sabrinamari.livejournal.com]

I am very glad that my hobby is helping you. It brings me peace to know this.

You are wise to reflect on your process as you start shifting. Being willing to do this is about 70% of the battle, I think. It's daunting, this process. But careful, reflective action taken one step at a time can get you a long, long way.

I agree that the economy doesn't look good. That makes this the best possible time to change. I'm rooting for you, lapiswitch!

[lapiswitch.livejournal.com]

Cudubh and I have combined our accounts -- now we have two checking accounts, a combined savings account, a savings account w/ me and our daughter, and my personal account. This morning I looked at the now combined savings account that he'd started. I told him we are closing it and opening a different type of account. The only activity on it has been services fees for having the account. So we are going to spend the Saturday morning at the bank again and allocate regular funds to go to a new savings account that is fee-free. I think that I'll start documenting what we are doing and maybe that will help inspire others to, like your work has inspired me!

[shades-of-nyx.livejournal.com]

I love Quicken!
I can also do a pretty damned good job with something as simple as MS Excel.
The nice thing about the more sophisticated programs is that they link to online tax prep kits. Thus you can upload your Quickbooks (subset of Quicken) budget and receipts for the year into Turbotax,and your taxes are done!
This is the awesome!

[shades-of-nyx.livejournal.com]

Please be sure that each of you has your own money in some safe place that the other one doesn't have access to. This may save your life someday.

[lapiswitch.livejournal.com]

I've got mine! And I've been in the position twice where I needed to get out and was glad I had 'hidden' money. I'm actually going to encourage him to get a separate one as well.

We've been very, very hesitant about combining accounts, waited 6 years to do it in fact. It's finally gotten to the point though where both of our names are on enough bills, car loan, etc that it now made more sense to combine accounts.

We've both been burned by bad relationships that did serious financial harm and learned that lesson the hard way.

[(Anonymous)]

Documenting your transformation is a great idea. Without a doubt, some of the folks reading your journal will be faced with very similar issues and problems, and your progress can help ease their own journey.

Whatever innovations/solutions you develop, I guarantee that they will inspire someone else!