Tuesday, August 2, 2011
This Isn't Monopoly Money
My heart dropped when I opened a over draft letter from my bank this weekend. If you haven't read about all the hard work that we have put into our bills:
Cut Off Notice
Where is the Water Bill?
Keeping it Between the Mustard and Mayo
Holy Cow, I Am Finally Growing Up
This just isn't something that happens to us anymore. We pay our bills. On time and in full. We take care to make sure that our money goes to the things that it's supposed to.
I was certain that this mistake was made by my bank. I am just too careful.
But it turns out that yes I had asked my bank to send money to my Paypal account - rather than the other way around.
Twice.
Since we only use our checking account to pay 2 bills (or mortgage and a student loan) of course my bank declined the payment, issued a $20 overdraft fee for the first transaction.
That was until we made the deposit to actually pay the mortgage.
By the time that I realized what was going on the second transaction had taken $150 from my checking account ensuring that my mortgage check would bounce. And after talking with PayPal I was informed that the first transaction that had already been refused would be sent through for a second try. It would go through my bank informed me unless I paid a $22 stop check fee. So I did.
After work we were able to deposit enough money to cover the fees and money that was transferred to ensure that our mortgage (which I worked really hard to get in the first place) payment would be made on time. I also sent the money back to my bank the second that it landed in my Paypal account along with the money that I was originally trying to transfer there in the first place.
It was a stupid mistake, but one that I am thankful for.
It has made me realize that while dealing mainly in cash was a good thing 2 years ago, in fact it was necessary then. Then it ensured that we never spent money that we didn't have. We paid the bills first and what cash was left we were able to use for needs and wants.
But now?
We are adults. I mean we were adults before the word mortgage was in our monthly budgeting vocabulary, but now we are adults with high stakes and responsibilities.
A different method of budgeting is certainly needed. A different way of saving is warranted as I don't want to be left scrambling the next time that one little mistake puts so much in jeopardy. I don't want to be left scrambling if some expensive or necessary goes haywire our house.
Even as guilt inducing and dramatic as this mistake was, I am thankful that it happened. It's shown me that what we are doing just isn't working where we are in life.
So what I need is help.
I wish that it was as clear as the day that I decided to pay our bills, pay them on time and live off of only what was left. That was a piece of cake compared to this. I know that we need money in savings so that when something comes up that we are not expecting, we are prepared. But what I don't know is how to break out of the strict rules that I have set up for us. Do we go on a spending freeze or just make a payment to ourselves each month? How much is enough put aside? How do you go from cash only to a different way - and what is that way? How do you pay for things like school clothes and supplies while still sitting aside some money each month?
What are your best budgeting and saving tips?
How much do you keep in your savings account for emergencies?
Do you have a cash only system or use your checking account?
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Get YNAB!!! http://www.youneedabudget.com/
ReplyDeleteIt's the best thing we've ever bought. We've been using it for over 6 months and it's taken so much stress off of my mind. You can make categories for EVERYTHING you need, whether it's saving up for something or paying of large purchases.
They have a free trial, tutorials, people to help - they make it really easy to use. We set it up a bit differently than they suggest to make it work for us, so if you decide to give it a try,give me a shout and I can help walk you through it. :D
We have a lot of different savings accounts:
ReplyDeletecar insurance: each month we save to pay for it. We pay it every 6 months and we keep the money for the deductibles there too.
medical: copays for ER for hubs & I. Our regular dr copay is just $10 but ER is more.
rent: this we keep working on it our goal is to have three months of rent money in case of an emergency.
and the ever working savings for gifts and big purchases like a new tv that we need/want.
my husbands job has 401K and supplemental so he puts 10% of his paycheck and his employer match the amount he puts.
So that's how we "try" to save but not every month works perfectly. Last month my mom was sick and I had to travel so I ended up using the money for BlogHer.
I wish I had the answer to your question. With me being a stay at home mom, we're still trying to figure out a way to save what's left over at the end of each month. Our problem? There usually isn't much left over. Since leaving my job, we haven't been living like we only have one income so that's the main part of our problem. Actually looking at our bank statements last month revealed that to me. It's tough.
ReplyDeleteHmm. I'm not helping you much here, am I?
Well, I do know that there are, however, so many resources out there, so I would imagine that finding help would be relatively easy?
Oh, baby doll, been there! Still there sometimes.
ReplyDeleteIt's hard to say a lot b/c right now, Scott and I have our own bank accounts. So we are responsible for our own budgets.
I guess I would say some good advice we've gotten is: 1) keep a household account and make sure it always has one mortgage payment extra in it. 2) Have your own accounts or one separate account for other expenses and 3) Pick a day of the week to balance that account.
I have my own account and I check it twice a week. I'm VERY overly paranoid about it b/c I've overdrafted a few times.
Savings is a different beast. My husband is awesome at savings. He's been forcing us to put our tax return into savings, as long as any other "found" money like money we got from our refinance and any other refunds we get throughout the year.
One of the Flylady.net partner sites has a book called The Good Book (GOOD stands for "Get Out of Debt"). It has gotten rave reviews from Flylady fans. Also, I think Suze Orman is excellent. She's tough, but has great advice for everyone.
ReplyDeleteHere's the Good Book link: http://www.innerkiddies.com/shop/?page_id=4&category=16