Managing money to make life easier

[Clues_Of_Blue]

One of the big things that causes stress and sure kicks you about when you already have mental illness to play with is money. Whether you're in debt, just scraping by, or feel like you're working to much to maintain a lifestyle. Here is a place to talk about how to make your dollars go a bit further and take off some financial pressure.

I'll start with some basic pointers:

- Plan a little with food. Make work lunches, decide on meals for the week and stick to your shopping list. If you shop a bit later you're also likely to get a lot of fresh produce at a discount.

- Check regularly (every six months or so) on your utilities. Often there is a better plan out there to switch to. As customers, loyalty to a company usually just gets us a quietly growing bill instead of discounts or rewards. Vote with your feet.

- Same with your home loan, you can refinance to one with a better interest rate, just watch out for exit fees (and LMI if you still owe more than 80% of the house value)

If you have any tips or questions, feel free to share or ask.

[ecomama]

I did it again just now.
Paid an extra $390 into the mortgage. That's Number 2.

I'm feeling pretty angry and frustrated atm.
Maybe I need more whipping myself into line with financial management, IDK.

If I can do this EVERY Pay then my mortgage will be paid down an extra c$8000 this year.
Adding the extra $140 per month
= extra c$9,500 this year.

I'd really like to be paying UNDER $500 / month interest by the end of the year!
To think, only a couple of years ago - upon refinancing, I was paying $1200 / month interest omg.

I'd be pretty thrilled with that.
My mortgage payments would then be eating away at huge chunks on the capital.

That's the intention anyway! LOL!

Let's see if it works.

EMxxxx

[Clues_Of_Blue]

Hey EM,

Yep, I recall you mentioning those things. (On a side note, as I'm typing, I'm also dealing with a dear little bird trying to make off with my muffin - his own treats are suddenly less interesting if Mum has a muffin.)

Great work getting that extra $390 on the mortgage (and sensible making sure the other stuff was covered, first).

Sorry you're feeling crap about son's news, and having headaches and such. No, decision making when you're not feeling well isn't a good idea, leave it for when you're in a better headspace whenever possible.

When you say "for a rainy day", do you mean just a mini-emergency buffer, or the big emergency buffer? I have both. The little one can be whatever, ideally at least $1K to deal with surprise bills, car problems, that sort of thing. As for the serious savings to get you out of a hole if you lose your job or house or something huge, the advice I have seen most often in all my financial research - and I agree with and where possible maintain this (still working my way back to it post financial mess of leaving ex) - is to aim for a base savings of three months' wages/salary. In an emergency the idea is it will take you out of that period of panic, give you a bit of time to collect yourself and point in the right direction, get a new job or whatever is needed. So yeah, that's my advice.

Anything over and above those savings, honestly I agree with you (and Barefoot) about putting it on the mortgage. The other option is investment, or split it between the two. You can't go wrong with reducing debt on your mortgage, but nor is it a bad idea to have an income generating asset. I know you are savvy about super and growing that, so you're already investing. I also know you're working hard on getting the mortgage down, so you're already on the right track there, too. I think it's just a matter of picking how much you want to put in each direction going forward.

You said "I'm feeling pretty angry and frustrated atm.". I'm a little hazy on the why. I think maybe you've made less over-and-above payments than you wanted to? Maybe revisit your budget and savings goals to see if that's feasible. Give yourself some room to live as well as save and reduce debt, though. If it's too tight a squeeze, maybe factor in doing it every second pay as a given, and it's a bonus if you can do it in between? I've had to adjust that way periodically to account for living life in the meantime. That's important, too.

Blue.

[ecomama]

Hey Blue, thankyou for all that information, encouragement and advice!

Also the reinforcement too, thankyou.

The anger and frustration had nothing to do with finances. But when I'm angry and frustrated I seem to have this weird go to feedback loop that leads to self-chastisement and then like I have to pay penance in some way.

Right in the flood of anger and frustration I find ways to punish myself.
"Going without" is SO ingrained, that I have to MAKE myself buy anything, even food for myself.

I know it's weird but I'm aware of it and just do weird things so I have to "go without".
Yes I ate last night lol.
I put the next $390 in, so that makes 2 in a week. (It was a reaction to my anger = needing to go without).

I know exactly where it comes from. 20+y of ingrained control from demon et al.

ANYWAY, so interesting to have 3 month's income as BIG savings.
I would really like to ask my Bank if the surprise "Redraw Facility" they put on (after telling me they would never do that - not that I wanted one anyway) is ACTUALLY a redraw facility or just telling me how far ahead I am?
A qn to ask on my leave lol.

If it IS, then I'd like to save there by adding to my mortgage.
The rainy day expression was just that kind of stuff you mentioned.

If it's NOT then I'd like to hide it away somewhere lol out of sight lol.
But it's not worth doing that, interest wise.

I didn't actually go without anything. In fact spent a whole heap in Spotlight with their 50% off Sale for VIP Members after work today. I could've spent a WHOLE LOT MORE I tell you!
In fact I'm going back soon to get the KS Quilt Cover son leaving school wants (I need another name for him lol). Policeman son is too hard to write lol. That's what he's aiming to become in about 6-7 years.
On my next leave, we're swapping beds. I'm giving him my KS Bed and I'm taking my QS one back. I'll probably want a new mattress and new electric blanket. He won't want my girly bedding lol. Plus I'm giving him all the matching bedroom suite - be gone lol.

The specials were amazing!
I got $45 towels for $5 each, gorgeous ones too. I cut up my tatty old ones in the minimising efforts.
Got alot of stuff, 4 trips to the car to empty it lol.

3 months hey... need to work out that amount.

Thanks Blue!

EMxxxx

[ecomama]

Crikeys Blue,

After going through a pretty rough week, I had to do alot of things to keep me grounded AND hope and Pray the end of the tumbling would be over soon ie a light at the end of the tunnel.

Part of it was "releasing" the need to control the outcome.
I did this partially last night.
Completely today, well almost lol!!

Anyhow, I got home, car FULL of stuff.
When I emptied the car completely (another minimalism thing I've been doing as well), I went to the letterbox, no triggers thankyou lol, and got THE MOST gobsmacking notice.

I'm sitting down and have it here in front of me and still think I'm dreaming. I do.
It says one DUPLEX sold for over $1.5 million, just over "there" where I'm pointing.
Like right near US!

LOL! I went to the car and chuckled out loud. yeah demon - diddums.
I'm terrible Muriel.

Ahhh. 🥰

Our block is so much bigger.
Almost same water views.
Certainly a much bigger home. Not that everyone WANTS a home and garden this size.

wow, so freaking unbelievable.
Now my mortgage is not 50% of the Family Law Valuation, as it was only a few short years ago.
It's around 17%, I just did the calculations on the sale price that duplex got with my current mortgage.

Hopefully with my pay rises, 2 in the same time since FL is over.
And the increases in property values here.
I really hope the Banks will simply approve the loan for the cabin (IF I need it ofcourse).

The way things are going with not getting work done very fast here.
I think the way to go might be to employ a Builder once the plans are finished.
Or take them to a Granny Flat building firm and ask them to quote on building it.

I feel the grumblings of things afoot now.

I dare not get too excited because I'm not seeing the Banks till the end of the year.
That's better timing.

Great news for us, so welcomed!
Love EM

[ecomama]

I'm on a roll.

Paid my credit card out in full yesterday.

This 'discipline' thing relating to money, in reaction to difficult situations is a thang!

I've worked out, it's the need to control.
All spouting from childhood and adulthood stuff where I had little to zero control.

Now I do.
So when things get tough, my go to is that I pull in all the things I CAN control and CONTROL.

lol.

Off to do some housework and get ready for a date with BF!

Love EM

[Clues_Of_Blue]

Hey EM,

I hear ya. Glad you have had some success with releasing control of things you can't control. That shift can bring a lot of relief.

A good minimising habit maintained and good news, you say? Noice. So it sounds like homes in your area are really skyrocketing in price. That's a boon for you (and not for diddums, haha). Got the pompoms out again to cheer you on for that cabin loan (if needed).

The grumblings of things afoot is good. No harm in getting some quotes to assess the feasability of getting a builder onto the cabin. You can't do everything yourself, especially if things are taking longer than you need them to.

I hear you about not getting too excited before things are happening, but I think some cautious optimism is acceptable.

Great work on the credit card. I have mine paid ahead quite often (for any direct debits or pending transactions), it will show me an available balance that is bigger than my credit limit. That always amuses me.

You know, I really identify with everything you said about discipline and control during difficult times. I do it, too. Same reasons. Considering the benefits, I guess there isn't really a downside to it.

Hope the date goes well. Are you keeping it to the previously stated parameters, or has video calling become acceptable after your recent chats? No pressure to answer, just curious.

So, after more of their interminable dawdling, and now the stupid valuation is done with, the bank want another bank statement from my partner. And a "letter of employment" from me (asked for on Friday afternoon, before the long week-end) that requires signing by office staff, so I haven't been able to do a damn thing about it for days. Never mind that they already have a bunch of payslips and my last group certificate. Is that really not enough? AAAAAARGH! This bloody refinance is never going to be done with!

Blue.

[ecomama]

Oh gosh Blue

That Bank stuff is unbelievable truly.... it's like they're delaying and procrastinating to find pennies in the drawer to loan you or something.

What IS that?

Close to being unacceptable.
They'd better darned well have a great interest on their home loan!!!!

Grrrrrr.

Thankyou for the discipline reinforcement lol.
I think my reaction is more dysfunction than anything BUT you're right, it works lol.
Muddling thru.

Yeah I'm beyond gobsmacked at the property prices.
Atm ours is "worth" a solid 3x more than the FL Valuation less than 3y ago.
I'm guessing more by the comparative sales.
Yes diddums all right! 🤣😂

Sure will help with the "equity" part of applying for a home loan extension.
I guess I'm "in a hurry" to pay more into the mortgage so I can borrow more during refinancing... kind of thinking.

Anyway it's all yet to be seen.

Had a great boon today.
Had to phone up and pay out all "bits" of kids school fees so Mikhael (not Mitch lol) could sign out from school tomorrow.
I estimated $1500 owing, since this has all been haphazard for 7 years. Yes a Public High School lol.
I've paid spot stuff, applied for Hardship during the worst times and got up to 30% paid at times and 100% of quite a few school uniform pieces.

My instincts were spot on paying out my credit card lol!

When I phoned the school and said the names of all my kids to pay fees for, they said "Oh we've written off prodigal son's fees. You don't have to pay those."
😮
Wow.
IDK how they did this but the WHOLE remainder of the rest was only $345.
I expressed my gratitude. A lot!

So, not sure if I told you my applications for leniency for TWO $697 fines was approved???

I'd saved that money = $1400 + the school fees.
So that money was freed up to pay other debts and pay mortgage ahead.

Back to the drawing board so to speak.

Paying out all these debts is pretty important since I'll be facing some interesting times for 6-8 months soon because of the Tax stuff lol. Hopefully it's only 5 months!

We'll see.
YEP the dates are going well.
BF still not really willing to do the face time stuff lol.

Maybe he doesn't want me to see "our apartment" in Seattle after all OUR minimising here to the nth degree! LOL!

All good.
Love EM

[Clues_Of_Blue]

Hey EM,

It's bloody ridiculous and I'm more than a little fed up. That said, I've never experienced anything different with any bank. They all do it. The interest rate is almost a full % lower than I'm currently paying, so it is fairly significant with that sort of money.

Well, yes, it's kind of a dysfunction. But if you're anything like me (and I think you are), you know how to turn dysfunction to your advantage where it's possible. This is one of those times.

That's just nuts. I can't comprehend a price jump anything like that, it doesn't happen here - not in that sort of timeframe. A few decades might jump it by a fraction of that, maybe. I see your thinking about equity and the cabin loan. Honestly, if you don't end up needing a loan for the cabin, there's still no disadvantage to having more equity.

Wow, that's fantastic about the school fees. And the fines. Love that the money you held aside for that can go straight onto debts and mortgage.

You do have me curious about your tax ideas. In any case, like the equity thing, there's no downside to getting rid of debt. Hopefully the tax business goes smoothly and doesn't drag out.

Cool, glad about the dates. Still seems odd about the video calls; in the couple of months we were apart, my partner and I were doing them constantly. He'd keep me company while I cooked and things like that, so if I was quiet he could see what I was doing and just be present. It helped a lot. Ha, your man could set up a background picture for it, you wouldn't have to see the not-minimised apartment.

When I did eventually get my meds after the doctor's appointment, it was actually the first time I'd used my Health Care Card for it's main purpose. My asthma meds (preventer, reliever and a spare) cost a grand total of just under $19. Cost without the card, about $60. Huge difference. There was many a time I'd go without my preventer for a week or two because of the sheer cost of it. This is more manageable.

Blue.

[ecomama]

Hey Blue

That's absolutely fan fairy tastic news about saving that much money on your asthma meds now!!! AWE-SOME!

So happy you have that card.😁

I've not had the same experiences with Banks here at all.
Sure some palaver like getting all Bank statements and answering thousands of checklists.. doh.
Maybe there's more competition here? IDK.

Oh the "property value hike" is real BUT pertaining to our specific situation... ALL the stars aligned. I bought demon out like he had anything to do with financing it which he did NOT.
Anyhoo... Family Law Valuations are usually lower than actual Market Value (hence my determination to get the house).

So in as much as it's so obvious the market has sky rocketed... it began AFTER I settled the FL case.... which was a good 6 months AFTER it was FL Valued.
The very WEEK I settled, and demon had zero recourse once the paperwork was SIGNED by it, the house across the street (less bedrooms, less land etc) sold for $350K more than mine was VALUED at.

We're not technically in Sydney. No. But close enough to commute there.
This kind of property value hike has happened several times in Sydney.

It's just spread to here again now.

The Tax thang?
Pretty complicated to type lol. Sure I planned it for the past 5 years actually!
So the next 2-3 years it'll continue in the reconciliation phase.

We benefited SO MUCH from me managing finances this way.
It's the yearly tax structure itself that made this all possible for us.
IE I could work full time for a year from Jan - Dec BUT go part time the next.
This way the cross over benefits us.
When my income is reconciled... it averages out... but I got opportunities to pay STACKS of Legal debts off plus the debts I took on as well.

SO my part time months were far easier to manage.
It also goes to reason that Family Payments and Child Support is considered in this equation.

Blue wrote: "Love that the money you held aside for that can go straight onto debts and mortgage."
Lol SOME of it!
Sure probably most lol... paid $780 onto mortgage. Paid out credit card.
And then parties and restaurant dinners and my gardener's extra hours and house improvements and some pampering for self as well.

You're a ⭐!
Love EM

[Clues_Of_Blue]

Hey EM,

Thanks. I can't tell you how much of a difference it's making.

I assume the problem for me is my very low income. The banks accept some of what I say about my regular expenses, and about other things they decide for themselves what people spend (i.e. on food, personal grooming, etc.) and won't be budged from it, so if I spend X in a month on those things, they say "No, you spend Y, everyone spends Y, and we're calculating your budget on Y", and that becomes a problem. However, my credit score is far and away better than just about anyone else's and I'm sure they're going "Hang on, if she spends Y, how does she pay for things? She clearly pays for things. But surely she doesn't really spend X, like she says she does.". I don't doubt I cause them no small degree of consternation. Anyway, I'd like them to just get around to "Oh, she spends X", so I can get done with them!

Yeah, property value in Sydney and surrounds works rather differently to how it does in SA. It's all boringly stable here. That comes with its own advantages.

I think I have a vague idea of your tax stuff, at least so far as timing with FT vs PT work goes. Great that you can get your head around all that stuff.

Hey, gardening, parties and self-care in general are perfectly valid uses for some of that money. And you still have enough to do all the boring responsible stuff. Go you!

Blue.