Posts tagged ‘budget’
July 10, 2010
I’ve been obsessing about all things financial lately, and I thought I’d pass on some of the tips I’ve read about or learned from friends and relatives. A lot of it (I’m told) is just common-sense. Sadly, this doesn’t seem to be a quality that comes naturally to me.
1. Cash is key. Unless you’re an advanced practitioner of financial management, or otherwise incredibly good with managing your money, paying for things with cash is critical. A number of people have suggested taking out $X for the week’s groceries and keeping it in an envelope. Take the envelope (and your grocery list) with you when you shop. When the envelope is empty, that’s it for the week.
I’ve been trying this and it’s true – for whatever psychological reason, it’s way harder to let go of dollar bills than it is to hand over your bank card.
What is reasonable to budget? Depends on your tastes – I’ve heard everything from $50/week per adult to $260/week for a family of 6 and on up from there. I’m still trying to figure this one out. What do you think?
2. Save your 10% first. If you’ve read The Wealthy Barber, or most other financial planning books, they suggest saving 10% (of gross or net, however you operate) off the top, before you ever see your money and directing it to savings. If you’re Canadian, this means funneling it towards your RSP; if you’re American, an IRA, 401K or equivalent. If you’re self-employed (like us), plan on saving even more, because the words pension plan are just a mirage on the horizon. This money is the starting point for your long-term financial health. If you actually want to be wealthy, you need to save more. Sad but true.
3. Pay your mortgage off fast. This means bi-weekly payments, which will save you a schwack of interest and significantly shorten your amortization period. Increase your payments to whatever you can comfortably afford – even a little can make a long-term difference. For example, by using a mortgage calculator, I figured out that bumping up our bi-weekly payments by $19 shortens our amortization period by 1 year. Pay down the principal whenever you can – with your tax return, inheritance, etc. If you’re comfortable with fluctuating interest rates, a variable-rate mortgage is a good bet, according to the spreadsheet wizardry of Mr. Naki.
4. Watch your Latte factor. This is the catchphrase of David Bach, who looks like an elf, but has some good basic financial advice to offer. He uses the phrase to refer to all of those moments when money slips through your fingers – the Starbuck$ run in the morning, the mid-afternoon muffin, the lunch at a food court, the magazine you pick up at the grocery checkout (my personal weakness). All of these $2-$10 expenditures add up significantly.
5. Online savings are to be had. The Internet (what did people do before this?) is a great source of info. I’ve found flyers, coupons, and online deals for family activities here:
6. Show me the money. By this, I mean get rid of the crap you have cluttering up your home (that you never use, that you’ve always hated, that you don’t need, doesn’t fit or doesn’t look good) and sell it. In the last week, I’ve offloaded a fridge, a dishwasher, a boxspring, books, and a toddler bike seat on Craigslist. All of this hard-earned cash is going towards #7 (see below).
7. Get off your ass. Driving a car around is super-convenient, but costs a lot of dough. We used to be so environmentally friendly before we got one! Not only do you save a car payment and the environmental cost of burning fossil fuels, but you get fresh air and exercise if you get off your butt and walk or bike or use public transit to get where you need to go. If you have situations where you really need a car, there are some great alternatives (we use the car co-op) to actual ownership. Having said this, I’m not giving up our car. Three kids was my breaking point. But I am trying to cut back, so my Craigslist earnings are going towards a new bike and tagalong for the smallest person.
There are tons of other ideas out there – what do you use that works for you?
November 7, 2009
The plywood tiles have been laid on the second floor and I am really pleased with how it turned out!
I saw the idea on a blog and it took some figuring to work out exactly how we were going to stick it down. The wood place recommended using baltic birch instead of shop birch – both for aesthetics and because the higher quality of the plywood would make the tiles more consistent in height. They had a great deal on 5′x5′ sheets, so we decided to just cut each piece in 9 square tiles of 19 7/8″ (no waste).
I emailed Michael Huber who was the architect on the blog project and he very kindly sent me some pictures of his own plywood floor. For his use (large tiles), they put a continuous 1/8″ edge around each tile and used 1/8″ strips of masonite to splinth it together, ending up with a floating floor.
We have a lot of smaller tiles and we debated back and forth on what to do. In the end, we went with glue and tiny finish nails in each corner of the tile. There has been much cursing and sanding of edges because the tile cuts were not perfectly square, and there is also some variation in tile height. Given the thin veneer on the plywood, there isn’t much room for sanding, but I think they’ve done a great job of it.
Cracks are being filled with a mix of polyurethane and sawdust from the cuts. The cracks aren’t filled in the picture below, but you get an idea of the after across a room.
In the closet, they cut around the door tracks that are sunk into the floor. The poly warms up the colour of the birch just a bit – I love it.
Now just another 4 coats of polyurethane to go…