Wednesday, May 6, 2009

Financial Structure

I've found several structures quite valuable for my healing journey. My friend noted last night that I have made a cosmic shift from planning to struggle back to work in early March to allowing myself this rich healing time and planning to return to work at the end of the summer.

Figuring out how much money we were actually spending is one important structure. Without knowing our outflow, I was alternating between feeling fearful about spending and reckless about spending. Oh I can't spend anything because I'm not working or What the hell I may die soon so I'll live it up. I don't think I'm alone as a cancer patient in spending a bit wildly at the beginning of my illness. I bought a fancy blender, Blendtec that I have never regretted for one minute. I used it for green smoothies that helped me get through my treatment. However I also bought some scarves, some "fun" wigs, and a book and DVD about looking good during treatment that were useful in mentally getting me ready for hair loss, but that I didn't really use. I bought quite a bit of make-up also which is not surprising for a Leo moon girl. Of course as treatment progressed, I was too sick to care about how I looked and wore the same two hats all the time except when they were in the wash. I wore a black cotton comfort cap with a lovely brown chunky hand-knit hat by my daughter-in-law. This was winter in Maine after all. The fun wigs totally grossed out my family right after I buzzed my hair really short and I never looked at them again. I also bought some green tea and seaweed supplements that I never used and cost $500. I knew I wouldn't be able to take them, but I let myself be talked into them. I spent a lot on supplements and complementary treatments during my illness that I do not regret one bit. I used accupuncture, Jin Shin Jyutsu, and homeopathy extensively. I also had a lot support from Deb Soule at Avena Botanicals.

By January we started tracking our expenses with a neat spreadsheet that Dave made up. We would spend a morning entering everything at the end of the month. Then for February, Mrs. Micah announced the track all your expenses for the month challenge. I began to check it out and found out that a number of people track their expenses e very day. Wow, I thought. I could do that and then it would save the 3 hours at the end of the month. So I did that and liked knowing where were at and also the improved accuracy improved since our memories are better for a day or two instead of a whole month. Mrs. Micah reviewed various programs for tracking expenses and came out with her favorite being YNAB. YNAB stands for you need a budget.

On March 1 after determining that I did not win the giveaway copy, I purchased YNAB for 49.95. I downloaded it and was up and running in an afternoon. I'm starting into my third month now and still feel it was $50 well spent. We spent about a half hour in financial conference for the month of May deciding on budget amounts ("giving each dollar a job" in YNAB parlance). We reviewed how much we spent in April compared to how much we planned to spend. After I post expenses for a day or two, I check to see if we are on track in our most variable items, groceries, entertainment, and restaurants. It's really easy to click back and forth between the register and budget screens. In addition, each time I post I make sure that we are reconciled with the bank. That is a huge step in the right direction. It is also very easy to plan for those large semiannual or annual events such as real estate tax and home and car insurance.

YNAB has given me the information I need to figure out that I do have some breathing room. I've been saying that I want to work less, but can we get by on less? The answer is: yes we can! How about you? Do you have a favorite financial system that works for you? Are you longing to have more control and a better understanding? Do you just let go and let God? My second structure piece, about healthy eating, is fodder for another post.

2 comments:

  1. Kristina - I've used Quicken for over a decade and also write my cash expenses on a biz card i carry in my wallet so I can track all of that. Read Your Money or Your Life by Joe DOmingez & Vicki Robin - great book on the power of frugality and tracking is a huge piece of that.

    Diania Gem of the Ocean

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  2. You've been a great role model for me in managing your money. I love the way tracking makes you spend less just because you have to write it down. I also used Quicken for many years, but for me right now as I strive to modify my spending toward a goal, I love the budget orientation of YNAB.

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