Ye Olde Financial Picture & LBYM Resolutions

"Ye Olde" because it's getting pretty old--hell, it's GOTTEN pretty old, and á la Dave Ramsey, we're sick and tired of being sick and tired! So we are getting serious about the whole family financial picture, and I do mean serious. Apart from the Grocery Game, DH has gotten me a coupon organizer (because the GG is great, but I need something for the checkout and internet coupons) and we now have the Envelope System to work with in our house. Every cent is allocated ahead of time, and it's Cash Only for Groceries and Household Items and Entertainment.

I've gotten some comments from folks that have known us a while, and they are surprised that we have a whole Debt Snowball thing going on. We got a great cost-of-living raise for DH when we moved here, but we also said a not-so-fond adieu to my $40,000+ annual income, which DH's cost of living raise didn't quite cover. So, we really are living on less now than we were then: albeit a small margin less, but it's still less. And, unfortunately, just because I decided to take a career hiatus for a while doesn't mean the U.S. Gubment is willing to take a hiatus on my student loan payments from graduate school. All things considered, the cash flow situation in our house can be characterized as not so good, and apart from paying off Ye Olde (and Newe) Debts, we need to improve the cash flow situation around here.

Thus, we have the following goals for 2008:

1. Pay off our car. We bought our van, the faithful Chariot, in 2004 (before kids, believe it or not--intended as a harp toting vehicle!) and put zero money down. Yes, we know now how foolish that was. However, we are rectifying it by attempting to pay it off earlier than the original payoff date of May 2009. Already DH's Christmas bonus whacked six months' of payments off the principal, and any extra tax refund will be thrown at the principal as well. I've never been so keen to do our taxes!
2. Pay for our family visit to DH's family in Ireland in cash. It's been over 2 years since we've been over, and that's a long time for DH to not see any family members other than his parents. Don't get me started on the reciprocity thingy about his sisters et al. Suffice it to say, we need to go visit this summer, and we want to pay for it all in cash. We have set a set amount from the tax refund to cover this, but anything above that # has to be saved out of the ordinary budget...which, given the cash flow situation mentioned above, will be quite the challenge. And, I need not add that finding 4 fares roundtrip to Ireland for $500 or less per ticket will be its own special travel challenge de anne.
3. Do a better job of tracking those irregular but regular expenses. Somehow I always forget that our AAA memberships have to be renewed, or that my ACS membership needs to be renewed, and oh yeah the earthquake insurance is due sometime in midsummer, etc. It's kind of hard to sustain those shocks to the budget when cash flow is tight, so until it improves I'd better get a better system going for saving for and predicting those expenses.
4. Say no more often to those little treats (Starbucks, anyone?) and dining out moments when we are being a little bit lazy and a little bit laissez faire about Ye Olde Financial Picture. Frankly, we just can't afford the level at which our Dining spending sits currently in Quicken, so we need to say no to ourselves and each other more often.
5. Actually plan and budget for regular dates. Yes, babysitting is expensive...but not if we take advantage of the perfectly serious offers for free babysitting from friends and neighbors. DH & I have enjoyed a few occurrences recently of kid-free dinners (early bedtimes), and you know, I kind of like spending time alone with the wonderful guy I married! So I think I'd like to make that happen on a more regular basis, KWIM?

Well, there you have it--our modest financial goals for 2008. I'd love to say we're going to pay off the HELOC! or pay off the remaining credit card! but I know the numbers and well, even with my new gig teaching at the local community college, that ain't going to happen this year. Hopefully we will bring the full force of the snowball to bear on the above, but it probably won't be until later in the year, and it won't be paid off this year. But you know, if I can find a way to make those things happen sooner, I will. We will see exactly how much I can work this LBYM thing while still, you know, mothering my children and being a good wife and keeping the house from falling down or becoming a cesspool. Wish me luck!

And, if you're interested in reading about the exploits of others undertaking a new budget challenge this year, check out Tamarian's blog, http://denofchaos.blogspot.com/ I've got it linked on my favorite blogs, and she's doing her own LBYM challenge with a motley assortment of fellow bloggers. Check in often for encouragement with your own budget challenges. Good luck to you!