~Don't Overextend Your Raise!~

*photo credit-Ron Niebrugge*

A very common mistake...

Did you get a raise or are you expecting a raise for your household?
Do you have big plans for that money already?
Will you be playing catch-up due to living outside your current income?

I've found that raises (usually minimal) really don't help most people that much. It is almost as if people get a false sense of security and go overboard, but in little ways. Example: You typically spend $100 per month eating out. Now that you have a raise you don't think twice about eating out a couple more times per month. At the end of the month you have spent $200-$300, when you really only had $100 to spend still.
Or
Your hubby gets a $200 raise per month and decides he needs new truck. The new truck payment is $450. Technically, he is getting a $250 pay cut now that he has a payment instead of driving the car that is paid for. Ouch!
Or
You get a somewhat substantial raise and decide that you need to upgrade your home by doubling in size & payment. Most people forget to budget for the utilities and other expenses that come with a larger home. Being home poor is no fun! Trust me!

I've seen this mistake in almost everyone I know. No joke! I can say this because we have made the same mistakes too. Not proud, just honest.

It is really hard to get ahead when you don't budget every cent. I'm not saying to not enjoy the raise. Go out for a special meal, but then get back on track. Don't go out and get crazy. Plan out that raise to truly work for you and for your family. As always, give your first fruits to the One who gave it all.

Be blessed~
SHO

~Our Disney World Plan~

We decided back in August that we would take a trip rather than exchanging gifts this Christmas. We have all been excited for months about our trip to Disney World! I have been getting very creative with ways to save for this trip. My goal was to not use any of our savings money, but to 100% pay for this vacation with the extra money that I've been earning. I was inspired to do this by my friend, Christy, that I wrote about HERE. That was a CHALLENGE! Whew!

What I've learned through it all?
If you want something bad enough, write it down! I posted a Disney World Savings Fund sheet on my pantry door for us to look at everyday. I put down every dollar (even cent) that we save. On that same sheet I wrote the breakdown of exactly how much everything would cost. Of course, the food category was not exact. However, we had a very close idea of what it would cost.

This process did not seem like such a huge leap by writing it all down. It has been wonderful to see my daughter bring me pennies that she has found. She has loved contributing to the fund. That was my goal! I wanted her to feel like she was part of us getting there too. I believe that she will have a great appreciation for something that she knows that we worked together as a family for. Yes, I realize she is young. However, this is a great lesson at any age.

It is never too early to start teaching your children the value of money and teamwork...Two things that they will need great knowledge of the rest of their lives.

In this series I will be writing about ways that I saved the money for Disney World and how we saved money once we were there. Literally, we saved HUNDREDS by doing a few simple things!

Wednesday Blessings~
SHO

~2012 Financial Goals!~

Well, it's that time of the year to set those money goals. This is an exciting time for me as I challenge myself more each year. It is amazing what you can accomplish with a plan.

Now that you have had a week to come up with some goals...what are they? Here are a few of my 2012 financial goals:

*Save 25% of our income
*Tithe to our church (We've done this for over 10 years. I always like to include it.)
*Give to a ministry (more to come on that at a later date)
*Give $$ to a family in need
*Save $$ for a mission trip
*Save $$ for our island trip
*Save $$ for family camp
*Give supplies to a family in need
*Stay within budget in every category
*Use what I have on hand. This may not sound like a financial goal, but it will save me money to use up some supplies instead of replenishing.

Most importantly, my goal is to be thankful for what God has given me. I want to use our resources to the best of my ability. My goal is to be the best steward possible with GOD'S money.

Monday Blessings~
SHO

~January Spending FREEZE!~

Spending freeze in January!

Sorry, I meant to mention this to you all earlier this week. (No sugar or caffeine has made me NOT on my "A game" this week.) My household is on a "spending freeze" for the month of January.

What does "spending freeze" mean?
We don't spend any money on anything other than groceries & gas (aside from regular bills). This cuts out small purchases that add up, meaningless shopping, eating out, etc.

Why?
Starting a new year off by saving a chunk of money dramatically increases your ability to keep the momentum going throughout the year. I try to always make January one of my big savings months.

Is it too late to start?
Absolutely not! Start today!

Can't wait to hear how you all do. It is a new year and this is the time to make some changes in your financial forecast. You can do it!

Friday Blessings~
SHO

~2011 Savings Goals?!~

2011 Savings Goal?!

Well, I'm checking in and asking if you hit your savings goal for 2011? Did you budget, set goals and succeed? I pray that you did and that you feel beyond accomplished!

Did I hit my savings goal?
Yes and no. We had an unexpected event happen with my car which led to us purchasing a newer car. So, we paid cash for it! It was a feeling like we've never felt before. We have always paid cars off early, but never have we paid CASH for one. It was awesome! I got a big smooch in the office from the hunkiest boy in Texas ;)

Even though it made me a bit sick to see the money leave the account, I felt good about knowing that we had saved up for this event. We had just hoped it would be a little further down the road. Oh well. Life happens. Learning to roll with it.

Did you all have a good financial year? Did you pay some things off? Are you living debt free? Have you experienced financial freedom for the first time in 2011? I'd love to hear from you!

In His Grace~
SHO

~A Woman Who Inspires Me!~

Someone who inspires me...

I met someone that has truly inspired me. She asked that I not mention her name, so I will respect that. We started talking about saving money and finances one day and I was just AMAZED! Very few people knock my "financial socks" off, but she did! The more she spoke, the more I wanted to know. Finally, I said "can I blog about you?" Of course, I wrote everything down and then lost the tiny piece of paper. Then today it just appeared out of nowhere. So, here is part of her story and secrets to financial success!

She purchased a home when she was single. She put 20% down and took out a 30 year note. Shortly after, she married and then they paid it off in 6 years!!!

A few years later they decided to upgrade to a nicer and more expensive home. This home was more than double the price of their first home. They were down to only 1 income as she had become a stay-at-home mother of 2 at this point. They lost 1/2 of their income when she became a full-time mom. They got on a budget, she took on a few extra jobs bringing in a little money here and there. . They took out a 15 year note and paid it off in 5 years!!!

Are you inspired yet?

During this time they also paid cash for a pre-owned suburban. Can you imagine having 2 small children with no car payment and no house payment? To be completely financially independent??? Imagine just how amazing that would be!

How did they do it?
They put all of their extra money towards the house payment. They didn't over buy or overspend on anything. They paid cash for everything purchased.
The biggest secret...they TITHE! She said that God truly blessed their money and made it multiply.

What is next for them?
They are currently saving for retirement and 2 college educations for their children.

I'm so proud to know a woman of such financial integrity. I'm inspired! Are you?

Blessings~
SHO

~3 Principles We Live By~

Hello Sassy Savers!

Hope everyone is having a great Friday! Boy, has this been a crazy busy week. All of my freezer cooking meals paid off big time this week. I didn't spend more than 20 minutes on any meal and we ate at home. I've found that if I have something that I can whip up in around 20-30 minutes, we will eat at home. After all, it takes about that long to go get takeout. Plus, you have to spend your precious money on fuel. No fun! Anytime we eat at home my hunky hubs calls it a "prepaid meal". In our house those meals are wonderful! Especially, since we are saving for Disney World!!!


Part of the reason that I started this blog was to encourage people. I'm asked all the time how we live off a teacher's salary. People are beyond curious. My answer is that we don't just "live", but we live in the "overflow blessings". Honestly, we live better now than we did with 2 full-time salaries. Part of the reason is that I'm not constantly worrying about money. Now that we live on such a strict budget, I know where the money is going. It is amazing the peace that I have felt since living on a written budget (of course, sticking to it is key).


3 principles we live by:

1) We are good stewards with our money (started using coupons). Started to think and plan ahead before every purchase. We were amazed at what we can talk ourselves out of! (Example: BMW 3 series...yes, it is my dream car...yes, we test drove several of them...yes, we put in offers...THEN we came back to a normal state of mind and decided that we have other goals that come before us driving a pretty BMW. After all, it will be even prettier when we get it AFTER we pay CASH for our home!)

2) We live within a budget. A very detailed budget is key for us! I keep track of where every dollar goes each month on a spreadsheet. That has really kept us on track. We have a game plan every month to make sure that we stay focused and are able to hit our savings goal.

3) Most importantly we HONOR GOD with our TITHE. We believe that God blesses the 90% that we keep and multiplies it. We have seen it in our finances!
Another thing is giving to those in need. I encourage you to pray and see if God is leading you to help someone. I promise, it is the BEST feeling knowing that you are truly helping someone in need. You will be so rewarded.


When we started combining those 3 things we were amazed at how God truly blessed us.
I want to encourage you today that whatever your financial situation is, you can start making changes today. You can get out of debt. You can live in the "overflow blessings". You can leave your children a legacy of financial freedom! Get excited! Change can be a wonderful thing. Change is uncomfortable, but so is living with debt looming over your head. Look forward to the finish line and never lose sight of your goals!

Be Blessed~
SHO

How to save on oil changes!

Did you know that the service department in new car dealerships offer coupons & specials? We got a sheet of coupons in the mail for a $13.99 oil change from a local dealership. We have had work done at this particular dealership, so we thought we would give it a shot.
My husband called ahead for an appointment and to make sure the offer was legitimate. Sure enough it was! We got an oil change for $13.99! The lady who checked him out said that they often have coupons on their websites too. That saved us a lot of money today! Pretty awesome!

Happy Monday!
SHO

~Tuesday Tip...Check Your Receipt!~

There is a reason why I'm always saying "check your receipt"! I've had 3 problems at 3 different stores in the past couple weeks. If I hadn't noticed the problem, I would have wasted over $15! Two of the issues I caught while checking out and one of them once I got to my car. Remember, to always be kind to the cashier while pointing out a problem. It is normally the computer's fault and not the cashier anyway. If you are nice to them, they are usually nice to you :)
Mistakes happen, just make sure that you don't have to pay for them!

Tuesday Blessings~
SHO

~Life Without a Cell Phone or Facebook!~

My life without a cell phone or facebook account.

Often (every time someone realizes I don't have either) people will GASP and then ask "HOW DO YOU LIVE WITHOUT A CELL PHONE OR FACEBOOK account?!"

My answer is "BEAUTIFULLY"! I have a really great life that is not full of craziness or the overwhelming feeling of having to be in everyone's business 24/7. It is great! When someone tells me something face to face I have a genuine reaction since I have not read it before. I feel really important if I get an email or call before they post on facebook ;)

Life without a cell phone did a take a little adjusting to, but not too long. Honestly, cell phones are sort of a peeve of mine now. I get very annoyed at people who talk on them while driving, text while driving (my hubs was in a wreck recently due to a girl texting while driving...grrrrr) and the most annoying is when people talk on the phone when checking out. Let me just say that if you are using coupons, that is NOT the way to gain favor from a checker! Okay, enough about that!

My point is that you can live without a cell phone. It is such an easy thing to cut out of your budget. Most people pay $80+ per month for service. Imagine if you put that money into your debt snowball??? Or what if you saved $80 per month for 1 year and went on a vacation? You would have saved $960.00 in 12 months for a very small sacrifice. You can do it!

A quick note about why we are not involved with social networking sites...Simple...I don't have time and am not willing to make the time. Nothing against those who do, it is just not for us. I'm doing my best to limit all media in our lives. I'm so much more productive and less stressed when it is limited. I will also add that every person that I speak with about struggling with time to clip coupons has a facebook account. Most people don't even realize how much valuable time is spent (wasted) each day on social networking sites when they could be finding ways to better budget their time & money. I want encourage you to limit your time on those sites and use that time to better your financial future.

Anytime I think I want to add something into the budget, I think about all of the traveling that we like to do and how much that will impact our ability to continue going on trips and vacations each year. It just isn't worth it for us.

Now that I have SHOCKED all my Sassy Savers, I'm going to log off :)

Happy Tuesday!
SHO

~How to Save Money~Part 6

How to save money in 2011: Insurance & Prescriptions

Medical Insurance:
*We raised our medical deductible (kept same coverage) on our daughter and that lowered our monthly payment over $80!

Life Insurance:
*My hubs lost some weight and we were able to change his life insurance over to a "premium" category. Simply by losing 10 lbs, he is in a better category and will save us $90 annually!
*We went through a life insurance broker (some of you have asked).

Home & Auto Insurance:
*Check on your premiums annually to see if there is a better deal out there. We use a broker that represents multiple companies. It is nice to make only 1 call and get several quotes. He gives us the best 3 out of his search. By using a broker we have saved hundreds of dollars!

Medicines
*We switched all of our prescription meds over to the Kroger generic $4 list after our insurance deductible went sky high. This took me calling the pharmacy to see what generic would be comparable to what I was taking already (if it didn't have a generic). Then I called my Dr. office and explained that I wanted to switch and why. I had recently been into the Dr., so they didn't need me to come in. Even if I did have to have an office visit of $25-$35 co-pay, it would have been worth it. They were very nice and sent over the new prescription without any problems. This saves us hundreds annually!
*There were 2 antibiotics that were not available on the Kroger list and that cost us about $50 each. I just wanted to add that so you didn't get frustrated if everything you need is not on the list.

I hope this helps someone today. I have LOVED hearing back from some of you on how much this series is helping and that you are learning something new. That blesses me!

Happy Monday Sassy Savers!
SHO

~How to Save Money~Part 5~

How to save money in 2011: Part 5

Today I'm writing about taxes. Such a dirty little word to so many people. It is not my favorite word as we just wrote 2 checks for our property taxes. Here in Texas, property taxes are a small fortune!
Moving on...property taxes are not the point today. :)

Many people ask if I do my own taxes. The answer is that I can and I have, but I don't. It is worth the price to send it to an accountant. He always knows all of the new laws (which change EVERY year) and has always gotten us more back than if I would have done them. His fee pays for itself with the return.

Tax time tips:
Keep your receipts! If you purchase ANYTHING medical related, always keep your receipts. Keep your doctor visit receipts, pharmacy receipts, etc. This will be a huge help at tax time!

Keep up with everything! I keep a 3 ring binder with tabs and separate folders to house the receipts throughout the year. That way I can just go back and tally each category up. Receipts can easily get out of hand if you don't have a system in place!

Add it up! So many people assume they don't have enough to itemize. However, they don't take the time to do the leg work. Honestly, I spend HOURS just getting our stuff ready for the tax guy. If I don't produce the numbers (and proof), then he has no idea that we spent $1000k on dr. visits or $893 on pharmacy items, etc. Don't forget to include if you pay out-of-pocket for health insurance. For us, this is a HUGE expense. It made me sick when I read the actual number for 2010. I'm now in the process of trying to find new insurance again. More on that to come!

Adjust Tax With Holdings
*We changed my husband's with holdings so that we would get more money each month and not a large income tax refund. Why would we want to give the Federal Government an interest free loan when we could be accumulating interest? Put that extra money directly into savings. So many people play around with their income tax money as if it were "FREE MONEY". It is NOT free money, you earned it and it should be respected just as the other money should. This is a great time to give your savings a little boost!

Hope this helps as tax time is here! At the very least, you can be ready and organized for 2011. One last thing, tithing is a big incentive at tax time! We have always tithed and have always been able to itemize our taxes. Plus we've always gotten a tax return. I want to be very clear here...We don't tithe specifically for tax purposes. We tithe because we want to honor God and put him first in our lives and our finances. We also want 100% of our money to be blessed by God and to be obeying His word. I'm just simply stating that it is also a tax incentive. Truly, you can't out give God.


Happy Valentine's Day!
SHO

~How to Save Money~Part 3~

Hair
*Confession-I do get my hair professionally done. It is worth it to me. Until my husband got out of school (7 years ago), I was coloring (highlighting) my own hair. When I needed it cut, I went to the mall and got a $12 haircut and never had a bad experience.
*My tip here would be to get as close to your natural hair color as possible so that you don't have a great deal of upkeep. I only get my hair done every 12 weeks.
*I cut my husband's hair each month which saves us $180-$200 annually (that is for a cheap haircut even!)

Do It Yourself!
*If you get manicure's & pedicures on a regular basis, cut them out. Unless I have a gift certificate, I do it myself and save lots of money!

Salon/Spa Packages:
Call ahead to see if a salon is offering any package deals. Often (around holidays) you can get some really great deals. Plus, they can be used anytime throughout the year! My husband usually gets me spa packages as gifts (they are my fav). He has learned to call ahead and see what deals are being offered. I was not impressed with the mani/pedi that was part of the package last time, so my husband spoke with the owner to see if she could not include that service with the new package deal and just deduct it from the price. Sure enough, she was glad to offer the other 2 services at the special package price and take off the mani/pedi. Don't be afraid to ask.

Bundle Package Deal:
Some people offer HUGE discounts if you purchase a package of 3 or 5 in advance. I bought a package of 5 massages and saved $75 for buying them all at once, instead of individually. Most massage therapist offer these types of deals. Again, don't be afraid to ask. Often times these deals are not advertised.

Ask about a loyalty card/program:
Some people do these, some don't. Be sure ask either way! Some people offer a punch card that when you complete so many services, you get the next one FREE!

Swap Services:
If you do something or make something to sell, try to swap services for salon services. Believe it or not, this happens often! I have swapped merchandise that I made for haircuts. A friend of mine swapped out a photography session for a cut & color. Maybe you could offer childcare in exchange for a service, swap cleaning a house, running errands, etc. Try to think of something that would be a good value for both of you. Think outside the box and try to find new ways to save money!

Hope you all are enjoying this series!

Wednesday Blessings~
SHO

~How to Save Money~Part 1~

How to Save Money in 2011: Part 1
Everyone gets excited about saving money, but then they realize that change MUST take place or the same outcome will happen. Yes, it takes determination and a plan. After all, I've never heard of anyone saying "I accidentally saved $100k". Sort of along the lines of never hearing a husband complaining about his wife saving him tons of money by using coupons! It just doesn't happen! :)

Today I'm listing just a few things that I did to insure we were able to hit our 2010 savings goal.

Steps to hit your savings goal in 2011:

Spend Less
*I realize this is not breaking news. However, if you simply spent $25 less per week at the grocery store you could save $100-$125 per month! You can easily do this by having a list and sticking to it. Try to go to the store and ONLY purchase what is on the list.
This would be a $1200-$1500 savings annually!

Budget
*Set a budget! This MUST be accurate. Take time to have a budget meeting with your spouse and discuss all purchases. I know this doesn't sound very fun and sometimes it isn't! However, being on the same page financially is one of the best ways to bless your marriage. Even though my hubs completely trusts me with our money, I still let him know about all purchases or check with him if a purchase is more than the norm. Anytime anything is needed outside of our budget, I ALWAYS speak with him and make sure we are in agreement of how we want to spend our money. To me this is more of a RESPECT thing than a budget concern.
*Stick to the budget! A budget only works if you stick to it.
*Document EVERYTHING you spend (even the little items...they add up!) Be sure to keep your receipts and keep up with your budget. If you wait until the end of the month to document things, you've probably already gone over budget and didn't even realize it!
*Budget down to $0.00 each month. This means that every dollar and every dime is accounted for. Any money left over does NOT get spent, rather it goes into SAVINGS!
*Keep the lines of communication open with your spouse. There may be mistakes, but talk about them and try to figure out a plan to avoid the same mistake again.

Don't Go There!
*If you have issues with spending money and buying things you don't need every time you enter the mall, Target, TJMax, etc...DON'T GO THERE!
This is a 100% effective way of not overspending :) So many people I talk with say they can't walk out of a certain store without spending $20-$50. However, if they never enter the store, it can be done!

Hope this helped someone today! I promise, you can do it! You can save money (even if you never have before). Many more parts to the "How to Save Money" series coming soon!

Tuesday Blessings~
SHO

~How to Save Money Series Coming!~

Starting next week I'm going to be doing a series on "How to save money". During the series I will detail the steps that I took to save 35% of our income in 2010. I'm super excited to also share with you a guest post on how she has saved big and is continuing to save big in 2011. I love to read and learn how people go about changing things up and saving money. I'm always inspired by other's success!
So, get excited and stay tuned!

Have a blessed weekend Sassy Savers!

SHO