~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

~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

~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 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