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Wednesday, August 24, 2011

Putting your Financial House in Order Part ONE

I was asked to speak to the LDS Medford 1st ward Women's group last night. My topic was putting your financial house in order. I felt it was valuable enough information to share with you here.

PUTTING YOUR FINANCIAL HOUSE IN ORDER

For me this meant I had to know my INCOME and my OUTGO.  The easiest way for me to do this was to do a budget. So several years ago I did this.

First I wrote down all sources of income from me, my husband and our rental income. Then I wrote down our outgo. In this I included mortgages, tithing, utilities, credit cards, student loans, insurance (home, life and car). I also have sections for medical, food, gas, savings (joint savings, escrow account and boys college fund). I have sections for expenses for the rental house (water, garbage and sewer). Last, but not least I have a MISC fund.

I added up the income and I added up the outgo. Unfortunately the outgo was way more than the income so I needed to find a way to make them balance.

At first I concentrated on the income side, I flat out needed more. My husband could not go and get a job, he is disabled and on a fixed income. And there has been no cost of living raise for the last 3 years.

I looked at my income. I was already maxed out at the wage I was at and not due for a raise till next year. So I pick up all the extra hours and overtime hours that I can. That helps, but still not enough. So I went and got a second job. I was able to find something that is related to my main job, a great boss who is very flexible with my hours at my main job and who pays decent. The drawback to this job is that it is caregiving for the elderly and hospice patients. So if a patient on hospice dies, then unfortunately for me, there go my hours. 

I also do things online to make money, none of it will get me rich, but every penny counts. I do surveys, I do mystery/secret shopping, I work on Amazon’s M Turk doing small tasks and I have my blog. All of these things add up to a few dollars every month that I put either in my PayPal account or my Amazon account and I am saving for the holidays. 

At this point I feel like I have done everything I can to increase the income side. Tomorrow I will talk about how I trimmed the outgo side.