Archive for category 2009 Goals

Confessions of a Former Mall Rat

Note: JSB is taking it easy today, so guest blogger Mrs. JSB is adding her two cents.

My closet used to get updated on a monthly basis. In college, it was a new sweater here, a pair of jeans there. In the professional world, I acquired a basic work wardrobe and built on it, adding pieces according to the season. At some point, my style shifted — less conservative, more chic — so my closet shifted as well. I lost 10 pounds on the job and had to buy new pants. I kept up with the latest fashion trends and delighted in finding $225 Rock&Republic jeans on sale for $20 at my local boutique.

Those days are over. Now that JSB and I are saving for a house, I’ve become what JSB calls “frugal.” I talk myself out of purchases that probably seem reasonable to normal people. I look for sales, clearances, discounts. I’ve always been a bargain hunter (hello $130 JCrew fittedĀ  wool blazer for $30), but these days its hard for me to buy clothing that’s not on sale. $79 for a blouse? I don’t think so. Now if it was $39…

I’ve become neurotic about it and I accept this about myself. The thing is, just when I’m about to lay down the cash for that $45, white, 3/4-length cable knit sweater from The Gap, I think to myself — I already have a sweater like this at home. Do I need the added clutter? Will I ever wear my old sweater if I buy this new sweater? So I put it back on the shelf and walk away.

Of course, I’m not so crazy that I don’t buy anything that’s not a necessity. Yesterday I indulged and bought a scarf from Urban Outfitters that I first spotted two months ago. I figured that if I’m still thinking about it months later, it’s probably a piece of clothing that I’ll wear for years.

I’m learning to be make use of the wardrobe I already have. All of those perfectly fine tops and skirts and dress shirts that are a couple of seasons old. The fun part? DiscoveringĀ  never-before-worn clothes long forgotten, buried at the bottom of my closet. Maybe I need a smaller closet.

Mistakes Made – Lessons Learned

I was over at Consumerism Commentary reading some of the new posts, and I saw a post by Sasha titled, “5 Stupid Financial Mistakes I Made in 2007: Underutilizing Financial and Tax Advisors.” At the end of the post, she talks about not enlisting the help of a tax accountant to look over her taxes – rather she did them herself. I can honestly say that I’ve made that same mistake a few years in a row. I thought that I knew all there was to know. Boy, was I wrong – I missed out on a lot of deductions and always ended up paying in. I decided to change things up this year, so I finally sat down with a CPA and we went over my situation. He opened my eyes to many deductions I could have taken in years past. I should have seen him earlier – I would’ve saved money and been out of debt sooner. Hind sight is always 20/20…

Lesson learned: Sometimes it helps to enlist the help of a professional.

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Getting All My Dollars In A Row

I had some extra time today, so I sat down and put together a budget. Never before had I done this. I guess I didn’t see the point in it. As long as my bills were paid on time, I was happy. Entering 2008 I knew that things needed to change.

The tools I used to assemble my budget were Quicken and Excel. I’m pretty proficient with Excel, but I chose to use the monthly budget template put together by Joseph Sangl. This template is very easy to use – it even gives you the percentage you spend on certain categories.

Putting together the budget opened my eyes to a few things. One of them is that my wife and I have a bunch more money left over at the end of the month than I had previously thought. Now we know how much money we can set aside for savings each week and how much we can increase our 401k contributions. I wish I would have taken an active role in my finances earlier. Ah well, I can’t change the past but I can stick to my new plan and start saving now.

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Financial Goals for 2008

I’m still pretty excited that I paid off all my credit card debt in 2007. The final payment was made on the final day of the year, so the excitement is still fresh. This puts me in a great position for 2008 and makes outlining a few goals that much easier.

Here are my financial goals for 2008 -

  1. Stay debt free
  2. Build up a small emergency fund of at least $1000
  3. Increase retirement savings
  4. Build up savings for a house

Because I got off to such a great start, these goals should be pretty manageable. That’s it for me right now, feel free to share your goals or resolutions for 2008.