Making Ends Meet

4 Comments

The Duke and I have begun planning and booking for an overseas trip in August 2014.  It has been a considered financial decision for which we have budgeted.  This is in addition to our day-to-day household budget, debt repayments (mortgage and personal loan) and savings (superannuation).

On the face of it, everything looks pretty rosy financially at the moment which is in stark contrast to some other stages of our lives.  But everything could change in a blink if one or both of us were to be made redundant from our jobs.  We do not really expect that to happen but nothing is 100% certain.  We just have to make the best of what we have at the moment.

making ends meet

As I mentioned earlier, there have been times when making ends meet has seemed almost impossible.  Unfortunately, there are many people in this situation.  I read their stories every day in newspapers, online and in magazines. I see it being played out in cities and small communities all over the world.  Sometimes it can be a problem of long-standing (spanning generations) or may be a small blip on the radar due to a temporary change in circumstance.

Whatever the reason, there is a problem when expenses exceed income.

I deliberately left that line by itself because that is the crux of the matter.  Read it again.  When expenses exceed income.  It does not matter what way you dress it up, if you spend more than you earn you will have a problem.  One day the credit card  will reach its limit, you will not be able to get more credit and the house of cards will come tumbling down.

Enough of  the problem.  We are looking for solutions.  There is no magic bullet and this is going to be hard work.  I plan to write a series of posts over the coming days to focus on each of the following points in more detail.  If you have personal experience, suggestions or comments please leave them here or you can email me directly at the email address in the ‘About Me’ tab at the top of the page.

1  Be honest

2  Create a list of expenses

3  Sort essentials from non-essentials

4  Make a plan

5  Accommodation

6  Food

7  Utilities

There will be other topics and the structure may change as the comments unfold.  However, the purpose of this will remain.  It is designed to share collective wisdom from all sources in order to help and support each other.

I look forward to hearing your stories and tips, no matter how small or insignificant they may seem.  What are the little things you do every day that save you money?  Remember, this may make the difference to someone else’s  life.

Until tomorrow.

4 thoughts on “Making Ends Meet

  1. I think the smartest thing I did when I started out on my own properly (start of 2011 I think it was), was to calculate all my bills greater than $50 (so not my $30 per month phone bill) and save $200 per week to cover them. In reality, I had WAY more in the ‘bills’ account than I usually needed, but it meant when I got a $1200 bill, I just calmly transferred money. I didn’t need to go without for a few weeks, I had it all ready to go. Even today, it’s hard to break the habit, even though my finances are structured differently (bills for investment property, lots are paid by the agent out of rent and then my rental with shared bills with my partner, as part of our weekly contribution to shared costs of rent & food). In any case, I try to stay ahead, and the peace of mind is awesome!

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