How Should We Budget $5000 of Discretionary Income?

HOW TO BUDGET DISCRETIONARY INCOME

PLAYING WITH SPARE CASH   Not many people can say they have extra discretionary income kicking about every month where they have to drum up ideas about how to spend it.  For those of you that do you can still manage that money with a budget if you want to stay on track with your financial goals. When Mrs. CBB and I paid off our mortgage in April 2014 it was a grand time for us. We managed to break down our mortgage into pieces and pay it off far sooner that we had ever dreamed of. The reason that happened was due to perseverance and a drive to be successful at whatever we did. I guess in a way we were pushing ourselves to earn more money but we knew in the back of our minds that it was all stepping-stones for our dream career roll. Now that our mortgage is paid we have lots of discretionary income which we just recently worked into our budget. Lots of people would be more than tempted to start spending money especially if they’ve hit it big time and the money is rolling in.   What is Discretionary income vs. Disposable Income? […]

How financial management led this man to pay off $20,000 of debt : June Net Worth Update 2015 (+0.22%)

MONTHLY NET WORTH UPDATE

YOU ALWAYS HAVE A CHOICE   When it comes to financial management of your money there is no excuse about not knowing why you are in debt, besides the obvious. Calculating personal net worth is a controversial topic in the personal finance world only because everyone calculates their worth a little different. Some people may add liquid assets such as “stuff” they have acquired over the years as well vehicles and their primary residence. Others may not.   Financial management starts now   Whether you hire someone to manage your finances or you do all the leg work and management yourself you know that this task never ends. Money will always be a mission on the monthly “To-Do List” no matter how rich or poor you are. It’s been years now that my wife and I have been calculating our estimated personal net worth but we never quite gave much thought to the motivational aspects of knowing “What am I worth?”. What I mean is how taking charge of our finances have influenced our mindset. Financial management of our assets and liabilities didn’t come into play until we bought our first house together after we were married BUT we could […]

When should you stop using a household budget? : June 2015 Budget Update

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HOW IMPORTANT ARE YOUR FINANCES?   A household budget sounds so “old school” especially with all the new technology we have today but it’s not. Not much has changed with the household budget apart from the ability to use other forms of budget tracking rather than paper and a pencil. Even so, many people continue to track their household budget the easy way because it’s something they are used to doing. Let’s remember that for further down the post. “It’s something they are used to doing”. Learning how to manage your finances can be as complicated or easy as you want to make it. Everyone has a unique financial situation which may take little to no effort at all or lots of undertaking. Your household budget may be weekly or monthly like ours and at first it seems like a huge chore and it is but over time once you start to see the benefit (and you will). Then,  you might never want to let it go even after you pay off all of your debts. There is some sort of an emotional attachment to the household budget every month comparable to wanting to eat healthy, exercise and be happy […]

Woman Confesses Shopaholic Game Helped Pay $10,000 Debt : The Saturday Weekend Review #128

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WINDOW SHOP UNTIL YOU DROP   If you are scratching your head wondering what on earth the Shopaholic Game is trust me, I was too No, I did not invent another game to help all of you save money however I certainly realized just how a challenge can motivate someone to save money and pay off debt. Not everyone can create success alone but when there are a few people involved with the same goals in mind it becomes a challenge of who’s going to make it to the end victorious. It’s not everyday someone drops the term “Shopaholic Game” into a conversation BUT this is what happened to my wife this past week while we were coincidentally out shopping. I don’t know what it is about when we get together with friends BUT money always seems to pop into the conversation and we aren’t the initiators. Trust me when I say we don’t talk much about finance with family and friends however we are always more than happy to hear what’s happening in their financial lives. Since we went home for the Canada Day Holiday this past week my wife decided to meet up with a friend at the […]

Budgeting the cost of Canada Day Celebrations : The Saturday Weekend Review #127

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EXPENSES CAN ADD UP   Each time there is a holiday in Canada we have to make sure our budget accounts for the costs involved and Canada Day Celebrations is one of them. Before our son came along we didn’t spend much on Canada Day and you might not either but it’s not just people with kids who spend more. There was no dressing up (yes we were boring but not any longer) but we did participate in watching the Canada Day parade. The cost to us was merely time and gas to get to the parade which is peanuts and no need to budget because our gas category in the budget picked up the tab. Not everyone spends lots of money for the holidays and we were the couple who didn’t get too involved although we didn’t mind watching the fireworks from afar. That was our July 1 Canada Day Celebrations for many years but this is all going to change.   Grocery shopping and Canada Day   Not only are stores marketing Canada Day Celebrations to their advantage by offering amazing deals leading up to the day, they’re practically pulling you in the door. I was reading the […]

One Year of Savings After No Mortgage Payments : May 2015 Budget Update

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A MORTGAGE IS A HEAVY DEBT   Kissing our mortgage payments goodbye one year ago this month was one of the greatest accomplishments we’ve achieved financially as husband and wife. Honestly it was my wife that reminded me that it has been a year since our final mortgage payments were processed. Time certainly does fly by but I’m certain since having our son time is just a big blur to the both of us.   Mortgage Payments are reality   Having no mortgage payments have not gone unnoticed though as our budget has shrunk and our net worth has jumped up to just under $700,000. It would be nice to be worth a cool million before I turn 40 although that may be super optimistic of me. When we conquer one hurdle we set goals to conquer another. Having mortgage payments will add bulk to any budget but it’s not the end of the world if you have one. The reality is that most people who have a mortgage pay for it until the end of their term unless they pay extra to shave a few years off here and there. That is great if you can do this as […]

Would you take half your spouses bonus as a stay at home parent? : The Saturday Weekend Review #123

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YOU WORK HARD FOR YOUR MONEY   Here’s a mock scenario. You’ve worked at your career for the past 8 years and every year you get a yearly work bonus of nearly $5000. When you go to work you work full-time and sometimes you work over-time which means you earn more money after the government takes their cut. While you’re off at work your wife stays home with your new baby for the next 12 months on maternity leave then you both decide she will stay home to care for the baby full-time and give up her career. She misses working because she enjoys challenging herself but loves to be a mother. Without a career and earning now she can’t go out and spend money on herself like she used to. No more purses, shoes, new wardrobes, manicure, new hairstyles etc. Now your wife wants half of your yearly bonus to spend on whatever she likes because she works just as hard as you do at home. Does this sound like your family?   Wife Bonus   I was reading this article today about this couple who splits the husbands yearly work bonus. They call it a “Wife Bonus” where […]

Husband is hoarding money and jeopardizing relationship

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DEBT SCARES MAN TO THE BANK   Believe it or not there are people who have money hoarding tendencies because a fear of living without cash can push people over the edge. Just because someone is in debt doesn’t mean they are OK with it even though some people think that having consumer debt is normal. Some people get very ill thinking about their debt and it can cause great stress in their life mostly affecting their health, job and relationships/family. What else could money possibly affect? It’s hard to find a middle ground sometimes when money becomes the reason for living. I’m not saying money is NOT important because it is but for those who scare themselves off a cliff it’s serious business. Having millions of dollars in the bank when retirement comes around would be great but you don’t have to live like a miser to get you there. Even though compulsive hoarding is defined as hanging on to stuff that others may view as junk hoarding money is another way of stashing cash which someone is too afraid to spend unless they are forced to. ie: Paying the bills to live . Maybe hoarding might not be […]

Is Reducing homelessness by creating housing worth it? : The Saturday Weekend Review #121

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Soldier Of Your Own Dream   I have always been intrigued about homelessness because I often wonder why it even exists in a country that has so many resources. There is no reason so many people are homeless for so long. It makes no sense to me unless they don’t want to be helped which is certainly a possibility if you’ve become so accustomed to a way of life. At the end of the day I’m sure it’s safe to say that we all want a place to lay our head that is safe and food that will fill our tummy and clothes to keep us warm. Did you know that homelessness costs the Canadian economy a whopping 7 Billion dollars annually and if that number doesn’t blow you away or push you towards tightening the budget, nothing will. In Canada, though the median length of stay in emergency shelter is approximately 50 days, most people are homeless for less than a month (29% stay only one night), and manage to leave homelessness on their own, usually with little support.- Homeless Hub Canada I often wonder what we are doing to try and combat the situation so we can get […]