Lockdown Budget Update: Almost Halfway There

If you're wondering how we're doing on the lockdown budget, the answer is: spectacular. Fabulous. Wonderful.

We had the opportunity to take a short vacation to a touristy town in northern Wisconsin (I had a business matter that I sandwiched in, which made it deductible and partially reimbursable. Love that multitasking). We left Friday morning, got there in the afternoon and basically spent 36 hours walking around, eating, shopping, and soaking up the last of the summery atmosphere. We took snackies and drinkies from home. Though we are on lockdown, because the trip itself and many of the expenses were reimbursable, we felt it was right to seize the day and go. We also happened to have some vacation money from pre-lockdown budget contributions -- and I am happy to report we still have lots left in that category. We will be looking at about $100 out of pocket for that little jaunt, and it was well worth it.

We did spend a little unnecessary money (gifties for the kids, a pair of winter shoes for me), but that's all right -- because in 48 short hours or so we will be a little less than five hundred dollars short of HALFWAY TO OUR GOAL for the three month lockdown period. Amazingly, very very shortly after we decided to lock down the budget, a couple of large matters closed and that got us a long way very fast. For that, I am very thankful. I anticipate, based on my accounts, that we will be halfway there by the end of September. God is really, really good.

In terms of spending, we've got a couple of expenses coming up; dance class and new tap shoes for The Girl, and possibly karate or basketball for Animal. Otherwise, I'm stocked on every other possible thing except perishables, and it seems I may not have to pay for milk this month, given all the good cereal and milk deals happening in September. And the garden is finally producing, and I have some zucchini to saute and shred for zucchini bread. Yum, life's good.

Since we made such quick progress so fast and were able to knock out the credit card giving us grief, I'm contemplating our next move. Our saving account is precipitously low; I don't like seeing it that empty, and neither does Baboo. I also don't like giving Chase any more of my money than I have to. We do have a balance transfer deal available to us that would lock in a very low interest rate for a long time, and we may do that and opt to shovel all my income into savings for the next two months instead, paying off debt in smaller "chunks" instead. Whatever we decide, I anticipate staying on "lockdown." It is eye-opening to see that we really can live on one income (tight though it may be), and to know how significantly my income can impact our debt when we choose to lockdown.

So I'll throw it out there: what would you guys do? Assuming lock down until December 1, would you throw all additional income in your savings account, or at your debt? Discuss. In the comments, if you please.

Owlhaven's September Grocery Challenge

In keeping with our Budget Lockdown theme, Mary Ostyn and her husband and ten (yes, ten) children engage in an annual Month of Nothing wherein they challenge themselves to spend no more than necessary. In addition to homeschooling that big brood and writing not one, but two books, which I've linked to on the sidebar to the right, Mary blogs at www.owlhaven.net -- please follow her this month as she endeavors to spend no more than three hundred dollars total to feed her family (yes, of twelve) in September. Mary was living the low impact large family lifestyle before I even had a family and she is truly inspirational. Check her out.

Lockdown Budget: Ground Zero and 1/3 There Already

Tomorrow is day one of Lockdown Budget, and I am happy to report that due to a large case closing and the auditing process taking not nearly as long as usual, we have already paid off 1/3 of the debt we goaled ourselves to pay off by December 1. I anticipate, based on the way my work is swinging along, that we will be halfway to our goal by October 1, and God willing we might be done by November 1.

I don't think this big start out of the gate will make us complacent; Baboo and I are really determined to make.this.happen. I am doing my best to carve out as much as I can from the food and household budget and we are selling a few things on Craigslist and Ebay as well; we'd been meaning to do these things before but are now super motivated to get the no-debt party started. If you're the praying type, please keep us in yours as we sacrifice temporarily to get our family to financial freedom. I'll certainly be updating you as we go along.

Lockdown Budget: Prepping, Physical and Mental

Ten days and counting to lockdown. What have I done to prepare?

1) I went through all the kids' clothes to identify what we would need through December 1. Basically, it's jeans for The Girl, socks and underwear for everyone else. We also need back to school shoes for everyone. I tool The Girl and Swimmo shopping yesterday, so they're all set. We'll take the Leg Puller, Animal, and Book'em this weekend.

2) School supplies: done. See previous deal posts for the month of August.

3) No birthdays in the fam except for Baboo's in late August. I do have a kid gift stash and plenty of wrapping paper for other birthday parties -- though there have been very very few of them since the recession began.

4) Halloween: This will require creativity on my part, but I can make it work. I will have to start early, though.

5) Thanksgiving: food budget always seems to take care of this.

6) Christmas: though technically this is outside the three month lockdown period, I usually begin shopping in earnest right about now for stocking stuffers and the like. I anticipate it can come out of the food budget if it needs to. We do have a head start on this from pre-buying too much in previous years (ahem).

7) We have a system of rewards for behavior and chores which is exchangeable for cold hard cash or other perks around the house. The money, where it is appropriate, will come out of the petty cash fund which we still have available to us.

8) I ordered fleece lined jeans from LLBean to be delivered shortly. They were a preplanned purchase and will come out of the last of my clothing money.

9) The very last of my allowance went toward a stock up trip to Bath and Body Works: there was a buy one get one free sale on this yummy smelling stuff, and a two for twenty sale on this stuff that I cannot live without. I also used a coupon for a free Signature item. I got it all for thirty bucks, and I got a bodacious coupon book with some coupons for a free item with any purchase (yes, that means I can spend a dollar and get a twelve dollar item free twice in the next three months). I should be covered -- figuratively and literally -- on bath stuff, which is my luxury.

10) We will set aside Worm Money for Baboo. Can't go fishin' without worms. Of course, he could dig them up himself, but hey, at least we don't have them reproducing in the basement. Yet.

Am I missing anything?

Lockdown Budget: Obliterating Twelve Thousand Dollars in Debt in Three Months

Back in January of 2008, the Baboo and I sat down in anticipation of our marriage to look at what our life cost and the net effect of combining our incomes and expenses. That fateful day, we determined we were well into the five figures of debt, and our income did not exactly cover our expenses. In other words, we were in the red and majorly upside down. Through a concerted effort to tighten our belts and a series of events that I can only describe as divine intervention, we were able to eliminate some major expenses, bump our tithing up to ten percent of our income, and eliminate about sixteen thousand dollars worth of debt in about ten months' time.

After that ten months, we were emotionally exhausted from denying ourselves certain small luxuries; and so, we bumped up the amount in some budget categories and began to coast somewhat. We also had a period of delayed income for me, and some large expenses that all came due at once.

But as usual, God decided to get our attention. We'd been largely immune from the vagaries of the souring economy, so it was a surprise to us to find that the monthly minimum on one of the three remaining credit cards we have balances on had doubled. Doubled. And at that moment, we both realized that as long as we have credit card debt, we are not in control of our money.

So we tried to figure out a solution, but nothing really seemed to click until I said "if we could just live on your income and throw all mine at the debt, I bet we could get 2/3 paid off by December." And inspired by that, we sat down with the Excel spreadsheet that tells our money where to go and zeroed out all non-necessary budget items to see if we could make it happen.

We could, it turns out. And if we did it for three months, we could in fact pay off approximately twelve thousand dollars in debt by December 1, 2009. So, we agreed we would do it. For three months, we are funding nothing in the budget categories except things which keep body and soul together and keep us working. We are still tithing 10 percent; we are paying the mortgage and all housing related bills, and keeping the food and gas budgets the same. We do have some cash available from August's budget buckets which we will stretch. We will also fund any necessities for the kids (snow boots, for example) as they come up.

But honestly, for the rest of it? We have a ton of health and beauty aids, and stuff -- just stuff -- that we can use up. We have a ton of house projects to finish. We have a park 3 blocks away, and a library. As long as I have Alterra coffee in the morning, I'm good, and that comes out of the food budget. Baboo has his treadmill and his fishing pole and fishing license. Hiking is free. Bike rides at the lake are free. Walks in the park are free. And we have noticed that when we follow God radically -- when we listen to His will for us -- things have a way of working out. We can do this, with the help of God.

So come along for the ride. It should be fun, and I look forward to being able to tell Chase to kiss off by December 1. That would make a fabulous birthday present.