It wouldn't be a challenge without some setbacks

So just as soon as I kicked off this last push to be debt free and mailed off those tax payments that were weighing so heavily on me, two doozy-sized setbacks happened- my 16 year old cat became ill and needed nearly $1000 worth of treatment, and the transmission in my 2002 minivan let go and the cost to repair it vastly exceeded what it was worth (it's got 180,000 miles on it).

Excuse my french but well, shit.

After a not-insignificant amount of worry and self-pity, I realized something- this is exactly why I'm doing this. So when my cat is sick, I CAN take her to the vet. When my car dies, I CAN go buy a new one. So setbacks don't actually set me back.

In the meanwhile, I'll be driving my sister's car (she moved abroad). I'm hoping my cat improves, but she's 16 and at least I know I did right for her. And we'll keep soldering on.

Big, Huge, Mammoth Relief

Last year, I made the tough decision to withdraw the funds from an old IRA and pay off the vast majority of my credit card debt. I did this for a few reasons- I have another, much larger retirement account with my current position, I was not making progress with my debt payoff since I stopped receiving child support, and I carried a lot of emotional baggage associated with that debt that I just wanted to be rid of.

I talked to a few friends who are in finance, did a lot of research, slept on it, and talked to my mom. Then I pulled the trigger.

I knew I would have to pay taxes on those funds, and also a 10% penalty for withdrawing the money before 59 1/2. And today, I did my taxes. Thankfully, I owe just about what I thought I would owe. I can afford to pay it.

It's done. I have been chipping away at this debt for nearly 7 years, and yet today was a big victory. What a relief.

Banish the to-do list

Lately I've been trying out a new habit- not using a to do list. And I'm getting more done than ever!

Let me explain.

Throughout the day, a million little tasks are thrown at you. Beyond that, there are inevitably things you need to follow up on, do something about, or otherwise review. For example, if you attend a meeting at work, you need to type minutes, take care of tasks that arose during the meeting, follow up with people you need to speak with. I used to add these tasks to my to do list- if I thought of it or had time before my next thing. They would get put in the queue, and sometimes that was it. Especially if it was something that I didn't want to do- I'd wait, then the next day I'd put it off, and so on... until the thing was so overdue or long over that I was too embarrassed to resurrect it. It was the tell-tale heart of professional tasks.

That, or I simply forgot what happened. Why did I need to call Carrie re: website? What was "list coll exp"?

Not only that, but I spent time every day rereading these to do lists, thinking about them, and not acting on them. Talk about a supreme waste of my time!

So, I got rid of my to do list.

Okay, not fully, but the habit has become to deal with it (whatever it is) immediately. Think about it once, do it once, move on. Things that can't be done immediately don't get looked at until I can, like non urgent emails. Deal with it, delete it, and move on.

I know that this is probably obvious to some, but it wasn't to me, so I thought I'd put it out there. What do you think?

10 Things You Can Do With Your Money When You Don't Have Credit Card Debt

1. Budget and save for irregular expenses instead of scrambling to pay for them. (I'm planning on using Capital One 360- was ING- to open multiple accounts to use for savings goals)
2. Make substantial payments to student loans and actually pay them OFF (that seemed unrealistic before)
3. Save up for and put a downpayment on a new (to me) car
4. Go on a real vacation
5. Review insurance (life, auto, home) and ensure coverage is adequate
6. Increase retirement savings
7. Increase college savings
8. Use credit cards wisely to earn miles and free nights at hotels (I'll be shopping for a new card when I'm done paying off the two I still have)
9. Teach children about finances and how not to repeat your mistakes
10. Know that you will never go down the road of debt again.

These are the things that have been keeping me going. What will you do when you're free?

The little white lie that will help you get rid of your debt

Yesterday a colleague called and asked me if I wanted to take our boss out for lunch for her birthday. Of course I did, but I just felt like I couldn't say yes because of the cost. I immediately went down this rabbit hole of- it's not her fault I'm in debt- taking her out is the right thing to do- it's so shameful that I am in the position- everything sucks- I hate my life.

Luckily, I had to talk to one of my team for another reason, and this person happens to be a total frugalista (I've actually written about her before). I told her the whole story, and she gave me some great advice: to simply say, "I am saving for a new car right now and can't spend extra money, but I'd love to meet up for a brown bag lunch."

It's not exactly a lie, I do plan on getting a new car when I'm done paying off debt, but it does the trick. People feel shame and guilt about debt, but pride in the ability to be strong and save up for things instead of charging them.

So if you're in major debt payoff mode and you don't need the world to know that, just focus on the word saving- the little white lie that will help you get rid of your debt.

Thanks, E.

The thing I didn't think I cared about

I've been really sticking to my no spending budget, with the exception of things I had previously committed to (like going to see Book of Mormon last night- hilarious!). I've gone days without spending an unbudgeted penny. I've packed my lunches, brought my coffee, and avoided situations where I might be tempted to shop. But the one thing I didn't anticipate is how much I would miss going out to eat!

I don't think of myself as someone who likes to go out to eat. It doesn't FEEL like we do it often. And yet, now that we're not doing it at all, I'm struck with how many times a day I find myself thinking of fun things that I could do with friends or the kids that revolve around eating something somewhere. I think, "we can go to the great bagel place!" or "maybe a trip to Carvel this weekend!" and then think, "oh, nope."

Looking at my Quicken reports (our finance person at work called me an "accounting rockstar"- I was a little too excited to receive that compliment!), I see that the numbers prove this affection for restaurants. Who knew?

In the meanwhile, we cook. I have made homemade donuts, shrimp scampi, and a LOT of lunches. We'll get used to it... I hope.

Cancel those emails

Today's frugal living tip: Don't tempt yourself with email coupons and catalogs

One of the first things I'm doing to make sure I meet my goal of paying off my last two credit cards is committing to not spending. We basically have everything we need to get through the summer, and if not, I'll deal with that when it comes up.

To that point, I am unsubscribing from every email list and catalog I get. $20 for a $60 Banana Republic shirt is still $20, and I just don't want to be tempted. I just recycled the Toms catalog without even looking at it- a little painful, but worth it.

The only exception is the J Crew catalog, because I like it for ideas. I'd never order anything from there anyway (is it me, or is their pricing insane now?)

203 days, 18 hours, 22 minutes and 20 seconds

I set two goals yesterday- pay off my credit cards (2 left, plus a store card with a small balance) and run a half marathon.

I'm so done with debt. I have had it my entire life- I probably still haven't paid off those original charges I made on my first credit card from college. The balances have been rolled over to new cards, taken over my new companies, and continued on with me since I was 21. It's time to be done with this.

Two years ago, I started running. It's the cheapest exercise you can get, dollar-for-calorie. All you need is a pair of sneakers! I ran a few 5Ks and one 4.875 miler, and then fell off the wagon. (I also literally fell at the almost-5 miler, injuring my hand and scaring the crap out of myself.) I've gained probably 15 lbs since then, and I don't feel good. It's time to get back in shape both financially and physically.

I am a person that does best with big, all encompassing goals (that's why this blog exists!). I'm ready to do this. 203 days!

You can do anything for one day, one week, one month...

Right now I am trying to stick to two resolutions- the Skinny Rules diet, and a spending diet. The Skinny Rules diet started as a one week resolution- for one week, I will follow this diet. That meant that when I had to go to Pennsylvania last Friday for a funeral, and we went to a mac and cheese themed restaurant, I had salad. (and a few bites of mac and cheese, which seemed reasonable to me). After one week, I weighed in and found that I had lost 3.4 lbs! Granted, I'm sure most of that was initial water weight but I am not complaining. So, I will do the diet for one more week, and see what happens then. And probably more weeks after that, but with diets, I think it's good to set small goals.

Financially, I am on a spending diet for the month of September. That means that when the kids want to go to McDonald's, I tell them we will go in October. Same thing for clothes, or house stuff, or anything that is not required and available from the grocery store. The reason for this is that I am committed to paying off my credit card debt as soon as humanly possible, and one month intervals are workable for me.

Setting small goals can make big, depressing and overwhelming tasks bearable. Taking it day by day, week by week, or month by month can get you there!

                (image via Flickr user asterix611)

Frugal dieting:a review

Anyone who budgets groceries knows that a diet can be a budget killer- all those weird, expensive ingredients, foods no one will like, and of course none of it is on sale...

So what's a frugalista to do when she needs to drop a few?

First, she checks the Internet, Pinterest, and the library for great diet tips. If you aren't on Pinterest, get on it now! (Follow me at http://pinterest.com/jaime_hammond/)

Most diets that WORK involve real commitment- fast fixes are just that. I had seen pins about Bob Harper's The Skinny Rules book on Pinterest and decided to place a hold on it at my library so I could check it out (see what I did there? Classic librarian joke... anyway) Harper's book consists of about 20 rules that, if followed, will result in permanent slimness. Some of them, like "don't eat fast food" are pretty obvious (but also frugal). Others, like "no carbs after lunch" are totally doable but also make a big difference. Harper really focuses on hydration- he says many of the Biggest Loser contestants are chronically dehydrated and have high sodium levels, which contribute to both weight gain and decreased potassium, 

The Skinny Rules is a diet for those wanting to lose a few and stay on budget- rules like "go meatless one day a week" are budget and waistline friendly. I think we found a winner!

My breakfast this morning

What stuck

Five years. Can you believe I started this blog five years ago? I can't either. So much has changed! I thought I would take a minute to reflect on the projects I've started over the years and talk about what worked enough to become part of my regular life. Here are some of them:

Budgeting

I'm still using the same excel spreadsheet I used to budget nearly 8 years ago. Here's a post from 2008 where I talked about how I do my budget. I absolutely couldn't handle my finances without it! I've tried other things over the years (apps, Quicken, the Dave Ramsey envelope system) but they don't work as well for me. I say, stick with what works.

Gardening

One of my biggest changes was starting a vegetable garden. This has been a great success! Here are some posts on my garden through the years, and here is a recent shot of some veggies I grew:

(feel free to follow me on instagram)

I broke up with Target

It wasn't me, it was Target. Read my breakup letter here.

I started a holiday

In 2010, I started a holiday called "Decluttering Day." It even has a Facebook page!

There are more things I've hung on to, but this is a glimpse into some of the fun projects I've hung on to over the years. What have you changed for good?

2014 just might be the last year of frugal living

I began the Year of Frugal Living in 2008 when I was a newly divorced mother of 2 and 4 year old boys. Over the years, my commitment to the blog has waxed and waned, but my commitment to paying off my debt and being debt free has never faded.

Though things got tougher for me in 2011, I've never lost hope that I'd be able to accomplish my goal. Well, okay, I've never lost hope for more than a few days- I've googled bankruptcy more times than I care to admit- but in the end, I'm still working on it.

I've made some hard decisions and at this point I'm SOCLOSE to being credit card debt free (I still have student loans)- I expect to be done with it in the next 9-12 months. Because of this, I'm doubling down on my frugal living and really living cheap so I can finally be done. I thought I'd bring the blog back since I'll need support- but also because I want to celebrate it with you when I do!

So, is anyone still reading?

clutter versus minimalism

Clutter and minimalism don't agree. When I think of clutter, I think of Hoarders- chaos, mess, and items that should be thrown away. But I also like the look of combining interesting things, like the image below from one of my favorite blogs, Design Crush:

image (and related post): http://www.designcrushblog.com/2012/03/20/little-corners/

On the flip side, when I think of minimalism, I think of another favorite blog- Zen Habits. and an empty room, maybe all white, very serene and almost clinical.

I've always been drawn to simplicity and oddly comforted by a mess. When I have a mess, it's usually because I'm in the midst of a project, or have been having too much fun lately. I sometimes fall asleep amid a  pile of books and I love that. But the other side of me gets very stressed out and overwhelmed by messes, and craves that quiet simplicity of minimalistic design. 

Since 2012 began, I've been attempting to declutter by using a program called 40 bags in 40 days (clearly it's taking me longer than that but whatever) that chooses one cluttered spot- a closet, a drawer- and you attack that spot with a garbage bag and images of Hoarders fresh in your head. I've met with great success doing this and now that I only have my car left on my original list, plan to start over again with 40 more bags. 

But my goal is to end up with something like the above- not empty, but deliberate and thoughtful and clearly referential to who we are as a family.

One Day at a Time

Image Flickr user quibus

I am an obsessive planner. I mean, who starts a blog called The Year of Frugal Living other than an obsessive planner? I cannot just do anything- for example, rather than just declutter my house, like a normal person, I did two things:

• started a 40 bags in 40 days project that I posted on facebook and got friends to join in
• started a holiday called "Decluttering Day" (it's coming up, actually!)

Normal people probably don't try to start holidays to clean their house, but that's how I've always been. I need to do everything as a group. Once, in 7th grade, I had a religion. With followers. Like a cult. Anyway.

So I'm trying to stop that. Not because it's a bad thing, but it's just really hard to do anything so big all the time. It becomes exhausting and you burn out. You stop on bag 36. I'm trying really hard to focus on the day at hand, try to make decisions based in the moment, and be happy and stop making everything into a huge deal. It goes against my very core, but I'm trying.

(Here's the link to Decluttering Day's Facebook page: http://www.facebook.com/pages/Decluttering-Day/119658034721388)

Top ten ways to save money at the grocery store

1. Don't bring the kids.
2. Don't bring the kids.
3. Don't bring the kids.
4. Don't bring the kids.
5. Don't bring the kids.
6. Don't bring the kids.
7. Don't bring the kids.
8. Don't bring the kids.
9. Don't bring the kids.
10. Don't bring the kids.

Photo: flickr user tjdewey

Just kidding. Here's my real list:

1. BEFORE YOU GO: Check to see what you need. Look through the fridge and pantry, and think about what you have going on that week. You may only need a few meals or a few ingredients to go with the things you already have.

2. Eat before you go so you're not hungry. In fact, try on pants that are too tight before you go. That'll kill your appetite.

3. Buy produce with the different shelf life expectancies. Buy some items that last 1-2 days (strawberries) and some items that will still be fine in a week (apples).

4. Buy one or two choices for breakfast each week- everyone can have bagels for a week. Too many choices= making too many different foods and increases the chance of some items going bad.

5. If you buy fish or meat, only buy 1 or 2 meals worth, and do vegetarian/frozen items later in the week. Again, less chance of food spoiling.

6. Have fun trying to make meals out of food already in the house. I use the ingredients search on allrecipes.com to see what I can make. Example: I had raw pumpkin seeds and coconut (who knows why) and it gave me a great granola recipe.

7. Buy items you use frequently in the large size. There's no point in buying a small jar of peanut butter every other week. Check the price per unit on the tag to see the best price for comparison...

8. ...BUT only buy large items if you use the item frequently. It's not a bargain to buy a huge bottle of russian dressing because one day you wanted to make reubens.

9. Check the yesterday's baked goods rack for steals- just don't leave the tag on your mom's birthday cake you snagged for half off (yes, this happened).

10. Don't bring the kids. I wasn't kidding.

Digging out

Image: flickr user Chiot's Run

It's Spring! That means many of my favorite things- starting the garden, spring cleaning and decluttering, the return of fresh fruit and vegetables... and that feeling of new beginnings that motivates me like no other. It's been a long, rough winter and I'm ready to start making progress on my goals again- paying off debt, getting back in shape (holy 10 lbs of winter weight gain, batman!) and spending more time doing things that make me happy. This blog makes me happy, so step one- check!

Making lists

Like any mom/working mom/person in the world, I have 8 million things to do, an hour to do it, and I'd really rather be drinking beer and watching the Real Housewives of...well...anywhere but here.

The past few days I've really been plowing through those things to do thanks to some really adorable to do lists my dear friend Lisa gave me. I couldn't find the lists for sale online but they are designed by Mary Kate McDevitt, who has a great etsy shop that sells some chalkboards that are very similar to the notepad I have:

I don't have these, but they are super cute too:

What's your go-to for to-dos? A mix of systems or something you use religiously?

Swimming

Things haven't been so good around here lately, my ex took off again and isn't coming back anytime soon. We've all been feeling really sad and I decided that keeping the kids busy and happy was the best use of my time and money, so I got a family membership to the YMCA so we could go swimming! It's very exciting. I did a one month membership to make sure that we actually have the time to go enough to make it worth it, and I negotiated with the membership manager for a lower monthly rate based on the fact that I a) have one adult in my "family" and b) work for an organization that gets a discount on YMCA memberships. By asking a lot of questions and politicking for a lower rate, I saved 24 dollars a month and can easily afford the cost of the membership.

So now we can go swimming pretty much every night and every weekend! It's so exciting, and a great way (emotionally and health-wise) to spend our time and money.

Success

Maybe it's the inspiration of watching The Social Network (which I'm doing right now), but I finally sat down and figured out how to merge the two blogs. I've added the posts from the Building Villages to the Year of Frugal Living and plan on finishing out the project right back here where I started.

This is the year I do it. This is the fourth year, but this is the Year.

YESSSSS

Check out my debt tracker! 50%!!! It's all downhill from here!

Excuse me while I high five myself and run around the house.