Monday, January 21, 2008

Debt

Debt is a bummer. But as part of our goal to be more financially healthy, wealthy and wise--it must be addressed.

I put our numbers together a couple of weeks ago. Ugh. We have approximately $41,400 in debt (car loans, credit cards, medical bills) plus student loans and mortgages. Well, I don't know if mortgage should be plural or not. We have a mortgage on the house we live in, plus a mortgage on the house we're selling Contract for Deed. So I'm not sure if we count the second one or not. Whatever. Bottom line--that's a lot of debt.

It's entirely unreasonable for me to set a goal to have it all paid by the end of the year. I've run the numbers every which way and it can't be done. So, I've set a goal of paying off half. I'd like to see the number decreased to $20,000 (plus student loans and mortgages) by the end of the year. It doesn't look totally impossible, but it might be kind of a big stretch. We'll see how close we can come. Wish us luck, we'll need it.

Sunday, January 13, 2008

A reply to Dawn's questions

In the comment section of the previous post, Dawn asked:
What is the easiest way that you have found to live a simple life?
What to you is the difference between simple living and frugal living, if there is one?
How would explain what your goal is by leading a simple life?

I'll take them one at a time.

Q: What is the easiest way that you have found to live a simple life?
A: I think for me, the answer to this boils down to some questions that I ask myself:
  • Do I really need it?
  • What will I do if I don't buy it/have it? (In other words, can I substitute something else?)
  • How will this impact my overall financial picture?
  • Will what I'm doing have an impact (on my life or someone else's) a year from now, and is it a bad or good impact?
  • Will it enable me/my family to save time, money, space, energy, etc. in some other way?
Q: What to you is the difference between simple living and frugal living, if there is one?
A: I think the 2 work together. When you're trying to live frugally, you also live simply. When you're trying to live simply, you also live frugally. For me the 2 go hand in hand. I think of living simply as being more related to the things I surround myself with, while I think of living frugally as more of a commitment to financial health.

Q: How would you explain what your goal is by living a simple life?
A: Gosh, good question. I hadn't thought about this. I think that, in a nutshell, it's about not complicating the heck out of things (which I have a tendency to do). It's about accepting that some things don't need to be perfect, that they can be "good enough". For example: Do I REALLY need a new (blender, car, house, etc.) or is the one I already have good enough?

One of the areas Fidget and I have been discussing is the difference between "simply living" and "simple living". To me the difference is pretty big, and includes the difference between a basic need (food, water, shelter) and the "needs" to be able to enjoy life (electricity, cable, running water).

"Simple living" is merely finding out how much we can do without.
"Simply living" is what we need to continue existing.

In looking at our cable needs, we had discussed getting rid of it completely. The problem with that is, because of the area we live in, we cannot get ANY channels with the rabbit-ears. So that wasn't really an option we liked (and Fidget threatened to self-destruct if she had to miss Desperate Housewives). We finally decided to go back to the basic package, just ABC, CBS, NBC a couple of others. That would save us $20/month over the package we had and still provide us with some entertainment. When we called to change our service, we were offered a promotion to save $30/month on the package we already had. So we did that instead.
In addition to that, we were offered $15/month internet (which we already had for $55/month with the same company). Now, these are promotions and won't last forever, but for the next several months, we're $ ahead.

So, in the above example, by my definition (dunno whether it's right or wrong), "simply living" would dictate that we don't need cable or TV or DVDs or anything like that. "Simple living" is cutting back as far as we can, or in this case saving the most amount of money that we can.

Good questions, Dawn! Thanks for asking!

Thursday, January 10, 2008

QATO topic for the year

QATO was originally created to further my interests in various topics. Over the last couple of years (both here and at it's previous address) I've gotten out of the swing of things and it became more of a "keeping up with the family" kind of blog. I'll try to keep some of that, but I'm also wanting to go back to the idea that I started with. So, I've picked my topic for the year: living simply/simply living.

What are some things that work to reduce/eliminate debt? Can we use the 3 R's consistently and with ease in our community? How much more can we REALLY cut back? Will I die without the movie channels? (so far I'm making it just fine) And many other similar topics. My goal is to blog twice a week. I tried for daily posts and I failed utterly. Twice a week seems like something that's attainable and is an improvement over the unpredictable schedule that I post on now.

So, send in your thoughts, questions, answers, remedies, etc. and I'll get to work on them. I hope all of my readers (yes, both of you) have a wonderful 2008.

Thursday, January 03, 2008

Just when the New Year was looking good...

My home state let me down. I want to move to Canada. Obama and Huckabee. I can't even pick a "lesser of two evils" out of those two.

Speechless.