by Hope
This is more of a decision based method of saving some month rather than a personal way. But I’m sure there are some applications for personal finances.
During the fall, I was turning over every rock, checking every crack and so forth trying to find additional ways to save some money. And what I discovered was that many of my subscription based services I use for business are cheaper if I pay them annually versus monthly or quarterly.
One of the things I’ve begun doing, again on the business side, is paying those services annually to save some money. I’ve also been carefully evaluating each service to determine if its truly needed.
Reviewing and Planning Time
I mentioned looking at these things on the personal side of things earlier this month. But I’m back at it today…
Reviewing my upcoming finances, planning out a few more months and looking for any fat I can trim…both personal and business. And I can’t find anything!!
I have two more business expenses to transition from monthly to annual, but I don’t won’t to spend that “chunk” right now. And I’ve got some other software I need to purchase shortly for a new project.
Baby Step Lessons
What this financial review time is telling me is that
- Paying any subscription services annually rather than incrementally is worth it. In many cases, I am saving 10-20% annually. And that adds up. You know, even where there is no discount for paying annually, the once a year payment takes a substantial amount of stress off when looking at monthly or quarterly finances.
- I need to bulk up my EF even more. While $2,000 feels good, it wouldn’t even cover a month if something happened to me.
- And probably most importantly, I am going to find an accountability partner. I really don’t know what that looks like. But I am realizing as motivated as I am, having someone else who is versed in what is going on will help me and more importantly wise when it comes to money will be helpful for keeping me focused and not scattered like I tend to get. This is a huge step for me, because I’ve been going it alone on the financial front for a long time.
When I sit down next month to review my current financial situation and debt pay off plan going forward, I am going to add additional savings to my debt plan. Not immediately as my debt pay off is first, but maybe starting this summer when some of the smaller debts are gone.
Hope is a creative, solutions-focused business manager helping clients grow their business and work more efficiently by leveraging expertise in project management, digital marketing, & tech solutions. She’s recently become an empty nester as her 5 foster/adoptive kids have spread their wings. She lives with her 5 dogs in a small town in NE Georgia and prefers the mountains to the beaches any day. She struggles with the travel bug and is doing her best to help each of her kids as their finish schooling and become independent (but it’s hard!) She has run her own consulting company for almost twenty years! Hope began sharing her journey with the BAD community in the Spring of 2015 and feels like she has finally in a place to really focus on making wise financial decisions.
Doesn’t this blog give you some accountability?
It does. Definitely.
But having someone in person who knows me and all the pieces would help as well, I believe.
At one of the personal finance blogs that I follow, the lady has an accountability partner. This has been very helpful to her! The partner has helped her steer clear of making financial decisions based on her emotional upheavals, rather than on what is logical, reasonable, or practical.
Exactly! I definitely realize that my emotions come into play a good part of the time.
Just a thought. You seem to be doing very well not spending on a daily basis. If you find that you need to make a major purchase(car, computer, moving) why not write a post here first with the pros and cons and get as much advice beforehand, that might make you feel more comfortable in your choice that you have gotten as much advice as possible beforehand.
It definitely makes sense to pay annually to save cash…but don’t forget opportunity cost. Don’t save 5% annually when you’re incurring credit card interest now.
It seems like your savings from this no spend month might be used up on travel, prepaid expenses and not debt repayment.
You are right. I hadn’t looked at it from that perspective.
I haven’t made any decisions on where our #nospendjanuary money will be going yet. Giving myself a couple of days right now.
Lunch at the coffee shop today and then grocery shopping.
I’ll spend some planning time this weekend.