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Paying Annually rather than Monthly

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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

  1. 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.
  2. 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.
  3. 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.

 

 

The Psychology of the Haves and the Have Nots

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I recently received this blog post in my Inbox from a marketing expert that I follow for work. I have followed Julie through a divorce, some rough times, restarting her business and now excelling at what she is doing. Her personal story really resonates with me on a personal level.

And of course, the article title, Leaving Scarcity Behind: How To Make A Large Purchase Decision With Abundance Based Thinking got my attention. As I continue to work to get on more solid ground financially and make wiser decisions. I hope to leave the “scarcity” behind and have a time of “abundance” – someday.

Here’s my questions: for those of you who have been on this journey, have paid off all your debt, was their a mindset shift afterwards? Not immediately…but as your journey away from debt continued?

My Mindset

I already recognize that even though business is going well, and I am making continued strides toward being financially healthier, I still function with the mindset of “it could all fall apart tomorrow.” And it could, for sure. I know this, I’ve been there, and not too long ago.

When the kids ask for something, I still answer with “we can’t afford that” or “we don’t have the money for that.” Which I know leaves them with the impression that we don’t have money still.

And I know what I should be saying is “there are other places we need to spend that money right now” or “maybe down the road” or something like that.

But really I am still very much in poverty mode. Every dime that comes in is accounted for in one form or another…whether it’s to pay a monthly bill or earmarked for a debt payment. And other than what I consider essentials…kids activities or trips to see my family, I really don’t consider any other expenditures. My immediate response “we don’t have money for that.” When the truth is, we do have a buffer now and I could allocate money toward that.

Not that I’m planning to go that direction now. I really am 100% gung ho about getting debt free, especially these last two years while Princess is in high school.

The Future – After I’m Debt Free

But will there be a time, after I am debt free and continuing to make good financial decisions, that I will start to feel safe again. When I will feel okay with spending money again?

I can’t imagine every feeling comfortable joining an “exclusive club” like Julie mentions in her article or buying a name brand bag…those just aren’t my things. My temptation is travel and experiences with my kids, which I’m sure long time readers know.

But now, the thought of any extra money going anywhere just feels back in my stomach. And even with a decent EF, I always feel poor. Does that make sense?