{ the spending diet... weeks 13 + 14 }

I think its a very good thing we live in a teeny tiny mountain town where there is not even a Target. We spent the past 2 weeks in cities. Target. Good food. Anthropologie. More good food. Concerts. Lululemon. Geez. Anyway, I managed SOME self-restraint but not enough. I bought Samme some new clothes for next school year at Marshalls (super duper cheap). I bought "hot mama" jeans from a store called hot mama and this top and this dress (which I love love love). I bought this shirt. And this jacket. I bought Henry a new basketball at Target. I bought copious amounts of good food and green smoothies from Whole Foods. I bought Ben Harper concert tix + beer (worth every penny - one of the best live shows we've seen). Dinner + movies on another date night (spoiled with a free babysitter aka grandma). Nieces ballet concert tickets. A trip + tickets to Waterworld. Yikes. Anyway, back home and planning on staying out of stores for the rest of the summer (other than a few back to school purchases for the kiddos in August). How have you all been doing? Have a great weekend ~

{ the spending diet...weeks 11 + 12 }

I bought this skirt (on sale). I call it my church skirt. But it is also coming to the beach with me. I needed a slightly longer skirt to wear to church when we go, um, like once a month. (Hey, don't judge, that's way more often than we used to go! When you get ovarian cancer at age 23 you develop a complicated relationship with God). :)

And I bought this bag (in black) for a carry-on for several upcoming trips and the pool trips this summer. I think it will carry my stuff + all of the kids stuff just fine.

We've had a lot of little misc. spending this month - some stuff for the garden; end of the year teacher appreciation gifts; more money on food due to lots of company in town and end of the school year functions; etc. So I'm going to try to be really mindful in June & July. But I'm going to be within a 10-mile radius of a Lululemon and Anthropologie next week. So may the force (or will power) be with me.

{ the spending diet... week 9 + 10 }

Hmmm... Okay, no beating around the bush. Here's what I've acquired so far this month.

1. Four $1 bubblewands for the kids. (See if I start with the small and inconsequential perhaps you'll get bored and not read on...and see how bad I've been)...
2. This skirt. Adorable. Probably will wear it everyday this summer.
3. A grey & white striped tank top from Target. Can't find it on the website but it was $8.
4. This cute summer dress. It has pockets! :)
5. A pair of Lululemon Astro Crops off of ebay. Love them.
6. New pair of bike capris (with extra padding) for the LONG bike race coming up memorial day weekend. My butt has been KILLING me after long rides, so I think this falls in the necessary category.

That's all. Back to saving for this.

{ the spending diet...weeks 7 + 8}

What can I say? It's confession time but I think I did pretty darn good the 2nd half of the month... The only non-essential things I bought were this PERFECT shirt for Henry and this new yoga DVD for ME. And I'm still on a mission selling misc. stuff on ebay and craigslist. How y'all doing?

{ the spending diet...weeks 3 + 4 }

Hmmm...this gets harder each week. WHY. OH. WHY? does shopping have to be FUN!?!?! And why are we programmed to do it?

Anyhoo, I did order this book from amazon. Its not at our library and I love her blog and I'm really interested in her green smoothie revolution.

I resisted buying this. And these. And this. And this. And this. All were in shopping cart for 2 days before I shut it down. I did pick up a new soccer ball for Henry and a few small gifts for Samme's birthday party.

I found that the time I like to shop the most is at night after the kids go to bed. So instead I've been turning on a Tracy Anderson DVD and doing mat work or watching West Wing (we have all 7 seasons and on a side note...I declare there has never been a better television show) or reading a book. I've been trying to stay off the computer. And off the aptly named gilt. That helps.

I'm still selling stuff like crazy on ebay & craigslist. I chant, Less is more, less is more.

Came across this quote on the new YouvsDebt website that really resonated with me... "I want my children to know financial peace. I don’t want them to worry about finances. I want them to be able to be free to do what they want to do, regardless of income.” Yes and yes.

How y'all doing? I'm moving onto APRIL. Around and around I GO!

{ on my mind...money }

“It's time to get back to a more balanced state of acquiring what I need, when I need it.”

— Martha Beck

Will & I spent some time this weekend going through our finances, trimming the fat from our budget and revisiting some ambitious savings goals (early mortgage payoff fund, retirement savings, college funds, giving plans and travel funds). Additionally we are trying to save a big chunk of change to take a BIG 10 year anniversary/Will's 40th birthday trip to Bora Bora next winter. So with that AWESOME goal in mind, I commence my spending hiatus.

But prior to starting my spending hiatus, I would be remiss if I didn't say that I picked up a few things that I "needed" recently. But I went through a detailed process to figure out what it was I "needed."

Inspired by this great article from Oprah Magazine about how to shop smarter and only acquire what you need, I recently went through my closet (eagerly looking forward to spring's arrival and the shift in clothes that brings) and made a pile of things that I no longer wanted (to donate or sell) and made a small list of things I'd like to acquire (wants) and a few things I need (a relative term for sure). Like I want a cute spring romper and I could use a gray tank top and a pair of black wedge sandals. I am trying to get all of my clothes so that I can mix & match them and coordinate them (think lots of blacks, grays, purples & whites). And am letting go of the cute, but doesn't match with anything, turquoise top and the tan linen pants and the vintage brown & orange Lululemon bag I don't use. The ebay shop is open again.

So, March 1st is the official start of the spring spending hiatus. I'm visualizing money flowing into the "Bora Bora" fund and the kids "i'm setting my kids up for the future" fund and the "I'm going to lie on the beach in our retirement" fund.

Anyone want to join ME?

{ on my mind...money }

So the thing I get asked to blog about the most is finances...which is hilarious since 1) that is clearly not my area of expertise and 2) I don't think I have ever balanced a checkbook. But it is something that we all have to think about and do something about, right? So, some $ things on my mind lately...

- Danielle LaPorte always gets me fired up about all sorts of good things. But her 20 personal money practices that got me to a place of grooving prosperity (and Part 2) are so great. My favorites include when she says that "Money Management is about FOCUSING ON CREATING FREEDOM." And her great bank account names include ADVENTURE + CARE and I'm setting my kid up for the future. She says that investing for her son "gives me very deep peace. Everyone deserves a leg up." LOVE! Go read the rest of her list now!

- Love this article about a family's No Spend Month. I have been reading lots of stuff like this in an attempt to get my frugal groove back ON after several months off the bandwagon.

- Love Joslyn's new project...Operation Simplicity. She will be blogging about everything she gets rid of and brings into her home over the next year.

- Loved this story about a family that bought a house with CASH. No mortgage. No debt. Voila.

live simply print above via etsy

{ spending hiatus }

Print via Etsy.

I posted last week about joining in on Aimee at Mostly Mod's remainder of 2009 spending hiatus and got lots of great comments and emails with more questions about it...so I will attempt to explain my personal motivation and answer some of your questions about it. I can say that my motivation in doing this is really getting a grip on the non-essential spending that happens in our household (and by that I mean by ME). As you ALL know, it is really easy to drop $100 in Target and later try to recall what exactly you bought... We are very fortunate that we own our own businesses and aren't at risk of being laid off during this recession, but we seriously need to be better about not buying STUFF we don't NEED.

So for ME, this spending hiatus is about spending SMART. This isn't about deprivation. This is about plugging my leaks of wasteful spending and using our money for specific purposes, rather than by habit or accident. We are attempting to save money by spending only on things that we really care about and plan to buy for a specific purpose. The bottom line with this spending hiatus for me is to spend less money on things I don't care much about so I can spend on things I do care about (eg. traveling). We want to spend our discretionary money on doing rather than owning. Because in the end, positive life experiences contribute to happiness more than things do.

Ahimsa is a Sanskrit word that means "nonviolence." In ancient yoga texts, it means not violently compelling ourselves or others to change emotionally, physically, or spiritually. Yoga teachers often encourage their students not to strive to achieve a perfect pose but rather to be present and accepting of the current posed, before making any change. With that in mind, I'm trying to pay attention to the moments where I struggle with money and learn and grow from those situations instead of judge harshly from them. So if you want to join in on this spending hiatus, do so, gently and lovingly and gradually.

Specifically some of our financial goals are...

1. Financial Independence. We have some pretty lofty goals of paying off all of our non-mortgage related debt (car loans & school loans) by the end of the year...This can only happen if we continue to increase revenue and decrease spending. I have the debt figures posted by my desk to remind me daily of our goals.
2. Life experiences. We've got some fun travel plans lined up for the next year or so and I want the money for those trips set aside before the trip.
3. Simplicity. I am really trying hard to simplify our lives and get rid of stuff that we no longer use, love or appreciate. Bringing MORE stuff into the house thwarts our decluttering efforts as it just turns into a continuous bad cycle of stuff coming in, stuff going out.
4. Environmental. Likewise, I am trying to only bring stuff into the house that is made in the USA, made with eco-friendly materials, preferably made by local artisans...and of course, not to forget to bring in less overall to stop the endless cycle of over-consumption.
5. Education. Teaching our children that money does not grow on trees and continue to educate myself about the financial realm and how to better manage my families resources. I am hoping to set a better example about saving for my children vs. impulsive consumption.
6. Planning ahead for purchases. For example, my best friend from NY came out to Colorado this weekend for a fun girls weekend...I set aside $ over the past few months {girls weekend $$} -from birthday money and some stuff I sold on ebay - guilt-free cash - to have some guilt-free girl time with Lisa... massages, dinner, etc. I have been planning for the past few months out some garden expenses (soil, compost, seeds, plants, etc.) and bought all of this during Home Depot and a local garden stores Earth Week sales. These purchases did not go on the credit card and I had a budget to stick with.
7. Repurpose. I want to better about repurposing what we have instead of buying a replacement. Waste not, want not.
8. We have enough. More than enough. More than most people around the world. Instead of buying more stuff, I want to be able to travel and help those less fortunate more.

Now, what are my exceptions...besides normal household expenses (mortgage, utilites, car payments, gas, school loans, healthy organic food, baby diapers, formula, Sam's montessori school tuition)... The spending hiatus will apply to the other things (like Target ventures and Anthropologie.com orders). {note: I am going to aim to keep our grocery bills to $125/week as well}.

Exceptions to my spending hiatus may include:

1. Birthday, Baby, Wedding & Christmas Gifts - I will purchase birthday presents for family & friends that I do not or cannot make (but will aim to give the gift of my time with these people vs. a gift; make a gift or purchase a handmade gift from etsy). But these gifts will come out of my small pot of misc. cash each month and not be charged to a credit card.
2. ME funds - I will have a designated SMALL amount of money each month (in cash) that I can use for yoga classes, drinks at girls night out, date night, etc. It's essentially my blow money and when it's up, I guess I will be doing my yoga DVD's at home ;-). But I am aiming to use this money solely on experiences and not more STUFF.
3. Kid's misc. funds - Cash for Sam's dance lessons and misc. things that come up (new sneakers because she outgrew hers, new art supplies for a project, etc).
4. Minimal, mindful household purchases of things we are budgeting and planning for (eg. a pond liner for our pond and 3 aspen trees for our yard).

I am going to keep my monthly spending plan on google docs and track all receipts and checks written into that for our normal expenditures and my cash outlay out of my {envelopes}. I am going to use this dave ramsey envelope wallet thing {I recognize that might make ME look like a dork} but everyone I know who does this says it helps and ME and a credit card at Anthropologie don't mix. Once the money is gone, its gone. What a concept. ;-) I'm also going to try to get rid of 10 things a week from our house (either donating them or listing them on ebay or craigslist).

Oh, and this post by Joslyn's experience with her 3 month spending hiatus sums it up for ME.

So, anyone IN with ME?

{ new year, new you - finances }

Here are some ways to kick off the new year with getting your act together financially.

1) Talk about it. Carve out some quiet time with your partner and talk about where you're at financially (have current account statements & information ready) and talk about what your goals are for 2009 and beyond. Get on the SAME PAGE. Will & I listed out 10 financial goals for the new year in addition to our personal and business goals. Some are more important to ME (finally, dear god, pay off my grad school loans) and some are more important to him (beef up emergency fund) but by combining our goals into family financial goals, they all become important to both of us. It's important to take a clear, honest look at where you are today. Not sure where to start? Here are two great financial goals worksheets - one from Savvy Sugar and one from ING.

2) List it out. Now, make a list of your 5-10 financial goals for 2009 & beyond with action steps. Post them in a prominent place (eg. above your desks, on a kitchen bulletin board, etc.) where you can be reminded about them everyday! We wrote out 2009, 1010, 2016, 2019 goals. So 1, 2, 5 & 10 year goals and action steps. Later this week, I'll share some of our financial goals.

3) Look at ways to trim your budget/spending plan. And if you don't have a budget, start using one. We have ours on Quickbooks and on a shared google doc but I know lots of people love Pear Budget and Mint. Make sure you track what you are spending. Make sure you have an emergency fund for those unexpected emergencies and make sure you plan for some fun each month! Here are some great tips on ways to learn to live with less.

4) Get your finances organized. Create a financial organization system either using online tools or a folder system. We use pageonce to have all of our accounts in one place online and Quickbooks for our personal and business finances and then I have a folder system with my goals tacked to the front and individual file folders for school loans; IRA's; real estate investments; bank accounts; general financial information; credit card statements & contact information; etc.


Here are some suggestions from David Bach for a financial file system.

1. Tax Returns-Include 8 folders for the last seven years plus the current year. Place all W2’s, 1099’s, interest statements and returns in this file.
2. Retirement Accounts-Create a folder for each retirement account you have, 401(k)’s, IRA’s, etc and include the statements.
3. Social Security-Include your social security benefits statement.
4. Investment Accounts-Create folders for each brokerage account, mutual funds, or individual stocks and keep the statements here.
5. Savings and Checking Accounts-Add files for each separate account you have.
6. Household Accounts-Here you will keep track of your House title, home improvement receipts, mortgage and utility statements.
7. Credit Card Debt-Add a folder for each card you hold.
8. Other Liabilities-This folder would include student loans, personal loans, car loans, etc.
9. Insurance-This folder contains all insurance policies, home, life, car, health, disability, long-term care.
10. Will or Trust-Keep a copy of your will and living trust here.
11. Children’s Accounts-Include any college savings plans or trusts set up in your child’s name.

5) Make saving a habit. Find ways to be more thrifty & frugal this year. Here are some great tips.

6) Learn more. Add some financial blogs to your google reader and check out some financial books from the library to continue your financial education and your motivation towards your financial goals. You can download Suze Orman's new book for FREE for the next few days at Oprah's website.

Some financial blogs I like:
Simple Mom's Money Management Series
Get Rich Slowly
Fabulous Financials
Prime Time Money
Millionaire Mommy Next Door
No Debt Plan
Boston Gal's Open Wallet

7) Figure out how much things down the road will cost and start saving NOW. We really want to be able to retire early...using a variety of online calculators we figured out how much we would need per year (retired) and how much we need in the bank/invested by the time we want to retire to be able to live off the dividends. This was a very MOTIVATING exercise to both of us. We also need to get our groove on for saving to help send the kids to college. By the time our kids will be in colles, 4 years of tuition at a public college will cost $100,000 +! Ouch. I had no clue. So, to get there, we need to save approximately $4,000/year for the next 13-17 years to make this happen.

8) Reward yourself for working hard on your finances! What is it you want to save for? A family trip? A day at the spa? Plan and save for FUN!

What are your financial goals for the New Year?

{ NO spend month redux }

So, we did it! And we were right on with our goal of $500 for food and $50 for misc. items. We even had $.08 cents remaining! LOL!

How did the family handle it? Well, my husband took to calling my {NO spend month} - NO Food In The House month! He said, can we PLEASE go get sushi now that this is over?

What did I/we learn? I really want to continue to keep better tabs on where our $ goes each month. I think by simply paying attention and being more mindful of purchases we can continue to do a good job of saving $ for the things we really want (paying off our mortgage early, traveling lots & lots, etc.) We want to live our lives and spend our money in ways that are in line with our values, interests and passions. We want to be do-ers, not accumulate-ers. For instance, we don't want more stuff (more cars, more toys, more clothes) but we want to be able to spend generously on recreational pursuits, organic foods and long trips to faraway places. We want to continue to make efforts to be environmentally green. By reducing our consumption, we save money (and the earth) in the process. We talked about ways to generate more passive income streams and ways to cut non-essential personal & business expenses. And we talked about what questions to ask ourselves before making a major purchase. We have our financial goals listed on a chalkboard in our kitchen and on the bulletin board by my desk - as daily reminders - pay off school loans, save $ for month in New Zealand/Australia, retire early, etc. This daily reminders help keep us focused & inspired! We decided that we were going to take a VERY minimal approach to holiday giving this year (photos of Sam & tree dedications to immediate family and no gifts to extended family), asking nicely that the grandparents don't inundate our child with dozens of gifts, but instead, perhaps donate to her college fund (she will thank all of us later). More on some of these ideas soon.

Now, this doesn't mean that I will NEVER set foot in Anthropologie again or never order anything online again. For one, I'm not perfect and two, I don't know how anyone can resist Anthro. But what it does mean that the tide has changed and I will THINK about the purchase in advance (and maybe even wait on it for a day or two) and decide if it is something that will make our lives better (more organized, more fun, etc.)....If not, I won't be tempted to get it. I will save up $ in advance for a holiday jaunt to Anthropologie and not enter the store with a credit card.

I think this quote sums up my experience with NO spend month...

"It is not what you earn that makes you rich or poor, it is what you spend."
- David Bach, Go Green, Live Rich

How did it go for those of you who participated? I enjoyed reading some of your blog postings!

{ whole ME }

From an old issue of Body & Soul Magazine.

{ ten thoughts on whole living }

1. Make space for joy in your life; let it flow through you.
2. Life is at its most intriguing and mysterious when it's in flux.
3. Love nourishes your soul; passion ignites it.
4. Don't just shield your body from harm; protect and strengthen it from the inside out.
5. Take pleasure in others' happiness, as it will augment your own.
6. Let then season breathe new life into your home.
7. Pain accumulates over time; healing requires patience- and a soft touch.
8. Nurture your personal power; it's the source of your will.
9. Create something, anything. Learn to play again.
10. Get excited about the process, not just the outcome.

#10 really resonated with ME today. I've had lots of you email ME about NO spend month and how challenging it is and how frustrated you are about how long it will take to get your financial life in order, how long it will take to get your family out of debt, etc. What if WE start looking at whatever you are working towards as a just what it is...a process...and look at the great things we are leaning during the process. WE learning about tracking our spending; what is this process teaching ME about my values?; how can we continue to be more mindful of our spending and align it with what is important to us? How can we be patient with ourselves during this process and how can we carry forth our excitement about what participating in this process means to us TODAY?

{ week 3 - NO spend month }

Well, I've resisted buying this, this, this and this. Because, we/I don't NEED them. I'm still on track for keeping my grocery/food expenses under my goal and not wasting food this month (but it will be close!) I've been picking flowers from our garden instead of buying flowers from the Farmers Market. I bypassed a much needed pedicure. I resisted tickets to a cool concert.

It is still strange having cash on ME and not just wiping out the Credit Card. I still automatically reach for it, but it's not there!

As I mentioned before I want to be better about holding off on purchases and thinking about them before buying them - curbing those impulse buys. I'm learning to ask myself - "Is this a product that will help simplify or organize my life?"; "Is this an item that Sam needs in order to learn and be creative?"; "If I buy this will it set us back from our goals - of purchasing solar panels, traveling and paying off school loans?"; "Am I buying this because I am bored?"

Here are some great personal finance book recommendations. I've been taking this list with ME to the library lately. Right now I'm reading Living Simply with Children and The Simple Living Guide (which my husband joked with ME doesn't seem so SIMPLE since it is 444 pages long!)

Also, here are some great tips by Frugal Dad for ways to save $ during a slow economy.

How is No Spend Month coming for all of you?

{ spend smart. live rich. }

I think this statement by Suze Orman really was what got ME started on the path to better money management.

"Money is a teacher. One of the primary ways you learn who you are is through your money: how you make it, spend it, share it, save it, open your hands to it or block its flow."

A lot of you have asked if Dave Ramsey was my financial guru so to speak. He isn't. However, I would definitely recommend you read his book, it will certainly inspire you to become debt free and look at money in a different way. Simple Mom also has a great overview of his 6 step plan to Debt-free Living. I have read a lot of financial books recently - some by Suze Orman, Dave Ramsey and David Bach. The books that I thought fit ME the best and really hit home with ME were:

Your Money or Your Life
Smart Women Finish Rich
Smart Couples Finish Rich
Women & Money

A lot of you asked, why do you care how much money you spend - you seem to have plenty of it? Well...Without disclosing our ENTIRE personal lives on this blog or copies of our tax returns :-), I will say we can do better. We are very lucky to have 2 successful businesses, a beautiful home that has appreciated over what we purchased it for, little debt in the grand scheme of things and money to pay the bills and travel. Having said all of that (and being very grateful for that list), we aren't very good at saving. We are however very good at traveling and Sam at the age of 4 has been to more countries than either Will or I had until we were in our 20's.

We are after 4 things with our enhanced focus on saving more and spending less.

1) Spending less on s%*t we don't need (new home furnishings when the ones we have are great, new mt. bikes when the ones we have work fine, etc) and using that money for other enjoyments and pleasure - mainly travel. Finding that balance between saving for the future & having great LIFE experiences (now, not later) is a goal of ours.

2) Spending less in order to save more for the future. We don't want to work until we are 65. Retiring early doesn't just happen magically and since neither of us have a trust fund to retire on, we need to SAVE for this grand early retirement plan of ours.

3) Spending less in order to have less stuff - Less stuff to deal with, take care of, put away, etc. After spending the last 10 years bringing MORE stuff into our lives (cars, bikes, trailers, books, furniture, kitchen appliances, art, paintings, etc.) we want to spend the next 10 downsizing. We are on a mission to de-clutter and part with anything that isn't useful or wanted in our home.

4) And last, but not least, to teach Sam that $ does not in fact grow on trees. :-)

{ NO spend month }

So, July is officially {NO spend month} here in OUR household. This means ME. Since Will never buys anything and Sam can't yet!

I NEVER carry cash (no point in mugging ME) but I decided to experiment and withdraw cash to pay for groceries each week (within my budget) and pay for gas with our business credit card and put my personal Credit Card AWAY. Hide it. Far, far away. And see if I could survive a MONTH with NO CREDIT CARD and no frivolous purchases (lattes, clothes, etsy art, ebay purchases, Target trips, etc). So, here it goes....Wish ME luck. Here is the spreadsheet I will be using to track my purchases.

Others have attempted this before and some do this every July. How much $$ could you SAVE each month if you didn't buy S%&t you don't need? Could you use this $ saved to put towards paying off debt or save for an upcoming vacation?

If you'd like to join in on NO Spend Month, take the button from the sidebar and GO for it. Let ME know how it goes.

** A lot of you have questions about NO Spend Month - I will get back to you in a different post later this week.