It's been awhile since we had any
Money Posts up here - and that's really because not too much is happening. Without a house sale, our finances remain stable {mostly}. To help prep us for some long term travel, and get us in the green for some savings... we're working on a couple of things financially:
1. Saving Money!
You're
shocked, I know. People who want to travel are
saving money? Yep.
We started putting all of our extra cash into a {previously empty} savings account. All the money we got from Kijiji + Amazon + Extra stuff is in there. Our tax return $$ will go in there too. We've sold around $3000 of stuff {includes some things from the
business that we owned} and will get almost $5000 in a tax refund. That puts us at almost $8000 saved - and we're still paying our mortgage! We're already 53% of the way to our 'Have this or don't get on a Plane' amount.
2. Automated Finance
Here's where the robots come in. After reading lots of money blogs/advice {Like
This or
This or
This} I'm trying to shift my finances to be fully automated. Here's why:
- I'm lazy/disorganized and I don't want to forget bills or pay them late
- I
know I'm going to pay all my bills, so why not have the robots do it for me?
- Bills still get paid if you're not around the internet
- It keeps my budgeting organized and on track - bazinga!
I've already gone into my love for
Mint {budgeting software} and it's awesome auto-categorizing, so this is just taking it one step further:
- I called VISA to have the minimum payments for both of our credit cards come out of our account on the 15th. I can still make additonal payments on my own towards the principle {which we are still paying down}, but we'll never forget to pay.
- My cell phone bill & utilities bills do the same, except the full payment for these come out every month
- A small RRSP savings transfer is made at the end of the month
- Property taxes & condo fees are paid automatically on a monthly basis
I still do all of our savings transfers & principle payments on credit cards manually. Mint categorizes all of my spending, so I can then review all of the payments that have been made and calculate my excess income for savings/debt repayment.
For our rental property:
- Post-dated cheques from my renters were given to the bank to be deposited on the 1st of the month
- Mortgage, utilities, condo fees, property taxes all come out automatically
This system is completely automated and I do nothing to it but monitor it monthly.
This has been a great way for us to ensure that all of our bills were being prioritized and paid immediately, as well as itemized and monitored on Mint. It leaves us with a clear number at the end of every month that we can use towards our goals. Currently, we're using this excess money to pay down debt through a
snowball approach {
Try this Snowball Calculator!}, and using a
snowflake approach to our savings - it will adjust alongside our situation.
**Final Note** Budgeting as a couple can be a nightmare sometimes. Everyone has different views and hangups about money, and secrecy is the kryptonite of a good budget. COMMUNICATION is KEY! We need to have 'budget meetings' monthly to review the status of our accounts, our goals and spending ;) **
How do you budget your money? If you are living internationally - how do you manage your money abroad? Money and budgets are a huge portion of travel prep, so we're glad to be taking some steps to move forward... now we just have to get rid of this house and mortgage!!
