Mike and I are good at managing money. The problem was that we never really had much to play around with! This year proves a little bit different and we are starting to put things in place that should make things easier for us.
Last year Mike put together our yearly budget. He collected all of our bills from the previous year, documented when they were roughly due and how much they were. He worked out our incomes, regular spending such as home loan repayment, buying petrol, weekly spending money, etc. Then he threw it all into a spreadsheet with fancy adding and taking aways and formulas until he knew exactly where our money was going. It was a godsend.
After our trip to Queensland recently, we decided we should spread our wings a bit further afield and have decided to travel next to New Zealand. A few travel brochures showed us we would need a lot more money that we anticipated and so part one of our plan was born.
Today was our biannual visit to the dentist, and he confirmed that both kids would need orthodontic work in a few years. We contacted our health insurance company and asked what the cost and benefits would be to upgrade to orthodontic cover. While the fortnightly payment doesn’t seem like much, we worked out the cost over a few years and how much benefit we would get and how that would spread over two kids, and decided against it.
So our grand plan is to…..save!
As I said, we have never had much money spare to be able to save much, but things won’t be so lean this year. So in steps our super-organisation…finally put to good use!
Today Mike upgraded our yearly budget to the Mega Budget! (Basically just added in our new savings 😜) We are going to separate our savings into different accounts for different uses…
1. Holiday savings- the account which will receive the most money so that we can head away this time next year.
2. Orthodontic savings- the account which will receive the least amount of money because it’s a long-term goal. We will keep adding to this account each year for the next several years and possibly take some and put it in a term deposit to get some real interest adding to the balance.
3. General Savings-we’ve never had any kind of savings before. When things went wrong in the past (which they always do) we’ve had to rely on our parents to help us out and pay them back, or just put things off until we could afford them. With this account, hopefully we will have that flexibility to pay for emergencies as they arise, or use it for little splurges.
I’m very excited about our new plan. Hopefully it will work exactly as we think it will, and we won’t need to drag money away from the allotted areas.
I’ll keep you posted!