Two years on ....

Last reviewed my budget at the end of 2009 and think it's timely that I review and see if I have made any further improvements as I 'battle' with myself when it comes to money :)

5 things that I was proud of in 2009 ...

1. Travel budget - I am happy to report that I do have a healthy travel budget as I put a side a small sum each month for when I do travel (usually middle and end of year). To date, all travel expenditure comes from this budget and I didn't have to tap on my other budget for that. So that will continue as the amount put aside seems to work. For 2012, what I have done on top of this, is set up an ad hoc project fund. This year, I have set myself a travel goal and for this project, I have allocated an amount that I need to raise. So for 10 months, I will need to put a certain sum aside. After the 10 months, the money can be reassigned for other purposes.
2. Reworking the budget - I have realised this will be something that I will need to constantly do with changing circumstances. There is no such thing as a fixed budget for me. At the end of every month, a do a mini review to see if any minor tweaking needed. For the major reshuffling, it will be done every six monthly.
3. 6 months reserve - I did not understand before how anyone would be thrilled to see the numbers change (increase rather than decrease) each time they update their bank passbook. But since I manage to put aside some savings, I get that same thrill each time I update my passbook. I know it's old school to be update passbooks when I can easily see what I have when I do online banking but it just doesn't feel the same. I have no idea why. What I have done instead is set a yearly target for myself (e.g. 10k increase each year) and when I get any bonuses, that will go straight to this account. Seems to work for me ....
4. Fun savings - I started with the fives (where I put five dollar notes that I get as change aside as savings), then I started with them gold coins (one dollar coins) and now I have also put aside fifty cent coins into another coin banks. I seem to have more coin banks then I have coins!! Three at work for the gold coins and one currently for my fifty cent coins. Wonder what's next ...
5. Zero debt - Am glad to share that I have managed to maintain a zero debt for my credit cards. They all get paid at the end of the month. Tremendous satisfaction when that happens. And I may at times need to readjust my monthly budget to ensure that I maintain zero debt and it also means a little tighter for my fixed expenses ... but it has to be done.

What about the three things I said I could do better? Have I managed to do that? Let's see ...

1. Pay myself first - I wanted to put aside 20% of my salary to pay myself. This money should go into my 'reserves fund' but somehow, I am still not able to do this because I have set up different 'funds' for permanent or ad hoc expenses. This is definitely something that I need to rethink ... wish I had an expert to help me out here on this.
2. Shop uncontrollably - it's in my DNA I swear. I must admit that it wasn't as bad as it was before and I still have to tap on my reserves fund to pay off the bill but I made sure to repay the 'loan' to self asap. I rather have a loan from me than the bank. Last year, I placed a 'bag ban' on myself. I am a bag lady and I love my handbags. Because of the ban, I had hoped that I would be able to save some money. Did that happen? Nope. I ended buying other equally expensive items like jewelry instead. I realised that I can't deprive myself of shopping because it brings me extreme pleasure so instead will have to ensure that I spend when I have the funds - that means saving up for what I want. Tuff one there.
3. Budget control - yup, still have problems trying to stick to some of the items on my budget especially for food and 'miscellaneous'. Have re-tweaked my budget and will continue to do that.

Looks like I still have quite a bit of work to do. Hmm, what about goals for 2012 (on top of those three stated above)? Definitely something for me to think about ....