New Year, new goals and fresh start

I can't believe 2008 is almost over. I've been taking a look at many aspects of our life over the past year and I can honestly say it is a blur! Between trying to finish the basement, live life and still have time (and resources) for extra things has taken up all of my time. So, for 2009 I'm focusing on getting organized - both in the home and monetarily - and enjoying a simpler life.

Where to start? Well, I started by sitting down and creating my annual budget and workbook to get me through the next year. I know the economic picture isn't pretty right now, but we are blessed with currently stable jobs and no real debt to speak of aside from our mortgage. By my calculations, we should be able to put away $200/month into our savings after all living expenses are accounted for. This is in addition to the 15% of dh's pay going to 401K and $300/month going into college accounts. We should also be able to put $100/month into a Christmas savings for 2009. Sounds great, right?! I need to do better. Why?! Well, we are both driving cars with over 125K miles on them and we've used a huge amount of our savings to finish our basement. We're way below my comfort zone at this point.

How to remedy? Honestly, the only remedy I have is to really buckle down and spend less than I've budgeted as much as possible. I have 3 months this summer that I won't have to pay for dance or preschool - right there I could save an additional $1K if I pay savings before we spend it! I have overbudgeted in some categories in anticipation of price increases (like energy, gas, food and preschool) so until we see actual price increases I will have additional savings there. Will this help me attain my goal? Time will tell!

Which leads me to my biggest goal for 2009. My savings goal for the year is $5K. This is really ambitious, but I think I can do it if I really buckle down and focus. I won't even count what I'm about to move into savings from dh's bonus :-) This goal also does not count our tax refund for 2008 because most of that is already earmarked for basement expenditures. Seriously though, if I can make this goal I will be able to breathe a large sigh of relief. And in these tough economic times, we could all use a bit of relief!

Join me as I embark on this adventure - savings, frugality, sanity and a simpler life. I hope to update my progress each week when I sit down to balance our budget - the good, the bad and the down right ugly! My first update will be after the new year! Until then... Happy 2009!