Saturday, December 24, 2011
Christmas Eve ... and we're getting ready for our New Year's resolution a la Gail Vaz-Oxlade
Last Sunday, the three of us took root on the couch, and just lazed all day long, watching a marathon of the TV show "Til Debt Do Us Part" hosted by Gail Vaz-Oxlade.
We wondered how she figured out all the numbers, and how to divide up the variable expenses into the five "Magic Jars". By afternoon, I was surfing the 'net and discovered all of the helpful resources, and interactive worksheets on Gail's website. By mid week, I had a 'hold' placed on her books at the local library, and last night, Hubby and I went to bed, each with a book. Today we came up with a budget, and a plan. It will likely take the rest of the week to get completely organized, but we're so excited!
Turns out, we're not in bad shape at all -- I thought maybe we were paying way too much for housing, because rent it so high here. But Gail says we can spend up to 35% of our net income on housing ( and utilities, insurance, etc.) and we're actually under that figure. Transportation costs should be up to 15%. Since I don't have to pay for parking, and my car only gets taken out of the parkade once or twice a week, we are well under that as well.
Starting January 1st, we start our "cash only" lifestyle.