Money

I have put off writing this follow-up to my original No Spend September blog post for too long. Why? Because finances are overwhelming and kind of scary.

I was also just avoiding the inevitable. Ignorance is bliss, and I was quite content being in the dark about our finances.

My colleagues suggested that I compare No Spend September to my spending during the previous months so I could see how much we weren’t spending in September. Well, I did it. It took over 8 hours of solid Excel spreadsheet work and getting logged out of my bank accounts multiple times, but it’s done. And to be honest, I almost broke down. It hurts to actually see how much you’re spending on things like take-out, fast food, clothing and home stuff. It hurts even more when you can’t even remember what most of the things you bought were. Clearly, we bought them (they’re on our credit card statements after all). But do I have any idea what I actually got in exchange for my money? Nope, not a clue.

Sigh.

Full disclosure: we failed.

At least I feel like we failed because we spent more than we wanted to in September.

We went on a short trip to Montana in which we ate at some local restaurants and forgot to bring essentials like pillows, a toothbrush and toothpaste. I forgot to cancel Netflix for the month.  We got a flat tire and had to pay a small amount to get it looked at and patched up. Scott had a whole bunch of automatic charges that he didn’t even know about or had completely forgotten about (some phone apps charging him monthly as well as some music producing programs that also charge monthly), which means he accidentally overshot his $100 budget for the month and spent a total of $300. I got a parking ticket. Scott was unable to find rides to work on two occasions which means that he had to take Ubers.

Okay. Here we go. I feel SUPER vulnerable and kind of ashamed to post this, but I think it’s necessary in order to show you where we were at, and why I had a gut feeling that it was necessary for us to do a no spend month (even though, as I said earlier, I was completely in the dark about our finances and didn’t actually have a clue how much we were really spending).

The Results

See? It’s bad! Especially the three previous months… in August we spent almost $600 (!!!) at restaurants. And we have nothing to show for it (except a few extra pounds probably). Also notice how we spent less money on groceries in September than the previous months, even though we only ate out during our two-day vacation. This is apparently what happens when you’re actually being careful about spending money and making sure that you eat all the groceries you buy (and not buying groceries with good intentions of using them and then just ordering pizza instead).

Obviously this chart doesn’t include everything. I have omitted our mortgage payments, condo fees, life insurance, car/home insurance, and utilities including cell phones and internet. These costs stay the same every month and there was really no point in including them.

I feel like I need to justify some of our purchases from the past four months, so I want to give y’all a bit of a rundown on what exactly we were spending our money on.

Pets

Pet insurance premiums for both of our dogs costs $111.21 per month, which is all we spent on the “pets” category in September!

In case you’re wondering why we spent so much money during the previous months, we had just got our new dog, Leia, in June. We took her and Charlie for vet check-ups in July and discovered that Leia had some health concerns. In August we had to pay $600 for Leia to receive a heart ultrasound to take a look at a heart murmur. We also had to buy dog food in August which cost over $100 for a big bag (but thankfully it lasts over 2 months).

Hotels/Campgrounds

We stayed one night at a KOA campground in Great Falls, Montana on the Labour Day long weekend. KOAs are pretty expensive to begin with, and after the horrible USD to CAD exchange rate, it ended up costing us $61.70.

Restaurants & Fast Food

I made it pretty clear in my initial No Spend September blog post that we were going on a trip and that one of my favourite parts of going on vacation is checking out the local restaurants! During our two days in Montana, we spent $151.83 CAD at restaurants (again, the horrible exchange rate did not help and jacked up the prices 30% on our credit card statement). Scott was also given a $100 budget to spend on whatever he wanted, so it looks like he ended up spending $42 of that at restaurants.

As for the previous months… I DON’T EVEN KNOW YOU GUYS. Clearly Scott and I like our McDonalds breakfast sandwiches, Tim Horton’s lattes, and pizza delivery. If you had asked me last month if we ate out too much, I would’ve said, “Yeah I guess we eat out quite a bit, but not too much. It’s not like we’re blowing all our money at restaurants or anything.” It’s pretty obvious that I had not taken a good solid look at the state of our finances.

Gifts

I’m pretty darn proud of that we spent no money on gifts in September since we even went to a wedding! I ended up making a gift using only materials from around my house! Click here to check out a pic of the final result on my Instagram.

Clothing/Home

We spent $10.70 at Target because we forgot to bring pillows on our camping trip. I also bought a used kitchen table for $80 (again, this was stated as one of the month’s exceptions in my original blog post).

In August, I bought faux wood blinds for all of our windows ($225). I bought, like, $40 of clothes at Goodwill. Scott also bought new work shoes somewhere in there. As for the rest of the money spent on clothing and home stuff during the previous months… I honestly have no idea what that money was spent on. I HATE the feeling of not having a clue what I actually bought. If I can’t remember what I bought less than three months later, then clearly it wasn’t that important and probably shouldn’t have been bought in the first place.

Scott’s Music/Game Stuff

In case you didn’t know, my husband has a side hustle and runs a recording studio in our basement. He records bands and then mixes and masters their music. Did you know that plug-ins (A.K.A., the VSCO / Instagram filters of the sound world) are REALLLLLLY expensive? Yeah, neither did I until I saw how much Scott has been spending on them. Gear rentals from Long and McQuade are also super expensive. So are the online courses he takes in order to fine tune his mixing/mastering craft. It also doesn’t help that he bought a new Xbox One in June.

As you can see, he spent a lot less on music stuff during September, however, he definitely overshot his $100 budget. This is because a software he uses was charging him a monthly fee of $60 (we have since remedied this situation and paid $350 for an entire year to use the software). He also subscribes to a monthly online course and he bought a plug-in that was on sale for $26.  Unfortunately, he was also paying $8 each month for a music related phone app that he totally forgot about and hasn’t used in months (this has since been cancelled).

Groceries

Did you know that the average Canadian spends $200 on groceries per person per month? That amount is even higher ($240) for Albertans. We definitely didn’t exceed that amount in September, so I guess that’s something to be proud of! YAY US! Check out this article to read more about Canadian grocery spending stats.

Gas

In September, we went on a road trip to Montana which is likely why we spent so much on gas. In June we drove to Saskatchewan and in August to British Columbia. The only month we didn’t go on any road trips was July, which also happens to be the only month in which we spent a somewhat normal amount on gas.

Car Maintenance

We got a flat tire in September. Thank goodness all of our tires are warrantied, but we still had to pay $13 for them to balance the tire once they patched it up.

We spent so much on car maintenance in August because we renewed our car registration for the year, got an oil change, and had to get some repairs done.

Ubers

We are a one car family. One or two days per week I start work at 9:00 am while Scott starts at 2:00 pm. Thanks to awesome friends and family members, he is usually able to find rides to work when he starts a lot later in the day. However, sometimes he simply can’t find anyone to drive him and must take an Uber to get to work (we basically live in the middle of nowhere and public transit isn’t really an option). It costs between $20 and $25 per trip and he had to do this twice in September. Thankfully, two times is better than the 3-5 times the previous three months!

Personal Care

We spent NOTHING on personal care (basically esthetic stuff) in September. Instead of paying $30 for a haircut, Scott got our brother-in-law to cut his hair for free. I didn’t pay a visit to Sally Beauty last month to buy dye or toner for my hair. Instead I sucked it up and lived with my obvious roots and brassy blonde.

We spent so much on personal care in July because I got some new makeup and skincare products. Scott also  got a haircut and bought some hair product from the barber.

Entertainment

We spent a total of $8.99 on entertainment in September because I forgot to cancel Netflix. They basically charge you as soon as the month starts, so that was kind of unfortunate. Thankfully, I did remember to cancel my Audible subscription! Unlike previous months, we didn’t go see any movies at the theatre and we didn’t purchase any concert tickets.

Miscellaneous

I got a $50 ticket for parking too close to a fire hydrant (ugh). Scott was also paying $8 per month for a photo editing and graphic design service that he forgot he signed up for.

Banking/Credit Card Fees

Every time we send an e-transfer, our bank charges us $1. This is the only thing that our bank charges us for, so I really can’t complain, but it does add up. We made 3 e-transfers in June, 4 in July and 4 in August. We were also dinged hardcore in July for accidentally missing the date to pay our credit card balance in full the previous month (by ONE day. Ughhhhh.) I honestly wouldn’t have even noticed this fee if I hadn’t have added up every single transaction. This is the exact reason why you should not do as I do. Please (a) read your credit card statements and (b) pay off your credit card in full each month. Your bank is rich enough and doesn’t need any more of your hard-earned money.

So technically we failed, but…

We realized A LOT about our spending habits.

First, we realized that we were spending wayyy too much on things we truly didn’t need. We realized we were paying far less attention to our financial situation than we should have been. We realized that we truly didn’t have a clue what we were doing when it came to finances. Finally, we realized that due to reckless spending, we were much further away from some of our financial goals than we thought.

Instead of us controlling our money, our money was controlling us.

Most importantly, we learned that we needed to implement a budget.

We are now using Dave Ramsey’s website and app called Every Dollar (www.everydollar.com). This month I have literally been inputting EVERY SINGLE THING we spend money on into the app. It is super easy to use and totally makes sense to me. It makes you budget every single penny you make in the month. The name comes from the following Dave Ramsey quote:

Get on a budget. We recommend a zero based budget. Spend your whole paycheck on paper before the month begins. Give every dollar a name. Every dollar has a predestination.     -Dave Ramsey

Since actually following a budget, we now know how much we have to spend in a certain category and  where exactly our money is going. I can’t tell you how much this has improved my anxiety toward our finances. We are now saving 10% of our income (hopefully gonna increase that amount to 15% next month).

Instead of going into panic mode every time an unexpected expense comes up, I now know that we have to shift our budget a little bit. For example, this month (October), we had to buy winter tires ($500) and will have to pay for our dog’s dental surgery (quoted at $850). I wanted to buy new winter boots and new kitchen chairs for our kitchen table this month; however, looking at our budget, it’s clear that we couldn’t afford those items after these other expensive purchases that have come up. Therefore, these items were nixed until next month, at least.

I have one final Dave Ramsey quote to end this blog post. It sums up exactly how I feel about my No Spend September challenge and what it allowed me to learn about our spending habits:

I don’t want to walk across hot coals because it is fun, but if I can be shown how a short, painful walk will do away with the lifetime of worry, frustration, stress, and fear that being constantly broke brings me, then bring on the hot coals.     -Dave Ramsey

Oh, and click here if you want to read what my husband has to say about No Spend September.

Until next time,

“So September was a big challenge. That was the point, I guess, but I think that I ended up having a harder time than Cathie with the whole thing, even though she was the one limiting herself considerably. I grew up in a home where I wanted for nothing really. If we wanted something, we would just buy it. My parents were price-conscious to a degree: hunting for sales and doing large bulk Costco purchases that would last for a long time, things like that. I’ve definitely had that mindset of “if you need (read: want) something, just go and buy it”; whereas Cathie grew up in a home where most things were purchased second-hand, donated, or sought to be on sale exclusively. I think that this has led to the two mindsets co-existing in our marriage where there has never been significant friction, but both methods definitely could not co-exist long term.

I’m extremely thankful that Cathie sought out this challenge as it really made me more aware of what I’m doing with money and where it’s going. I do believe that, at the end of the day, she will always be more money conscious than I will be. And I DO think that’s important in a relationship, to have the two mindsets that are present. Both will push the other person a little towards their side to experience a healthy balance. For example, I have a friend whose father was impaired by an accident and although he saved money his whole life, he will never be able to enjoy what he built and saved. I also know people who didn’t save a cent and will have to work until they die. Neither scenario is ideal, but I think it goes to show that we all land in the middle of those two lines in life. As much as I have talked about balance, however, I do not believe that we were living a balanced financial life. My viewpoint was leading the forefront with our finances and it wasn’t setting us on the path for success.

I ended up over-spending on my end by about $200. I have no idea how Cathie pulled off this challenge so well. It’s crazy to think that even though I spent $300, we spent significantly less money on things like eating out, restaurants, and entertainment. This challenge also made me think about what I value most and where I really want to put my money. I’d typically think about 1-2 “large purchases” and overlook 10-15 small purchases that add up to an even larger amount than one of those “large purchases”.

This challenge prepared us for some unforeseen vet costs that have come up and helped us make a financial plan for the rest of the year. Cathie and I have both downloaded the EveryDollar app. She’s taking the reigns on entering in the data, but I do have it on my phone so I can see the direction we’re headed and be aware of what we’re able to do within a month period. I think that it’s quite helpful to see everything laid out in a colourful app like that. You’re more inclined to buy into the ideology and make the changes necessary to see improvement.

I think one of the biggest eye-openers were the things that showed up on our statement on a monthly basis that I didn’t realize were there. I was being double charged for my cell phone insurance and I was being charged monthly for some graphics software that Cathie and I already had a shared annual account on. We also noticed that I was spending more money on certain services that I use for home recording than I needed to. There are certain programs that I use 3-5 times a week and I was paying for it via their month-to-month subscription model. We were able to save nearly $200 US a year by switching this to an annual payment.

All in all, I think that this challenge was very healthy and interesting for us. It really made me realize how much money I was wasting that I could have easily put elsewhere to serve our lives better. Whether that was additional recording items, mortgage payments, or investments. We’ll be implementing the spending money budget of $100 every month at this point in order to really get ahead financially. I’m excited to see where things go!”

– Scott

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Click here to check out my original No Spend September challenge blog post and here to see the results.

Happy September everyone!

I have decided to do a new challenge for myself this month. As you may recall, last October I played the Mins game and ended up donating/trashing 465 items in a single month.

My new challenge: No Spend September.

The inspiration for this challenge comes from reading The Year of Less by Cait Flanders this past month. Cait was able to resist take-out coffees, fast food, and buying anything new (other than items she had previously anticipated purchasing) for an entire year. Her challenge totally inspired me and made me think, “if she can do it for a whole year then surely I can do it for a measly month!”

Additionally, our credit card is the highest it’s ever been due to some unforeseen pet expenses. We recently adopted a new dog in June and when we took her in for a routine checkup, we discovered that she needed a whole bunch of rotten teeth removed, and also required an ultrasound to take a look at a heart murmur. All of these veterinary trips = really expensive and really difficult for a person like me, who desires to always have a credit card balance of zero.

So here we are. No Spend September. Is it gonna be hard? Heck yes. Do I think it will be worth it? Absolutely, because the best way to save money is to not spend it to begin with.

Without further ado, here is a list of items that I CAN purchase (AKA the essentials):

• Gas
• Groceries (food from grocery stores only)
• Mortgage, utilities, condo fees (I wish I could include these in my no-buy list)
• Other various bills (mostly just different types of insurance)

And here is the list of things I CAN’T buy:

• Food and drinks from any restaurants, including fast food joints, liquor stores or coffee shops (see ya in October Timmy’s)
• Clothing
• Household items
• Cosmetics or hygiene items (unless I am simply replacing something that I’ve run out of)

Additional things I anticipate needing to buy and have already fit into our budget:

• A dining table. Ours is scratched to death – literally not fixable because it’s a cheap IKEA tabletop made of particle board – and it decided that it wanted to permanently tattoo the design of a plastic Walmart bag onto the top of it (yes, seriously…don’t put grocery bags on glossy white tables from IKEA). I found a steal of a deal on a secondhand one for $80, and asking the seller to hold off selling it until October so I can purchase it just isn’t realistic and would also make me sound kinda crazy. Therefore, I will be buying it next week.

• Restaurants and coffee shops for September 2nd and 3rd. Scott and I are road tripping down to Montana for a day, and one of my favourite parts of going on vacations is checking out the local restaurants and cafes. Sorry No Spend September, but a girl’s gotta eat and support the locals down in Great Falls, Montana! (On that note, if you have any good restaurant/cafe suggestions in Great Falls, let me know in the comments below!)

I should also note that my husband Scott has decided not to fully participate in the No Spend September challenge. HOWEVER, he has agreed to a spending budget of only $100 on non-essentials for the entire month. For a guy who loves his Tim Horton’s lattes, McDonald’s hot chocolates, and Long & McQuade equipment rentals, I think this is an awesome first step. The money has already been placed in his separate account and he can spend it on basically whatever he wants as long as he doesn’t exceed $100.

Okay, so now that I’ve told you the basics of what No Spend September entails, it’s time to get started!  I will be periodically filling you in with any updates, including successes, challenges, and slipups (hopefully none of those). Make sure you check out my Instagram to follow along and let me know if you’ve ever done a challenge like this. Or even better, join me and make September a no spending month for you too!

Forget sale price. Everything is 100% off when you don’t buy it. – Joshua Fields Millburn

UPDATE: September 9, 2018

Since people keep asking me how this challenge is going with concerned looks on their faces, I thought I would give you all a bit of an update! There’s no need to be concerned – it’s actually going really great! With the exception of September 2-3, we haven’t spent a cent on anything except groceries and our regular bills.

On September 2-3, we went on a short trip to Montana and checked out some local Great Falls restaurants. These expenses were exempt from the challenge (read above) because I wanted to check out some local restaurants and coffee shops.

• Total amount spent on food/drinks at restaurants and coffee shops in Montana = $151.83 CAD

We camped while we were there; unfortunately, I accidentally forgot a couple of necessities including pillows, toothpaste, and my toothbrush. We had to buy pillows at Target (the cheapest ones were $3.99 each x 2 = $7.98 USD) and I bought a toothbrush and some toothpaste at Dollar Tree for a grand total of $2.00 USD.

• Total amount spent on necessities I forgot (pillows, a toothbrush and toothpaste) in Montana = $13.39 CAD

Obviously, we’ve spent a little more on gas in the past 9 days as we had to drive to Great Falls, and then back to Calgary the following day. I’m guessing we drove approximately 1200 KM (750 miles) in just two days. I also drive at least 65 KM Monday to Friday as it’s a 32.5 KM commute from home to work, which definitely adds up.

• Total amount spent on gas in the past 9 days = $246.82 CAD

In the past 9 days, we have spent a lot more on groceries than I thought we would. Instead of doing one or two big grocery trips, we’ve made several little trips to the grocery store in order to buy items for certain recipes. This is probably not the best way to save money on groceries, but I think this might be the best way to avoid wasting food?! I dunno, but if you have any money saving grocery tips, send them my way! However, I’m not too upset because we spent almost the same amount on food from restaurants in only 2 days!

• Total amount spent on groceries in the past 9 days = $165.68 CAD

Scott might have been a little upset with his $100 limit… Only three days after beginning the challenge, one of his favourite bands announced that they were coming to town. Tickets for a meet and greet package plus seeing the band cost $249 CAD. Obviously, he really doesn’t want to pass up on this opportunity, so we made a deal: he can buy the tickets with any money he makes from selling some of his old stuff. He has a bike and some music gear that’s just been sitting in our basement for years. I’m totally okay with this deal because he gets to see his fave band, and I get more junk out of the house! WIN-WIN MUCH?!

Additionally, my sis-in-law asked if I would join her team on a 5KM charity walk in a couple of weeks. The cost to join was $25. At first, I thought I wouldn’t be able to do it… Then I realized I could if I returned some pants that I bought in August and hadn’t yet worn. I returned the pants (which  also happened to cost $25) and was able to join the walk! Technically, I spent the money in August, so it doesn’t count toward my No Spend September challenge… At least that’s what I’m telling myself!

Hope you are all having a lovely September so far!