Progress Report #18

The biggest change this month is that DH started working again part time. We also reviewed our finances and made some changes to our goals after talking to our accountant. I'm working a lot at the moment and that's taking up most of my time. Here's the numbers:


HSBC credit card $0 $1700 paid off

Bankwest $4040  $2960 paid off

Mastercard $14,760

Mortgage $150,040

The Good
  • the HSBC card is paid off
  • almost $3000 paid off the Bankwest card
  • insurances (home, contents, cars) paid 12 months in advance $1460
The Bad
  •  three days off sick cost me $2300 income
The Ugly
  • nothing 
My goal is to try and pay off the Bankwest card completely in December, which may be a bit difficult given the Christmas break but I'll be throwing every cent I can at it. I am saying Yes to all the work I am offered at the moment so it will be another month of long hours but it's worth it at the moment to see those number coming down.

Researching to buy own office.

I've been swamped with work this week and working some very long days with another one coming up today. I have done pretty well this month considering I was off sick for three days. I will invoice about $10,000 for the month. 


I have been spending my rare spare moments researching buying my own office premises. First I worked out the general area I want to be in and I have marked this on a map. Over the last week or or so I have done a drive around of the area and found all the houses for sale. I have checked them all out online and come up with a shortlist of 7 properties to look at.

There were two main price ranges that I considered. Houses under $230,000 tend to need a bit of cosmetic work and most have 3-4 bedrooms. There is  one house in this range that was previously used as offices so it should meet all council requirements. It would be quicker to move into and need less work than the others. It has only a very small land area though. There are a couple in this price range that have large areas of land that could be developed at a later stage, but the houses would need a bit more work before use.

There are several good houses over $350,000 most with 4 bedrooms and in appear to need little work before use. But I just don't want to borrow a lot of money, and borrowing may be difficult, so I've decided to give these lovely houses a miss and opt for the lower price range.

I have gathered information on disability access requirements, heritage requirements (needed for any house over 50 years old) and zoning requirements.  Our next step is to talk to agents and find out the zoning for each of the homes. Then we will arrange inspections of the homes. I want to do all my research before approaching the bank for a loan so I go well prepared.

About the finances. Our plan is to withdraw our superannuation and set up our own super fund. The fund will purchase the office. We will need a loan to make up the difference, the smaller the better! Our super took a big hit and we have to work out when to withdraw it. We are in the process of finding our our current balances. 

Do we wait a few months and hope for some share market recovery before withdrawing our funds?

 Or do we do it sooner so that the business rent I pay, ($880 per month) plus the leased offices can be put into our own property instead of being dead money?

 If I have three offices rented out that is approx. $2640 a month, which will cover everything and personally I think this will show a better return, faster than waiting for the sharemarket to recover.

any thoughts?

Christmas planning



Well there is not long to go until Christmas and I've started to get myself organized. I am planning on spending $200 on Christmas this year, the same as last year.  I just refuse to go into debt and spend excessively. I'd rather pay off debt than pay for 'stuff' for people that they don't need. It really so much easier this year! My attitude to spending has changed since I started this blog and I just don't enjoy shopping and spending anymore.

For the first time in 30 years I won't be spending Christmas with DH as I am going down to stay at the beach with Dad for a week and taking my daughter with with me. I just don't know how many Christmases I've got left with him before he forgets who I am so I want to make the most of this one!

here's a few sites for Christmas planning and don't miss the last few links in the list.

Organized Christmas.  This site is full of Christmas organizing ideas, planners, crafts and recipes.



Expert village is a brilliant site! It is full of instructional videos showing you how to do just about anything  to do with Christmas.


Christmas Drinks: traditional, punch, cocktails and mocktails

Ideas to wrap Christmas Gifts including how to make Christmas bows

And if you are looking for some frugal gift ideas here's a post on 63 gifts for less than $10

or make your own gift vouchers and give your time or talent as a gift.

*But if you're a bit tired of all this frugality you have to check out the Neiman Marcus Christmas Book!  It takes a few moments to load but it's worth the wait! My favourites? 

Well playing a game with the Harlem Globe Trotters would be pretty cool at $110,000.

I really  love this crocodile satchel for $3,600.

But if I could choose anything out of the catalogue it would be this fantastic gift of a thoroughbred racing stable for a cool $10,000,000. I love the races and have often said if I had endless money I'd own race horses... oh well, it's nice to dream!


Gift giving and real estate

I just joined the 29 gifts in 29 days challenge after reading about it on debtfree2009's blog.  The site has some great videos of peoples experiences and ideas. I'll be starting the challenge tomorrow and I want to do it for 29 days straight as a way of finishing up the year and preparing to move out of the debt payoff stage of the journey and into the stage of creating wealth and abundance.


Each day I am spending time focusing on life after the credit cards are paid off and what it will feel like to buy my own office premises. We have started looking through the real estate ads to get and idea of what the market is like. I have chosen the area that I want my office premises in and marked it on a map. It's about 5-10 minutes from home and a few blocks off the CBD. This morning I found 7 properties in the area that could be suitable. 

I actually found my 'dream office', it is beautiful federation building with lead light windows, original wood panelling and features and views to the mountains. It has 4 bedroom 2 living areas and huge verandahs on three sides. It is only about 6 blocks from my current office. The cost is $420,ooo and it would need a coat of paint and some new floor coverings. The problem is that we will not be in a position to make an offer until May of 2009.

The other properties that would be suitable range from $200,000 to $340,000 which is more what I had in mind. We will have approx $150,000 + what we can save in the next few months to put into the purchase. At least with the drop in property prices we are buying at bargain prices!

  I have made a big list of what I am looking for. Here is the main points:
  • 4-5 bedrooms
  • no steps or easy to put ramp in
  • area for off street parking
  • meets disability access codes 
  • free standing, at least 1.2 metres from next building (fire standards)
  • quite area
  • light and airy
  • room for art /play  and creative work with kids
  • space for  cottage garden!
Now that we have decided to do this, I think about how I can pay off the debt every day! I have earned some good money online this month and I will be applying all that to the Bankwest. I also rang up a few colleagues and told them I had some room for more clients which resulted in four new clients this week and a full diary!  I will be taking two weeks holidays over Christmas instead of three. My goal is to have the credit card debt paid off by the end of January 2009 so if I seem a bit obsessive about it over the next 10 weeks bear with me! 

Snowballing!

I love online banking! I just paid $2000 off my Bankwest credit card with the click of a button. 


Geez it felt good! 


Yes Virginia...

I've been thinking this week about what I will do this year to spread a little Christmas cheer. Last year I was able to give some food and clothes to a couple of the teenage kids I worked with without them knowing it came from me and it was magic to see how excited they were.

I try and do something anonymous for someone as my way of saying thanks to whoever the people were who helped us growing up. Things were pretty difficult as a kid. I remember one year when it was really tough. At that time we pretty much lived on bread and jam (made from fallen fruit we collected) and tinned soup. I know that Mum often just ate bread and dripping and whatever food we kids left on our plates. We were known as 'the poor kids' at the school we went to at the time.

A few days before Christmas when we opened the door there were two HUGE washing baskets filled with food! I seriously can see it as clear as day just thinking about it! I was 8 years old and I just thought that Santa was amazing to have left all this early for us :) I could not understand why my mother couldn't stop crying as we were unpacking the baskets. She did a great job at keeping her difficulties from us and I really had no idea how much she struggled until I was older. Seeing those two baskets felt like we had won the lottery, I was so excited at the time!

By the time I was 12 our circumstances had improved somewhat and my mother took me shopping to make up a basket for a local family. She explained to me that that those food baskets had come at a time when she was desperate to keep our family together and that she was making a hamper every year from now and donating it. She had contacted the local social worker and got the details of a family in need. So each year I would shop with her for the hamper and as an adult I always do something at Christmas as my way of 'paying it forward'.

This week I decided what I am going to do this year. I'm sending Christmas cards and some care packages to soldiers through a wonderful organisation called Any Soldier. They distribute letters and parcels to soldiers who don't get mail from home. I visited their website and it is very simple to use, you search through the requests and then apply to get the details sent to you. Then you just follow the instructions. I chose a unit that is remote, has no showers or refrigeration. They requested mainly letters, tarps, tools, instant foods and hygiene items.

I think of those soldiers out there in the cold winter on Christmas day and it's a no brainier to send them some cards and letters for Christmas. I suppose having kids the same age as many of these young men and women really makes me feel for them. I couldn't imagine my kids that far away from home, in a war zone. I have started writing my Christmas cards so I can get them in the post next week. And in case you're wondering it's not about supporting the war ( I don't) but it is about just taking five minutes to let people know they matter.

Jack, over at Adventures in Voluntary Simplicity issued a challenge yesterday in his post 'Lets start a Revolution'. He decided to put money in envelopes along with a note and leave them at places to be found. It's a wonderful post and a great challenge to do some random acts of kindness in the lead up to Christmas. Time are tough for a lot of people right now, so little act's of kindness are even more important.

I was reminded of this letter:
By Francis P. Church, first published in The New York Sun in 1897. [See The People’s Almanac, pp. 1358–9.]

"We take pleasure in answering thus prominently the communication below, expressing at the same time our great gratification that its faithful author is numbered among the friends of The Sun:

Dear Editor—
I am 8 years old. Some of my little friends say there is no Santa Claus. Papa says, “If you see it in The Sun, it’s so.” Please tell me the truth, is there a Santa Claus?

Virginia O’Hanlon

Virginia, your little friends are wrong. They have been affected by the skepticism of a skeptical age. They do not believe except they see. They think that nothing can be which is not comprehensible by their little minds. All minds, Virginia, whether they be men’s or children’s, are little.

In this great universe of ours, man is a mere insect, an ant, in his intellect as compared with the boundless world about him, as measured by the intelligence capable of grasping the whole of truth and knowledge.

Yes, Virginia, there is a Santa Claus. He exists as certainly as love and generosity and devotion exist, and you know that they abound and give to your life its highest beauty and joy. Alas! how dreary would be the world if there were no Santa Claus!

It would be as dreary as if there were no Virginias. There would be no childlike faith then, no poetry, no romance to make tolerable this existence. We should have no enjoyment, except in sense and sight. The eternal light with which childhood fills the world would be extinguished.

Not believe in Santa Claus! You might as well not believe in fairies. You might get your papa to hire men to watch in all the chimneys on Christmas eve to catch Santa Claus, but even if you did not see Santa Claus coming down, what would that prove? Nobody sees Santa Claus, but that is no sign that there is no Santa Claus.

The most real things in the world are those that neither children nor men can see. Did you ever see fairies dancing on the lawn? Of course not, but that’s no proof that they are not there. Nobody can conceive or imagine all the wonders there are unseen and unseeable in the world.

You tear apart the baby’s rattle and see what makes the noise inside, but there is a veil covering the unseen world which not the strongest man, nor even the united strength of all the strongest men that ever lived could tear apart.

Only faith, poetry, love, romance, can push aside that curtain and view and picture the supernal beauty and glory beyond. Is it all real? Ah, Virginia, in all this world there is nothing else real and abiding.

No Santa Claus! Thank God! he lives and lives forever. A thousand years from now, Virginia, nay 10 times 10,000 years from now, he will continue to make glad the heart of childhood"

Back to work after a 3 year break.

Yesterday I paid off the HSBC card, finally! It was really exciting because the guy from the credit card company was so nice on the phone and he was excited for me instead of trying to convince me not to pay it off. It felt so good to be rid of it even though I've only had it for a couple of months.

Now I am focusing on getting rid of the Bankwest card before Christmas.

DH starts work this Wednesday. I seriously love this company for hiring him after 3 years out of work! He will be working as a part time store-man and we will be applying his entire wage to the credit cards. I haven't cooked washed or ironed for a few years now so our household routines will need to change!

I seriously had just about given up hope that he would get another job. So many applications, rejection letters take their toll after a few years. I guess the lesson is just don't give up! If you lose your job just keep on trying, it's taken three years and a lot of disappointments but he did it!

Here are some links to my series on job applications that I wrote based on work I've done helping injured people and students get jobs. It's ironic to me that I couldn't seem to help him get a job for so long while I was helping people get jobs and start their own businesses at work and getting great results!




My daughter had to reapply for own job yesterday. She was recently downgraded from permanent to casual as she was the last person to be put on full- time and now the business has been sold. Her boss is a really good boss and he is recommending her to be full time to the new owners but their are no guarantees. She is looking at moving away to get a full time job and her own place next year.

I certainly am seeing the effects of the financial crisis in my work. I am seeing a lot more people who are financially strapped as their overtime is cut and job layoffs are starting to happen. I am also seeing people who have been affected by the huge losses on the stock market. Some have borrowed heavily to invest and now are struggling. It's very sad and it's putting a lot of pressure on people and relationships. For some people the effect is severe depression and self harm. I will do a post on this later in the week.

It's a lovely rainy day here. So I'm off to do my flylady chores and then curl up and catch up on the John Adams series which I am really enjoying!

Guess what...

DH got the job!!!!!

Meez 3D avatar avatars games

** and I just paid off the HSBC card !!

Ditching Christmas functions for friends!

Thanks to ugly debtys post on ING I have been able to open more more than one savings maximiser account linked to my main bank account. Previously you couldn't have more than one for Australian bank accounts so I now have four!

Home Emergency Fund
Home Deposit (for my office premises deposit)
Holidays
Bills (so I can start paying bills annually)


I'm back to full speed at work which is really good. Invitations to lots of Christmas functions are arriving and I'm being a bit of a scrooge this year. On the one hand it's good to go to them and catch up and network with people, but on the other hand I am just trying to save every cent at the minute, we are being really careful with our money and most of these functions cost $45 -50.

I've decided to decline the invitations this year and get together with my old friends instead. Sue can't come as she is off on another overseas trip (probably on credit!). But we can get together for about $60 and I'd rather spend the money on that than a whole lot of 'networking' Christmas functions. As I get older I realise the value of my friends much more than I used to.

How is everyone else managing the end of year functions and finances?

These pics are of my office garden. It is a lovely cottage garden, filled with the scent of roses and lavender at the moment. My office window overlooks this rose garden and a view right out to the mountains in the distance.























Every day when I get to work I go out an pick fresh flowers for my ofice and the waiting room. The house just smells divine at the moment! Here's the bunch I picked yesterday.





Fast Update.

This is just a very fast update now that I am emerging from the sick bed at last! I have been working on some other projects while I was sick so I have now built my offline business website and finally launched an online income project that I have been steadily plodding away at.

Unfortunatley I can't share it with you but it should bring me a nice monthly income to add to my debt reduction efforts if it all goes as planned. My goal for that particular project is to earn an extra $500 a week by next year from it. I'll let you know how it goes.

DH has been called back for another interview which sounds promising! I think they want to clarify his injury and check it out a bit further. At least they are giving him a chance which is more than I can say for most employers. I am trying to be patient but each phone call that comes I get my hope up more and more that he might get the job.

Happily everyone is paying promptly from last months invoices so I pretty confident that the HSBC card will be gone by the end of the month and a bloody big dent will be put in the other two!

I am really hanging out for my holidays this year, Only six weeks to go!

Out of action for a week or so.

This week we all got a bad dose of a viral bug at our house and so we are all out of action. I had to cancel my clients for 3 days, ($2,300 income) so it put a dent in my plans for the start of the month. But it can't be helped and since we are all still eating fluids only (day 4 now) we are saving a lot of money on the food bill!! I am not too worried as I have plenty of work waiting for me once I'm better.


DH got called about his work trial, they want to interview him next week, I really hope he gets this!

I heart my accountant!

We have just spent over an hour at his office going over everything with a fine tooth comb and I am just really excited at the way things are working out and I couldn't wait to post this.

I can't share all the details here but we looked at a several different scenarios and crunched some numbers. Taking into account our ages and the taxation laws in Australia we have come to a decision about our new financial goals!


First things first, I will not have to pay any more tax this year!! Yeehah!! Second I will probably get between $6000 - $7000 back in tax overpayment's. What a relief! And it will all go on credit card debt.

Better than that when we reach the financial goals we have set we won't have to pay any tax for the next two years!! .... that's right...we will be boosting our wealth by using tax breaks. It will set us up for a comfortable retirement.
Here's the steps we will be taking:
  • Stop mortgage over payments immediately
  • Pay off the credit cards at gazelle intense pace or faster! (by 30/01/09)
  • Save $15- $20,000 for a deposit on my own office premises (!!!) by (15/06/09)
  • Set up self managed superannuation fund & move our current funds into it May 2009
  • The superannuation fund will buy my own office premises
  • Rent my office premises from the super fund plus tenants

There are many other benefits to owning your own business and we will be able to take a holiday each year and claim it on either DHs small business or mine. But if we can put in 18 months of hard work and frugal living then we can really turn around our financial position faster than I ever thought possible.

The figures we worked out were amazing and very motivating. We need to keep living as if we were not earning more, become even more frugal and save every cent we can.

I'm very excited and the new goals will be posted in the sidebar soon. I'll be crunching numbers with FB's budgeting system to stay motivated. It really does pay to get good advice about finances from someone who really knows the taxation system.

So my original goal to pay off my mortgage in five years is officially over.

My goal now is take control of my own financial investments by:

  • managing my own superannuation fund
  • purchasing my own office premises and
  • becoming a landlord!
  • All by June 30th 2009!

Business decisions to consider

My weekend has been really busy with end of month paperwork so not much else got done around the place. Today I have reports to write and an appointment with the accountant this afternoon to get last years tax done and discuss a few business ideas.

I have decided to put my husband on a casual wage as my admin assistant. The billing and paperwork is very time-consuming and it takes him 8-10 hours a week to keep it up to date. So he may as well get paid and keep it in the family finances! We have our fingers crossed about the job he tried out for last week as well.

When I meet with the accountant I want to discuss self managed super funds and the viability of buying my own business premises eventually. There are taxation advantages if I own my own office and hold it for a certain number of years. Then I could rent out office space to others , pay rent to myself instead of it going to someone else and develop another source of income. At the same time the property values would increase over time.

I think I need to hold the property for 10 years to avoid capital gains tax, but I will find it all out today. If I decide to go ahead we would look at buying in the next 18-24 months. To do this I would need to set up my own company which will cost me about $2000, but I need to look into it more. I have lots to think about over the next few months!



Pics from my garden

Progress Report # 17

It's been a really good month in my business! I will invoice almost $11,000 for the month, working four days a week and with one day off sick. Not all that is profit but it's one hell'uva lot more than I was making a few months ago!

Here are the balances:

HSBC credit card: $1710 $1100 paid off this card this month!
Mastercard: $14780
Bankwest: $ 7000
Mortgage: $150,230


Extra mortgage payment $666
Time saved = 6 months
Interest saved = $6910
Home EF $70
Business EF $1500

The Good
  • Business is booming
  • I raised my hourly rate to $120
  • DH's work trial went well
  • having the money to pay the big bills when they arrive
  • buying FB's spreadsheets (love 'em!)

The Bad

  • I have a problem with disability acess at one office which may cost me a gov. contract

The Ugly

  • nothing!

My main goal for November is to finally get rid of the HSBC card.