Friday, 2 May 2008

Frugal Fridays - Ignore New Income

I am returning to work on Monday after being off for almost 11 months. I do contract work and so do not work at a permanent job. I took the summer and fall off to move and renovate my home and then started looking for work in January. It has been a slow year so far.

So ...what do I mean by ignore new income? I had put money aside to take the time off - it has started to get tight and I tighten my belt accordingly. I have been making do without any major sacrifices.

This new job only pays once a month at the end of the month, so I really won't even have an income until next month - but what I plan to do, is to continue as I have been doing. I am going to keep my belt tight. I am going to continue to make do.

I have a credit card to pay off and I have to stash away money for next year's income taxes, plus I want to build up my savings that I have nearly depleted, so I am going to transfer all the money but what I need for bills, into separate accounts. Out of sight - out of mind.

You can do the same with any raises you incur during the year - you are not used to having it, so you won't miss it.

For more great frugal ideas, stop by Biblical Womanhood.


mommanator said...

would be exciting to have unexpected income LOL Retirement was difficult to get used to at first, thankfully I decided to put some away when working. Every time I got a raise I put that much into my account and really didnt miss it as you say.
Wish I had done earlier in my career, so would now have much more, however God will provide!

Laura said...

Great plan! You're very smart!! Hope you enjoy returning to work!