Jenelle, Borrowing Money From Peter To Pay Paul:

In all honesty, Jenelle probably didn’t need to purchase my book. She seems to already have her budget in really good shape. However, even the best budgeters need some inspiration and focus sometimes, to keep them on course.I know that I still read budgeting books to pick up ideas that I might have missed or to give me focus. This is the email, as she sent it to me.

Dear Adam,
 
I have just received my first newsletter, and loved it..

I received your book about a week ago, after having read the review in the Sunday Mail.

I have been a single parent for about 3 years now. Things have been tough and it took a while to get back on my feet, divorce and associated costs, selling the family home etc, all took their toll. I have recently been diagnosed with Rheumatoid Arthritis, triggered by the stress of the divorce, and although it is not yet under control, we are trying new medications, hoping that this new one will work, but I have already spent over $600 on medications, and well over $1800 in medical specialists and tests, X-rays, etc.  All adds to costs that I can’t predict.

I have bought my own house and have had it now for about 12 months. I thought I was doing reasonably well financially, I kept majority of my receipts for things already.

Reading the 2nd chapter (I think it was), with the questions and answers about what you do in different situations, I scored 113, which showed I was in the top category. I was surprised, but pleased. I am currently on the 4th chapter now, and I can see improvements that I can make already. I keep receipts for purchases of goods etc, but hadn’t thought about things like the odd coffee or such, where you don’t get a receipt. I have already started writing them down on paper to put in my box.

You are very right Adam, there is always money missing at the end of the month that is hard to account for. I have been noticing that in the last few months I have been borrowing money from my emergency fund to pay for other things, I do replace it when I get paid, but the point is that I shouldn’t have to borrow it in the first place. The book has made me think more realistically about where my money is going. So I am very excited to be able to change some habits, and improve others to get back on track...and beyond.

I am grateful I only have one credit card, with a small limit, plus a few thousand in my account, as an emergency ‘buffer’ (thankfully, suggested by my mortgage broker in setting up my home loan, and being in an offset account it is working for me at the same time). I treat this balance as my new ZERO level. I try at all costs not to go below that, as you never know when you might need it. It did go below by a couple of hundred dollars 2 months ago due to unexpected car repairs, but last month I crawled back to my  threshold. I was so pleased, and determined not to let it happen again.

Once again, I can’t thank you enough for your brilliant book, and I hope to report more success in the coming months.

Thanks Jenelle

I sent some questions to Jenelle and she was happy to answer for you the readers.

Jenelle, in the email you talked about having some health problems. How have you been handling these problems moneywise?
That has probably been part of the reason for “borrowing money from Peter to pay Paul” so to speak.

Do you think had you not been such a good saver these health problems would be worse with the extra pressure to come up with the cash?
Absolutely. Stress can make the condition much worse, so anything I can do to alleviate stress is in my favour, and everyone needs extra cash flow.

You’re a good saver already? Tell me why you purchased the book and have you changed anything since starting to read it?
I love reading as much as I can about saving money, as being a single parent, I only have my income to rely on, so I am doing everything I can to boost it. I have already begun to keep track of incidental spending where you don’t always get a receipt, like a coffee, cake, or small things like that. It is so easy to forget about the odd few dollars here and there, until you start adding them up. I was very surprised, and have started cutting back already.

Tell me a saving tip that might not be in the book? How much do you think you save a year by doing this?
One thing I have found, is that shampoo and conditioner can be relatively expensive grocery items. To make them go further, I wait till the bottle is ¾ full, then top them back up with water and mix. They are quite often very thick anyway, so they still work just as well, and last longer. I also bought a dispenser for them in the shower, it dispenses smaller amounts, and you don’t pour it from the bottle into your wet hand, and drop it on the floor and it goes straight down the drain. I have done the same thing with body wash too. If you buy them in bulk to start with, then it is also cheaper. A saving estimate would be $40-60.

Tell me something that you do to increase you offence or attack?
I collect empty cans and bottles and recycle them, currently have several hundred dollars planning towards a holiday in the future. I also try to make muffins or healthy slices for our morning tea or the kid’s recess during the week, as a batch of homemade goods is so much cheaper than buying them.

If you could give advice to people who haven’t read the book what would you say?
Read it definitely, there is always something more you can learn about saving.

What’s your opinion on the world financial crisis? Has it affected you personally or your work?
Things have been worse overseas, for sure. It hasn’t affected me too much personally, as I started to cut back on luxuries early on, and I think everyone’s workplace has suffered to a degree, but at my work we still have our jobs so we have been lucky.

Is there any story you can tell us of people not appreciating your saving ways?
A few people I know buy morning tea and lunch every day, so there goes around $15 per day. Add that up and they are probably spending around $3500 per year, wasted, all for not being bothered to spend a few minutes extra in the mornings to make their lunch etc.

What did you like most about the book?
The ease of reading. Very simple to understand, and it was very hard to put down, I wanted to get started with its suggestions straight away.

What did you like least about the book?
The worksheets were a little small.

Any plans to get rid of your credit card in the future?
No, as sometimes I need that backup, I don’t know how much medical bills will be from time to time, and don’t like to carry excess cash with me just for that, it is too easy to spend. Easier to use the card, and then pay it off. I always pay the entire amount each month, and don’t use it if I don’t have the means to pay it off. I have refused to get a second one, too tempting to use it, and I get worried when I read about people that use one to pay off another, no one wins in that situation.

Do you think that more people in the future will start saving and stop using credit cards?
I would like to think so, or at least use them wisely.

Do you know anybody who has done this?
Yes, someone I worked with years ago, would not buy anything if he didn’t have the cash to pay for it. Would never consider interest free terms or anything like that, cash or nothing.

Thanks Jenelle. We wish you luck in the future and hope your health problems are soon under control..