Jenelle, She Is Back With A Update:

In the August newsletter of 2009 we met Jenelle. Jenelle had purchased my book due to a variety of problems. To go back to the August newsletter click on this link to read Jenelle’s first interview CLICK HERE.

After nearly a year we are re-interviewing Jenelle to see how she is going.

OK Jenelle last time we spoke you said you were robbing Peter to pay Paul. Tell me about your situation now 10 months on?
That is a very rare occurrence now. I have set aside a small portion of each pay to go into my standby account, and I do it straight away so it is not missed, that is the key. Then you can see what you have left to work with.

You were always a good saver even before reading the book; are you better now 10 months on?
I have set aside an amount for petrol for my car each fortnight, and at the end of each fortnight, any leftover cash goes towards my ‘personal wish list’, of things I need, like say extra storage cupboards in my laundry etc. As that money had already been set aside for petrol, if I was careful enough to have something left, then it is my treat to save it. The wish list items are not allowed to be paid by any other means, so if I have a few weeks of heavy travelling costs, then it will just have to take me longer. It helps me be very conscious of where the money goes.

You informed me that you have $5000 in your standby account. How does it feel knowing you have money sitting there?
It is a fantastic, reassuring feeling. I am however, very reluctant to use it, as I know how much effort went into getting it there in the first place. So that is also a big help for me to not dip into it without thinking seriously about it first.

Last time we asked if you had gotten rid of your credit card you said “No”. Have you had a change of heart? And if not, do you think about getting rid of it in the future if you are more financially stable?
I still have it. I am extremely strict with it though. I have not paid interest on it the entire time I have had it that is rule number 1; it must be paid off fully each month.

 Rule 2, it only gets used if it is absolutely necessary, and if at all possible, I transfer money onto it within 24 hours to cover the expense, then there are no hidden surprises when the statement comes in. (If the money isn’t in the account to cover it, then I don’t buy it!!). Not everyone can work that way, so if it is too much of a temptation, then I would say, don’t have one.

If you could go back in time to your 21st birthday and talk to yourself about money what would you say?
I would definitely say, make yourself put some money into a savings, or standby account every pay, without fail, and make it become a habit, you will appreciate it so much in years to come. The stress of living from one pay to another is dreadful. Don’t start out that way, make it happen now.

Last time we spoke you said the world financial crisis had no impact on you directly, has this changed in the last 10 months?
Only slightly. The general cost of living has gone up considerably, as have the utility costs, and I do find that it is harder to make the same amount of money go the same distance.

Last time you gave a hint and tip on how to make shampoo last longer. Have you got any other tips you could share with the readers?
Oh, which one has helped me the most? Ah yes, a simple one, but critical I believe. Never ever, do the grocery shopping without a list. I used to do that myself 10 months ago, confident that I could remember all I needed. Many times, I would get home, and have double the amount of things I went for, or would discover that I already had the item, so I had wasted money that could have been used elsewhere. If I don’t have a list with me, I don’t hit the shops. By doing this, I have reduced my weekly shopping by $50 per week, that is $200 per month, and so therefore $2400 per year, which is a huge saving by anyone’s standing.

I have also taken Adam’s theory of buying non perishable things in bulk and storing them. For example, if anyone could see the number of toilet rolls in my garage they would really laugh. (I still do myself, but don’t tell anyone.)  Buying bulk has almost become an obsession for me, but a good one I think.

Also, if I make a batch of muffins or something like that, I put at least a third in portion sizes in the freezer ready for school lunches. It saves me having to think what to give them if I’m in a rush.

Going forward what do you want to work on to get your finances in better shape?
I want to increase my standby account more, even double it, that would be great. I can tighten my belt in a few more places yet, and am working on that one step at a time. I have even started putting extra amounts directly onto my mortgage, I would love to have that paid off within 10 years, 15 would be acceptable, but 10 is my ultimate aim. Even just a little a week makes an impact. I have graphed my mortgage payments, and the loan amount, and it is really good to have something visual to look at, it makes it more real, and is a good incentive to keep working at it.

Have you any weaknesses that you need to cut out?
Yes, I am sure we all do. Mine would have to be a bought coffee for morning tea. I have however, been working on it, and have managed to cut it down to only 2 per week now. I just have the last bit to go now. It is hard to let go of it completely, but I am determined to do it.

A question for you though Adam, now you have been doing this for some years now, do you still find you have to keep to a monthly budget rigidly, or have you been doing it long enough to know what you need to do, and can afford to ‘wing it’?  I would love to know, and I am sure other readers would also love to know.

Yes I still keep a rigid monthly budget. Like any good business, you need to know where every dollar is being spent. I believe if you start to “wing it” you can get sloppy. But you do get better at it as time goes by.

Thanks for your time Jenelle. Best of luck trying to double your standby money.