Making Money in the midst of the Greek crisis.

This is a heart- warming story about how some Greeks are surviving hard times by setting up a community currency.



The market stall at the end of the story which works on the community barter system makes everyone feel very valued.

Working with a cash budget (repost)

Over the years we have tried many different methods for controlling our spending and working on a budget. By far the most successful method for us is to work in cash. I have worked out what we need each week and I withdraw that amount of money.

The following are our ' cash categories'.

Groceries

Fuel

Entertainment

Christmas

Holidays

Birthdays

Scarlet Ribbon ( clothing shoes etc)

Kids Banking

You can see in the photo that I use resealable plastic bags with the category and the amount written on it. Each week I go to the bank or post office and I have a little card in my wallet that says " 3x $50, 4 x $10 etc and get the exact breakdown. When I come home I give the cash to our young sons and they go through and put the amounts into the bags. Then, when we want to do something like hire a DVD or buy a present etc, we just go to the appropriate bag.

Having the money in cash is great for a couple of reasons. When you have cash in your wallet you are much more careful about spending it. My sons have also learnt the value of money because they control it. We are also empowered by the fact that we have money in advance for needs that may arise.

I call one category 'scarlet ribbon' because of the proverbs 31 woman who has no fear for her household for when the winter snows come her household is clothed in scarlet. It is a very old proverb but one that has always stuck with me.

I have also calculated how much we require for bills. You can do this by looking at what your bills are over a year and dividing the amount by 52 or 26 depending on when you get paid. Then I transfer that amount into an account we use for bill paying.

So.... what do you do when you finally sit down and add it all up and the results are frightening ? When I did this the first time I was totally shocked at our living expenses. Son number one was about 12 months old and I was faced with the prospect of going back to work. I was a school teacher then and was going back to work just two days per week. I hated the thought of it! So, we sat down and worked through everything in a huge amount of detail. I called it my " Plug the holes audit". By this, I meant that I thought the ship ( our house) would sink by the little holes that were in it, not the gaping big holes. So I set about saving money on little things, $2 here, $1 there. I changed phone plans, shopped for cheaper insurance, worked out a price book to track specials and calculate unit pricing, worked a cash budget etc etc. The results were amazing and I gave up teaching at the end of that year.

I often hear people talking about how difficult it is to make ends meet ( while they are watching pay TV and smoking and eating take away food). My answer is to be totally honest with yourself and live within your means. Take control of your money so it doesn't control you. It is such a wonderful feeling to jump in the car and go for a holiday with the freedom of knowing that you have the cash for it all and you won't have to face the credit card bill when the holiday is over.

If you can't be bothered with the hassle of micro-managing it all then you will need to be happy with staying in debt and having no money and having lots of stress. The choice is yours to make, so which path will you choose ?

Should We All Be More Frugal ?

Recently I have been thinking more and more about the instability of our lifestyles and the way that we are set up as a modern society to live.

If you tune in to television or magazine advertising they will have you believe that everything is wonderful. It has never been better! 'Live for today', you hear them say....'go ahead, your deserve it'.......'you only live once'....... Pay tomorrow.... interest free...

I look around and see a very different story. I see people wondering why 'everyone else' seems to have it so easy when they are doing it tough. I see people who just completely block their financial circumstances and live from credit card to credit card and keep refinancing their blues away.

I have really started to sit up and take notice because I see more and more people whose lives have been turned around by such a simple event that pulls the rug out from underneath them.

I have seen friends go through a separation and divorce, the death of a spouse who was way too young, a job loss for the only income earner in the family, serious illness which turns a family upside down and people wiped out through once in 150 year floods.

We all subconsciously believe that it will 'never happen to us', but I am sure people who have been through a change like this have thought exactly that.

Do you think it is prudent to tighten our belts in the name of securing a solid emergency fund ? How many of us could truly survive for six months if our current income source dried up ? If your income stopped tomorrow, how prepared would you feel ?

As you know, I am always using 'times gone by' as a reference point when it comes to being frugal, living green or living more simply. Perhaps because of the instability of the times, people from older generations always put money from good times away for times when they may not be as good. They stood by the traditional wisdom of saving for a rainy day.

Are our times today any more stable today than what they were back then ? Does easy credit disguise society's true position ? I am not sure, I can only judge it by what I see, hear and read around the community and in the blogosphere.

Why suspicion is.....yes.

This Home Made Life

I have really enjoyed the last few days. I have been busy baking, making and gardening up a storm.

Today I came to realise how 'normal' these things are for us now.

On Friday I made a huge batch of washing powder. As I was grating up the soap I watched "Harp in The South" on my laptop. This is a beautiful Australian story about a poor family living in Surrey Hills Sydney in the 1940s. As I was grating away I felt like Olivia Walton making butter on the front porch while Grandma knitted!

Friday night is pizza night and we do it so often now that we can slap together a batch of beautiful half plain/ half wholemeal with the toppings that each person wants before you can even find the number of your local delivery boy!

On Saturday we made fettuccine that was so damn yummy I had a dream about it and could have easily made some for breakfast on Sunday! Because we have our own eggs, this fresh and tasty pasta only cost us 27 cents to feed the four of us !!!

Sunday was of course the Sunday roast and the weekly apple pie to go with it.

I also managed to plant some garlic, lettuce, onions and carrots.

Soon I will make another batch of homemade soap and this time I would like to have a go at making a liquid hand soap.

I am loving this home made life.