Sometimes I get goose-bumps when I realise that this month marks the 5^th birthday of our company – Budget Bitch Pty Ltd.

We’ve come a fair way since those beginnings and if we’d had a bucket list of what we wanted to achieve when we started, we’d be looking at quite a few ticks.

Of course, nothing ever happens without the support of our many and varied customers. We like to think of them as family

Last year when we turned 4 we gave away a mountain of gifts. The birthday celebration took place on one day.

This year we’re doing it again and have decided that for every person who books an appointment in February – we’ll give them a gift. Yes, that’s right – we’re letting the celebration last for the whole month! (thank goodness we’ve been budgeting for this since last year)

I wanted to give everybody a holiday. Now, apart from the other director yelling at me and it costing me more money than I have, it wouldn’t be at all helpful to anybody.

You see, the things we have to work towards and save our money for, are truly the things we value the most. It’s the prize we reward ourselves with for achieving our goal.

And then I was reminded about that Chinese proverb –

“Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime”

That’s made me realise that if I gave you a holiday you wouldn’t love or appreciate it as much as the one I taught you to budget for.

So that’s why we’re not including holidays in the birthday gifts this year.

 

Carmel McCartin – Budget Bitch

And don’t forget – (The views expressed in this blog are the personal opinions of the author. Don’t rely on them to make financial decisions, you have to make up your own mind. If you don’t like the content – then either stop reading or send me an email)

 

I went to the local branch of my bank the other day. I had no option, as I had a cheque that needed to be deposited.

With the introduction of online banking, I find that rarely do I need to enter a bank. It’s so easy to log onto the internet in the comfort of my home and sort out what needs to be paid and how to manage my money.

Thank goodness I can do that because the 2 or 3 times each year that I have to attend the bank building in person, I find the service and experience deteriorates each time.

When I visited a few months ago, I discovered that my bank has now introduced a numbered ticket system. Possibly that’s good; if there’s a huge unruly crowd of people who are milling about and shouting at the bank staff to hurry up. Taking a number and waiting in order for your turn would perhaps quell the riotous crowd.

The day I was there, I was alone. There were no other customers. Not realising the now-correct protocol, I stepped up to the counter. But the teller wouldn’t serve me till I had gone back, got a number and waited for that number to be called.

*rolls eyes*

Like the well disciplined diva that I am – I did as I was ‘told’.

This time when I went to the bank I knew what to do – I took a number and waited to be called. The girl behind the glass was busy so I had to bide my time. With nobody to talk to (the bank was empty again) I was able to test that old theory; if-you-stare-at-them-long-enough-they-have-to-look-up-soon.

My number was called and I stepped up to the counter. “Hello XXXX” I said brightly “how are you today?”  Thank goodness I could see her name clearly, I wouldn’t want to be rude and not acknowledge that.

The bank staff member raised her eyes from the computer and mumbled – “which account do you want this in?”

I gave her the answer and she lowered her eyes back to the screen in front of her.  Then she handed back my account card – the one with my name on – gave me a paper receipt and turned back to her computer.

For one brief moment I wanted to say “if you can’t read or pronounce my name that’s ok. I won’t mind if you call me number 155.”

I didn’t; because I don’t think she would have got it. But I now understand why I was the only customer in the bank.

And as I walked away I thought to myself –

Oh, Barbara from Bank World  - you still have a lot to learn to improve your customer service skills!

 

Carmel McCartin – Budget Bitch

And don’t forget – (The views expressed in this blog are the personal opinions of the author. Don’t rely on them to make financial decisions, you have to make up your own mind. If you don’t like the content – then either stop reading or send me an email)

Today I saw a toaster advertised for $449. It was marked down from $499 which the ad said was a 10% discount. Big Deal!

It was brought to my attention by a tweet. Yes, somebody on Twitter was considering the purchase of this but couldn’t decide whether they should buy it as a moving house gift for themselves, or just pack the one they already own.

$449 for a toaster! Even with a discount, that’s ludicrous!

A television is cheaper than that nowadays and although this particular toaster had glass sides so that you could watch your toast cooking, at least with a TV you can change channels.

Sometimes I think we’re living in a world that’s gone mad.

The price of that toaster is a week’s wages for somebody. It’s also the same price as some weekly household rentals or an average airfare from Sydney to Melbourne – 4 times. If you’re a single old aged pensioner, it’s more than the weekly allowance.

How many people can afford to spend that amount on something to heat up and brown their bread?

And if you wish to tell me that you would buy it because you want it and affordability doesn’t come into it – then I’m afraid that you’ve got a misplaced sense of what’s important and what is not.

Obviously other people won’t tell you this, but I will –

Save your money for more crucial things in your life.  And Don’t Be So Ridiculous!

 

Carmel McCartin – Budget Bitch

And don’t forget – (The views expressed in this blog are the personal opinions of the author. Don’t rely on them to make financial decisions, you have to make up your own mind. If you don’t like the content – then either stop reading or send me an email)

So here it is – New Year’s Eve. And by this time tomorrow we’ll be sitting back contemplating the first few hours of 2012.  (Of course, there are some of us who will be nursing a more fragile state of mind)

Wouldn’t it be great if we had a crystal ball and could see what this year held for us all?

Of course, at this time of year there is much talk about New Year resolutions. Have you made any? Did you keep the ones you made last time?

Do you make different ones every year or do you trot out the tired old ones that don’t seem to make it past the first few weeks?

According to recent polls, more than 33% of the population resolves to pay off their credit cards each year.

But figures from the Reserve Bank of Australia show that mortgage, credit card and personal loans are up 71% from just 5 years ago. One wonders how much of this debt will actually be repaid this year?

There are also reports showing that personal debt now totals 100.4% of Australia’s annual GDP – one of the highest ratios in the developed world. That’s a lot of debt!

It’s a great idea to plan some goals for the coming year but if your list is very long you may find that you struggle to achieve too many of them.

Sometimes it’s easier to just have three or four resolutions. Make a plan that works and you will find that you can conquer them all.

There will be some slip-ups along the way but if you stick to your plan you’ll get the results that you want.

Don’t forget to make a family resolution this year also. After all, they’re the important people who make our lives worthwhile and achieving your goal will be made easier if you enlist their help.

A financial goal is also a great way to start the New Year. If you’ve got your budget under control – keep up the good work!

Perhaps it’s time to reassess where it’s heading. If you don’t have one, then maybe it’s time to take some responsibility for your finances and get them into better shape.

Isn’t it funny how people spend so much money on gym memberships to get their body trim and taut, but never give a thought to spending anything on getting their finances into better condition?

Making your body look and feel better is a work in progress and sometimes, to get the results that you want, you could end up spending money on the pursuit for the rest of your life.

Getting your finances to look and feel better is also a work in progress. But, unlike the gym, it only takes one appointment with Budget Bitch to learn how to get the results you want for the rest of your life.

It’s not expensive – call me!

 

Carmel McCartin – Budget Bitch

And don’t forget – (The views expressed in this blog are the personal opinions of the author. Don’t rely on them to make financial decisions, you have to make up your own mind. If you don’t like the content – then either stop reading or send me an email)

Imagine this scenario – it’s December and you’re away from home, staying in a hotel in Adelaide. Your brother (who lives there) calls, and invites you to join his family for their Christmas celebration. All their family will be together this weekend, so they’re celebrating early. Being part of their family, they’d love you to come. Its 24 hours away.

My brother has five kids who are all grown and have partners; there are some grandkids plus other ‘family’ members. The total is 20, and there will be an exchange of gifts at some point during the day.

Now this is not part of my Christmas plans and I am totally unprepared to partake in the gift giving ritual. If there had been more time, I would have been able to put some extra money aside throughout the year. I would also have had time to organise something special for each of them.

So here I am, 24 hours to prepare and not only is there a shortage of funds but I am also lacking inspiration in the gift buying department. Let’s face it – even 20 tins of biscuits is going to cost at least $100.

And then (at 2am) it hit me! The answer came from my subconscious while I slept. I knew exactly what to do.

I couldn’t hit the shopping centre till lunch hour. Into Rundle Mall, and I quickly found a large ‘discount’ shop. So far so good!

Grabbing a shopping basket, I began the next part of my mission – to buy 20 gifts at a cost no more than $2 each. Nothing should be too obviously gender-specific; but to liven the party I chose some purely male and female gifts. (men’s razors, girly soaps; that sort of thing)

I helped myself to the pile of free store catalogues to use as wrapping paper, (they’re colourful and end up in the same place as gift wrap) then spent $2 for a large ‘Christmassy ‘bag to carry everything. Back at the hotel I borrowed scissors and sticky-tape from the reception desk and soon everything was wrapped.

Family gatherings are great fun and this was no exception. The joy of spending time with people I love, but am separated from by time and distance, was immeasurable. Just to be with them was my own personal Christmas treat.

And then it was “time for the gifts”. My brother took me aside, quietly apologised for the short notice and explained that nobody would be upset that I had nothing for them all. Just being together would be enough.

He was right – it was, but I was ready to surprise them. When all the presents had been opened there remained, under the tree, a large bag that nobody had seen before.

With a flourish I announced that it was time for “Aunty Carmel’s Bag of Christmas Cheer”. Everybody would get a ‘lucky-dip’ and if they didn’t like their gift – too bad. They could always exchange with somebody else later.

What a hoot! We played a trivia game with a dip in the bag being the prize; everybody was a winner. An hour later – we’re still laughing and swapping gifts. Even Grandma got into the spirit, swapping screwdrivers for incense sticks.

It was the best $42 I’ve ever spent and it’s a new tradition; with family members competing to prove that they ‘need’ to be the Christmas Cheer Bag person.

You know – sometimes I think we’ve forgotten that Christmas memories are about people and events – the size and cost of the gifts are insignificant.

 

Carmel McCartin – Budget Bitch

And don’t forget – (The views expressed in this blog are the personal opinions of the author. Don’t rely on them to make financial decisions, you have to make up your own mind. If you don’t like the content – then either stop reading or send me an email)

You’ve all heard about the need for routine check-ups. If it’s not your doctor telling you, then it’s your friends and family.

But how often have you thought about having a review of your personal finances?

While you possibly think you don’t need one – ask yourself these questions and you might just find that the time has come for a financial check-up.

• Do you have financial goals? (are they in writing? do they include deadlines?)

• Is your debt under control? Do you pay off your credit cards each month?

• Have you started a savings account? Do you understand what this is?

• Have you started a retirement fund yet? If you have, will your current rate of savings give you enough money to meet your future retirement needs?

• Do you need to start a savings program to meet the cost requirements of your children’s education? If you have, will your current savings rate be enough – taking into account inflation and rising tuition costs?

• Do you have a budget? If you do, when was the last time you had it reviewed? If you don’t, then do you intend to allow your finances to drift aimlessly?

• When do you intend to get your money working as hard as you do?

If you are not satisfied with your answers to any of these questions, then you’d better contact us today!

Together, we can get your finances back into tip-top condition, with a healthier bank balance.

 

Carmel McCartin – Budget Bitch

And don’t forget – (The views expressed in this blog are the personal opinions of the author. Don’t rely on them to make financial decisions, you have to make up your own mind. If you don’t like the content – then either stop reading or send me an email)

Dear B.B.

What is your best tip for keeping the budget routine? I can’t count the number of times I set up a budget – sometimes on a spread-sheet; sometimes using the envelope system. I keep it on track for a bit then it all seems to dwindle and I get stuck again. Do you have a hot tip for slackers like me?

from K.H.

Response

In many ways, starting a budget is like starting a diet.

We have good intentions, but fall off the wagon soon after. If your budget is not workable then the fallout will come sooner. You have to understand that you can’t spend more than you earn. Remind yourself that it’s a change of lifestyle.

A kick in the pants from a Budget Bitch from time to time, also helps you stay on track.

 

Dear B.B.

We’re having an argument in our house.

My husband has recently inherited a small sum of money. He wants to clear our credit card debt and then put the leftover amount into a savings account.

I think it’s wrong to use that money to get out of debt. I’d like to put all of it into a high interest savings account. We never have anything in the bank, and it would be nice to see it earning some money for us.

from Anon

Response

It doesn’t make sense to have a large sum of money in your savings account if you owe a large amount on your credit card. Any interest you earn from the ‘savings’ money will be negated by the high interest you’re paying on the balance of your credit card.

I can understand that you feel guilty for using an inheritance to clear your debt but your husband is using a common-sense approach.

A sensible budget plan will help you to stop racking up debt. If you’ve been able to pay the interest on your credit card, then you should be able to add that amount to your new savings fund.

 

If you have a question you’d like answered then send it to: 

Helpme(at)BudgetBitch(dot)com(dot)au 

 

We apologise for the email address format – but it’s the only way we can stop those dirty, filty, rotten spammers from filling our inbox with unwanted spam

Dear B.B.

We currently have a taxable income below the MLS amount for the number of dependents we have, but still have private health cover (top hospital and extras family).

Do we really need private health if no MLS will be applied, and our medicare levy of 1.5% is significantly lower than our annual premiums?

From K.Mc 

Response

Your budget will be as individual as you are – because it’s all about priorities and what is important to you!

There’s no “Hard & Fast Budget Rule” about private health cover – if it’s important to you, then your budget must be adjusted to pay for it.

If your money is struggling to pay the costs – perhaps look at changing the level of cover.

Also, health funds are now paying for a diverse range of extras, many for ‘preventative’ measures. Exploring and using these possibilities will add a little more value to your private health cover.  I understand how you’re feeling – sometimes it feels like an unnecessary expense. You just have to weigh up what’s important to you and your family!

 

 

Dear B.B.

I’d love your advice on different money spending styles in a relationship.

We were meant to be camping at the moment, a nice cheap holiday. But my husband has managed to blow up my car by trying to install a 12v cable to the back. He is cranky at me because I wouldn’t then agree to driving 2 cars (we have 3 kids in carseats that don’t fit in our other car) to go on a holiday in a hotel for 3 days!! Apparently I have ruined his holidays.

‘Just put it on credit’ he says (grrr) Not to mention that fixing the car is going to cost well over what we saved for camping in the first place!! I know he doesn’t get much time off work, but I don’t want still to be paying for our 3 days away at Christmas!! HELP!!!

From M.H. 

Response

Compromise! Compromise! Compromise!

I’m sure he didn’t mean to blow up your car, just as you don’t mean to ‘ruin his holidays’. Spending time together is more important than where you do or don’t go. If money is tight – then pitch your tent in the back yard (yours or somebody else’s) and start communicating properly about why you’re doing all this, and how to make sure it never happens again.

Plan to start a ‘shit happens’ account so that there is less money stress in the future.

 

If you have a question you’d like answered then send it to: 

Helpme(at)BudgetBitch(dot)com(dot)au

 

We apologise for the email address format – but it’s the only way we can stop those dirty, filty, rotten spammers from filling our inbox with unwanted spam

 

Have you ever stood in a shop and watched while more than two people get served ahead of you? Did you wonder how on earth that happened?

Sometimes I think the whole ‘idea’ of ‘customer service’ is no more than just that – an idea. Because sometimes I think the people who are employed to serve customers may have only heard of the term and don’t have any notion on how to do that. 

Recently it happened to me so it’s no wonder that I was a bit ‘shirty’ by the time the salesperson got to me. And after observing the dress code of the people who were served ahead of me, I asked the obvious question – “if I was wearing a business suit, would you have served me faster?” The reply? – “those people have been waiting a while”.

Well, so had I – 15 minutes to be exact. And what’s more, I had watched ‘those people’ come into the shop while I waited my turn.

But this isn’t an isolated experience and it seems that too often these days we hear mutterings about the ‘lack of good service’.

A month ago I was looking for some hair accessories. I found one similar to what I wanted and took it from the shelf to examine it more closely. (I guess you do that when your eyesight dims because you’ve started to age) When the salesgirl asked if she could assist, I gave her a more specific description of what I wanted to buy.

Taking the item from my hand, she then put it back on the shelf as she told me that they didn’t stock the exact thing that I wanted.

Now, I was prepared to purchase that hair band. In fact, I had it in my hand and if the sales girl hadn’t stopped me, I would have just proceeded to the cash register and paid for it.

Obviously she didn’t want my custom. And when I explained that I had intended to buy, she looked at me blankly. She turned on her heel and left. And I did the same. No sale there!

So, right at this point in time you’d be waiting for my next line to start with “in my day…” but the cold hard fact is that there’s no such thing. ‘My day’ is now! And there’s such a myriad of things to choose from that it gets a little bit confusing. Surely we can’t be condemned for needing a little help in making a choice?

And isn’t that what ‘customer service’ is about? Helping the customer to make a decision to buy?

Of course, there are lots of sales assistants who don’t view the term ‘customer service’ as being like that of a servant. And they are more than willing to assist their customers in making an appropriate choice. In those cases they are highly skilled and well trained in the profession of making sales.

You see, these days with so many things to choose from, and so many places to buy them – it’s not always a price issue that will bring the customers back. It’s the level of customer service.

And the businesses that understand this simple rule – “forget about selling products and deliver service instead” will be well placed to weather any storm in the economy. 

So, because not everybody wants to wear a business suit to attract attention, I’ve decided to change the way I look when shopping and in need of service.

Next time I’ll go naked.

 

 

 

Carmel McCartin – Budget Bitch

And don’t forget – (The views expressed in this blog are the personal opinions of the author. Don’t rely on them to make financial decisions, you have to make up your own mind. If you don’t like the content – then either stop reading or send me an email)

In case you hadn’t noticed, the baby boomers have started to retire. By the time retirement comes they’re ‘supposed’ to have paid off their mortgages, and their debt, and have enough money saved to live comfortably for the rest of their lives.

But have they?

Unfortunately, for whatever reasons, too many of them have done too little of these actions. And they don’t want to admit they have failed, they don’t want to know… even today they bury their heads in the sand and don’t wish to face the reality that their bodies will wear out long before their mortgages are paid out and before their bank balances are large enough to stop working.

The next generations are turning up their noses at their older counterparts. And just like every generation before them – they say that they ‘will be different’ to their parents and grandparents. But will they?

Have things changed that much? What lessons have they been taught? What lessons have they learned? According to a recent survey by Rabobank it was found that almost in one in two baby boomers expect their cash to run out during retirement and almost 25% admitted that they had no savings. What sort of lesson is that!

It’s heartening to know that another survey by MasterCard shows that those aged 18-29 want to save more than any other age group.

To the Gen X and Gen Y people who think they won’t make the same mistakes as the Baby Boomers, let me ask you this –

• How much money do you have in the bank?

• How good are your savings?

• How much debt do you have?

• How many times have you gone without because you didn’t have the money?

• How many times have you saved and paid cash for something?

• Do you know how much money you need to run your household each week?

 

Here’s a tip -

 If you really want to be different – get yourself organised with a budget!

 

Carmel McCartin – Budget Bitch

Just so that you know – (The views expressed in this blog are the personal opinions of the author. Don’t rely on them to make financial decisions, you have to make up your own mind. If you don’t like the content – then either stop reading or send me an email)