Savings Milestone #4 – Marching on!

Savings milestone #4 has now come and gone. We managed to save away $965 towards our 20% home loan deposit. Although we missed our fortnightly target of $1150, saving away nearly $1000 is no small feat. Unfortunately we had two unplanned visits to the doctors (kids) and some related medical costs which ate into our savings plan.

#5

We have managed to save a total of $5,165 since we began our journey a couple of months ago. As the time passes, we are managing to save without any real impact on our standard of living. If anything, tightening the belt has brought the family closer together as we are constant coming up with free things to do together – bike rides, walks, trips to the library and park etc.

With this in mind, highlights for the fortnight included some fun days at our communal vegetable garden, clearing out the summer crops and planting for winter. Since we started our garden in January, we spend 30% less at the grocery store and are eating healthier.

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I spent a day with our son cleaning our old cars. Its amazing how a good vacuum and clean windows can make a car feel brand new. Our son is only two years old and he loves helping his father with this job.

I also got on Twitter this past fortnight to see who else shares similar goals to ours. I managed to get in touch with Kevin at Debt Free Happens whose perseverance really inspired me. I can’t wait to get in touch with others as we continue down this savings path.

Onwards to savings milestone #5!

An unexpected windfall!

Our savings for a home loan received an unexpected windfall this week. Consistent with our attempts to declutter our lives over the past 18 months, I finally decided to get rid of all my unwanted jewellery. These are items I mostly wore in my early 20s, when it was all about wearing thick chains and half a dozen dress rings to be popular. In retrospect, I wish I could have been more mature at the time, and realised I didn’t need all of these ‘style items’ to meet interesting people and have a good time. I shudder thinking at the money I blew just trying to be popular. Oh well, hindsight is a lovely thing…

…but unfortunately I was still left with all the bling bling, long after it reached its expiry date in my life. I hadn’t worn any of it in approximately 10 years, possibly even longer. So I simply collected it all (nine items), took it to a dealer and sold it all for $850. I probably could have gotten more if I sold it myself, but in all honesty, I just couldn’t be bothered advertising, and haggling with people to make a few extra dollars. The way I saw it, I was in possession of something that no longer had value in my life, that was possibly even weighing me down. So I made the most rational decision and exchanged it for cash, which has far more value in my life right now. To be honest, I feel an overwhelming sense of freedom knowing that my life became a little bit lighter.

What this means is that our savings for a home loan deposit got a big boost of $850, taking our total for the past two months to $4,200. We are really rocking now, at 7% of our way there, inching ever so closer to our $60,000 target.

Some valuable lessons:

Buying retail gold is like purchasing a new car, in the sense that it depreciates very quickly. Those who enjoy wearing gold but think frugally could find themselves unlimited bargains on the second hand market. Generally speaking, a jeweller will purchase your gold for approximately 25% of the original purchase price, and sell it on for 50%, or melt it into a new item and sell it for its full value or even more. I have nothing against wearing jewellery, but that’s just an expensive phase I grew out of long ago. If my tastes change in the future, I can always buy myself an item of gold I really like, but for now my mind if fully focused on that saving for something far more valuable.

Onwards to savings milestone #4