With Dave's unemployment finally coming in, we were able to reach our initial Baby Step 3 emergency fund goal last week! And as usual with us, Murphy showed up to help us celebrate. More car trouble. But this time, it was an inexpensive fix - a new battery for the van. Since we are still in the midst of our "storm cloud", we are going to continue adding to the emergency fund for now. Then we'll move onto increasing retirement and college savings and paying extra on our mortgage (which Dave is really excited about!). So that's where we currently are on our journey of financial peace and freedom - sorta, kinda, not really finished with Baby Step 3 :)
Money Saving Mom - Monthly Financial Check Up
Showing posts with label Dave Ramsey. Show all posts
Showing posts with label Dave Ramsey. Show all posts
Friday, September 18, 2009
Sunday, August 23, 2009
Finally!
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Our first tomatoes of the season - finally!It's been 9 weeks since Dave was let go from his job. Last week he finally received his first unemployment benefit check. It was a lump sum check for the last 6 weeks. We transferred it straight to the emergency fund and now we are $600 shy of the initial Baby Step 3 goal we had set before everything was put on hold! Thus far, we haven't needed to use the emergency fund and I'm hoping we can keep that up.
Tuesday, July 14, 2009
Thriving With Job Loss
As I mentioned in my last monthly financial check-up, my husband was in danger of losing his job. As expected, he was let go shortly afterwards. Thank God for our Total Money Makeover plan! We had not yet reached our Baby Step 3 emergency fund savings goal. However, we have enough in place to fall back on if needed. With our budget still running somewhat lean from those Baby Step 2 days of paying off debt, we should be able to pay our monthly expenses on my salary alone. Our plan is to continue to grow the emergency fund with anything Dave receives in unemployment benefits (whenever those start - there's a 4-8 week delay).
Despite my initial fears at the prospect of Dave losing his job, I now rejoice in the blessings this change has brought our way. The biggest blessing of course has been having Dave home more and less stressed! And Dave is very excited about having the opportunity now to explore new career paths. We don't know what the future holds. But we have hope and faith in God that all things will work according to His plan.
Money Saving Mom - Monthly Financial Check-Up
Despite my initial fears at the prospect of Dave losing his job, I now rejoice in the blessings this change has brought our way. The biggest blessing of course has been having Dave home more and less stressed! And Dave is very excited about having the opportunity now to explore new career paths. We don't know what the future holds. But we have hope and faith in God that all things will work according to His plan.
Money Saving Mom - Monthly Financial Check-Up
Friday, June 12, 2009
Baby Step 3 Update
It's been awhile since I've provided an update on our Total Money Makeover goals. We are currently on Baby Step 3 (building an emergency fund representing 3 - 6 months of expenses). To date, we are over halfway to our target number and should reach our savings goal by the end of July! BUT with storm clouds on the horizon surrounding Dave's job, we might find ourselves in budget crisis mode. I would like to reach our goal before anything happens, but am thankful for what we have set aside already. It certainly puts us in a much better situation than we would have been pre-Dave Ramsey, when a job loss would have most certainly sent us into credit card debt.
One of the challenges we are facing in Baby Step 3 is maintaining the focus on our larger goals. We've become a bit relaxed in our spending in some areas, particularly eating out. It has left me wondering if we (mainly I) would have the discipline necessary to get us through any impending rough patch. It's easy to say I would cut back on affordable luxuries, but could I really do it? Would I be able to rise to the occasion with a spirit of frugality and resourcefulness?
Money Saving Mom - Monthly Financial Check Up
One of the challenges we are facing in Baby Step 3 is maintaining the focus on our larger goals. We've become a bit relaxed in our spending in some areas, particularly eating out. It has left me wondering if we (mainly I) would have the discipline necessary to get us through any impending rough patch. It's easy to say I would cut back on affordable luxuries, but could I really do it? Would I be able to rise to the occasion with a spirit of frugality and resourcefulness?
Money Saving Mom - Monthly Financial Check Up
Thursday, April 23, 2009
Town Hall For Hope - TONIGHT!
Dave Ramsey's Town Hall for Hope is tonight!
Click here to find a venue in your area hosting the event
Or watch coverage on Fox Business Network beginning at 7 PM EST
Monday, March 30, 2009
Friday, March 13, 2009
Telling Ourselves No
At the beginning of February, we finally kicked our last debt (excluding our mortgage) to the curb and began Baby Step 3 of Dave Ramsey's Total Money Makeover! Our goal for Baby Step 3 is to build up an emergency fund in the range of 3-6 months of our expenses. In light of the current economic conditions, I can't think of a better step towards financial peace.
What we are learning in this step is how to tell ourselves as Dave Ramsey jokes, the ancient word that is hardly used these days, NO! Just as we paid off our last debt, our dishwasher died. Using the emergency fund was out of the question since we both agreed it wasn't a true emergency. But we did go back and forth for a few days about whether or not we should use our anticipated February snowball towards buying a new dishwasher. That would mean of course delaying the start of Baby Step 3. When we (actually Dave came to this conclusion quickly, it took me some weeks of whining about not having a working dishwasher to come to this conclusion) compared having a fancy, new dishwasher to building up our emergency fund, which would keep us in our home, food on the table and lights and heat on in the event of job loss or other emergency, there was just no question the dishwasher would have to wait!
Our latest challenge has us currently weighing getting needed exterior repairs done to the house or waiting until our savings is fully funded. The exterior of our 30+ year old house is starting to look shabby - but without the chic! A small owl has even taken residence in a bird hole in the side of the house (I think it's kind of cute in a way, Dave is not so amused!). We've been quoted a great price that might not be available later in the year as business picks up. And I love the idea of using a small company based in town, which uses crew guys from surrounding neighborhoods and frequents local businesses for supplies. BUT...can we really afford to delay building up our emergency fund?
Get Your Finances In Line in 2009 Monthly Check Up - Money Saving Mom
What we are learning in this step is how to tell ourselves as Dave Ramsey jokes, the ancient word that is hardly used these days, NO! Just as we paid off our last debt, our dishwasher died. Using the emergency fund was out of the question since we both agreed it wasn't a true emergency. But we did go back and forth for a few days about whether or not we should use our anticipated February snowball towards buying a new dishwasher. That would mean of course delaying the start of Baby Step 3. When we (actually Dave came to this conclusion quickly, it took me some weeks of whining about not having a working dishwasher to come to this conclusion) compared having a fancy, new dishwasher to building up our emergency fund, which would keep us in our home, food on the table and lights and heat on in the event of job loss or other emergency, there was just no question the dishwasher would have to wait!
Our latest challenge has us currently weighing getting needed exterior repairs done to the house or waiting until our savings is fully funded. The exterior of our 30+ year old house is starting to look shabby - but without the chic! A small owl has even taken residence in a bird hole in the side of the house (I think it's kind of cute in a way, Dave is not so amused!). We've been quoted a great price that might not be available later in the year as business picks up. And I love the idea of using a small company based in town, which uses crew guys from surrounding neighborhoods and frequents local businesses for supplies. BUT...can we really afford to delay building up our emergency fund?
Get Your Finances In Line in 2009 Monthly Check Up - Money Saving Mom
Tuesday, March 3, 2009
Did I?!?
Did I just turn down 4 tickets to this Sunday's race at Atlanta Motor Speedway? Site of Kyle Busch's first win with the #18 team in 2008? Where he led a race high 173 laps and gave Toyota it's first win in NASCAR's top division?!?
Okay Mary Ellen, breathe. Think Dave Ramsey, think financial peace, think weird. Live like no one else, so later you get to live like no one else.
Okay Mary Ellen, breathe. Think Dave Ramsey, think financial peace, think weird. Live like no one else, so later you get to live like no one else.
Monday, February 2, 2009
DEBT FREE!
Praise be to God!
I am so happy to be able to finally write that after 11 months and a little over $16k in debt paid, we are DEBT FREE! From where we were financially to where we are now, so many things have changed. When we started our Total Money Makeover at the beginning of last year, we were just barely making it each month. Our income had decreased but our credit card bill was growing at what seemed to be an uncontrollable rate. There were some months, we had less than $20 in our checking account after the bills had been paid. Then in December 2007, this princess finally awoke from her fantasy world. I had long held onto the belief that we were doing fine because unlike most we knew, we had no student loans hanging over our heads, no outstanding credit card debt, we paid our credit card bill off in full each month and had phenomenal credit scores. But my castle built on plastic came crumbling down when December's credit card bill came in at over $1000. And there was no money to pay it off in full. About that time, I started watching Dave Ramsey on Fox Business Network and liked what I heard - FREEDOM. Not get rich quick, but peace built on a solid foundation. I used a gift card I received as a secret Santa gift at work and bought a copy of Total Money Makeover. And as the saying goes, the rest is history!
Many years before we had even heard of Dave Ramsey, my husband tried to implement many of the things the Total Money Makeover teaches - living on a budget, cash envelopes, paying extra on debt and NO credit cards. I told him it was absolutely not feasible to live without a credit card in this world. How would we buy gas for our cars? How would we book a hotel room or rent a car (which we did very little of at the time)? What if there was an emergency? And I told him I was absolutely not giving up my Old Navy card! After that discussion (read argument), I heard this small voice speak to my heart. And it said clearly, "You place more faith in this card than you do Me". I knew the voice. And it's conviction cut deep. And sadly at that time, I chose to ignore it.
But in January 2008, I began working with my husband to finally implement those things we should have done before. And even though our income had decreased, miraculously our money seemed to multiple. It went further than it had before. And there was extra at the end of the month to do something we hadn't done in awhile, pay off debt! I firmly believe that once we started handling our finances in accordance to God's will for us, He touched it, blessed it and multiplied it much like He did with the fish and the loaves!
Thank you God for your provisions! And thank you for a loving and patient husband!
I am so happy to be able to finally write that after 11 months and a little over $16k in debt paid, we are DEBT FREE! From where we were financially to where we are now, so many things have changed. When we started our Total Money Makeover at the beginning of last year, we were just barely making it each month. Our income had decreased but our credit card bill was growing at what seemed to be an uncontrollable rate. There were some months, we had less than $20 in our checking account after the bills had been paid. Then in December 2007, this princess finally awoke from her fantasy world. I had long held onto the belief that we were doing fine because unlike most we knew, we had no student loans hanging over our heads, no outstanding credit card debt, we paid our credit card bill off in full each month and had phenomenal credit scores. But my castle built on plastic came crumbling down when December's credit card bill came in at over $1000. And there was no money to pay it off in full. About that time, I started watching Dave Ramsey on Fox Business Network and liked what I heard - FREEDOM. Not get rich quick, but peace built on a solid foundation. I used a gift card I received as a secret Santa gift at work and bought a copy of Total Money Makeover. And as the saying goes, the rest is history!
Many years before we had even heard of Dave Ramsey, my husband tried to implement many of the things the Total Money Makeover teaches - living on a budget, cash envelopes, paying extra on debt and NO credit cards. I told him it was absolutely not feasible to live without a credit card in this world. How would we buy gas for our cars? How would we book a hotel room or rent a car (which we did very little of at the time)? What if there was an emergency? And I told him I was absolutely not giving up my Old Navy card! After that discussion (read argument), I heard this small voice speak to my heart. And it said clearly, "You place more faith in this card than you do Me". I knew the voice. And it's conviction cut deep. And sadly at that time, I chose to ignore it.
But in January 2008, I began working with my husband to finally implement those things we should have done before. And even though our income had decreased, miraculously our money seemed to multiple. It went further than it had before. And there was extra at the end of the month to do something we hadn't done in awhile, pay off debt! I firmly believe that once we started handling our finances in accordance to God's will for us, He touched it, blessed it and multiplied it much like He did with the fish and the loaves!
Thank you God for your provisions! And thank you for a loving and patient husband!
Sunday, January 11, 2009
Learning from the Bumps in the Road
Doesn't it always seem like when you're moving towards a goal, something pops up and gets in your way? We've definitely experienced this on our journey towards debt freedom. As you know, we're getting closer to finally paying off our HELOC. We've been "snowballing" this debt since July. Meaning at the end of the month, we send all extra money to the HELOC. In our excitement over nearing the end of our goal, we decided to send a little extra money in last week. We figured it would be the perfect week since the mortgage had already been paid the week prior, our other bills weren't due until the end of the month and our only expenses for the week were just grocery and allowances. All was well until Friday morning.
As Dave was driving Ashleigh to school, his car engine started stumbling and the check engine light came on. He stopped and checked the oil, which was very low. He filled it up but the check engine light remained on and the sputtering continued. He dropped Ash off and made his way to the garage and called me at work to come pick him up. We certainly weren't counting on pricey auto repairs when we transferred our extra money to the HELOC the day before.
On my way to pick up Dave, I kept thinking about how as we move closer to becoming debt free, we're experiencing more attacks or visits from "Murphy" as Dave Ramsey calls them. For us, car issues are particularly stressing due to having lost an engine several years ago as a result of an improper oil change. Since neither one of us are car savvy, we're left to depending on repair shops and possibly opening ourselves up to being overcharged. And having major car trouble was one of my biggest reasons for holding onto credit cards in the past.
But I've come to the realization, these attacks are really lessons to help us get over our fears. I feel strongly that the way we are moving financially, is the way in which God would want us to live. He would not want us bound by debt or relying on credit. He would not want us living in fear. We used our emergency fund to pay for the repairs and are now moving on feeling enriched by the experience. We're claiming victory over our debt and will not be deterred!
As Dave was driving Ashleigh to school, his car engine started stumbling and the check engine light came on. He stopped and checked the oil, which was very low. He filled it up but the check engine light remained on and the sputtering continued. He dropped Ash off and made his way to the garage and called me at work to come pick him up. We certainly weren't counting on pricey auto repairs when we transferred our extra money to the HELOC the day before.
On my way to pick up Dave, I kept thinking about how as we move closer to becoming debt free, we're experiencing more attacks or visits from "Murphy" as Dave Ramsey calls them. For us, car issues are particularly stressing due to having lost an engine several years ago as a result of an improper oil change. Since neither one of us are car savvy, we're left to depending on repair shops and possibly opening ourselves up to being overcharged. And having major car trouble was one of my biggest reasons for holding onto credit cards in the past.
But I've come to the realization, these attacks are really lessons to help us get over our fears. I feel strongly that the way we are moving financially, is the way in which God would want us to live. He would not want us bound by debt or relying on credit. He would not want us living in fear. We used our emergency fund to pay for the repairs and are now moving on feeling enriched by the experience. We're claiming victory over our debt and will not be deterred!
Monday, January 5, 2009
Financial Goals for 2009
Almost a year ago, we started our path towards financial freedom with Dave Ramsey's Total Money Makeover. We've been steadily working the "Baby Steps" and are coming closer to having all our debts paid off except for the mortgage!
We sat down and put together our financial goals for 2009. With the economy in the state it currently is, we feel more than ever the path we've taken has been a wise one.
To meet others working the plan, visit Living Like No One Else, a free forum devoted to the Total Money Makeover Plan.
We sat down and put together our financial goals for 2009. With the economy in the state it currently is, we feel more than ever the path we've taken has been a wise one.
Financial Goals for 2009
~ Pay off our HELOC, thus completing Baby Step 2!
~ Start Baby Step 3 (Save 3 to 6 months of expenses)
~ Complete Baby Step 3
~ Generate additional revenue streams
~ Educate ourselves about investments in anticipation of Baby Steps 4 & 5 (Retirement & College Savings)
~ Begin paying extra on our mortgage (Baby Step 6)
Stay tuned for updates!
For more information on the Total Money Makeover Plan, visit Dave Ramsey's website.
To meet others working the plan, visit Living Like No One Else, a free forum devoted to the Total Money Makeover Plan.
Friday, October 31, 2008
Wednesday, September 3, 2008
One Step Closer!
Time for an update on our Total Money Makeover! In July, we paid off the minivan (yay!) and thanks to an extra pay period, were also able to send a good sized snowball to our last debt - the HELOC. I never really paid much attention to the psychological aspect of debt. But it felt so liberating reading the letter that accompanied our van title stating the lien had been released. Freedom!
Since paying off the van, our debt snowball has really gained momentum! For the last two months, we've been able to send one of my paychecks entirely to debt! In a way I feel like this is just one step closer to our goal of not being dependent on two incomes. And with Dave's extra pay period in October, we anticipate having the HELOC paid off by December - fingers crossed!
Even though our snowball is pretty healthy, I've been looking for ways to bring in a few additional dollars. Since my time is limited with work and home, my focus right now has been on small money makers. The Caregivers Marketplace is a consistent source of rebate funds since I buy diapers weekly. I've also started doing paid surveys and product testing as well as Inbox Dollars, which pays to read emails. As Money Saving Mom cautions, you will not get rich by doing any of these things. But combined, those dollars do add up!
Since paying off the van, our debt snowball has really gained momentum! For the last two months, we've been able to send one of my paychecks entirely to debt! In a way I feel like this is just one step closer to our goal of not being dependent on two incomes. And with Dave's extra pay period in October, we anticipate having the HELOC paid off by December - fingers crossed!
Even though our snowball is pretty healthy, I've been looking for ways to bring in a few additional dollars. Since my time is limited with work and home, my focus right now has been on small money makers. The Caregivers Marketplace is a consistent source of rebate funds since I buy diapers weekly. I've also started doing paid surveys and product testing as well as Inbox Dollars, which pays to read emails. As Money Saving Mom cautions, you will not get rich by doing any of these things. But combined, those dollars do add up!
Tuesday, August 26, 2008
Financial Peace
What a coincidence that as I'm getting back into the habit of keeping a daily gratitude journal as outlined in Simple Abundance by Sarah Ban Breathnach, I come across "Gratituesday" at Heavenly Homemakers!
Today, I'm giving thanks for financial peace!
I know there are some that look at our life and feel sorry for us. They feel sorry for us because we don't go out and spend freely the way they do. That we plan our purchases, save up for things and live on the ever dreaded, oppressive budget! But what they don't see, is the tremendous peace we now have in our finances.
There's peace in getting an unexpected bill for $224 in the mail and not worrying about how it's going to get paid. Because even though the bill wasn't budgeted for, since our other expenses were, there's always extra when something pops up.
When you call about the after school program and find out the registration fee AND first payment are due by the end of the week. And you don't freak out because you anticipated the expense and already started setting aside the funds for months in advance - that's peace!
When you look ahead to the future and see yourself being debt-free INCLUDING the mortgage before you're 40 and well before your children start college - that's peace! And I wouldn't trade it for all the stuff and toys in the world!
~
If you're in need of some financial peace in your life, I highly recommend the book The Total Money Makeover by Dave Ramsey. This book has been such a tremendous blessing in getting our finances in order. You can also find information regarding Dave Ramsey's radio program, TV program (airs M-F on Fox Business Network 8PM EST) and Financial Peace University classes on his website - http://www.daveramsey.com/.
And if you're looking for like-minded individuals also working the baby steps, visit Living Like No One Else, a free, on-line support group.
Wednesday, July 23, 2008
One Down, One to Go!
Sitting in our driveway is now a paid for minivan! Dave & I decided to launch an early snowball last week to finally pay off the van. He checked this morning with the financing company, and everything cleared! It's now ours and we're back to having two paid for vehicles! To think before Dave Ramsey, we would have just keep mindlessly making car payments every month for another 3 years!?!
Now we're down to our last Baby Step 2 debt - our HELOC. With the money from the car payment added onto our snowball, we should be able to have the HELOC paid off by the end of the year. How great will it be to start the New Year debt free except for our house!
Now we're down to our last Baby Step 2 debt - our HELOC. With the money from the car payment added onto our snowball, we should be able to have the HELOC paid off by the end of the year. How great will it be to start the New Year debt free except for our house!
Thursday, July 10, 2008
Getting Closer!
Time for an update on our Total Money Makeover! As I've mentioned before, we are currently working on Baby Step 2 of Dave Ramsey's plan for financial freedom. June was another good month for our debt snowball. With the extra money saved from Ashleigh not being in preschool, we were able to make another sizable dent in our van loan. So much so, that if all goes according to plan, we will have the van paid off by the end of July! And if paying off the van wasn't exciting enough, July is an extra paycheck month for me. So not only could we finish up the van, but we would also be able to put a pretty good dent in our next and last debt - our HELOC.
Of course anytime you make progress, there's always something that pops up needing $$$ attention. We thought we were going to have a pretty pricey tire replacement bill for Dave's car. But luckily, a $20 patch was able to fix the leak in the rear tire. Then I had to make a visit to urgent care since I couldn't get an appointment with our doctor for a sinus infection. Since the urgent care didn't take insurance, I had to pay for the visit out of pocket. And when they called in my prescriptions, the doctor ordered name brand only. Thank goodness for our emergency fund. We were able to pay cash for everything and quickly refilled our emergency fund back up with that week's pay!
Of course anytime you make progress, there's always something that pops up needing $$$ attention. We thought we were going to have a pretty pricey tire replacement bill for Dave's car. But luckily, a $20 patch was able to fix the leak in the rear tire. Then I had to make a visit to urgent care since I couldn't get an appointment with our doctor for a sinus infection. Since the urgent care didn't take insurance, I had to pay for the visit out of pocket. And when they called in my prescriptions, the doctor ordered name brand only. Thank goodness for our emergency fund. We were able to pay cash for everything and quickly refilled our emergency fund back up with that week's pay!
Thursday, June 12, 2008
Staying the Course
Joining in on Money Saving Mom's Financial Shape in 2008 Monthly Checkup! Last month I wrote about the beginnings of our Total Money Makeover. May was a really good month for us due in large part to our economic stimulus check, which came at the beginning of the month. We sent our entire stimulus check along with regular payment to our current snowball debt - our van loan. And thanks to an extra pay period in May, we were able to send another sizable snowball to the loan at the end of the month.
We're down to about $2400 left on the van loan. And now with the extra $600 each month we will have with Ashleigh no longer attending preschool (she'll be attending a free summer program at her new elementary school), we should have some really serious snow to sling! We're hoping to be done with the van loan in another two to three months.
That was the good news, now the not so good news. The grocery budget continues to be a challenge. I'm finding that each week we're spending an additional $20 above the weekly $75 budgeted amount. I think a combination of things are contributing to this. The increase in food prices, a change in my cooking style (moving to more from scratch cooking with fresh fruits and veggies) and lack of food stockpile. When we started our budget, I partly suspended my stockpile shopping to focus on getting what was needed to pull meals together for the week. I didn't really have much of a food stockpile to begin with - unless you count mayo and mustard LOL! Thankfully, my HBA stockpile is better stocked due in large part to CVS and Walgreens. I still stock up on freebies when I can, but there isn't much room for stockpiling on a grand scale. So maybe I'm feeling the effects of not being adequately stocked. Dave and I have thrown around the idea of increasing the grocery budget, but I so wanted to make this work by spending less.
We're down to about $2400 left on the van loan. And now with the extra $600 each month we will have with Ashleigh no longer attending preschool (she'll be attending a free summer program at her new elementary school), we should have some really serious snow to sling! We're hoping to be done with the van loan in another two to three months.
That was the good news, now the not so good news. The grocery budget continues to be a challenge. I'm finding that each week we're spending an additional $20 above the weekly $75 budgeted amount. I think a combination of things are contributing to this. The increase in food prices, a change in my cooking style (moving to more from scratch cooking with fresh fruits and veggies) and lack of food stockpile. When we started our budget, I partly suspended my stockpile shopping to focus on getting what was needed to pull meals together for the week. I didn't really have much of a food stockpile to begin with - unless you count mayo and mustard LOL! Thankfully, my HBA stockpile is better stocked due in large part to CVS and Walgreens. I still stock up on freebies when I can, but there isn't much room for stockpiling on a grand scale. So maybe I'm feeling the effects of not being adequately stocked. Dave and I have thrown around the idea of increasing the grocery budget, but I so wanted to make this work by spending less.
Tuesday, May 20, 2008
On the Road to Freedom
In January of this year, Dave and I looked at our finances and realized something had to change. Our expenses seemed ever increasing while our income was getting stretched to the limits. We had nothing to show for the money that was disappearing before our eyes other than stress. It was around that time I started watching Dave Ramsey on Fox Business Network. His advice seemed very sound and doable for the average person. No promises of getting rich overnight - just the constant reminder that "if you live like no one else now, later you can live like no one else".
I used a gift card I received as a Secret Santa gift at work to order his book, Total Money Makeover. I'm not much into finance and had been pretty hands off with the finances at home (oddly enough I have a degree in Finance), but I was drawn in by this book. My whole perspective on money and finances changed. And what I found encouraging about the book, was the testimonials from the families. They were just average people like us. They weren't all doctors, lawyers and engineers making huge salaries. Most were just one-income households. But they made it work with sacrifice.
In order for our family to prosper, I knew we had to make a change. Dave, who is a saver by nature, was so excited to finally see me on board. We began working through what Dave Ramsey calls the Baby Steps. In addition, we implemented the following changes to help achieve our financial goals:
- Created (and currently live by) a budget
- Reduced our expenses - cancelled cell phones, cancelled long distance (never used it anyway), reduced our local calling plan, reduced our satellite plan and cut out other non-essentials (eating out, etc.)
- Use cash only; no credit cards - I'm sure our credit card company is wondering what happened to us LOL!
- Created an emergency fund - if you have the money on hand, you will be less likely to turn to credit in times of an emergency (and no, new shoes is not an emergency!)
- Continually look for ways to reduce expenses and live on less
Even though we've made these changes, I can honestly say our quality of life has not changed one bit. If anything, it's gotten better because we're not constantly stressing about where the money is going to come from to pay for things. And we feel very comfortable in this economic downturn knowing we're making sound decisions that are taking us away from living in debt to financial freedom.
We are currently on Baby Step 2. We are estimating that all our debt (except for our house) will be paid off by mid-2009. Our income will start working for us, instead of going out to other people. And not only will we solidify our financial future, but create a great legacy for our children as well.
Onward to freedom!
I used a gift card I received as a Secret Santa gift at work to order his book, Total Money Makeover. I'm not much into finance and had been pretty hands off with the finances at home (oddly enough I have a degree in Finance), but I was drawn in by this book. My whole perspective on money and finances changed. And what I found encouraging about the book, was the testimonials from the families. They were just average people like us. They weren't all doctors, lawyers and engineers making huge salaries. Most were just one-income households. But they made it work with sacrifice.
In order for our family to prosper, I knew we had to make a change. Dave, who is a saver by nature, was so excited to finally see me on board. We began working through what Dave Ramsey calls the Baby Steps. In addition, we implemented the following changes to help achieve our financial goals:
- Created (and currently live by) a budget
- Reduced our expenses - cancelled cell phones, cancelled long distance (never used it anyway), reduced our local calling plan, reduced our satellite plan and cut out other non-essentials (eating out, etc.)
- Use cash only; no credit cards - I'm sure our credit card company is wondering what happened to us LOL!
- Created an emergency fund - if you have the money on hand, you will be less likely to turn to credit in times of an emergency (and no, new shoes is not an emergency!)
- Continually look for ways to reduce expenses and live on less
Even though we've made these changes, I can honestly say our quality of life has not changed one bit. If anything, it's gotten better because we're not constantly stressing about where the money is going to come from to pay for things. And we feel very comfortable in this economic downturn knowing we're making sound decisions that are taking us away from living in debt to financial freedom.
We are currently on Baby Step 2. We are estimating that all our debt (except for our house) will be paid off by mid-2009. Our income will start working for us, instead of going out to other people. And not only will we solidify our financial future, but create a great legacy for our children as well.
Onward to freedom!
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