Basic tips to getting your finances in order:
1. Know what you make. Sounds easy, right? Well unfortunately some people (maybe they are paid differently each pay period, or on commission) don't know EXACTLY what they make. Try to find out EXACTLY what you bring home. You can't have a perfect budget if you don't know the answer.
2. Know your expenses. How much to the CENT is every single bill??
3. Start a budget. Use numbers 1 and 2 to create an incoming column and an outgoing column. Write down EVERY bill. Don't skip any! Included gasoline, sonic drinks, movie rentals, entertainment money--EVERYTHING!
4. Don't panic. There are ways to fix it if it's not balancing!
5. Make a zero budget. Google some info on Dave Ramsey. He can explain it in detail. I can just say this very simply... GIVE EVERY DOLLAR A PLACE TO GO! That means if you bring home 2,000 each month and your expenses are 1,500 then on paper you have to find a place for that extra 500... even if its to send it to your savings account, or put some in your christmas fund, or new tire fund. Every dollar has a name... and if it doesn't--assign it one!
6. Pay your bills on time. You save money and save stress.
7. Keep up with the "randoms" as I call it. Trash bills that come only every quarter, insurance premiums that come once a year, things like that. TAXES! This one gets a lot of people each year. Start setting aside money for those. Even if it's only $10 each month.
8. Use the debt snowball. Start with the low balance. Pay the minimums on everything EXCEPT this lowest balance. Put everything extra you can towards it until its paid off. Then snowball down to the highest ones.
9. Work as a team. I had to learn this one the hard way. I wanted to keep my independence and handle MY stuff MYSELF. but the day we decided to be a team my life got easier.
10. Set aside money for fun! If you don't, you will end up quitting and get right back into debt!
11. Look for ways to scale back. Cancel the primo cable subscription, lower your minutes on cell phone plan, quit eating out as much!
12. At the same time... look for ways to INCREASE your income. Sell some stuff, get a part time job, list items on EBAY. look for ways to increase your income!
13. Stick with it! don't give up!
14. blog about it. :) Okay so that's probably not a qualifing statement for "Finances 101" but just like with anything, you need accountability. Having a place to write about your journey towards financial freedom keeps you accountable. And you can make money blogging.
15. Organize it! Keep a binder, notebook, drawer, etc. Some place that is designtated SOLELY for finances. That way things don't get lost, bills don't go unpaid... it just keeps you on top of your GAME!
16. Make goals for the future. This won't be a fun process, but it can be less painful if you have GOALS in mind.
17. Be excited about it!
18. Consolidate student loans, car loans, home loans, credit cards... anything you can! Get it into ONE place so that you have ONE payment to keep up with!
19. Use bill pay. But don't PAY FOR IT! That is ridiculous. Most banks will offer it for free, or at least free for so long. Don't pay for things that you can do yourself. Bill pay is NICE and HANDY to have, but if it costs you money to spend YOUR money on YOUR bills... well, am I the only one that sees something wrong with that picture?
20. Call your credit card companies and ask to have your interest lowered. Beg them, in fact. The lower the interest the sooner you can pay it off.
21. Trade down. If you have 3 people in your family then you PROBABLY don't HAVE to have a huge gas gussler of a car. (I'm not knocking them, but if it's not a necessity, then during this time you should get rid of it)
21. Refinance your car. Didn't know you could do that until recently. Do it! save money! And that extra money can go towards paying down debt!
Just some handy tips! I hope they help!!
Showing posts with label Dave Ramsey. Show all posts
Showing posts with label Dave Ramsey. Show all posts
Wednesday, March 27, 2013
Friday, March 15, 2013
Taking advantage of what you already have!
I realize that these will be different for EVERY PERSON. But think about benefits that you already have.
1. health insurance. Could you save money by switching to your spouses plan or by getting on separate plans? Look for savings here.
2. Car insurance. Is there ANYTHING you can drop? Do you really need the rental insurance?
3. Does your company offer gym memberships for free or cheap? You could ditch your current one and go cheaper!
4. Does your company offer discounts on cell phones and packages? I have had that happen before. You may check into that.
5. Does your company pay mileage? Find out! This could be HUGE!
6. Should you shop around for a lower interest rate on credit cards, home loans, car loans? On the car loan thing... I didn't know it was possible to re-finance a vehicle... but it IS! Check into it! You may have gotten a loan several years ago and now your credit would warrant a much lower rate. Happened to me just YESTERDAY!
7. Do you have old gift cards sitting around with small balances? Check that out! You would be surprised how many times a card has several dollars left!
8. Has your bank started offering new things? Maybe free checks, free bill pay--it would be worth checking into!
Look around you... what benefits could you find on your OWN!? Maybe even things you already have at your disposal and didn't know about it!
Happy saving!
1. health insurance. Could you save money by switching to your spouses plan or by getting on separate plans? Look for savings here.
2. Car insurance. Is there ANYTHING you can drop? Do you really need the rental insurance?
3. Does your company offer gym memberships for free or cheap? You could ditch your current one and go cheaper!
4. Does your company offer discounts on cell phones and packages? I have had that happen before. You may check into that.
5. Does your company pay mileage? Find out! This could be HUGE!
6. Should you shop around for a lower interest rate on credit cards, home loans, car loans? On the car loan thing... I didn't know it was possible to re-finance a vehicle... but it IS! Check into it! You may have gotten a loan several years ago and now your credit would warrant a much lower rate. Happened to me just YESTERDAY!
7. Do you have old gift cards sitting around with small balances? Check that out! You would be surprised how many times a card has several dollars left!
8. Has your bank started offering new things? Maybe free checks, free bill pay--it would be worth checking into!
Look around you... what benefits could you find on your OWN!? Maybe even things you already have at your disposal and didn't know about it!
Happy saving!
Tuesday, September 4, 2012
The "Zero" budget
Dave Ramsey's "The Zero Budget" idea tends to stump some people. It's actually BRILLIANT! Let me explain...
Every dollar you have has a name. EXAMPLE. Your paycheck is $2000 a month. Your bills are as follows:
Rent/Mortgage: 1000
Electricity: 200
Water: 50
Cell phone: 100
Gas: 50
Insurance: 200
Okay so it looks like you have a LOT left over... BUT, if every dollar has a name then you have to break it down like this.
Food: X amount of dollars
Gas: X amount of dollars
Savings: X amount of dollars
Childrens clothes fund: X amount of dollars
And so on and so forth until the bottom of the page says:
"LEFT OVER AMOUNT FOR THE MONTH OF SEPTEMBER"-- $0.00
That's the point. The point is not have "Extra' money. That doesn't mean you can't spend money on fun stuff. that means you BUDGET for it. You give X amount of dollars each month the name "SPENDING MONEY". It's OK to spend money, and go to the movies, and buy shoes... just give yourself an AMOUNT, instead of looking at your checkbook and saying "Hmmm.. i'll let myself spend X." WRONG! Give it a number, and give it a NAME!
THAT is how a Zero budget works! And get this... it really DOES work!
Every dollar you have has a name. EXAMPLE. Your paycheck is $2000 a month. Your bills are as follows:
Rent/Mortgage: 1000
Electricity: 200
Water: 50
Cell phone: 100
Gas: 50
Insurance: 200
Okay so it looks like you have a LOT left over... BUT, if every dollar has a name then you have to break it down like this.
Food: X amount of dollars
Gas: X amount of dollars
Savings: X amount of dollars
Childrens clothes fund: X amount of dollars
And so on and so forth until the bottom of the page says:
"LEFT OVER AMOUNT FOR THE MONTH OF SEPTEMBER"-- $0.00
That's the point. The point is not have "Extra' money. That doesn't mean you can't spend money on fun stuff. that means you BUDGET for it. You give X amount of dollars each month the name "SPENDING MONEY". It's OK to spend money, and go to the movies, and buy shoes... just give yourself an AMOUNT, instead of looking at your checkbook and saying "Hmmm.. i'll let myself spend X." WRONG! Give it a number, and give it a NAME!
THAT is how a Zero budget works! And get this... it really DOES work!
Thursday, August 30, 2012
A good deal on a fantastic program!
For those of you who are interested in trying out Dave Ramsey's program, here is an AWESOME way to get started!
Click HERE to purchase an awesome marriage set! Getting money right the Dave Ramsey way :)
Typically $221--today its $49.50!!
You will recieve...
Dave Ramsey's Couple Checkup
The Total Money Makeover
The Total Money Makeover workbook
Financial Peace Revisited
Financial Peace Planner
Cash Flow Planning DVD
Dumping Debt DVD
The Great Misunderstanding DVD
2 starter envelope systems
This is a fantastic way to learn about Dave Ramsey's money plan, get some awesome material, AND own several of the DVD's. i have never seen a set like this be so inexpensive. So I hopped on it!
Can't wait til it comes in==-only 6-12 days! YYEEHAWW!!
Thursday, July 26, 2012
Getting the 'gazelle'
Dave Ramsey often talks about paying off debt with "gazelle like intensity." I went through his "Financial Peace University" class years ago and he said that phrase a lot. I wasn't THERE. I wasn't at the point where I was going to be all gung-ho-let's do this thing-let's get outta debt! FLASH FORWARD several years and I AM all about it.
So what does it mean to get the "gazelle"? It means to get MAD And FAST about paying off debt. It means to look at your statements every month and scream at the top of your lungs and say NO MORE! I WILL NOT DO THIS ANYMORE!!!
It means seeing that balance of what you owe and going nuts. Having a yard sale the next day, listing movies and electronics on EBAY, it means deciding that you DON'T need that nice new car. It means selling your house, taking the profits and paying off debt. It means going fast and furious at getting out of debt!
Getting out of debt with gazelle like intensity means being mad at your debt and wanting to wash it away. When you catch this "Fever", you can't stop! Once you see that first balance gone, then the second one starts dwindling away, then you realize how QUICKLY you are making progress--it's like you simply CAN'T stop!
So what does it mean to get the "gazelle"? It means to get MAD And FAST about paying off debt. It means to look at your statements every month and scream at the top of your lungs and say NO MORE! I WILL NOT DO THIS ANYMORE!!!
It means seeing that balance of what you owe and going nuts. Having a yard sale the next day, listing movies and electronics on EBAY, it means deciding that you DON'T need that nice new car. It means selling your house, taking the profits and paying off debt. It means going fast and furious at getting out of debt!
Getting out of debt with gazelle like intensity means being mad at your debt and wanting to wash it away. When you catch this "Fever", you can't stop! Once you see that first balance gone, then the second one starts dwindling away, then you realize how QUICKLY you are making progress--it's like you simply CAN'T stop!
That's what getting the gazelle means... It's a fever--have you caught it?!
Monday, May 21, 2012
How do you get through a "slump"?
Everybody has them...we all have slumps. Job slumps, relationship slumps, and of course those dreaded financial slumps.
Any kind of "slump" is a bummer, let's just call a spade a spade. But there is something about financial slumps that really get us down.
Maybe you only pay your insurance twice a year and its coming up and all of a sudden you feel broke.
Maybe you are looking at the amount of money you will spend on daycare this summer and are feeling broke and "slumpish".
Maybe you just realized that your perfect budget is not so perfect and you are actually under every month.
Either way, we ALL have financial slumps. How do we get through them? What happens when you realize that you don't have extra money to spend? What happens when you realize that the next few months may be super tight?
Here are just a few things that I suggest:
1. Take this time to clean. I know it sounds odd, but if I know i cannot spend any money it forces me to take pride in what I already have. Wash your car, empty our drawers, make your house sparkle. Put together new outfits, organize your children's toys, dust the fans. I really DO know how silly it sounds... but i promise, it will give you something to do to take your mind off your money troubles, your house will thank you, AND you will find yourself being more grateful. When you are forced to look at things you already have and not dream of things that you WANT, you become grateful that you are so blessed.
2. Take this time to PURGE! Sell your dvd's, list books on ebay, have a yard sale, write a paid for blog, pawn your old earrings, sell some cd's... take this time to get rid of things AND make some money!!!
3. Take this time to look for work. Get a part time job. Babysit. Clean houses. Mow lawns. Rake leaves. Clean swimming pools. Get crafty and sell stuff on etsy.
4. Take this time to be grateful. Above all, when we get in slumps we tend to be down in the dumps and very woe is me. Well, that needs to change. God has blessed you with so much and just because things are tight right now doesn't mean you aren't so fortunate.
Keep your chin up! God's gonna pull you through this slump if you let him!
Any kind of "slump" is a bummer, let's just call a spade a spade. But there is something about financial slumps that really get us down.
Maybe you only pay your insurance twice a year and its coming up and all of a sudden you feel broke.
Maybe you are looking at the amount of money you will spend on daycare this summer and are feeling broke and "slumpish".
Maybe you just realized that your perfect budget is not so perfect and you are actually under every month.
Either way, we ALL have financial slumps. How do we get through them? What happens when you realize that you don't have extra money to spend? What happens when you realize that the next few months may be super tight?
Here are just a few things that I suggest:
1. Take this time to clean. I know it sounds odd, but if I know i cannot spend any money it forces me to take pride in what I already have. Wash your car, empty our drawers, make your house sparkle. Put together new outfits, organize your children's toys, dust the fans. I really DO know how silly it sounds... but i promise, it will give you something to do to take your mind off your money troubles, your house will thank you, AND you will find yourself being more grateful. When you are forced to look at things you already have and not dream of things that you WANT, you become grateful that you are so blessed.
2. Take this time to PURGE! Sell your dvd's, list books on ebay, have a yard sale, write a paid for blog, pawn your old earrings, sell some cd's... take this time to get rid of things AND make some money!!!
3. Take this time to look for work. Get a part time job. Babysit. Clean houses. Mow lawns. Rake leaves. Clean swimming pools. Get crafty and sell stuff on etsy.
4. Take this time to be grateful. Above all, when we get in slumps we tend to be down in the dumps and very woe is me. Well, that needs to change. God has blessed you with so much and just because things are tight right now doesn't mean you aren't so fortunate.
Keep your chin up! God's gonna pull you through this slump if you let him!
Wednesday, May 16, 2012
Dave Ramsey says...
BUY TERM LIFE INSURANCE!!!
Not whole life. Which SO many people have. And that's fine. It's your deal. It's your money. Dave Ramsey says that buying term (which is SOOOO much cheaper) is better. He says that you should NOT look at life insurance as a "retirement policy".
Ex: I just purchased a sizeable amount of insurance at $10.24 a month for 30 years. So if I die in the next 30 years that sizeable money will go to the people i have listed on my policy. If I had purchased this same amount in WHOLE Life insurance it would have cost me $112.84 a MONTH... and if I'm still alive at 68 I could take it out.
but let's do the math... It would cost me $55,000 over the 40 years I would be paying on this insurance. OR... i could put $55,000 in an IRA at what I am currently drawing and end up taking out TRIPLE the amount whenever i'm ready for it!
So... be smart. Do not look at life insurance as retirement money. Look at it as a way to protect your family if something were to happen to you.
Be smart.
Look into ZANDER insurance today. This is a great company, and hey--it's Dave Ramsey and Cara Matthews approved. :)
Not whole life. Which SO many people have. And that's fine. It's your deal. It's your money. Dave Ramsey says that buying term (which is SOOOO much cheaper) is better. He says that you should NOT look at life insurance as a "retirement policy".
Ex: I just purchased a sizeable amount of insurance at $10.24 a month for 30 years. So if I die in the next 30 years that sizeable money will go to the people i have listed on my policy. If I had purchased this same amount in WHOLE Life insurance it would have cost me $112.84 a MONTH... and if I'm still alive at 68 I could take it out.
but let's do the math... It would cost me $55,000 over the 40 years I would be paying on this insurance. OR... i could put $55,000 in an IRA at what I am currently drawing and end up taking out TRIPLE the amount whenever i'm ready for it!
So... be smart. Do not look at life insurance as retirement money. Look at it as a way to protect your family if something were to happen to you.
Be smart.
Look into ZANDER insurance today. This is a great company, and hey--it's Dave Ramsey and Cara Matthews approved. :)
Friday, March 23, 2012
Today is about saving money!
Today is saving money day!!!!
FIRST, I saved more money on my car insurance. i got to looking at EVERY detail on the bill and realized there were some discounts missing. SO, I made THAT phone call, faxed THAT info, and saved $700 a year for taking MY time to do THAT !WAHOO!!
THEN I headed over to Verizon.com. Really? I had NEVER EVER checked my "usage" on their website. WOW, was I getting ripped off. Since most of the people I know have verizon, and same goes for my husband, we were only using 390 of our 1400 minutes EVERY month for the past year!! HOLY COWZERS!!! What was I thinking... i am literally sick at my stomach at the thought of the money I have thrown out the window and at Verizon's doorstep. Ugh... makes me so mad at ME! SO, I got on the phone immediately and changed my plan. I saved $45 bucks a month. That is $540.00 per YEAR! WHOA BABY!
Now I am blogging AND waiting for the dish network guy to chat back with me. I am going to make some changes there too... if i don't WATCH the channel, i'm doing my best to get rid of it!
Let's save some money guys--don't let people TAKE your money without your consent and if you are NOT checking bills, that is EXACTLY What you are doing!
Say no to debt. say no to over charges. Say no to watching your money run away from you!! CATCH IT WHILE YOU CAN!
FIRST, I saved more money on my car insurance. i got to looking at EVERY detail on the bill and realized there were some discounts missing. SO, I made THAT phone call, faxed THAT info, and saved $700 a year for taking MY time to do THAT !WAHOO!!
THEN I headed over to Verizon.com. Really? I had NEVER EVER checked my "usage" on their website. WOW, was I getting ripped off. Since most of the people I know have verizon, and same goes for my husband, we were only using 390 of our 1400 minutes EVERY month for the past year!! HOLY COWZERS!!! What was I thinking... i am literally sick at my stomach at the thought of the money I have thrown out the window and at Verizon's doorstep. Ugh... makes me so mad at ME! SO, I got on the phone immediately and changed my plan. I saved $45 bucks a month. That is $540.00 per YEAR! WHOA BABY!
Now I am blogging AND waiting for the dish network guy to chat back with me. I am going to make some changes there too... if i don't WATCH the channel, i'm doing my best to get rid of it!
Let's save some money guys--don't let people TAKE your money without your consent and if you are NOT checking bills, that is EXACTLY What you are doing!
Say no to debt. say no to over charges. Say no to watching your money run away from you!! CATCH IT WHILE YOU CAN!
Dave Ramsey steps....in case you need reminding!
Get a full outline HERE.
Baby Steps:
1. Save up $1000.00 for your emergency fund.
2. Debt snowball!
3. 3-6 months worth of bills in savings
4. invest 15% of household income into IRA and other pre-tax retirement accounts
5. College funding for children
6. Pay off home early!
7. Build wealth and GIVE!
Okay so these are the baby steps that Dave Ramsey tells us to use. He is so wise. If you look at his plan it TOTALLY makes sense. And the best part is that you aren't trying to do 7 things at once. So many (from talking with people, financial tv shows, radio shows, etc) people are trying to pay off debt, save money, invest in their accounts, etc, ALL at the same time! Dave Ramsey takes the load off. By following his steps, you will SEE just how easy it can be.
Me personally... I will set aside money to help my daughter through school. BUT, I am not paying for all of her school. I believe in working hard, getting scholarships, getting a job, and being there to help and support your kids without doing it all. That's my philosophy--i am not downing ANYONE elses. that's just me. So I don't have to save up TONS for college. I know in my heart the amount I would like to provide her with when she graduates high school, and that is that. I don't own a home. ONE day I plan to do that again, but that is in my ten year plan. I know the kind of house I want and I am willing to wait for it and save for it.
I am currently on babystep #3. I have 3 months saved worth of bills, but I would feel much more comfortable if I had all 6 months saved. This economy is scary, and I feel much more at ease with money put aside. I have NO debt, and I have an emergency fund. YAY!
So my goal is for the next 3 months to SAVE SAVE SAVE so that I can obtain the goal of 6 months worth of bills in savings. THEN, I plan to open a separate account to essentially start over with my savings. I am not going to touch my 6 months worth of bills until I HAVE to, and if I never do--then fabulous! But IF I do, I want other money waiting on me.
The goal for 2012 is this... SAVE. Save it all--save as much as you can.
What about your? What step are you on? What progress have you made??
Baby Steps:
1. Save up $1000.00 for your emergency fund.
2. Debt snowball!
3. 3-6 months worth of bills in savings
4. invest 15% of household income into IRA and other pre-tax retirement accounts
5. College funding for children
6. Pay off home early!
7. Build wealth and GIVE!
Okay so these are the baby steps that Dave Ramsey tells us to use. He is so wise. If you look at his plan it TOTALLY makes sense. And the best part is that you aren't trying to do 7 things at once. So many (from talking with people, financial tv shows, radio shows, etc) people are trying to pay off debt, save money, invest in their accounts, etc, ALL at the same time! Dave Ramsey takes the load off. By following his steps, you will SEE just how easy it can be.
Me personally... I will set aside money to help my daughter through school. BUT, I am not paying for all of her school. I believe in working hard, getting scholarships, getting a job, and being there to help and support your kids without doing it all. That's my philosophy--i am not downing ANYONE elses. that's just me. So I don't have to save up TONS for college. I know in my heart the amount I would like to provide her with when she graduates high school, and that is that. I don't own a home. ONE day I plan to do that again, but that is in my ten year plan. I know the kind of house I want and I am willing to wait for it and save for it.
I am currently on babystep #3. I have 3 months saved worth of bills, but I would feel much more comfortable if I had all 6 months saved. This economy is scary, and I feel much more at ease with money put aside. I have NO debt, and I have an emergency fund. YAY!
So my goal is for the next 3 months to SAVE SAVE SAVE so that I can obtain the goal of 6 months worth of bills in savings. THEN, I plan to open a separate account to essentially start over with my savings. I am not going to touch my 6 months worth of bills until I HAVE to, and if I never do--then fabulous! But IF I do, I want other money waiting on me.
The goal for 2012 is this... SAVE. Save it all--save as much as you can.
What about your? What step are you on? What progress have you made??
Monday, March 19, 2012
Dave Ramsey would be proud!
Well folks.. I sold my car! I've had it listed on Craigslist for a while and finally got a serious person that wanted to see it. She met me yesterday and drove it, and called me this morning with her final offer and I took it!
So... the Honda is going bye bye. :( Kinda sad, BUT... i'm trying to make Dave Ramsey proud.
Dave Ramsey says "SELL YOUR CAR". I've heard him say that for years and kinda let that go in one ear and out the other. I just figured it was a way of life to have a car payment. AND to have a spouse that had a car payment too. Then about a year ago I started really feeling guilty about having a car payment. yes, I HAVE to have transportation. My husband and I can NOT be a one car family. Some families can and that is TERRIFIC, but we simply can't. There is NO logical way that would ever work for us. So I began praying about it. I knew that by selling my car I would be 100% debt free. I would owe nobody NOTHING and I knew that would be a terrific feeling.
My dream car is a car that I won't be able to afford for quite some time, but how much QUICKER I could own my dream car (AND pay cash for it) if I sold mine. I have been faithfully paying on mine double and triple time over the past year. Finally I am WAY over what I owe. So I knew then that I could sell it, get a profit, and then turn around and pay cash for something==so that is EXACTLY what I am going to do.
The car I am buying is by no means by dream car, BUT, it's going to be a good one. (I pray.) It's a 2003 Mitsubishi Lancer. It has 86k miles on it which is significantly less than my Honda, but it is an older car. Dave Ramsey says to "buy a beater." Well, I can't exactly buy a beater, but i can buy something nice, decent, clean, and in good shape that will get me where I need to go WITHOUT having a car payment.
another thing... I will see my insurance go down significantly. Insurance on my Honda is a lot because its FULLY loaded. There isn't one more thing that could go in this car. It has it ALL. Plus I won't have to carry as much coverage.
So, today I am getting ready to bid farewell to the Honda. I'm sad because i have liked that car JUST fine, but I am more excited about selling my car, living debt free, and watching my savings grow more and more!
I understand that i'm just 27 years old, but the future is scary. Nobody knows when there jobs will be cut, when prices of gas, food, etc, will rise even more than they are now, and i don't think I will be fortunate enough to retire with social security. So, i have to handle these things on my own.
To some this will seem extreme and i'm okay with that. To others it will seem awesome. To me it just seemed like the right thing to do, the smart financial decision I needed to make, AND I felt God's hand in this situation.
So goodbye Honda, and hello Mitsubishi. :) At LEAST it's still foreign. :)
So... the Honda is going bye bye. :( Kinda sad, BUT... i'm trying to make Dave Ramsey proud.
Dave Ramsey says "SELL YOUR CAR". I've heard him say that for years and kinda let that go in one ear and out the other. I just figured it was a way of life to have a car payment. AND to have a spouse that had a car payment too. Then about a year ago I started really feeling guilty about having a car payment. yes, I HAVE to have transportation. My husband and I can NOT be a one car family. Some families can and that is TERRIFIC, but we simply can't. There is NO logical way that would ever work for us. So I began praying about it. I knew that by selling my car I would be 100% debt free. I would owe nobody NOTHING and I knew that would be a terrific feeling.
My dream car is a car that I won't be able to afford for quite some time, but how much QUICKER I could own my dream car (AND pay cash for it) if I sold mine. I have been faithfully paying on mine double and triple time over the past year. Finally I am WAY over what I owe. So I knew then that I could sell it, get a profit, and then turn around and pay cash for something==so that is EXACTLY what I am going to do.
The car I am buying is by no means by dream car, BUT, it's going to be a good one. (I pray.) It's a 2003 Mitsubishi Lancer. It has 86k miles on it which is significantly less than my Honda, but it is an older car. Dave Ramsey says to "buy a beater." Well, I can't exactly buy a beater, but i can buy something nice, decent, clean, and in good shape that will get me where I need to go WITHOUT having a car payment.
another thing... I will see my insurance go down significantly. Insurance on my Honda is a lot because its FULLY loaded. There isn't one more thing that could go in this car. It has it ALL. Plus I won't have to carry as much coverage.
So, today I am getting ready to bid farewell to the Honda. I'm sad because i have liked that car JUST fine, but I am more excited about selling my car, living debt free, and watching my savings grow more and more!
I understand that i'm just 27 years old, but the future is scary. Nobody knows when there jobs will be cut, when prices of gas, food, etc, will rise even more than they are now, and i don't think I will be fortunate enough to retire with social security. So, i have to handle these things on my own.
To some this will seem extreme and i'm okay with that. To others it will seem awesome. To me it just seemed like the right thing to do, the smart financial decision I needed to make, AND I felt God's hand in this situation.
So goodbye Honda, and hello Mitsubishi. :) At LEAST it's still foreign. :)
Wednesday, March 7, 2012
Well...there is that ONE card...
Last week I blogged VERY happily (is that a word?) about how I had just paid off my debt. i am STILL so excited. It's SUCH A good feeling and i'm proud of myself.
but there is that ONE card.... Let me explain.
I paid everything off, yes indeed. BUT, I am not cancelling the cards. That looks bad on credit and I am trying to keep my good credit rolling in. I have no intention of using them...but there is that ONE card.
I travel 3 days a week for work. I get paid mileage which is nice, but in the meantime, I am the one that initially pays for gas, oil changes, etc. SO, i keep that ONE card to put all of that on. It's a way for me to keep track of how much gas I using in a month (that's work related), how many oil changes, any car expenses, etc. I decided to do it that way because in previous months I have used my debit card and at the end of the month i wasn't quite sure which was work stuff and which was me just needing gas so I could run around town and shop. :)
Even though I was SO happy about my debt being paid off and now I am using the card again, it DOES get paid the end of every month. But without doing it that way, it becomes so hard to decipher between work expenses and personal expenses.
As long as I am paying it off I see no harm. PLUS, that's another big fat 1 on my credit report every month. Credit doesn't HAVE to be a bad thing. It's only bad when you cannot pay it off, you use credit for daily living expenses, and you have no intentions of getting out of debt. that is when it's bad.
I felt like I had to come clean. :) But ALSO I wanted to use this as a suggestion for others who may be in a similar boat.
**Dave Ramsey would probably NOT be proud of me. He would say just to use my debit card or open up a separate account. i can see the benefit in that as well, but to open up an account means lots of transferring of money, and yet another account to keep up with. If i'm doing it smart, i think my way is JUST fine.** :)
but there is that ONE card.... Let me explain.
I paid everything off, yes indeed. BUT, I am not cancelling the cards. That looks bad on credit and I am trying to keep my good credit rolling in. I have no intention of using them...but there is that ONE card.
I travel 3 days a week for work. I get paid mileage which is nice, but in the meantime, I am the one that initially pays for gas, oil changes, etc. SO, i keep that ONE card to put all of that on. It's a way for me to keep track of how much gas I using in a month (that's work related), how many oil changes, any car expenses, etc. I decided to do it that way because in previous months I have used my debit card and at the end of the month i wasn't quite sure which was work stuff and which was me just needing gas so I could run around town and shop. :)
Even though I was SO happy about my debt being paid off and now I am using the card again, it DOES get paid the end of every month. But without doing it that way, it becomes so hard to decipher between work expenses and personal expenses.
As long as I am paying it off I see no harm. PLUS, that's another big fat 1 on my credit report every month. Credit doesn't HAVE to be a bad thing. It's only bad when you cannot pay it off, you use credit for daily living expenses, and you have no intentions of getting out of debt. that is when it's bad.
I felt like I had to come clean. :) But ALSO I wanted to use this as a suggestion for others who may be in a similar boat.
**Dave Ramsey would probably NOT be proud of me. He would say just to use my debit card or open up a separate account. i can see the benefit in that as well, but to open up an account means lots of transferring of money, and yet another account to keep up with. If i'm doing it smart, i think my way is JUST fine.** :)
Monday, February 27, 2012
I'm VERY happy!!
ATTENTION LADIES AND GENTLEMEN...
YOU ARE ENTERING A DEBT FREE ZONE!
I mean FO REAL! I just paid off all of my debt. **EXCEPT** my car. And THAT will be paid off THIS year.
I have worked very diligently to save every dime I could so that I can pay off my debt. SIGH--it is SUCH a good feeling.
Now granted, i am trying very VERY hard to not get down because I REALLLLY want my car paid off too. I mean who doesn't? I am so close, but not there yet. Slowly but surely i am getting there. I just want it to be DONE, ya know? But... I do think that we have to celebrate small victories.
So here i am sitting at my computer doing my happy dance. My VERY happy, debt free, dance!
Monday, January 30, 2012
Top 5 things to do with your tax refund
I personally am not a huge fan of getting a tax refund. LET ME EXPLAIN before you start thinking I am crazy...
I'd rather have the RIGHT amount of taxes taken out each month. That way I have a little bit more money to work with on a monthly basis instead of getting a big check at one time and trying to do something super productive with it.
here's the top 5 things you can do with your tax refund.
1. Pay off debt. Duh. Obviously THIS should come first. If you have debt, use this money to pay it off.
2. If you do NOT have debt then KUDOS to you :) But this would be a great way to start your emergency fund. No matter how big or small the check is--this is the perfect way to jump start your emergency fund. This is always a hard step for people... putting back that money every month is hard for a lot of people especially when it's just 20 bucks here, 15 there, etc. SO, by putting your tax refund in savings you can see a nice chunk which makes it easier to put more money back. (It's a mental thing...trust me.)
3. If you have no debt, plus your emergency fund you could always begin the 3 months worth of bills savings account. This would be your NEXT step on your financial journey and your debt free life.
4. Let's say you have ALL of these steps completed or MOSTLY completed... maybe this would be the perfect time to take your family on a vacation, or a weekend trip with the hubs, OR, just MAYBE you have worked really hard to get your self into a financially free situation and you deserve a spa day and a new outfit. :) I'm ALL for rewarding myself for good behavior!
5. Lastly... maybe this would be a good time to get a jump start on NEXT years taxes. Use this money for donation purposes, for tithing, for giving to charity--anything that would give you a jump on next years taxes and give you a nice break.
there ya go--the top 5 things to do with your tax refund.
And if you OWE money on your taxes, well, that will be another post :)
I'd rather have the RIGHT amount of taxes taken out each month. That way I have a little bit more money to work with on a monthly basis instead of getting a big check at one time and trying to do something super productive with it.
here's the top 5 things you can do with your tax refund.
1. Pay off debt. Duh. Obviously THIS should come first. If you have debt, use this money to pay it off.
2. If you do NOT have debt then KUDOS to you :) But this would be a great way to start your emergency fund. No matter how big or small the check is--this is the perfect way to jump start your emergency fund. This is always a hard step for people... putting back that money every month is hard for a lot of people especially when it's just 20 bucks here, 15 there, etc. SO, by putting your tax refund in savings you can see a nice chunk which makes it easier to put more money back. (It's a mental thing...trust me.)
3. If you have no debt, plus your emergency fund you could always begin the 3 months worth of bills savings account. This would be your NEXT step on your financial journey and your debt free life.
4. Let's say you have ALL of these steps completed or MOSTLY completed... maybe this would be the perfect time to take your family on a vacation, or a weekend trip with the hubs, OR, just MAYBE you have worked really hard to get your self into a financially free situation and you deserve a spa day and a new outfit. :) I'm ALL for rewarding myself for good behavior!
5. Lastly... maybe this would be a good time to get a jump start on NEXT years taxes. Use this money for donation purposes, for tithing, for giving to charity--anything that would give you a jump on next years taxes and give you a nice break.
there ya go--the top 5 things to do with your tax refund.
And if you OWE money on your taxes, well, that will be another post :)
Monday, January 23, 2012
Financial book review
I am currently reading Does this make my assets look fat? It's a TERRIFIC book for any woman that is wanting to get her finances in order with the help of a woman.
Basically it takes the concept of food and dietiting and uses it to explain financial aspects. From budgeting, investing, bonds, etc... this book is TERRIFIC!
I love reading about financial topics so of course i like it simply for that reason, but the book itself is written in a witty, yet informative way that would allow any woman to easily read this book and gain understanding.
Check it out... you will be glad you did!
Basically it takes the concept of food and dietiting and uses it to explain financial aspects. From budgeting, investing, bonds, etc... this book is TERRIFIC!
I love reading about financial topics so of course i like it simply for that reason, but the book itself is written in a witty, yet informative way that would allow any woman to easily read this book and gain understanding.
Check it out... you will be glad you did!
Wednesday, November 16, 2011
While living debt free...
or ALMOST debt free, there is still financial things to contemplate.
Do you pay off your credit cards and pay them off like Dave Ramsey suggests? I love that man, and I can't stand that man. read more of my love-hate relationship with the Ramsey man here and here.
My point... if you are working to build credit, mantain good credit and keep a constant run on your credit then you MUST use credit cards. i know Dave Ramsey would die if he read this, but I hate to tell him that I am right. Take it from someone that is credit conscious and keeps an eye on my credit often, you have to use them some.
So while you are paying off debt, be careful before you throw the cards away or in the shredder. Pick one thing a month that you charge. For me, it's been my water bill. I charge it every month, get the bill from my credit card and then pay it. No interest charged, but for that month i got a "1" on my credit report. That's a GOOD thing.
Live debt free. do NOT be chained to the chairs of debt, but be smart about keeping your credit looking sharp and clean. you don't want to pay off debt, and then stop using any form of credit for 10 years and then go try to buy a house. the bank will NOT lend you the money because of the lapse in your credit report (that and other reasons like how the banks aren't giving money away period these days).
Be smart about it.
Any suggestions?
Do you pay off your credit cards and pay them off like Dave Ramsey suggests? I love that man, and I can't stand that man. read more of my love-hate relationship with the Ramsey man here and here.
My point... if you are working to build credit, mantain good credit and keep a constant run on your credit then you MUST use credit cards. i know Dave Ramsey would die if he read this, but I hate to tell him that I am right. Take it from someone that is credit conscious and keeps an eye on my credit often, you have to use them some.
So while you are paying off debt, be careful before you throw the cards away or in the shredder. Pick one thing a month that you charge. For me, it's been my water bill. I charge it every month, get the bill from my credit card and then pay it. No interest charged, but for that month i got a "1" on my credit report. That's a GOOD thing.
Live debt free. do NOT be chained to the chairs of debt, but be smart about keeping your credit looking sharp and clean. you don't want to pay off debt, and then stop using any form of credit for 10 years and then go try to buy a house. the bank will NOT lend you the money because of the lapse in your credit report (that and other reasons like how the banks aren't giving money away period these days).
Be smart about it.
Any suggestions?
Tuesday, February 1, 2011
Ramsey style
As many of you already know I have a love-hate relationship with Dave Ramsey. He is a financial genious in my opinion, but he makes me crazy because he puts a kink in my plan sometimes! :)
If you have not already, I encourage you to read "The Total Money Makeover" by Dave Ramsey. This book is full of a very simple plan. Now just because I said simple does NOT mean its a quick plan. Don't let those two things get confused. I do best when talking about crockpots because that is my main source of cooking. :) I google "Simple crockpot recipes" on a regular basis. These recipes just involve a few things to sprinkle in, pour in, and you chunk your meat in as well. Put the lid on, turn it on low and leave the house for 8 hours, come home and eat. Its SIMPLE...but not quick. So I don't want you to begin the process thinking that by simple I mean quick. Okay, glad we got THAT out of the way.
Dave Ramsey does not play games. He tells it like it is. Quit spending, start saving, sell everything from your clothes to plasma and put that money away!
I have always been good at getting to the FIRST step of Dave Ramsey's plan... and that is to save $1000. That part always comes easy, but then somethign happens and I need some of the money and I am always starting over. BUT... get that part out of the way. Save that money! It makes you feel so good when you do. I saved that money in less than 3 months. I was saving completely on my own, being solely dependant for all my bills so this was ME buckling down. This was me selling some leftover furniture that I needed to get rid of, having a yard sale, not keeping ANY extra money out of my paychecks to spend but transferring it ALL into savings. It CAN be done. So start with that.
We will get into the other steps later...right now I want you to save $1,000 bucks and go to your local library and check out "THE TOTAL MONEY MAKEOVER". Don't buy it... wouldn't that defeat the purpose!? :)
**Side note... since Jere and I BOTH work, we BOTH are going to save $1,000. So our emergency fund has just been doubled but its only fitting since we rely on two incomes.**
If you have not already, I encourage you to read "The Total Money Makeover" by Dave Ramsey. This book is full of a very simple plan. Now just because I said simple does NOT mean its a quick plan. Don't let those two things get confused. I do best when talking about crockpots because that is my main source of cooking. :) I google "Simple crockpot recipes" on a regular basis. These recipes just involve a few things to sprinkle in, pour in, and you chunk your meat in as well. Put the lid on, turn it on low and leave the house for 8 hours, come home and eat. Its SIMPLE...but not quick. So I don't want you to begin the process thinking that by simple I mean quick. Okay, glad we got THAT out of the way.
Dave Ramsey does not play games. He tells it like it is. Quit spending, start saving, sell everything from your clothes to plasma and put that money away!
I have always been good at getting to the FIRST step of Dave Ramsey's plan... and that is to save $1000. That part always comes easy, but then somethign happens and I need some of the money and I am always starting over. BUT... get that part out of the way. Save that money! It makes you feel so good when you do. I saved that money in less than 3 months. I was saving completely on my own, being solely dependant for all my bills so this was ME buckling down. This was me selling some leftover furniture that I needed to get rid of, having a yard sale, not keeping ANY extra money out of my paychecks to spend but transferring it ALL into savings. It CAN be done. So start with that.
We will get into the other steps later...right now I want you to save $1,000 bucks and go to your local library and check out "THE TOTAL MONEY MAKEOVER". Don't buy it... wouldn't that defeat the purpose!? :)
**Side note... since Jere and I BOTH work, we BOTH are going to save $1,000. So our emergency fund has just been doubled but its only fitting since we rely on two incomes.**
Tuesday, October 26, 2010
RAMSEY to the rescue!
Yes, my love-hate relationship with Dave Ramsey is NO secret to the world. The man makes perfect sense…and makes me crazy at the same time. I guess I am quirky like that. If you haven’t read any of his books or googled him then I suggest you do that. He is pretty much a stickler…he doesn’t bend much. You do what he says, when he says it, and life will be grand…well, I just don’t see it that way. I take what he says and make it my own which probably why I am not living debt free just yet.
The first to being super cool like Dave Ramsey is to save up $1,000 in an emergency fund. Easier said than done… I have the attention span of a 4 year old. I get bored easy. I get excited about tackling something and then get over it PRETTY darn quick. SO… I knew this was a step I was going to have to do and FAST! Otherwise I would lose interest in the whole thing and give up and go shop with whatever money I had saved. My point is…this has to be done fast!!!
EVERYONE says “Its easy to save money if you actually HAVE money.” I said it too. Here’s the deal though…you DO have it. I began writing down every single dime I spent in a month. WOW, I must be rich b/c I SURE did spend a lot of money on random stuff. I gave that up for 3 months. I didn’t stop and get a coke, (unless of course I found change in the trunk of my car or in a seat cushion somewhere), didn’t rent a movie unless I had a free coupon code, didn’t get grab lunch anywhere, didn’t go “looking” at the mall (we ALL know how that ends up)… I basically didn’t do anything. Sounds rather boring right? NOPE! WRONG! I had some free coupon codes to rent movies off of Dish, I brought out my SATC collection and started over at Season 1. We went to the park, went shootin’ guns, cleaned and organized my house, blogged, cooked more meals at home…honestly I didn’t even miss those things I just KNEW I couldn’t give up. And in 3 months I have EXACTLY $1,000 in my savings account. Didn’t even take long. I went to Walmart with a LIST and bought ONLY those things. I had a yard sale and put the money in savings, paid my bills and didn’t keep any fun money out. But MY OH MY how it paid off.
$1000 isn’t a lot of money to most people….but to me it seemed like the IMPOSSIBLE task. And I have completed it…
But with every prize comes a punishment… I need a part for my car. Something about a “wheel bearing” or “Ball bearing”… I dunno. All I heard was “thats gonna run you $261.47.” Well, Dave Ramsey would say “Duh Cara. thats why you saved $1,000. Its for emergencies and this qualifies.” BUT… I asked the car fixer guy just how long before it HAD to be repaired. He told me I had a month or so on it. So… now that my money is saved in my emergency fund I am NOW saving for my car repair and I am only 1 paycheck away from having the money to pay CASH for this part that I need. I’m not excited to see that cash in my envelope stash and know that I will have NOTHING awesome to show for it. I’d MUCH rather finish Christmas shopping, or plan a weekend get away with Jere and Ava. Its funny because the DAY before I found out about my car needing repaired I had been looking up weekend prices in Eureka Springs. For 2 nights at a bed and breakfast in Eureka would have been $281. Grrr… talk about dissapointing. However, my emergency fund will not be used on that weekend get away.
Its life. Everythings expensive. I am always a day later and a dollar short…but I am trying. Thats all I can do.
So…moral of today’s lesson would be…??? Start saving. honestly, I am so pumped to see that money in my savings account. Like, I DID that. I worked hard, was patient and used restraint by not going to the mall. Now THATS a reason to smile.
The first to being super cool like Dave Ramsey is to save up $1,000 in an emergency fund. Easier said than done… I have the attention span of a 4 year old. I get bored easy. I get excited about tackling something and then get over it PRETTY darn quick. SO… I knew this was a step I was going to have to do and FAST! Otherwise I would lose interest in the whole thing and give up and go shop with whatever money I had saved. My point is…this has to be done fast!!!
EVERYONE says “Its easy to save money if you actually HAVE money.” I said it too. Here’s the deal though…you DO have it. I began writing down every single dime I spent in a month. WOW, I must be rich b/c I SURE did spend a lot of money on random stuff. I gave that up for 3 months. I didn’t stop and get a coke, (unless of course I found change in the trunk of my car or in a seat cushion somewhere), didn’t rent a movie unless I had a free coupon code, didn’t get grab lunch anywhere, didn’t go “looking” at the mall (we ALL know how that ends up)… I basically didn’t do anything. Sounds rather boring right? NOPE! WRONG! I had some free coupon codes to rent movies off of Dish, I brought out my SATC collection and started over at Season 1. We went to the park, went shootin’ guns, cleaned and organized my house, blogged, cooked more meals at home…honestly I didn’t even miss those things I just KNEW I couldn’t give up. And in 3 months I have EXACTLY $1,000 in my savings account. Didn’t even take long. I went to Walmart with a LIST and bought ONLY those things. I had a yard sale and put the money in savings, paid my bills and didn’t keep any fun money out. But MY OH MY how it paid off.
$1000 isn’t a lot of money to most people….but to me it seemed like the IMPOSSIBLE task. And I have completed it…
But with every prize comes a punishment… I need a part for my car. Something about a “wheel bearing” or “Ball bearing”… I dunno. All I heard was “thats gonna run you $261.47.” Well, Dave Ramsey would say “Duh Cara. thats why you saved $1,000. Its for emergencies and this qualifies.” BUT… I asked the car fixer guy just how long before it HAD to be repaired. He told me I had a month or so on it. So… now that my money is saved in my emergency fund I am NOW saving for my car repair and I am only 1 paycheck away from having the money to pay CASH for this part that I need. I’m not excited to see that cash in my envelope stash and know that I will have NOTHING awesome to show for it. I’d MUCH rather finish Christmas shopping, or plan a weekend get away with Jere and Ava. Its funny because the DAY before I found out about my car needing repaired I had been looking up weekend prices in Eureka Springs. For 2 nights at a bed and breakfast in Eureka would have been $281. Grrr… talk about dissapointing. However, my emergency fund will not be used on that weekend get away.
Its life. Everythings expensive. I am always a day later and a dollar short…but I am trying. Thats all I can do.
So…moral of today’s lesson would be…??? Start saving. honestly, I am so pumped to see that money in my savings account. Like, I DID that. I worked hard, was patient and used restraint by not going to the mall. Now THATS a reason to smile.
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