Once we were Debt Free (and loving it!), A and I decided that we should "Pay It Forward" to our friends and family. The best way we figured we could do this was to get everybody to read "The Total Money Makeover" and came up with the idea to purchase books to pass on to people. We waited until they went on sale and purchased five copies of the book and started handing them out to anybody who asked or anybody who listened to our experience and wanted to be debt free, too.
Our rules: Take the book and keep it as long as you needed to but you needed to be working on getting debt free and building wealth. Once you were debt free (or bought your own copy), you could pass it on to somebody else or return it to us. However, if you were not actively doing The Total Money Makeover, you needed to return the book to us, so we could pass it on to somebody who would use it.
As of today, all five copies of the books our on loan! I hope they are all getting closer to that debt free success!
Wednesday, June 2, 2010
Thursday, April 15, 2010
ELP's??
The first time my husband said, "We need to contact an insurance ELP", my reaction was...."What the heck are you talking about?". ELP stands for Endorsed Local Provider and they are WONDERFUL!!! These are professionals that Dave Ramsey recommends for certain types of business (Insurance, Investing, Real Estate, Taxes, etc.) and these people must have "the heart of a teacher" as Dave puts it.
Our first visit with an ELP was with our new insurance agent. It was a different experience working with him because you could tell he really cared about his clients and was not just out to make a buck. Plus, he ended up saving us over $500 a year on our insurance and we got more coverage! Our second visit was with an Investment Agent and he was also wonderful to work with. The plus is that these professionals are going through (or have gone through) the Financial Peace University and know exactly what you are talking about and looking for.
I would recommend checking out a local ELP to see what they can do for you. You can find the information on Dave's site. It is on the homepage on the right hand side.
Our first visit with an ELP was with our new insurance agent. It was a different experience working with him because you could tell he really cared about his clients and was not just out to make a buck. Plus, he ended up saving us over $500 a year on our insurance and we got more coverage! Our second visit was with an Investment Agent and he was also wonderful to work with. The plus is that these professionals are going through (or have gone through) the Financial Peace University and know exactly what you are talking about and looking for.
I would recommend checking out a local ELP to see what they can do for you. You can find the information on Dave's site. It is on the homepage on the right hand side.
My Fancy Envelope System....
Here it is, my fancy envelope system. Actually, it is the Financial Peace University Deluxe Wallet Envelope System. They no longer carry this specific wallet, but you can see what else they offer in Envelope Systems. I was lucky and caught this on sale for $10.00, so keep an eye out for that!
The wallet has a built in envelope system. As you can see from the picture, mine has a bit of cash and a TON of coupons in it. And, no....those are not credit cards! There is not a spot for credit cards, but there are spots for debit cards, grocery cards and insurance cards.
I love this wallet and it is much easier to handle than a ton of envelopes or a coupon holder.
The wallet has a built in envelope system. As you can see from the picture, mine has a bit of cash and a TON of coupons in it. And, no....those are not credit cards! There is not a spot for credit cards, but there are spots for debit cards, grocery cards and insurance cards.
I love this wallet and it is much easier to handle than a ton of envelopes or a coupon holder.
Wednesday, March 10, 2010
But What About Your Credit Score?
This is a question that a few people have asked me. "How is closing all of your credit cards and paying off all of your debt affecting your credit score?....Doesn't it hurt it?".
Well, so far it really hasn't done much to our credit score as we still have a mortgage. We had a great (I Love Debt) score when we started this program and I am sure that as time goes by and we have no credit sitting out there, it will go down. How sad that our credit score is based on how much credit and debt we have out there and not on how much we DON'T have? Your FICO score is based on having debt and making regular payments to the bank, not how wealthy you are, or your ability to repay a loan.
However, we are not worried. Why? Because we will NEVER take out another loan besides a mortgage and we will have no problem with that. That is your goal with doing this program: pay off your debt and never have any again!! How sweet is that?
What about a new car? New furniture? We are planning to drive our cars for as long as we can and until that time, we have a "Car Replacement" fund in our budget and a "Furniture Replacement" fund. We just keep building it up and someday when we need a new car (or should I say slightly used car) or some new furniture we will hand over cash. And, we hear that paying with cash can sometimes get you a nice deal!
So, if you are truly wanting to become and stay debt free...don't worry about that dumb I Love Debt (FICO) score!
Click here for a video about driving free cars for life
Well, so far it really hasn't done much to our credit score as we still have a mortgage. We had a great (I Love Debt) score when we started this program and I am sure that as time goes by and we have no credit sitting out there, it will go down. How sad that our credit score is based on how much credit and debt we have out there and not on how much we DON'T have? Your FICO score is based on having debt and making regular payments to the bank, not how wealthy you are, or your ability to repay a loan.
However, we are not worried. Why? Because we will NEVER take out another loan besides a mortgage and we will have no problem with that. That is your goal with doing this program: pay off your debt and never have any again!! How sweet is that?
What about a new car? New furniture? We are planning to drive our cars for as long as we can and until that time, we have a "Car Replacement" fund in our budget and a "Furniture Replacement" fund. We just keep building it up and someday when we need a new car (or should I say slightly used car) or some new furniture we will hand over cash. And, we hear that paying with cash can sometimes get you a nice deal!
So, if you are truly wanting to become and stay debt free...don't worry about that dumb I Love Debt (FICO) score!
Click here for a video about driving free cars for life
Baby Step Two....
Sorry it has taken me so long to get to this post....
So, we have done our budget (remember, we do this every time we get a paycheck so we can adjust things but plan for a month at a time), have our envelopes ready, taken the credit cards out of the wallet, and are ready to start this Debt Snowball thing full swing.
The one thing about Baby Step Two that may people don't get when I talk to them is the concept of paying your smallest debt off first even if the interest is lower than your higher debt. People want to get rid of that high interest debt, but doing it this way keeps your motivation going strong! Dave says that financial success is 80% behavior and 20% know how. You see things happening. One small debt gets paid off, so you take that money and pay off the next one and so on and so on. Get it...Debt Snowball!
Now, that being said..we did not exactly follow that rule. Yes, it is true! Terrible, isn't it? Haha With our tax return and my husband's incentive pay, we had a good chunk of money after we set aside our $1000 emergency fund. So, we first paid off a small credit card balance we had and then decided to tackle our car loan (both cars are on one loan). This was definitely not our smallest debt, but we paid it off in our second month. What a feeling!!! However, I was a bit stressed about the cars "going under" now that they were paid for. But, so far...so good. (knocking on wood vigorously!) We were lucky to be able to get that loan out of the way, but I do recommend doing it Dave's way. I can see how checking those debt amounts off can keep you going.
Once we had that paid off, we concentrated on a few medical bills by taking money out of our pay checks and putting it in our HSA (Health Savings Account) tax free, then paid the medical bills out of the HSA. Then we finalized our debt payment with my student loans. It was hard being on this budget at first, but we got used to it and it felt good to not be wasting all of that money and getting to a point where do don't owe anybody!
We started our Total Money Makeover in March of 2009 and made our last payment July 31, 2009. I still can't believe we did it in five months, but we did and we are proud! You need to stick to it. Don't give up. Like Dave Ramsey says: this is guaranteed to work, if you DO it. And, you can.
I was lucky enough that I didn't have to get a job, but I did save money by using coupons, selling items and just determining what our wants and needs truly were.
It does really help to sit down and itemize what you are going to spend that month. Don't just say, "I have X amount of money this month" and try to make it last. Write it down. How much goes towards groceries, entertainment, gas, debt, giving, etc. By keeping track of it, you can see where adjustments need to be made.
Soon I will show you my fancy envelope system that I currently use....
Here is our debt snowball!
So, we have done our budget (remember, we do this every time we get a paycheck so we can adjust things but plan for a month at a time), have our envelopes ready, taken the credit cards out of the wallet, and are ready to start this Debt Snowball thing full swing.
The one thing about Baby Step Two that may people don't get when I talk to them is the concept of paying your smallest debt off first even if the interest is lower than your higher debt. People want to get rid of that high interest debt, but doing it this way keeps your motivation going strong! Dave says that financial success is 80% behavior and 20% know how. You see things happening. One small debt gets paid off, so you take that money and pay off the next one and so on and so on. Get it...Debt Snowball!
Now, that being said..we did not exactly follow that rule. Yes, it is true! Terrible, isn't it? Haha With our tax return and my husband's incentive pay, we had a good chunk of money after we set aside our $1000 emergency fund. So, we first paid off a small credit card balance we had and then decided to tackle our car loan (both cars are on one loan). This was definitely not our smallest debt, but we paid it off in our second month. What a feeling!!! However, I was a bit stressed about the cars "going under" now that they were paid for. But, so far...so good. (knocking on wood vigorously!) We were lucky to be able to get that loan out of the way, but I do recommend doing it Dave's way. I can see how checking those debt amounts off can keep you going.
Once we had that paid off, we concentrated on a few medical bills by taking money out of our pay checks and putting it in our HSA (Health Savings Account) tax free, then paid the medical bills out of the HSA. Then we finalized our debt payment with my student loans. It was hard being on this budget at first, but we got used to it and it felt good to not be wasting all of that money and getting to a point where do don't owe anybody!
We started our Total Money Makeover in March of 2009 and made our last payment July 31, 2009. I still can't believe we did it in five months, but we did and we are proud! You need to stick to it. Don't give up. Like Dave Ramsey says: this is guaranteed to work, if you DO it. And, you can.
I was lucky enough that I didn't have to get a job, but I did save money by using coupons, selling items and just determining what our wants and needs truly were.
It does really help to sit down and itemize what you are going to spend that month. Don't just say, "I have X amount of money this month" and try to make it last. Write it down. How much goes towards groceries, entertainment, gas, debt, giving, etc. By keeping track of it, you can see where adjustments need to be made.
Soon I will show you my fancy envelope system that I currently use....
| Debt | Balance | Min. Payment | ||
| Credit Card 1 | $505.27 | $20.00 | ||
| Medical 1 | $1,170.00 | $65.00 | ||
| Credit Card 2 | $1,268.46 | $40.00 | ||
| Student 1 | $1,444.32 | $50.00 | ||
| Credit Card 3 | $2,030.43 | $50.00 | ||
| Medical 2 | $2,440.00 | $175.00 | ||
| Student 2 | $3,039.14 | $54.32 | ||
| Auto | $12,797.97 | $780.44 | ||
| Total | $24,695.59 | $1,234.76 |
Saturday, February 27, 2010
"Where did you cut your budget the most?"...
That is probably the one question I have been asked over and over again...."where did we make the biggest cut to our budget". The answer....ENTERTAINMENT!!!! Yep, that is the way to go.
Our entertainment budget includes: movies (theater and rental), eating out, taking our son places, books, nights away, etc. In our mind, anything that is not a necessity. We love to go out to eat, so that was the biggest cut. And, we did not miss it much. We actually felt better eating at home and the savings were incredible! You forget how much going out to dinner (or even lunch) adds up on a daily basis. I think at one time, we went about three weeks without eating out once. We still did have money on our entertainment budget, so we could go out once in awhile.
I also stopped going places with C and did more at home. I said earlier in another post that we were supposed to go to Monkey Bizness one time and could not because we didn't have money in the budget. It was hard to not go, but necessary.
And, it doesn't last forever. Now, that we have paid off the debt and have our emergency fund in place, we do try to go out a little bit more, but we still reign it in. It is nowhere near what we used to do!
I know..it will be hard, but if you are determined to become debt free things will have to change. You have to cut back on dinner out, movie nights and activities with your children may be few and far between, and trips away will have to go away, but remember that someday you will be debt free and be able to "Live Like No One Else". In my mind, dinner at an expensive restaurant is much less important than retiring comfortably and putting my son through college.
Our entertainment budget includes: movies (theater and rental), eating out, taking our son places, books, nights away, etc. In our mind, anything that is not a necessity. We love to go out to eat, so that was the biggest cut. And, we did not miss it much. We actually felt better eating at home and the savings were incredible! You forget how much going out to dinner (or even lunch) adds up on a daily basis. I think at one time, we went about three weeks without eating out once. We still did have money on our entertainment budget, so we could go out once in awhile.
I also stopped going places with C and did more at home. I said earlier in another post that we were supposed to go to Monkey Bizness one time and could not because we didn't have money in the budget. It was hard to not go, but necessary.
And, it doesn't last forever. Now, that we have paid off the debt and have our emergency fund in place, we do try to go out a little bit more, but we still reign it in. It is nowhere near what we used to do!
I know..it will be hard, but if you are determined to become debt free things will have to change. You have to cut back on dinner out, movie nights and activities with your children may be few and far between, and trips away will have to go away, but remember that someday you will be debt free and be able to "Live Like No One Else". In my mind, dinner at an expensive restaurant is much less important than retiring comfortably and putting my son through college.
Wednesday, February 24, 2010
Earning some decent interest....
You can earn interest on a free checking account! Really!! We are currently doing just that. Go to Checking Finder and search for a bank that pays some good interest. Make sure to research thoroughly and see that you can meet all of the accounts requirements.
Our account requires us to have a minimum number (10) of debit card transactions (so you may want to wait on this until you decide to move away from using just cash...if you decide to do that), an automatic deposit, sign up for electronic statements, and access your account online once a month. We kept our local account for cashing and depositing checks and then we do an online transfer to the out of state bank with the high interest checking. Works out great!
It is nice to earn 3% or more rather than .5%!!! Especially, when that emergency fund grows!
Ok..I promise my next post will be about our Baby Step Two adventure. I just need to get some details from the hubby!
Our account requires us to have a minimum number (10) of debit card transactions (so you may want to wait on this until you decide to move away from using just cash...if you decide to do that), an automatic deposit, sign up for electronic statements, and access your account online once a month. We kept our local account for cashing and depositing checks and then we do an online transfer to the out of state bank with the high interest checking. Works out great!
It is nice to earn 3% or more rather than .5%!!! Especially, when that emergency fund grows!
Ok..I promise my next post will be about our Baby Step Two adventure. I just need to get some details from the hubby!
Sell, Sell, Sell!
Another way that Dave Ramsey suggests bringing in some cash during your Debt Snowball adventure is to sell stuff. So, that is what we decided to do.
It started when a friend of mine mentioned a HUGE children's consignment sale that happens in our town twice a year. I had a ton of baby stuff, clothes and toys and they were in great condition. I decided to put some work into it and put them in the sale. We did pretty good. That brought us in almost $100 and every little bit helps.
That got me in the selling mood. For awhile, everything was in danger of being up for sale (even the dog and the kid at times! haha). Actually, Dave says to do just that..well, not sell your kids, but "Sell so much that your kids think they are next!". I would literally walk around the house and see something that I thought I could get a good price for and put it on Craigslist. Not only was it nice to be bringing in money to help pay off our debt, but it was clearing out all of the clutter in this house! I am amazed at how fast it can all build up.
We also did a garage sale and that was kind of a bust. Well, I say that but we did take in $300. However, I have had more successful ones in the past. I plan on having another one this year and am going to follow the advice of the Garage Sale Lady that was on Dave's show one time. She said not to price anything and you make more money. I will let you know how that goes!
I am still selling. I am preparing for the March consignment sale, have clothes at a consignment store, listing items on Craigslist and getting ready for that spring garage sale.
And, don't only sell...save money by purchasing your kids clothing at consignment stores and sales!!
It started when a friend of mine mentioned a HUGE children's consignment sale that happens in our town twice a year. I had a ton of baby stuff, clothes and toys and they were in great condition. I decided to put some work into it and put them in the sale. We did pretty good. That brought us in almost $100 and every little bit helps.
That got me in the selling mood. For awhile, everything was in danger of being up for sale (even the dog and the kid at times! haha). Actually, Dave says to do just that..well, not sell your kids, but "Sell so much that your kids think they are next!". I would literally walk around the house and see something that I thought I could get a good price for and put it on Craigslist. Not only was it nice to be bringing in money to help pay off our debt, but it was clearing out all of the clutter in this house! I am amazed at how fast it can all build up.
We also did a garage sale and that was kind of a bust. Well, I say that but we did take in $300. However, I have had more successful ones in the past. I plan on having another one this year and am going to follow the advice of the Garage Sale Lady that was on Dave's show one time. She said not to price anything and you make more money. I will let you know how that goes!
I am still selling. I am preparing for the March consignment sale, have clothes at a consignment store, listing items on Craigslist and getting ready for that spring garage sale.
And, don't only sell...save money by purchasing your kids clothing at consignment stores and sales!!
Tuesday, February 23, 2010
Let's get the boy involved....
It was not long after we started our money makeover that we decided to start to discipline our son a bit more. Well, not discipline so much as put him to work! My husband had found the Financial Peace Jr kit on the Dave Ramsey site, so we decided to try it out. Once in awhile, the kit will be on sale for $10.00 and that is a great deal! We also tied it into a Melissa and Doug Responsibility Chart that we bought from Amazon.com.
Dave says that kids should be given a "commission" that coordinates with how much they do (work) during the week. The commission should be figured according to their age. A good rule of thumb is $1.00 per year (if you can afford it). Even though our son is four, we are still only doing $3.00 a week for him and he still has weeks where he doesn't get that. Last week...he got $1.25. Not a good week! It all depends on how well he does with his "jobs, responsibilities and his behavior".
Ok..so let's start with the Financial Peace Jr kit. You get two dry erase boards (one for commission tracking and one to display what they are saving for), three envelopes (Give, Save, Spend), a coin purse, a calculator, three magnets and a pledge card.
Like I said, this is tied in with the responsibility board:
Dave says that kids should be given a "commission" that coordinates with how much they do (work) during the week. The commission should be figured according to their age. A good rule of thumb is $1.00 per year (if you can afford it). Even though our son is four, we are still only doing $3.00 a week for him and he still has weeks where he doesn't get that. Last week...he got $1.25. Not a good week! It all depends on how well he does with his "jobs, responsibilities and his behavior".
Ok..so let's start with the Financial Peace Jr kit. You get two dry erase boards (one for commission tracking and one to display what they are saving for), three envelopes (Give, Save, Spend), a coin purse, a calculator, three magnets and a pledge card.
One of the boards and the envelopes...
The calculator and pledge card.
We have three chores on his Commission board. They are feed Ozzie (in the evening), Pick Up Toys and Get 25 Magnets. He gets 25 cents for feeding Ozzie and picking up toys and a $1.00 if he gets 25 magnets on his board (see below). We also have penalties: whining, acting up in public and not listening. He loses a quarter each time he does one of these.
Like I said, this is tied in with the responsibility board:
On this board we have things like: Take care of pet (feed Ozzie in the morning), Get Dressed, Stop Whining, Brush Teeth, Set Table, Say Please and Thank You, etc. There are a many more you can use and some blank ones to make up your own. If he gets 25 magnets during the week, he gets a $1.00! It has worked GREAT with behavior. Although, there are days we do wonder about that. :0)
So, say he gets $3.00 one week. My husband gives him his commission on Sunday and he has to split it up between his envelopes. First he has to Give, then Save and then he can pick some to spend the upcoming week. We always put a quarter in Give. Last Christmas, he was able to purchase a toy for Toys For Tots and was so proud!
Since we started this, our son has purchased (with his own money): three Leapster games, a Smart Cycle game, Thomas the Train pieces, a Webkinz and a few other things. He likes to use his weekly "Spend" money on Icee's and gum. Oh...to be young again!
I remember the day I realized that "he got it". He was playing Leapster with a friend of his and asked him if he bought his games with his own money. When his friend said no, our little saver said, "I did! I bought it all by myself".
It is never too early to start to teach them about money!!
Monday, February 22, 2010
From, "I'll take it!" to "Let me see if I have coupon for that."...
Since I was not going to find a part time job (really? I already work full time running this house), I wanted to find a way to save money here and there. The first thing I tackled was the grocery bill. Mr. Ramsey recommends a site called "The Coupon Mom" and I figured it was time to check it out. (Coupon Mom kind of reminds of Lynette from Desperate Housewives..see below) The site is free and is all about saving your coupon fliers you get from the Sunday paper, organizing them by date and then the site checks the weekly sales for your local stores to help you save. It takes some time, but it is worth it. There is also a book available at your local library from the person who runs Coupon Mom.
Following this plan has saved us some good money. The highest savings I had at Safeway one time was 68%! Not too shabby!! Best deal: four pack pudding snack for 25 cents! I remember handing over all of my coupons that day and getting "the look" from the lady behind me. That look lasted until the clerk gave me my total and the woman in line saw my cart full of groceries! Oh, yeah!! Take that!!!
We also look for the deals on certain items and stock up when they are at their cheapest prices. At the moment, I have a freezer full of chicken and ground beef we bought at GREAT prices!! Don't miss out on these. Stocking up during those sales will save you money.
Getting the grocery bill down has become a kind of fun game for me...a challenge. How much can I save????? And, most importantly...do I really need this even though it is on sale?
There is another site that many of my friends use called "The Grocery Game". The site is the same concept, but there is a small fee attached to the Grocery Game site. However, some people prefer that site over Coupon Mom. I say, try both and use the one you will USE!! That is the most important part. Do the program. It will save you money.
Following this plan has saved us some good money. The highest savings I had at Safeway one time was 68%! Not too shabby!! Best deal: four pack pudding snack for 25 cents! I remember handing over all of my coupons that day and getting "the look" from the lady behind me. That look lasted until the clerk gave me my total and the woman in line saw my cart full of groceries! Oh, yeah!! Take that!!!
We also look for the deals on certain items and stock up when they are at their cheapest prices. At the moment, I have a freezer full of chicken and ground beef we bought at GREAT prices!! Don't miss out on these. Stocking up during those sales will save you money.
Getting the grocery bill down has become a kind of fun game for me...a challenge. How much can I save????? And, most importantly...do I really need this even though it is on sale?
There is another site that many of my friends use called "The Grocery Game". The site is the same concept, but there is a small fee attached to the Grocery Game site. However, some people prefer that site over Coupon Mom. I say, try both and use the one you will USE!! That is the most important part. Do the program. It will save you money.
Coupon Mom
Lynette Scavo...see??
So, the journey begins..
I am going to try to be as accurate as possible with this story. My hubby may chime in to correct me on things. He kept us organized and did the budget because he is "the numbers guy".
Our little adventure (little..haha) started around March 2009. We had gotten our taxes done and were trying to decide what to do with the money. Part of it was going to go towards our five week stay in Michigan that summer. Rent can add up fast! So, what to do with the rest? Hmmm....he had Lasik the year before. Maybe it was my turn? No such luck. Like I would do it anyway!
My husband (known as A from this point on) had been talking to a co-worker of his about this crazy guy, Dave Ramsey. He had this idea that people should save up a small emergency fund, work on paying off their debt (except for the mortgage) and so on and so on. The plan...do it using cash and get rid of those credit cards! WHAT??? But, we have a card we use and pay it off every month AND we get a rebate!! Are you crazy? A's co-worker and wife were following the "The Total Money Makeover" plan and doing well, so we talked and decided it would be a great idea to try it. We knew it was going to be hard. After all, we like to eat out and that would be a major cut!!
We got our first Dave Ramsey book, "The Total Money Makeover" from the library and started the plan. My numbers guru of a husband worked on our budget. We have always had our budget on an Excel spreadsheet, but he just tweaked it a bit. It was all about giving ourselves a limit for each category each month (Groceries, Entertainment, Gifts, Car, Clothes, etc.). Once we were set, we stopped using the credit card and went to cash. I first tried the paper envelope system, but could not handle all those dang things! Seriously, it was a pain in the butt. So, we picked up a coupon holder and set it up as our "envelopes". Even that was just a joy to tote around (sarcasm inserted here). I have to admit, it was a strange, yet great feeling paying for my groceries in CASH!! It was so unheard of!! And, it does cut down on the wants vs. needs.
Our little adventure (little..haha) started around March 2009. We had gotten our taxes done and were trying to decide what to do with the money. Part of it was going to go towards our five week stay in Michigan that summer. Rent can add up fast! So, what to do with the rest? Hmmm....he had Lasik the year before. Maybe it was my turn? No such luck. Like I would do it anyway!
My husband (known as A from this point on) had been talking to a co-worker of his about this crazy guy, Dave Ramsey. He had this idea that people should save up a small emergency fund, work on paying off their debt (except for the mortgage) and so on and so on. The plan...do it using cash and get rid of those credit cards! WHAT??? But, we have a card we use and pay it off every month AND we get a rebate!! Are you crazy? A's co-worker and wife were following the "The Total Money Makeover" plan and doing well, so we talked and decided it would be a great idea to try it. We knew it was going to be hard. After all, we like to eat out and that would be a major cut!!
We got our first Dave Ramsey book, "The Total Money Makeover" from the library and started the plan. My numbers guru of a husband worked on our budget. We have always had our budget on an Excel spreadsheet, but he just tweaked it a bit. It was all about giving ourselves a limit for each category each month (Groceries, Entertainment, Gifts, Car, Clothes, etc.). Once we were set, we stopped using the credit card and went to cash. I first tried the paper envelope system, but could not handle all those dang things! Seriously, it was a pain in the butt. So, we picked up a coupon holder and set it up as our "envelopes". Even that was just a joy to tote around (sarcasm inserted here). I have to admit, it was a strange, yet great feeling paying for my groceries in CASH!! It was so unheard of!! And, it does cut down on the wants vs. needs.
Our First "Envelope" System.
I have since upgraded to a "fancier, schmancier" one and will post later.
With our budget set, our credit cards out of the wallets and the lovely coupon holder in my purse, we stuck to what we planned and worked on Baby Step One which is saving up a $1000 emergency fund. I can't remember the exact amount of time it took to hit that first step, but it did not take long. I will update with that time frame. I remember when we were on this step, I had planned a trip to Little Monkey Bizness with some friends and had to cancel last minute. No money left in the Entertainment Fund. :0( That is when it hit me. This is really going to change things.
To be continued........
Here we go....
Well, not really. Honestly, we have already become debt free, have saved up our six month emergency fund and are now on our way to investing for retirement and college for our son. However, we still have a ways to go and it is not time to LIVE IT UP, yet.
I am hoping to use this blog to share our story of how we are becoming debt free and the struggles and achievements we accomplish along the way. It has had its ups and downs...I have cried over not being able to get my hair done or buying a shirt (well, not really cried..but I was pretty ticked off), but I know it will all be worth it in the end.
The best part of all of this has been the inspiration we have become for many of our friends and family members to jump on the bandwagon!
So, my next post will be the story of how this crazy year started. Stay tuned and thanks for stopping by!!
I am hoping to use this blog to share our story of how we are becoming debt free and the struggles and achievements we accomplish along the way. It has had its ups and downs...I have cried over not being able to get my hair done or buying a shirt (well, not really cried..but I was pretty ticked off), but I know it will all be worth it in the end.
The best part of all of this has been the inspiration we have become for many of our friends and family members to jump on the bandwagon!
So, my next post will be the story of how this crazy year started. Stay tuned and thanks for stopping by!!
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