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........
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