New Release Review: Scouting the Single Dad by Sara Ney
33 minutes ago
Showing posts with label money. Show all posts
Showing posts with label money. Show all posts
Tuesday, August 9, 2011
Friday, July 29, 2011
Thursday, March 3, 2011
Reader Poll: Your Kid's First Car
So I'm gathering your opinions for a future money-themed post on teens and cars. I'd love to hear your thoughts! I've already gotten some great responses from twitter pals. A lot of your answers are "Yes, but..." or "No, but..." And "I don't know" is a valid answer as well. So feel free to elaborate and give any "stipulations" you have regarding your kid's first car. Even if you don't have kids but plan on it someday, what are your thoughts? There's no right or wrong answer here, but it's something we all need to prepare for...
Do you plan to buy your kid's first car?
Saturday, February 19, 2011
Book Review: Rich Dad, Poor Dad
My nerdy side loves reading up on stuff about personal finances. As far as I'm concerned, you can never have too much wisdom in that area, so bring it on! I had heard great things about Robert T. Kiyosaki's "Rich Dad, Poor Dad" so it was hovering at the top of my list of non-fiction goodies to digest this year.
The short of it? I think this is a fantastic read. I really like the overall message of the book, which is how to get out of the rat race of the middle class and start thinking like a rich person. I love this concept because that is exactly why my husband and I are busting our butts right now. Sure, we're broke today, but we're not sitting still. We're heading for rich.
Kiyosaki was raised in Hawaii and tells of how he grew up with two dads, his "rich dad" and his "poor dad." His own father was the "poor" one and the father of his best childhood friend was his "rich" dad. Both were great men, but Kiyosaki was challenged with polarizing views on money and success between the two of them. His poor dad was a big believer in education and the importance of getting a good degree and finding a secure job so you can make a good income. (Is any job really all that secure these days?) His rich dad argued that we need more than education. We aren't taught anything about personal finance in school. (Think about it - when did you ever have a class on how to handle money?) So naturally, any financial education a child receives is left up to his parents. Rich dad maintained that finding a "secure job" was not the answer. Learning about money and how to make it work for YOU is the real solution.
Now Kiyosaki's own father wasn't what we think of as "poor." He wasn't necessarily struggling to put food on the table, but he simply thought like a "poor" person thinks... make the donuts, pay the bills, make the donuts, pay the bills. Never getting any traction, like a mouse in a wheel. He was highly educated and well respected, but found himself in this perpetual rat race. "One of the reasons the rich get richer and the poor get poorer, and the middle class struggles in debt is because the subject of money is taught at home, not in school . . . Schools focus on scholastic and professional skills, but not on financial skills. This explains how smart bankers, doctors and accountants who earned excellent grades in school may still struggle financially all their lives. Our staggering national debt is due in large part to highly educated politicians and government officials making financial decisions with little or no training on the subject of money."
It's often hard for a family with an income of $46,000 (what the average American household makes) to understand how a family making twice that or more struggles living pay check to pay check. "If only we made this much more, than we'd be OK." The truth is, when we make more, we spend more. Dave Ramsey talks about how most Americans take a $300/month raise and immediately turn it into a $400/month car payment. Car payments have become a way of life and are poison to the middle class. They keep the middle class... in the middle class. And that's exactly why the hub and I don't play that game anymore. So it's not all that difficult to imagine how a high income earning doctor or lawyer can get caught up in the race. Make more money, get more stuff. Make MORE money, get bigger better stuff. And on and on...
So obviously, book smarts and lots of letters after your last name mean nothing when it comes to handling money wisely. Hello, I'm a CPA for crying out loud. I was well educated on accounting for money. I learned how to account for different transactions and how they are presented on financial statements and recognized on tax returns. But never in any of my undergraduate or graduate classes did I learn anything about personal finance. Or even wise financial decision-making in business, for that matter. I simply learned how to properly present what's already there. So what we're ultimately left with is what we learned from our own parents. Even if your parents said very little on the subject, you learned a great deal just from watching how they handle money.
My parents were (and still are) very responsible with money. As far as I could tell, they were a good hybrid of savers and spenders. Definitely not hoarders and definitely not over-spenders. And my Dad tried to teach me the importance of saving for retirement. I say *tried* because while I totally understood and agreed with the concept, it wasn't something I was able to get all that excited about at the time. And though I like to think of myself back then (in my teenage years) as being well grounded and self-aware, I know that I, like many young adults these days, felt a sense of entitlement when it came to having stuff. I wasn't a spoiled brat, but I do think I somehow developed this I-deserve-this mentality. A little materialistic? Yeah, probably. My parents were great examples, and I had a few pages out of the manual on being responsible, but I was lacking the motivation to win (not to mention the real definition of winning with money) and the self-discipline to say no. And thus began my early adulthood and early years in marriage... on the quest for stuff (because the accumulation of stuff means you're winning, right?) and continually trying to out-earn our stupidity.
Thankfully, there is a movement to get sound financial education in schools, but much like sex education, parents are ultimately responsible for teaching their children. My gosh, if you teach your kids nothing else, please teach them about money and sex! No two things are more spiritually connected or potentially detrimental. Teaching our (future) kids about money is something the hub and I are SO excited about. We've got lots of great ideas and that's another post for another day, but yes it's something we consider to be extremely important. The fact is, however, most people grow up simply with the "get a good education so you can get a good job" mentality. And that's just not enough. They fall it to the rat race with no hope of escaping.
So what is the "rat race?" Kiyosaki explains that the poor and middle class work for money. And it's fear that keeps most of them working at their jobs - fear of not being able to pay bills, fear of losing their jobs, fear of not having enough. So we therefore become slaves to our money. Slaves to our employers. Along with fear, greed steps in. "Once we get that paycheck, greed or desire starts us thinking about all the wonderful things money can buy. The pattern is then set," taught Kiyosaki's rich dad. "Offer them more money, and they continue the cycle by also increasing their spending. This is what I call the Rat Race."
Rich dad went on to explain that the "rich" have a different worldview. They make money work for them. The book goes into a lot of detail about how the rich focus on money-making assets, having a balance sheet view. Whereas the poor are always focused on the income statement - money going in and money going out. Now, I'm an accountant so all this balance sheet and income statement talk made total sense to me. I don't know how easy it would be to grasp if you don't stare at financial statements all day like I do! But I think it's written in a way that anyone could understand the key points here. One point in particular is that the poor tend to buy liabilities that they think are assets... like cars. That's not to say you shouldn't buy a car! But don't fool yourself into thinking you're investing in an asset. And rich people of course buy cars. But they understand that "stuff" is just stuff. They don't immediately run to buy more and more stuff as their money grows. They understand and practice the concept of delayed gratification. This is a huge distinction between the rich and the poor. Kiyosaki even argues that your own house is not ultimately an asset. True assets earn you money. Your house doesn't earn you money, it costs you money. Even if you own it free and clear, it still costs you. You're not making any money off of it. No, you're continually repairing it and improving it.
The book goes on detailing how differently the rich see things than most of us do. As I mentioned, the rich have a "balance sheet" mentality instead of focusing on income and expenses. The rich pay themselves first. They have very little or no debt. And they understand the importance of giving. Kiyosaki adds, "My rich dad gave lots of money away. . . He knew that to receive money, you had to give money. Giving money is the secret to most great wealthy families." None of this rich-people-thinking was necessarily new information for me (since Dave Ramsey has been drilling it into my head for the last couple of years), but I really loved the author's approach to this concept. At the end of the day, winning with money is largely about behavior rather than know-how. You have to change the way you think.
Where the book leaves me going, "Huh?!" is when Kiyosaki goes into detail on how he personally invests and finds opportunities. He is a huge risk taker, which has often brought about great returns for him. But he's also admittedly gone broke over and over again. OK, I only want to go broke once (been there), figure out what the hell I did wrong (done that) and then never do that again. I don't buy into the idea of making high risk investments and leveraging debt to make quick returns. I'm a crockpot, not a microwave. Sure, I may never see some of the huge payoffs that a big risk-taker sees, but I will avoid the heartache when an investment turns sour. And hell if I'm putting my family's security at risk in an effort to make a quick buck. Building and sustaining wealth takes time. And we certainly won't be using debt as a "tool" to build wealth. So on his investment strategies, I have to say, "not for me, Mr. Kiyosaki."
Investing differences aside, I think the overall premise of the book is excellent. If nothing else, it'll challenge you to think about money in a completely different way and really brings light to the fact that NO ONE is teaching our kids about money. It's a very entertaining and quick read. Yes, there's a good bit of financial jargon in there, but I don't think it's anything the average reader couldn't grasp. Grab this book and get out of the rat race!
Next Up: "Strong Fathers, Strong Daughters" by Meg Meeker, MD
Previous: "Sex and the Soul of a Woman" by Paula Rinehart
The short of it? I think this is a fantastic read. I really like the overall message of the book, which is how to get out of the rat race of the middle class and start thinking like a rich person. I love this concept because that is exactly why my husband and I are busting our butts right now. Sure, we're broke today, but we're not sitting still. We're heading for rich.
Kiyosaki was raised in Hawaii and tells of how he grew up with two dads, his "rich dad" and his "poor dad." His own father was the "poor" one and the father of his best childhood friend was his "rich" dad. Both were great men, but Kiyosaki was challenged with polarizing views on money and success between the two of them. His poor dad was a big believer in education and the importance of getting a good degree and finding a secure job so you can make a good income. (Is any job really all that secure these days?) His rich dad argued that we need more than education. We aren't taught anything about personal finance in school. (Think about it - when did you ever have a class on how to handle money?) So naturally, any financial education a child receives is left up to his parents. Rich dad maintained that finding a "secure job" was not the answer. Learning about money and how to make it work for YOU is the real solution.
Now Kiyosaki's own father wasn't what we think of as "poor." He wasn't necessarily struggling to put food on the table, but he simply thought like a "poor" person thinks... make the donuts, pay the bills, make the donuts, pay the bills. Never getting any traction, like a mouse in a wheel. He was highly educated and well respected, but found himself in this perpetual rat race. "One of the reasons the rich get richer and the poor get poorer, and the middle class struggles in debt is because the subject of money is taught at home, not in school . . . Schools focus on scholastic and professional skills, but not on financial skills. This explains how smart bankers, doctors and accountants who earned excellent grades in school may still struggle financially all their lives. Our staggering national debt is due in large part to highly educated politicians and government officials making financial decisions with little or no training on the subject of money."
It's often hard for a family with an income of $46,000 (what the average American household makes) to understand how a family making twice that or more struggles living pay check to pay check. "If only we made this much more, than we'd be OK." The truth is, when we make more, we spend more. Dave Ramsey talks about how most Americans take a $300/month raise and immediately turn it into a $400/month car payment. Car payments have become a way of life and are poison to the middle class. They keep the middle class... in the middle class. And that's exactly why the hub and I don't play that game anymore. So it's not all that difficult to imagine how a high income earning doctor or lawyer can get caught up in the race. Make more money, get more stuff. Make MORE money, get bigger better stuff. And on and on...
So obviously, book smarts and lots of letters after your last name mean nothing when it comes to handling money wisely. Hello, I'm a CPA for crying out loud. I was well educated on accounting for money. I learned how to account for different transactions and how they are presented on financial statements and recognized on tax returns. But never in any of my undergraduate or graduate classes did I learn anything about personal finance. Or even wise financial decision-making in business, for that matter. I simply learned how to properly present what's already there. So what we're ultimately left with is what we learned from our own parents. Even if your parents said very little on the subject, you learned a great deal just from watching how they handle money.
My parents were (and still are) very responsible with money. As far as I could tell, they were a good hybrid of savers and spenders. Definitely not hoarders and definitely not over-spenders. And my Dad tried to teach me the importance of saving for retirement. I say *tried* because while I totally understood and agreed with the concept, it wasn't something I was able to get all that excited about at the time. And though I like to think of myself back then (in my teenage years) as being well grounded and self-aware, I know that I, like many young adults these days, felt a sense of entitlement when it came to having stuff. I wasn't a spoiled brat, but I do think I somehow developed this I-deserve-this mentality. A little materialistic? Yeah, probably. My parents were great examples, and I had a few pages out of the manual on being responsible, but I was lacking the motivation to win (not to mention the real definition of winning with money) and the self-discipline to say no. And thus began my early adulthood and early years in marriage... on the quest for stuff (because the accumulation of stuff means you're winning, right?) and continually trying to out-earn our stupidity.
Thankfully, there is a movement to get sound financial education in schools, but much like sex education, parents are ultimately responsible for teaching their children. My gosh, if you teach your kids nothing else, please teach them about money and sex! No two things are more spiritually connected or potentially detrimental. Teaching our (future) kids about money is something the hub and I are SO excited about. We've got lots of great ideas and that's another post for another day, but yes it's something we consider to be extremely important. The fact is, however, most people grow up simply with the "get a good education so you can get a good job" mentality. And that's just not enough. They fall it to the rat race with no hope of escaping.
So what is the "rat race?" Kiyosaki explains that the poor and middle class work for money. And it's fear that keeps most of them working at their jobs - fear of not being able to pay bills, fear of losing their jobs, fear of not having enough. So we therefore become slaves to our money. Slaves to our employers. Along with fear, greed steps in. "Once we get that paycheck, greed or desire starts us thinking about all the wonderful things money can buy. The pattern is then set," taught Kiyosaki's rich dad. "Offer them more money, and they continue the cycle by also increasing their spending. This is what I call the Rat Race."
Rich dad went on to explain that the "rich" have a different worldview. They make money work for them. The book goes into a lot of detail about how the rich focus on money-making assets, having a balance sheet view. Whereas the poor are always focused on the income statement - money going in and money going out. Now, I'm an accountant so all this balance sheet and income statement talk made total sense to me. I don't know how easy it would be to grasp if you don't stare at financial statements all day like I do! But I think it's written in a way that anyone could understand the key points here. One point in particular is that the poor tend to buy liabilities that they think are assets... like cars. That's not to say you shouldn't buy a car! But don't fool yourself into thinking you're investing in an asset. And rich people of course buy cars. But they understand that "stuff" is just stuff. They don't immediately run to buy more and more stuff as their money grows. They understand and practice the concept of delayed gratification. This is a huge distinction between the rich and the poor. Kiyosaki even argues that your own house is not ultimately an asset. True assets earn you money. Your house doesn't earn you money, it costs you money. Even if you own it free and clear, it still costs you. You're not making any money off of it. No, you're continually repairing it and improving it.
The book goes on detailing how differently the rich see things than most of us do. As I mentioned, the rich have a "balance sheet" mentality instead of focusing on income and expenses. The rich pay themselves first. They have very little or no debt. And they understand the importance of giving. Kiyosaki adds, "My rich dad gave lots of money away. . . He knew that to receive money, you had to give money. Giving money is the secret to most great wealthy families." None of this rich-people-thinking was necessarily new information for me (since Dave Ramsey has been drilling it into my head for the last couple of years), but I really loved the author's approach to this concept. At the end of the day, winning with money is largely about behavior rather than know-how. You have to change the way you think.
Where the book leaves me going, "Huh?!" is when Kiyosaki goes into detail on how he personally invests and finds opportunities. He is a huge risk taker, which has often brought about great returns for him. But he's also admittedly gone broke over and over again. OK, I only want to go broke once (been there), figure out what the hell I did wrong (done that) and then never do that again. I don't buy into the idea of making high risk investments and leveraging debt to make quick returns. I'm a crockpot, not a microwave. Sure, I may never see some of the huge payoffs that a big risk-taker sees, but I will avoid the heartache when an investment turns sour. And hell if I'm putting my family's security at risk in an effort to make a quick buck. Building and sustaining wealth takes time. And we certainly won't be using debt as a "tool" to build wealth. So on his investment strategies, I have to say, "not for me, Mr. Kiyosaki."
Investing differences aside, I think the overall premise of the book is excellent. If nothing else, it'll challenge you to think about money in a completely different way and really brings light to the fact that NO ONE is teaching our kids about money. It's a very entertaining and quick read. Yes, there's a good bit of financial jargon in there, but I don't think it's anything the average reader couldn't grasp. Grab this book and get out of the rat race!
Next Up: "Strong Fathers, Strong Daughters" by Meg Meeker, MD
Previous: "Sex and the Soul of a Woman" by Paula Rinehart
Wednesday, February 2, 2011
A Few Goals for 2011
While I'm grateful to be back to 100% after my surgery two weeks ago, it looks like my 3 month hibernation from society has officially begun. Every year I think, "Oh, I'll totally be able to get everything done I normally do during tax season." And every year I fail - as if that's surprising. This is my... 12th tax season. You'd think I'd have figured it out by now. So while I have several bloggy ideas floating in my head at any given time, I find it harder and harder to get on here as we approach those big tax deadlines. I'll do my best to get a couple of posts up each week, but working an extra 2-3 hours a day just leaves me in a comatose state when I get home at night - no matter what time it is. And seriously, the last thing I want to do is get BACK on the 'puter after staring at four screens for 10 hours straight.
But wow, it's already February and I haven't shared any of our big goals for the year. We're always kind of slow to get them figured out and down on paper, but we've got some good ones for 2011. We tried really hard to nail down at least one goal (as a couple or individually) in each of these categories:
- Financial Goals
- Professional Goals
- Personal Development Goals
- Marriage & Family Goals
- Physical Goals
- Spiritual Goals
- Social & Community Goals
So here are just a few of our personal goals for 2011 that I wanted to share...
1. Financial: We will get our debt snowball down to the last debt on our list, the hub's student loan.
Predicting exactly when we'll be done with our debt snowball is tricky since our income fluctuates each month, plus *hopefully* we'll be forced to temporarily stop our snowball later this year to stash away cash for maternity leave. But we feel very confident that we can hack through everything that is in front of that last big debt by the end of the year. Also, a piggyback goal to this one... depending on our income levels in 2011, we may have to add our HELOC to our debt snowball. Normally, a 2nd mortgage or HELOC is paid off in Baby Step #6 on Dave's plan, but if the balance is less than half of your annual income, you add it to your consumer debt snowball in Baby Step #2. It would definitely drag out Step #2 (and therefore drag out our rice and beans lifestyle a bit longer), but it would have a HUGE long-term payoff if we were able to do that. So while we're VERY ready to get past Step #2, we hope that our income will be great enough to require us to stick with it a little longer.
2. Personal Development: I will read 50 non-fiction books in 2011.
Y'all have already heard this one... I initially had it for 25 books, but with the pace I was setting in January, I decided to be brave and double that goal. Tax season will probably slow me down some, but I'm still confident I can get 50 books under my belt this year. I just finished my 5th yesterday. So why non-fiction? It's purely about growing my brain and also growing my faith. So yeah, this double dips as a spiritual goal too. A lot of the books I'm reading are faith-based, but many are personal finance or business books. I've had a lot of these books on my list of good intentions for a long time and I decided 2011 is the time to make it happen. Charlie "Tremendous" Jones said, "You will be the same person in five years as you are today except for the people you meet and the books you read." So there you have it. I don't want to be the same person in five years. I want to be a better, wiser, stronger version of me.
3. Spiritual: I will read through the entire Bible in 2011.
Yeah, y'all know about this one too. I began reading just before Christmas to get a good jump-start. I am using The One Year Bible on my Kindle and am loving it (revisit this post for more on this particular Bible). I really thought I would just make a goal of regularly reading through the Bible, like 5 days a week. And I wouldn't give myself a hard time about finishing it in 365 days. But after starting it, I found it SO easy to fit in the reading each day. And I also keep a notebook where I jot down the "synopsis" of each day's passages along with any verses that strike me or questions that arise. I feel silly for thinking this was going to be a chore. It has been an incredible joy. I know most of the big Bible stories, but it's been SO long since I read them all in great detail. So I decided to forget being passive about it and declare that I would indeed get the job done in 2011. I'm right on track.
4. Professional: I will begin writing a book on struggling with infertility this year.
I don't know how the hell to do this one, but I'm just going to fly by the seat of my pants here. Whether this will be a published work at some point, God only knows. But it's something that's been swimming around in my head for a couple of years and I figure, what better time to start than when I'm in the thick of it? Not that I think my hurt and fear will be forgotten if and when our dreams of parenthood come true, but I want to document those feelings now while I'm facing them. And hopefully be able to reflect back once I've overcome them. There's not enough good information on struggling with infertility and I feel led to contribute somehow, so perhaps this is a big first step. My goal is to have a rough draft by the end of 2011. Probably really rough, but we'll see.
5. Spiritual/Social: We will use $30 once a month to bless a friend or neighbor.
You've heard me talk about how big our hearts are for giving. The hub and I love, love, love it and can't wait to have the financial means to give in big ways later on. But for now, we are pretty much restricted to tithing while working our debt snowball. Though, the other day I thought of an idea for a particular friend... just a small little unexpected gift that I knew would bring a smile. And then I thought, why not do this every month? $30 is not a lot. But $30 well spent can lift a spirit. And shouldn't we all be in the spirit-lifting business? I'm excited to see where this goal takes us this year.
How are YOUR goals coming along?
Friday, January 28, 2011
Deducting IVF Costs on Your Tax Return
I knew in the back of my head we could do this, but it literally just dawned on me yesterday that we would have enough medical expenses for 2010 to actually take a hefty deduction on our return this year. As soon as our 2010 prep software was installed at work, I started throwing in our numbers because I like to get our returns filed as early as possible (if we have refunds coming). Yesterday I was looking back at my master baby bucks spreadsheet for some reason and had a *holy shit* moment. Medical expenses! We went from having a net refund of about $1,000 between Fed and state, to having over $6,000 in refunds after adding in our medical expenses for infertility treatments. So IF girls, please pay attention to this!
Most of us never get to deduct much of any medical expenses. You generally have to have a LOT of expenses to get above the 7.5% AGI (adjusted gross income) threshold. Meaning, if you have income of $100,000 in 2010, you have to have more than $7,500 in out-of-pocket medical expenses before you can deduct anything. So if you have $8,000 in medical costs, you would only get to deduct $500.
Costs paid for infertility treatments do qualify for the deduction. And you can bet your britches we're including all our IVF costs, meds, lab fees and my acupuncture costs. Understand that a deduction can only be taken for true out-of-pocket expenses paid with after-tax dollars. If you have a cafe plan at work with a flexible spending account or an HSA where you put in pre-tax dollars to use for medical expenses, you can not deduct any costs paid with those funds. And expenses covered by or later reimbursed by insurance are of course not deductible. Also, only costs paid in 2010 can be deducted for 2010. Even if you received treatment in 2010 but paid for a pre-paid plan in 2009, you cannot deduct costs paid in 2009 on your 2010 return. So like in my case, we paid for a pre-paid IVF plan in 2010. I will continue to receive treatment related to the plan in 2011, but I must deduct those costs on my 2010 return.
Just wanted to give you IF girls a heads up to be thinking about this. Keep good records and this is easy. Hop over here for some more guidance on deducting IVF (and other IF) costs on your return.
Personally, this was a huge epiphany for me yesterday. But if you remember, my parents graciously funded the bulk of our treatments last year. So as soon as I connected the dots, I sent the good news to my parents. The money is rightfully theirs, after all. And I was so excited to be able to "give" some of it back. But to our surprise, my parents talked it over and decided they wanted *us* to keep the money. My dad even suggested the hub and I take a little weekend trip somewhere after tax season with some of the funds since we've been so diligent with our beans-and-rice lifestyle while dumping debt. The hub and I both laughed and said "Hell NO!" to each other. That's going toward debt! Our heads are so intensely focused on getting out and staying out of debt that the idea of spending money on "fun" doesn't even register. We've got our eye on future fun. Thank you, Mom and Dad. We will get there faster because of you.
Most of us never get to deduct much of any medical expenses. You generally have to have a LOT of expenses to get above the 7.5% AGI (adjusted gross income) threshold. Meaning, if you have income of $100,000 in 2010, you have to have more than $7,500 in out-of-pocket medical expenses before you can deduct anything. So if you have $8,000 in medical costs, you would only get to deduct $500.
Costs paid for infertility treatments do qualify for the deduction. And you can bet your britches we're including all our IVF costs, meds, lab fees and my acupuncture costs. Understand that a deduction can only be taken for true out-of-pocket expenses paid with after-tax dollars. If you have a cafe plan at work with a flexible spending account or an HSA where you put in pre-tax dollars to use for medical expenses, you can not deduct any costs paid with those funds. And expenses covered by or later reimbursed by insurance are of course not deductible. Also, only costs paid in 2010 can be deducted for 2010. Even if you received treatment in 2010 but paid for a pre-paid plan in 2009, you cannot deduct costs paid in 2009 on your 2010 return. So like in my case, we paid for a pre-paid IVF plan in 2010. I will continue to receive treatment related to the plan in 2011, but I must deduct those costs on my 2010 return.
Just wanted to give you IF girls a heads up to be thinking about this. Keep good records and this is easy. Hop over here for some more guidance on deducting IVF (and other IF) costs on your return.
Personally, this was a huge epiphany for me yesterday. But if you remember, my parents graciously funded the bulk of our treatments last year. So as soon as I connected the dots, I sent the good news to my parents. The money is rightfully theirs, after all. And I was so excited to be able to "give" some of it back. But to our surprise, my parents talked it over and decided they wanted *us* to keep the money. My dad even suggested the hub and I take a little weekend trip somewhere after tax season with some of the funds since we've been so diligent with our beans-and-rice lifestyle while dumping debt. The hub and I both laughed and said "Hell NO!" to each other. That's going toward debt! Our heads are so intensely focused on getting out and staying out of debt that the idea of spending money on "fun" doesn't even register. We've got our eye on future fun. Thank you, Mom and Dad. We will get there faster because of you.
Tuesday, January 25, 2011
Valentine's on the Cheap
I've been de-cathed and I'm back at work! Feeling tired and a wee bit crampy still, but OK. And large, I feel large. I'm on estrogen for the next three weeks and it makes me quite *puffy*. So not really loving that, but whatever.
So hey guess what... I'm in the AJC today! Just a quick mention of our standing Valentine's tradition (fondue at home) in an article with some money-saving ideas for the holiday, but hey, I feel famous for being quoted. Of course they left out the best part of our tradition - we do it all in Valentine jammies! If you get the Atlanta paper, it's on the front page of the "Living" section today. Read it here.
Can't believe Valentine's is less than 3 weeks away... what other budget-friendly ways to celebrate do you suggest?
Tuesday, January 4, 2011
A Life-Changing Giveaway!
No, it's not a million dollars. But it does have the potential to change your life, dear readers. After getting such an awesome response to my recent post on spending less and saving more (and a shizload of requests for our budgeting templates), I figured y'all deserved a fabulous budget-themed giveaway!
Up for grabs is Dave Ramsey's Cash Flow Planning DVD (a $19.95 value), which is the 3rd lesson from Financial Peace University (his 13-week course on how to handle money). This video is all about the nuts and bolts of budgeting. A DVD on finance stuff? Seriously? I assure you it's no snooze fest. It's packed full of great information, but it's also freakin' hilarious. It'll make you laugh. It'll make you cry. It'll make you say, "Aw shit, that's us." You will love it.
Here are the deets...
In this 85-minute lesson, Dave walks you through a step-by-step method for setting-up a household budget that you can live with. No longer will you have to dread living on a budget.
Dave shows you how to live on less than you make, pay your bills, allow for entertainment and still have money left over at the end of the month. You'll never feel confined by a budget again after you learn how to do a budget the way thousands of other families have, the Financial Peace way.
You'll Learn How to:
-Stretch your money further
-Set up your own cash-flow system
-Live on a budget
-Have money left over at the end of the month
-Spend money without guilt
-Get control and keep control of your money
We've been through the class twice and I've listened to the audio from this lesson countless times. It is priceless information and a perfect way to get your butt in gear for the new year! One winner will be picked by random number generator. To enter, simply leave a comment on this post answering the following question:If you were able to find more money left over at the end of the month, what's the first thing you would do with it? Entry deadline is Monday, January 10th (midnight ET). A winner will be announced on Tuesday the 11th. Please provide an email address in your comment so I can contact you if you win! Best of luck...
Up for grabs is Dave Ramsey's Cash Flow Planning DVD (a $19.95 value), which is the 3rd lesson from Financial Peace University (his 13-week course on how to handle money). This video is all about the nuts and bolts of budgeting. A DVD on finance stuff? Seriously? I assure you it's no snooze fest. It's packed full of great information, but it's also freakin' hilarious. It'll make you laugh. It'll make you cry. It'll make you say, "Aw shit, that's us." You will love it.
Here are the deets...
In this 85-minute lesson, Dave walks you through a step-by-step method for setting-up a household budget that you can live with. No longer will you have to dread living on a budget.
Dave shows you how to live on less than you make, pay your bills, allow for entertainment and still have money left over at the end of the month. You'll never feel confined by a budget again after you learn how to do a budget the way thousands of other families have, the Financial Peace way.
You'll Learn How to:
-Stretch your money further
-Set up your own cash-flow system
-Live on a budget
-Have money left over at the end of the month
-Spend money without guilt
-Get control and keep control of your money
We've been through the class twice and I've listened to the audio from this lesson countless times. It is priceless information and a perfect way to get your butt in gear for the new year! One winner will be picked by random number generator. To enter, simply leave a comment on this post answering the following question:If you were able to find more money left over at the end of the month, what's the first thing you would do with it? Entry deadline is Monday, January 10th (midnight ET). A winner will be announced on Tuesday the 11th. Please provide an email address in your comment so I can contact you if you win! Best of luck...
Budget Templates
I have gotten lots of great emails from you guys regarding my last post. And many of you are asking for copies of the budget forms we use. Yes, I absolutely have templates available (with our numbers zeroed out) that have notes throughout explaining how we use them. I would be more than happy to send you a copy! If you've already requested one, I'll be responding to you shortly with the files. If anyone else is interested in the forms or if you just have some general questions, feel free to drop me an email! I am glad to help in any way I can.
It's back to the grind today... though when I got here this morning, the power was out! So we're just now getting back online and running. I'm also waiting on a call back from my doctor to get this surgery on the calendar. I'm hoping the dates don't interfere too much with work, but I can't exactly worry about that! It is what it is. I'm just ready to knock it out!
Hope y'all have a great week!
Monday, January 3, 2011
Resolving to Spend Less?
We aren't. It's damn near impossible for us to spend much less than we already do. But as a reformed shopaholic, I can proudly boast that I now kick ass at spending less. But as most of y'all know, we were forced into a financial makeover more than two years ago. So we didn't really have the choice to say, "Oh I think we'll resolve to spend less this year." No, we just kinda had to. And of course, as I've said countless times, it was probably one of the best life lessons we've ever been handed.
I know "spending less" and "saving more" are two of the most popular New Year's resolutions people have. It's very easy to say, but not so easy to do - especially if you don't have a plan. So as someone who not only spends less on everything, but has also been on a self-imposed shopping hiatus for over TWO years, maybe I can help. At the very least, I can tell you how we do it. We've been sticking to our guns for over 26 months, so I can guarantee these methods are tried and true. You may argue, "that's great for you, but that wouldn't work for me." But all I hear is "I'm not willing to make those sacrifices." The truth is that it does work. It doesn't matter who you are or what your financial situation looks like. There's nothing fancy or sophisticated about this, but you gotta work it. I realize it's a lot harder to *choose* to cut back than to be forced into it. But if you want it badly enough, you can do it.
Below are five keys to spending less and saving more. I didn't make these up. These are things we have learned and ingrained in our heads over the last two years. They are not temporary changes - they are lifelong. Whether we have $10 in the bank or $10 million, these principles hold true.
1. Get on a budget (and actually stick to it).
Oh, that dreaded "B" word, I know. Someone says "budget" and we immediately picture a straight jacket. But the big secret is... a budget is not a form of bondage; it is freedom. Most simply put, it is a plan. As my go-to guru Dave always says, "If you don't tell your money where to go, you'll wonder where it went." And a budget is just that: telling every dollar where to go. We do what's called a "zero-based" budget every month. This means every single dollar that we know is coming in has a name on it before the month begins - before it ever hits our account. So, income minus expenses each month equal to ZERO.
Pictured here is an actual screen shot from our current budget. Just a snippet, obviously. But this is basically how our main budget is laid out each month. We have 13 different categories of expenses and three are shown above. Amounts that are estimated are highlighted in green until I receive the bill and know exactly what's due. If you're interested, I'd be glad to go into a lot more detail with you about how we run our budget. I use Excel to keep up with the budget (which is one file with several worksheets) and I use Quicken to track our cash flow. Drop me an email if you have questions - I seriously LOVE helping people with this stuff, so feel free.
Aside from the mechanics of the budget itself, it's extremely important to do this with your spouse if you're married. A plan is no good if only one of you is on board. The other one will screw it up in about two seconds flat. This doesn't mean you both have to sit down at the computer and hold hands as you punch out your budget. I'm obviously the nerdy one in my marriage - so I actually put together the budget and pay the bills each month. But the hub is certainly involved in all decisions and we sit down together monthly (at least) to go over what's going on in the upcoming month. Generally, one of you is better at handling the budget, but you both have to be involved in carrying it out. Once you've settled on the budget for a given month, consider it a contract between the two of you. This is our plan, and we're sticking to it. You of course will run into something every month that wasn't in the plan. That's just life. Take a time-out, juggle some things around and continue on.
2. Give, Save, then Spend.
Without a plan, most of us will spend, spend, spend... and if there's anything left at the end of the month, we might give and/or save. What's a sure fire way to rock your financial world? Turn your old spending habits upside down. I dare you to give FIRST out of your monthly income. Pay YOURSELF next by saving. And lastly, live on the rest. This concept alone has changed our lives and the hub and I both agree it's the best decision we've ever made together. At the very top of our budget each month is our tithe. It comes out automatically twice a month, so it's gone. And thank God for the automatic withdrawal because if it didn't go first I know there's many a month it might not have gone at all. Second on our budget is our "Savings" category. I will touch more on savings here shortly. Everything that follows is general "spending." Our monthly bills, debt payments, and everyday living expenses.
Understand that there is something incredibly spiritual about this ordering. It doesn't always seem mathematically or logically sound. All I can tell you is that it will mess you up - in an amazing way. Tithing, specifically, is about trust. It will open your heart in ways you can't believe. In ways no financial expert can quantify.
One other thing I should say about giving... We personally only tithe right now. Our budget is extremely tight, so we do not currently do any giving on top of our tithe to our local church. We're told to take care of our own households first and foremost, and the hub and I take that seriously. When we're out of consumer debt and able to give more (one of the things we can't WAIT to do), it will of course fall in this "Giving" category on our budget. I know people are always pulling at you to give $20 here and $30 there for great causes. If you can, do it! But if you're in a financial bind, it's your responsibility to take care of you and your family first. It's OK to say NO, and you should. I have a big heart for giving and definitely understand the urge. Use your time and your hands instead. There are many opportunities to serve that don't require you to write a check.
3. Build an Emergency Fund.
And no, a credit card does not count as an "emergency fund." How many of you have stuck a credit card in your wallet "just in case?" That's a recipe for disaster, as I'm sure many of you know. Whether you're a proponent of credit cards or not doesn't matter here. I think you know my position (or you will by the end of this), but you've got to set CASH aside for emergencies regardless. Otherwise, your beautifully planned out budget can take a big unexpected whacking and suddenly bills aren't getting paid. A solid emergency fund is made up of 3-6 months of expenses. That's not 3-6 months of income; it's 3-6 months of funds needed to LIVE. So if you normally spend about $5,000 per month on the mortgage, utilities, debt payments, grocery bills, and other necessary spending, you need to set aside $15,000-30,000. In CASH. Not invested in the stock market or locked up in a 401(k). This is not an investment; it is insurance. It's "a buffer between you and life," Dave says. Stick it in an interest-bearing savings account and leave it alone.
That's a lot of money, right? And if you're familiar with Dave Ramsey's plan, you know the fully-funded emergency fund is actually baby step 3 (in his 7-step plan to financial peace). So if you're in the midst of paying off consumer debt, as are we, limit your emergency fund to $1,000. If you know a storm is coming, of course stop and save, save, save. Otherwise, believe it or not, you will get by just fine with only $1,000 put away. We have for over two years. The amount is small for two main reasons: It's easy to save quickly, but it's small enough that it's a little scary. The idea is to push you to get your debt paid off so you can fund the rest of it.
And remember we're talking about saving for *emergencies* here. New tires are not an emergency. Back-to-school clothes are not an emergency. Christmas gifts are not an emergency. An emergency is an unexpected event and none of those I mentioned qualify. But there are things, such as Christmas, that pop up every year that we need to plan for. And this is where other short-term savings come in to play. For example, put $100 in "Christmas Savings" on your budget every month and you'll be able to shop pain-free in December. Whatever you're saving for, the biggest point I'm trying to drive home is that your savings must have a purpose. If you just have a savings account at your local bank that you stick money in here and there with no real purpose, those "savings" are likely to disappear. You walk past a pair of hot new boots and suddenly you're transferring money from your "savings" account on your iPhone and viola! You've got killer boots and no savings.
Just like your monthly income, every dollar that goes into a savings account needs a name on it. Don't just save for the sake of "saving." Save with purpose. Whether you're saving for emergencies, future spending, or retirement, save with purpose.
4. Use cold hard CASH.
Maybe you're picking up on a reoccurring theme here... intentionality. Basically that's what all of this is - being intentional with your spending and saving rather than flying by the seat of your pants and hoping everything falls into place. We tried that method! It worked for a while. And then it didn't. So if there's one fool-proof key I can give you to carrying out your intentions each month (i.e. sticking to your budget), it's the cash envelope system.
To me, this is the absolute secret to success. It is so simple yet SO effective. It is revolutionary, yet it's not - it's just common sense. In fact, your grandmother probably did this. The short of it? Use cash (as in the green paper stuff) for your everyday spending instead of debit cards or credit cards. On your budget, identify what categories you'll use cash for and designate a dollar amount. We typically have cash envelopes for Food, Entertainment, Dogs, Dry Cleaning, Gifts (birthday, etc), Hair Cuts, and Miscellaneous. Some months call for an added category or two, but these are our most-used ones, personally. Each pay day, I pull out the amount of cash we need to replenish our envelopes (we fill them every pay period, not just once a month). When I go grocery shopping, I use cash from the Food envelope. If we go to the movies, the hub pays for his popcorn from the Entertainment envelope. We both have our own Miscellaneous envelope for whatever. But once an envelope is empty, it's gone. There is no "borrowing" from other categories or whipping out the debit card. If it's gone, it's gone.
Why is this method successful in cutting back spending? The truth is, spending cold hard cash "hurts" more. Psychological studies have been performed that prove there is an element of actual pain triggered by spending cash. Using a debit card still triggers some pain, but much less. Spending with a credit card registers virtually no pain. Translation? You spend a lot more when you use a card, especially credit cards. According to a Dunn & Bradstreet study, consumers spend 12-18% more when using credit cards. Do the math - that is a HUGE chunk of your budget. Huge. Think about it... why did all the fast food joints transition over to taking plastic? It's not for your convenience, that's for sure. McDonald's reported that their average ticket rose over 55% once they accepted cards. You spend more when you use plastic. You spend less when you use cash. If you want to spend less, use CASH.
I realize it's a big change for most. Pictured here are my actual cash envelopes. (I have a smiley on Food because I love food.) I was lucky if I had a single dollar in my wallet before we moved to an all-cash system. I whipped out the debit card for everything. But I think you'll find that being on a cash envelope system provides a lot of freedom. You've already pulled out the cash for the $100 you budgeted for clothing. You don't have to think about it or feel guilty for spending it. You (and your spouse) agreed to that amount on your budget and it's there for you to use accordingly. And once it's gone, you're done. No more shopping till next month.
This has particularly been a huge help for us on our grocery bill. As I'm going through the aisles, I'm tallying up everything I put in my cart. I round up to the nearest dollar to keep it simple, but I know how much I'm spending before I ever get to the checkout line. I've only got a set dollar amount in my envelope and I know I can't go over it. And yes, I've totally had to put stuff back after realizing I was exceeding my budget. And given that our grocery funds are very limited, I've become a coupon nut too. We've completely changed the way we grocery shop. I never paid attention to prices before, not really. I was a sucker for creative packaging. If it looked good, I bought it. And I'd swipe my debit card at the checkout, hardly ever taking real notice of what I spent. If I've learned nothing else, I've learned the true value of the dollar.
The biggest protest I hear regarding using cash is the we-run-everything-on-our-American-Express-and-pay-it-off-every-month. If that's your thing and you're "doing fine," go for it. I can give you a list of reasons why I don't agree with that method, but people are going to do what they're going to do. I just gave you one freaking huge reason. So if you really want to spend less in 2011, get out of that habit. You can easily afford airline tickets with the money you aren't spending on other crap.
5. Identify areas where you can make sacrifices.
"Every little bit helps." The hub and I say that all the time. When we were initially making over our finances, we had to quickly examine our spending and find things we could cut out or cut back. You may not have to do this, but maybe you do. We found ourselves immediately ditching our maid service, cable TV, and home phone service. We also cut out any dining out. We used to eat out ALL the time. So that one was a big adjustment for us. We still only eat out maybe once or twice a month at most, and if we do it's at our local dirty Mexican joint 90% of the time (very cheap). What's eating up your budget that you can trim down? The daily Starbucks? Weekly golf games? Pricey concerts? Gym memberships? (I'm not encouraging you to stop working out, but you don't need a gym.)
Whatever your goals are for 2011, there is undoubtedly an amount of sacrifice involved in order to win. Whether it's not spending money on something you normally would, or not spending time somewhere else in order to have more time doing something more worthwhile... we often must give up something in order to achieve something better. Sacrifices, even small ones, can have big payoffs. With spending less and saving more, you have to learn to say NO to some things. You have to learn to say NO to yourself. Dig through your bank statements and seek out areas you might need to say NO to... I'm pretty sure you don't need that $5 latte.
I share these things with you not because I know it all. Again, I didn't dream up these ideas - we learned them and incorporated them into our lives. And we are SO the better for it. I was running our spending report on Quicken the other day - I get a really nerdy satisfaction out of revisiting where our money went over the last 12 months. As I did for 2009, I ran a tally of all my "shopping" for 2010. This is money spent on clothing and accessories for me, just because. I couldn't give you an "old me" tally because I didn't keep good records then. Let's just say it was exponentially higher than the numbers I'm about to give you. In 2009 I told y'all I spent $45.57. The only other spending I did that year was for a bridesmaid dress and shoes, which I didn't include in that figure. In 2010, I beat that number! Drum roll, please... I spent $34.90. Ten dollars was spent at Old Navy and the rest was on a Vera Bradley bag I ordered. Now of course I have gotten other clothes as gifts and have received a gift card here and there that I've used to buy clothing. But only $35 came out of my wallet. Pretty damn good, I say! Shopaholic reform is possible, girls, and I am living proof.
So if you are resolving to spend less and save more in the new year, you've now got a solid how-to. Incorporate these principles into specific goals for you and your family. Whether or not you want to do it is ultimately up to you, duh. But if you're serious about it and ready to make some big changes, you will find success if you apply these principles. All of this is an expansion on topics specific to spending and saving, but if you're really looking for a top-to-bottom money makeover, please go rub elbows with Dave and get cracking with the baby steps to financial peace. It'll rock your world.
I know "spending less" and "saving more" are two of the most popular New Year's resolutions people have. It's very easy to say, but not so easy to do - especially if you don't have a plan. So as someone who not only spends less on everything, but has also been on a self-imposed shopping hiatus for over TWO years, maybe I can help. At the very least, I can tell you how we do it. We've been sticking to our guns for over 26 months, so I can guarantee these methods are tried and true. You may argue, "that's great for you, but that wouldn't work for me." But all I hear is "I'm not willing to make those sacrifices." The truth is that it does work. It doesn't matter who you are or what your financial situation looks like. There's nothing fancy or sophisticated about this, but you gotta work it. I realize it's a lot harder to *choose* to cut back than to be forced into it. But if you want it badly enough, you can do it.
Below are five keys to spending less and saving more. I didn't make these up. These are things we have learned and ingrained in our heads over the last two years. They are not temporary changes - they are lifelong. Whether we have $10 in the bank or $10 million, these principles hold true.
1. Get on a budget (and actually stick to it).
Oh, that dreaded "B" word, I know. Someone says "budget" and we immediately picture a straight jacket. But the big secret is... a budget is not a form of bondage; it is freedom. Most simply put, it is a plan. As my go-to guru Dave always says, "If you don't tell your money where to go, you'll wonder where it went." And a budget is just that: telling every dollar where to go. We do what's called a "zero-based" budget every month. This means every single dollar that we know is coming in has a name on it before the month begins - before it ever hits our account. So, income minus expenses each month equal to ZERO.
Pictured here is an actual screen shot from our current budget. Just a snippet, obviously. But this is basically how our main budget is laid out each month. We have 13 different categories of expenses and three are shown above. Amounts that are estimated are highlighted in green until I receive the bill and know exactly what's due. If you're interested, I'd be glad to go into a lot more detail with you about how we run our budget. I use Excel to keep up with the budget (which is one file with several worksheets) and I use Quicken to track our cash flow. Drop me an email if you have questions - I seriously LOVE helping people with this stuff, so feel free.
Aside from the mechanics of the budget itself, it's extremely important to do this with your spouse if you're married. A plan is no good if only one of you is on board. The other one will screw it up in about two seconds flat. This doesn't mean you both have to sit down at the computer and hold hands as you punch out your budget. I'm obviously the nerdy one in my marriage - so I actually put together the budget and pay the bills each month. But the hub is certainly involved in all decisions and we sit down together monthly (at least) to go over what's going on in the upcoming month. Generally, one of you is better at handling the budget, but you both have to be involved in carrying it out. Once you've settled on the budget for a given month, consider it a contract between the two of you. This is our plan, and we're sticking to it. You of course will run into something every month that wasn't in the plan. That's just life. Take a time-out, juggle some things around and continue on.
2. Give, Save, then Spend.
Without a plan, most of us will spend, spend, spend... and if there's anything left at the end of the month, we might give and/or save. What's a sure fire way to rock your financial world? Turn your old spending habits upside down. I dare you to give FIRST out of your monthly income. Pay YOURSELF next by saving. And lastly, live on the rest. This concept alone has changed our lives and the hub and I both agree it's the best decision we've ever made together. At the very top of our budget each month is our tithe. It comes out automatically twice a month, so it's gone. And thank God for the automatic withdrawal because if it didn't go first I know there's many a month it might not have gone at all. Second on our budget is our "Savings" category. I will touch more on savings here shortly. Everything that follows is general "spending." Our monthly bills, debt payments, and everyday living expenses.
Understand that there is something incredibly spiritual about this ordering. It doesn't always seem mathematically or logically sound. All I can tell you is that it will mess you up - in an amazing way. Tithing, specifically, is about trust. It will open your heart in ways you can't believe. In ways no financial expert can quantify.
One other thing I should say about giving... We personally only tithe right now. Our budget is extremely tight, so we do not currently do any giving on top of our tithe to our local church. We're told to take care of our own households first and foremost, and the hub and I take that seriously. When we're out of consumer debt and able to give more (one of the things we can't WAIT to do), it will of course fall in this "Giving" category on our budget. I know people are always pulling at you to give $20 here and $30 there for great causes. If you can, do it! But if you're in a financial bind, it's your responsibility to take care of you and your family first. It's OK to say NO, and you should. I have a big heart for giving and definitely understand the urge. Use your time and your hands instead. There are many opportunities to serve that don't require you to write a check.
3. Build an Emergency Fund.
And no, a credit card does not count as an "emergency fund." How many of you have stuck a credit card in your wallet "just in case?" That's a recipe for disaster, as I'm sure many of you know. Whether you're a proponent of credit cards or not doesn't matter here. I think you know my position (or you will by the end of this), but you've got to set CASH aside for emergencies regardless. Otherwise, your beautifully planned out budget can take a big unexpected whacking and suddenly bills aren't getting paid. A solid emergency fund is made up of 3-6 months of expenses. That's not 3-6 months of income; it's 3-6 months of funds needed to LIVE. So if you normally spend about $5,000 per month on the mortgage, utilities, debt payments, grocery bills, and other necessary spending, you need to set aside $15,000-30,000. In CASH. Not invested in the stock market or locked up in a 401(k). This is not an investment; it is insurance. It's "a buffer between you and life," Dave says. Stick it in an interest-bearing savings account and leave it alone.
That's a lot of money, right? And if you're familiar with Dave Ramsey's plan, you know the fully-funded emergency fund is actually baby step 3 (in his 7-step plan to financial peace). So if you're in the midst of paying off consumer debt, as are we, limit your emergency fund to $1,000. If you know a storm is coming, of course stop and save, save, save. Otherwise, believe it or not, you will get by just fine with only $1,000 put away. We have for over two years. The amount is small for two main reasons: It's easy to save quickly, but it's small enough that it's a little scary. The idea is to push you to get your debt paid off so you can fund the rest of it.
And remember we're talking about saving for *emergencies* here. New tires are not an emergency. Back-to-school clothes are not an emergency. Christmas gifts are not an emergency. An emergency is an unexpected event and none of those I mentioned qualify. But there are things, such as Christmas, that pop up every year that we need to plan for. And this is where other short-term savings come in to play. For example, put $100 in "Christmas Savings" on your budget every month and you'll be able to shop pain-free in December. Whatever you're saving for, the biggest point I'm trying to drive home is that your savings must have a purpose. If you just have a savings account at your local bank that you stick money in here and there with no real purpose, those "savings" are likely to disappear. You walk past a pair of hot new boots and suddenly you're transferring money from your "savings" account on your iPhone and viola! You've got killer boots and no savings.
Just like your monthly income, every dollar that goes into a savings account needs a name on it. Don't just save for the sake of "saving." Save with purpose. Whether you're saving for emergencies, future spending, or retirement, save with purpose.
4. Use cold hard CASH.
Maybe you're picking up on a reoccurring theme here... intentionality. Basically that's what all of this is - being intentional with your spending and saving rather than flying by the seat of your pants and hoping everything falls into place. We tried that method! It worked for a while. And then it didn't. So if there's one fool-proof key I can give you to carrying out your intentions each month (i.e. sticking to your budget), it's the cash envelope system.
To me, this is the absolute secret to success. It is so simple yet SO effective. It is revolutionary, yet it's not - it's just common sense. In fact, your grandmother probably did this. The short of it? Use cash (as in the green paper stuff) for your everyday spending instead of debit cards or credit cards. On your budget, identify what categories you'll use cash for and designate a dollar amount. We typically have cash envelopes for Food, Entertainment, Dogs, Dry Cleaning, Gifts (birthday, etc), Hair Cuts, and Miscellaneous. Some months call for an added category or two, but these are our most-used ones, personally. Each pay day, I pull out the amount of cash we need to replenish our envelopes (we fill them every pay period, not just once a month). When I go grocery shopping, I use cash from the Food envelope. If we go to the movies, the hub pays for his popcorn from the Entertainment envelope. We both have our own Miscellaneous envelope for whatever. But once an envelope is empty, it's gone. There is no "borrowing" from other categories or whipping out the debit card. If it's gone, it's gone.
Why is this method successful in cutting back spending? The truth is, spending cold hard cash "hurts" more. Psychological studies have been performed that prove there is an element of actual pain triggered by spending cash. Using a debit card still triggers some pain, but much less. Spending with a credit card registers virtually no pain. Translation? You spend a lot more when you use a card, especially credit cards. According to a Dunn & Bradstreet study, consumers spend 12-18% more when using credit cards. Do the math - that is a HUGE chunk of your budget. Huge. Think about it... why did all the fast food joints transition over to taking plastic? It's not for your convenience, that's for sure. McDonald's reported that their average ticket rose over 55% once they accepted cards. You spend more when you use plastic. You spend less when you use cash. If you want to spend less, use CASH.
I realize it's a big change for most. Pictured here are my actual cash envelopes. (I have a smiley on Food because I love food.) I was lucky if I had a single dollar in my wallet before we moved to an all-cash system. I whipped out the debit card for everything. But I think you'll find that being on a cash envelope system provides a lot of freedom. You've already pulled out the cash for the $100 you budgeted for clothing. You don't have to think about it or feel guilty for spending it. You (and your spouse) agreed to that amount on your budget and it's there for you to use accordingly. And once it's gone, you're done. No more shopping till next month.
This has particularly been a huge help for us on our grocery bill. As I'm going through the aisles, I'm tallying up everything I put in my cart. I round up to the nearest dollar to keep it simple, but I know how much I'm spending before I ever get to the checkout line. I've only got a set dollar amount in my envelope and I know I can't go over it. And yes, I've totally had to put stuff back after realizing I was exceeding my budget. And given that our grocery funds are very limited, I've become a coupon nut too. We've completely changed the way we grocery shop. I never paid attention to prices before, not really. I was a sucker for creative packaging. If it looked good, I bought it. And I'd swipe my debit card at the checkout, hardly ever taking real notice of what I spent. If I've learned nothing else, I've learned the true value of the dollar.
The biggest protest I hear regarding using cash is the we-run-everything-on-our-American-Express-and-pay-it-off-every-month. If that's your thing and you're "doing fine," go for it. I can give you a list of reasons why I don't agree with that method, but people are going to do what they're going to do. I just gave you one freaking huge reason. So if you really want to spend less in 2011, get out of that habit. You can easily afford airline tickets with the money you aren't spending on other crap.
5. Identify areas where you can make sacrifices.
"Every little bit helps." The hub and I say that all the time. When we were initially making over our finances, we had to quickly examine our spending and find things we could cut out or cut back. You may not have to do this, but maybe you do. We found ourselves immediately ditching our maid service, cable TV, and home phone service. We also cut out any dining out. We used to eat out ALL the time. So that one was a big adjustment for us. We still only eat out maybe once or twice a month at most, and if we do it's at our local dirty Mexican joint 90% of the time (very cheap). What's eating up your budget that you can trim down? The daily Starbucks? Weekly golf games? Pricey concerts? Gym memberships? (I'm not encouraging you to stop working out, but you don't need a gym.)
Whatever your goals are for 2011, there is undoubtedly an amount of sacrifice involved in order to win. Whether it's not spending money on something you normally would, or not spending time somewhere else in order to have more time doing something more worthwhile... we often must give up something in order to achieve something better. Sacrifices, even small ones, can have big payoffs. With spending less and saving more, you have to learn to say NO to some things. You have to learn to say NO to yourself. Dig through your bank statements and seek out areas you might need to say NO to... I'm pretty sure you don't need that $5 latte.
I share these things with you not because I know it all. Again, I didn't dream up these ideas - we learned them and incorporated them into our lives. And we are SO the better for it. I was running our spending report on Quicken the other day - I get a really nerdy satisfaction out of revisiting where our money went over the last 12 months. As I did for 2009, I ran a tally of all my "shopping" for 2010. This is money spent on clothing and accessories for me, just because. I couldn't give you an "old me" tally because I didn't keep good records then. Let's just say it was exponentially higher than the numbers I'm about to give you. In 2009 I told y'all I spent $45.57. The only other spending I did that year was for a bridesmaid dress and shoes, which I didn't include in that figure. In 2010, I beat that number! Drum roll, please... I spent $34.90. Ten dollars was spent at Old Navy and the rest was on a Vera Bradley bag I ordered. Now of course I have gotten other clothes as gifts and have received a gift card here and there that I've used to buy clothing. But only $35 came out of my wallet. Pretty damn good, I say! Shopaholic reform is possible, girls, and I am living proof.
So if you are resolving to spend less and save more in the new year, you've now got a solid how-to. Incorporate these principles into specific goals for you and your family. Whether or not you want to do it is ultimately up to you, duh. But if you're serious about it and ready to make some big changes, you will find success if you apply these principles. All of this is an expansion on topics specific to spending and saving, but if you're really looking for a top-to-bottom money makeover, please go rub elbows with Dave and get cracking with the baby steps to financial peace. It'll rock your world.
Friday, December 3, 2010
Christmas Gifts? Check.
This is when it begins... all the holiday craziness! The non-stop party schedule officially starts tonight. Well, it's actually the hub's godson's birthday party tonight, but it's still a party! But yeah, from here till Christmas, our weekends are jam-packed with festive shindigs. I hate that we can't make it to all the big to-do's around town, but there are only so many days in December!
And given that the month of December is always so nuts, I always have the goal of getting all my Christmas shopping done and all gifts wrapped before December arrives. I think this is the FIRST year ever that I actually accomplished it! Well, technically I was wrapping the last few gifts on December 1st, but hey - it's done! I do have a couple of gifts left to buy, but they're for family friends we draw names with and I don't know who we've got yet, so can't buy those just yet. But otherwise, I'm 100% done and wrapped up! And it feels great. Plus, I love being able to admire all the fun prezzies under our tree for a few weeks rather than feverishly trying to get everything wrapped up on Christmas Eve (like last year).
And you know I have my master Santa spreadsheet where I do my gift budget! I had to delete Charlie's column this year... sniff, sniff. But yeah, I set a strict budget (because we're on a strict budget, duh) for each person. As I think of gift ideas randomly, I note them on the spreadsheet, because Lord knows that idea will disappear from my brain 5 minutes later. A lot of friends tell me they try to set and stick to a budget for gifts but always go overboard. Well, I don't have much of a choice but to stick to our budget, but I think my two big tips to do so would be (1) use cash - as in actual dollar bills, and (2) don't wait till the last minute.
I'm usually a big online shopper, but I think I only got like two gifts online this year and bought the rest in store. It's normally the opposite! But, yeah my best advice is to use cash if you're shopping in stores. We do cash envelopes for all of our spending anyway, so this is obviously not a big deal for me to do... but the easiest way to stick to a budget is to pull out the cash for that category (Christmas gifts, in this case), stick it in an envelope and write "Christmas Gifts." You buy Christmas gifts with the money out of that envelope. And only Christmas gifts. Once it's gone, you're done. So yeah, I think you'll pay a *little* bit more attention to how much you're spending, won't ya? Heck yeah, you will. Overspending is WAY too easy when swiping a card. Not so much with cash.
And I've found that any overspending that occurs, at least for me, is on those last minute gifts. I find that I'm not as frugal or cost-conscious because I'm in a hurry and I need to just get something so I can cross it off my list. Who cares if it was $10 more than I needed to spend? Plus at that point, the *joy* has about run out and I am OVER it. So yeah, I really try to avoid doing that! And I'm proud to say that I came in right on target this year! We budgeted a total of $500 for gifts. And that is really, really tight. We would LOVE to do much more, but hello... you know we're on our debt-busting mission. Our list is not huge - neither the hub or I have huge families. And outside of our fams, we really do not buy for many others except for a few close friends. But I of course make that $500 stretch as far as humanly possible. I always keep up with what I'm spending versus the value I'm getting on everything in my master spreadsheet. I didn't do quite as well as last year, but we did average about a 45% savings overall. Pretty decent. I'll give that a B-.
So how do y'all tackle Christmas shopping? Is there a method to your madness?
In other goings-on, we got an appointment set up with Dr. T for Thursday, the 16th. So I guess we'll decide at that point if I'll be doing another surgery or not. I started thinking about it this morning and remembered all the crap I had to do before my 2nd surgery and was like "OMG, am I going to have to do all that again for this one?" Lord, help me. Or help my husband! I remember Dr. T had me on Depot Lupron shots for a couple of months prior to the surgery. NOT fun! Major menopausal symptoms. Crazy hot flashes and the attitude to go with 'em. And then I was remembering the pre-op procedure I had to go through and how I nearly passed out in the bathroom afterward. Hmmm.... good times! Maybe I won't have to do all that this time though - I don't think I will - at least not the Lupron. Let's hope not. But anyway, we'll get the scoop on all that junk in a couple of weeks. For now, I'm enjoying little cheats here and there on Moo Goo. I'm not dumping the diet altogether - I stick to it when it's just me. But holiday parties and such? If it's something I REALLY want, yeah I'll be a little crazy and go for it. Oh but wine? That's a different story. I think I've had a bottle and a half of red wine since Wednesday. Ha!
Friday, October 15, 2010
Finding Contentment
“There is no end of craving. Hence contentment alone is the best way to happiness. Therefore, acquire contentment.” - Swami Sivananda
So I was listening to a bunch of debt-free screams on the Dave Ramsey Show today in my car while driving back from acupuncture. Dave often asks the callers what the hardest part of their journey was or what was their "key" to getting out of debt. There are lots of common answers... learning to say "no," sticking to a budget, working together with your spouse, for example. As I'm listening to these callers, I'm always imagining what the hub and I will say when we finally get to call in and scream. I think the hardest part and the easiest part -and certainly the most necessary part - of our debt-free mission is the monthly budget. But at the heart of it, I think the real key for us has been finding true contentment.
I've had satisfaction and contentment in my head a lot lately as the Beth Moore study I'm doing (with my girls' small group) is focusing this week on finding ultimate satisfaction in God. So I really have to credit God with my ability to be so content with where we are and what we have. You'll constantly see me joking about the decisions "old me" would've made versus the "new me." Because my world focus is so different than it was two years ago. You can see it spelled out in my blog... thumb back through my content from the first year or so and there's a lot of jibber jabber about shopping and the latest and greatest hot new item that I'm wanting. But over these last 24 months, you'll have to do a fair amount of digging to find much of anything devoted to shopping. Simply because I've barely been shopping in the last two years! I mean, seriously... you remember my shopping tally from 2009? As in total dollars spent shopping for myself? $45.57. Old me would've spent that much in a skinny minute on a random Tuesday afternoon without blinking.
I honestly can only point to God's intervention when it comes to my learning how to say NO. I've said it a million times, but when we made the decision as husband and wife to turn our finances around, get on a budget, and do this money thing the right way, we didn't look back. It was not an overnight success. It was very hard. But month after month, I began to trust God more and more and more. I could see him working and my faith got bigger. And somewhere along the way, saying NO was no longer hard to do. I'm not sure where exactly along the road it happened, but I'm just not at all tempted by new and shiny things anymore... whether they be shoes or furniture or cars or anything.
I think this change happened for several reasons. First, through this process, we've really learned the value of the dollar. We do all of our discretionary spending in cash. As in dollar bills. We do this because (a) we've found it's the only way to really stick to the budget and (b) when you use cash, it hurts more, so you therefore spend less. (This has been scientifically proven and is also, on the flip side, why fast food joints started taking cards.) Handing over cold hard cash is a lot harder than swiping a card. You can bet your britches I know my total before I get to the cash register, no matter where I am.
The second reason I think I've really found contentment is the fact that the hub and I are so focused on our goals. We constantly have our eye on the prize. Our debt snowball is taped to our bathroom mirror. It's there every day, staring us in the face. Dave said, "When something is important to you, you will move Heaven and earth to make it happen." Well, this is the most important thing to us right now - becoming debt-free. So spending money on things like shoes, which I already have a million of, seems ridiculous and I'm not even tempted. In fact many things I used to find so much value in somehow made their way over to ebay. I've learned that cash in my pocket is better.
The funny thing is, after two years of learning to rewire my thinking, I now have a hard time shopping when I actually do have money to spend. Whereas before, any little trinket that caught my eye would do... now it's a very well thought out process. Lots of weighing opportunity cost. OK, I've only got this $50... I've got to make it count! And don't you know I'll stretch that $50 as far as humanly possible. We set aside some money for the hub to get some new clothes for his new job this month. It felt SO weird to be shopping. Not a guilty feeling, just weird. Unfamiliar. And the way we approach a shopping trip is so vastly different than it was before.
But whether we can afford to shop in a given month or not, I must say that true contentment is nothing short of priceless. More now than ever, I realize chasing after the latest "must-have" item never truly satisfies. Solomon had it right... it's all so "meaningless." But don't get me wrong, girls... there's nothing wrong with shopping till you drop. If you've got the cash, go for it! There will be a day when I'll be back at it - rest assured! I never stopped loving "stuff." But don't go chasing contentment in a shopping bag. You won't find it there.
I've learned and am still learning that only God and God alone can truly satisfy. And this is the biggest and best reason that I've embraced real contentment. Instead of looking in my closet, or at my friends, or the Joneses, I'm looking up. This whole money makeover we've been doing the last couple of years has been more of a spiritual journey than a financial one. Of course it is greatly financial, but through this process our hearts have been changed. We're content. We're able to make sacrifices today more easily because we're on our way somewhere better. And that's where God is really doing his work.
And just for laughs on my way out, here's an old favorite SNL skit. Dave always plays this before his Live Event. It's hilarious because it's true...
So I was listening to a bunch of debt-free screams on the Dave Ramsey Show today in my car while driving back from acupuncture. Dave often asks the callers what the hardest part of their journey was or what was their "key" to getting out of debt. There are lots of common answers... learning to say "no," sticking to a budget, working together with your spouse, for example. As I'm listening to these callers, I'm always imagining what the hub and I will say when we finally get to call in and scream. I think the hardest part and the easiest part -and certainly the most necessary part - of our debt-free mission is the monthly budget. But at the heart of it, I think the real key for us has been finding true contentment.
I've had satisfaction and contentment in my head a lot lately as the Beth Moore study I'm doing (with my girls' small group) is focusing this week on finding ultimate satisfaction in God. So I really have to credit God with my ability to be so content with where we are and what we have. You'll constantly see me joking about the decisions "old me" would've made versus the "new me." Because my world focus is so different than it was two years ago. You can see it spelled out in my blog... thumb back through my content from the first year or so and there's a lot of jibber jabber about shopping and the latest and greatest hot new item that I'm wanting. But over these last 24 months, you'll have to do a fair amount of digging to find much of anything devoted to shopping. Simply because I've barely been shopping in the last two years! I mean, seriously... you remember my shopping tally from 2009? As in total dollars spent shopping for myself? $45.57. Old me would've spent that much in a skinny minute on a random Tuesday afternoon without blinking.
I honestly can only point to God's intervention when it comes to my learning how to say NO. I've said it a million times, but when we made the decision as husband and wife to turn our finances around, get on a budget, and do this money thing the right way, we didn't look back. It was not an overnight success. It was very hard. But month after month, I began to trust God more and more and more. I could see him working and my faith got bigger. And somewhere along the way, saying NO was no longer hard to do. I'm not sure where exactly along the road it happened, but I'm just not at all tempted by new and shiny things anymore... whether they be shoes or furniture or cars or anything.
I think this change happened for several reasons. First, through this process, we've really learned the value of the dollar. We do all of our discretionary spending in cash. As in dollar bills. We do this because (a) we've found it's the only way to really stick to the budget and (b) when you use cash, it hurts more, so you therefore spend less. (This has been scientifically proven and is also, on the flip side, why fast food joints started taking cards.) Handing over cold hard cash is a lot harder than swiping a card. You can bet your britches I know my total before I get to the cash register, no matter where I am.
The second reason I think I've really found contentment is the fact that the hub and I are so focused on our goals. We constantly have our eye on the prize. Our debt snowball is taped to our bathroom mirror. It's there every day, staring us in the face. Dave said, "When something is important to you, you will move Heaven and earth to make it happen." Well, this is the most important thing to us right now - becoming debt-free. So spending money on things like shoes, which I already have a million of, seems ridiculous and I'm not even tempted. In fact many things I used to find so much value in somehow made their way over to ebay. I've learned that cash in my pocket is better.
The funny thing is, after two years of learning to rewire my thinking, I now have a hard time shopping when I actually do have money to spend. Whereas before, any little trinket that caught my eye would do... now it's a very well thought out process. Lots of weighing opportunity cost. OK, I've only got this $50... I've got to make it count! And don't you know I'll stretch that $50 as far as humanly possible. We set aside some money for the hub to get some new clothes for his new job this month. It felt SO weird to be shopping. Not a guilty feeling, just weird. Unfamiliar. And the way we approach a shopping trip is so vastly different than it was before.
But whether we can afford to shop in a given month or not, I must say that true contentment is nothing short of priceless. More now than ever, I realize chasing after the latest "must-have" item never truly satisfies. Solomon had it right... it's all so "meaningless." But don't get me wrong, girls... there's nothing wrong with shopping till you drop. If you've got the cash, go for it! There will be a day when I'll be back at it - rest assured! I never stopped loving "stuff." But don't go chasing contentment in a shopping bag. You won't find it there.
I've learned and am still learning that only God and God alone can truly satisfy. And this is the biggest and best reason that I've embraced real contentment. Instead of looking in my closet, or at my friends, or the Joneses, I'm looking up. This whole money makeover we've been doing the last couple of years has been more of a spiritual journey than a financial one. Of course it is greatly financial, but through this process our hearts have been changed. We're content. We're able to make sacrifices today more easily because we're on our way somewhere better. And that's where God is really doing his work.
And just for laughs on my way out, here's an old favorite SNL skit. Dave always plays this before his Live Event. It's hilarious because it's true...
Sunday, October 10, 2010
(Real) Change is here.
Well I certainly didn't intend to take an entire week to post about our day with Dave last weekend... but you know, life. It's been a busy, busy week here with the approaching 10/15 deadline at work and of course, my birthday! I was out every night this past week, so I had very few waking hours to visit bloggy world. But I can't let any more time pass or I'll forget everything!
So the hub and I volunteered last Saturday at Dave Ramsey's LIVE Event here in Atlanta. We've seen his live show a couple of times but this is the first year we've volunteered. It was a very looooong day. We had to be at the arena at 9am and didn't leave till around 8pm. We were on our feet for many of those hours. But we did get to see most of Dave's show (it's a 5 hour show - kind of like a seminar, but awesome). And I did get to meet Dave and shake his hand! (I was too frantic to get a picture though.) We manned an FPU table before the show and during the breaks. Our table wasn't in the best of spots for traffic, but we did sell a lot of kits (the materials for the 13-week class). Working with Dave's team was so fun too... you can really tell what a great organization it is just from how his people interacted with us and how the flow of the day went along. They even had us take 5 minutes to pray over Dave and his message and for all the people who'd be walking through those doors that SO needed to hear truth (whether they knew it or not). Like I've said many times, it's 5 hours that'll change your life, if you let it.
It was really cool being on the "other" side this time, seeing the crowds come in. Around 7,000 people. There were lots of those (like us) who had been through FPU and were big Dave fans. But there were SO many people there that were obviously drug there or didn't really know what the heck it was all about - and that's what I was so grateful for. I seriously get teary thinking of these Dave virgins getting a big helping of truth and hope. Many of them never saw it coming. And many of them never saw this nerdy volunteer coming either... Hello!
My dad asked me if his show was any different this time around. Nope. That's the amazing thing about Dave. It doesn't matter what's going on in the world, what the stock market looks like, or what the unemployment rate is... his message is the same. Because it's simple and it works. And the fact that he can deliver that same message, those same jokes, and same quotes over and over again with such enthusiasm is nothing short of a gift. I get annoyed if I have to repeat one sentence to my husband! Seriously.
But speaking of my awesome husband, I must say the *coolest* happening that day involved him.
A couple of years ago, we enrolled in an FPU class immediately after seeing Dave live for the first time. Like literally butt in chair the very next day at a local church for FPU Class #1. We were sold. And when you get fired up about something, you like to tell the world. Well, most of y'all don't know my husband, but he is the type of person who'll have a conversation with a doorknob. He LOVES to talk and engage people. (I am the opposite, mind you.) Seriously I can name several friends of ours that we know only because the hub randomly struck up a conversation with these people in the strangest of places. Along with his gift for gabbing, he has a true heart for helping. It's one of the many things I love about this man.
So one afternoon the hub was visiting a local real estate agency to introduce himself to a few of the agents and drop off some business cards (this was back when he was doing mortgage lending). While he was there, he ran into an agent he had never met and while saying hello, he could tell she was upset and on the verge of tears. As he's telling me this, I'm picturing a woman who's doing everything she can to hold herself together at work but she's just seconds away from breaking down. We've all had those days! So obviously there's some kind of personal issue going on with her. The hub says to the agent, "Hey, let's go sit down... tell me what's going on." So she led him to a conference room and UNLOADED. This of course was back when the real estate market was plummeting, so she told the hub of her terrifying financial situation. She was in danger of losing her home and her car. She was absolutely hopeless and scared. The hub listened to her, told her about our journey (which was just starting!) and told her about FPU. "I'm open to anything," she told him. So he gave her $100 - as a gift. Not that $100 would solve her problems, but just as a gesture. (He likes giving, you know.)
A few months later, the hub ran into her at a baseball game. He hadn't talked to her since that day and she told him that she had just gotten started with a local FPU class. She seemed to be making some progress, but he could tell she was still strained. Some people who go through the class never quite "buy into" it... the truth is it involves a lot of hard work, tough decisions, and sacrifice to really work it. But hopefully she would be one of the ones that got it. He didn't hear from her after that day. That was nearly two years ago.
Last Saturday we were on the final "break" of Dave's show, selling FPU kits at our table. Sometimes they'll send volunteers up and down the stairs inside the arena wearing a goofy looking apron selling books like a hot dog vendor at a baseball game. We saw one of those particular volunteers coming down the corridor towards us... apron on, arms full top-to-bottom with children's gift bags. She was a feisty looking volunteer - you know how some people just have that "go-getter" look? Yeah, she had it. Well she's about to pass our table and the hub stops her. It's the real estate agent.
They both were just completely shocked to see each other. "I can't believe you're here!" Over and over. Now I was not there the day the hub first met this woman, but he said this volunteer was a completely different woman than the agent he met two long years ago. She was absolutely on fire! She explained that she's now leading an FPU course and that a bunch of her class members were there at the event. She had tried to contact the hub several times but only had his old number and email from his former job (which he left over a year ago). And then the thing that makes me cry every time I think about it... With tears in her eyes and her hands on my husband's arms she said, "Scott, there are so many people here today because of you."
Yeah, I about lost it. Total God moment. And so humbling to see how God used my sweet husband two years ago - in a major way - without him even realizing it. I'm so proud that he recognized someone hurting and took the time to say, "I'm here." I mean, who does that with a stranger?! Amazing. And just further confirmation that we're on the right path ourselves. One of those frozen moments in time when all you can say is, WOW.
So yes, last Saturday was a GREAT day. We were completely worn out and in bed by 9pm that night! But it was so rewarding and I definitely want to do it again next year. It's a good day when you can climb into bed and think to yourself, "I helped change lives today." It just doesn't get any better than that.
So the hub and I volunteered last Saturday at Dave Ramsey's LIVE Event here in Atlanta. We've seen his live show a couple of times but this is the first year we've volunteered. It was a very looooong day. We had to be at the arena at 9am and didn't leave till around 8pm. We were on our feet for many of those hours. But we did get to see most of Dave's show (it's a 5 hour show - kind of like a seminar, but awesome). And I did get to meet Dave and shake his hand! (I was too frantic to get a picture though.) We manned an FPU table before the show and during the breaks. Our table wasn't in the best of spots for traffic, but we did sell a lot of kits (the materials for the 13-week class). Working with Dave's team was so fun too... you can really tell what a great organization it is just from how his people interacted with us and how the flow of the day went along. They even had us take 5 minutes to pray over Dave and his message and for all the people who'd be walking through those doors that SO needed to hear truth (whether they knew it or not). Like I've said many times, it's 5 hours that'll change your life, if you let it.
It was really cool being on the "other" side this time, seeing the crowds come in. Around 7,000 people. There were lots of those (like us) who had been through FPU and were big Dave fans. But there were SO many people there that were obviously drug there or didn't really know what the heck it was all about - and that's what I was so grateful for. I seriously get teary thinking of these Dave virgins getting a big helping of truth and hope. Many of them never saw it coming. And many of them never saw this nerdy volunteer coming either... Hello!
My dad asked me if his show was any different this time around. Nope. That's the amazing thing about Dave. It doesn't matter what's going on in the world, what the stock market looks like, or what the unemployment rate is... his message is the same. Because it's simple and it works. And the fact that he can deliver that same message, those same jokes, and same quotes over and over again with such enthusiasm is nothing short of a gift. I get annoyed if I have to repeat one sentence to my husband! Seriously.
But speaking of my awesome husband, I must say the *coolest* happening that day involved him.
A couple of years ago, we enrolled in an FPU class immediately after seeing Dave live for the first time. Like literally butt in chair the very next day at a local church for FPU Class #1. We were sold. And when you get fired up about something, you like to tell the world. Well, most of y'all don't know my husband, but he is the type of person who'll have a conversation with a doorknob. He LOVES to talk and engage people. (I am the opposite, mind you.) Seriously I can name several friends of ours that we know only because the hub randomly struck up a conversation with these people in the strangest of places. Along with his gift for gabbing, he has a true heart for helping. It's one of the many things I love about this man.
So one afternoon the hub was visiting a local real estate agency to introduce himself to a few of the agents and drop off some business cards (this was back when he was doing mortgage lending). While he was there, he ran into an agent he had never met and while saying hello, he could tell she was upset and on the verge of tears. As he's telling me this, I'm picturing a woman who's doing everything she can to hold herself together at work but she's just seconds away from breaking down. We've all had those days! So obviously there's some kind of personal issue going on with her. The hub says to the agent, "Hey, let's go sit down... tell me what's going on." So she led him to a conference room and UNLOADED. This of course was back when the real estate market was plummeting, so she told the hub of her terrifying financial situation. She was in danger of losing her home and her car. She was absolutely hopeless and scared. The hub listened to her, told her about our journey (which was just starting!) and told her about FPU. "I'm open to anything," she told him. So he gave her $100 - as a gift. Not that $100 would solve her problems, but just as a gesture. (He likes giving, you know.)
A few months later, the hub ran into her at a baseball game. He hadn't talked to her since that day and she told him that she had just gotten started with a local FPU class. She seemed to be making some progress, but he could tell she was still strained. Some people who go through the class never quite "buy into" it... the truth is it involves a lot of hard work, tough decisions, and sacrifice to really work it. But hopefully she would be one of the ones that got it. He didn't hear from her after that day. That was nearly two years ago.
Last Saturday we were on the final "break" of Dave's show, selling FPU kits at our table. Sometimes they'll send volunteers up and down the stairs inside the arena wearing a goofy looking apron selling books like a hot dog vendor at a baseball game. We saw one of those particular volunteers coming down the corridor towards us... apron on, arms full top-to-bottom with children's gift bags. She was a feisty looking volunteer - you know how some people just have that "go-getter" look? Yeah, she had it. Well she's about to pass our table and the hub stops her. It's the real estate agent.
They both were just completely shocked to see each other. "I can't believe you're here!" Over and over. Now I was not there the day the hub first met this woman, but he said this volunteer was a completely different woman than the agent he met two long years ago. She was absolutely on fire! She explained that she's now leading an FPU course and that a bunch of her class members were there at the event. She had tried to contact the hub several times but only had his old number and email from his former job (which he left over a year ago). And then the thing that makes me cry every time I think about it... With tears in her eyes and her hands on my husband's arms she said, "Scott, there are so many people here today because of you."
Yeah, I about lost it. Total God moment. And so humbling to see how God used my sweet husband two years ago - in a major way - without him even realizing it. I'm so proud that he recognized someone hurting and took the time to say, "I'm here." I mean, who does that with a stranger?! Amazing. And just further confirmation that we're on the right path ourselves. One of those frozen moments in time when all you can say is, WOW.
So yes, last Saturday was a GREAT day. We were completely worn out and in bed by 9pm that night! But it was so rewarding and I definitely want to do it again next year. It's a good day when you can climb into bed and think to yourself, "I helped change lives today." It just doesn't get any better than that.
Thursday, September 23, 2010
One more day!
I'll be back later today with my Moo Goo eats, but just wanted to post a quick reminder to you all to enter my Dave Giveaway! All you've got to do is leave a comment on this post telling me what you'd love to do with your money if you were DEBT FREE! It's fun to dream, so come play! Up for grabs is a signed copy of The Total Money Makeover along with a 3-month subscription to the online TTMM site. Enter by tomorrow!
Also, Atlanta pals, don't forget to grab your tickets for Dave's LIVE Event on Saturday Oct 2! It's one afternoon that has the potential to change the course of the rest of your life. It did for us two years ago! Hope to see you there! Here's a clip of an old entry video from one of his past shows. OMG it gives me goose bumps - I'm such a nerd.
Also, Atlanta pals, don't forget to grab your tickets for Dave's LIVE Event on Saturday Oct 2! It's one afternoon that has the potential to change the course of the rest of your life. It did for us two years ago! Hope to see you there! Here's a clip of an old entry video from one of his past shows. OMG it gives me goose bumps - I'm such a nerd.
Friday, September 17, 2010
Woo hoo! It's a Giveaway!
So this has been a good week. Scratch that. Make it a GREAT week! The hub is officially EMPLOYED!!! As in full-time, 9-5, desk with a chair, four walls, and a W-2 to boot! And big props to my husband for having the courage to make this job happen. He was initially turned down for the spot a month ago, but on a whim decided to take the guy who interviewed him out to lunch and said, "you need to hire me, fool." OK, maybe not in those words. But seriously, I'm amazed by his spirit. I SO could not do that. But wow, what a year it has been. I've stated many times that I didn't think we'd make it out of 2009 alive... the hub's last full-time pay check was deposited into our account on 9/30/2009. And here we are, right at a year later, still kickin'... and praise God, he's been blessed with a new, very exciting opportunity. These last 12 months have been a true exercise in faith, trust, and most of all... patience! God is so faithful and we are just overwhelmed with gratitude. And excitement!
So now the real test begins.... over the past two years we've been "forced" to live on a very tight budget. I mean, if the money's not there, you can't spend it. Eating and paying bills were our priorities. Now with the potential of a lot more income coming in, we will have to really hunker down. Because now doing the *wise* thing will truly be a choice. Eye on the prize!
And I must say, as usual, Dave Ramsey could not be coming to town at a better time. He always does that! He must be checking our schedule or something. We are volunteering at his Live event when he comes to Atlanta on October 2. And yesterday afternoon my mom and I went to his "tweet-up" and walked away with some fabulous freebies! So in honor of a fabulous new job for the hub, and Dave's arrival here in a few weeks, I'm doing a great Dave giveaway!
If you're not familiar with Dave's teachings, this book is the best place to get your feet wet. The Total Money Makeover, if you work it, will change your life. Personally, our perspective on money is completely different today than it was two years ago. We've learned how to handle money the way God intended us to, and it has done wonders for our marriage and faith. The thing about the "makeover" is that it's a lifelong journey. It's not a 6-week program or something that only makes sense for a certain crowd. It's for everybody, no matter your financial situation. Whether you're living paycheck to paycheck or counting your millions in your nest egg, everyone can learn something! And what makes his advice so real and relative is the fact that he's been there. As in, 20 years ago he went bankrupt and lost everything. He then decided to figure out how money *really* works. After meeting with millionaire after millionaire, he learned the real key to building wealth is getting out of debt and staying out of debt. And the real charm of the book is his straight-forward, no-nonsense approach, topped with his uncanny humor. What's not to love?
So, again, in celebration of a fantastic new job for the hub and Dave's upcoming Live event, I am giving away a SIGNED copy of Dave's NY Times best-selling book, The Total Money Makeover, along with a free 3-month subscription to his online Total Money Makeover website where you can access budgeting software, get involved with an online community of people going through the program, and much more.
So I'm asking you to dream a little... To enter, leave a comment on this post with your answer to the following question...
If you were debt-free... if you had no payments to anyone... what's one thing you'd love to do with your money? Your income is your most valuable wealth-building tool. When it doesn't have a bunch of other people's names on it, you can do some amazing things. So, what would you do?
You have until Friday, September 24th at 12 midnight EST to enter! I will announce the lucky winner the following Saturday. Go get 'em!
P.S. God, awesome job on answering big prayer request #1. If you answer #2 (for a baby, duh), that would be friggin' sweet. And September 2010 will officially go down in history as my favorite month EVER!
So now the real test begins.... over the past two years we've been "forced" to live on a very tight budget. I mean, if the money's not there, you can't spend it. Eating and paying bills were our priorities. Now with the potential of a lot more income coming in, we will have to really hunker down. Because now doing the *wise* thing will truly be a choice. Eye on the prize!
And I must say, as usual, Dave Ramsey could not be coming to town at a better time. He always does that! He must be checking our schedule or something. We are volunteering at his Live event when he comes to Atlanta on October 2. And yesterday afternoon my mom and I went to his "tweet-up" and walked away with some fabulous freebies! So in honor of a fabulous new job for the hub, and Dave's arrival here in a few weeks, I'm doing a great Dave giveaway!
If you're not familiar with Dave's teachings, this book is the best place to get your feet wet. The Total Money Makeover, if you work it, will change your life. Personally, our perspective on money is completely different today than it was two years ago. We've learned how to handle money the way God intended us to, and it has done wonders for our marriage and faith. The thing about the "makeover" is that it's a lifelong journey. It's not a 6-week program or something that only makes sense for a certain crowd. It's for everybody, no matter your financial situation. Whether you're living paycheck to paycheck or counting your millions in your nest egg, everyone can learn something! And what makes his advice so real and relative is the fact that he's been there. As in, 20 years ago he went bankrupt and lost everything. He then decided to figure out how money *really* works. After meeting with millionaire after millionaire, he learned the real key to building wealth is getting out of debt and staying out of debt. And the real charm of the book is his straight-forward, no-nonsense approach, topped with his uncanny humor. What's not to love?
So, again, in celebration of a fantastic new job for the hub and Dave's upcoming Live event, I am giving away a SIGNED copy of Dave's NY Times best-selling book, The Total Money Makeover, along with a free 3-month subscription to his online Total Money Makeover website where you can access budgeting software, get involved with an online community of people going through the program, and much more.
So I'm asking you to dream a little... To enter, leave a comment on this post with your answer to the following question...
If you were debt-free... if you had no payments to anyone... what's one thing you'd love to do with your money? Your income is your most valuable wealth-building tool. When it doesn't have a bunch of other people's names on it, you can do some amazing things. So, what would you do?
You have until Friday, September 24th at 12 midnight EST to enter! I will announce the lucky winner the following Saturday. Go get 'em!
P.S. God, awesome job on answering big prayer request #1. If you answer #2 (for a baby, duh), that would be friggin' sweet. And September 2010 will officially go down in history as my favorite month EVER!
Friday, August 20, 2010
Financial Goals: Eye on the Prize!
The difference between a dream and a goal is a plan.
I either heard that on the radio or read it on twitter earlier this week (via Dave Ramsey, duh)... love it! And it's so true. You can't get to your destination without a map. Stuck-in-the-mud right now or not, what keeps us going and plugging away each day is focusing on where the hub and I want to be 2 years, 5 years, 10 years, and 30 years from now. It's incredible to think about! Creating financial goals together is so important (and fun!). It's about asking, "Where do we want to go, what do we want to do?" and then putting together a plan to get there.
For us, the quick and dirty version is to rid ourselves of all debt, stay out of debt, build wealth and give. Obviously our strides are short right now as we're still in *income crisis* mode while the hub is searching for full-time work. But even with our tiggity-tight budget, every decision is made with these goals in mind. And of course we have other "fun" goals mixed in... things we want to do with the house, traveling, newer cars, a boat.... I could go on! Every goal of ours, big or small, has a strategic plan. And just to share with you all, here are some of our biggest and uber exciting goals for the not-too-distant-future...
1. Become debt-free (but the house) by the end of 2011. The absolute dates here are fuzzy right now since our income is up in the air. Once the hub lands a new job, we'll be able to knock the shit out of this one. Progress right now is very slow - but there is still progress every month. And we're throwing one heck of a party when we finally get there!
2. Get college and wedding accounts rolling for the (future) kids. Wedding? Oh hell yeah. I told the hub the other day, "OK, if we have a daughter and put $100 away each month, with 10% growth we'll have $100,000 for a wedding by the time she graduates college!" Of course by then, $100k will only be worth about $50,000 or so in today's dollars. But we can easily do fabulous on $50,000! I love weddings, you know. These are the crazy dreams I come up with! Also, we plan to get college funds rolling as soon as possible too. Pigs will fly over a frozen hell before we let our kids get a school loan. And I would love, love, love for our kids to go to my old junior high and high school, which is private... so that of course would be figured in there too. But none of this can happen before #1 (getting debt-free) is done. And there's some other stuff that's gotta happen first too (emergency fund, etc.), but this is a fun one to think about!
3. Pay off the house. I get a head-to-toe rush through my body thinking about this one. Maybe it's the Holy Spirit saying, "Git 'r done!" Who knows... but wow, can't wait to get there! Again, it's a little hard to speculate in our current income situation, but we expect to be able to accomplish this by my 40th birthday. I'm about to turn 33. But I look 19! (So I was recently told. Thanks, checkout guy at Costco!) All these goals - this one especially - have refueled my drive and energies at work. Well, and my job being the only full-time one between us right now kinda forces us both to appreciate it more! But having this goal in the back of my head, everyday, helps me plug away. And we've also discussed that when the house is gone, I'll have the freedom to be a SAHM or do whatever I want. So that's incredible to think about too!
4. Become millionaires within 10 years. This one is just fun, right? And really, all these steps we are making will easily lead us here, so it is really just icing on the cake. This should happen very quickly after #3 is done. I'm a nerd, so you know I've run the numbers! Millionaires with no debt. No payments to anyone. Can you imagine the amazing things we will be able to do? The giving we can do? The fun we can have? The wealth we can build? I saw a segment on the local news this week where a nearby Boys & Girls Club location was vandalized and all of their A/C units were stolen. In this incredible heat! That made my blood boil. I want to be in a position where we can cut them a check and make them whole again. That's the kind of stuff I get PUMPED about! That is true life, right there. And we cannot wait! As much as the hub and I love *stuff* and love to do fun things and travel and whatnot, we really have a heart for giving. I so cannot wait!
You guys always hear me talking about the budget, cutting corners, NOT shopping, paying off debt... well, this is WHY we do it. Because we've got somewhere to be and we want to get there as quickly as possible. It involves a lot of sacrifice today. Saying "no" a lot of times to friends who want to go out, taking "staycations" instead of the real thing, driving a 12 year old car that locks up every time you try to put it in gear... but we're content. We're content because we know where we're going. We have to say "no" a lot right now so that one day we can say "YES!" And my sweet 98 Accord will get us there just fine, won't ya, girl?!
Friday, August 6, 2010
e.l.f. - A Love Affair
I know, I haven't gabbed about a product or gushed over some new accessory in ages. It's funny how much my blog has changed focus over the last three years, but so goes my life! I write about what's going on, and there's really not much of any shopping going on here... so yeah. I usually send my J. Crew catalogs straight to the recycle bin. BUT one thing you can't deny me is my makeup. I still gotta look good, right?!
I found out about e.l.f. several years ago when they first came on the scene. The whole "everything is $1" intrigued me... could this be for real? Uh yeah, it was. Of course now they've totally expanded their line and have different collections with higher price points. But even the highest ones are ridiculously cheap when you compare them to drugstore makeup brand prices, much less swanky high-end cosmetic lines. At only $1 an item, I grabbed a ton of products on my first order years ago - I mean, what's to lose? If it sucks, you only wasted a dollar, right? Well, fast forward to now... and nearly every single item in my makeup drawer is stamped with "e.l.f."
I found out about e.l.f. several years ago when they first came on the scene. The whole "everything is $1" intrigued me... could this be for real? Uh yeah, it was. Of course now they've totally expanded their line and have different collections with higher price points. But even the highest ones are ridiculously cheap when you compare them to drugstore makeup brand prices, much less swanky high-end cosmetic lines. At only $1 an item, I grabbed a ton of products on my first order years ago - I mean, what's to lose? If it sucks, you only wasted a dollar, right? Well, fast forward to now... and nearly every single item in my makeup drawer is stamped with "e.l.f."
I've always been big into makeup - it's just fun. And I've tried all kinds of brands and labels when it comes to cosmetics. I was a pretty tried and true Estee Lauder fan in high school and beyond, with a little Bobbi Brown mixed in... and maybe a dash of MAC, Sephora, and other trendy brands here and there. With the exception of my liquid base and/or concealer (which has always been Almay), I was an exclusive department store brand makeup girl. I was a sucker for the free-gift-with-purchase. Even though I'd maybe use like *one* item out of that bag - ha! But like I said, when I caught word of this online cosmetic company where everything was $1 - I had to give it a try.
Little by little, my department store cosmetic items were being replaced by e.l.f. products. The last to go? My automatic eye pencil from Estee Lauder. It was quite the revelation, if you remember. Now the only items I use daily that are not e.l.f. are my Almay wand concealer and whatever mascara I'm using. Mascara is the only product they haven't quite mastered yet. I'll be happy to switch when they do, but for now I stick with Maybelline - either the old faithful pink and green bottle or the new Stiletto one.
If you're not familiar with e.l.f., there's a few things you should know. First, there is always ALWAYS a promotion going on. Never ever check out without entering some kind of coupon code. By always, I mean there is at least one promotion/coupon code available every single day. And often more than one, so you have to choose which one is the best deal for you. The best way to stay in the know is to become an email subscriber. The promotions are advertised via email, twitter, etc and most often are NOT made known on the website. I usually order from e.l.f about once every 3 months, spending about $30 (including shipping). And that's for A LOT of stuff. I wait for the bigger promotions to come out and then I jump on and order everything I need and more. As I'm about to show you, most of the products I use come from their all natural mineral line. Unless I'm just desparate and out of product, I will only purchase new items when they're at least 50% off. They will usually run promos by specific collections... like one week all Studio items are 50% off, then a couple of weeks later all Mineral items are BOGO 50% off, etc. But like I said, I try to hold out for the bigger ones... like 60% off the entire site (that's the last one I took advantage of) or 75% off all Minerals. Point is - there is always a promotion, so never ever pay full price.
Second, the company now has four main "collections" of products...
- The main e.l.f. line, which is your basic everything-is-$1 stuff. I still snag some of these items whenever I'm purchasing. And you can actually find some of these at Target. I've seen a small selection at Kroger also. But whatever you've seen in stores is a teeny, teeny sampling of what's online. These products are great stocking stuffers and I've seen brides use them a lot to fill goody bags for bridesmaids. Great fun! And an excellent way to experiment with fun new colors on the cheap.
- The Studio collection, which they dub as their "professional" line. I've used a couple of these products, namely the eyeliner and shadow stick which led me to dump my faithful Estee Lauder liner after 16+ years. Price point on this line is generally $3 (but again, wait till they go on sale).
- The Minerals collection, my personal favorite! I've tried just about every product in this collection and have fallen in love with most all of it. I'll reveal my top personal picks below. The collection is all natural and 100% mineral based. Price point for most items is $3-5. (Don't make me mention the sales again.)
- The Bath & Body collection, which is basically your bath gels, lotions, etc. Items are generally $4 each. No real steal of a deal here except for the body butter. Compare it to The Body Shop's Body Butter for $14 and up.... yeah, I'll go with the $4 tub from e.l.f., thanks. As for the hand soap? I'll pass. I refuse to pay more than $1 for a bottle of hand soap.
1. Mineral Eyeshadow, $3 each. OMG, so fun. Such a great rainbow of colors to choose from, and they go on beautifully. I love the texture and they're easy to apply as lightly or as heavily as you want. Most colors have a subtle shimmer to them, but a few (labeled matte) do not. These are the only thing I use for eyeshadow anymore. Love, love, love them.
2. Mineral Lip Gloss, $3 each. It took me a while, but I found my perfect lip gloss. I've tried every other lip gloss e.l.f. has to offer - this one is the best by far. My favorite shades are Trendsetter, Pageant Princess, and Sorority Girl.
3. Mineral Concealer, $5 each. Yes, it's called "concealer" but I actually use it as my foundation. I've tried the Mineral Foundation as well, but none of the shades seemed to work just right for me and my skin tone. But the "light" shade of the concealer does... and I can't tell the difference between the concealer or foundation really. So I use my Almay wand concealer to help cover up any blemishes or discoloration on my face, and then I apply the Mineral concealer lightly on top (which is basically a very fine loose powder). I don't use liquid foundation anymore after having discovered this stuff. If you've been wanting to try a mineral foundation, e.l.f. is a great way to do it without breaking the bank.
4. Mineral Eye Liner, $3 each. Yep, as soon as this product debuted I gave it a try and immediately fell in love. It tops the Studio collection liner that I mentioned, but I still use both since they offer different shades in each. LOVE this product a million times over. I have every color but most often wear Ash or Midnight.
5. Mineral Blemish Kit, $8 each. I know, quite the *splurge* on this site! But you won't go through this product nearly as quickly as a foundation or regular concealer. (And hello, again, these are list prices - not what I actually pay.) I don't use this everyday. It's basically a very, very fine powder that helps cover up blemishes or red spots. It only comes in one shade, and may not work if you have very dark skin - I don't know. But for me, it's awesome. Sometimes my wand concealer won't completely conceal a particularly stubborn zit or blemish. Mineral Blemish Kit to the rescue! It also comes with a special brush for application.
So those are my faves. What are some of yours? If you don't have any, you need to get some. Hop on their site and find some goodies. The great thing is, they have tons of reviews on their products. So it's easy to get a feel for what people like and don't like. Enjoy!
Friday, July 30, 2010
Reader Question: How do you find peace?
Yay for Fridays off! I only have two more after this week, so I'm really trying to soak up the fun while it lasts. What will I do when I have to return to 5 day work-weeks? Goodness. The hub is doing some PT work today, so it's just me and the girls at the house. I've got some small projects on the to-do list, but nothing crazy.
So last week I got this great email from Jenn over at Living the Good Life asking how I manage not to lose my cool when money seems to be leaving a heck of a lot faster than it's coming in (story of our current lives!). Here's a bit of her message...
"My husband and I have paid off all of our debt with the exception of one car and our house. We're now working to pay that car off and save up as much money as we can so that we can move in the next year but it seems like one bad thing after another keeps happening and I feel like I'm going to have a panic attack watching our savings dwindle down! It's really the most depressing thing. Since the end of May we've had to pay $7k in miscellaneous expenses (car repairs, plane tickets to a family member's wedding, getting a nice family of bats out of our attic, the list goes on and on.)---how do you keep from totally freaking out when it feels like you're just hemorrhaging money?? I know our savings is there for emergencies, but I have such anxiety over all of the unwanted and unnecessary spending. Any advice for me?!"
I totally don't consider myself a money expert by any means, but the hub and I have been to hell and back when it comes to figuring out how to win with money. So for that reason, I'm very passionate about the subject and freaking LOVE to talk about it. So I always welcome any questions on the matter and if our story can help others in some way, bring it. And by the way, being a CPA doesn't mean you're good with money. I mean haven't you seen doctors and nurses outside the hospital doors smoking? Yeah.
We're currently held up in what I call our stuck-in-mud phase of our plan. Which makes it hard to move forward, but we are. Creeping, but moving. As most of y'all know, the hub and I are total Dave Ramsey groupies. Me especially. It's like Jesus, then Dave. And we're currently on Baby Step #2, paying off all of our consumer debt (everything but the house). The hub has been unemployed for about 10 months now - which of course has turned our debt busting shovel into a flimsy plastic spork. So we're really just in survival mode right now until the hub is able to find full-time work. We have been really blessed with some great part-time opportunities that have helped along the way. I didn't think we'd make it past 2009 on my income alone. And here we are, knocking on the door of August 2010.
I can very much relate to Jenn's anxiety. Our situation isn't the same, but you know we girls tend to *freak OUT* when it comes to money (or the lack of really). It's a security issue for us, while it's a pride issue for the guys. So it's totally natural. But how do I keep from letting that anxiety and fear overtake me? I shared with Jenn what have been three personal mainstays in my life over the last couple of years that have helped me maintain peace in financially stressful times...
1. Tithing. Back in October 2008, when we ran our very first (EVER) monthly budget together, we decided then and there to start tithing (giving 10% off the top of our income to our local church). The hub and I have always loved to give when able, but we were never intentional about it before. We don't tithe because it's some item on a checklist of "things Christians do." We don't do it because God needs the money (ha!). It's simply about trust, and that's it. "God, we've obviously been idiots here, so we're going to do it your way from now on and trust YOU and not ourselves." We've been doing this for almost two years and the hub and I agree that is the single best decision we've ever made together. It has truly changed our lives. It looks ridiculous on paper, but that 10% comes right off the top - no matter what. No. Matter. What. We've never faltered on it, not even in months where we had no idea how we'd make it to the next. I can't even put into words the tremendous peace this has brought us. It is not an easy change to make. But nothing truly good comes without great sacrifice.
2. Worry not. Ha, easier said than done, right?! Oh how that worrisome fear can be so overpowering and crippling sometimes. And that's why I must continually drill this passage into my head...
3. Pray. My daily prayer to God is that I seek his wisdom in my everyday decisions with money. That we take all of this one day at a time. That we look to him for strength instead of being handicapped by worry and fear. And to recognize how truly blessed we are that we've made it this far, for the amazing life lessons we've learned along the way, and for the work God has done in our hearts. When you feel overcome with fear, the best thing you can do is get down on your knees.
So there you have it. And yeah I know it's completely engrossed with God stuff. But hey kids, true peace is only found with God so for me, there's no other answer really. I know lots of people out there are struggling financially for many reasons... Maybe it's an income crisis, like us, or perhaps you've got a big storm coming that's going to suck up all your savings, or maybe you've lost everything but the shirt on your back. Whatever it is, terrifying as it can be, there is always hope. You always hear about these people taking their lives over financial crises. Fear really can take your life. The trouble is, they had no hope. There is always hope. You have to succumb to the fact that you can't do it on your own. So get on your knees and ask your Father for some help.
I hope you all find true peace!
So last week I got this great email from Jenn over at Living the Good Life asking how I manage not to lose my cool when money seems to be leaving a heck of a lot faster than it's coming in (story of our current lives!). Here's a bit of her message...
"My husband and I have paid off all of our debt with the exception of one car and our house. We're now working to pay that car off and save up as much money as we can so that we can move in the next year but it seems like one bad thing after another keeps happening and I feel like I'm going to have a panic attack watching our savings dwindle down! It's really the most depressing thing. Since the end of May we've had to pay $7k in miscellaneous expenses (car repairs, plane tickets to a family member's wedding, getting a nice family of bats out of our attic, the list goes on and on.)---how do you keep from totally freaking out when it feels like you're just hemorrhaging money?? I know our savings is there for emergencies, but I have such anxiety over all of the unwanted and unnecessary spending. Any advice for me?!"
I totally don't consider myself a money expert by any means, but the hub and I have been to hell and back when it comes to figuring out how to win with money. So for that reason, I'm very passionate about the subject and freaking LOVE to talk about it. So I always welcome any questions on the matter and if our story can help others in some way, bring it. And by the way, being a CPA doesn't mean you're good with money. I mean haven't you seen doctors and nurses outside the hospital doors smoking? Yeah.
We're currently held up in what I call our stuck-in-mud phase of our plan. Which makes it hard to move forward, but we are. Creeping, but moving. As most of y'all know, the hub and I are total Dave Ramsey groupies. Me especially. It's like Jesus, then Dave. And we're currently on Baby Step #2, paying off all of our consumer debt (everything but the house). The hub has been unemployed for about 10 months now - which of course has turned our debt busting shovel into a flimsy plastic spork. So we're really just in survival mode right now until the hub is able to find full-time work. We have been really blessed with some great part-time opportunities that have helped along the way. I didn't think we'd make it past 2009 on my income alone. And here we are, knocking on the door of August 2010.
I can very much relate to Jenn's anxiety. Our situation isn't the same, but you know we girls tend to *freak OUT* when it comes to money (or the lack of really). It's a security issue for us, while it's a pride issue for the guys. So it's totally natural. But how do I keep from letting that anxiety and fear overtake me? I shared with Jenn what have been three personal mainstays in my life over the last couple of years that have helped me maintain peace in financially stressful times...
1. Tithing. Back in October 2008, when we ran our very first (EVER) monthly budget together, we decided then and there to start tithing (giving 10% off the top of our income to our local church). The hub and I have always loved to give when able, but we were never intentional about it before. We don't tithe because it's some item on a checklist of "things Christians do." We don't do it because God needs the money (ha!). It's simply about trust, and that's it. "God, we've obviously been idiots here, so we're going to do it your way from now on and trust YOU and not ourselves." We've been doing this for almost two years and the hub and I agree that is the single best decision we've ever made together. It has truly changed our lives. It looks ridiculous on paper, but that 10% comes right off the top - no matter what. No. Matter. What. We've never faltered on it, not even in months where we had no idea how we'd make it to the next. I can't even put into words the tremendous peace this has brought us. It is not an easy change to make. But nothing truly good comes without great sacrifice.
2. Worry not. Ha, easier said than done, right?! Oh how that worrisome fear can be so overpowering and crippling sometimes. And that's why I must continually drill this passage into my head...
"Do not worry then, saying, 'What will we eat?' or 'What will we drink?' or 'What will we wear for clothing?' For the Gentiles eagerly seek all these things; for your heavenly Father knows that you need all these things. But seek first His kingdom and His righteousness, and all these things will be added to you. So do not worry about tomorrow; for tomorrow will care for itself. Each day has enough trouble of its own. " Matthew 6:31-34
3. Pray. My daily prayer to God is that I seek his wisdom in my everyday decisions with money. That we take all of this one day at a time. That we look to him for strength instead of being handicapped by worry and fear. And to recognize how truly blessed we are that we've made it this far, for the amazing life lessons we've learned along the way, and for the work God has done in our hearts. When you feel overcome with fear, the best thing you can do is get down on your knees.
So there you have it. And yeah I know it's completely engrossed with God stuff. But hey kids, true peace is only found with God so for me, there's no other answer really. I know lots of people out there are struggling financially for many reasons... Maybe it's an income crisis, like us, or perhaps you've got a big storm coming that's going to suck up all your savings, or maybe you've lost everything but the shirt on your back. Whatever it is, terrifying as it can be, there is always hope. You always hear about these people taking their lives over financial crises. Fear really can take your life. The trouble is, they had no hope. There is always hope. You have to succumb to the fact that you can't do it on your own. So get on your knees and ask your Father for some help.
I hope you all find true peace!
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