Since we started tracking our progress, we've paid off $17,463.92. We could have been finished by now but we have enjoyed life a little. We also had a wedding and a baby is always expensive! I do have a bit of a scrapbook obsession but he counters that with mountable flashlights and lasers. I suppose we aren't very good gazelles but we are committed to staying out of debt.
Week two of FPU Online. This comes at a good time because I may be living off the Baby Emergency Fund for the next week. Hopefully, Ronnie will be able to deposit his pay in Vegas and I won't have to worry about it at all. I'm not holding my breath though. At least we have it so I'm not panicked.
The problem with an hourly job is that things can vary drastically from week to week. One week he has so much work, we don't see him at all. The next week he could be home every evening and on the weekend. I learned the hard way about preparing for weeks when he has no work. This doesn't happen often but I plan for it one week a month in case it does happen.
With his hours at one job varying so much, I had to create both a monthly plan and a weekly budget. It sounds like a lot of work but think about it. You know you are going to pay your cable bill every month around the 3rd. Your electric bill is always due on the 28th or 29th. I promise it's not difficult and it's amazing what you can do when your finances aren't such a big secret to you and your spouse.
Hourly jobs don't have to be budget killers. The key is to know how to adjust your budget and to actually do it!
I'm writing instructions on the steps to create my version of a simple budget. I will post those soon. Go round up your current bills for the month.
Lesson 2 Journal
The last major financial decision we made was a little over a month ago. On Veteran's Day we purchased a new washer and dryer since our washer flooded the kitchen. The dryer was giving up on us too. We were lucky because the Veteran's Day sale turned out to be one of the best deals we have seen. It came right when we had a little bit of money too. Ronnie won a little bit in Vegas a couple days before so it kept us from hitting up the emergency fund. We were also able to get the set we wanted since we had the extra money. We have saved so much time and energy already that we both agree it was well worth the investment. We would have loved to have used the money elsewhere but it was such a nice feeling to walk in and pay cash.
If we had $10,000 sitting in the bank just for emergencies our life would definitely be different. Even with the baby emergency fund, it can be stressful to worry what next week will bring. Two rough weeks can really tear through a $1000 baby fund. I cannot wait until the point where we are comfortable with our finances and in a position to help others that truly need it.
I think the idea of never borrowing money again is a little extreme. It was tough to get to the point where we didn't need the credit cards. BUT, we have learned the hard way that nothing good comes of them. You can argue this point but you haven't done everything correctly and still been screwed by the credit card companies. I prefer to control my own finances. I don't need a credit card company to tell me whether I'm worthy to pay them to let me borrow a few bucks. I'd rather save for my purchase and not have buyer's remorse at the end of the day.
Monday, December 6, 2010
Wednesday, December 1, 2010
Our Journey Towards Financial Peace
Today I started Financial Peace University Online. I'm cruising through lesson one since my husband and I have been on Dave Ramsey's plan for the last three years.
Actually, I have been on his plan for three years. I LOVE talk radio and the radio show really hit home with me. My husband finally came around two years ago. No, "Dave" did not become a four-letter word in our household! I just decided to start working through the steps on my own. When fuel became uber-expensive I finally declared that I had to get a second job. Finances were just too tight with the baby and everything else. He wasn't thrilled about being home alone with the kids but he knew we didn't have a choice. I never even mentioned that Dave Ramsey was the one who put the idea in my head!
As I said, I love talk radio but the hubby couldn't stand it. He always complained about the AM station being on when he moved the car. One day, he walked in the house and stated "you know that guy on the radio makes a lot of sense". He started listening and a few weeks later he asked me to buy Dave Ramsey's books. I bought them on special immediately! He read Financial Peace Revisited and The Total Money Makeover in less than a week! When he finished, his exact words were "We have to do this". I was thrilled that he came to it on his own! I believe I've heard Dave say "Those forced against their will are of the same opinion still". That quote kept playing in my head over and over!
Fast forward to today. We are two-thirds of the way through paying off all debt. It's been a little slower than we had hoped but we are making progress. We both work two jobs and are committed to this process. Unfortunately, this year has been crazy with some medical expenses and a few other setbacks (darn you Murphy!) but we are paying cash for everything.
We are currently in the process of looking for a church that follows the debt-free principles. I would love to complete FPU and help others through the process.
The first FPU assignment is journaling. There are a few questions they want answered. Here's what I have to say.
We have been hoping to enroll in Financial Peace University for a while but it's been tough with the crazy work hours. There was a special on Veteran's Day where Ronnie could sign up for FPU Online for a really good price so we went for it. I hope FPU will help reinforce why we are going through this process. It's very tempting to want a new car or new house but we both know that it's not a blessing if you are struggling.
I hope that my children will grow up understanding that debt is not a blessing. I want to be able to teach them to Give but giving can't happen when you can't afford your own necessities. I want them to understand that material things are not how you show affection. I plan for both kids to understand basic personal finance by the time they are old enough to handle their own.
Actually, I have been on his plan for three years. I LOVE talk radio and the radio show really hit home with me. My husband finally came around two years ago. No, "Dave" did not become a four-letter word in our household! I just decided to start working through the steps on my own. When fuel became uber-expensive I finally declared that I had to get a second job. Finances were just too tight with the baby and everything else. He wasn't thrilled about being home alone with the kids but he knew we didn't have a choice. I never even mentioned that Dave Ramsey was the one who put the idea in my head!
As I said, I love talk radio but the hubby couldn't stand it. He always complained about the AM station being on when he moved the car. One day, he walked in the house and stated "you know that guy on the radio makes a lot of sense". He started listening and a few weeks later he asked me to buy Dave Ramsey's books. I bought them on special immediately! He read Financial Peace Revisited and The Total Money Makeover in less than a week! When he finished, his exact words were "We have to do this". I was thrilled that he came to it on his own! I believe I've heard Dave say "Those forced against their will are of the same opinion still". That quote kept playing in my head over and over!
Fast forward to today. We are two-thirds of the way through paying off all debt. It's been a little slower than we had hoped but we are making progress. We both work two jobs and are committed to this process. Unfortunately, this year has been crazy with some medical expenses and a few other setbacks (darn you Murphy!) but we are paying cash for everything.
We are currently in the process of looking for a church that follows the debt-free principles. I would love to complete FPU and help others through the process.
The first FPU assignment is journaling. There are a few questions they want answered. Here's what I have to say.
We have been hoping to enroll in Financial Peace University for a while but it's been tough with the crazy work hours. There was a special on Veteran's Day where Ronnie could sign up for FPU Online for a really good price so we went for it. I hope FPU will help reinforce why we are going through this process. It's very tempting to want a new car or new house but we both know that it's not a blessing if you are struggling.
I hope that my children will grow up understanding that debt is not a blessing. I want to be able to teach them to Give but giving can't happen when you can't afford your own necessities. I want them to understand that material things are not how you show affection. I plan for both kids to understand basic personal finance by the time they are old enough to handle their own.
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