If you have not heard of Dave Ramsey: Check. Him. Out. For the last 13 weeks (OK a few less than that, I missed the first 3 classes) I have been attending Financial Peace University (FPU). We are absolutely thrilled with what has been happening in our financial lives right now. Have we been making oodles more money?...nope! We have finally decided to take charge of our finances instead of letting them take charge of us. No matter what amount of money you or your family takes in per month, every penny can always be spent. It takes true discipline and focus to be able to pay down debts and save for your future. I really believe that FPU gives you the knowledge, tools, intensity and so much more to be able to take charge of your finances.
Both hubby and I have listened to Dave Ramsey since the beginning of our marriage; thinking he had wonderful ideas, but never focusing enough to do anything with our own finances. Living paycheck to paycheck and more by putting things on credit every now and then, I must admit that we have kept our debts down, not getting nearly into as big of a mess as most people our age. These past weeks have gotten me back on track being the main conductor of our financial orchestra...OK maybe it's more like the one man band on Mary Poppins than an orchestra, but that is not the point. I must admit, when I began working at W.ells F.argo a few years ago I slowly stopped keeping a check register and just hopped online everyday at work to find out what was in the account. After quiting, I kept the same habit; jumping onto the computer daily to see how much was left. As some of you may know this is not a great practice for several reasons. There will be checks that are written that may be forgotten or not cashed immediately after being written allowing you to believe there is more money. Simply keeping a register up to date makes me sleep lots better at night.
"Be diligent to know the state of your flock, and attend to your herds." Proverbs 27:23
I have also become a strong advocate for budgeting. A budget is something that we always thought needed to be done, but never ventured any further than writing out what comes in and goes out. I never knew where to start and always wondered if we had X amount after our "necessities". . . ."Where did it all go?" Since week 3 or 4 of our classes we have written a zero balance budget at the start of every month. Every dollar has a name. A tool that helps in keeping that budget is the envelope system. (cash envelopes for individual spending, gas, clothes, food, etc) Spending cash makes you feel like your actually spending money, where as swiping a card barely registers and you tend to spend 12-18% more when using plastic. An amount for each category is determined and that's all the money placed in the envelope. So far, so good. We have gone over in a couple of areas and under in others. Budgeting usually takes around 3 months to perfect, so next month should be about right.
"May he give you the desires of your heart and make all your plans succeed." Psalm 20:4
If you sit down and figure out how much money you have leaving your accounts simply to pay back debt, that figure can sometimes be breath-taking. We live in a culture that says, you deserve it. Well I have figured out in taking FPU that if we can't afford it, we don't deserve it. If we can't afford
"Owe no one anything except to love one another, for he who loves another has fulfilled the law." Romans 13:8
I hope this in some way encourages you to take charge of the money that passes through your account. I know from experience, it's freeing!
"In the house of the wise are stores of choice food and oil, but a foolish man devours all he has." Proverbs 21:20
2 comments:
Thank you for this post. Such good reminders! (as I currently sit in front of my computer, shopping online!). I also believe that the Lord blesses those who make wise decisions. May the Lord richly bless your family!
Good for you guys, Kira. I read Dave Ramsey's book a couple of years ago and tackled our debt--one chunk at a time (I, too, am the budget keeper). Within two years, our 2nd mortgage was gone, the house paid off, and we paid cash for our used van (working our way up). We are saving more than we have for years (but we also have no kids in the house anymore). It is such an awesome feeling to end the pay period with money left over and all the bills paid! Keep up the good work!
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