For years now Callean and I had always felt financially trapped. A lot of it we have brought it on ourselves and we were looking for a way out. In real life there is no easy way to fix stupid. I started looking around the internet for help on how to get out of debt. I ran across a guy named Dave Ramsey. I started reading his website and started thinking that this could work if we worked hard and stayed motivated.
I found out that Dave had a podcast so I found his channel on iHeart Radio. When I turned it on the first words out of his mouth was "Hey you with the BMW. You're so worried about what you're driving. So worried about trying to impress people you don't even know or like. When you pull up next to someone at a stop light they could give a flip what you're driving." I was like, man he's talking to me. I thought to myself, "Justin you are so stupid. He went to commercial break and when he came back on he said "You make $##,### (exactly what I make a year) and you can't do anything. You're stuck. You could change the lady's life sitting next to you at church by giving her $100, but you can't because you're broke. You're broke because you've done stupid with zeros. " Wow. I was definitely meant to hear this. I felt so ashamed of myself. I immediately called Callean and said we need to try this.
We sat down that night and discussed what we need to do to do the Total Money Makeover. I bought his book and started reading. The book was a HUGE eye opener. Everything stupid we've ever done was discussed in the book. He discussed the way to be wealthy would be following the 7 baby steps.
Baby Step 1 - $1000 emergency fund - DONE!!!
Baby Step 2 - Debt Snowball - This is where we are and will be for a while. I will post specifics later so everyone can see our progress.
The key to the success of this process though is a zero based budget. If you still have more money going out than coming in then you're not making true progress. This has been the hardest part for us. We have done pretty good this month following the budget but its been tough.
This is how we started our journey to a total money makeover. I was meant to hear that on that podcast. I'm glad God spoke to me through Dave Ramsey and hopefully we can stay motivated to live like no one else so later on we can live and give like no one else....
Sunday, August 11, 2013
Saturday, August 10, 2013
The start of our journey and budget oh budget
Money, bills, income, and the dollar signs $$$$ most people do not like to talk about their money. It is tabu in todays society to talk about ones money. Well Justin and I have decided to start writing a blog about our journey so that maybe us coming out in the open will encourage others to start taking control of their lives and getting out of debt. Aren't you tired of money controlling your every decision and causing arguments among the married couples. We decided we were and are projected to be debt free in 4 years not including mortgages if we maintain our pace with no extra income.
How are we going to do this you might ask? Well if you don't already know we are following Dave Ramsey's Total Money Makeover. We are on baby step 2. See link for the list of all 7 baby steps and more information. (http://www.daveramsey.com/new/baby-steps/) We are in the second month but actually our first month of our true zero based budget. It has proved a little difficult to get into the groove but we are starting to get it. We have paid off 4 out of 21 bills. This includes credit cards, student loans, 2 car loans, and some store cards.
The hardest, most difficult thing to accomplish and continue to accomplish is following a spending budget for grocery shopping and not going out to eat. We have went from spending an average of $250-$300 a week to $150 a week and now I am cooking at home just about every night. This money is for food, diapers and anything else we need from Wal-Mart.
Now the first thing we did to help us actually leave Wal-Mart with $150 worth of groceries and not a ton more is MAKE A LIST. This begins with a weekly menu, this way you know what exactly you need to buy. The second thing that has helped us is a budget app on our iphone. I must admit this is a pain in the butt but it is what has truly made it possible to know what we are spending before getting to the check out. It allows you to enter every item, price plus tax into the app and it keeps a tally for you. Like I said it is a pain in the butt but worth it.
Thanks to that app we have had to put items back that we could wait on and not buy the unnecessary stuff. I almost cried the week I had to put my cookies and swiss rolls back. All I have to say is thank God for my thin mint stash in the freezer or I would have went nuts that week. And I am not afraid to say we have had Ramen soup on several occasions for dinner. Lucky for me the kids and Justin love it. Our other low cost go to meal is Tuna sandwiches and mac and cheese. Another kid favorite.
Finally tonight however, when we were doing our shopping we had all needs and even a few wants and were ready to head to check out and still had $6 left in our weekly budget. Oh you should have seen our faces, SUCCESS, finally felt like we were getting this spending and buying under control and it is going to be possible to survive. Now what we should have done is checked out and banked that $6 towards our credit cards. Well that was not the case lol. I offered to get Justin some chocolate candy he had looked at but my wonderful husband went and picked up my favorite Blue Bell ice cream "Dessert Trio." Since I have been cooking almost every night since we started this journey I allowed the special treat :) Now next week might not be as successful since we will need to buy diapers but it is getting easier. I forsee another Ramen soup dinner night next week ;)
Thanks for reading and we will continue to try and post how we are doing. Next projected payoff of a bill is set for December. Going to be a great Christmas present to change our 4 to a 5. Just remember to be a weirdo and Live like no one else now so later on you can live like no one else.
How are we going to do this you might ask? Well if you don't already know we are following Dave Ramsey's Total Money Makeover. We are on baby step 2. See link for the list of all 7 baby steps and more information. (http://www.daveramsey.com/new/baby-steps/) We are in the second month but actually our first month of our true zero based budget. It has proved a little difficult to get into the groove but we are starting to get it. We have paid off 4 out of 21 bills. This includes credit cards, student loans, 2 car loans, and some store cards.
The hardest, most difficult thing to accomplish and continue to accomplish is following a spending budget for grocery shopping and not going out to eat. We have went from spending an average of $250-$300 a week to $150 a week and now I am cooking at home just about every night. This money is for food, diapers and anything else we need from Wal-Mart.
Now the first thing we did to help us actually leave Wal-Mart with $150 worth of groceries and not a ton more is MAKE A LIST. This begins with a weekly menu, this way you know what exactly you need to buy. The second thing that has helped us is a budget app on our iphone. I must admit this is a pain in the butt but it is what has truly made it possible to know what we are spending before getting to the check out. It allows you to enter every item, price plus tax into the app and it keeps a tally for you. Like I said it is a pain in the butt but worth it.
Thanks to that app we have had to put items back that we could wait on and not buy the unnecessary stuff. I almost cried the week I had to put my cookies and swiss rolls back. All I have to say is thank God for my thin mint stash in the freezer or I would have went nuts that week. And I am not afraid to say we have had Ramen soup on several occasions for dinner. Lucky for me the kids and Justin love it. Our other low cost go to meal is Tuna sandwiches and mac and cheese. Another kid favorite.
Finally tonight however, when we were doing our shopping we had all needs and even a few wants and were ready to head to check out and still had $6 left in our weekly budget. Oh you should have seen our faces, SUCCESS, finally felt like we were getting this spending and buying under control and it is going to be possible to survive. Now what we should have done is checked out and banked that $6 towards our credit cards. Well that was not the case lol. I offered to get Justin some chocolate candy he had looked at but my wonderful husband went and picked up my favorite Blue Bell ice cream "Dessert Trio." Since I have been cooking almost every night since we started this journey I allowed the special treat :) Now next week might not be as successful since we will need to buy diapers but it is getting easier. I forsee another Ramen soup dinner night next week ;)
Thanks for reading and we will continue to try and post how we are doing. Next projected payoff of a bill is set for December. Going to be a great Christmas present to change our 4 to a 5. Just remember to be a weirdo and Live like no one else now so later on you can live like no one else.
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