Saturday, February 20, 2010

Road for debt freedom (part #1)

Ok so all I can say is this Dave Ramsey stuff must have hit a cord. When I got home last night I had more then a few comments in just my emails asking how did we get started? Well let me say this first if you come here often be sure to sign up and follow the blog to the left. This lets me know who is here and lets me keep track of you all. I know I got comments from 5 of you that aren't following. So lets get to it.............

For one thing I need to tell you .........Dave Ramsey did not invent ways of handling money. He will even tell you this on his POD CAST. But for some reason once you connect to this whole money thing it is amazing and I have heard more then once......"you feel like you got a 25% raise just by following the BABY STEPS!"

Truth be known, I am sure my hubby and I weren't getting along when we started......I usually tend to take the lead and do what I want if we had a fight or weren't on the same page. Thank goodness all that is over!!! So without further ado this is my beginning (our beginning):

It was in March of the year when we (I) decided we needed to do this. I was tired of living pay check to all know what I mean. We so have our excuses for living defeated with money......what a bunch of hogwash. It takes work and most of us don't want to make it happen. We are afraid we will have to do without! So don't be blaming it on a spouse or that you don't make enough money.........been there done that! So put your big girl panties on and follow along!!!

We started on April first (go figure). We were getting 2+K back for the year and a light bulb went off in my head. The first Baby step is Save $1000 (married couple) for an emergency fund. Well what a perfect time. Hubby was hesitant to say the least but let me have my way and I put $1000 back in an emergency fund. (which we have never touch and has grown tremendously since). We I went one step further which took a little more coaxing but Dave was alright with it or I wouldn't have done it......well maybe I would have who knows. I took yes another $1000 and landed it in the checking for a sorta "float". I use it to pay the bills at the beginning of the month and not have to worry about them the rest of the month. I have to tell you that this is not a Dave Ramsey baby step and he never mentioned it in his book "Total Money Makeover". I am not sure why we did it, maybe my brother suggested it but I can't begin to tell you what a peace this has brought to our banking and money issues. I never have to worry about this. I make sure at the end of the month that it is still put back when we clear the totals for the month. It is AMAZING!!!!!

We have since raised the "float" as well. We have been doing this way of money handling for about 3 years now. If you have not read the "Total Money Makeover" you can go to the Dave Ramsey web site and buy it there or head to your local library and check it out!! This will totally change your life.

From a selfish "lover of shopping" I will tell you this.....I was scared of the "B" word......yes the dreaded budget! But I was so pleasantly surprised at how freeing this was. I was actually able to buy more and buying things like groceries were now done quilt free. See one of the aspects of this way of doing it is you write down a "zero" based budget. Once you know how to do this you and hubby sit down and give every penny you have coming in a place on the budget, You both agree to this. This is called a budget committee do them every month at the beginning befor you spend a dime. sometimes this will NOT change. But this gives you both freedom and the rules are set. The budget becomes the BOSS. If it is not planned on there at first then you dont do it!! PERIOD!! You will see after a couple months of doing this you are going to love it. No more one person telling the other one "NO" for something. It is now the budgets job. If you both agreed to it then no one gets to whine when they don't get something they want and can't afford.

Like I said before , you have to follow the rules (baby steps) but no one does it exactly the same way. You have to find your families groove in this adventure. There have been some push and pulls around here but It is all worth it!!!!!

I know I have rambled and I usually do this when I am so excited about something. So just keep the comments and emails coming I promise to answer them as best I can. If I can't or don't know the answer I will direct you to the right place!!!!

If you want to read how some people did it click here "Success stories".
Goodluck and welcome to Financial Freedom!!!!!

Till Later~


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