Being on a budget can suck. Not having money for something that you want, not being able to pick up that movie you've been wanting to watch for months, the dusty wardrobe. Yeah, sometimes it is no fun at all. But, I'm trying to be optimistic. And I've learned that a smart person on a budget can completely KICK BUTT!!!
I've learned a lot in the last couple of months. Specifically: ALWAYS LOOK FOR A BETTER DEAL. So, I always check and compare prices online before I go out.
I also scan all my coupons and check to see if something I want has a coupon available or a rebate.
For example: last weekend, I saved over $30.00 in coupons and rebates!! It was great. Most of my savings was at Walgreens, which I am starting to get the hang of, the next good savings was Target (I used coupons on items which also provided me with a $5.00 gift card), and the rest was on groceries. I couldn't believe it after I got home and did the math. And DH - he just sat there and stared at the receipts for like ten minutes.
I used to think that couponing was too time consuming, hard, and a waste of money. But guess what?!?!?! I was completely wrong. Being on a budget has all of a sudden opened up a lot of time for me to search, cut, compare and print. You can find coupons in your paper, in other people's papers, in coupon bins and through trains (groups that forward coupons), and even online. They are everywhere. You can even get them mailed to you directly from the manufacturer.
This evening I was looking for a specific coupon and decided to Google the item...and I found this website: http://www.powerofresolve.com/
It's pretty neat. I registered for the connecting website (http://www.homesolutionsnews.com/) and was able to print out coupons for $2.00 off any Veet product, $1.00 off 12 oz or larger of Lysol spray, $0.75 off jet dry dishwasher cleaner/rinse agent and a $4.00 off any Air Wick Freshmatic Mini Automatic Spray Starter Kit.
Last night, I was looking for some toiletries for DD (she's going away for the first time to her Nana's!!) and I found this: http://www.listerinekids.com/smart-rinse.jsp It's a link to a $1.00 off the Listerine Smart Rinse. Yay!!!
DH thinks I'm totally losing my mind because I get excited when I find coupons for something I like. Really, I think he should just hush...it's absolutely ridiculous that I do get excited about this stuff, but he should thank his lucky stars that I'm like this and not out running the credit cards into the ground.
Ahh...a few dollars saved, a few extra dollars for my debt snowball. It's a nice feeling knowing that I saved money. I hope you enjoy the feeling, too.
Have fun couponing!!
Friday, June 27, 2008
Gift Cards
Since I've been working with the Total Money Makeover and trying to abide by Dave, I no longer carry any credit cards. I actually feel a little sad about this, because before I used to have a HUGE card organizer that held all my credit cards. I always thought I was impressing others with my huge collection. It took a horribly long time to realize I was just ruining my life with those little "money suckers". So now I'm addicted to gift cards. I try to "earn" them as often as I can.
Like Sunday, Target had in the circular that if you bought two specific paper items, you could get a gift card for $5.00. So I went and bought one of each of the advertised paper items, used a $0.35 coupon for one and a $0.75 coupon for the other and I STILL got my gift card. And considering that every other store was advertising similar paper products at the same price (with no gift card) I figure I got a GREAT deal. And seriously, a Target gift card ALWAYS comes in handy.
And just a side note: Walgreens does this rebate program, which I will explain more about later, that gives you your rebate back by gift cards or check. But, if you request the gift card, they automatically add an additional 10% of your rebate onto your card. Cool, huh?
I also earn gift cards through a website called MyPoints. It's pretty neat because they send you an e-mail or two just about every day. Almost every e-mail is worth 5 points. Plus, their surveys they send are worth at least 10 points and if you a qualify and finish them, it's 50 points. (These are actual surveys, they only want your opinion.) You can also earn points by shopping online. Just browse through their links and click on through. It depends on each store how many points you earn per dollar, but the least amount you can earn is 2 points per dollar, some have deals where you earn 10 points per dollar. And the stores aren't some crazy place you never heard of; nope. Gap, Joanne's, Target, Payless, eBay, some good places. You can also earn points by playing games, doing searches, and printing and using their coupons. It's really great. I almost always have enough points every month to cash in for at least a Starbucks gift card. The places you can redeem your points for are great, too. I've gotten gift cards to Circuit City, Target, Walgreens, Starbucks, Subway, Barnes & Noble and Gap. They also offer gift cards to restaurants and charities, it all depends on you.
Now that you have all of these cards, you need to check out one more place every gift card holder should have: leveragecard.com. On this website, after joining for free, you register your gift cards. All you need is the card number and it usually does the rest, so you don't have to scratch off the little PIN ID or anything like that. I did notice, however, with my Victoria Secret card, that I had to type in all the info, including the balance. Apparently the site is still new and they are trying to get more merchandisers to allow leverage access to gift cards. What I like about leverage is that they give you interest for the cards that they can verify. I haven't even been with them a month and I've already earned $0.04 cents for the few cards I have. You can also buy more gift cards and even trade your cards using this site.
Check out the sites. I by no means promise miracles by joining up with each site, I personally enjoy them. I love going somewhere and using a gift card that I earned. I love the fact that just by doing what I would normally do, someone sends me little plastic cards with money on them...which I can spend however I want. No budget attached.
Like Sunday, Target had in the circular that if you bought two specific paper items, you could get a gift card for $5.00. So I went and bought one of each of the advertised paper items, used a $0.35 coupon for one and a $0.75 coupon for the other and I STILL got my gift card. And considering that every other store was advertising similar paper products at the same price (with no gift card) I figure I got a GREAT deal. And seriously, a Target gift card ALWAYS comes in handy.
And just a side note: Walgreens does this rebate program, which I will explain more about later, that gives you your rebate back by gift cards or check. But, if you request the gift card, they automatically add an additional 10% of your rebate onto your card. Cool, huh?
I also earn gift cards through a website called MyPoints. It's pretty neat because they send you an e-mail or two just about every day. Almost every e-mail is worth 5 points. Plus, their surveys they send are worth at least 10 points and if you a qualify and finish them, it's 50 points. (These are actual surveys, they only want your opinion.) You can also earn points by shopping online. Just browse through their links and click on through. It depends on each store how many points you earn per dollar, but the least amount you can earn is 2 points per dollar, some have deals where you earn 10 points per dollar. And the stores aren't some crazy place you never heard of; nope. Gap, Joanne's, Target, Payless, eBay, some good places. You can also earn points by playing games, doing searches, and printing and using their coupons. It's really great. I almost always have enough points every month to cash in for at least a Starbucks gift card. The places you can redeem your points for are great, too. I've gotten gift cards to Circuit City, Target, Walgreens, Starbucks, Subway, Barnes & Noble and Gap. They also offer gift cards to restaurants and charities, it all depends on you.
Now that you have all of these cards, you need to check out one more place every gift card holder should have: leveragecard.com. On this website, after joining for free, you register your gift cards. All you need is the card number and it usually does the rest, so you don't have to scratch off the little PIN ID or anything like that. I did notice, however, with my Victoria Secret card, that I had to type in all the info, including the balance. Apparently the site is still new and they are trying to get more merchandisers to allow leverage access to gift cards. What I like about leverage is that they give you interest for the cards that they can verify. I haven't even been with them a month and I've already earned $0.04 cents for the few cards I have. You can also buy more gift cards and even trade your cards using this site.
Check out the sites. I by no means promise miracles by joining up with each site, I personally enjoy them. I love going somewhere and using a gift card that I earned. I love the fact that just by doing what I would normally do, someone sends me little plastic cards with money on them...which I can spend however I want. No budget attached.
Tuesday, June 24, 2008
We Almost Made It
Okay, so our Two Week Grocery Experiment almost worked. Almost. It was Thursday when we had to buy more milk. Only because DH kept giving DS full cups of milk before bed, not understanding the concept that DS only drinks half a cup. So by morning, there always was a half cup of curdled milk left over. (*GROSS*) And DD did not help. She poured a full bowl of milk into her cereal almost every day, she doesn't even like milk. So, it almost worked.
I tried again on Sunday. Went through the pantry and the coupons, spent $130.00 at Costco, mostly on meat and a few things for DD's lunch since she is going to the art program and then daycare, totally missing the lunch hour (and free lunch). But, DH, who is so resistant to the couponing and budgeting, bought groceries on Thursday. And he filled the gas tank. Which was nice. So, I guess it doesn't really count. Will have to see how it goes. But, we are already done with 3/4 of one loaf of bread, which he insisted buying at Albertson's. And it's barely Tuesday.
Obviously I have some bugs to work out. I have to figure out how to get this to work for my family. I know I will have to buy at least another gallon of milk, possibly even two. And the Costco bread lasts longer, but three loaves would be great rather than just two. And fruit, fruit and veggies are a little bit harder to work with, considering they go bad quickly. My DM did send us those Green Bags, which do seem to work and make our stuff last way longer than before. But still. I don't know if the stuff will last two weeks. A little apprehensive to try.
Ah, well, it can't hurt to try again. That's why it's an experiment, right?
I tried again on Sunday. Went through the pantry and the coupons, spent $130.00 at Costco, mostly on meat and a few things for DD's lunch since she is going to the art program and then daycare, totally missing the lunch hour (and free lunch). But, DH, who is so resistant to the couponing and budgeting, bought groceries on Thursday. And he filled the gas tank. Which was nice. So, I guess it doesn't really count. Will have to see how it goes. But, we are already done with 3/4 of one loaf of bread, which he insisted buying at Albertson's. And it's barely Tuesday.
Obviously I have some bugs to work out. I have to figure out how to get this to work for my family. I know I will have to buy at least another gallon of milk, possibly even two. And the Costco bread lasts longer, but three loaves would be great rather than just two. And fruit, fruit and veggies are a little bit harder to work with, considering they go bad quickly. My DM did send us those Green Bags, which do seem to work and make our stuff last way longer than before. But still. I don't know if the stuff will last two weeks. A little apprehensive to try.
Ah, well, it can't hurt to try again. That's why it's an experiment, right?
Sunday, June 15, 2008
The Two-Week Grocery Experiment.
Okay. So you see that little link to the side labeled Money Saving Mom? That is a great site that I've been searching for a lot of ideas on how to save money. I've been following the tips posted there, and I am actually surprised about the outcomes that are produced.
Anyway. The recent post was about how the author did on her experiment: Buying groceries only once during a two-week period. She was hoping to make her dollar stretch, to save some time not having to go through her menu planning and grocery shopping strategies every week. I think it is a great idea, and I have just started my adventures into the money saving world.
So, last week I took some of the tips offered on the website, I made menu plans for a whole week. We are pretty boring, I discovered. But, it's not too hard with two kids and a picky DH. Everyone else is SUPER PICKY. Just not me.
I had my DD help me. We made a chart of every day, with categories for Breakfast, Lunch and Dinner, and even made special categories for Snack and Dessert. Then we had to plan what we will eat.
I tried to plan around what we already have in our pantry. Which, sadly, was not a lot. But we got it done. Then, we went through our coupons to see if anything in our menus were in there. Not much. Then, we made our grocery list. I gathered up the kids and finally headed out the door, sometime after 2:00.
We did our shopping, somehow managing to stay under $150, most of the items were purchased at Costco, a few things were purchased at Albertsons.
That was last Sunday. Here it has already been a week and I have yet to go to the grocery store. I did go to Walgreens on Saturday morning to purchase some drinks for our trip to the zoo. I don't know if that really counts, but I'm not going to count it just because it's not really groceries, more just last minute Dollar Stealers. We still have some meat left, and I think we are on the last gallon of milk. The milk may be a deal breaker for us. DS drinks at least three glasses a day, I have a little in my cereal in the morning...I think that's about it. I will try to sneak lemonade into DS' cup afterschool, hopefully that will keep him satisfied. We will see. But, I am interested in seeing how this works out. I am eager to try out my Walgreens deals so I may make some Personal Rules on groceries...we will see.
Like I said...I'm really new to this whole thing. I'm learning new things every week and I can't wait to put them all into action. Like the Walgreens Rebates...I even have some coupons on items that are Rebate-able. So that will be cool. Whenever I get to it. Saturday. I hope.
So, I wonder if you would be willing to try out the experiment. If you do, let me know how it works for you!
Anyway. The recent post was about how the author did on her experiment: Buying groceries only once during a two-week period. She was hoping to make her dollar stretch, to save some time not having to go through her menu planning and grocery shopping strategies every week. I think it is a great idea, and I have just started my adventures into the money saving world.
So, last week I took some of the tips offered on the website, I made menu plans for a whole week. We are pretty boring, I discovered. But, it's not too hard with two kids and a picky DH. Everyone else is SUPER PICKY. Just not me.
I had my DD help me. We made a chart of every day, with categories for Breakfast, Lunch and Dinner, and even made special categories for Snack and Dessert. Then we had to plan what we will eat.
I tried to plan around what we already have in our pantry. Which, sadly, was not a lot. But we got it done. Then, we went through our coupons to see if anything in our menus were in there. Not much. Then, we made our grocery list. I gathered up the kids and finally headed out the door, sometime after 2:00.
We did our shopping, somehow managing to stay under $150, most of the items were purchased at Costco, a few things were purchased at Albertsons.
That was last Sunday. Here it has already been a week and I have yet to go to the grocery store. I did go to Walgreens on Saturday morning to purchase some drinks for our trip to the zoo. I don't know if that really counts, but I'm not going to count it just because it's not really groceries, more just last minute Dollar Stealers. We still have some meat left, and I think we are on the last gallon of milk. The milk may be a deal breaker for us. DS drinks at least three glasses a day, I have a little in my cereal in the morning...I think that's about it. I will try to sneak lemonade into DS' cup afterschool, hopefully that will keep him satisfied. We will see. But, I am interested in seeing how this works out. I am eager to try out my Walgreens deals so I may make some Personal Rules on groceries...we will see.
Like I said...I'm really new to this whole thing. I'm learning new things every week and I can't wait to put them all into action. Like the Walgreens Rebates...I even have some coupons on items that are Rebate-able. So that will be cool. Whenever I get to it. Saturday. I hope.
So, I wonder if you would be willing to try out the experiment. If you do, let me know how it works for you!
The Death and Resurrection of My Laptop.
I finally got my laptop back on Friday. After having it dead/gone for almost four weeks. Granted, I've been using DH's laptop but it just hasn't been the same. My links aren't there, my pictures, my music, my stuff. I am so glad to have it back, however, I now have to reload it with my life up to a month ago.
I use my laptop on a daily basis. I do my little surveys for extra cash, I print my pictures, I listen to music, I print my coupons, everything. So when it started acting funny, I got really nervous. I cleaned out the drive, cleared out the memory, you know, the standard stuff any basic computer user knows to do.
And then, on a Thursday evening, IT DIED!! Just like that, it wouldn't turn on and cooperate with me. So typical. Because I was supposed to post some of my stuff for sale on eBay. And two items that I was selling at the time were ending soon and I needed to print out the postage for them. Plus, (Freak Out Moment!!) I couldn't remember if the laptop was covered under warranty.
So on Friday I spent all of my free time on the phone. After trying a few different phone numbers, a lot of "For Help, please press __" (way too many in my opinion), I finally got to a human who advised that I had Full Coverage (in other words: In Case Kid Gets It) until 2011. YES!!! Finally, my excessive worrying has paid off. But, the warranty guy said I needed to back up my stuff before sending it off, they can't guarantee that they can save my data. FREAK OUT!! Once again, I scramble through the phone book, make a few more calls (mind you, I'm supposed to be WORKING) and find a local place that will back up my hard drive and diagnose my broken friend.
On my lunch hour, I drive like a maniac to the location and drop off my laptop. Tuesday they call and tell me $120.00 for 9 DVDs of information ("ma'am, you have a lot of pictures and music" - REALLY?!?!?!) and the only thing that they can find that's wrong is the MOTHERBOARD. I go pick up my laptop with DH, who feels the need to lecture me on the fact that I need to back up my data on a regular basis, I should probably buy one of those external hard drives. "I SHOULD PROBABLY PULL OVER AND LET YOU OUT" was all that was going through my head. We have been discussing purchasing an external hard drive for MONTHS. Since Christmas. I even sent him to Best Buy two months ago with the understanding that he would purchase the hard drive with a few dollars from my savings...instead he came back with a new game and the "necessary accessories" for the Wii. Obviously, we never purchased one.
The warranty place sent me a box to send off my laptop and I carefully laid my broken laptop inside. Sadly. The warranty guy said it would take ten business days to get it back. Ten business days. That's Monday through Friday only. Oh wait, one of those weekdays turned out to be a holiday. SAD FACE!!
Finally, this past Wednesday, I received a notice on the door that DHL had stopped by and would not leave the package without a signature. I promptly called the 888 number on the tag to discover that I had to call during "business hours". Thursday morning, while taking DD to art class, I called DHL again, advised the customer service person WHO OBVIOUSLY HAD BETTER THINGS TO DO of my work address and confirmed that my laptop would be delivered that same day. I waited all day, as patiently as possible. I even stayed late. But nothing. No laptop. I had to go home empty handed.
By the time I got home, there was a message from DHL Customer Service letting me know that they had attempted delivery, however, no suite number was given and they could not deliver. Funny, I remember telling them the floor number, however, CUSTOMER SERVICE LADY WITH BETTER THINGS TO DO apparently FORGOT to add that on my change of address request.
On Friday morning, again while traveling with DD to art class, I called DHL again and advised them of the floor number.
I had my laptop before noon.
So, here I am, Sunday morning. Nine DVDs in front of me, including the Sunday paper and my second (no, wait, third??) cup of coffee, loading my life back on to my friend. It is taking a little longer than it should, I keep running into pictures of the kids from when they were smaller...you know, the Mama Memories are coming out in a huge explosion rather than the typical trickle. The cute pictures. The one of DS when he was sitting in the bath tub with the bubble mohawk. The one of DD showing me that yes, she could put her foot in her mouth. The one where DH and I are laughing so hard our eyes are shut tight and you can probably see our tonsils.
Today will be for reflection and thanks. I will go and buy an external hard drive on Saturday. I have been putting aside money since this whole fiasco to do it. I am thankful that I have the means to do so. And I am thankful that my pictures are all safe. I will look at my children today, with dirt all over their clothes from helping Daddy in the yard, and remember that each moment with them is Precious. And I will have my camera, taking pictures to save to the new external hard drive. And of course, I am thankful to the little voice in my head that said to buy the Full Coverage Warranty. I have my friend back, good as new.
I use my laptop on a daily basis. I do my little surveys for extra cash, I print my pictures, I listen to music, I print my coupons, everything. So when it started acting funny, I got really nervous. I cleaned out the drive, cleared out the memory, you know, the standard stuff any basic computer user knows to do.
And then, on a Thursday evening, IT DIED!! Just like that, it wouldn't turn on and cooperate with me. So typical. Because I was supposed to post some of my stuff for sale on eBay. And two items that I was selling at the time were ending soon and I needed to print out the postage for them. Plus, (Freak Out Moment!!) I couldn't remember if the laptop was covered under warranty.
So on Friday I spent all of my free time on the phone. After trying a few different phone numbers, a lot of "For Help, please press __" (way too many in my opinion), I finally got to a human who advised that I had Full Coverage (in other words: In Case Kid Gets It) until 2011. YES!!! Finally, my excessive worrying has paid off. But, the warranty guy said I needed to back up my stuff before sending it off, they can't guarantee that they can save my data. FREAK OUT!! Once again, I scramble through the phone book, make a few more calls (mind you, I'm supposed to be WORKING) and find a local place that will back up my hard drive and diagnose my broken friend.
On my lunch hour, I drive like a maniac to the location and drop off my laptop. Tuesday they call and tell me $120.00 for 9 DVDs of information ("ma'am, you have a lot of pictures and music" - REALLY?!?!?!) and the only thing that they can find that's wrong is the MOTHERBOARD. I go pick up my laptop with DH, who feels the need to lecture me on the fact that I need to back up my data on a regular basis, I should probably buy one of those external hard drives. "I SHOULD PROBABLY PULL OVER AND LET YOU OUT" was all that was going through my head. We have been discussing purchasing an external hard drive for MONTHS. Since Christmas. I even sent him to Best Buy two months ago with the understanding that he would purchase the hard drive with a few dollars from my savings...instead he came back with a new game and the "necessary accessories" for the Wii. Obviously, we never purchased one.
The warranty place sent me a box to send off my laptop and I carefully laid my broken laptop inside. Sadly. The warranty guy said it would take ten business days to get it back. Ten business days. That's Monday through Friday only. Oh wait, one of those weekdays turned out to be a holiday. SAD FACE!!
Finally, this past Wednesday, I received a notice on the door that DHL had stopped by and would not leave the package without a signature. I promptly called the 888 number on the tag to discover that I had to call during "business hours". Thursday morning, while taking DD to art class, I called DHL again, advised the customer service person WHO OBVIOUSLY HAD BETTER THINGS TO DO of my work address and confirmed that my laptop would be delivered that same day. I waited all day, as patiently as possible. I even stayed late. But nothing. No laptop. I had to go home empty handed.
By the time I got home, there was a message from DHL Customer Service letting me know that they had attempted delivery, however, no suite number was given and they could not deliver. Funny, I remember telling them the floor number, however, CUSTOMER SERVICE LADY WITH BETTER THINGS TO DO apparently FORGOT to add that on my change of address request.
On Friday morning, again while traveling with DD to art class, I called DHL again and advised them of the floor number.
I had my laptop before noon.
So, here I am, Sunday morning. Nine DVDs in front of me, including the Sunday paper and my second (no, wait, third??) cup of coffee, loading my life back on to my friend. It is taking a little longer than it should, I keep running into pictures of the kids from when they were smaller...you know, the Mama Memories are coming out in a huge explosion rather than the typical trickle. The cute pictures. The one of DS when he was sitting in the bath tub with the bubble mohawk. The one of DD showing me that yes, she could put her foot in her mouth. The one where DH and I are laughing so hard our eyes are shut tight and you can probably see our tonsils.
Today will be for reflection and thanks. I will go and buy an external hard drive on Saturday. I have been putting aside money since this whole fiasco to do it. I am thankful that I have the means to do so. And I am thankful that my pictures are all safe. I will look at my children today, with dirt all over their clothes from helping Daddy in the yard, and remember that each moment with them is Precious. And I will have my camera, taking pictures to save to the new external hard drive. And of course, I am thankful to the little voice in my head that said to buy the Full Coverage Warranty. I have my friend back, good as new.
Saturday, May 31, 2008
Dave Ramsey (TMMO)
I used to have a really bad case of "stuffitis". Really bad. I used to go shopping at the mall, walking out with BAGS of clothes and accessories. I used to go shopping for whole wardrobes, with matching shoes...just about every 4 to 5 months. I used to get makeovers at Sephora, every 6 months, each time buying every brush, blush, eyeshadow, eye cream, foundation, primer, moisturizer, base coat, lash extender, remover, filler, what ever they put on me. I used to buy the IT purse with the matching wallet every three months. I used to eat lunches at restaurants every day, spending at least $14, minimum. Those "have-it-all" stores, I couldn't walk out of there without spending a minimum of 2 hours and $114.00, even if I went in to buy a bottle of laundry detergent.
But, back in March I had Jury Duty. I didn't get to go home by lunch so I asked Hubby to buy me a book. I had just found this great group of women on Cafemom, raving about some bald guy named Dave Ramsey. So, I did a reading through the threads and decided to buy his "most recommended" book : The Total Money Makeover (TMMO).
At the time, I wasn't thinking that much about my finances, other than that THEY SUCKED!! I've always been good about creating a budget, but never stuck with it. I mean, come on, that's what all my pretty credit cards were for, in my brand new *DESIGNER LABEL* wallet, that fit and matched so perfectly in my *DESIGNER LABEL* purse, that, yes, was the IT bag of the season.
I read through TMMO in two days. Re-read it again, with a highlighter and stickies, just to really drill it in. And then, I re-created my budget. Amazingly, I have managed to stick with it. In almost three short months, I have MIRACULOUSLY managed to get rid of about $4,000.00 in debt. Amazing, since I make $2700 a month. And, I'm still working on it.
"How did you do it?" you ask? Honestly, I'm not quite sure. I have managed to pull up from the depths of my being some unknown form of self-control which has hidden itself from me for over a decade. I don't go in to any store anymore "just to look". If I do go shopping, I make sure I have a list, get only the items on the list, and then I must RUN out of the store. Incredible feats are happening now that I've been introduced to Dave.
I have also sold a ton of stuff both on craigslist and eBay. Almost all of my *DESIGNER LABEL* purses are gone, including the one with the pretty matching checkbook wallet. Some of the kids' toys, workout DVDs, some clothes, CDs. Sold. And each time I sold something, I went straight to the bank, deposited the money, came home and opened up my bill pay and put it all towards my debt. Just like that. Didn't stop to surf my favorite sites, didn't even stop on my way back for McDonald's. Just kept my blinders on and moved.
Dave's advice is simple. Actually, most of it is stuff we all already know. But it's something most of us fail to acknowledge and practice. Dave gives a list of Baby Steps to take on and follow through with. You have to know them, understand them, and then do them, in order. And they are baby steps because no one gets anywhere quickly. Not when it's worthwhile. If you take on Dave's challenge, you are striving to change your family tree. No longer will debt haunt you, your family, or your children's family. Your goal is to become debt-free. Your new motto is "Live like no one else so you can LIVE LIKE NO ONE ELSE". Can you imagine? If you didn't owe those credit card companies, the car financer, the mortgage company...how much money would you have to enjoy your life???? Would you finally be able to sleep at night, not worrying how you were going to pay for _________? How different would your life be?
Think about it. Consider this my challenge to you. Get to know my new friend, Dave Ramsey. Listen to what he has to say. And try being weird. You might just like it.
But, back in March I had Jury Duty. I didn't get to go home by lunch so I asked Hubby to buy me a book. I had just found this great group of women on Cafemom, raving about some bald guy named Dave Ramsey. So, I did a reading through the threads and decided to buy his "most recommended" book : The Total Money Makeover (TMMO).
At the time, I wasn't thinking that much about my finances, other than that THEY SUCKED!! I've always been good about creating a budget, but never stuck with it. I mean, come on, that's what all my pretty credit cards were for, in my brand new *DESIGNER LABEL* wallet, that fit and matched so perfectly in my *DESIGNER LABEL* purse, that, yes, was the IT bag of the season.
I read through TMMO in two days. Re-read it again, with a highlighter and stickies, just to really drill it in. And then, I re-created my budget. Amazingly, I have managed to stick with it. In almost three short months, I have MIRACULOUSLY managed to get rid of about $4,000.00 in debt. Amazing, since I make $2700 a month. And, I'm still working on it.
"How did you do it?" you ask? Honestly, I'm not quite sure. I have managed to pull up from the depths of my being some unknown form of self-control which has hidden itself from me for over a decade. I don't go in to any store anymore "just to look". If I do go shopping, I make sure I have a list, get only the items on the list, and then I must RUN out of the store. Incredible feats are happening now that I've been introduced to Dave.
I have also sold a ton of stuff both on craigslist and eBay. Almost all of my *DESIGNER LABEL* purses are gone, including the one with the pretty matching checkbook wallet. Some of the kids' toys, workout DVDs, some clothes, CDs. Sold. And each time I sold something, I went straight to the bank, deposited the money, came home and opened up my bill pay and put it all towards my debt. Just like that. Didn't stop to surf my favorite sites, didn't even stop on my way back for McDonald's. Just kept my blinders on and moved.
Dave's advice is simple. Actually, most of it is stuff we all already know. But it's something most of us fail to acknowledge and practice. Dave gives a list of Baby Steps to take on and follow through with. You have to know them, understand them, and then do them, in order. And they are baby steps because no one gets anywhere quickly. Not when it's worthwhile. If you take on Dave's challenge, you are striving to change your family tree. No longer will debt haunt you, your family, or your children's family. Your goal is to become debt-free. Your new motto is "Live like no one else so you can LIVE LIKE NO ONE ELSE". Can you imagine? If you didn't owe those credit card companies, the car financer, the mortgage company...how much money would you have to enjoy your life???? Would you finally be able to sleep at night, not worrying how you were going to pay for _________? How different would your life be?
Think about it. Consider this my challenge to you. Get to know my new friend, Dave Ramsey. Listen to what he has to say. And try being weird. You might just like it.
THE BASICS
First, CASH IS KING!! Cash only from here on out, baby!! Yup, if you don't have the money for it, it's not in the budget, you aren't getting it. WAH!!!!!!
Next, figure out your income (yeah, you would be surprised how many people don't know the answer to this). Then, make a budget. List out all of your debts with their minimum required payments. Then your bills: utilities, daycare, mortgage, phones (cellular and landline), and cable. Then, your "life" expenses: toiletries, gas, groceries, clothes, co-pays and prescriptions. You may have more, you may have less.
Now, are you FREAKING OUT? I was.
If what you budgeted out is greater than what you are bringing in - you need to roll up your sleeves, tighten your boots, and get into that budget and rip it apart. You need to figure out where you can cut somethings down or how to bring more in. Personally, I would see where I could cut out. Groceries are a big one. I reviewed my grocery receipts for a month (I'm a paper hoarder) and figured out how to save a minimum of $50 off my weekly budget by buying only what I needed, getting generic products, and using coupons. Cell phones are next: check into getting a cheaper plan, or even a cheaper provider. I used to have *HIGH DOLLAR PROVIDER*. I did some number crunching and PAID TO CANCEL MY SERVICE. $200 out the window. BUT, I was paying about $100 a month for something that I am now paying a little under $50 for. And, I talk A LOT MORE. It was completely worth it. I'm sure you get the picture. As for bringing more in, I've been doing some GPT sites and selling, selling, selling.
THE BABY STEPS
BABY STEP ONE: Get an EMERGENCY FUND. Get $1,000.00 NOW and put it away...keep it liquid (totally accessible). Dave says to keep it in a box in your house, somewhere where you can get it quickly. Personally, I keep mine at the bank, specifically with ING DIRECT. They give you a great interest rate.
Sell whatever you can to get your EF. Pay minimum on everything until you have it. Now, this is your EMERGENCY FUND. Not for dinner or birthdays or just because you see something you think you need. But for life's emergencies that fly at you just when you think everything is grand; Murphies. Remember Murphy's Law: If Anything Can Go Wrong It Will. Like a broken windshield while you are driving down the coast. Or the AC going out. Things of that nature.
Sell whatever you can to get your EF. Pay minimum on everything until you have it. Now, this is your EMERGENCY FUND. Not for dinner or birthdays or just because you see something you think you need. But for life's emergencies that fly at you just when you think everything is grand; Murphies. Remember Murphy's Law: If Anything Can Go Wrong It Will. Like a broken windshield while you are driving down the coast. Or the AC going out. Things of that nature.
BABY STEP TWO: The DEBT SNOWBALL. Gather up all your bills, your checkbook and your bank statements. Figure out your debts smallest to largest (not including your house). Put all that you can towards the smallest debt to pay it off in the least amount of time possible while still making minimum payments on your other debts. Done? Nope. You have to apply all that money you were paying towards that debt towards the next; keep it going, the more you pay off, the larger your "snowball" becomes.
BABY STEP THREE: Complete Your Emergency Fund. Now, you should be debt free except for your home. Your goal now is to create a fully funded Emergency Fund consistent of three to six months worth of income. You can put this money in the bank; even a money market account that will allow you to get to it if you need it without being penalized.
BABY STEP FOUR: Invest 15%. Yup. Prepare for the Inevitable. You should start investing 15% of your GROSS INCOME (not what you bring home, but before taxes) in a retirement fund.
BABY STEP FIVE: College Fund. Got kids? Now you can start investing heavily into their college funds. And you know what? Did you pay for your college? Did you have a job while you went to school? Guess what? It's okay for your kid to do it, too!! Teach them now the value of hard work and an education. Don't let them waste your money getting into Popularity U.
BABY STEP SIX: Pay Off The House. You got the money, now do it. Can you imagine? Being COMPLETELY DEBT FREE?!?!?!?! No Way. Guess what?? You can do it! And you know what, you aren't getting the tax break you think you are getting.
BABY STEP SEVEN: Build and Give. Now, I don't know about you, but I believe in giving back. Some people, those who belong to an organized religous group, believe in tithing. Some don't. But I believe that if you have something, you should share. I believe in giving back. Help those who need a boost in helping themselves. And continue to build your wealth. Invest in real estate, mutual funds and other financial vehicles. And give back. It will make you feel better.
Best of Luck!!
Subscribe to:
Posts (Atom)