I have to tell you that I absolutely hated budgeting before I tried these tricks. I did the same old things of writing down all my monthly bills and what things cost and it honestly made me depressed because I really felt that I couldn't change the amounts that we were spending. I thought that I was doing pretty good by being fairly thrifty and not buying super nice things all the time, but I always felt limited too. I felt I could never get my hair done or buy clothes for myself--just the kids and such, because it cost too much. When Chris went back to school he could only work 32-35 hours a weeks and that hurt! I decided to get a night job to pick up the lost hours while he did work and school. Still, we were barely coming out even, and actually 'in the hole' more months than I'd like to remember. I felt like it was a "no win" situation. In October of last year, Chris brought to my attention a book that taught a better way to budget, it's called the "Total Money Makeover" by Dave Ramsey. Well, we bought it for $10 and set out to try it. Can I tell you that in these past 6 months we haven't gone in debt one time! In fact we've been able to SAVE $400-$700 instead! It honestly still amazes me every month that we follow it. To tell you the truth, the first 2 months were rough and I wanted to quit, because it makes me have to "think" and "control" my splurging bad habits. But now, if I want to color my hair, I budget for it. If I want a new dress, I budget for it, and I get all of it and still save. I wanted to share this with you because it's helped us out so much, especially during these hard economic times. It's awesome because it costs no money, there's no software, and the only thing you change is the way you and your spouse communicate and you decide things ahead of time...and have in place in your budget money for "unexpected" things that come up. Here are some handouts that I made up for my Bishop. He was so interested in how it worked that hopefully we'll be able to help our family and neighbors by showing them. If you want to save money and you don't want to go out and get an extra job to do it then maybe this will help you. Take a look for yourself and let me know what you think. (Click to enlarge)
Most of us are on baby steps 1 & 2. Take them one at a time and do them as quickly as you can. It took us 6 months, but Chris and I just started on step 3 and it FEELS GREAT to say we have no debt but our house! And now our savings are building up--FINALLY!
Here are the monthly budget forms that I just print out the last week of every month to fill in. The stars (*) represent which items should be paid for in your "cash envelope", and I do all of them accept I use my debit card for gas & oil and repairs (we budget it in still, but don't get cash for it).
And these last 2 are my money saving tips that I typed up to keep on hand. If a part of it doesn't make sense to you, let me know, I'd be happy to explain what I've learned.
Don't put off saving money. My neighbor kept telling me that "eventually" she'd get around to filling this out. The truth is, she wished she would have started sooner, because saving money now is so much better than saving later in life, when it finally gets "convenient", but time runs out. I love this system because you really don't have to "give up" anything you like. You just make sure you have the money each month for it, while learning to control "needs" verses "wants"--especially for your hubby. If you don't have the money for it this month, then you wait for it next month...it's that simple. Good Luck! Don't give up.
3 comments:
Hey I saw you posted on Shandee's blog. I loved this post. I love everything about money, and I'm so proud of you for working to get out of debt and be on the plus side. It feels great, doesn't it? I know it's weird for me to say I'm proud of you, but I am haha..
I read "Automatic Millionaire" by David Bach. It's the same type of idea as your book, and I loved it. We paid off our student debt even though it was still at a 0% interest rate just because I hated having it hanging over my head any longer. Now we're saving for a home and retirement. Life is sweeter when you're not worried about how you're going to pay the bills.
Have you tried coupon shopping too like Shelece is doing? It's really like having another job... it takes time but saves a lot of money.
Wendy,
It was so good to hear from you. It has been way too long! I'm glad to hear that you and your family are doing good. Your boys are adorable!
I go through phases where I am a Dave Ramsey junkie....constantly listening to his shows and spouting "Ramsey-isms" all over. We got introduced to him about a year ago and started learning a lot. We attended his 13 week class "financial peace university" and it was great....we also have "total money makeover" as well. We have never had much debt but we really needed to learn this stuff. Now we never want to have another loan again. I can't say that we are "Gazelle Intense" anymore but we'll never go back to how we used to view/use money. Dave Ramsey and his program have certainly changed our lives. I would be happy to give you the 13 audio lessons from Financial Peace University if you haven't heard them. They are pretty entertaining and I really enjoy listening to them. They are great when I get into a phase when I start to compare us to other people or want to "keep up with the Joneses". The other things like term life insurance, wills, and mutual funds - learning all that stuff has been awesome. I like your tips!
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