I probably shouldn't even acknowledge it, but I am sorry I haven't been posting... at all! I am sure I have lost a ton of readers. Hopefully my female readers can sympathize somewhat. Starting a new job AND finding out you are having a baby is a BIG change. Anyhow. I am not promising anything but this is an article that has been simmering for a long time so here goes!
There are not many times that you can actually see into the future. However, sometimes with finances you can. So what can you do for motivation, after the month's bills are paid and you are cashless again trying to get your debt paid off? Pull out your old crystal ball. Or just some credit card statements and a calendar. I did this some months back and figured I could be nearly debt free in FIVE years. That sounds crappy but considering I haven't really been paying enough attention to my finances for the past ten years, it really isn't so bad.
I listed all of my debts, how much I owed, what I was paying monthly and for those debts that would end after a certain amount of time I wrote down that date. At first I tried to figure out the plan with a debt snowball, but I actually found that in paying off some of my smaller debts, my larger debts (ex. car) would be paid off around the same time anyway. That may not be the case now, because I won't be able to put as much money toward my debt with the added expense of daycare, but it gave me a light at the end of the tunnel.
Also, when I first did my snowball end date I had not figured my husband's debt into the equation. With his debt paid off and just some of mine we may actually be able to afford a new house!!! That would be awesome.
The point here though is that sometimes you need a little pick me up. If you have a lot of debt look at your smallest debt first. Paying as much as you can, find out how long it will be until it is paid off. Once you pay it off maybe you could even treat yourself to a special purchase with ONE month's worth of that money. After that, though, put it toward you next debt.
I think it is important to look forward to and celebrate these little accomplishments. Personally, I fall into a slump after months of paying on a bill only to see the amount go down slightly. By looking ahead you have something to look forward to. (Even if it is five years, or more, down the line!)
Showing posts with label dave ramsey. Show all posts
Showing posts with label dave ramsey. Show all posts
Monday, October 29, 2007
Sunday, August 26, 2007
What is a Crisis Plan?
A “crisis plan” is a misleading name. It is not something you would use if your car broke down. That is what your emergency fund is for. I guess it should be called a “crisis aversion plan”. If you know that an event is likely to happen in the near future you would want to put one of these plans into action.
What kind of “events”? Really anything you are not already prepared for. This might include a possible lay off at work, the imminent death of a loved one, or hmmm I don’t know, a surprise pregnancy.
Who needs one? If you already have 3-8 months of your salary saved up then you are in pretty good shape. However, many people are just beginning to repay debt and may have as little as $500-$1000. This is great for an emergency fund but when big things are about to happen it isn’t going to cut it.
How do you implement a plan? This depends on what you are going through. If there is a close estimate of how much money you will need then it is pretty simple. Take the amount of money you need and divide it by the approximate number of months you have to save it. This will give you a rough estimate of how much money you are going to need to save each month. If you can’t possibly save that much it is time to start selling things you don’t use, getting a second job, or cutting back on extra services you may subscribe to. If you have no clue how much money you will need start saving as much as possible. Sounds a little simplistic but you will need it in the long run.
What should be stopped? No more chunks of cash to those credit cards!! It may seem like the best idea is to pay off the cards as quickly as you can instead of saving. This is a bad idea because when the layoff/death/birth happens you will not have any money and will need to use credit to pay for it all. Another no no- any unnecessary spending. Any money that you can put toward savings should go to savings- nothing else. If you are about to have a serious financial situation on your hands… sorry, but you don’t need a manicure. One way I am helping myself do this is by thinking of every dollar spent on something else as something that could have gone to the baby. For example, I got a survey in my email today, I was really tired and didn’t want to do it, but it was paying $2 and I thought, “hey that could buy a couple bottles or a pacifier” and I took the survey. It can be tough but it helps.
What if it turns out that you don’t need the money? Simple! Use it to pay down your debt!!
I hope none of you ever needs one of these plans. I sure never thought I would, but if you do here ya go! If you have any other tips or hints to add please share with us!!
**Curious about why I have a crisis plan? Read the Big News here.
What kind of “events”? Really anything you are not already prepared for. This might include a possible lay off at work, the imminent death of a loved one, or hmmm I don’t know, a surprise pregnancy.
Who needs one? If you already have 3-8 months of your salary saved up then you are in pretty good shape. However, many people are just beginning to repay debt and may have as little as $500-$1000. This is great for an emergency fund but when big things are about to happen it isn’t going to cut it.
How do you implement a plan? This depends on what you are going through. If there is a close estimate of how much money you will need then it is pretty simple. Take the amount of money you need and divide it by the approximate number of months you have to save it. This will give you a rough estimate of how much money you are going to need to save each month. If you can’t possibly save that much it is time to start selling things you don’t use, getting a second job, or cutting back on extra services you may subscribe to. If you have no clue how much money you will need start saving as much as possible. Sounds a little simplistic but you will need it in the long run.
What should be stopped? No more chunks of cash to those credit cards!! It may seem like the best idea is to pay off the cards as quickly as you can instead of saving. This is a bad idea because when the layoff/death/birth happens you will not have any money and will need to use credit to pay for it all. Another no no- any unnecessary spending. Any money that you can put toward savings should go to savings- nothing else. If you are about to have a serious financial situation on your hands… sorry, but you don’t need a manicure. One way I am helping myself do this is by thinking of every dollar spent on something else as something that could have gone to the baby. For example, I got a survey in my email today, I was really tired and didn’t want to do it, but it was paying $2 and I thought, “hey that could buy a couple bottles or a pacifier” and I took the survey. It can be tough but it helps.
What if it turns out that you don’t need the money? Simple! Use it to pay down your debt!!
I hope none of you ever needs one of these plans. I sure never thought I would, but if you do here ya go! If you have any other tips or hints to add please share with us!!
**Curious about why I have a crisis plan? Read the Big News here.
Sunday, July 29, 2007
DUH JEN!!!
Wow, do you ever have those moments where you just go, DUH?? I had one yesterday. I was looking through the back of Dave Ramsey's TMM book and there were several budget categories with astricks beside them. I figured out that it meant for you to use the envelope system for those. If you are not familiar it is very simple. Get an envelope- write a category on the outside- each month you put money in. If you don't spend that money you leave it in and put in the same amount next month. For example, you don't get your oil changed every month, but if you put away $10 a month in an envelope you will have money for when you do get it changed.
The DUH moment came when I realized that one reason I go over budget is because I don't budget for these "seemingly" small costs, but they add up. DUH, I know. But, I really never put two and two together. I always thought all of that money should be going to my debt. No wonder I have to tap into my emer fund so often. DUH DUH DUH
But, as GI Joe would say, "Now you know, and knowing is half the battle!" Then he always said YO JOE... probably not as appropriate in this post.
The DUH moment came when I realized that one reason I go over budget is because I don't budget for these "seemingly" small costs, but they add up. DUH, I know. But, I really never put two and two together. I always thought all of that money should be going to my debt. No wonder I have to tap into my emer fund so often. DUH DUH DUH
But, as GI Joe would say, "Now you know, and knowing is half the battle!" Then he always said YO JOE... probably not as appropriate in this post.
Debt Snowball Intensifiers!!
Okay I don't even know if that really is a word, but you get what I mean. I am going to say it again CASH4BOOKS ROCKS!!!
I just put in a new order today and I am getting over $30 for 9 books. That works out to a little over 3 dollars per book. (some are actually worth 6 and one only .50) Tell me how much you charged for your books at your last garage sale? I usually charge 25 to 50 cents. Sometimes I try to get 3-5 bucks for textbooks. But I have NEVER sold thirty dollars worth!
So far my sales to Cash 4 Books have totaled almost exactly $100. The hardest thing about it is finding a box to ship the books in. Here it is step by step on how it works:
1. Gather up old books you don't want. (non-fiction) Hell, if you are trying to pay off your debt you might even gather up some you DO still want. (How bad do you want to be debt free?)
2. Go to the website here and enter the isbn for each book. Do it all at once then highlight the list and copy it just in case.
3. See which books they are or are not buying. If they are not buying one check back in ONE week. They update weekly. If you don't want 50 cents for your copy of Yoga for Dummies take it off your list and try again in a week. I did this with one book and it went from two bucks to five. (they can go down though)
4. Once your list is ready to go check out.
5. Print your packing list and FREE shipping label.
6. Find a box (hardest step I promise)
7. Pack them up (see website's tips) and send them off.
If you choose PayPal for your payment you get a 3percent bonus, but PayPal does take a percentage of the sale (I think 3percent, lol)
I don't miss the books I get rid of and if I do I can always go to the library and check them out- which is what I should have done in the first place.
I just put in a new order today and I am getting over $30 for 9 books. That works out to a little over 3 dollars per book. (some are actually worth 6 and one only .50) Tell me how much you charged for your books at your last garage sale? I usually charge 25 to 50 cents. Sometimes I try to get 3-5 bucks for textbooks. But I have NEVER sold thirty dollars worth!
So far my sales to Cash 4 Books have totaled almost exactly $100. The hardest thing about it is finding a box to ship the books in. Here it is step by step on how it works:
1. Gather up old books you don't want. (non-fiction) Hell, if you are trying to pay off your debt you might even gather up some you DO still want. (How bad do you want to be debt free?)
2. Go to the website here and enter the isbn for each book. Do it all at once then highlight the list and copy it just in case.
3. See which books they are or are not buying. If they are not buying one check back in ONE week. They update weekly. If you don't want 50 cents for your copy of Yoga for Dummies take it off your list and try again in a week. I did this with one book and it went from two bucks to five. (they can go down though)
4. Once your list is ready to go check out.
5. Print your packing list and FREE shipping label.
6. Find a box (hardest step I promise)
7. Pack them up (see website's tips) and send them off.
If you choose PayPal for your payment you get a 3percent bonus, but PayPal does take a percentage of the sale (I think 3percent, lol)
I don't miss the books I get rid of and if I do I can always go to the library and check them out- which is what I should have done in the first place.
Sunday, July 22, 2007
I Finally Did IT!
I cut up my last "emergency" credit card. After reading page 121 in Dave Ramsey's Total Money Makeover book, I stopped, grabbed my "emergency" card that I almost used yesterday, that has $4000 of debt on it, and I chopped it to bits. I had been reading the book, but something about that section finally spoke to me. I'm done. I have decided to "Live like no one else now so later I can live like no one else" Much thanks to JD at Get Rich Slowly for pointing out what an excellent book this is. Instead of running out and buying it I PATIENTLY waited for the library to get it back in so I could check it out! You know what is funny? I kept that stupid card around thinking it was giving me a sense of security but now I actually feel more secure. Now I can really say NO when my husband wants to buy something we don't NEED, or when a friend asks me to go out and I think... well I'll just put it on my card. I do have ONE thing to say if you are considering doing this... I do have a small emergency fund saved up right now so I have a true "emergency" fund I can use instead of having to charge it.
Wow, I'm really done. Finally done with those stupid cards.
Wow, I'm really done. Finally done with those stupid cards.
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