tag:blogger.com,1999:blog-7813932240086850582024-03-14T03:30:01.343-06:00Confessions of a Spend-a-holicOur journey to financial freedomAnonymoushttp://www.blogger.com/profile/12823278246581076614noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-781393224008685058.post-12757432558807116472014-03-03T13:51:00.001-07:002014-03-03T17:02:27.031-07:00Debt Free in...I told everyone who reads this blog - and I am surprised how many people there are - that I would update when we figured things out. Well... we haven't figured everything out but we are working on it.<br>
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1. We are not moving... housing market may be hot for people to sell houses but I am not sure about townhouses. Plus, if we did sell this place, would we be able to get into something comparable for less mortgage plus condo fees. I don't think so... at least not what we have researched.<br>
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2. <b>Van</b>... wow, we made a big boo boo but a necessary boo boo 14 months ago when we bought our van. For those of you who do not know our Sante Fe saga... let me sum it up to say it was a lemon. In less than 3 years we had the front struts done, the transmission changed, the engine blew - which threw ball bearings through the starter and one of the pistons... I was NOT taking my family into that thing again.<br>
Now this was a challenge for us as we still owed a bit after we traded it in for our van. We chose to add that cost to the price of our van which increased our payment. I also realized that we are still paying the Sante Fe off and have not started paying off the van... OY! Needless to say, we cannot trade it in yet. I am very OK with that as I was not ready to give up my van... vanity rules on that one... Sorry, I'm human.<br>
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3.The <b>TFSA</b>'s paperwork has been filled out and is being processed as we speak. Once that comes in, we pay off the MasterCard and put the rest on the Personal Loan and the debt snowball begins.<br>
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4. Our wonderful friends and bookkeepers, Michael and Tania Spears (<a href="http://www.spearsbookkeeping.ca/">www.spearsbookkeeping.ca</a>) have agreed to be our financial accountability partners and will loan us Dave Ramsey's <b>Financial Peace University</b>. Excited and scared on that one! <br>
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Some other things have changed... I have picked up a part-time job on the side as an executive assistant. It will be challenging to balance things but I will make it work.<br>
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More importantly, my hubby was offered a permanent full-time job with Canadian North Airlines as a technical writer starting March 24... yay for benefits and vacation and perks! :) He has also been picking up contracts on the side too so that is fantastic.<br>
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As of right now, we will be debt free by August 2017. When that changes, we will let you know!<br>
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As I am writing this, the hymn "It is Well with my Soul" by Selah is playing right now. This is one of my favorite hymns and the truth... It is well with my soul!<br>
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<br>Anonymoushttp://www.blogger.com/profile/12823278246581076614noreply@blogger.com0tag:blogger.com,1999:blog-781393224008685058.post-47652115772534618682014-02-09T09:54:00.001-07:002014-03-03T13:40:52.148-07:00Debt Free in 14 months?It has been an interesting 48 hours... I should back up a little more.<br />
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In January, I sent and email to Jess Mecham, the owner of You Need a Budget (YNAB). In his podcasts, he has spoken about having a passion for small business to use YNAB. So I inquired about more information from him about this to support my husband's small business (technical writing and editing - Borealis Communication Solutions). He forwarded the email to Mark Butler, their financial coach and blogger, to reach out to us to hear more about Steve's business. We met via Google Hangout and chatted about business finances.</div>
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I then said to Mark that it was too bad that he was not taking anymore clients for coaching, he said he was and said he had a few minutes now... WOW!!! We sent our YNAB budget in screenshots to Mark. He was trying to be kind about what he saw but I told to just tell us like it is. Basically, he said to us we are in a financial crisis in that we have more going out than coming in. I had a hard time wrapping my head around that as I thought we were managing just fine. Mark made some hard suggestions that Steve and I needed to talk about if we were serious about getting out of debt and into financial freedom.</div>
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1. We should stop contributing to the girl's TFSA's and cash them in to pay off our debt. That one hit our egos HARD! I have been so proud of the fact that we have not used any of the money that the Canadian government sends us for our children. We have been saving it since the day Hannah was born - 5 years - and built up $13K into them for their further education. What Mark pointed out is that the money in the TFSAs would pay off our MasterCard and get a chunk out of our personal loan.</div>
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2. We need to look at trading in our van for something we can pay cash for. This one we are still investigating. We paid a lot of money to get our van with every bell and whistile available. We are making a $630 a month car payment for this. We looked on the dealer website and saw a van that can meet our needs IF we can make it happen. If not, we will deal.</div>
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3. We need to look at getting out of our townhouse and find something that will not cost us an extra $260/month in condo fees. We have looked into that and we do not believe it is a possiblity. We have applied for school for Hannah in the area and with the housing market where it is, we will not be able to get the money out of the house that we need, as we would need to get our down payment out of the sale ofhte home.</div>
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4. He strongly suggested we look into taking Dave Ramsey's Financial Peace University (FPU). This is a course, as I have researched it, about handling money God's way. Thankfully, we have an amazing couple in our lives, Michael and Tania Spears of Spears Bookkeeping & Financial Consulting Inc, who have a passion for helping people like us get out of debt. They have also been through FPU and we hope will be our accountability partners and mentors through this process.</div>
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Another thing Mark suggested is that we create a "fake budget" in YNAB to see the possibility of what could be. We did that Friday night and it helped me to see that we are in fact putting out more money than we have coming in. I went one step further and created a spreadsheet in Google Drive to see what making these changes would do. What they would do is make us DEBT FREE, except our mortgage, in 14 months! That is overwhelming, exciting and terrifying to me.</div>
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I will blog as we move through this process. God and I have had to work through my ego issues and fears. I know we still have more to get through and with His help, we will get there.</div>
Anonymoushttp://www.blogger.com/profile/12823278246581076614noreply@blogger.com0tag:blogger.com,1999:blog-781393224008685058.post-19862823288232990182014-02-04T16:11:00.000-07:002014-02-04T16:12:30.842-07:00Just When I Thought...Just when I thought our $8,000 credit card could not be paid off this year, God provided an opportunity to do that. He has used it through a means I had no idea even existed. I have been trying to get a part-time - VERY part-time - job for awhile now to help get us on the further road to financial freedom. I have finally found it. I am working as an executive assistant to a friend of mine who is starting a project management company.<br />
Also, just when I thought we would be struggling to get through each month due to my husband's hours being cut back in his contract, God provides not only basically full-time hours but also a lucrative second contract on a part-time basis. What a great blessing.l<br />
All of that being said, what do I want to do? SPEND IT! I just said I wanted to use it to pay off our debt but the little voice is telling me to buy a bigger house - spend more money. Wow, will that ever stop?<br />
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I want to talk briefly about the category re-organization. It truly has only been a few weeks but I think it is going well for me. I like having all of the bills that we have to take care of between pay checks clearly separated. It is amazing how making little changes can make such a big difference. I can see all of the little boxes that I have to fill in between checks and make sure they are paid.<br />
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How do you organize your finances? Pen & paper? Spreadsheet? The seat of your pant? :)Anonymoushttp://www.blogger.com/profile/12823278246581076614noreply@blogger.com0tag:blogger.com,1999:blog-781393224008685058.post-78538504245318767842014-01-22T06:01:00.000-07:002014-01-22T06:01:12.932-07:00Emergency Fund vs Paying Off DebtI have thinking about this for quite awhile now. What is the better way to go?<br />
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I can "justify" both ways. An emergency fund is a great thing to have. If something goes wrong with your home or car, you have this as a back-up. Or, as is our situation, one partner's hours are cut at work, you have a back up until things settle down.<br />
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On the other hand, paying off debt is huge. It's not paying 19% monthly interest; it's not having that weight hanging over your head. It's having the freedom to use the credit card in case of emergencies and then pay it off.<br />
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What are your thoughts on this one?Anonymoushttp://www.blogger.com/profile/12823278246581076614noreply@blogger.com3tag:blogger.com,1999:blog-781393224008685058.post-74125577275827215142014-01-15T12:47:00.000-07:002014-01-15T12:47:59.653-07:00Time to ReorganizeI am an organization person - not that you can tell by my house. I love to rethink and reorganize things around me. The beginning of something like a season or year is when I love to do it the most.<br />
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That being said, I been thinking about reorganizing my YNAB categories to see if this will help me budget even more. My categories currently look like this:<br />
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I have been using YNAB for about a year and I really enjoy it. At the beginning of using it, this is similar to their preset categories. I have used it for the last 11 months and now I think it's time for a change. This is the proposed changes:<br />
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As you can see, I have broken the categories into Expenses on the 1-14 and 15-30 of the month. I think this is going to help me with tracking. I am curious to see, though, if the double sub-categories are going to work or not. That's one of the other great things about YNAB, you adjust as you go along - which happens to be Rule 3: Roll with the Punches.<br />
This category set up would be an ideal setting if you are paid on the 1st and 15th of every month - which my husband is. I am paid every 2 weeks so I will just add mine in as they come up.<br />
For those of you reading this who are not familiar with the YNAB principles, they are pretty simple: put in your paycheck every time you get paid then give every dollar a job - what does my money need to do before I get paid next (Rule 1).<br />
The 2nd rule is Save for a Rainy Day - which you can see in the above pictures. I will admit, we are not very good at this one yet. I am still wrapping my head around not looking at my bank webiste, seeing there is money in there and want to spend it - hence the title of the blog. I have really good intentions every month but fail - hey, it's a process, right?<br />
The 3rd rule, as I mentioned earlier, is Roll with the Punches. Nothing about YNAB is set in stone. You personalize and adjust as you need to. I have used other software and it is set up just the way it is. You can make minor changes but not like this. The other part of this rule is YOU DON'T HAVE TO BE PERFECT - another thing I am working on. I want to put everything in and have it work perfectly... yup, doesn't happen. There are adjustments made all the time.<br />
The 4th rule is Live on Last Month's Income. I think my hubby and I are starting to do that more than we think. We started Dave Ramsey's baby steps as well by saving $1000 emergency fund. We were actually able to double that in the last month which was good timing for us. We may need to truly use it as an emergency. If, Lord willing, we do not need to use it in an emergency, we are 1/4 of the way to living on last month's income. Now, we have it set aside in a different account. As I said earlier, I cannot see money sitting in our joint account and not want to spend it.<br />
I will keep you posted in week or two as to how the new categories are going.Anonymoushttp://www.blogger.com/profile/12823278246581076614noreply@blogger.com0tag:blogger.com,1999:blog-781393224008685058.post-3384992262292874192013-12-20T20:20:00.000-07:002013-12-20T20:20:46.573-07:00ThankfulnessWe have come to a point in our financial journey where we are back on track - for the most part. Our summer vacation, which we did not budget for, was our down fall. We had a lot of fun but used our credit card to finance it all. Then when we returned, we had a few set backs. We chose to use our credit card for gas and groceries until we could get back into the "black".<br />
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I know all of the die-hard Dave Ramsey fans are telling us that we should have cut them up long ago, and they are right - to point. Although we used our credit cards, they also helped us get to a point where we can live on cash again. Yes, credit card debt gets a lot of people in trouble but it also helps get people out. I think there needs to be discipline when it comes to anything.<br />
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The other thing we have done to get back on track is around food. We went "shopping" in our freezer one week and found an entire weeks worth of meals frozen. That really did not shock us but made us realize that keeping track of what we have in our home already is part of stewardship.<br />
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We have also started freezer cooking. This also helps with how busy we are with both working full-time. It is a large upfront cost but well worth it. We made 18 meals from <a href="http://www.whoneedsacape.com/">www.whoneedsacape.com</a> around Canadian Thanksgiving (mid October). Near the beginning of December, we were still finishing them up. We did not use them on Mondays (we have our Bible study group and bring something separate) or on the weekends. We have done a second batch with 40 meals. They have saved many nights. Prep the food in freezer bags, take them out the night before, throw it in the slow cooker in the morning and supper is done when you get home. It sure has saved us from eating out or unhealthy on many of those nights. Twice a year we also buy 1/4 beef from a farmer in Saskatchewan. I am proud to say we did budget for that.<br />
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It is now Christmas and we have used our credit cards for our shopping. It is now maxed out and we have made a plan to pay it off in the next year. Mark from YNAB posted a blog post a few weeks ago about setting a REALISTIC goal for the next year. We have done that and I believe we have a good plan going forward. Having goals is not something we are very good at but it is a promise we have made to each for the coming year.<br />
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We may also be facing a challenge. My husband is a contract technical writer and he was just informed that his current position, where he has been for a year, will be reducing his hours to two days a week in 2014. He has been applying but has not been offered a new contract. We have also planned, or started to plan, for that. It is something we should have planned for months ago.<br />
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This year, or almost full year, of using YNAB and taking a good look at our finances has been very eye-opening. We are very, very thankful for all we have talked about and learned. Here's to 2014 and more improvements in our financial journey.</div>
Anonymoushttp://www.blogger.com/profile/12823278246581076614noreply@blogger.com0tag:blogger.com,1999:blog-781393224008685058.post-45727394392124844452013-09-28T06:20:00.001-06:002013-09-28T06:39:21.383-06:00We're in the BLACK... for a couple of daysWow! It has been a challenging month! Finally "manning" up and looking at our budget and where we are financially has been difficult. <div><br></div><div>We have spent a lot of money this month on bank fees. Our bank charges $5/day for overdraft - and unfortunately, we have been in it a lot this month. It has taught us, though, how important it is to try and stay where we are.</div><div><br></div><div>How have we climbed out? As I said using our overdraft a bit, paying minimums on credit cards, buying minimal groceries, keeping up on our bills, and eating what food is already in the house. If you are struggling, I challenge you: look in your freezer and cupboards. What is already there? Do you have leftovers that you have stored away for a "rainy" day? This is the time to use them. If you are not making a list when you buy groceries... DO IT! That will save you from buying more than you need. Those are a couple of things that we did and it has definitely helped a lot.</div><div><br></div><div>We won't be completely out of the red for a few days but it is definitely looking brighter!</div>Anonymoushttp://www.blogger.com/profile/12823278246581076614noreply@blogger.com0tag:blogger.com,1999:blog-781393224008685058.post-39800916473565564412013-09-16T10:51:00.000-06:002013-09-16T11:06:42.801-06:00Impossible... Or Not!I was reading today on my friend Stephanie Warnock's blog - www.faithhasnolimit.blogspot.com- and she has a post about contentment.<div><br></div><div>I started to journal about that and I ended up thinking about how it feels impossible for us to be out of debt. That lead me to the story of Mary and Gabriel in Luke 1:37. That verse reminds me that nothing is impossible with God - even our finances.</div><div><br></div><div>You see, I want everything NOW. I hate the word process! I don't want this to be a process, I want it to be instant. I want instant gratification - just like when I spent the money. That is not how this works though. It is a process. It is learning discipline - another word I do not like. </div><div><br></div><div>We will go through this though. We will get through it. We will be debt free... Someday.</div><div><br></div><div>Here's to the process... Sigh!</div><br><div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhRNvfl16hxJZXYNgduBL5vGwW68z3hoP2y0hAWW-_nSGsyH4K9F2BnWIWYJvh-UU22qmtaTGwXOJndMfGGBLExWZSXCLWadyCWL2tkg9e3-Wv4sL-UxNlcnerGQH_rHftk_m7og-OjnCWt/s640/blogger-image-633356287.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhRNvfl16hxJZXYNgduBL5vGwW68z3hoP2y0hAWW-_nSGsyH4K9F2BnWIWYJvh-UU22qmtaTGwXOJndMfGGBLExWZSXCLWadyCWL2tkg9e3-Wv4sL-UxNlcnerGQH_rHftk_m7og-OjnCWt/s640/blogger-image-633356287.jpg"></a></div>Anonymoushttp://www.blogger.com/profile/12823278246581076614noreply@blogger.com1tag:blogger.com,1999:blog-781393224008685058.post-90152334282327711312013-09-07T20:12:00.001-06:002013-09-07T20:12:51.036-06:00Slacking OffIt has been a very long time since I have written anything on our blog. I have thought of it many times but it has not happened. So what's going on, you might ask...<div><br></div><div>Budgeting is hard work and it SUCKS at times. We were just hanging out thinking this budgeting thing was easy. Well it's not. I was thinking "I know this" and my husband admittedly was burying his head in the sand. </div><div><br></div><div>Then I got into two fender benders - both my fault - and we had to rent a car AND pay for the deductibles on our insurance. For all of that, we did not budget and pulled out our MasterCard again. I was also buying a few things online with my Visa. In other words, racking up the credit card debt again. Then we went on vacation - which we did not budget for and put it all on plastic again. </div><div><br></div><div>It seems like we have fallen back into our old patterns. We are now in our overdraft for a few months, temporarily, and we have credit card debt to pay too.</div><div><br></div><div>That is very difficult, and a bit depressing, to admit. We were both bound and determined this year was going to be different - and it was for a few months. Then "unexpected" things caught us off guard. I don't know if we should have used our emergency fund for the repairs and then built it back up. We also had an $8000 payroll debt that we had to get a loan out for and pay back - which we have.</div><div><br></div><div>It just seems like we are behind the 8-ball again. We have committed to each other that we are going to "meet" once a week to discuss our budget. We have not done that - and that was wrong. If you are in a relationship, discussing your money issues together is vitally important, in my opinion. If you can't discuss your finances with that person then who can you?</div><div><br></div><div>So, our new plan is to meet once a week, get back into the "You Need A Budget" and "Dave Ramsey" podcasts and bogs. As they say in the YNAB world, it's time for a Fresh Start.</div><br><div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqpc2VWWVJDxD49inl3BU1wRZkeA60uDm9FVITYMnTMmcQK0g_FYd6YYRx_rTfg5MB1sFz1GpoRcopeo1kZ2uiTIOhZOdNVw2hIGethK74pvunw5VKDdEE_jnjYro15RVI7omlMSqyPC8X/s640/blogger-image--723554295.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqpc2VWWVJDxD49inl3BU1wRZkeA60uDm9FVITYMnTMmcQK0g_FYd6YYRx_rTfg5MB1sFz1GpoRcopeo1kZ2uiTIOhZOdNVw2hIGethK74pvunw5VKDdEE_jnjYro15RVI7omlMSqyPC8X/s640/blogger-image--723554295.jpg"></a></div>Anonymoushttp://www.blogger.com/profile/12823278246581076614noreply@blogger.com2tag:blogger.com,1999:blog-781393224008685058.post-30982778864743687212013-03-01T16:00:00.000-07:002013-03-01T16:00:54.663-07:00Stewardship<div class="im">
<span style="font-family: Verdana, sans-serif;">Stewardship: <br />1. the position and duties of a steward, a person who acts as the surrogate of another or others, especially by managing property, financial affairs, an estate, etc. <br />2. the responsible overseeing and protection of something considered worth caring for and preserving<br /><br />From </span><a href="http://dictionary.com/"><span style="font-family: Verdana, sans-serif;">Dictionary.com</span></a><span style="font-family: Verdana, sans-serif;"> </span><br />
<span style="font-family: Verdana, sans-serif;">I have been contemplating this topic for a couple of weeks now. Being raised in an evangelical church all of my life, I have only thought about stewardship as related to finances. For the purpose of this blog, that is what I will be focusing on but I also wanted to draw your attention to the definition so you, as well, can look at all areas of your life and see if you are being a good steward with what you have been given.</span><br />
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<span style="font-family: Verdana, sans-serif;">As I previously posted, Steve & I both make good money so we could not figure out why we were so in debt. What were we doing wrong? We are one full month into using YNAB and it's been very enlightening. By making and (here's the important part) sticking to the budget, we have managed to seriously cut down on random spending, take care of our bills and get to paying down our debt - thank you Lord! We are also living completely on cash which is a whole 'nother experience.</span><br />
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<span style="font-family: Verdana, sans-serif;">What does all of this have to do with stewardship? Everything! We have been looking not only at our money but also at our resources. Are we using all of our groceries each week or are we throwing the fresh produce out? Could I look at starting a small container garden to help offset costs? Can I quit whining about not being in a detached home in the 5 years that we planned on (I seriously need to work on that one)?</span><br />
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<span style="font-family: Verdana, sans-serif;">We have been very blessed and as a born-again Christian, God commands me to be a good steward. As Steve and I spoke more about why we are going onto this journey, he came to the conclusion that it is not just about money but about stewardship. It's taking a "big picture" approach to not just our finances, but also to the other areas of our lives that impact - and are impacted by - our finances. It's about recognizing just how blessed we are, and being content in the place God has set us in. And it's about living (not just setting) an example to our girls of how freeing it is to live responsibly.</span>Anonymoushttp://www.blogger.com/profile/12823278246581076614noreply@blogger.com0tag:blogger.com,1999:blog-781393224008685058.post-40704381216394264862013-02-06T20:02:00.000-07:002013-02-06T20:02:44.514-07:00Awareness<span style="font-family: Verdana, sans-serif;">Where did all my money go? I had more at the beginning of the month but none now, why? Where did all my money go?</span><br />
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<span style="font-family: Verdana, sans-serif;">This is one of the most important questions to answer, in my opinion, when you start on a journey like this. That is one of the main reasons why we started to do this. My husband and I both have full-time jobs and make good money at them. So why were we not able to make it through everything each month?</span><br />
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<span style="font-family: Verdana, sans-serif;">Enter YNAB. Yes, I spoke of this in the last post, and I apologize, ok not really but I will speak of it again and again and again. </span><br />
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<span style="font-family: Verdana, sans-serif;">The biggest difference is when you are allocating your money. Knowing what you have and what it has to be spent on is an eyeopener. Instead of thinking "Oh, I just got paid, I have money for this, that and that other thing over there", the mindset changes to "I just got paid, and after taking out the bills, mortgage, car payment, grocery money, gas money, etc. etc., turns out this and that I can pay for now, but whoops! I don't have money for that other thing over there after all."</span><br />
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<span style="font-family: Verdana, sans-serif;">Whether it's an envelope system that you physically put cash into, a budget spreadsheet where you fill in the numbers, the concept is pretty similar: take what you have, determine exactly what NEEDS that money has to spent on, and go from there. We are becoming fans of the YNAB system, which has you looking ahead only as far as your next paycheque. If you get paid on the 1st and the 15th, your budget each month is basically split into two halves: what your money needs to do for you from the 1st to 14th, and what it needs to do from the 15th to the end of the month.</span><br />
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<span style="font-family: Verdana, sans-serif;">It's a huge adjustment for people like us who are used to planning a month or more in advance. But that advance planning in a lot of cases is a giant mouthful (actually it's a bowlful). The idea of "what do I need my money to do until I get paid again?" breaks that into smaller chunks that actually fit on the spoon.</span><br />
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<span style="font-family: Verdana, sans-serif;">And no, it's not "living paycheque to paycheque", it's just budgetting that way. We've been doing this for not even a month and we're already finding that we have money left over at the end of the paycheque.</span><br />
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<span style="font-family: Verdana, sans-serif;">It's kind of a novel concept.</span><br />
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<span style="font-family: Verdana, sans-serif;"></span><br />Anonymoushttp://www.blogger.com/profile/12823278246581076614noreply@blogger.com0tag:blogger.com,1999:blog-781393224008685058.post-46676201658373725232013-02-02T09:16:00.001-07:002013-02-02T09:16:14.047-07:00Start of a Journey<span style="font-family: Verdana, sans-serif;">Our family has decided to start on a new journey in 2013. We have decided to finally get control of our money, and especially our budgetting and debt.</span><br />
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<span style="font-family: Verdana, sans-serif;">OK... let me back up. Our backgrounds are very different, my husband and I. I come from family that lived from paycheck to paycheck, was quite often in an overdraft, and always wanted to "keep up with the Joneses". My husband, on the other hand, lived in a home where they didn't care who the Jones' are and didn't care about keeping up with them - frugality was, and is, the name of the game for them. Needless to say, it makes it quite challenging to find a balance.</span><br />
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<span style="font-family: Verdana, sans-serif;">I am a HUGE Pinterest fan and a few friends who have talked about Dave Ramsey and how they are living debt free with his help and prinicples. So I decided to check him out. I found a "picture" of his baby step and pinned it to one of my boards on Pinterest. </span><br />
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<span style="font-family: Verdana, sans-serif;">Please note, I have not been asked to promote anything, nor am I getting paid to speak about any of the products I may mention. I have just found tools have been very helpful for us. They may not work for you but I want to let you know about them.</span><br />
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<span style="font-family: Verdana, sans-serif;">We decided to get Dave Ramsey's book, Total Money Makeover, from our local library and began to read it. We are not all the way through it yet so I will put a link to his baby steps up and speak to the steps we have begun.</span><br />
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<span style="font-family: Verdana, sans-serif;">Here is the link: </span><a href="http://www.daveramsey.com/new/baby-steps/"><span style="font-family: Verdana, sans-serif;">http://www.daveramsey.com/new/baby-steps/</span></a><br />
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<span style="font-family: Verdana, sans-serif;">We had a head start. I had already been putting away money into what was supposed to be our savings for a downpayment on a new house, a vacation fund, and many other titles. What it is now, and will continue to be, is our Emergency Fund - which is step 1. We will be finished saving our $1000 this month. WOOT! For some of you, that will be more difficult. What we did is, we set up an automatic transfer every 2 weeks into a savings account on our bank website. That way, I did not see it or miss it - it just happened.</span><br />
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<span style="font-family: Verdana, sans-serif;">The next step in Dave's plan is to pay off all of your debt with a debt snowball. In essence, it means write down all of your debt from largest to smallest. Then pay off the smallest debt first while making minimum payments on everything else. His thinking behind this is the momentum will build up as you pay things off. When you finished paying that debt off, use that money to carry on to the next smallest debt and continue on.</span><br />
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<span style="font-family: Verdana, sans-serif;">I have been attempting to budget for years using an Excel spreadsheet but the dollars did not add up. We had to figure out how to change that. Enter You Need A Budget (</span><a href="http://www.ynab.com/"><span style="font-family: Verdana, sans-serif;">www.ynab.com</span></a><span style="font-family: Verdana, sans-serif;">). This is an incredible program and apps for both Mac and Android, with the help of Dropbox, to help you look at your money in real time.</span><br />
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<span style="font-family: Verdana, sans-serif;">My personal challenge, and one of my stumbling blocks, is I am used to budgeting for the month. With YNAB, you put in your paycheque, give every dollar a job (just like Dave Ramsey says) until your next paycheck. You don't look forward or back. If you sync your budget using Dropbox, you can enter a transaction from the grocery store, ATM withdrawl, or anything else and it will update your budget immediately. There is a cost for the YNAB program and there is both a lite and full version of the apps (I would recommend the full version - it's only $5). The big difference between the two is the lite version only lets you enter transactions whereas the full version will let you see your budget as well. I have read on the YNAB Facebook page that YNAB is the electronic version of Dave Ramsey's envelope system - works for us!</span><br />
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<span style="font-family: Verdana, sans-serif;">As we put our incomes and budget into YNAB program, we realized we don't have anything extra to put towards our debt. Therefore, we are doing a Dave Ramsey/YNAB hybrid. We paid all of our credit cards off with our Line of Credit, which maxed it out, then went to our bank to end the Line of Credit and put it into a fixed rate loan. Due to this, we will have the loan paid off in 5 years and then be able to put that money towards paying off our new van - told you we like to spend. We should have everything paid off, except our house, in 5 1/2 - 6 years.</span><br />
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<span style="font-family: Verdana, sans-serif;">Ok, I am going to stop for now but will continue to journal/blog as the journey goes on. Feel free to join us if you want.</span>Anonymoushttp://www.blogger.com/profile/12823278246581076614noreply@blogger.com0