Tag: Dave Ramsey

Monthly Money: Let’s talk security…

ChelseaLeave a comment

Who just got their stimulus money? We did. And I was so excited. We have been fortunate to not have had Covid-19 affect our finances. So the stimulus checks have been used to further our financial futures and give us a better life in the years to come. Don’t get me wrong, we used a little of each one to help stimulate the economy. Buying things we haven’t wanted to splurge on knowing our bigger picture. But for the most part, the check have gone to building savings or paying off debt.

Yes, the Stimulus Check is meant to stimulate the economy so I am 100% for using a small amount of it and buying something at a small, local owned business. They are the ones really hurting right now. Or go to a local restaurant and leave a great tip for your server who has definitely taken a hit this year.

If you, yourself have taken the hit, PAY ON WHAT YOU NEED. Start with where you live, what you eat, and how you transport yourself. Those things are not negotiable. You need a safe stable place to live and utilities (water, electric, heat), you need food to eat, and you need to be able to get yourself to and from a job. Use this money to get back on your feet if you need to. You are who this is meant for! Use it where you NEED it. Anything left over? Catch up on other bills you are behind on. And use this time to cancel those subscriptions you don’t need that are eating up your money right now. You can always get the back as your season changes and improves.

If you are one of the lucky ones, use it in your next step. We are on step 2, pay off debt. We are sooo close I can taste it. Our check would have taken care of everything but a car payment! One car payment a month! And we would be able to pay extra on it each month leaving us with the ability to pay it off much sooner than originally planned. That was the plan. And then Murphy came knocking. Actually his name was Kevin… And he is with a roofing company.

Apparently one of our neighbors had some damage to their roof due to a storm last year. And when they came out to check it out, the roofers noticed damage on another neighbor’s roof. And ours… So he came by and asked if they could give us a free look and see if there is anything wrong. Long story short, our first major repair is scheduled to be redone on the house. Not bad for 10 years in the home and this is the first major issue we have had. I can’t complain. But rooves aren’t cheap. Thankfully insurance covers it (and they were surprised we haven’t had any issues because of the extent) because it is storm damage! Only our deductible is needed. Whew! But that still isn’t easy. Finding a $1000 deductible to come up with is hard for 60% of people in the US. SIXTY PERCENT! Because we have followed the plan, we have the savings and honestly don’t even have to touch it because of the stimulus check. Instead of paying debt off, we are using that to cash flow our roof. Let me say that again. WE DON’T HAVE TO DIP INTO OUR SAVINGS TO GET A NEW ROOF. Now this would not be possible without the stimulus check but there is one thing that is hitting me more about this than anything else.

Security.

Before when I had a car issue, or something went wrong with the house, or a big medical bill came up, I panicked. How would we get through it? Where would the money come from? Are we ever going to get out of the hole? Is it going to pile up forever? What kind of life are we building for our children? Now? Something happens and my immediate reaction isn’t panic. It isn’t fun. It isn’t joy that we have to spend that much money. But my stress level is so much lower than it was before. Because I know where our money is, what it is for, and exactly how long it will take to get back if we do have to use it.

So how do you start? Because you want security. You don’t want to freak out any time something little happens. I know you don’t. Because who would? You can do this. Start here to find some free ways to get acquainted with the steps and how you can do this for free, because you don’t always want to spend money to keep your money.

Then start with Step 1: Build Your $1000 Emergency Fund. So many ways to do this:

  • Start selling clothing you don’t wear on Facebook Marketplace
  • Sell old toys
  • Sell baseball or trading cards
  • Pick up a side job like Lyft, Uber, DoorDash, etc.
  • Online teaching on Outschool, VIPKids, personal tutoring via zoom, etc.
  • MLM/Direct sales (be careful with these but if you can do it and actually make money, go for it)
  • Use a hobby and turn it into cash flow (Baker? Sell cookies. Artist? Sell pieces.)
  • Become a freelance writer if you have the skill.
  • Use your stimulus check and put it in the bank to make it work for you
  • Cut out any unnecessary bill each month (Netflix, Hulu, KiwiCrate, etc.)
  • Stop unnecessary purchases (Do you really need Starbucks 5 days a week? That is at least $20 a week)
  • Pay yourself first. When you get your paycheck the first “bill” you pay is savings. Use a percentage of each check and do not deviate. Watch those savings keep going up!
  • Shop around for insurance and cell phone providers. We saved almost $150 a month switching from Sprint to Google Fi and even living in the country, we still get similar service and at home we use Wi-fi to not increase our data usage.

Whatever way you choose, you are going to have to make a conscious decision to change your habits. But I promise it is worth it! What are some ways you saved in the past? Comment below with any other ideas you have!

Monthly Money: Ramsey the Free Way

Chelsea1 Comment

Ok, this one is kinda adult-y. I don’t even have any pictures for it. It isn’t super fun for most, actually it is down right stressful for many. But it is honest. And I am super excited to share the hope.

When it comes to money, I am all over the place. I hate paying full price, but I am the first to admit I will buy stuff I don’t need. I won’t pay for things I know I can get for free either. I understand why certain things are marketable and people will pay for them… but I am not that person. However, that doesn’t make me a fiscally responsible person. To be honest, I probably am not. Not because I don’t have the knowledge to be but because I let bad choices become bad habits and now I have to break out of that.

In the past 12 years, our lives have changed so much. We have gone from a well cushioned life of a newly wed double income couple, and run the gambit to both being completely unemployed for a couple weeks. Let’s just say in 10 years we have often tried to get on track. When I was first researching financial plans and how to get on track after becoming a stay at home mom 9.5 years ago, that was when I first came across Dave Ramsey. It struck a chord but didn’t stick. Nothing did. Except constant worry and stress. It led to many sleepless nights, hardships, and even tension in our home.

Well, after Mermaid arrived on scene 2 years ago, and yet again being a completely stay at home mom with no income, something had to give. Making changes was no longer an option. And continuing to ask for help when we are capable adults, was just embarrassing, because -yeah- we did that… My first task was to get all of our bills on track and current. Sadly much harder than it should have been. We had a lot of car issues, hospital bills, and just bad decisions on my part. No excuses though. I needed to change.

I was talking with a dear friend who was also dealing with some financial stuff and we talked about the Dave Ramsey plan, Baby Steps and all. I committed to myself and my family to make better choices about where our money was going. I read books by Dave Ramsey and Rachel Cruze (his daughter) but I got them from the library (e-book loans are my favorite things!) because why spend the money on them? Dave and Rachel wouldn’t want me to do that… I am trying to get my money on track! I joined their groups on Facebook and followed them on Instagram. I searched Pinterest for Baby Step ideas, listened to podcasts and so much more. But one thing I would not do is spend money on the products. I wasn’t going to use money when I knew I could find the information for free. There are probably hundreds if not thousands of blogs that will take you through the Baby Steps. If you need to convince yourself to get on board with it, or get your spouse on board with it, or if you need the extra coaching, I am not telling you not to buy their stuff. I am sure it is 100% worth it. But do it properly. Start by saving up for it. Want to do Financial Peace University? Awesome. Save up $5 every paycheck until you can get there. Because one thing Dave Ramsey and his cohorts wouldn’t want you to do, is make things worse trying to make them better.

This is going to be the journey of our financial change. In about 24 months we will have gone from barely keeping our head above water (and sometimes not even doing that) to almost debt-free. We still have one we are working on other than our mortgage, but I will be doing everything I can to get that paid off by Mermaid’s birthday next year! I won’t post a ton about it but I am hoping to give someone out there hope that things can change. And it will get better. It may take time but I promise it is worth it!

Ways to do Ramsey BabySteps the FREE Way:

  1. Use their websites. There are a ton of free resources that you can look up. Including what the Baby Steps are and trackers for the first 3! It also has budget worksheets for every type of income.
  2. Use Pinterest, Blogs, and the internet and any other resources on your computer.
  3. Do a easy zero based budget on your computer using Excel.
  4. Sell anything you can. Some people take this to the extreme and sell their cars and house… don’t do that. You need transportation and you need a place to live.
  5. Seriously and discriminately look at where your money is going and cut out ANYTHING that isn’t necessary with the exception of the money you leave to treat yourself.
  6. Treating yourself is important in this process. You don’t want to restrict your budget so much that you have no fun in your life ever. But definitely be honest with yourself. 1 cup of Starbucks a week is doable. But do you really need one EVERYDAY?
  7. Find the books and even the workbooks on places like Amazon, Thrift book, etc for a percentage of the original price and usually in great condition!