Mo' Money

Time to talk about money again.  I have blogged about money a fair amount, and set a goal last year to teach a money class some day.  Well, that day has come.  We have been teaching the class for over a month now and it has been great.  The class is called Financial Peace University.  Financial Peace, two words that don't go together.  But really, they can.  You just have to be weird.  Never one to worry about that, I have been embracing the weirdness of coming to terms with money for a long time now.

I found my first Dave Ramsey book almost a decade ago.  Financial Peace.  It had a hopeful message and sound principals.  Most money books are hard to read, but not this one.  Hard to do, yes.  But not hard to read.  I read it first back in '02 and got inspired.  We got on the envelope system, started tracking expenses, and worked to live below our means while cutting out credit.  Somewhere between '05 and '07 Kevin shot our last credit card.  Yes, I said "shot".  He canceled the account once it was completely paid off, confirmed that it was indeed a closed account, hung up the phone, and shot the card twice.  Then he mounted it like a deer, with antlers and everything.  It hangs in our living room today.

We got the principals down, but the actual doing ALL of it has come slowly.  Dave does a seven step plan, and we languished on step two (pay off all debt but business and home) for about eight years.  March of last year we paid off my student loan, which was our last personal debt, and we were finally done with step two.  Yahoo!  It felt amazing.  So amazing that I got serious about sharing it with others, and my pastor liked my hair brained idea too.  Kevin was more than willing to go along with it, so through our church we are teaching our first Financial Peace University class.  This has really upped our game, because now we have to do everything for real.  All the parts of the plan, including income planning, asset management, and the dreaded budgeting.  We have half budgeted for a long time, knowing mostly where our cash is going, but not keeping an eye on the income, or planning ahead for future expenses. Christmas has snuck up on us every year.  And we never had a real car repair fund, even though it is guaranteed we will have breakdowns with the age vehicles we drive.  "Let's just hope for the best" ain't gonna cut it any more and we sat down to hammer out a real budget last month and this month.  It was scary at first, but has already gotten easier.  We are finally getting a handle on complete budgeting, and it is actually quite liberating.  Really.  I swear.  It is so liberating we will be doing it every month.  Told you I was weird.  But hey, average means broke, so I am totally going for weird.

And now we are about to knock out step three.  With our upcoming tax refunds we are going to completely fund our 3-6 month Emergency Fund.  We had been worried about whether or not we would get a refund (due to poor budgeting we didn't really know), and then trying to wiggle out of doing the right thing.  But through the complete budgeting process we have seen where we stand, and it helped clarify where we really want to go.  Trips are nice, but life goals are better.  We are going to  complete the Emergency Fund first, then go on to a few little goals with what is left while leaving our budget in good shape for the rest of the year.  Christmas will NOT sneak up on us this year.  We are setting up appropriate savings (like for the car) and now have income goals to shoot for to keep our budget where we want it, and to build it for the future.  We are managing our money and telling it where to go, rather than wondering where it went.   Financial Peace... it really is possible.  Next comes climbing step four, Retirement Funding and planning.  Not as scary as it used to be, and now way less likely to sneak up on us.  Well, that's it from the money desk.  If you have been wondering where I have been, now you know.  Money land.     Happy financing, people!

Change sucks

I'm just saying.  Really, is there anything more to say?  I've been working on changing bad habits and it just sucks.  I had those habits for a reason, and the reason was they worked for me.  Ignoring my finances worked for me.  It took no time, and no effort.  And that is my type of living. 

Yeah, sometimes I am up for the challenge, and sometimes change just sucks.  That's all, gotta go to work.

Financial Heaven

Turns out A "Financial Fast" is heaven for me.  It is done, and I loved it.  I loved not spending money, I loved not shopping, window shopping, or even thinking about shopping.  I have been anti-shopping for most of my adult life, and I like it fine that way.  Not that I don't go on the occasional spending spree or have my spending weaknesses, but overall I do just fine without it.  It gave me fewer things to think about and make decisions about.  I like not spending and also saving.  We saved a ton of money, I do not even know how much yet, but it was close to $1000.  Some of that was selling off unused stuff, some of it was extra work, and some of it was just stopping all spending for 21 days.  Of course that last one will result in some extra spending as we get back to it, just not too much I hope.

So, we fasted.  And we cleaned.  Or actually we cleared.  Cleaning will come next.  But we are still finishing up the clearing.  Wow can a tiny house hold loads of junk.  LOADS.  More on that another time.  There are a few things left in the Fast.  We are following the next step by writing down all of our purchases for the next month, down to the gumball.  I need to balance our accounts for last month, and tweek the system so we can keep track in real time, rather than ignoring finances until they shout to be heard.  I need to pass the book on so it can be used by another (and another, and another).  I have a dream of leading a group of folks in a Financial fast next year, and then leading Financial Peace University, too.  It is a very good thing, and would be fun to lead and hear other peoples experiences.  Since I am an avid NPR listener I do feel a bit guilty since I am doing nothing to help the economy right now, but that is really just a great rationalization for unnecessary spending anyways.  I always like a good rationalization.   

Unfortunately my whole life is not heaven at the moment, but at least I have one little corner of it.

Peace Out.

Week 1- Financial Fast

So far, so good.  Actually really good.  I will do this again in the future.  So far we have saved $500 and the outcome from the garage sale may put us over the $1000 mark for the month's savings.  I have not been perfect, and have had two big cheats and one small one.  The big ones were pre-planned, because I was not going to cancel my hosting of book club, or the play Rent.  I did spend about half what I usually do for book club, and managed a great meal.  I generally put on the Ritz for the event, going all out with imported things (like $15 cheese) and fine wine.  This time around we had Cheeze Whiz (super fun) and beer, hard lemonade, and hard cider.  Plus I fed 10 with my meatloaf and mashed potato casserole, with three meatloaves left over.  I did not worry at all about tanking my Entertainment envelope for the $25 for Rent, because there is no other entertainment to pay for.  And it has not been painful.  It just simply is not on the radar to run out and rent something, or go out to the movies.  The things I have done include going with my boys all over town on the Gallery Hop, my first time ever.  I have wanted to go for Years.  I debated if it was a cheat or not since we were in "stores", but I called it looking at art and getting inspiration instead.  Plus the trolley was free.  We met up with a ton of friends and their kids at my favorite gallery, and when one parent decided on the spur of the moment to buy a $145 necklace I did not have the tiniest bit of jealousy.  Usually I might have, cuz who doesn't like to treat themself, but instead I felt very content.  Very.  This friend makes a big salary, and has a beautiful house in the woods, and I have been jealous of her family in the past, but maybe part of that was just feeling they had everything together and we didn't.  Now we are getting ourselves in order and I know we will make our mark in a good way.  Plus we got really good news at that gallery,  a local artist has agreed to make a new logo for us for barter.  It's gonna be sweet. 

Because we were not running over to the candy shop to buy Alex some Swedish Fish, or to the ice cream shop for some instant bliss, instead the kids all played on an outdoor banister for a good half an hour.  Going down, squishing each other, rolling out of the pile up, running up the stairs to do it again.  Then we all went over to the beach and the kids threw rocks in the lake for another half an hour.  And I had no deep need to run over to the coffee shop and miss part of the action, like I have in the past.  It was bliss.  We also had our friends stay over night this weekend and I did not run out and buy a ton of groceries like I usually do, yet we still ate crepes with strawberries and chocolate for breakfast.  Partly inspired by the fast I picked up a double this week I would have usually passed on, so there are 200 more dollars to throw on the pile.  But that does lead to my other minor cheat.  When I was on the double I charged my lunch, and a glass of tea, and then threw all caution to the wind at change of shift and bought three pieces of chocolate at the gift shop.  I call it all one cheat since it all snowballed off itself.  To top off the week, I went for a run.  Oh, and I started to learn to surf, but that is another story.

So there.  The first week of the financial fast, and my cheat confessions.  That is the fast so far.  I have not kept an actual journal, as the book suggests, and have not completed my budget or net worth statement, but I have time.  Two more weeks of no cash spending, I am psyched!

Day 1- Financial Fast

So far so good.  Started the Financial Fast today.  Not a penny has passed from my hands.  Went to work, then came home and had a lovely evening with the boys.  Hasn't been hard at all, yet.  Just no temptation to run out to the video store after wee one is in bed.  Instead I looked forward to calling my mom, and also had a nice bath, and did my needed neck stretches.  And still have plenty of time before bed.

We have been on the envelope system forever for food expenses, and incidentals, and entertainment, and trips, and whatnot.  This means I go to the bank twice a month and take out our planned amount of cash, put it in the designated envelopes (grocery, eating out, pets, trips, blow fund: which means blow it any way you want, gas, entertainment, clothing, etc.) and when the money is gone, it is gone.  No cheats, no stealing, no credit.  Theoretically.  We have actually been pretty good overall, but have had our weak areas.  For this fast I am hoping to do the whole month on only one cash run, and put the rest in savings.  It should be fairly easy since whole envelopes (eating out, blow fund, entertainment, clothing) wont be touched.  Our whole budget has always been quite limited anyways, but this will give us even more awareness.

What I am already much more aware of is how much of spending is purely entertainment.  How often I will go and do things mostly for the kick of spending and for something to do.  That walk to the ice cream store.  A last minute run to the video store when there is nothing in particular I want to watch.  Perusing at the consignment store when I really don't need any more clothes.  There is a no window or catalog shopping rule too, so it was a little odd not to look at the print ads from the Sunday paper at work.  I usually check out building supplies, appliances, and Best Buy to dream a little, but not today.  I saw the ads sitting there and just looked away, aware but not upset.  Oh, the marketers don't want to hear about this for sure.  I did sneak a peek on my way home at the fun prom dresses in my consignment shop window, but only as we drove by.  I don't think it truly counts as cheating.  No, not yet.  I'm sure that will come, in fact I have two cheats planned, but overall it was a good start to the fast.  And I am actually excited to see how it unfolds.  1 down, 20 to go.

Break Those Chains

I am starting a 21 Day Financial Fast on Sunday.  21 days of spending NOTHING, except groceries and gas.  No videos, no movies, no eating out, no chocolate on my way in to work, not even a gumball.  Bills are exempt.  That's about it.  And store pizza has to be pondered as a need or a want...  Oh, and no shopping.  None.  No window shopping, garage sailing, no catalog looking, no Craig's List on the internet, no Sunday ads, nothing.  Oh, this is going to be fun!!!

More On Money

Holy crap, we did it.  Paid off my student loan.  Paid it off early, and paid it off with our very own money.  It feels absolutely amazing.  Really, really good.  And believe you me, I know all about feeling good.  I have chased that feeling all over the world.  I started early, at 16 I was sky diving.  By 22 I was regularly whitewater kayaking, rock climbing, and had even bungee jumped.  In fact, I almost got a job as a bungee jumping tech.  I knew I would get to test the equipment every day.  Yahoo.  And that would feel great.  Finishing a difficult rapid feels great.  Climbing a 5.9 rock face and topping out feels great.  Leaping off a 212 foot bridge after a helicopter ride into the bush of New Zealand feels Great.  But man, paying off those student loans feels really GREAT too. 

As I said in my earlier post, I have been a terrible money manager.  I have behaved as if money grew on trees, and it was always harvest time.  A few years ago I made up a little ledger sheet called "Gifts and Loans of our Marriage".  That was a reality check.  We got very far on a fabulous family, student loans, and generous associates.  And some dumb luck too.  We found our house through our outdoor network, and the seller was very easy on us.  Nice old rust buckets with plenty of life left in them have fallen into our laps.  Even appliances have turned up when we really needed them.  Okay, we had needed a new stove for awhile, the bungee cord we used to keep it closed was starting to fray.  But still, a three year old stove for $50.  How does that happen?  Dumb luck, and a dirtbag willingness to wait.  Yes, we have lived frugally, but when push came to shove we got some really big loans and gifts too.


No more.  No more loans.  No more counting on gifts.  And no more ignoring the big things like budgeting the money we earn, a real emergency fund,  repairs for the house, retirement, a college education for Alex, and real investments.  We are doing a Total Money Makeover, ala Dave Ramsey, and working the Steps.  This is not a cult, but it is counter cultural.  We are giving up totally on credit.  No cards.  No payments.  No 0% interest and "no money down".  We are going back to the old ways, if we don't have the money, we don't buy it.  And learning to save for what we need.  And learning invest as well.  Step, by step, by step.  ALL of our personal debts are now paid, and we wont be running out for a student loan or new car.  I have personally been tempted, with all the great car offers out there now, but I think I passed the test.  Instead I am focused on filling up that emergency fund, having $12,000 for rainy days.  Not for cars, or repairs, or trips, or other things we will budget for for, but for emergency's.  For the big "What if's" and real general security.  Once we have that lump sum (and we are 1/4 of the way there) then we will crank up the retirement fund.

The real key to all of this is controlling people.  In specific, the people in the mirror.  Along with the the "Loans and Gifts" sheet I toted up all of the income Kevin and I have earned.  It is actually more than all the gifts and loans.  Whew.  That was good to see, and inspiring.  Kind of sad, wondering where the hell it all went, but ultimately inspiring.  Helped kick us into gear, and really commit to this Total Money Makeover.  Now we are running with it, and feeling great.  GREAT!  I realize now the cost of avoidance.  And the freedom of the fight.  It is all doable, and it is ALL GOOD.

Money Honey

WARNING:  Much X Rated Adult material about that most naked of subjects....Finance.  Read at your own peril, this is a bare all kind of discussion. 


I have been the world's worst money manager.  Thank goodness I was given a lot in my lifetime, or I would have been forced to turn to prostitution, drug dealing, or cat burglary.  I traveled all those years ago on a surprise inheritance, not on any super savvy money ethic of my own.  I never even had a job until after my sophomore year in college.  Every big trip I ever took was either a gift, or a gift.  I'd like to believe I earned those trips through charm and being a good person, but that is more bull shit than I can handle.  Just damn lucky I guess.

Not to say I haven't gotten better over time.   I actually have worked for a living for many years now.  I don't bounce checks or use an overdraft "line of credit" or pile up interest that I never tally anymore.  My hubby and I settled in a reasonable town, bought a super cheap house, and almost live within our means, including supporting a munchkin.  I've gotten better, but am about to take it to the next level.

Total Money Makeover.  I started this process back 2002.  We started using cash for all the little stuff and got on the "envelope system" to make that work.  We stopped using credit, and Kevin shot the last credit card back in 2007.  We have Health Insurance, Life Insurance, and are close to a real will.  Now we are about to take our Tax refunds and jump into the deep end of the pool.  Spend it all by paying off ALL of our personal debts, including my student loan.  Start building a real emergency fund (aiming at $12,000), and see how fast we can do it.  Then we really get into the nitty gritty of The Plan from there.  We are selling things off, tightening our belts, and finding ways to increase our income.  We will be having a big garage sale in May.  All big purchases, all the "I wants" are on hold.  The truck is gone as of yesterday.  The scooter sold last month.  We are again a one car family, and will stay that way until our budget stabilizes.    We are officially nuts, and this is fun.

No really, I swear.  This is fun!  I am so excited and pumped.  The thought of money no longer makes me nauseous.  I work my budgeting sheets into the dark of night, because I WANT to.  I am finally figuring out things that were a total mystery to me.  Like how compound interest works, and what the heck a "nest egg" really is.  Perhaps the strangest thing is the thought of working is also exciting.  Weird, but true. 

I am off and running.  There is more to ramble on about, but this is a good start.  I dream of teaching a class on finance in a year or so.  Just a little one, no new degree needed.  For now I will head off to work to see my peeps.  Especially those who have already joined me in the She Woman Debt Haters Club that was formed a few years back.  Ciao.