BLOGGER TEMPLATES AND TWITTER BACKGROUNDS »

Thursday, January 20, 2011

Baby Steps.....

Our church started small groups on Sunday night again. I do love small groups as you get to know people better, however, I'm not sure how I'm going to like this class. First of all we had to pay $99 to take it.....ouch, ouch, ouch! That's quite a lot of money. Secondly, it is Financial Peace University by Dave Ramsey. I've listened to Dave a few times on the radio, but I have to admit I feel at times he can be a little harsh on these people who are desperately seeking help. Maybe that's me sympathizing with their pain and him just saying it "as it is".
I keep wondering how we can have "financial peace" when Jack is losing his job. How can you have peace when there is no income coming in, or if there is, it is significantly lower than you have now? I do have peace that we have money put away, but what if we deplete that fund? Class one homework was to make a budget. How can I really make a budget when I don't know what we have coming in?
Dave does a lot of baby steps. One of the baby steps is to have $1k in the bank for your "emergency fund" (check, thankfully we have that). One of the other baby steps later down (I think it is 4, 5 or 6) is to have 3-6 months of savings saved up. (check, we have that). At this point I should be feeling pretty good about the class, but it's all the other stuff having me worried. Will I EVER be able to go shopping again without feeling guilty about it? If I find some clothing for 75% off for any of us, will I have to pass it up? What if I want a girls night out? Do I have to tell them "sorry....there's not enough in the budget this month....please wait until April 1st when a new month starts?"
Jack and I charge EVERYTHING, but we pay EVERYTHING off every month. (and earn rewards for it) Still, this is a big no no with Dave. I must admit, I don't fully agree with him about cutting them up. What if I want to reserve a hotel room, or book a flight? I am NOT giving them my ATM card for that!! From what I heard, Dave does not even agree with a credit card even if you pay it off each month. I am not sure how I will handle an "all cash basis". I guess I have to rob from our grocery fund if our gas fund runs out. I agree we have gotten slack about running through the drive thru and not tracking where our money really goes (even though we write down all our receipts to verify them) but I honestly dread going to an envelope system!!
And the idea of a lower income or no income at all scares me. How do we cut any more corners? We don't have cable, we take our own garbage, I won't get my haircut, Jack cuts the boys hair, I use coupons, I shop for bargains and the list could go on......I'm not sure what else we could cut at this time to make ends meet.
So stay tuned to see how well I adjust to this new system and what Dave Ramsey teaches me!! I know Jack is fully on board.....I'm just a little further behind at this point.

5 comments:

Jack said...

I really like knowing exactly where everything stands as far as finances. To me the cash system would make budgeting very easy. No money in the envelope means to stop spending. I think the credit card makes it way too easy to buy on impuse which counters the points we earn.
I know God has a plan in this and we will be fine. It's the fear of the unknown at this point that makes us nervous. We just have to trust God. His timing is perfect. I am just glad we didn't rush into buying a new house.

Unknown said...

Jack does have a point about when using cash you don't buy as quickly on impulse. I never had a credit card before I was married (I didn't make enough as a Christian school teacher) and I think I was a lot more frugal when I didn't use one. But we are like y'all and pay them off every month. Bobby and I both agree when we stop doing that the cards have to go.
And as for girls nights out, when I was single none of us could afford to eat out, so one person would make sandwiches, another bring chips, and so on, and we'd rent a movie and meet at a friends house. We also did home-made pizzas that way. So if you ever need me to keep the kids so you can have your friends over, (or so you and Jack can have an at home date night) or if you want to have a group of girls here, you're more than welcome. I think you're going to be pleasantly surprised at how well you adjust and handle this upcoming change in your life oh frugal friend of mine. :)

Lydia said...

Jen, the Financial Peace journey is going to be so much easier for you and Jack than for others because you have been so wise in $ already. I love Dave Ramsey and he is the reason Rich and I aren't in debtor's prison...ok, I realize that debtor's prisons died with Charles Dickens but you know what I mean. I will say the only thing I really disagree on is Dave's policy on saving for the future. I think it's ok to have an emergency fund but other than that I feel that the Bible is very clear that you are to give and give and share and give some more, not hoard and save and keep:)

Unknown said...

I don't know Lyds...I agree the Bible is VERY clear on how we are supposed to share and give sacrificially, but there are also numerous examples of very wealthy people in the Bible. (Abraham, Isaac, Job, Abigail, etc). The only times you see sin mentioned with wealth is when that person puts their security in it or in their ability to get it. (Deuteronomy 8:10-18) We've also got the example of Jesus' parable where the master rebuked the servant for burying his money and not investing it to make a profit for the master. I agree the Bible says a whole lot more about giving than it does saving, but the principles are definitely still there.

Lydia said...
This comment has been removed by the author.