A very sweet friend from my church asked me if she could help me overhaul my finances (since she saw the posts I've been making regarding money). Her family uses the Financial Peace Plan put out by Dave Ramsey.
As you are probably aware if you have read any of my posts, I am trying to get my finances in order so in short I don't have to worry about money! As I've mentioned, I'm a girl, and I love to spend money on cute things as well as necessities. That's ok as long as I'm not overspending which I have tended to do these past two years.
I suppose that I can trace my unwise handling of money to my second credit card which I got the end of 2010.
Since I was a late teen, I have had one credit card. And I really think that all young adults should start out with one to build up credit (disclaimer: Once I am done going thru the Dave Ramsey Financial Peace Plan, I may say that I don't think it's a good idea).
I had always used the card for emergencies, or for certain specefic purchases that were a little more than my cash allowance. The one thing I did that saved me from debt for many years was that right after I made a purchase on my card, I would write a check in my checkbook for that amount and deduct it so that when the credit card bill came, I would have the funds to pay for that purchase.
I continued on like this until 2010 when I got a new credit card.
For some reason, my spend mode kicked in big time and I began charging, charging, charging and while I might write out a check here and there for some of the purchases, for the majority I didn't have the funds to cover the purchases. I feel bad saying this but there were many bills that I had to dip into my savings to pay off (because I didn't want to have interest or late fees). The only good thing that I can say about that time was that I wasn't accruing interest (which is NOT a good feeling) or late fees.
Then, my savings became depleted because of using it to pay off large credit card bills filled with (mostly) unessary items. I had a decision to make. I continued using my cards, not realizing the consequence. About September of 2011, I began to have a bill accruing interest =(. I'd NEVER had that before in my life so it wasn't a good feeling.
Ever since then, I have been trying to handle my money better but it never really clicked until I saw how quickly debt could pile up (especially when using credit cards).
That's the back-story to me learning from Dave Ramsey's Financial Peace.
Even though I've only had one session with the friend from church, my thinking is already beginning to change and I look forward to the next lesson.
It's hard for me to share most of the things above but I really do want to help other young people out. If I can spare you from debt by my mistakes, that would be lovely.
If you have any questions or comments, I'd love to hear from you.