Last night, I had some time to kill before going to church so I decided to go into one of my favorite stores, Ross.
Not many times do I go into Ross without carrying something back out. It could be a piece of clothing, a pair of shoes, a pocket book, or something for the home but I usually come out with one (or two) items.
Last night I didn't.
It was hard.
I looked in every section. In the clothing section I saw a cute lace shrug that would be perfect for summer ($10.99). And in the housewares section, I saw this adorable little box with tiny drawers (big enough to hold jewelry) that I LOVED. I almost picked it up. But then I rememered: I didn't have money!
Well, I had $1 but really, that's not considered "money" if you know what I mean.
I had spent my week's allowance and would not have next week's money til Friday. So, with regret, I stepped away and moved on.
I know that if I would have had my credit card with me, I would have rationalized with myself to purchase one (or both) of the items mentioned above. And knowing me, a few months down the line, I would be wanting to get rid of one of them.
Last night's experience was actually freeing. True, I didn't really have the option to buy or not to buy since I didn't have the cash (or a credit card) on hand but being able to look at something, really want it and then turn and walk away was NICE. It let me know I can do it. It also reminded me that some things (the things that aren't really that important to me and that I can live without) will fade from my mind and in a day or a week, I won't remember what they were. The things that I truely desire (those items that call to me and speak to me) will be more important to me because I will have saved for them.
That's my first experience with 'window shopping' in a while. We'll see how the next episode goes!!
Sara
Thursday, February 2, 2012
Wednesday, February 1, 2012
Dave Ramseying My Finances - Session One
I mentioned in the post before this that a friend is helping me with my finances by going thru Dave Ramsey's plan. Well, I decided to share with you the bits and pieces I jot down from those sessions. I took a trusty notebook and pencil over with me to write down things that I deem important.
Please note that I will not put things up here that are not available already for free on Dave Ramsey's website.
Session # 1
Baby Steps (These 7 baby steps - if consistently practiced- will leave you debt free)
1 - Have $1,000 emergency fund in a Money Market Account
2- Pay off all debt that you have except for your home
3 - Have 3-6 months expenses in savings (you will add this money into your emergency fund after you get your emergency fund up to $1,000)
4 - Invest 15% of your total income into Roth IRA's and Pre-Tax retirement
5- Begin a college fund for your children
6 - Pay off your home early
7- Build wealth and give (this is when your investments bring in more money for you than your job does).
Completing all these steps should take between 15-20 years. When I heard this I was like, "Oh No!!" But that really isn't that long a time.
Next came the list of things that you should be saving for:
1- Emergencies
2 - Purchases (should pay all purchases in cash)
3 - Wealth Building (investment)
One thing that really stood out to me as my friend was going thru the lesson with me was that all this requires DISCIPLINE!!!!! This is something we all need more of and is the key to making this plan work.
Something else that we went over was that if you have a 401K, you should STOP adding money to it until you get all of your bills paid off. At first this suggestion was foreign to me and I was very nervous but the more I thought about it, the more it made since. 401K's continue to grow (since they're based on stocks) or lose so whether I stop adding money for a few years or not, it's still going to go up or down.
Towards the end of the session, my friend printed out this Quickie Budget which I filled out. Then she pointed me to the very very advanced budget that she wanted me to have completed by our next session. Both budget forms are at the link.
So, that's what I learned in my first session. I hope this has given you some ideas and resources to begin your own finance plan.
Let me know your ideas, comments, concerns,etc.!!
Sara
Please note that I will not put things up here that are not available already for free on Dave Ramsey's website.
Session # 1
Baby Steps (These 7 baby steps - if consistently practiced- will leave you debt free)
1 - Have $1,000 emergency fund in a Money Market Account
2- Pay off all debt that you have except for your home
3 - Have 3-6 months expenses in savings (you will add this money into your emergency fund after you get your emergency fund up to $1,000)
4 - Invest 15% of your total income into Roth IRA's and Pre-Tax retirement
5- Begin a college fund for your children
6 - Pay off your home early
7- Build wealth and give (this is when your investments bring in more money for you than your job does).
Completing all these steps should take between 15-20 years. When I heard this I was like, "Oh No!!" But that really isn't that long a time.
Next came the list of things that you should be saving for:
1- Emergencies
2 - Purchases (should pay all purchases in cash)
3 - Wealth Building (investment)
One thing that really stood out to me as my friend was going thru the lesson with me was that all this requires DISCIPLINE!!!!! This is something we all need more of and is the key to making this plan work.
Something else that we went over was that if you have a 401K, you should STOP adding money to it until you get all of your bills paid off. At first this suggestion was foreign to me and I was very nervous but the more I thought about it, the more it made since. 401K's continue to grow (since they're based on stocks) or lose so whether I stop adding money for a few years or not, it's still going to go up or down.
Towards the end of the session, my friend printed out this Quickie Budget which I filled out. Then she pointed me to the very very advanced budget that she wanted me to have completed by our next session. Both budget forms are at the link.
So, that's what I learned in my first session. I hope this has given you some ideas and resources to begin your own finance plan.
Let me know your ideas, comments, concerns,etc.!!
Sara
Dave Ramseying My Money
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.
Sara
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.
Sara
Friday, January 27, 2012
Free Blog on Financial Advice & Changes I'm Making in my Budget
Whether you're single or in a relationship, the website I found today will be a great asset to you! Go check it out! I've already read almost every blog post on there and am considering doing the coaching....
http://kariehill.com/blog/
So, a friend and I were talking Monday night. I was telling her about the funds I had saved for my Italy trip in April and she was giving me advice on how to save more money.
It's confession time. I LOVE to spend money. I mean, I do save, that is one thing that I've always done. I have a 401K, savings account and a CD but the money that I actually get, I LOVE to spend. If I go into a store and see an amazing pair of earrings, I HAVE to get them because, who knows, they might be gone tomorrow....
Yea, that's me. One thing that my friend mentioned was making saving something to look forward to, just like (at this particular time) I look forward to finding that great pair of earrings (or piece of clothing, or makeup, etc). For example, if I see some great earrings, I need to WAIT at least a day before purchasing, so I can really evaluate my desire for the earrings and weigh the cost of them against the things that I really want right now. Then, when I decide against purchasing the earrings, I need to take that money I would have spent on them (whether $5 or $20) and put it into my savings account for what I really want. This way, I can grow my account while stopping some frivolous spending.
Of course, I don't plan to never ever buy an amazing pair of earrings again but it shouldn't be a habitual thing.
So, in a few steps, here is my new spending plan for my weekly pocket money.
1- If there is anything that I definitely need that week, this is what my money goes toward first
2- If there is any money left over after my needs are met, I can keep it with me for possible spending
3- When (and it's not an 'if', it's a 'when') I see something I have to have, I will walk away from the item and give myself at least a day to think about the purchase.
4- After I am done thinking about whether the purchase is worth it or not, I will
A. Make the purchase and NOT feel guilty
B. Take the money that I would have spent on the purchase and place it into my savings for Italy
How does that sound? I think it sounds like a fabulous plan. Of course, actually sticking with it will be another story but life is all about learning. So I'm definitely giving it a go.
Do you have any pocket money saving tips? Please share if you do!!
Sara
http://kariehill.com/blog/
So, a friend and I were talking Monday night. I was telling her about the funds I had saved for my Italy trip in April and she was giving me advice on how to save more money.
It's confession time. I LOVE to spend money. I mean, I do save, that is one thing that I've always done. I have a 401K, savings account and a CD but the money that I actually get, I LOVE to spend. If I go into a store and see an amazing pair of earrings, I HAVE to get them because, who knows, they might be gone tomorrow....
Yea, that's me. One thing that my friend mentioned was making saving something to look forward to, just like (at this particular time) I look forward to finding that great pair of earrings (or piece of clothing, or makeup, etc). For example, if I see some great earrings, I need to WAIT at least a day before purchasing, so I can really evaluate my desire for the earrings and weigh the cost of them against the things that I really want right now. Then, when I decide against purchasing the earrings, I need to take that money I would have spent on them (whether $5 or $20) and put it into my savings account for what I really want. This way, I can grow my account while stopping some frivolous spending.
Of course, I don't plan to never ever buy an amazing pair of earrings again but it shouldn't be a habitual thing.
So, in a few steps, here is my new spending plan for my weekly pocket money.
1- If there is anything that I definitely need that week, this is what my money goes toward first
2- If there is any money left over after my needs are met, I can keep it with me for possible spending
3- When (and it's not an 'if', it's a 'when') I see something I have to have, I will walk away from the item and give myself at least a day to think about the purchase.
4- After I am done thinking about whether the purchase is worth it or not, I will
A. Make the purchase and NOT feel guilty
B. Take the money that I would have spent on the purchase and place it into my savings for Italy
How does that sound? I think it sounds like a fabulous plan. Of course, actually sticking with it will be another story but life is all about learning. So I'm definitely giving it a go.
Do you have any pocket money saving tips? Please share if you do!!
Sara
Thursday, January 12, 2012
Aaaagggghhhhh AirFare!!!!!
A friend and I are planning a trip to Italy in April. Well, technically, we aren't planning it since we are going with the tour group Contiki and they are handling all the planning (thank the Lord). Anyway, our travel agent gave us the airfare prices thru Contiki yesterday and I almost flipped out. It was over $1,000 for a round trip flight. While I suppose in reality that isn't a lot, to my non-traveled, southern girl, save pennies brain, it was a HUMONGOUS amount.
I sent the information to my friend who was going with me and she promptly went to this site to compare tickets. We were excited to see that they were around $150 cheaper on this site than thru the travel agency. I was very happy.
But this morning, I contacted our travel agent only to find out that we would be returning via Venice, Italy, not Rome. When I began looking up flights from Venice to Atlanta, GA, it was like my head exploded!!! One way was $1,618!!!!!!!!!! Once I began adding up how much it would cost if we didn't use the travel agency and instead booked our own flights, it was OVER $2,000. Which is more than the trip itself costs!!!
To make a long story short, we are going to use the travel agencie's rates.
I guess the point I mean to make is this: 1 - If you are going somewhere either by yourself or via a travel agency, then you should DEFINITELY check out this site.
2- But don't be surprised if the travel agency can get you a better deal!
Of course, this is only for our trip. On a different trip, this story could have turned out differently.
More on my up-coming Italy trip (and the trials of the money it involves) will come later.....
$ara
I sent the information to my friend who was going with me and she promptly went to this site to compare tickets. We were excited to see that they were around $150 cheaper on this site than thru the travel agency. I was very happy.
But this morning, I contacted our travel agent only to find out that we would be returning via Venice, Italy, not Rome. When I began looking up flights from Venice to Atlanta, GA, it was like my head exploded!!! One way was $1,618!!!!!!!!!! Once I began adding up how much it would cost if we didn't use the travel agency and instead booked our own flights, it was OVER $2,000. Which is more than the trip itself costs!!!
To make a long story short, we are going to use the travel agencie's rates.
I guess the point I mean to make is this: 1 - If you are going somewhere either by yourself or via a travel agency, then you should DEFINITELY check out this site.
2- But don't be surprised if the travel agency can get you a better deal!
Of course, this is only for our trip. On a different trip, this story could have turned out differently.
More on my up-coming Italy trip (and the trials of the money it involves) will come later.....
$ara
Wednesday, January 11, 2012
Week Two - The Envelope Budget
So, for the past several years I have implemented something I call "The Envelope Budget". Here's how it works
1- I made my budget (all my expenses going out per month)
2- then I figured up how much I needed to save out each pay check in order to get those bills paid each month.
3- When payday comes, I write a check to cash, get all that money and sort it into envelopes (each marked with the specefic bill, how much it is per month, and how much needs to be saved out per check to cover that bill.)
4- Then, when the bill comes, I take the money back out of the envelope, go deposit it into my bank
5- then pay my bill.
My mom says that I am crazy for doing it this way (as in getting the money out and then a few days or weeks later going and putting it right back into the bank) but for me, it's much easier.
If I left that hunk of money sitting in my bank and carried my checkbook around with me (yes friends, I still use a checkbook) I would say, "WooHoo!! Look at all this moolah I have to play with!!!" and then I would spend it and when bill paying time came, I would be very very sad indeed. Trust me, I've done it (on accident) before. It was not pretty.
That is my way of budgeting. It works for me although it may be somewhat archaic.
Does anyone have any budgeting stratagies they use that may be weird to others? I'd like to hear them.
If you have any questions, don't mind asking.... =)
$ara
1- I made my budget (all my expenses going out per month)
2- then I figured up how much I needed to save out each pay check in order to get those bills paid each month.
3- When payday comes, I write a check to cash, get all that money and sort it into envelopes (each marked with the specefic bill, how much it is per month, and how much needs to be saved out per check to cover that bill.)
4- Then, when the bill comes, I take the money back out of the envelope, go deposit it into my bank
5- then pay my bill.
My mom says that I am crazy for doing it this way (as in getting the money out and then a few days or weeks later going and putting it right back into the bank) but for me, it's much easier.
If I left that hunk of money sitting in my bank and carried my checkbook around with me (yes friends, I still use a checkbook) I would say, "WooHoo!! Look at all this moolah I have to play with!!!" and then I would spend it and when bill paying time came, I would be very very sad indeed. Trust me, I've done it (on accident) before. It was not pretty.
That is my way of budgeting. It works for me although it may be somewhat archaic.
Does anyone have any budgeting stratagies they use that may be weird to others? I'd like to hear them.
If you have any questions, don't mind asking.... =)
$ara
Friday, January 6, 2012
Revamped Budget - The First Week of 2012
I officially set my 2012 budget on Saturday.
It's been an ok week. I've taken my lunch three days (and ate out two days).
I haven’t used my credit card AT ALL this week (except I will be using it to purchase gas this afternoon because I earn points) which is a MAJOR accomplishment.
I used my weekly spending money wisely and have $4 left in my pocket =).
I did forget to hold out my $25 for the money market account I am saving up to begin but that’s ok, I’ll be sure to hold it out next check.
I was able to purchase two birthday gifts for a party I am attending tomorrow for $5.35 here. It does look a little hillbillyish but it is very cool and has some great stuff at inexpensive prices.
So, that is the highlights of my first week into my new budget.
It’s hard. Every time I wipe the slate clean and begin again it’s hard. I have gotten so used to pulling out a credit card and covering non-necessities that I have to begin rethinking what my necessities really are.
So, how is your budget for 2012 coming along? I’d love to hear how your first week went.
$ara (get it, it’s a money symbol – yes, I know I’m crazy)
It's been an ok week. I've taken my lunch three days (and ate out two days).
I haven’t used my credit card AT ALL this week (except I will be using it to purchase gas this afternoon because I earn points) which is a MAJOR accomplishment.
I used my weekly spending money wisely and have $4 left in my pocket =).
I did forget to hold out my $25 for the money market account I am saving up to begin but that’s ok, I’ll be sure to hold it out next check.
I was able to purchase two birthday gifts for a party I am attending tomorrow for $5.35 here. It does look a little hillbillyish but it is very cool and has some great stuff at inexpensive prices.
So, that is the highlights of my first week into my new budget.
It’s hard. Every time I wipe the slate clean and begin again it’s hard. I have gotten so used to pulling out a credit card and covering non-necessities that I have to begin rethinking what my necessities really are.
So, how is your budget for 2012 coming along? I’d love to hear how your first week went.
$ara (get it, it’s a money symbol – yes, I know I’m crazy)
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