No Need to Cringe When You Hear this "F" Word Anymore

Do you cringe when you hear the "f" word?  No, I'm not talking about that "f" word, friend.  I am talking about this "f" word:  finances.

One of the greatest areas of achievement we've had as a couple this year is in the finance department.  This tends to be a touchy topic and can make people very uncomfortable.  I am here to tell you, it doesn't have to be.  If you're feeling stressed about money and unsure how to make a positive change, there is a way out.  You'll need to be committed and patient, but I promise if you stick with it and have some discipline, you'll see results.

For years, we thought we were decent money managers, but after reading the Total Money Makeover, we realized we had a lot of room for improvement.  When my husband and I made the commitment to follow Dave Ramsey's plan to financial freedom, we didn't know how working through the steps would impact our lives.  It has been nothing but positive.  There have been fewer money-related arguments and our anxiety level has been greatly reduced.

Having a budget and following a financial plan doesn't mean you have to stop having fun.  We can't always do everything we get the itch to do, but we've still had plenty of good times along this journey.  We've had date nights, vacations, and plenty of fun outings with the kids.  The only difference now?  We've budgeted for them!

We are following a new rule:  if we don't have the cash, we don't buy it.  This is one of the hardest parts of the project.  A new TV has been on our list all year, but the time to buy hasn't come yet.  I am sure the day we finally get that new TV, we'll leave feeling accomplished and happy, rather than guilty and stressed about where the money to pay for it will come from.

This all stems back to my word for the year:  discipline.  Patience and the ability to say no will go a long way.

We've worked hard this year and made significant progress through these steps.  In a few days, we'll have fully funded our emergency plan and be moving on to the next steps to financial freedom.  Our ultimate goal is to have our home paid off by the time our oldest heads off to college.  We've got ten years to get there, but by staying committed to our plan, I'm confident we can do it.

It is amazing to have a clear plan and be working toward very tangible goals.  If you struggle with money, please do yourself a favor and read Dave Ramsey's Total Money Makeover.  It is certainly not rocket science, but reading through it and creating a plan that works for you will be worth your time.

My husband and I wish we would have started this years ago, but on the positive side:  better late than never.  Let me know if you take the plunge and share your success stories right here at 2015:  The Year to Get Sh*t Done.  

You Guys...The Budget Rocks!

I don't have much time today, as I'm completely obsessing about this new business idea I have and cannot stop making notes and researching.  I'm also putting together a Children's Expo for From Cover to Cover and need to focus on what needs to get done, but I am just so EXCITED!  It may not all work out in the end, but I am happy and having fun.  It's a win in my book!

I just wanted to share a bit about the budget today.  This is our first month and, while it's not perfect, it has been amazing.  It sounds so silly, but each time I get a bill I refer back to my budget page, write in the amount (we estimated beautifully this month), and pay it.  I know the money is there, as we have accounted for it, and it's just, well, done.  The best part?  Most of our bills have come in a bit under what we budgeted, so there should be money leftover to apply to our debt.  Huh, I never knew budgeting could be fun.

So, what improvements can we make?  Figuring in the little things.  For example, Valentine's Day costs.  We don't have that budgeted anywhere.  Though it's not much money, we need to account for it within our regular budget.

We are also learning the ins and outs of the irregular income budget.  This is necessary due to my husband's career in sales.  Commission varies by month, so we must prioritize our spending and list it in order on the budget form.  It has been tremendously helpful and I'm confident we will improve with this component each month.

We're on the right track and it feels great.  It's almost time to have our meeting about next month already.  It's exciting to finally have this plan in place.  We have been so cognizant of our spending these past few months and it has helped us weed out unnecessary purchases.  Our goals are set and we will achieve them by budgeting and having control of our money.

If you're hesitant about creating a budget, I encourage you to give it a try.  Life becomes so much less stressful when you have a visual plan to follow!

Financial Focus

January marked the beginning of our financial journey following Dave Ramsey's principles.  A few weeks ago we set up our first budget and now that February is here we are officially putting it to use. I think I've shared before I always felt we did a pretty good job handling our money, but my eyes have been opened this past month.  Being held accountable for every dollar you spend changes your perspective a bit!  We definitely have room for improvement.

For two months I have written down each purchase we've made.  I divided them up into categories and added the totals up at the end of the month.  This gave me a good idea where our money was going and helped us plan our budget.  December was a very big spending month, so January gave us a much better picture and that's what we have based our budget off of.

Our budget is zero-based meaning every dollar is accounted for.  As we work through the baby steps created by Dave Ramsey any extra dollars will be filtered to meet our goals in each step. Right now we are on step 2:  paying off all debt (except the mortgage).  Therefore, at the end of February, any money leftover will be applied to our debt.  The ultimate goal?  To have money left over to apply to that debt.  If not?  To not spend more than was brought in this month.  

It is much easier to live within our means when we put the credit cards aside and check in with each other frequently.  Right now there is little room for splurging of any kind, but that's ok.  It is going to take discipline, sacrifice, and communication to meet our goals, but it will be worth it.  

Moving past the thought of "I deserve this" or "Just this one time" really helps us stay focused.  Just because we want something doesn't mean we need it.  America thrives on instant gratification and it may be difficult to wait.  Rewiring our brain to think differently can be challenging, but by focusing on the necessities and forgoing the wants, we are setting ourselves up for financial freedom.  This is a great lesson to model for our children and we hope to teach them the value of money and how to make financially responsible decisions from a young age.

Wherever you are in your journey, I encourage you to read Dave Ramsey's Total Money Makeover.  So many of us live with an enormous amount of stress stemming from, you guessed it, money.  Life doesn't have to be this way and the principles in this book really do make sense.  We are just a few of the millions of people who have heeded his advice and taken steps to improve our financial situation. It is certainly nothing fancy, but it makes sense.  

It may sound odd, but my husband and I are excited about this journey.  It is refreshing to have goals and a concrete plan to work on together.  Our lines of communication have improved greatly and we feel really good about the future.  We're ready to get it done in 2015!

The Word on the Street

Intentional Living.  This is a very common trend in many of the books I read and blogs I follow.  It is a way of life where little time is wasted, the small things matter, and we are cognizant of our choices and how they affect our families and ourselves.  I love the buzz behind this concept and am doing my best to adopt this lifestyle.

So often we let our every day responsibilities consume the majority of our time.  I am sure we can all count numerous missed opportunities to just sit down and enjoy the precious little moments because we felt we didn't have time.  Our daily responsibilities seem to overwhelm us and may rob us of the opportunity to find joy in the small things which play out in our homes each day.

It can be so hard to just pause and be thankful for our blessings.  To watch our children interact with one another.  To listen to the recap of their day or the next great imaginative game they are playing. To sit down and read an extra book, play a game, or just sit, snuggle, and talk.  I know I am guilty and my guess is you are, too.

How do we go about changing our ways?  How do we become more intentional in our every day lives?  To be honest, I'm not one hundred percent sure, but I have a few ideas which may help.

1.  Designate screen-free time each day.  This isn't just about the kids.  Turn off the tv, shut down the computer and tablets, and simply spend time together.  It doesn't have to be an eternity, but even 30 minutes of uninterrupted time together would make a tremendous difference in all of our lives.

2.  Chuck the phone aside.  Much like designating screen-free time, set aside a few hours to put the phone away.  Let the emails, texts, and phone calls go.  They can wait.  If you have to, hide it.  Sounds silly, but as the old saying goes, "Out of sight, out of mind."

3.  Pencil in some family time.  Hit a park, take in a movie, have a game night.  Whatever the case, schedule it in just as you would an appointment or meeting.  Make this time a priority and follow through with whatever activity you have chosen.  Make it a habit to pencil in designated family time each week.

4.  Lastly, engage in conversation.  Ask questions, share stories, keep the lines of communication open.  The best time to do this?  During a family meal and at bedtime.  In our house dinner can be absolute chaos if we don't intentionally ask questions and steer the conversation in the right direction. We are not consistent, though, and need to make it a point to do this each night.  We have learned a lot in the conversations held around the table and in the quiet moments before bedtime.  It would be a shame to be too busy and miss them.

I am going to work really hard to abide by these rules.  My family is my number one priority and I want them to understand this with absolute certainty.  It is so hard to cut out the distractions or take a break from our to-do lists, but our family deserves our full attention.  We owe it to ourselves to slow down and make intentional choices that will benefit our whole family and solidify our relationships with each other.  I want to model valuing people and relationships over technology, to-do lists, and housework.

Go ahead.  Give yourself permission to slow down and enjoy the small things in life.  Those moments will last a lifetime and become our greatest treasures.

  

  

The Budget: Managing Your Grocery Bills

Budget.  Yes, you've heard me say it before and I'll say it a hundred more times this year.  We have created our first budget, which will be put into place in February, and it wasn't nearly as painful as you might imagine.  Eye-opening, yes.  Painful, no.

Today I'm going to touch on one portion of the budget:  groceries.  Outside of our mortgage, groceries by far eat up the greatest percentage of the budget.  While I can't make that number significantly decrease (after all, I am feeding a family of six), I can do my best to stretch my grocery budget as far as possible while still primarily eating organic, non-GMO, and allergy-safe food.

The first and most important step is creating a meal plan.  Each Friday morning I sit down with a cup of tea and plan out the menu for the upcoming week.  This may sound lame, but I enjoy it.  To keep costs in check, I have decided to do at least one meatless meal a week as well as a breakfast for dinner night.  We have also designated a few days to specific foods:  homemade pizza on Friday and soup on Sunday.  That leaves just 3 days a week to fill in.

To do this, I skim through the weekly ads for the stores I frequent.  One way to save money?  Shop around.  I do not do all of my grocery shopping in one place.  It is typically spread out between Target and two local grocery stores.  This gives me my biggest bang for my buck and an opportunity to stick to our organic, non-GMO, allergy-safe food plan as much as possible.

Another money saving tip?  Do all of your shopping for the entire week in one day.  Less trips to the store means gas saved and money as well.  When you have a plan, this is easy to do.  Don't get me wrong, we typically have to pick a few things up during the week, like milk or produce, but having most everything on hand for an entire week saves on impulse buys.

One mental change I have had to make is shifting my focus from spending an allotted amount each week to viewing my purchases as a monthly whole.  Typically I would not want to go over my weekly limit, but when a store has a money-saving deal on items I frequently use, it is in my best interest to stock up if possible.  I'll give an example:  we eat a lot of cheese.  This week it was at least 50 cents less than the everyday price, so I bought much more than I would use in one week.  It was more cost upfront, but if I consider how much I would purchase in a month's time, the savings will work out in my favor.

My last money-saving tip?  Cook.  Eating out is costly and processed foods, in my opinion, offer very little nutrition and are not your best investment.  Home-cooked meals have the most to offer, both nutritionally and financially.  I enjoy cooking, so for me this is the natural way to feed my family.  I love trying out new recipes and fixing our tried-and-true favorites as well.

If you find cooking to be a challenge, I've got you covered.  There are several recipes on my Living Life on the Lane blog that are easy on time, skill, and the budget.  Don't think preparing home-cooked meals has to take hours.  Most of the meals I make take less than an hour (prep and cooking time). The key is to plan ahead, have your ingredients on hand, and plug in your meals to work with your schedule.  Have a later night?  Throw something in the crockpot or prepare a meal the night before so it can be thrown in the oven when you get home.

Spending 30 minutes meal-planning and creating a grocery list will make a tremendous difference in your grocery budget.  It will also help you spend your time more wisely and not stress each evening about what to have for dinner.  It's a great investment and I encourage you, if you don't already, to give it a try.  Soon it will become a habit and you'll be off and running!

  
  

Financial Prep Work

Finances.  How many of you have set goals in this area?  Each year we have good intentions of monitoring our money and spending a little more wisely, but when push comes to shove, we probably don't spend or save our money as wisely as we could.  2015 is shaping up to be the year we finally devise some concrete goals, set our benchmarks, and follow through.

Managing finances is probably one of the most unique journeys a person or couple encounters. Everyone's situation is different and there is certainly no one-size-fits-all method to achieving your financial goals.  There are excellent references out there from Dave Ramsey to Suze Orman, but ultimately you need to thoughtfully consider their advice and programs and create a plan both you and your spouse feel comfortable with.

In preparation for The Year to Get It Done, my husband and I have had many discussions about our current financial situation and the goals we would like to achieve.  We've sifted through all of our accounts, recorded our assets and debts, and devised a plan we feel comfortable with.

We will follow Dave Ramsey's baby steps, but with a little modification.  For example, step one is to create a $1000 emergency fund.  Psychologically it is to help you pay off debt faster and then return to saving because, let's face it, $1000 in the bank doesn't go far.  It provides a sense of urgency.

For us, though, the $1000 is a little too uncomfortable for our family of 6.  This is the way we have chosen to address Dave's first three steps:  have a 3-month emergency savings, pay off our debt (other than our home), and return to saving for a 6-month emergency fund.

One of my favorite sayings is, "To each his own."

In the area of finance, I find this to be particularly truthful.  Each person's current financial situation not only reflects choices made in the past, but also present-day decisions.  For some, poor choices in the past may still follow them today.  For others, present-day decisions may be dragging them down or, if they're lucky, raising them up.  

How we spend and save our money is all personal preference.  Setting goals is imperative to financial freedom.  Per one of my inspirational authors, Tsh Oxenreider, figuring out the why behind the goals is even more important.  I suppose this holds true to any goal we set.

Take the time to thoughtfully consider what motivates you and have your spouse do the same.   Determine how achieving each financial goal will positively impact your family's life.  How will these achievements lead you one step closer to fulfilling not only your dreams, but your life's purpose?

Once you have done this, set the plan in motion.  While there are bound to be bumps in the road, if we have a clear understanding of what drives us and the why behind the goals we've set, we are bound to overcome the obstacles and keep moving forward until we are successful.