Saturday, July 19, 2014

3 things I've learned /// FPU

We are starting our 3rd budget, the Dave Ramsey way. 
What I have learned so far:

1. Budgeting is not a quick thing. The first month we did the whole budget + allocating where the money is coming from took us 3 hours and then several "budgeting meetings" throughout the month. Last month it took about 2 hours. 

What budgeting actually looks like for us:
     -We have a list of things we need to make sure we budget: 
     birthdays, special events, things needed, household fixes
     -We have a budget list for the month that we fill in all our 
     expenses starting first with tithing. 
     -We use a zero base budgeting. You need about $100 buffer in 
     your account, but then from there on, all the money coming in 
     goes somewhere while you're paying off debt.
     -Then we allocate the money. We know how much needs to be
     used, but how are we going to pay what needs to be payed
     -We use the envelope system. I love it. I didn't think I would, 
     but it works. Once the money out of the envelope is empty, it's
     done. 

2. Being in debt is so un-freeing

As of now we have the first baby step which is $1,000 emergency fund and we have payed off 1 credit card. The way the Dave Ramsey plan works it snowballing your debts. So the money we had been using to pay on the credit card will be going to a student loan (the smallest one) 

"The rich rules over the poor, and the borrower is slave to the lender" Proverbs 22:7

3. Stop acting like a child. Just because I want something now doesn't mean I get it. I must work for it. Going to get a commercial (not your mortgage) loan is easy. Loans are big business. Working & saving takes real work on my end. Buying something with money instead of with credit means two things:
     1. It's much more satisfying
     2. I'm just paying for that item, not that item + interest



"No discipline seems pleasant at the time, but painful. Later on, however, it produces a harvest of righteousness and peace for those who have been trained by it" Hebrews 12:11

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