GOT MY HOMEWORK DONE - Day 2 / Financial Peace University

So – FPU has homework.  We were tasked on Tuesday night to do a ‘Quickie Budget’ and bring it back in with us this coming Tuesday.  I used the copy provided in our workbooks and after filling in how much I spend each month on 'the necessities,' I was really surprised to see where I can probably knock off about $110.00 from my normal spending habits.  Oh sure, my rent is a set amount, my water, electricity and car insurance is pretty much the same amount each month.  But my other spending....$200 a month on food, $100 a month on entertainment?  No, I can really cut that amount down by almost 50%.

That’s great news…I can put 50% of that money towards my emergency fund, use 25% to pay extra money on the education loan I took out for my daughter and budget the last 25% as savings toward buying a notebook or netbook.  My computer died and I have to buy a new one for my writing.  However, I refuse to use my new credit card, or even worse, use in-store financing with their outrageous terms so I'll save my cash until I have enough to buy what I want.  

We were also tasked to read chapters 1, 2, 3, and 10 to prepare for next week's lesson – I am halfway through the book already!  I’ve been reading about using an envelope system ~ the leather folder and envelopes were provided in the tool kit I received the first night ~ and it looks very user-friendly.  The concept is so simple that even I, the financial illiterate, understand it.  I plan for and then budget out so much for food, entertaining, car expenses, etc., and the CASH goes in separate envelopes that are preprinted on the front with little boxes.  I simply enter the date, the amount spent, and what the purchase was for.  When the cash is gone, it's gone!  

I will read more about it today and put it in practice as soon as I can.  The idea is to NOT use credit cards but cash only.  The idea is to live within my means.  It will be very easy to note on the outside of the envelope just what I purchased and for how much.  Of course, I’m not sure what I’m supposed to do with the change as the envelopes don’t seal totally closed but I’m sure I’ll figure that out.  Wait…I just looked again and there is a small plastic zip pouch, similar to a mini pencil holder, behind the envelopes.  Guess that's where it goes, huh?

It turns out it was a good thing that I lost my debit card – I’m already much more mindful of my money now that I have to physically write a check (which I hate to do), or go to the bank to get cash before making a purchase.  

Can you tell I’m excited about this?  Me…blogging about money.  Who’da thunk it?

I am giving this everything I have to ensure I succeed!

Until next time....

Money is neither my god nor my devil. It is a form of energy that tends to make us more of who we already are, whether it's greedy or loving. ~ Dan Millman

BABY STEPS – DAY 1/Financial Peace University

I plan on retiring with dignity.


However, with no savings and no financial plan and no knowledge of how to handle money I can never retire.  Hmmmm, not good.


Good thing I have a plan to fix that.


Last night I attended my first Financial Peace University class. As I drove the short three minutes from my apartment to Journeys church, I was feeling a little proud of myself for actually doing something to improve my financial situation but I wasn’t looking forward to the dry lecture I was sure was awaiting me.


What a welcome surprise to be met at the doorway with a smile and a genuine welcome by Jeff Cook, the course coordinator! We spoke for a moment as he explained the program just a bit and told me the course cost. I didn’t have an extra $109.00 (don’t know why I thought it was free – maybe because it was being held in the church); Jeff said, “No problem! Just bring the money in next week” and gave me the entire box of books, workbooks and various tools that we will be using during the next 13 weeks.


It was a fun and informative format.  No dry Ben Stein voice droning on about finance and using terms that I neither know nor understand.  Jeff introduced himself and the course.  Then we all introduced ourselves (I think there were 10 of us).  After that, we watched a one hour video of Dave Ramsey explaining why and how we need to save (there are three reasons).  We took a short break then re-gathered in a small group to talk about what we'd just seen, heard, and learned.  Along with the laughter - we all recognized various aspects of ourselves in Dave's video, there were two ah-ha moments for me.  Definitely not what I was expecting! 

So, what did I learn last night?

I will not be debt free immediately but I will be debt free soon. There are what Dave Ramsey refers to as Baby Steps (seven – count ‘em – seven steps) that will get me started. The first step is to get $1,000.00 in an emergency fund. I think I will be able to achieve this first step in a month by watching every penny I spend.


I haven’t done a budget yet – that comes later – but I think I can cut out a few things that quite frankly, are quick money-suckers. Three things that immediately come to mind are buying wine and lottery tickets each time I go to the grocery store, and going out to eat (which I do too often). I can divert that money into my emergency fund instead of using it as a temporary salve to soothe the loneliness of living alone. Hmmmm, amazing what realizations come out as I write. I wasn’t aware I was doing that until just this second.


Dave Ramsey said in the one hour video we watched last night that saving money is an exercise in character; that wise people save money. At first, I was defensive. I have a pretty decent character I told myself: I don’t lie, cheat or steal. I try to pay my bills on time. I don’t kick dogs or old ladies. Yada, yada, yada. Then I got what he was saying. I have to be proactive, not reactive. That’s a sign of character. The mental discipline it will take to get me from financial embarrassment to financial enjoyment is a sign of character. Another character aspect that just hit me is that I am making a commitment to myself; I am valuing myself by taking care of me now and on into retirement. I think my chin just came up a fraction of a notch….I can do this.


One of the many ‘thoughts’ sprinkled throughout the workbook is “One definition of maturity is learning to delay pleasure. Children do what feels good; adults devise a plan and follow it.” Impulsivity (at which I excel) with its associated regrets (which I always experience) is not a sign of a strong character. However, guilt-free gratification is indicative of my belief in myself, the validity of my goals, and the strength of my self-discipline.


Saving money will not be easy. There are many temptations out there trying to grab my hard earned money. But like the tenants in all the twelve-step programs, I can make it if I start minute by minute making this one right choice, hour by hour of choosing to manage my money rather than it managing me, day by day of choosing whether to be wasteful or wise.


Create an emergency fund of $1,000.00.  Yeah, I'm willing to take this first baby step towards financial freedom. I am willing to take this baby step, and the next one, and the one after that to live comfortably in my present, plan for my future, and retire with dignity.


Bring it on, Dave Ramsey!




Until next time....

Money is neither my god nor my devil. It is a form of energy that tends to make us more of who we already are, whether it's greedy or loving. ~ Dan Millman

The Day Before the Rest of My Life

Wow - I had such good intentions the first day of 2010. I refuse to lie to myself - I have no excuse for not posting. Fear of putting myself out there, being seen in a less than favorable light because of my personal money mismanagement??? Nope, while the statements are true, they are not a valid excuse for not following through on a promise to myself.

This has been one long year of reflection and life changes: identifying my strengths and weaknesses, gaining new and losing old friendships, finding myself again as a woman of substance, learning how to honestly laugh again. I'm no longer a pushover for anyone, my self included. I don't delude myself as to my emotional and/or financial situation ~ the former is fantastic while the latter limps along.

I have met some of my financial goals but not all of them. For example, my bankruptcy is in the final stages - only one piece of paper left to file with the court and I'm done with that. I now have a credit card (not a secured card but a real one!). I'm already budgeting for next year's vacation.

The Day Before the Rest of My Life - what does that mean?  Tomorrow, I begin Dave Ramsey's Financial Peace University.  I've been afforded a wonderful opportunity to learn more about money: how it works, how to manage mine so I can be totally debt free (pay off the huge parent loan I took out for my daughter's college education), and how I can use it to work for ME instead of vice versa.  This is NOT a get rich quick thing but a life style change that I begin tomorrow. I’m excited about learning new things to enhance my financial future.  This is the day before the rest of my (improved finanical) life and I’m very excited to start on this journey to a financially free me.

I’m sure I’ll be revising my financial goals, and how I will reach them, in these next 12 weeks.  I will document them here as a reminder of how I’m progressing and what I'm doing to get where I want to go.

Right now, I'm focusing on these two items for my near economic future (within the next two years):

• Buy a house by my birthday next year. I jumped the gun by looking this year before I was 100% financially and emotionally prepared. I've winnowed out all the "oooh, this would be cool" stuff and identified my basic must-haves. Once I find a home that exactly meets all my requirements, THEN I'll consider some of the nice-to-have things.

• As if ordering my financial universe isn’t enough of a (temporary) emotional and psychological strain, I have been thinking about a career change once my finances are stabilized.  I'm really burned out on what I'm doing. I happened to stumble upon this quote by Joseph Campbell - the writer who coined the term 'Follow Your Bliss" – which reinforced my desire to {do that thing I'm not going to mention here}. "I think the person who takes a job in order to live - that is to say, for the money - has turned himself into a slave." I refuse to remain a slave one dollar longer than I have to.

Long term, I’m concentrating on obtaining a quality of life retirement.

So….there it is.  My financial goals and ideas as they stand today.  


Until next time....


Money is neither my god nor my devil. It is a form of energy that tends to make us more of who we already are, whether it's greedy or loving. ~ Dan Millman