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
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