Money Makeover Monday

It's week 4 of Financial Peace University.  We were supposed to make our written budget last week.  We sat down to work on it together, but it didn't go well.  Although we do share the same financial goals, I am discovering that the way we are approaching them is not the same.  I think it's going to be a little tougher from here on in.

Having said that, I feel like I need to take minute to tell you that I was completely humbled by Sister C's story on Friday.  If you missed it, you can check it out here: http://supersavingsisters.blogspot.com/2011/10/financially-fit-friday-our-story.html.  I have, once again, been inspired to push on and not give up.  Having a plan and refusing to give up is the only way to reach your goals!

With that in mind, Scott and I did make a joint decision that will allow us to complete Step 2 of our Total Money Makeover (Pay off all your debts, except your mortgage) within the next 6 weeks.  Scott has been doing a lot of research on our life insurance and discovered that he can cash out the whole life policy he has and purchase a new term policy with similar premiums and much better coverage and payout.  The current cash value of the whole life policy will cover the remaining balance on our vehicle loan and the 2 small family loans we want to re-pay.  Once we take care of those 3 debts, we will be ready to move on to Step 3 (fully fund the emergency fund with 6 months of living expenses).

Where are you on your Money Makeover journey?  Have you started?  Are you at the end?  We would love to hear your story so we can encourage you, offer support, and celebrate with you when you reach your goals.

Money Makeover Monday

It's Week 2 of  "Financial Peace University."

We got our kit this week, and Scott has already converted all the CD's to MP3 format so we can listen to them on our iPod.  I need to go and copy all the notes I took on the copied handouts into the workbook we got so nothing gets lost.

Last week, our first assignment was to create a "Quickie Budget."  We sat down together to do this and I was  surprised and concerned to find out that we have several hundred dollars each month that are not accounted for.  Several hundred!!  On a positive note, we are saving money while meeting our budget and we have a plan to pay off all the debt we have (minus the mortgage) by summer 2012.  Our first debt is a car loan and we have a goal of March 2012 to get rid of that.

This week our homework is easy.  Start collecting credit card offers.  It sounds crazy, but I can see the point. We are supposed to keep track of how much potential debt we've avoided by not accepting any new credit card offers.  We are also supposed to find an "accountability partner,"  someone to help us when we need help to decide whether or not to spend unnecessary money.  Scott and I are fairly good at this, but I think I need to find a 2nd person for me.  (Sometimes, he gives in to me when he shouldn't so I won't get mad.)

Anyone want to volunteer to tell me "No!" next time I try to justify spending money we don't have?

The Return of Money Makeover Monday

It's back - Money Makeover Monday.

Scott and I started a class in North Mankato at a local church last week Thursday.  We decided to invest $100 and sit through "Financial Peace University," by Dave Ramsey.  We've already read the books and started his program as you know from previous editions of this feature, but we've kid of stalled out a bit.  We decided the class / workbook fee was worth it to have 13 weeks of peer support and encouragement.  We will have weekly "homework" to do each week.  I can't wait.

The first week was just an introduction, and our first assignment is to create a "Quickie Budget."  We won't get our workbook until next week, but I'll update you each week on what we have re-learned.  If any local friends want to join the class, I'd love to have you join us.  Send me an e-mail and I'll share details with you.

My question for all of you this week is - Who has a written budget?  Who has a mental budget?  Who doesn't have a planned budget?  I'm just wondering how common a planned written budget is.  Thanks for sharing!