I just got off the phone with the Mastercard folks. We canceled our GM Card today. Only one card left to close. The kind gal on the phone reminded me that I had been a great customer for 8 years and my account was in "good standing". This was the card Cole and I got shortly after purchasing a brand new GM SUV. We had this grand idea that we'd work up a credit in points with this card so next time we'd get a better deal on a new car. In the meantime we'd have a place to go in case of an emergency. Cole's still driving that car. It turns 10 in September. Little did we know that we would cancel the card 8 years later having never used the 2800 points we had collected to purchase another new GM vehicle.
We will most likely never purchase a brand new vehicle again, due to the huge depreciation loss suffered immediately. Perhaps when we've completed Baby Step 6 in the Total Money Makeover we might splurge but until then, I don't need the points. I just want to quit the card. I also feel a little bitter towards GM (Government Motors) after their begging the US Government to save them from their own foolishness. I have always been a "Chevy Guy" but, that just rubbed me raw. Yet, that is not my purpose in writing.
I am struck by the thought that we entered into the Credit Card Scam for security. It was the "In Case of Emergency" fall back. What a joke that is. Credit cards are not any security at all. Follow this with me, We have a money crisis, we're broke, so let's borrow money to get out of this immediate crisis. When the next crisis comes we still haven't finished paying off the first and we get further in the hole. It doesn't work! Check the back of any US Currency. It still says, "In God We Trust!" I've asked the question before but, I'll raise it again, "Where does our security lie?" The Bible makes it clear that borrowing money is a bad idea. "The borrower is servant/slave to the lender," Proverbs 22:7. So relying on debt (credit cards) for security is not the place. Your security can only be found in the one True God. God alone is big enough to sustain us. He gives us His Word (The Bible) to guide us through life. Credit Cards will only make it worse in the long run. And living on credit you won't run very long.
The Bible is clear that rather than being in debt we should save and prepare. The story of Joseph is a good example of God commanding His man to save and store up. God knew the famine was coming and He ordered Joseph to store up food. Sure enough famine came and everyone rushed to Eygpt because Joseph obeyed God and stored up food! When the financial famine comes in your world will you be ready? Don't think your invincible! Financial famine will come to your world. It hits us all at some point. Store up for your financial famine so when it hits you are prepared and don't have to try to borrow your way out of trouble. It doesn't work.
Some of you are ready with your own scripture about not storing up treasures on earth but in heaven. Larry Burkett used to say that the difference between saving and hoarding is attitude. I am not suggesting we hoard and become like Scrooge. Someone like Scrooge "Loves" his money. That would be hoarding. I am suggesting that we take responsibility for our own house and protect it from the coming financial famine by building an emergency fund as Dave Ramsey lays out for us. 3-6 months of living expenses. Dave points out that when the emergency fund is in place and fully funded, it is amazing that suddenly we stop having emergencies. Perhaps we just redefine our emergencies! Imagine life without payments and 6 months of living expenses in the bank. Gentleman, your wife will be much happier! Suddenly the crisis of being laid off from work becomes and opportunity to change your career for the better. Something to stew on. It can be done. It is working for us. Press on in your journey!
Saturday, February 26, 2011
Tuesday, February 22, 2011
Good Bye Cable!!
That's right boys and girls, Cole and I booted cable right out da house! We've talked about doing it for a while now. We have family and friends that go without it and don't seem to miss it too often. When we really sat down and thought about what we were watching, none of it was good for us. Most all of it was garbage. Cole did say she missed Fox News this morning while she got ready for work and I know I'll miss NASCAR in HD (way to go Trevor Bayne!!) but, we must remember the phrase, "Live like no one else so later, you can I live like no one else."
In all honesty this is not going to be easy for us. It may not be permanent but, we really want to get our 3-6 months of living expenses put away. Then we'll see how much we still miss it. We are about half way to our goal. We will be there by the end of this year. I'd like to get there quicker which is why we are going to this "extreme". But, here is the payoff . . . $100 per month. Add to this a couple of other things we cut out and now we have an extra $135 per month. That's an extra $135 to go into the emergency fund every month.
Okay, now I am going to get really honest. When we sat down and looked at our printed out monthly budget, we were looking for $100 more per month. That was our goal. The first thing my mind went to was the giving categories. We were giving more that 10% to our church and we actually talked about cutting back to 10% and getting the money from there. We slept on it. I sought council from a good friend who doubles as a budget coach. We mulled it over for about 24 hours. Here is what we decided. We enjoy giving to God and He has blessed Nicole and I so much that we want to give him more. In the end, we had to remind ourselves that it is all His money. We are just managers or stewards of it. We decided to drop cable instead.
It was my goal when I started writing this blog, to always be honest throughout the journey about our struggles. This is one of those that I am not proud to admit we contemplated but, we made the right call. We may have had to think about it too long but, we got it right. And you know what. . . I sleep good at night! At least when Shelby isn't trying to sneak up on our pillows! Hey, you try sharing a bed with 70lbs of German Shepherd that has night terrors!
In all honesty this is not going to be easy for us. It may not be permanent but, we really want to get our 3-6 months of living expenses put away. Then we'll see how much we still miss it. We are about half way to our goal. We will be there by the end of this year. I'd like to get there quicker which is why we are going to this "extreme". But, here is the payoff . . . $100 per month. Add to this a couple of other things we cut out and now we have an extra $135 per month. That's an extra $135 to go into the emergency fund every month.
Okay, now I am going to get really honest. When we sat down and looked at our printed out monthly budget, we were looking for $100 more per month. That was our goal. The first thing my mind went to was the giving categories. We were giving more that 10% to our church and we actually talked about cutting back to 10% and getting the money from there. We slept on it. I sought council from a good friend who doubles as a budget coach. We mulled it over for about 24 hours. Here is what we decided. We enjoy giving to God and He has blessed Nicole and I so much that we want to give him more. In the end, we had to remind ourselves that it is all His money. We are just managers or stewards of it. We decided to drop cable instead.
It was my goal when I started writing this blog, to always be honest throughout the journey about our struggles. This is one of those that I am not proud to admit we contemplated but, we made the right call. We may have had to think about it too long but, we got it right. And you know what. . . I sleep good at night! At least when Shelby isn't trying to sneak up on our pillows! Hey, you try sharing a bed with 70lbs of German Shepherd that has night terrors!
Financial Peace University
We've been through two classes since my last post. We love it. Dave Ramsey makes money conversations fun! He keeps you thinking and laughing. The package is very high quality. Even the FPU kit they send you is made up of quality items. A hard cover copy of Financial Peace Revisited, Hard cover workbook, a leather CD case containing the audio's of the 13 FPU lessons, and other cool stuff. The class is broken into two parts. The first is about an hour long video of Dave teaching. The second is about an hour long small group discussion guided by 7 questions from the workbook. The small group discussion is vital. It provides a safe environment to share struggles, victories, and to share ideas.
With respect to Dave Ramsey I will not go into much detail on what is taught. Buy his books or sign up for FPU if you want the details. I will tell you this much though. Week one reminded me of the importance of saving. Something my dad tried to teach me in my younger days that I should have paid more attention too. The concept of delayed pleasure. Put something off today so you can have something better tomorrow. Save, save, save and save some more!!! In week two he spoke to my heart about something important to Cole's heart and all women really. Security. Dave talks about building and emergency fund (Baby step 3). For Cole it should be titled the Security Fund. Cole doesn't need to be rich, she just needs to be safe. Having the 3-6 months of living expenses saved up would speak volumes to my wife's heart.
I have learned this last year how important this is to Cole. Her stress levels have dropped significantly in the last year because we have gotten focused and intentional about our money. She feels loved by me when I commit to protect her by having this fund set aside. That is why, (men hear this) I am totally committed to this plan. I want my wife to know I love her. While there are a lot of ways I show my love for her, this is a big one. Don't neglect it. Men, chivalry is not dead. We just need to adjust how we do it!
If you doubt my level of commitment to this process wait for my next post. Dave uses a phrase to sum the next post up. "Live like no one else, so later you can live like no one else."
With respect to Dave Ramsey I will not go into much detail on what is taught. Buy his books or sign up for FPU if you want the details. I will tell you this much though. Week one reminded me of the importance of saving. Something my dad tried to teach me in my younger days that I should have paid more attention too. The concept of delayed pleasure. Put something off today so you can have something better tomorrow. Save, save, save and save some more!!! In week two he spoke to my heart about something important to Cole's heart and all women really. Security. Dave talks about building and emergency fund (Baby step 3). For Cole it should be titled the Security Fund. Cole doesn't need to be rich, she just needs to be safe. Having the 3-6 months of living expenses saved up would speak volumes to my wife's heart.
I have learned this last year how important this is to Cole. Her stress levels have dropped significantly in the last year because we have gotten focused and intentional about our money. She feels loved by me when I commit to protect her by having this fund set aside. That is why, (men hear this) I am totally committed to this plan. I want my wife to know I love her. While there are a lot of ways I show my love for her, this is a big one. Don't neglect it. Men, chivalry is not dead. We just need to adjust how we do it!
If you doubt my level of commitment to this process wait for my next post. Dave uses a phrase to sum the next post up. "Live like no one else, so later you can live like no one else."
Saturday, February 12, 2011
Financial Peace Starts
Tomorrow we begin Financial Peace University. I am very excited to get started. I 've been looking forward to this for a few months now. Also this week Cole and I will be closing out one of our credit card accounts. This leaves us down to just one. We have not figured out exactly what to do with the last one yet. We have several automatic monthly charges tied to this card. Our Life Lock Membership, K-Love donation, Cole's Onstar Subscription, our I-Pass accounts and so on. I am hoping that FPU will give us some direction on how to safely and securely use our debits cards for these transactions. I am sure from what I have heard of Dave Ramsey so far that he'll convince me to part with the last credit card even though we've always paid the balance in full each month.
If you ever get the chance, listen to Dave's radio program. You can find a station near you by going to his website and searching it out. He is generally on from 1pm to 4pm eastern time. I love his very blunt and funny personality. Yet, as blunt as he can be it is obvious that he cares deeply for people. He has made it his mission to help rescue people who are drowning in their debt. Every day I listen on my commute home. I am so amazed at the number of people who are on this same debt free journey. I am also blown away by some of the financial messes people have gotten themselves into.
Cole and I look forward to forming some solid relationships with the other folks in our FPU class. It is so helpful to have others to hold us accountable and keep us on track. We are also enjoying being a part of the Live Free Fellowship at our church. It is a growing group of people all pursuing a debt free lifestyle.
This group hosted a budget seminar at church and the material we used was from Good Sense Ministries. In that material they talk about "Myths of the Culture." One of these myths states that, "Debt is expected and unavoidable." When I think about the last several years of my life, I totally bought into this lie. I borrowed money for cars because I believed it to be impossible to pay cash for reliable transportation. In reality I just wanted a car beyond my ability to pay. I am learning to reject this myth and others like it. I thank God that he has opened our eyes to the lies and is working to liberate us and so many others from the pain & trouble they cause.
If you ever get the chance, listen to Dave's radio program. You can find a station near you by going to his website and searching it out. He is generally on from 1pm to 4pm eastern time. I love his very blunt and funny personality. Yet, as blunt as he can be it is obvious that he cares deeply for people. He has made it his mission to help rescue people who are drowning in their debt. Every day I listen on my commute home. I am so amazed at the number of people who are on this same debt free journey. I am also blown away by some of the financial messes people have gotten themselves into.
Cole and I look forward to forming some solid relationships with the other folks in our FPU class. It is so helpful to have others to hold us accountable and keep us on track. We are also enjoying being a part of the Live Free Fellowship at our church. It is a growing group of people all pursuing a debt free lifestyle.
This group hosted a budget seminar at church and the material we used was from Good Sense Ministries. In that material they talk about "Myths of the Culture." One of these myths states that, "Debt is expected and unavoidable." When I think about the last several years of my life, I totally bought into this lie. I borrowed money for cars because I believed it to be impossible to pay cash for reliable transportation. In reality I just wanted a car beyond my ability to pay. I am learning to reject this myth and others like it. I thank God that he has opened our eyes to the lies and is working to liberate us and so many others from the pain & trouble they cause.
Saturday, February 5, 2011
How We Did It
So February is here and so is the snow. What a storm we got this past week. I've never experienced thundersnow before. The little Toyota Yaris did pretty good in the snow on my trek home on Tuesday afternoon. Not like a four wheel drive of course but better than I had hoped. (Still miss my truck a bit but not the payments!) In April of last year when we sold the truck and bought this little econobox we committed to pay it off ($8500) by the first of the year. We actually came in a month ahead of schedule and I made the last payment in early December. We got the title just after the first of the year. We now own both our cars. On top of that, we are now consumer debt free!! Just the mortgage to go. If you've not read the previous posts I'll tell you that at the beginning of April 2010 we had over $19,000 in debt that we are now out from underneath. By God's grace and a lot of hardwork we got freed up.
Here's how we did it. First we sat down and made the budget. I call it a spending plan. Budget is too much like a bad word. After reviewing the plan we made a couple big changes. We sold the Camaro to pay for the car repairs on the credit card, we traded the truck for the Yaris, and then we lived as cheaply as possible and piled money into the car loan till it was gone. The key to the whole thing was the living cheaply. We did not add to our debts at all. In fact we committed to not ever willingly enter into debt again. Then we changed our habits. We rarely ever ate out. We learned to like the Comcast On Demand Free Movies and did not spend money on movies either at home or the theater. We shopped only at Aldi and Walmart. We did not take any vacations. If it wasn't absolutely necessary we did not buy it. We avoided using our credit cards for anything except fuel for the cars. If this sounds hard, IT IS! But, it is totally worth it. So much so that we have continued this practice in order to build up savings to prevent us from ever going into debt again.
Through Cole's job they offer direct deposit. This is an awesome perk. It allowed us to divide her paycheck into both our checking and savings account. I had her deposit as much as our budget could tolerate into our savings (Money Market) account. The rest to our checking. Kind of like a forced savings program. If we have an emergency we are able to access the money quickly but, I am not as prone to spend it if I first have to transfer it. Now that the car payments are gone we are able to save the payment in our money market. None of this would have been possible without God's continued grace in our lives.
Those that follow Dave Ramsey's financial wisdom will recognize our Money Market as our "Emergency Fund." We are currently working on Step 3 of "The Total Money Makeover" which is to save 3-6 months of living expenses for emergencies. I am relatively new to Dave Ramsey but, Cole and I are enrolled in Financial Peace University at our church and it starts in another week. FPU is a program developed by Dave Ramsey to teach the proper way to manage money. It is a 13 week program being hosted by church's all across the country. Google search Dave Ramsey and you are sure to find his website. Lots of good info there.
So, with 2010 gone we are actually well into 2011 now and Cole and I are continuing to ask for God's guidance and wisdom for our lives especially our finances that He has entrusted to us to manage for His Glory and not our own. Our goal for this year is to complete step 3 and get 6 months of living expenses in savings. This is about $24,000 total. We're almost halfway to that number with what we saved from last year as well as our Christmas bonuses from our work. The only other goal that we have set is to maintain our giving. We have really found the joy in giving to our church and a couple of other ministries. We bumped it up for this year to go beyond tithing (10%). I am excited to see what God will do with this. God has been so faithful and gracious to us. I pray that we remain faithful to him!
Here's how we did it. First we sat down and made the budget. I call it a spending plan. Budget is too much like a bad word. After reviewing the plan we made a couple big changes. We sold the Camaro to pay for the car repairs on the credit card, we traded the truck for the Yaris, and then we lived as cheaply as possible and piled money into the car loan till it was gone. The key to the whole thing was the living cheaply. We did not add to our debts at all. In fact we committed to not ever willingly enter into debt again. Then we changed our habits. We rarely ever ate out. We learned to like the Comcast On Demand Free Movies and did not spend money on movies either at home or the theater. We shopped only at Aldi and Walmart. We did not take any vacations. If it wasn't absolutely necessary we did not buy it. We avoided using our credit cards for anything except fuel for the cars. If this sounds hard, IT IS! But, it is totally worth it. So much so that we have continued this practice in order to build up savings to prevent us from ever going into debt again.
Through Cole's job they offer direct deposit. This is an awesome perk. It allowed us to divide her paycheck into both our checking and savings account. I had her deposit as much as our budget could tolerate into our savings (Money Market) account. The rest to our checking. Kind of like a forced savings program. If we have an emergency we are able to access the money quickly but, I am not as prone to spend it if I first have to transfer it. Now that the car payments are gone we are able to save the payment in our money market. None of this would have been possible without God's continued grace in our lives.
Those that follow Dave Ramsey's financial wisdom will recognize our Money Market as our "Emergency Fund." We are currently working on Step 3 of "The Total Money Makeover" which is to save 3-6 months of living expenses for emergencies. I am relatively new to Dave Ramsey but, Cole and I are enrolled in Financial Peace University at our church and it starts in another week. FPU is a program developed by Dave Ramsey to teach the proper way to manage money. It is a 13 week program being hosted by church's all across the country. Google search Dave Ramsey and you are sure to find his website. Lots of good info there.
So, with 2010 gone we are actually well into 2011 now and Cole and I are continuing to ask for God's guidance and wisdom for our lives especially our finances that He has entrusted to us to manage for His Glory and not our own. Our goal for this year is to complete step 3 and get 6 months of living expenses in savings. This is about $24,000 total. We're almost halfway to that number with what we saved from last year as well as our Christmas bonuses from our work. The only other goal that we have set is to maintain our giving. We have really found the joy in giving to our church and a couple of other ministries. We bumped it up for this year to go beyond tithing (10%). I am excited to see what God will do with this. God has been so faithful and gracious to us. I pray that we remain faithful to him!
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