Freedom With Money

Our goal at the beginning of the year was to get out of debt. Completely, once and for all. We have dreams for our family. Houses, College for our kids, Giving to others.

Military to Civilian change, job changes, moves, a son with special needs all derailed us, financially.  We started using bits and pieces of Dave Ramsey's system.   We used a Dave Ramsey budget format to track where our money is going. We have started using the Debt Snowball.  You can read more about that here.

Another big change we are doing is using the Envelope System. Check that out here.  I love, love, love, the envelope system! I really didn't figure I would like it.  I even doubted it would work and I definitely didn't realize the freedom it gives me!! Imagine that! A system of assigning and budgeting and making money go in a certain place is actually freeing instead of spending willy nilly on whatever I wanted and then having "OOPS" moments when we run out of money before the month is over!!!  I now don't have to feel guilty about saying "Let's go out for ice-cream" Because I have money set in our "Entertainment" envelope.  I don't have to stress or worry about "Oh the kids need new jeans! Where's that money going to come from?" because I already have money stashed away in the "clothing" envelope.

 I looked at our budget and decided 10-15 things that were important to us as a family. Like Christmas money and  yearly car registration and school supplies.  Doesn't everyone cringe every year in August when you have to pay those school dues and buy all those supplies?  I don't! Because in August I will have enough saved up to not have to worry at all about where it's going to come from. I'm going to have 2 kids in all day school this next year, I need all the help I can get!   We are starting to sloowwwllyyy build an Emergency Fund.  It's tough some months. We don't always have a lot to stash away so we just pray we don't need those funds soon.   We are able to give like never before!!  Thank you gifts. We are able to do surprise dates and give to each other, as husband and wife,  Taking my family out to lunch to thank them for all their help the past year! We are able to do all that stuff now because we have a plan!

Another big step we made about 18 months ago was to not use credit cards. In fact, I don't even know where one of our cards is, even.  One is stashed in a hiding spot and the other... yaa I'm not sure where it's at. I know it's in the house somewhere. We do not keep them on us. It's too tempting to use.  If we needed or wanted something and we were out of money until payday, we waited.   We don't buy things unless we have the money in our hands!  Things change. Situations change. I can't go out and spend money on something when I don't actually possess the cash.  It's just not smart!

We encountered a situation a few days ago where we needed to get a rental vehicle due to ours needing to be in the shop.  They wanted us to use a credit card.  I refused.  I specifically had money set aside in our checking account to pay for it. I didn't want to add onto our credit card (ok..and I couldn't find it, haha) but honestly, it was more because of the fact we made a commitment to not use a credit card!  Just to pay with my debit card..which had the money... I had to provide them with utility bills, drivers licenses, account numbers, and all kinds of nonsense. Just to pay them with the cash I had in my account!  I get it, it's hard. Not everyone has that cash stocked away... Neither did we!!! We've waited almost a year to get our car fixed until we did!  We waited almost a year to get our vehicle fixed so that we could save up the money instead of just putting it on a credit card. I drove around for almost a year with a cracked windshield and dents all over my vehicle due to hail.  It's a commitment!

This is part of how we survive on one income.  It's not always easy. We mess up. We don't always get what we want when we want it but the pay offs for following this plan and the payoffs for sticking to it are HUGE!

Some months are easier.  Some we struggle a bit more but it's a commitment we've made. To live better. To set an example for our kids.

The freedom is amazing!  Being on a cash only basis is amazing! We've bought our kids bunk beds. Cash. We've paid off a credit card. Cash.  We've payed off Hubs truck. Cash.  I bought myself a fun Kindle Fire. Cash.  We've bought a new bed for Hubs and I. Cash!   It's an amazing feeling!

If you'd like more information on Dave Ramsey's system you can check it out here!

If it seems overwhelming and you don't know where to start, my suggestion, Just start.  Sit down, pour through your bills, see what you can cut or change and make a plan!