I had a friend Becky who a couple years ago, she started breaking out her cash system and I would occasionally hear "That's not in the budget," from her when I'd ask her to do things. As everyone does when your own self-deprecating behavior is slapped in your face by someone who chooses to make responsible, healthy life changes, I thought "Wow, she's weird!" But she wasn't. She was smart, she was responsible and she's nearly debt free today, including her mortgage (in progress), in her early 30's.
In the early summer I decided that was it, I was going to do something about my problem of almost literally burning my money and learn how to be responsible with my money, so that I could live like I made the amount of money that I do! I looked up when the next Dave Ramsey - Financial Peace University (FPU) class was in the metro area and signed up! The class is roughly $100.00 dollars for the 10 week class, all the materials and a lifetime membership where you can come back for a refresher at any time. Get this irony, I over drafted on my FPU purchase! If that wasn't an indication I needed some direction, I don't know what was!
In early September I started FPU at a church in Apple Valley. I wasn't even going to wait until Hosanna! offered it or someone I knew was leading it. This was a no more excuses goal for me and I was taking it the first opportunity I had and was going to give it everything I had. I had reservations about it as I wondered if it was just some get rich quick deal or something crazy like that. However, I made the commitment that I was going to give it everything I had for the 10 weeks and if it was a fail, nothing lost really, except the $135 I ended up paying for the materials. I have been going to FPU now for only 5 weeks, and I cannot tell you how much it's changed my life!! I was so very skeptical, but I am working on "baby step number two" already, pay off all your debt, and after next month, I'll be down to only owing on student loans. That's roughly $6,000 dollars in credit card, line of credit and medical bills paid off in 5 weeks, as well as $1,000 in the bank as an emergency fund!! My truck is paid off (including the $1,700 loan for the transmission last year), and I feel so crazy free and in control it's hard to explain. I am using the cash system and only paying for all purchases besides bills that are automatically withdrawn with cash. I have a budget for everything that I need AND want, and allocate that money accordingly every 2 weeks and take out all the cash I'll need for the 2 weeks for those things. When the cash is gone, you're done spending. I KNOW! Crazy phenomenon.
People think that living on a budget means that you don't get anything fun anymore, and that's so very far from the truth! It means that you're free to spend your money how you have budgeted without guilt or fear, because you actually have the money to spend. I know mathematically I have not started making any more money in the last 5 weeks, but I feel like I got a massive raise since as I am now deciding where my money goes versus wondering where the hell it all went. I have money set aside every week for going out to dinner, for entertainment, and get this I even have a clothes budget, so I am definitely not living the beans and rice life living on a budget that people think you do. A huge way that people get themselves into trouble with money, particularly those of us who have plenty coming in, is that we are not emotional about our money (well, until it's all gone). Money barely exists in our world when we use plastic for everything. That's how it was for me. It was so easy to spend money on something that I wouldn't give two shits about in a couple weeks when it was just a quick swipe of the card. However, now that I have a budget and buying something means having the cash in my hands and giving it to someone else, I really think "Is this worth it?" I LOVE IT! I am totally a nerd, so I know that doesn't sound exciting to some people, but to be in control and not feel impulsive is an amazing feeling! I now have an emotional connection to my money and really evaluate where and how I want to spend it.
As a result I am able to put money every single paycheck into savings, I am able to pay all my bills (and more than just my minimal payment), I am able to do the fun things that I love doing, and best of all, I am able to give over 15% of my income! As a Christian I have always wanted to be able to give freely with my money. There are so very very very many people who are not blessed like I am, and I feel because of that it isn't nice to give, it's my duty to give! However, before, I would get the the end of paying bills and living expenses, and I a) wouldn't have anything for savings and b) I surely didn't have 10% left over to give to myself, let alone to my church or other areas where I would like to give! One of the most impactful things that Dave said in one of his talks about that very topic was that "That's because your budget is upside down!" Well duh! You give first. I have heard that said many of times before that you give off the top, ect., ect., ect., and always thought "Well yeah, that's all good and fine, but I need to pay my bills." Well hello yee of little faith! I have seen with my own eyes God take care of me on way grander scales than with my money, why did I think that I needed to see it all make sense logically in this instance before I would trust Him!? So... I took the leap of faith and shockingly... it not only works, but it works way better then when Brooke was in control! Duh...how many times a day does that need to be proven to me? Imagine what this world would be like if everyone was able to live in financial peace and give freely? I think that would be pretty dang awesome! Broke people can't feed the homeless, and I have no doubt in my mind that it is our duty to take care of those less fortunate than us. A foolish man devours all he has. I was done being foolish. It wasn't a math problem, it was a me problem! I was done being the victim and I was ready to start making choices that would affect my future!
FPU is NOT by any means complicated. Dave talks about the 7 baby steps, but it's even easier then that! You get $1,000 dollars in the bank for emergencies, set a budget, and pay off all your debt using the "debt snowball," putting all your payments from the previous debt into the next debt until you're paying way over the minimum payment on your bills. For example, I am to the point now where I am paying $350ish dollars a month on a $67 dollar student loan bill. No wonder I felt like I was going to be paying on my degrees well past the age where I would even be using them! I was paying $67 dollars a month on a bill well into the thousands. Doesn't take a rocket scientist to figure out that's dumb! But hey, the loan companies we willing to give me that payment, why wouldn't I want to take advantage of that!? Well, because who wants to be a slave to a lender for the rest of their damn life? Not this girl! It was actually quite funny, when I called to cancel all my credit cards, one of the guy said "But ma'am this card is connected to your checking account to protect you in the event of an overdraft, what will you do now?" I said "Not overdraft." That was a foreign concept to him.
One of my favorite things that Dave always says is that we have to live like no one else, so that later on in life we can live and give like no one else! It reminds me of my Grandma Kelly. My Grandpa Kelly was incredibly financially smart throughout his entire life. I know that my step-mom and my uncles didn't live an extravagant life growing up, but they also always had everything that they needed. Now, as a retired man, my grandpa is very much living like no one else! Every year my grandpa is able to take our entire family, aunts, uncles, cousins, grand kids, great grand kids, girlfriends, boyfriends, ect., and he is able to pay for an entire family vacation for an entire week for everyone! Because my grandpa made sacrifices and didn't give into his every financial whim, he is able to leave a legacy for his family and create memories for himself and our family that couldn't be traded for all the money in the world. THAT right there is a life that I want. Especially if all it takes is just making a plan and sticking to it.
So yeah... I would highly suggest looking up the next soonest Financial Peace class and taking it! It will no doubt change your life! Check it out: http://www.daveramsey.com/fpu/classfinder/#center=44.944401,-93.0933. There's classes starting as soon as January!! :)











