Cash Flow Planning... isn't that a business form

Cash flow spending, that is an odd thing to consider when we are talking about personal spending. But really smart when you think about it, its not like all of the money comes in at the beginning of the month right. The nerd in me is like YES! But the free spirit in me wonders, can we pull it off, let alone keep going with it. I think yes. If we stay on path.

The funny thing is whenever I would work on the "budget", which was more like a bill list, I would never include thinks like food, clothing, gas. It was just easier that way, kind-of fly by the seat of our pants, if we ran out we ran out. Which I recognize even during that time, that it was out of control. We are working on this budget, and its nice to know that the first few times it is going to be morphing alot... too much for this, oops need more pad here! But that is okay, it is okay to make adjustments, nothing is written on stone tablet.

The envelope system may not work out. My hubby is not comfortable with it, and when I have cash, I tend to spend it faster, weird huh! so I am going to create a more customized check register system that will suit our needs better. To be completely honest, I already kind-of have it in my head, just a matter or testing it out.

Too bad Togni Branch isn't around anymore, they probably had exactly what I was looking for!

Living on a budget!

Budgets, when I think of the word budget I think, no more shopping! Gone are the days of sitting at the Corner Cafe eating a delicious omelet, hot coffee, and looking into the eyes of my hubby as we talk about our week. Living on a budget has always had a negative connotation to it, something like, well we need new tires gonna have to live on a budget...

Luckily over the past year or so I have gotten very insane about balancing the checkbook, and after very early on in our marriage, when I accidentally bounced a check at the local super market I also have gotten in the habit of using a calculator. Still even with those habits in place the word budget strikes fear. I freak out a little when I hear it because the habits were still there, spend every dime leaving only a few dollars till payday.

well hears to the future!

Money & kids

This new vision is something I want to ensure that our kiddo not only knows but that it is a way of life. No student loans, credit cars, saving up for a car and not buying into credit card debt, and maybe just maybe even paying for a house with cash. Doesn't that sound a little ridiculous, I thought so too, however, I hear about it quite often now... now that I have opened my ears to it. We have been told for so long that we must save for a down payment, buy a car with no money down, get a credit card and make regular payments, preserve your credit score, that we know no different. But we are determined to change that for her, to ensure that her life is different, and better, save your money for a car, save your money for that new furniture, be patient and your reward is that your life will never be chained down to another person, and the economy will survive. Because the economy is not dependent upon your credit card, it is dependent upon your ability to spend responsible.

When I think about what I learned from my parents growing up, there is not much to write about. We were very poor, lived off welfare, "government cheese", and other such things. So saving wasn't at the top of the list, if there was a list. Not to say they didn't try, I was raised by my grandparents, and the were disabled and retired, and struggled. But they tried, God love em' Not a cycle I wish to repeat.

Marriage and money? oi!

So we are working on Marriage and money. This topic is quite touchy some say it is the number one reason for divorce, which is very scary considering a future with the person you love is hinged on a checkbook. I don't think so... instead I wonder if it is the lack of communication or a plan concerning finances, and a secure future. How far can we go in a boat without a navigation system, or at least a compass.

One of the topics covered in this lesson was separate checking accounts. I hear about many couples who keep separate accounts, bills, even divvy up household expenses. That concept is something I couldn't see working in our household. I feel like that would also drive separation within the marriage, once you begin to tear a sheet of paper, it is weakened, and soon will begin to further split, maybe into 2 pieces. Now that we budget for entertainment and pocket money, I feel like I get to spend a little more freely, a little more equally (I'm a shopper).

Recently, I also posted our additional paid off debt. I have learned that it is now exciting to not only pay off debt but to close those accounts, checking the mail daily waiting for the letter of closure. I am however resisting the urge to frame them, my child does have friends, and I would like for them to not think that I am completely nuts (or at least know the truth). When I think about our communication style for money, I am happy that they have generally not been screaming matches, and we have been on the same page, however it was the wrong page! We never had financial goals other than, how to spend spend spend, and also finagle being able to run out and buy something that we wanted. With our budget in place I see our path and future, and it does feel secure, even clear.

FPU Quick Update!

We have paid off another credit card! Its so exciting we are on track and going, even in the face of Murphy standing on our doorstep a time or two!

Saving for Wealth.... ok now this is just overachieving!

It really kicks me in the butt to think that if we had put away $100 per month that we would retire with more than a million dollars... I mean seriously people! Why were my ears closed to this very valuable information. Did I miss it. Of course, in my defense, the thought of becoming a millionaire was foreign. I think for most people that is true. Coming up with $100 a month even as a dumb kid fresh out of my families house even when I was completely broke. I think I could have pulled this one out.

The eye opener for this session is the budget, now I already had a little budget, but it was more of a guide to know how I can spend after the bills were paid... ugh wasted time wasted money! Well woulda, coulda, shoulda, lets not dwell and lets not certainly forget. There were lots of things I forgot like little things, however if we are diligent and follow it, I discovered a good amount of money in the fund to pay off credit card debt even faster. This discovery is even after paying the minimums. Now had we been behind on bills there are steps to take that you can still do this, and make it and that is good news.

We just got to keep our eye on the prize, and keep taking these baby steps. Savings, college funds, and making sure that from now the family tree does not have a bank attached. When I think of debt, I imagine a large iron ball attached to my neck dragging me down with a chain that is incredibly long, and wrapped somewhere around a credit card! Someone get those bolt cutters quick!

New concept.... saving for emergencies and purchases! What is up with all this crazy talk!

Saving for emergencies AND purchases! I don't know, that seems foreign somehow. Who plans for emergencies anyhow, isn't that what insurance is for.... oh wait we're not talking about ambulances? You mean put money away so the next time you look at your tires, and determine that they must have made a mistake at the tire shop 8 years ago, and accidently put on racing skids!

I think our idea, and probably most peoples idea of an emergency fund is... pray like mad until something gives, or a loan shark... eh hem I mean loan company comes along and "helps". So here we are at class, and some questions are put forth. What was the last major unexpected financial crisis you face? How would that have gone differently is there was... gasp... money in a savings account?

Well I think the last major one was when I lost my job, our shop, and the car in the same quarter. Well that was quite the zinger, not to say that there was no other crisis, but when I think major that is what appears. So had we discovered Dave Ramsey earlier, and we had a fully funded emergency fund, it wouldn't have been so devastating. You know like being punched in the stomach and just for kicks rip out the carpet from your feet so it was easier to kick you in the ribs cause your flat on your back... oh sorry rambling a little.

Maybe things would have been different altogether, you know saved up cash for the car instead of financing, or at the very least, rather than panic about those events, taken a deep breathe, and thought about the next step, rather than run around like a crazy person.

Now my favorite questions are "dream big ones" you know what would you do if you won the lottery! Well I am a little small town so I am okay with this one: What if you were debt free (except your home) and had $10,000 sitting in the bank just for emergencies? How would your life be different? How would you be different?

Dreams would come true... I would be sitting in my studio downtown, throwing and firing all day beautiful pottery and sculptures, painting on occasion. Selling my art and maybe others too, but at a bargain so that everyone can see it. Then go home wait for my family to come home, cook dinner, and enjoy seeing them, and hanging out. Thinking about this for a moment makes me smile. I get excited, cause in a short time and with these little goals my husband and I have acheived already, I think that this is reality, this can actually happen. This is motivation! This I can do. I would never get a loan again, and in fact when I think about this little dream I start rolling around numbers in my head thinking... how much do I need to put away to make this happen, what can I do to acheive this goal and how long will it work.

This new thought process is funny because when I would think of this before I would think to myself, how can I crunch the numbers for the bank, how can I convince them to loan me the money. This concept of paying cash and saving for things is not extreme thinking anymore, just different thinking. I hear the testimonies on the radio everyday. This is real cause right now it's happening to us, little by little we are progressing from the depths of financial despair to financial freedom.

This is awesome!

Big dose of Financial reality or Financial Peace University lesson 1

Today is lesson one of financial peace university. It was relatively easy to go through, the layout was very nice, easy to use. I had video issues, but learned it was because I had left a ton of stuff on my desktop running in the background.

So far we are off to a good start, the emergency fund is in place. Though we had to dip into it, it is nice knowing that it was there, no panic! We will have to budget tonite and be ready to stay on path.

I had an ah-ha moment today when I was looking at quickbooks... it seems we really eat out alot, now I consider ubakes and as well or anything like that, not fully prepared by me as dining out. it is my weakness.. my solution is to time manage better and to cook better meals, or some that kind of similiar to what we get when we go out. Maybe I will even squeeze in some healthier stuff!

So though tonite will be boring and busy, I look forward to moving through these steps to financial freedom!

Quickie: Acorn Squash!

okay so I heard this tip on one of those cooking shows... I think it was called Lets Cook or something like that on create tv . Anyhow, focus... he was cooking a butternut squash in the microwave. Now I have always cut it in half put it in a bowl of water, cover it and cook, just like the directions, however this guy left it whole, stabbed it a few times with a knife and put it in the microwave.

So tonite I tried it... but I only had an acorn squash, and to my surprise it worked. I cooked it about 10 minutes but probably could have gone another 5 minutes, as I had some hard spots. I pulled it out and cut it in half and scooped the seeds, and scraped it into a bowl, it was pretty fast and seeds practically fell out.

This worked perfect if all you wanted was some mashed squash in a hurry. However if you were going to do something else with this or make some yummy stuffed squash rings then I would not. I do not think it will save time in those instances, plus you don't get that toasty roasted flavor that you can get in the oven or on a grill.

All in all, it was good!

Financial Peace... the experience

Dave Ramsey has been a blessed discovery in our lives, and during veterans day, they gave a way to all veterans a free 16 week course to the Financial peace online class! My husband and I are both veterans of the United States Marine Corp and I am excited to start this session.

I decided that I will be posting my experience of taking this class on this blog, now I won't be posting the class, however I will be posting the experience as I process this new direction in our lives. I am excited that we will be able to teach this to our daughter so that by the time she becomes an adult, she will have a strong foundation to begin her life.