Question for Dave Ramsey followers

[Wyndie]

So I just finished reading The Total Money Makeover and dh is reading it now. He wants me to have a budget drawn up by Thursday so we can start our Baby step 1 then. I have a few questions if you don't mind indulging me here. I read all the recent threads on DR but don't see an answer.

 

DH's truck is on it's last leg. Not kidding... we've had it for 14 years and it was used when he bought it! We live out in the boonies and he needs a vehicle. We have no, I mean NO saving so it's not like we could even put a downpayment on something. We have no car payments and are not interested in having one. We use my van for most things but days that I need it, he has to take his truck to work. All that to ask if I should budget for a vehicle while also saving the emergency fund? If so, how do I know how much to set aside for that vs. putting it in the emergency fund? Or do we just use the emergency fund as a downpayment when the time comes? He will need another vehicle before we have enough saved up for even some old clunker. We have significant debt and will be paying that off for a very long time I suspect. What do we do about the vehicle?

 

Do I need more than just that one book to understand everything I need to do? We can't afford the classes offered at the local churches but I can get books at the library I'm sure if I need to read up on something else. What other reading/info do I need to be successful?

 

DH is retiring next year so we feel tremendous pressure to get out of some of this debt... which is good really b/c if we didn't have that pressure we wouldn't be quite so motivated to change.

 

Thank you for any help! :)

[....]

All that to ask if I should budget for a vehicle while also saving the emergency fund? If so, how do I know how much to set aside for that vs. putting it in the emergency fund? Or do we just use the emergency fund as a downpayment when the time comes? He will need another vehicle before we have enough saved up for even some old clunker. We have significant debt and will be paying that off for a very long time I suspect. What do we do about the vehicle?

 

Do I need more than just that one book to understand everything I need to do? We can't afford the classes offered at the local churches but I can get books at the library I'm sure if I need to read up on something else. What other reading/info do I need to be successful?

 

Thank you for any help! :)

 

Hi! I have been on TMMO for 2 years now. There is a subscription service through DR's website www.mytotalmoneymakeover.com for about 10 bucks a month. I use that service - there's budgeting software, podcasts, goal trackers, debt trackers and very active forums - where you can ask your debt questions and get good answers from people who've been through the baby steps. If I were you, I would use his subscription for a month or two and then cancel if you feel like you've got a handle on things. It is a gigantic lifestyle change-and people think you joined a cult. :D

 

As far as your car replacement fund. I would begin saving now - while you're working on your EF. Is there any way you could save up about $2,000 and buy another used car for him to get to work with? We paid $2,000 for our beater and it's in great condition. They're hard to find, but they're out there. Also, if he is retiring next year, can you guys go down to one car for a year?? No insurance, maintenance costs, etc for a 2nd vehicle...

 

As far as getting through Baby Step 1, Dave says to sell everything that's not nailed down. That's how a lot of people jumpstart their baby steps (that's how I did it). We also went down to 1 car for about a year - and that really helped. Go through your bills and cancel as many things as possible, lower your insurance, lower cable (or cancel cable), stop memberships, etc. Just anything that you can cut out. Remember, your goal is to get out of debt as fast as humanly possible.

 

You can do this!! We were debt-lunatics a few years ago (well, my husband was - he he he). We started off with no savings and about $80,000 for Baby Step 2. Now, we're almost finished with BS2 and we're starting BS 3 next year. Also, remember...the more debt you have, the harder it is to start, but the easier it is to get out of debt once you get going. If you're used to paying a giant chunk of income for debt payments, all that income is going to free up over the course of BS2. By BS3 and 4, you're going to have a LOT of disposable income to throw at paying off your house.

 

Good luck! I would go onto DR's forums and ask some questions. You can use the subscription and then cancel after a month - in fact, I think he had a free trial on there at some point, maybe he still has that. If you can listen to his radio show, it's really encouraging also. There are people on there who dig themselves out of like $600,000 in debt on $70,000 a year. Some of the stories are incredible!

[Pamela H in Texas]

Wyndie,

 

Get the $1000 EF. Most people can do this in about a month. THEN, save up, as quickly as possible, what you'll need for a replacement vehicle. Think beater and cheap. Then get to Step 2.

 

Under NO circumstances will you PLAN to use your EF. It is for EMERGENCIES. Emergencies are things you do NOT know are coming up. Everything you KNOW about, you PLAN for.

 

I highly recommend looking at the Step 1 chapter again. Additionally, for a free option, you might look at the Yahoo Group. They are GREAT support and can help you think through things.

 

HTHs,

[Angie in VA]

So I just finished reading The Total Money Makeover and dh is reading it now. He wants me to have a budget drawn up by Thursday so we can start our Baby step 1...

 

I can't get past this. The first thing Dave would tell you to do is to make your budget TOGETHER! We went through FPU last year and as things change, we continue to tweak our budget. (Ds made the all stars team, so we have expenses not budgeted for. For ex: the all stars uniform, more gas to drive to 2 weeks of daily practices, more gas needed to drive the 140+ mile round trip to the district tournament's location for a week, more pix, etc.) It's a team effort. We have to do it together. Dave does not waver on this. I'm *not* bashing your dh for having you draw it up. You have to start somewhere, but he needs to be involved in the process!

 

As for the vehicle situation, you've gotten good advice. Get your EF in place and go to one car if you have too. Not fun, but sometimes necessary. Then save for a replacement. Our first step is always to PRAY for a replacement! ;)

 

And last of all: beans and rice and rice and beans! Really.

Edited June 29, 2010 by Angie in VA
clarity

[2squared]

If you don't have enough saved for a beater by the time you need it, I would seriously consider going down to one vehicle for a few months until you can save the money. A little pain may help with motivation.

 

We bought a truck for $2500 this last year. It's old and looks it, but it gets the job done without putting us into debt.

 

I refuse to have auto payments again. I feel so free and in control without them.

[Granny_Weatherwax]

With all due respect to Pamela, not everyone can save the $1000 in a month. DH and I couldn't; it took us about 3. I agree with the PP who said to hold a sale and sell anything you can. This will help jump start your EF and possibly pay off some of your smaller debts.

 

Do not plan on using the emergeny fund for anything other than emergencies. The EF is to cover things like broken hot water heaters.

 

I would counsel you to not buy another vehicle. If your DH is retiring in a year are you going to need two vehicles? I think the better course of action would be to pay off as much debt as you can between now and his reitrement. I don't say this lightly. We recently lost our second vehicle and became a one car family. We have three people working (one with a crazy anytime-of day-or-night schedule) and we are managing. Is it fun? No. Is it necesary? Yes.

[SquirrellyMama]

I can't get past this. The first thing Dave would tell you to do is to make your budget TOGETHER!

 

I agree that some of the budgeting needs to be done together but she can draw it up alone and then call a budget meeting. This is how my dh and I do it. It is faster and easier to have him come up with the numbers and then I sit down with him to go over it and give my input. It isn't put into action until we both agree on it.

 

It really depends on personalities. When we try to do it together I usually get the feeling of being a child and won't give my opinion. I usually just give in because I feel too much pressure. When I'm brought in to give my opinion after the numbers are on paper I feel much less pressure.

 

 

Kelly

[Wyndie]

Hi! I have been on TMMO for 2 years now. There is a subscription service through DR's website www.mytotalmoneymakeover.com for about 10 bucks a month. I use that service - there's budgeting software, podcasts, goal trackers, debt trackers and very active forums - where you can ask your debt questions and get good answers from people who've been through the baby steps. If I were you, I would use his subscription for a month or two and then cancel if you feel like you've got a handle on things. It is a gigantic lifestyle change-and people think you joined a cult. :D

 

As far as your car replacement fund. I would begin saving now - while you're working on your EF. Is there any way you could save up about $2,000 and buy another used car for him to get to work with? We paid $2,000 for our beater and it's in great condition. They're hard to find, but they're out there. Also, if he is retiring next year, can you guys go down to one car for a year?? No insurance, maintenance costs, etc for a 2nd vehicle...

 

As far as getting through Baby Step 1, Dave says to sell everything that's not nailed down. That's how a lot of people jumpstart their baby steps (that's how I did it). We also went down to 1 car for about a year - and that really helped. Go through your bills and cancel as many things as possible, lower your insurance, lower cable (or cancel cable), stop memberships, etc. Just anything that you can cut out. Remember, your goal is to get out of debt as fast as humanly possible.

 

You can do this!! We were debt-lunatics a few years ago (well, my husband was - he he he). We started off with no savings and about $80,000 for Baby Step 2. Now, we're almost finished with BS2 and we're starting BS 3 next year. Also, remember...the more debt you have, the harder it is to start, but the easier it is to get out of debt once you get going. If you're used to paying a giant chunk of income for debt payments, all that income is going to free up over the course of BS2. By BS3 and 4, you're going to have a LOT of disposable income to throw at paying off your house.

 

Good luck! I would go onto DR's forums and ask some questions. You can use the subscription and then cancel after a month - in fact, I think he had a free trial on there at some point, maybe he still has that. If you can listen to his radio show, it's really encouraging also. There are people on there who dig themselves out of like $600,000 in debt on $70,000 a year. Some of the stories are incredible!

 

I should clarify that he's retiring from the Air Force but will be working in the civilian sector after that. Sorry for the confusion on that front. So we don't know what life will look like in a year b/c we don't know what his job will be but this area is great at hiring retired Air Force and he has some good prospects. We are obligated to be out of the house one day a week and as I mentioned we live in the boonies so sharing a vehicle would be problematic. Although I guess probably not impossible. Need to open up my mind to alternatives...

 

We cancelled cable years ago and are bare minimums right now on everything. Well, let me say one of us do not waste money on non-essentials, the other still struggles. But when we first saw ourselves heading down the debt slope, we did try to halt it by cutting out all non-essentials. Looking at our lifestyle though, I can see a few places things have been allowed to slide back in. :tongue_smilie:

 

Wyndie,

 

Get the $1000 EF. Most people can do this in about a month. THEN, save up, as quickly as possible, what you'll need for a replacement vehicle. Think beater and cheap. Then get to Step 2.

 

Under NO circumstances will you PLAN to use your EF. It is for EMERGENCIES. Emergencies are things you do NOT know are coming up. Everything you KNOW about, you PLAN for.

 

I highly recommend looking at the Step 1 chapter again. Additionally, for a free option, you might look at the Yahoo Group. They are GREAT support and can help you think through things.

 

HTHs,

 

Thank you for the reminder that EF is for emergencies, not car payments. Don't know where my head was but sometimes a good up front reminder is very helpful. :)

 

I can't get past this. The first thing Dave would tell you to do is to make your budget TOGETHER! We went through FPU last year and as things change, we continue to tweak our budget. (Ds made the all stars team, so we have expenses not budgeted for. For ex: the all stars uniform, more gas to drive to 2 weeks of daily practices, more gas needed to drive the 140+ mile round trip to the district tournament's location for a week, more pix, etc.) It's a team effort. We have to do it together. Dave does not waver on this. I'm *not* bashing your dh for having you draw it up. You have to start somewhere, but he needs to be involved in the process!

 

As for the vehicle situation, you've gotten good advice. Get your EF in place and go to one car if you have too. Not fun, but sometimes necessary. Then save for a replacement. Our first step is always to PRAY for a replacement! ;)

 

And last of all: beans and rice and rice and beans! Really.

 

It's a miracle (and I'm not kidding!) that dh is even willing to do this. So I am happy (well I don't know if that's the right term) to draw up the budget and we will tweak it together. I am trying to make this something he will do. If he is given the onus of the paperwork part of things, he will quit. I know this from experience. ;)

 

Not sure how to tweak our diet. My children have severe and multiple food allergies and none of the "cheap" foods are even tolerated. Their special diets require a ginormous part of his paycheck. It is in fact, our second biggest expense; mortgage being the largest. DH did say he would go to beans and rice during all of this. I already eat cheaply but have allergies as well so am limited on how skimpy my diet can be.

 

If you don't have enough saved for a beater by the time you need it, I would seriously consider going down to one vehicle for a few months until you can save the money. A little pain may help with motivation.

 

We bought a truck for $2500 this last year. It's old and looks it, but it gets the job done without putting us into debt.

 

I refuse to have auto payments again. I feel so free and in control without them.

 

Yes I think the pain of motivation is what will teach us to think outside the box to get things done.

 

With all due respect to Pamela, not everyone can save the $1000 in a month. DH and I couldn't; it took us about 3. I agree with the PP who said to hold a sale and sell anything you can. This will help jump start your EF and possibly pay off some of your smaller debts.

 

Do not plan on using the emergeny fund for anything other than emergencies. The EF is to cover things like broken hot water heaters.

 

I would counsel you to not buy another vehicle. If your DH is retiring in a year are you going to need two vehicles? I think the better course of action would be to pay off as much debt as you can between now and his reitrement. I don't say this lightly. We recently lost our second vehicle and became a one car family. We have three people working (one with a crazy anytime-of day-or-night schedule) and we are managing. Is it fun? No. Is it necesary? Yes.

 

Ooo I remember your recent thread about juggling three people and one vehicle. The more I read everyone's comments, the more convinced I am that I"m a bit spoiled in the vehicle department...

 

I agree that some of the budgeting needs to be done together but she can draw it up alone and then call a budget meeting. This is how my dh and I do it. It is faster and easier to have him come up with the numbers and then I sit down with him to go over it and give my input. It isn't put into action until we both agree on it.

 

It really depends on personalities. When we try to do it together I usually get the feeling of being a child and won't give my opinion. I usually just give in because I feel too much pressure. When I'm brought in to give my opinion after the numbers are on paper I feel much less pressure.

 

 

Kelly

 

Yes, although I wish DH were the one taking the reins on this, his willingness to participate in getting out of debt is enough for me to take on the hard task of number crunching. We have never done well constructing a budget together (we've tried!) so I think it is better for us to do as you describe above. We will agree on all things before things are finalized of course. As I mentioned before, if it is left to dh to carry the brunt of this, it will not be done. I have to make it easy on him. :)

 

Thank you all for your input. Sometimes I just need to hear things from another perspective to understand what I have rattling around in my head. I will look on DR site to see what freebies I might be able to get for support. :D

 

:grouphug:

[Wyndie]

#1- The budget isn't you doing it. It is both of you dealing with this together. Most of what Dave deals with aren't really money issues, they are relationship issues. It's in the book btw. Dave says you need to make the budget together so hold hubby to it! That doesn't mean that you can't get everything organized and make a list of bills and expenses ahead of time. My dh does all of that. But when it comes to making choices about what will be paid and how extra will be spent, you do it together.

 

As for the Emergency Fund and the truck. You are not looking for a down payment. You need enough money to buy something that runs with cash, just a few thousand dollars. You may do your budget and find that there was a huge hole but even if you aren't wasting much, the fastest way of getting money is to sell stuff. Start looking at things in a whole new way. What do you really need? Craig's list, ebay, yard sales, Start Selling Stuff Now!

 

My plan this weekend is to hunt down the treasures in the house that are sale-able. DH has a ton of collectible, useless (in my mind) stuff but will not likely part with it so I have to find stuff that he will part with. We're supposed to attack the garage and weed through. Hopefully I'll find enough good things out there to bring in an EF.

 

Is selling on Ebay useful? We can't have yard sales in our neighborhood (HOA). I have only sold one thing on Craigslist and it was a big item (years ago). Do people buy little piddly things on Craigslist?

[Quiver0f10]

Wyndie,

 

Get the $1000 EF. Most people can do this in about a month.

 

I disagree with this. if I could come up with $1000 extra in a month, I wouldn't need TMMO :lol:

 

Seriously, we have been trying to follow Dave for a while and are slowly chipping away at our debt but we still don't have our BEF done.

[Wyndie]

I disagree with this. if I could come up with $1000 extra in a month, I wouldn't need TMMO :lol:

 

Seriously, we have been trying to follow Dave for a while and are slowly chipping away at our debt but we still don't have our BEF done.

 

This too is encouraging so I won't be frantic if I can't dig up that much money in a flash. I know we don't waste much in a month so it's good to hear not everyone can manage that. But we will try!!! :)

[Joanne]

He wants me to have a budget drawn up by Thursday so we can start our Baby step 1 then.

 

I've read Dave's books and listened to him for years. I'm a not active member at LLNOE. I've been unable to follow Dave's program because of my unique situation, but I am a "fan" - even when I don't wholeheartedly agree.

 

I think some posters are being too harsh and possibly presumptive about the above. When Dave says "together", I don't necessarily think it means together looks the same for each couple. The OP and her DH are BOTH reading the material and enthusiastic. They are involved and engaged. I assumed she'd jot out a paper budget and they'd go over, discuss, tweak and agree on it.

 

OP, congratulations on making a great choice to get your act together!

 

One thing, possibly inspired by my own situation - I can't imagine starting the TMM and being able to retire next year. Is it possible DH might have to work longer or switch work?

[cjzimmer1]

I disagree with this. if I could come up with $1000 extra in a month, I wouldn't need TMMO :lol:

 

Seriously, we have been trying to follow Dave for a while and are slowly chipping away at our debt but we still don't have our BEF done.

 

I have to agree too. Some people are in debt because they leak huge amounts of money a month and when they stop that, it's easy to save $1000. For others, they are in debt because their income/expense ratio is so close that a seemingly innocent $20 purchases set them over the edge. For these people $1000 will take a very long time to save up.

 

We started Dave January 1st, We will finally have our $1000 somewhere close to the end of the year. It would be great if we could build that faster but reality is we simply don't have extra, I ran thing pretty tight even before starting Dave so there really wasn't much to cut.

 

For us Dave hasn't been about eliminating debt because the only thing we have is hubby's college loan and our mortgage, for us it's been for DH to see exactly how much we DON'T have each month so he can stop griping at me about not having any money when he wants to buy something. It has made him much more careful about his choices and I don't always have to be the bad guy anymore.

[AspieMel]

My plan this weekend is to hunt down the treasures in the house that are sale-able. DH has a ton of collectible, useless (in my mind) stuff but will not likely part with it so I have to find stuff that he will part with. We're supposed to attack the garage and weed through. Hopefully I'll find enough good things out there to bring in an EF.

 

Is selling on Ebay useful? We can't have yard sales in our neighborhood (HOA). I have only sold one thing on Craigslist and it was a big item (years ago). Do people buy little piddly things on Craigslist?

 

Sometimes they do on Craigslist.. It really depends, I find that kids stuff goes, and "medium" sized items go really quick. Movies, not so much. I didn't like using Ebay, fees are a pain and I find unless you have the right "stuff", it really doesn't help. My big thing is garage sales. What doesn't sell goes into the attic to be listed on Craigslist until the next garage sale :) And advertise a garage sale on craigslist for free :) My hubby is reluctant to part w/ his stash as well.. I am constantly digging through his office and bugging him about what he will and will not sale..

 

As for the budget, I'm the "control freak" of the family, so I do the budget, then we sit down and go over it and Hubby comments on what I miss or what he thinks should change... As long as you are both on the same page about the budget, and both putting in agreeable effort, I don't think it matters as far as who sets it up.. KWIM?

[AspieMel]

I disagree with this. if I could come up with $1000 extra in a month, I wouldn't need TMMO :lol:

 

Seriously, we have been trying to follow Dave for a while and are slowly chipping away at our debt but we still don't have our BEF done.

 

My sentiments EXACTLY!!!! :D

[Wyndie]

I've read Dave's books and listened to him for years. I'm a not active member at LLNOE. I've been unable to follow Dave's program because of my unique situation, but I am a "fan" - even when I don't wholeheartedly agree.

 

I think some posters are being too harsh and possibly presumptive about the above. When Dave says "together", I don't necessarily think it means together looks the same for each couple. The OP and her DH are BOTH reading the material and enthusiastic. They are involved and engaged. I assumed she'd jot out a paper budget and they'd go over, discuss, tweak and agree on it.

 

OP, congratulations on making a great choice to get your act together!

 

One thing, possibly inspired by my own situation - I can't imagine starting the TMM and being able to retire next year. Is it possible DH might have to work longer or switch work?

 

Thanks for your encouragement Joanne! Yes, DH is changing jobs. I should have clarified in my original post. He is retiring from the Air Force and going into civilian work. No job on the horizon yet but this area is very good about hiring retired military and Boeing just opened a plant here.

 

I have to agree too. Some people are in debt because they leak huge amounts of money a month and when they stop that, it's easy to save $1000. For others, they are in debt because their income/expense ratio is so close that a seemingly innocent $20 purchases set them over the edge. For these people $1000 will take a very long time to save up.

 

We started Dave January 1st, We will finally have our $1000 somewhere close to the end of the year. It would be great if we could build that faster but reality is we simply don't have extra, I ran thing pretty tight even before starting Dave so there really wasn't much to cut.

 

For us Dave hasn't been about eliminating debt because the only thing we have is hubby's college loan and our mortgage, for us it's been for DH to see exactly how much we DON'T have each month so he can stop griping at me about not having any money when he wants to buy something. It has made him much more careful about his choices and I don't always have to be the bad guy anymore.

 

This is our situation as well. And I am encouraged by these reports of people taking more than a month. Really that's one of the things I need to know b/c we can be gazelle intense but we can't generate more income... although I am looking into a second job right now. /sigh

 

Sometimes they do on Craigslist.. It really depends, I find that kids stuff goes, and "medium" sized items go really quick. Movies, not so much. I didn't like using Ebay, fees are a pain and I find unless you have the right "stuff", it really doesn't help. My big thing is garage sales. What doesn't sell goes into the attic to be listed on Craigslist until the next garage sale :) And advertise a garage sale on craigslist for free :) My hubby is reluctant to part w/ his stash as well.. I am constantly digging through his office and bugging him about what he will and will not sale..

 

As for the budget, I'm the "control freak" of the family, so I do the budget, then we sit down and go over it and Hubby comments on what I miss or what he thinks should change... As long as you are both on the same page about the budget, and both putting in agreeable effort, I don't think it matters as far as who sets it up.. KWIM?

 

Thank you for the sale info. If I could get him to part with some of his collectibes, we'd be good. lol Maybe I can give him subliminal messages in his sleep. :lol:

[Ferdie]

One more helpful thing is to make a "wish list" of you big ticket items that you need. Pray over the list and you will be stunned at God's provision. Over the years we have received patio furniture, sporting equipment, couches and a table for free. When my kids were young I prayed over a basketball hoop, (the large free standing kind) and ended up with three of them. LOL!

 

My friend added a car to her list when her family had to go down to one car due to finances. She put the word out and told everyone they were in need of a car. When an aquaintance moved out of state they gave them their car for free since they didn't want to pay to have their very, old car shipped accross the country. Four years later the car is still running!

[KrissiK]

Regarding who actually draws up the budget - I think it should be the one who pays the bills. Now, as far as developing the lifestyle of staying on a budget, paying off debt, etc. - definitely both people need to discuss and buy in to that plan, but I'm the one who pays the bills in the family. I'm the one who does the grocery shopping, etc. etc. I'm the one who drew up the budget. We both need to agree that we can only spend X amount of $$ on entertainment per month, but I'm the one who determines what X is because I know what it costs us to live.

 

We have our budget drawn up on an Excel spreadsheet and it works great. I didnt' need to do anything special. We've been doing this for 5 years now and I've been refining it over time, but Excel is a powerful program and can do lots of stuff, so you don't really need to buy anything special to put together a budget. As far as record keeping goes - if you're careful about receipts, or just write checks for everything (we do use our credit card, which I know is a DR no-no, but we pay it off every month) then it's easy to enter the data.

[Wyndie]

One more helpful thing is to make a "wish list" of you big ticket items that you need. Pray over the list and you will be stunned at God's provision. Over the years we have received patio furniture, sporting equipment, couches and a table for free. When my kids were young I prayed over a basketball hoop, (the large free standing kind) and ended up with three of them. LOL!

 

My friend added a car to her list when her family had to go down to one car due to finances. She put the word out and told everyone they were in need of a car. When an aquaintance moved out of state they gave them their car for free since they didn't want to pay to have their very, old car shipped accross the country. Four years later the car is still running!

 

HA! That's fabulous! Definately something we will do; thank you for the idea. :)

 

Regarding who actually draws up the budget - I think it should be the one who pays the bills. Now, as far as developing the lifestyle of staying on a budget, paying off debt, etc. - definitely both people need to discuss and buy in to that plan, but I'm the one who pays the bills in the family. I'm the one who does the grocery shopping, etc. etc. I'm the one who drew up the budget. We both need to agree that we can only spend X amount of $$ on entertainment per month, but I'm the one who determines what X is because I know what it costs us to live.

 

We have our budget drawn up on an Excel spreadsheet and it works great. I didnt' need to do anything special. We've been doing this for 5 years now and I've been refining it over time, but Excel is a powerful program and can do lots of stuff, so you don't really need to buy anything special to put together a budget. As far as record keeping goes - if you're careful about receipts, or just write checks for everything (we do use our credit card, which I know is a DR no-no, but we pay it off every month) then it's easy to enter the data.

 

DH was thinking of getting Quicken or something that can tie right into our bank account so we can track how much goes to groceries, gas, etc. I honestly don't know that we would use it but he says he will. I think once things get set up and rolling, he will be invested enough to involve himself with the details. I hope so b/c I am not very good at tracking things online. I'm a paper type girl myself. Thank you for your info on the spreadsheet. I'll share it with him.

[SquirrellyMama]

Regarding who actually draws up the budget - I think it should be the one who pays the bills. Now, as far as developing the lifestyle of staying on a budget, paying off debt, etc. - definitely both people need to discuss and buy in to that plan, but I'm the one who pays the bills in the family. I'm the one who does the grocery shopping, etc. etc. I'm the one who drew up the budget. We both need to agree that we can only spend X amount of $$ on entertainment per month, but I'm the one who determines what X is because I know what it costs us to live.

 

We have our budget drawn up on an Excel spreadsheet and it works great. I didnt' need to do anything special. We've been doing this for 5 years now and I've been refining it over time, but Excel is a powerful program and can do lots of stuff, so you don't really need to buy anything special to put together a budget. As far as record keeping goes - if you're careful about receipts, or just write checks for everything (we do use our credit card, which I know is a DR no-no, but we pay it off every month) then it's easy to enter the data.

 

We also have our budget on an Excel spreadsheet. My husband takes care of it and then we have a budget meeting once a month. As for as budget and paying bills. He does the budget and I pay the bills. It works great that way. I sit with him and look at his numbers and then give him any extra numbers that may have come in (water bill, homeschool stuff, etc...). Sometimes I get everything into the bill pay and he just takes the numbers from there.

 

Kelly

[momee]

We're doing it and I feel so much more in control of our income.

 

I love! the idea of the zero based budget. EVERY penny has a place to go. No more - hey - extra $300 - then it disappears into thin air. That was how I used to budget. I was happy to find this new tool.

 

I also found I was seriously in denial about how much I was actually forking over to Sam's and Food Lion and also fast food (ick!). I didn't think we spent that much. BUT, $40 a stop for all 6 of us, it adds up quickly. I went through my bank statements from the last three paychecks and was in serious shock. I really! thought we were way under the amount we spent!

 

I'd like to speak to the envelope system:

Still have $80 in the grocery envelope and only two days till I get more in there. (insert big party sign here!)

 

I didn't think I needed something like the baby steps. I mean, how exciting can it be?

Well, WRONG. I'm an adult and can think rationally, but it's really powerful to have the steps in place and know we're making progress each time I save money. It really is a mind thing, isn't it?

 

I've found myself three times since starting thinkgin I "needed" to make a trip to town (multiple stores there)...then, "Nah. I'll do without or make something else for dinner and keep the money."

 

We don't have much in the way of snacks and everything we're going to eat till payday has to be prepared. This does not please the big eaters in my house who like to open the snack drawer and find lots of choices...and it puts a bit of burden on me to actually do what I planned (gulp!)

But, any extra money goes toward the debt snowball so it's incentive for me.

 

We're both very happy with all we've tried so far. Go for it!

Edited July 1, 2010 by momee

[Wyndie]

I've found myself three times since starting thinkgin I "needed" to make a trip to town (multiple stores there)...then, "Nah. I'll do without or make something else for dinner and keep the money."

 

We don't have much in the way of snacks and everything we're going to eat till payday has to be prepared. This does not please the big eaters in my house who like to open the snack drawer and find lots of choices...and it puts a bit of burden on me to actually do what I planned (gulp!)

But, any extra money goes toward the debt snowball so it's incentive for me.

 

We're both very happy with all we've tried so far. Go for it!

 

I can totally see myself getting really scrimpy with money once there's cash in my hands. The only place I typically lose my mind money-wise is the book store and we'll just stay out of that place! I'm looking forward to having excess money left in my envelope at the end of the month! :)

 

I love his saying "Tell your money where to go or it will go away". That just speaks to me and really encourages me on the necessity of planning.