Logjams....

Okay, major logjams that are preventing 'gazelle intensity'

*house
*van
*eating out
*fuel costs

So we have decided they gotta go. #1 problem is that the housing market in our subdivision is very crappy. So we have to do FSBO or expect -$0- at closing since the realtor fees will eat up literally ALL the equity. If we can sell it, that it. I did talk to a couple investment brokers, and we considering doing a lease-option, but I do not really want to go in that direction. We would still have our mortgage & own the play, get rent that may not cover expenses, and all that rot. Still better than what we are currently doing, but not the best option. There are several houses in pre-foreclosure (that doesn't help), and lots for sale. Average time on market is well over 180 days. But then, *I* haven't seen any resale listings in our subdivision that are reasonable in their pricing. Way out of line.

Van - have yet to take it to Carmax. We'll see.

Eating out---it is hard, it is a form of entertainment. babysteppin'

Commute to Clean Harbors is killing in gas money. Can't do much about that right at the moment.

April Update

We are officially on Step#2, debt reduction.
We have the $1K Beginner emergency fund in ING account

Current debt totals, after April payments:
Perkins loans: $0!!!!! we paid that bad boy off!!
Credit card:$0!!!!paid off completely...stubborn chiro payment
Rae's Sallie Mae:$7763
Kia Sedona:$14007
Jason's Sallie Mae:$32271

Total non-house debt:$54,041

Turmoil regarding tithing...

For the most part, I *want* to give. Right now, our debt allows for minimal to no tithe or offering. Which is 2 separate things. Supposedly, tithe is the first 10% of your wealth to your 'home church', and anything over that is 'offering', and that can go toward anything/anyone.

There is some dissent among churches if tithe is a Christian 'requirement' or only if it can be done with a joyful heart. Some say it was an old testament 'thing', never a law, and it was fulfilled by Jesus when he died for our sins, among other things. I think Jesus challenges us to give *everything*, but haven't gotten that far in comprehension of things yet.

However, there is agreement that *everything* we have belongs to God, we are only responsible for it while on Earth. The definition of being a good steward of what we do have is widely open to debate and that is where the tithe/not tithe to home church. Then there is the whole thing on if it is 10% gross or net income, or if it is 10% of total wealth (of which we have none).


*I* feel that we should give joyfully at least 10% income to those less fortunate, be 'responsible' of the rest, which may include more giving. But we got ourselves in a muddle in a time when we were NOT responsible with our money, and now are 'owned' buy WAMU & Chase.


Hmmm. I do NOT think it is okay to have debt. I do NOT think it is okay to not give to charities and/or church. But we are where we are, and need to go on from here. Obviously changing lifestyle and spending habits to be able to live on less than 90%. Otherwise we will never have 'enough' to tithe.

March update:

We are officially on Step#2, debt reduction.
We have the $1K Beginner emergency fund

Current debt totals, after March payments:
Perkins loans: $0!!!!! we paid that bad boy off!!
Credit card:$997
Rae's Sallie Mae:$7862
Kia Sedona:$13990
Jason's Sallie Mae:$31985

Total non-house debt:$54,834

"Found Money"

Now that we know the 'steps', and we have a mostly workable budget. We have to come up with a plan for what Dave calls "found money". That means leftovers in the budget, cash gifts, overtime/extra income, refunds, prize money, income tax return. Blow Money is a separate category, not found money. I want to be seriously serious about debt reduction. I propose that that found money go to whatever step we are on, with the exception of money for birthdays. Birthday money is considered 'extra blow money'. But everything else goes to 'THE PLAN'. After we get past babystep 2, then we can revisit this.

PreSteps---getting current and budgeting

Budget----Okay. Over the past week, I have worked our a 'doable' budget. "Dave says" that it takes about 3 months of doing a budget (well, he calls it money allocation or some neutral term) before you have your categories in the correct ranges. I think I am pretty close to our 'real' numbers for expenses. But I will be following every dollar and where it goes, so that we are in control of our finances instead of our finances controlling us. Not balancing the checkbook, and not sticking to budgeted expenses is where you get those sneaking "leaks" and before you know it...you have to your the Emergency Fund so you don't bounce the mortgage.

We are going to be debt free! I want to do this as fast as possible. Beholden to no man...blah, blah, something.

System----So, the envelope system. It works, I will have to pay attention a bit more in the grocery store. Thats all. Impulse buys --- nope. Gas (ONLY gas at the gas station!!!) on the debit card. Everything beyond bills is cash. We both spend waaayyyy too freely using the debit card. We just do not think before we swipe.

Get current ---- I do have a couple outstanding bills - $70 to the dentist (which I thought was covered 100% by insurance - big raspberry!), TruGreen ChemLawn - $30ish. These will have to wait until next Friday. I think that is it.

Blow Money ----this will be in cash. JASON!!! On Saturday you get $50. Spending money will include any of your bad habits (tomacco and/or 'new releases'). I do NOT want to see Isle 16 purchase on the debit card---or worse, the credit card!

Savings without a mission is garbage!
-Dave Ramsey

We still need to set up larger goals, longer term type stuff. But for right now, Baby step #2 is sufficient for our needs here. The goal to be consumer debt free is a huge motivator.

7 Baby Steps to Financial Peace

7 Baby Steps to Financial Peace

1. First level emergency fund $1,000. Pay minimums on everything else.

2. Kill off personal debt except for the house

3. Save the rest of the emergency fund. 3-6 months of *expenses*.

4. Fully fund all pretax retirement accounts. Also at this time, review all insurance coverage. With a large emergency savings, you can now afford $500-$1000 deductibles.

5. College savings accounts for children (optional).

6. Pay off house as early as possible.

7. Build wealth! Mutual funds, real estate…wait for the great deals & pay cash. This step is the ‘rich getting richer’.