In any operation step one is always to plan. Start a business you make a business plan. Buying a home, and you make a plan for that. The problem with plans is that most of the time it is the most boring and drawn out process. However, it is also the most important.
The Dave Ramsey Plan obviously starts out with a plan, a budget. Doing the budget actually turned out to be a fun process. Take the use of the word fun lightly because I am not saying I wouldn't rather be at the beach, but it was refreshing to really sit down and see where we are at and where we can be.
One part of Dave's budget is the debt snowball. We fill out a chart showing exactly what we have for debt. This part was the most difficult to see because I think its hard to realize exactly how much debt you really do have.
We have two types of debt, the first is our personal family debt, which is our first target. The second is, is debt from a past business. The debt from the past business is not going to be included in the first portion of the Dave Ramsey plan as this portion is solely about our personal debt and getting out of it.
Here is our initial list of debts...
Debt - Amount - Detail
Kyle Credit Card - $376.28 - I started this to build credit as I was told I should
Care Credit - $1,079.98 - Broke a tooth, this is the result
Gardner White - $3,023.31 - We got the awesome no interest deal
Chase - $5973.53 - This got built up partially with business debt and extra spending when things got tight.
Chrysler Financial - $25,225.66 - Vehicle
So the grand total - $35,678.76
The first two debts are small and I think we can easily knock those out in 1-2 months which will clear out a small portion of the list. The remaining debts are going to take some time but I definitely think we can do it. The largest portion is the vehicle debt which we are well upside down on thanks mainly to the several thousand in rollover from my truck lease. The strategy on this debt is going to depend on our income.
Because we have a variable income if were doing well it may make sense to just pay it completely off and keep the vehicle because it is a very nice vehicle with a lifetime powertrain warranty that paid off for us once already. However, if things aren't progressing as quickly as we want, if we can pay about 1/2 of it off then we would most likely sell the vehicle.
Overall I am hoping that we can have all of this paid off within 18 months at the longest.
Tuesday, July 27, 2010
Saturday, July 24, 2010
Confessions
SO! I've just finished reading most of Dave Ramsey's "Total Money Makeover" - at least up to the chapter on saving for retirement, page 150 - and I've got a whole lot of thoughts going around...
You know when you start a new fitness program and you are determined to lose the weight, get fit, etc... and by day 2, you're ready to just give up because "it's too hard," "inconvenient," "too *enter excuse here*"? Well, in some ways, this whole "financial fitness" program that my husband Kyle and I are going to start just kind of seems like the same thing. I'm really excited to check off each debt we pay off, live a comfortable life with our kids, and never have to worry about money again.
However, I love to spend money. Not put everything on a credit card that I will "pay later" but more of the fact that I love dining out and I love shopping at the mall, and I know this is going to be hard. I'm not into impressing people by what material things I possess, it's just more of a behavior. I don't have a problem - I don't turn to shopping/purchasing items when I'm sad or happy - but it's more of a favorite hobby. I enjoy going out with the girls, hitting Olga's, and buying a new dress. I make a day of it!
So Dave, I'm trying to change! No, wait... I'm GOING to change! I'm going to make a huge effort - the best I can - and make sacrifices to change my life and live very simply, sell stuff that isn't needed, work long hours until I have no more energy, and THEN - and only THEN - will I be able to live like no one else.
So... now that I've got that off my chest, I'm ready to put all of myself into this program and follow it to a T.
Good-bye, shopping mall. I'll see you later.
You know when you start a new fitness program and you are determined to lose the weight, get fit, etc... and by day 2, you're ready to just give up because "it's too hard," "inconvenient," "too *enter excuse here*"? Well, in some ways, this whole "financial fitness" program that my husband Kyle and I are going to start just kind of seems like the same thing. I'm really excited to check off each debt we pay off, live a comfortable life with our kids, and never have to worry about money again.
However, I love to spend money. Not put everything on a credit card that I will "pay later" but more of the fact that I love dining out and I love shopping at the mall, and I know this is going to be hard. I'm not into impressing people by what material things I possess, it's just more of a behavior. I don't have a problem - I don't turn to shopping/purchasing items when I'm sad or happy - but it's more of a favorite hobby. I enjoy going out with the girls, hitting Olga's, and buying a new dress. I make a day of it!
So Dave, I'm trying to change! No, wait... I'm GOING to change! I'm going to make a huge effort - the best I can - and make sacrifices to change my life and live very simply, sell stuff that isn't needed, work long hours until I have no more energy, and THEN - and only THEN - will I be able to live like no one else.
So... now that I've got that off my chest, I'm ready to put all of myself into this program and follow it to a T.
Good-bye, shopping mall. I'll see you later.
Monday, July 19, 2010
Jennifer's goals
Hey everyone, Jennifer here.
One of the main and obvious reasons for starting this journey is to rid our family of stressful debt and ignorant views of handling money. None of us truly knew how to go beyond the "system" of our nation's idea of wealth. Sure, work hard and spend your money on a house, clothes, food, life's needs. But no one taught us that a mortgage DOESN'T have to be there, that to own a car DOESN'T mean you have a car payment, etc. etc. I want our children to grow up in a home where we can take family trips, enjoy life, have enough to eat, and learn the wise way to handle and earn money without debt - in any way, shape or form.
Another reason is to realize the real potential of the financial blessings God gives to us. He provides - but we may not be utilizing that money in the wisest way. Proverbs 22:7 states that, "The rich rule over the poor, and the borrower is servant to the lender." Thanks to Dave Ramsey, we have the knowledge now to practice wise money decisions!
I want to use this journey to strengthen my marriage. Financial devastation can really strain a marriage and a couple's daily life. The stress on the husband to work harder and longer and the stress on the wife that the bills can't be paid is overwhelming. But working together on a plan to take the bull by the horns and destroying that forever-looming cloud of constant payments can bring you both of you to learn to live like no one else. Really living the American dream. You're in it together and we are.
I know we can conquer this nation's false interpretation of buying on credit means wealth and prosperity... and live a life real Americans once did. I know I am ready.
One of the main and obvious reasons for starting this journey is to rid our family of stressful debt and ignorant views of handling money. None of us truly knew how to go beyond the "system" of our nation's idea of wealth. Sure, work hard and spend your money on a house, clothes, food, life's needs. But no one taught us that a mortgage DOESN'T have to be there, that to own a car DOESN'T mean you have a car payment, etc. etc. I want our children to grow up in a home where we can take family trips, enjoy life, have enough to eat, and learn the wise way to handle and earn money without debt - in any way, shape or form.
Another reason is to realize the real potential of the financial blessings God gives to us. He provides - but we may not be utilizing that money in the wisest way. Proverbs 22:7 states that, "The rich rule over the poor, and the borrower is servant to the lender." Thanks to Dave Ramsey, we have the knowledge now to practice wise money decisions!
I want to use this journey to strengthen my marriage. Financial devastation can really strain a marriage and a couple's daily life. The stress on the husband to work harder and longer and the stress on the wife that the bills can't be paid is overwhelming. But working together on a plan to take the bull by the horns and destroying that forever-looming cloud of constant payments can bring you both of you to learn to live like no one else. Really living the American dream. You're in it together and we are.
I know we can conquer this nation's false interpretation of buying on credit means wealth and prosperity... and live a life real Americans once did. I know I am ready.
My goals
Before I get deep into the Dave Ramsey plan I wanted to point out a few of my goals. Obviously, we want to gain financial freedom as that is the purpose of this entire plan but I believe that there is more to it than that.
I am doing this not so I don't have to deal with financial stress, but more because I don't want my wife to have to deal with financial stress. I dont want my children to have to live paycheck to paycheck when they live under my roof, or their own. I want them to be able to learn how to handle money and how to live without credit. They will learn that when I lead by example.
Beyond the scope of my own family I want to be in the position where I can help others. Someone with 50,000 in debt wastes over $400 A MONTH on interest. Do you know what good we could do with that $400 instead of sending it to the credit card companies?
Moving even further down the road and to the most important points, I want to be able to use every ounce of available energy I have to spend with my family and friends. I have a wife whom I love with all of my heart and a little boy who I want to give everything I possibly can. I want to take my son to the baseball game on a Saturday afternoon, not go into my second job. I want to take my wife around the world and not have to worry about a thing while doing it.
This journey wont be easy. But it will most certainly be worth it. Till Next Time.
I am doing this not so I don't have to deal with financial stress, but more because I don't want my wife to have to deal with financial stress. I dont want my children to have to live paycheck to paycheck when they live under my roof, or their own. I want them to be able to learn how to handle money and how to live without credit. They will learn that when I lead by example.
Beyond the scope of my own family I want to be in the position where I can help others. Someone with 50,000 in debt wastes over $400 A MONTH on interest. Do you know what good we could do with that $400 instead of sending it to the credit card companies?
Moving even further down the road and to the most important points, I want to be able to use every ounce of available energy I have to spend with my family and friends. I have a wife whom I love with all of my heart and a little boy who I want to give everything I possibly can. I want to take my son to the baseball game on a Saturday afternoon, not go into my second job. I want to take my wife around the world and not have to worry about a thing while doing it.
This journey wont be easy. But it will most certainly be worth it. Till Next Time.
Welcome
Welcome to "From Pennies to Passion." This is the story detailing my wife Jennifer and I's journey along the Dave Ramsey plan. Join us as we enter a new life where we can focus on our passions and not the pennies in our bank account. See every step from the beginning to the end and watch as we free ourselves from the grasps of creditors and release ourselves into a world of self sustained freedom.
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