Finance

Welcome to week three.

Each week I struggle with deciding which topic to discuss.  Something always comes you to make the choice very clear. Yesterday I was having a visit with a close friend and we were discussing my kids and money.  She looked me straight in the eye and said “You should write a blog about that”.  So is born today’s blog.

Money the root of all evil.  The number one cause of fights in relationships.  The one thing we all want more of.

Last year in August my husband and I became tired of living paycheck to paycheck.  We are a single income family and he makes good money, however we were living above our means.

We all learn about money from our parents.  They may not sit down and have a discussion about how they handle their money, we do watch them and learn from example.  This is the exact same thing our kids do.

My husband and I were living a life of if we could afford the payment then we could afford whatever we were looking for.  It was becoming over whelming keeping track of all the payments.  It got to the point we were taking from one credit to pay another card and the cycle looked like it was never going to end.  We were sitting on the deck enjoying a cold drink when he mentioned a book that his wife and he had read and they had been following for sometime and they could now see the light at the end of the tunnel.  That week I went out and bought the book.  The Total Money Makeover, by Dave Ramsey.  Both Farmfitpa and I read the book and in August we started the program.

We have a date when the only payment that we have will be our mortgage.  October 21, 2021.  It seems so far away yet so close at the very same time.

How are we doing it? Well I recommend you buy the book or listen to Dave Ramsey’s podcast.  Our short version is that we have a budget that we are sticking to, we are paying extra onto our debt every check, we are clearing out the house, garage, barn and selling anything that no longer in use or has value to us.  Farmfitpa is picking ot when possible and doing the odd side job.  I have found some part-time work that I will be starting next week.  We are only buying things that we need not the things we want. Both of us are shoppers and this is really tough.  We talk once or more a week about where our money is going.  This is the biggest part that is helping us the most.  We both can see that the other is working hard at learning new habits and talking about it makes it so much easier.

We are also taking this time to teach money smarts to our kids.  Some of the things that we have instill in them are as follows:

  • 1/2 of your pay goes into savings
  • give money to charity/church each check
  • know what you want to purchase and save for it
  • you don’t do your work you don’t get paid

You may be thinking how can an 8 and 10-year-old understand having a job well.  We raise chickens and each of the kids is responsible for an aspect of keeping chickens.  At the end of the month we take all the money from selling eggs and split it.  That is where they get most of their money.  My 10 year old also started her own saddle cleaning business and has done well with that.

We are hoping that teaching them young they wont run into the same mountain of debt that we have.

As with other weeks here are the short and long-term goals that Farmfitpa and I have in the finance category:

Short term

  • pay off next debt by October 2017
  • post at least one item a week for sale
  • a minimum of $100 a month extra onto debt

Long term

  • Be debt free
  • have a net worth of a million dollars

One of the quotes that I am living by right now to help me get through these tight times is ; Live like no one else today, so that I can live and give like no one else.  Dave Ramsey.

Have more questions for me about Finance please feel to contact me and ask away

 

Leeanne

 

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