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roxyrambles.com

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debt

Starts with a B

And it ends with… UDGET.

fiancnes

The dreaded Budget. Sigh. No one likes that word.

For me, it’s something that I KNOW helps me keep my focus and makes the WORLD of difference… but it still sucks. {Can I get an AMEN}

Creating a budget is the FIRST step to getting control over your finances.

And EVERYONE will do it a little differently.

We decided years ago that I will be in the one who pays the bills, balances the checkbook, etc. My husband is not much for the tiny details. He’s more like “i’ll keep a mental list of what I’ve paid and round up/down and there ya go.” I don’t work that way. Early on there were some careless mistakes [which I have made PLENTY myself] that cost us an overdraft fee, or a late fee due to not having a written plan.

Paper versus online

I like the written word. I’ve been told about some amazing online budgeting tools that will help keep everything in order, but at the end of the day I want my notebook paper in my binder telling me what bills are due. That’s just how I like it. *To each their own.*

Write down your income {NET}

Write down every bill you have and the date it is due

Write down how it is paid {mail a check, pay online, auto-drafted}

Then from there is when you go to town.

How much is left? Do you spend what’s left? Saved what is left? Cash out what is left?

Up to YOU!

Just because we do cash doesn’t mean that you should. We tried several things and even discussed having a pre-paid card for each of us so that we were using the same principal but not actually carrying cash. We opted for cash only but you do what is best for YOU!

This is a long process. It took us a few years of sticking to our budget to really be in a place where we wanted to go further and do more. I’d give anything to have started this process years ago so that’s probably the one piece of advice I would offer up. If you are wanting to make a difference in your financial life and do MORE than just work to pay bills… don’t wait to get started. Start TODAY! In some capacity, with one tiny little step… start NOW!

Debt Snowball for Dummies

Dave Ramsey is the “Debt Snowball” master and inventor. For many, it makes complete sense, and for others-well, they argue that he has it backwards. All I can say is this… it works. Clearly you can find all sorts of info at DaveRamsey.com but I can break it down for ya 🙂

  1. list your debts from smallest debt to largest debt (ignore the percentage rates)
  2. Tackle the small ones first. Start smallest and work your way up
  3. Do whatever you possibly can to pay down the small ones FAST. That’s the purpose of the Dave Ramsey way… you get those “small victories” along the way since you are tackling the small debts first.

So basically, that’s the Debt Snowball. Pay off small debts first and work your way to the big ones. Doing in this way does give you some momentum. There is something super fun about seeing that small $342 credit card paid off QUICK! And makes you WANT to continue working diligently. If you started with the $10,000 debt, it would take a while to see progress and the fear is that you would eventually give up.

cut up

So… to pay off the small ones…

  1. If you don’t need it, sell it.
  2. Clean out your closets and sell what you can!
  3. Look in your garage– never know what you might find that you can sell
  4. Sell items on ebay if they are bigger and nicer
  5. Follow the other steps (like cutting down on bills and groceries) and use the difference to pay off your debt
  6. Get a part-time job, offer to rake yards, offer to babysit…
  7. And cut up your CARDS!!!!!!!

WHATEVER IT TAKES! Get those small debts paid off! You CAN do it! I believe in you!!

Message me with any questions!

For Now,

Roxy

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