It is always easier to see where the money goes when you have a visual aid. This is our first quarter graph on our expenses.  Student loan and bills eat us alive!!!  I can only imagine what life will be like once we are out of debt.

Unfortunately this is as big as I could make the graph... get your magnifying glass!

 As you can see here we have been getting lazier with the budget. The food expense is on the rise, but the entertainment expense is decreasing. It's not great but it could be a lot worse.

Dave Ramsey Live - I did NOT buy the T-Shirt

It was quite interesting to see Dave Ramsey live. There is what I took from the show:

1. I have officially learned everything he has to teach.
There were no new stories to hear, or life changing moments for me. I have read Financial Peace and Total Money Makeover at least 3 times a piece, listened to all 13 CDs for Financial Peace University, and watched two DVDs prior to this live event.

2. This is excellent, if your spouse is not fully on board.
While was filing the workbook before we covered the material, my spouse was listening and getting on board. He didn't show it while we were there, but the entire car ride home we discussed the budget and his thoughts on the show.

3. People are going into debt, trying to get out of debt.
Let me describe the scene:  Tickets $29 / VIP $69  - we bought the $29 tickets. We parked at the movie theater around the corner from the arena so we didn't have to pay for parking (Savings $5). At every break they sold Financial Peace University ($99), Financial Peace Jr. ($30), Total Money Makeover Starter Kit ($50), T-shirts ($15). Every person left there with bags stuffed to the gills.  We walked to our car empty handed except the free workbook.  I think we are the only people actual implementing his principles.

I believe in his principles because they work. I do not I believe in selling hundreds of dollars worth of stuff, to broke people that clearly need help.

 

Top 5 reasons you are broke!

#5 You Don't make Enough

I will let this one slide... there is ample opportunity out there to make some money but, you have to be smart. By smart, I don't mean book smart. I mean you need to be able to read people and know how to act. Which for a lot of people is easier said than done. Didn't get a second interview? You probably acted like a know-it-all, jackass in your first interview. Good  employers and companies hire good people based on attitude and personality. You can train almost anyone to do a job.

#4 Your Significant Other has a Spending Problem

This can go both ways people... women can be shop-a-holics, and men can be gear-heads or electronics junkies, or vise-versa. If you are married, your money should all be in the same cookie jar. You need to have a plan in place, so you don't argue about money. 80% of marriages fail because of financial problems. Take care of your spending first, BEFORE you do an intervention with your spouse.



#3 You Don't Have Time to Cook

Do you work 7 days a week, 16 hours a day?  I bet you don't.  You have plenty of time to go grocery shopping and make some meal plans for the week. Always buy a few extra bags of food for the freezer for those nights you really don't feel like cooking.  To say that you can't cook, don't have time to plan, or don't know how is basically saying:  I am a lazy, irritating person that doesn't care how I, or my family eats. Go cry to weight-watchers, because eating out also reeks havoc on your waistline.

#2 You Deserve It

I am all about self empowerment... but chances are you don't deserve a damn thing, besides someone kicking you in the ass and cutting up your credit cards.  I believe it is L' Oreal that uses "Because You're Worth It" as their campaign slogan. Brilliant really... until everyone in American now believes that they are entitled to, not only a box of hair dye, but a BMW, Gucci glasses and a Fendi Bag. If you don't have the money for it, you don't deserve squat.


#1 You Spend More Than You Make

What is a credit card for? For buying stuff you can't afford to buy now.  When you don't plan out your spending for the month, you end up spending more than you make. The only way to stop this cycle is to make a budget. "But I don't have time to budget." You can't afford NOT to make a budget! At the most basic level you need to write down total monthly income, minus monthly bills, and see what is left over. You can't spend more than that magic number a month, or you will be hanging yourself on your money tree.

Motivation - Gone.

I have officially lost my motivation. I bought 3 shirts this past weekend and haven't said no to a night out in 2 weeks. I am hoping to regain a sense of purpose, and hope, after attending Dave Ramsey's seminar on Saturday May 26th.

I thought that after we received the loan repayment, it would be the push we need to stay on track. That was not the case. It only served to push us into our bad habits by reminding us that there will be more money now than 1 month ago. That $466.66 we are saving per month is to be used to pay off the credit card and student loans. Really I am just creating this post to remind myself of what we should be doing with our money.

St. Patty's Day is always a day of celebration and green beer. We spent $75.00 on booze and 1 sandwich ($9). This is not surprising. We have done worse. However it is now time to straighten up and get back to business. What's on the calendar for the rest of the month?  Hockey game in Denver on Thursday and then DAVE RAMSEY!!!!   Only 1 week away!

Poof! It's gone...

Less than 24 hours later the $60,000 was applied to both of our great lakes loans.  Sayonara crappy loan company charging us 7.2%!  Hello, extra $466.66 a month!

Ahh... how wonderful it is to have our first student loan paid off. Now we can really start up the debt snowball.  First order of business, is to put all extra money into our tax bill until it has been paid off. After that short challenge, we will begin putting $466.66 + $250 = $716.66 onto our credit card every month.  We will also be putting any additional money made through bonuses, extra jobs, selling stuff and hopefully have it paid off by September.

If all goes well and we accomplish this, with my 3rd quarter bonus (depending on what tier we hit) we will be able to put a minimum of  $5,700 into another loan.  Just like losing weight we need some small wins to keep us going! 

$60,000 Loan Repayment!

Finally the financial Gods have spoken and we have received our loan repayment disbursement. For everyone out there that wants to know what this is, and how the hell you get it, let me explain.

If you are a medical provider in an under served area or work for some public health locations, the government offers a loan repayment program. Your office must be a qualified location and your position must be a qualified position. You have to apply like you would a grant or scholarship. They only give money to a certain number of people per year. If they accept you, in about 90 to 120 days, you get a lump sum to be used on qualified government loans. You must provide proof of payment and stay at your job in the position your are in for at least 2 years from the date of the loan acceptance. 

The state and federal governments both provide these types of programs, so if you work for public health or a branch of government look into this for yourself.  They provide this as an incentive to work for those companies because generally you will be paid less than if you were in private practice. 

Anyway $60,000 is hovering out there in outer-space waiting to be applied to our loans. Now which loans are we going to payoff?  Dave Ramsey says you pay off the smallest balance ones first. Unfortunately that won't help us in the long run. Remember Ramsey says getting out of debt should take you 12 to 24 months and we are looking at 7 years! So I vote for the highest interest.

We are now $60,000 less in debt than yesterday.  Which puts our total debt (not including mortgage) at $519,754.  While this figure is still shocking it is no longer discouraging any more. We are going to do this!  

Debt Companies that "Help" You

Boy everyone is trying to profit off the poor man.  What is the deal?  Give us a break already!  All these debt companies promising to consolidate your payments and settle your accounts.  At what cost? 

First of all sorry to say this but... you took out the debt to get stuff, lots of stuff, and now you should pay it back. I was the idiot that took out student loans, I was the dummy that wracked up my credit card bills to buy vacations and crap that I don't use any more. Why should the financial institution have to suffer?  Ok well they should suffer... I mean they shouldn't have LET me get into so much debt. They should have stopped shoving their credit card offers down my throat, until I couldn't breath and just HAD to sign up for ANOTHER ONE!

I do not agree with marketing tactics or allowing someone to get credit that shouldn't, but we have to own up to this mess... or else we will continue to put ourselves back into it. So #1:  Own your debt!  It sucks, but its the first step.

Next, these companies claim to be "non-profit" yet they have to pay their employees somehow, right?  There only job is to help you. Oh how noble! -sniff- -tear- Puh-lease! I know we are super smart... hence the debt.. but we should know that no business works for free, and I have never heard of one of these companies asking for a donation at the end of the call. 

I once spoke with a debt consolidation company in 2005 before we were paying on student loans. She put my info into her system and then said. "Um... how are you even eating?" Exactly! These people don't have a clue what our real situation is. #2 Stay away from debt companies. They wouldn't have jobs if it weren't for people like us.


Debt settlement companies are not the way to go either. They are making a profit off you and crushing your credit score. Which you wouldn't need if you used cash all the time but lets face facts... you don't. Also your credit score can not only effect buying stuff but, also getting a job and renting an apartment. So before you do something stupid like work with one of these companies or even worse, claim bankruptcy, there are people worse off out there and making it work. #3 Debt settlement and bankruptcy ruin your credit report so DON'T use them!

Lastly, sit down and make a budget... or talk to someone you know that is good with money.  NOT the person with new Lexus... they are probably Hood Rich like the rest of America. Talk to people you know and love for help... not giving-you-money-help... just someone that can show you, you aren't as bad off as you think. #4 Work with what you got.. talk to someone that is good with money for help.

That's it folks... let me know if you like it! 

Make More or Spend Less

There is only 2 ways to have more money... make more or spend less.  So where do we draw the line between making money and enjoying our job?

I love my job. I love working with numbers all day... I am pretty sure no matter where I was working, as long as I am working with numbers (and not customers), I would be happy. The people I work with are great and my bosses are amazing.  However, there isn't room to move up... or make more money at this time.

If I had an opportunity to work elsewhere as a CFO making $100,000 would I take it? The only reason I would take it, is for the money, so is that a good reason?  I wouldn't be able to predict if I would be happy there or if I would like my boss and co-workers. But $100,000?!  Would I be crazy to pass it up?

Think about all the reasons you like your job... or all the reasons you don't like it.  Could there be a better opportunity out there for you?

Actual Spending - Feb... zoinks!

The final numbers are in and February, also known as the shortest month of the year, was worse than January!
 

February summary:
BILLS:
Student Loans Paid			4276.23
Mortgage			1427.73
Credit Card Payments			250
Car Payment			502.52
Utilities			449.04
Food			1131.55
Gas			383.53
Travel			350.48
entertainment			153.62
Charity			50
medical - vet			278.85
dues			35
hair cut			9.99
sheets			4.36
TOTAL SPENT IN FEBRUARY:			9302.9

A couple trying to pay off debt should not be spending $1,131.55 in FOOD!!!!  Holy shit! My next post is going to be about losing weight!  Gas is high because of multiple trips to the mountains, including one with a 4 hour drive there and another 4 hour drive home.

Odds and ends: $35 for some unnecessary university alum dues. $278.85 in vet bills because our oldest dog didn't eat breakfast one day. We had to get blood work and heart worm done. $153.62 on various entertainment expenses like movies, music, $70 50 mile race fee (my husband). 

The good news is that his haircut was only $9.99 because of a coupon to the Hair Cuttery and we bought another set of much needed sheets for the guest room for $4.36.... they were on clearance and then I had 2 gift cards. 

Oh where, oh where, has all my money gone?

All numbers aren't in yet folks, but in the mean time I am trying to figure out how to pull off March.  Yes we have enough to pay the bills but we only have 45 days until our $5,000 tax bill is due.  Eeeek!

A few things to look forward to this month are the $60,000 government loan payment from the feds. Which means we get to skip a few of the qualified loan payments and dump the remainder into our highest interest loans.  And Dave Ramsey Live!!!!  Oh Yeah!

Other money worries this month? Another family trip to visit us, a hockey game in Denver, and St. Patty's Day.  St. Patty's day is a major holiday in this family so a few green pints are inevitable.

Budget to be posted soon.

February was a Disaster

Wow, February ended up a huge disaster!  What could have been a decent, but over budget, month turned into a black hole sucking any extra money into its vortex.  I don't have the exact numbers yet but I will.

Family just left.  We spent $600 on a condo in the mountains, blew a ton of money on gas and food... thinking about it makes me sick. Especially with a $5000 tax bill. Time to do some fancy accounting for March... Stay Tuned!