Goals...Why Bother? (Part 1)

So its that time of year where a lot of people make New Years Resolutions. I'm not sure if you are a NYR type person. I personally tend to make annual goals...however, where they start and end depends on the nature of the goal. I have goals for my son which are tied to his age (birthday).  My husband, who is a teacher tends to look at his goals from school year to school year, so August to June, mostly.  Financial goals tend to be by calendar year (January to December); personal goals like losing weight are ongoing...well you get the point.  The point of this post isn't to get you to make "New Years Resolutions", but just to understand the importance of setting goals in the first place.

So, in 2012, our main financial goal was to put away 3 bills: 1) 401k loan (ugrhh..stupid, don't ever do this), 2) the balance on our Discover card, and 3) the balance on our 2010 Toyota Hylander (the family car we just had to buy when our son was born); totalled about $26,217. I sorta had a plan on how we were going to do this...1) I was expecting a tax return after the sale of our property, 2) annual bonus, 3) I was working on a promotion at work, 4) I was hoping my husband would be picked up by his old school district and reinstated with his previous salary, the list goes on...while some of those things came through, other obstacles presented themselves that threatened to sideline my goal. 

While my tax return and bonus was great, my husband lost his job in May which meant that we had less income then I expected; my son was put in a special education program for half a day, which meant I had to pay more for daycare then I had originally planned;  I agreed to help with my brothers wedding in the summer which I had set a budget for, but it ended up costing us more than planned; advancement at work was less then expected as well; a lot of little things really, but when you add them up it can chip away at your ability to do BIG things that require 100% of your attention and dedication.  Toward the end of the summer, things started to look up...my husband got a new job making more than he did in the prior year (yay), my child was settled in a good school, some other things in my personal life had stabilized, and I was able to get back on track.  So I pushed it hard to the very end...somehow the final bill (auto loan) was paid off.  It literally took all I had to push through to the end.

I guess when I think about it, the important part is that I had a goal in the first place and I never forgot about it. I was a little obsessed about it actually, I kept it at the forefront of my mind...ALWAYS. Even when I had to change course a little bit due to circumstances, I always had plans to resume my goal. In October I didn't see how it was going to happen, but then I got really creative with my budget and just implemented it...when I tried to explain it to my husband his eyes glazed over, then I just said, "trust me", crazy... I would have never done that if I hadn't locked myself into that goal in the first place. Remember you can fall into debt, but you cant fall out of it, you have to put a plan together and stick to it. 

Peace,

MsMoneyGuru

Having problems developing a plan to get out of debt? Want to know who we are doing our debt snowball (like how the HECK did you we pay off $270,810 in 2 1/2 years!)? You may need a coach...MsMoneyGuru is here to help, contact me at msmoneyguru@gmail.com for a consultation.

Hello Out There!!! My Financial Journey Update 12/14/2012

All I can say is BOOYAH!!!!!!

No really, its been a tough, tough year y'all. I mean everything that could have happened this year DID, but we are still here trucking along trying to progress...moving FORWARD (my favorite word for this season). 

So in case you need to be reminded...you can search older posts to be sure...between the last update (March 2012) and today my hubby and I have paid off our 2010 Toyota Hylander!  Yeah!  It feels good.
As you can see from the chart, we knocked out $43,598 in ONE YEAR!

Now all we have left is the student loans...urghhh.

Honestly, those are going to have to wait (a tad)...right now I just want to enjoy Christmas, New Years, and get ready for our 1st real vacation in like 4 years!!!  We are going to Hawaii in 2013...a bit of a bucket list for me, plus I like to stay in the US for a bit...no offense.
As I mentioned earlier, 2012 was like the hardest year of my life, professionally and personally...wow, I'm so ready for New Years! 
I have loads of updates and insight to share in the coming months...more to come...

MsMoneyGuru

Having problems developing a plan to get out of debt? Want to know who we are doing our debt snowball (like how the HECK did you we pay off $270,810 in 2 1/2 years!)? You may need a coach...MsMoneyGuru is here to help, contact me at msmoneyguru@gmail.com for a consultation.

Just Paid Off Some Debt So Why Do I Feel Broke?

I use to "feel rich" even though I was really "broke", but now I "feel broke" even though I am "richer" then I've been in a long time! 

How does this happen?

For the last few months I have been saving up cash to pay off in full two debts totaling $14,000.  The way it works is, I pay my minimum payments (to stay current), meanwhile I save up money on the side to pay them off completely.

When I finally had enough to kill the two debts, I drained my savings account down to the bare minimum emergency fund to get rid of them. Its only been two weeks since my "expenditure" and with Easter and my mom's recent birthday celebration, it has been an expensive month!

The fact that I was able to pay off these debts (ahead of schedule) and still pay for a holiday and special birthday (it was her 60th, shot out to Mom), I should be happy!  But, I have to keep it real...I feel broke!  I don't have any (cash) money...I cant wait til payday! Even though I knew I was going to pay off debt with that money, it felt good to have it in the bank, now I just want to refill my coffers as soon as possible.

I get paid in two days and next month I will not owe $370 in payments, so maybe I'll feel better then.

Emotional Downside of Being in Debt and then Sacrificing to Pay off Debt:

As some of you know...I am a financial coach and in dealing with clients I find that they have an emotional experience when they consider how much they will have to sacrifice to get out of debt. I mean, no eating out (for the most part), no major vacations, no new clothes, cutting back on personal expenses (hair, nails, spa days, etc.), and having to disappoint family and friends when they can't participate in recreational activities. (And) although I know its totally worth it to honker down and sacrifice to pay off debts, I have to say I totally understand the emotional reluctance...

Sacrificing to pay off debts sucks! I mean its like being on a really strict diet, really!  You are suffering NOW for the cheeseburger and onion rings you had 10 days ago...REALLY!

Although my net worth has increased (debts going down) and I still have an emergency fund...I have to say it sucks to see all that money go to something I already enjoyed... Honestly, I don't even know what it was that I bought with the debt. The first debt was a credit card that I haven't use in over 20 months and it was a little of this and a little of that.  The second was a (consolidation) loan I took out to pay off two other credit cards so I REALLY don't know what the heck I got for all of that! 

I mean...$14,000 just GONE...I beg you all...DON'T GO INTO DEBT...you are sacrificing your future for a moment of pleasure, really not worth it.  If I was debt free, what could I have done with FOURTEEN GRAND???  Oh to think of it makes me depressed...

That's why God says, "the debtor is slave to the lender", so what did I have to do with the money that I earned? Hand it over to my master! 


Something to think about...


MsMoneyGuru




Having problems developing a plan to get out of debt? Want to know who we are doing our debt snowball? You may need a coach...MsMoneyGuru is here to help, contact me at msmoneyguru@gmail.com for a consultation.

Dave Ramsey Comments On My Post About His New House, His Debt Philosophy And Giving, Part II

Continued...Posted By Peter Anderson On June 21, 2011 (9:26 am) In christianity, money

Good Stewardship

In his comments Dave mentions that the money is all God’s in the first place, and that they ask God for guidance on what to do with HIS resources before they do anything.   He mentions that like the rest of us he doesn’t always get a clear answer as to how to proceed, but seeking God’s will is important.
So what does good stewardship mean?  It means using what God has given us in accordance with his will, and using it wisely.  It also means working hard so that we can feed ourselves and our families, while having enough left over to help others as well.

17 Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment. 18 Command them to do good, to be rich in good deeds, and to be generous and willing to share. 19 In this way they will lay up treasure for themselves as a firm foundation for the coming age, so that they may take hold of the life that is truly life.  1 Timothy 6:17-19 (NIV)

 

Wealth And Things As Tools Used For His Kingdom

Dave mentions that they consider their house, and their wealth in general as a tool to be used for His kingdom.  I think that’s a great way to look at how we should view the material things of this world – as merely tools given to us by God to be used to further his kingdom. When they become ends in themselves, they can become more important and we can start to lose our way.

 

Importance Of Prayer And Seeking God’s Will

Far too often we negate the power of prayer, and don’t even think to seek God’s will for our lives, and in our decisions.  When that happens our own sinful motives far too often crop up.  Ramsey touches on the importance of prayer, and seeking God’s will for your life and the resources he has entrusted you with.

We can make our own plans, but the LORD gives the right answer. People may be pure in their own eyes,  but the LORD examines their motives. Commit your actions to the LORD,  and your plans will succeed. Proverbs 16:1-3

 

God Can Use The Wealthy (And The Poor)

I was reading in my Bible study this week about several very wealthy men in the bible – and how they were men after God’s own heart.  There was King David, King Solomon, and then later on I read about some New Testament Christians who had wealth and used it to help others in need.  God can use those who are obedient to his will.

For instance, there was Joseph, the one the apostles nicknamed Barnabas (which means "Son of Encouragement"). He was from the tribe of Levi and came from the island of Cyprus. He sold a field he owned and brought the money to the apostles Acts 4:36-37

Those who have much are called to give much.
We all also remember the story of the widow who gave sacrificially out of faith as well, and how Jesus contrasted that with the showy giving of the pharisees. While God hasn’t entrusted us all with the same financial resources, we can all use our resources to give glory to him.    We should try to avoid giving in order to gain approval from the world or other men, but instead give with godly motives.

 

Humility And Our Need For Prayer

Despite the fact that I believe it’s OK for a Christian to be wealthy, I believe, and I believe Dave understands, the need for humility and a constant seeking out of God’s will. If we aren’t constantly seeking his will, the things of this world can quickly become an idol in our lives, and the money and wealth can become more important than our relationship with Christ.

No one can serve two masters. Either you will hate the one and love the other, or you will be devoted to the one and despise the other. You cannot serve both God and money."
The Pharisees, who loved money, heard all this and were sneering at Jesus.  He said to them, "You are the ones who justify yourselves in the eyes of others, but God knows your hearts. What people value highly is detestable in God's sight.  Luke 16 :13-15

As the verse says, God knows our hearts.  When we try to justify ourselves in the eyes of others, and use money and position as a justification of our worth, and not our relationship with Christ, that’s when we start to focus more on ourselves and our own self-importance, and not God. It’s something we all need to guard against.

 

Conclusion

Whether or not you agree with Ramsey’s decision to build such a large house, I think there are things to be learned from this situation, such as our need for Christ, the importance of prayer and God’s guidance in our lives, and our need to be justified only in Christ, and not in the eyes of others through our money and possessions.  We need to focus on Christ.

MsMoneyGuru

Dave Ramsey Comments On My Post About His New House, His Debt Philosophy And Giving

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Dave Ramsey Comments On My Post About His New House, His Debt Philosophy And Giving


Posted By Peter Anderson On June 21, 2011 (9:26 am) In christianity, money

A few months ago I published a post about how financial guru Dave Ramsey had built a beautiful new multi-million dollar home in an upscale neighborhood in Tennessee.  When I wrote the post I intended to focus more on the fact that Dave Ramsey had built the house without any debt of any kind, and wanted to hold it up as an example of living a financially responsible life.  I thought it was pretty cool that Ramsey was practicing what he preaches, and was living a cash only lifestyle.

Soon after I wrote the post the comments section quickly took a turn, and the comments turned from a discussion of paying cash for a home, or living a cash only lifestyle, to a discussion of the ethics and morality of buying such a big home when you don’t need it, and whether you can be a witness for Christ when you have such wealth.

There were some comments that I believe made salient points about how we need to guard against allowing our wealth and possessions to become an idol in our lives, and about how we as Christians always need to be looking to Christ for guidance in our lives to make sure we’re being good stewards.


Photo  copyright coolsprings.com

There were other comments that I think were extremely judgmental, that were assuming the worst about Ramsey and essentially saying that he was making money off the misery of others and that he wasn’t a good witness for Christ.

I was thinking about closing the comments on the discussion because it was starting to devolve a bit, when Dave Ramsey himself decided to stop by and comment on the discussion to shed some light on the situation.

Dave Ramsey Comments On His House, His Debt Philosophy, Giving

It was obvious from Dave’s comment that he had read much of the discussion, and I’m sure some of it was pretty frustrating to read.  Here is what he said.

I just found this discussion from a twitter link. Wow. Thanks for all of your concern about my soul, my reputation and my witness. Please continue to pray for me because wisdom is sometimes elusive. The teacher in me has to reach out and help with proper biblical and life view points for some of you.

First, None of this is any of your business nor is it your problem, however in an effort to teach I have always been overly transparent. So I will try to help.

1) We tithe 10% of our before tax income to our local church
2) We have a family foundation that God allows us to give many times what our personal home or other items cost, so we give much more of God's money to his kingdom that we live on percentage wise.
3) No Gary, we don't have any debt any where of any kind. No corporate debt, no credit cards, no mortgage debt, no blind trusts, and no kind of debt no where no how. Didn't you hear? I don't believe in debt.
4) Before making a large purchase of any kind we ask God if that is what he wants us to do with HIS money. Like you I sometimes hear clearly and other times I am not sure. In the case of our home I was very sure.
5) Our home is a very small percentage of our net worth.
6) In the two years we have lived here we have had many many functions to fund raise for ministries, charities, and community causes. Millions of dollars have flowed through those events. We view our home, like everything in our life, as a tool to be used for the kingdom.
7) Yes, it blows my mind how much it costs to maintain a lot of things God has called me to manage. We have a 64,000 square foot office building (paid for) that we spend a lot of natural resources and money to keep operating and from where I came from it is sometimes hard to emotionally grasp the zeros. However, I man up, and step up to do what God gave me to do. It is weird some days though.
I used to say ignorant things like "what does anyone need with a ______ like that” when I was immature. Now I have been blessed to see how God uses people who are obedient when they are broke and when they aren't. I was with a really Godly guy a few weeks ago worth 2.2 BILLION. He gives 300-500 million a year. Some of you sent him hate mail worried about his soul because he bought a $110,000 car. That does not make him wrong, that makes that person silly, foolish, and spiritually immature. Note: God gave HIM 2.2 Billion to manage, God did NOT assign you to help.

Thanks again for your concern and please continue to pray for me as I am perfectly capable of messing this whole deal up. So far though, I am not inconsistent between my message and my life. So far I have managed to keep God First, Sharon Second, my kids third, and serving all of you fourth. I am having a blast and I thank all you who do understand.

P.S. I will not be visiting back to see your comments because I already know what they are: Some get it, Some don't.

Yours In Christ,Dave Ramsey

To Be Continued...

What do you think about what Dave Ramsey said? Do you think its for any one to say what is "too much" for someone else?  Especially if they are doing it God's way...

MsMoneyGuru

My Finance Journey...Update 3/31/2012

Thought I would do a quarterly update to our Financial Freedom progress...

In the last few months we were able to put to bed two more accounts. We are completely out of credit card debt and only owe on our car loan!

See our progress below:

 
 *I want to note that I don't count a debt as paid off until it is completely paid off. Therefore, while the starting number is accurate, the debt still owed is actually less due to ongoing monthly payments.

See our current debt category's below:

As you can see we have a beast of student loans to tackle!  My husband and I both have undergraduate and masters degrees, so this category is a substantial portion of our debt load.

We also sold our rental property last year, which help to eradicate $185k of the $430k we originally owed.

For those that think its not worth the sacrifice to pay off debts, take a look at the monthly savings alone.  We have more than $2,800 in extra income that is not going to bills!  That's money that is now going to pay for retirement, emergency fund, taxes, fun, giving, and of course to pay off more debt!  LOL

More to come...we can finally see the light at the end of the tunnel!

MsMoneyGuru

Another One Bites the Dust!

Our Journey keeps getting better...

Paid off our last credit card this month!

Should have another item wiped off by the end of April...

We are KILLING it!

MsMoneyGuru

Credit Card Offers, They Keep Trying!

So, my husband and I have been on our Debt Free Journey since August 2010, that's about 19 months.  Meaning that was the last time we used a credit card or loan or anything related to debt. When we started all of our credit cards were close to maxed.  Capital One was one of the first credit cards that we paid off, it had a low limit/balance.

As you may know, as you pay debt off, you start to look more desirable to banks, and they start sending you offers again. About 6 months ago, the offers started pouring in...

Here is an example of one:

In case the print is too small:  They are trying to convince my husband that he needs a little cash....

They say "Get 0% APR for 12 months with these checks!"  The checks are attached...

"There are times when you need a little extra cash. With your Capital One account ending in xxxx, you can get the cash you need at a low 0% APR for 12 months."

The offer goes on to mention that although the offer is for 0% APR, they will charge us a 3% transaction charge...TRANSLATION: Instead of charging you interest throughout the next year, we will just charge you up front (how convenient).

They also tell us that these checks are for necessary expenses.  I love how they draw a picture of how simple it is to get this FREE money! In case I can't read...LOL

Thank God, we started getting smart with our money! This use to be so tempting to me! I mean...0% for 12 months! Even 3% is cheap money--the old me might have borrowed it Just In Case (because you never know when an offer like this may come your way again). BUT because we changed the way we look at money, we have saved over the past 19 months an emergency fund.

So for the amount of money that is available for us to borrow with these checks at 3%, I have more then that amount sitting in my savings account ready for me to borrow at a true 0% interest rate, oh and I can take my time paying myself back...genius.

What's in your wallet?????

CASH

MsMoneyGuru

My Financial Journey...

Back in 2010, my husband and I started on our journey to Financial Freedom...

We had done all that we were suppose to do...gone to school, secured professional jobs, but we had barely any savings and was barely living paycheck to paycheck. It was one of those moments when we looked at our situation and realized "something had to change".  We were sick of it!  So we started on our journey inspired by Dave Ramsey's Total Money Makeover. Now, I have shared in the past our journey through real estate hardships. But I never gave you exact figures...well, here is the closest to details you can get.

When we started our journey, my husband and I owed a total of $430,379 in debt!

Here was the breakdown:

See, prior to our revelation we never really considered auto loans, student loans, and rental property to be "bad debt", but after realizing how much per month it was costing us, we decided to conquer our mountain.

As of today, our journey continues, but we have made significant strides in the last 18 months.

Check it out!

The journey continues...

MsMoneyGuru