Looking for some financial accountability

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anonymous user
Registered: 12-31-1969
Looking for some financial accountability
9
Mon, 08-06-2012 - 9:11pm

Hi,

I am brand new to this board and brand new to doing Dave Ramsey's FPU Online. We just got married last month, and I'm bringing in 2 adorable little children from a previous marriage. We really want to get debt free and get our finances in order, as we're currently buildling a home. Currently, we have 2 car loans and 2 credit cards totaling about $25,000. We have $50 in savings. If anyone is familiar with Dave Ramsey, we have just started his baby step #1, which is build up $1000 in an EF. I'd love to hear any hints or ideas or ways to help keep me motivated and accountable to achieving our goals..It's really hard when I see a great piece of furniture or some gorgeous pillows I would love to buy for the new house and stay focused on the path of debt free.

 

Thanks!

iVillage Member
Registered: 03-15-2012
Tue, 08-07-2012 - 9:52am

Hi there!

Well, you have come to the right spot to get support.  This is an awesome group of people here.  I started changing my shopping habits a few different ways.

First, if you have not already write down your goals and the cost involved.  (ie $1000 EF and other goals, pay off debt and then what? vacation?  retirement?  etc).  Then when you go shopping you can ask your self does spending $20 on this pillow get me to my dream vacation or get me to my $1000 EF sooner?  I often ask myself would I rather have the immediate satisfaction of buying this item right now or wait or is taking a vacation to Mexico with my family more important to me?  I also ask myself things like is having this pillow REALLY going to make my life better/make me happy or will having money in the bank (financial security) ultimately make me happeir (less stress, contribute to sense of well being for me) .  Asking myself these types of questions usually helps me to stay on track with my spending.

If you have not already, track all your spending.  You would be amazed at how much $$$ slips through your fingers.  The first time I tracked many years ago I was shocked to discovered that I bought $40 in magazines a month (this was many years ago).  My dh found out he was spending over $120 a month for take out coffee when we first got together 15 years ago and quickely changed that habit by taking a thermos of coffee with him on the road.  Only when you know where your money is going can you make the changes and set up a real budget.  You can look for ways to cut spending on things like phone, cell phone, cable by cutting down on services and looking for cheaper deals etc.

I am not familiar with Dave Ramsey method but sounds like a great place to start.  Just keep the bigger picture in mind (financial freedom) and that just may help you stay on track with your spending and savings goals.

Sandra 

iVillage Member
Registered: 08-24-2007
Tue, 08-07-2012 - 10:01am
Hi Mama and welcome to the boards!

I think most of us are familiar with the Dave Ramsey FPU. I'm currently on step 3 (3-6 months of expenses in savings). I paid off $16,400 in credit card debt in 2 years and have been debt free for almost 2 years since.

My biggest tip for you would be to constantly reinforce your goals. This can be done in a number of ways: keeping spreadsheets of your progress or your daily expenses; reading lots of financial books; watching financial shows on tv. By doing this, I was constantly reinforcing my behaviours and learning at the same time.

I can completely relate to wanting to purchase home furnishing. I am happy to report that after paying off my debt, I've completely redecorated my home office ($2,200) and I've bought the most perfect coffee table ($65) all with CASH. Once the debt is gone, you will be able to start treating yourself to these household indulgences. Believe me, paying in cash makes the process of buying new furniture so much more pleasurable. There's no regrets later (by seeing a credit card bill) and now worries about how to afford the item. It leaves you completely guilt-free so that you can truly enjoy the purchase.

You may also want to joing our "Monday Accountability" threads in which we come-clean on any purchases on the weekeends. It keeps you honest!

Best of luck with you financial journey!

Kate


empty purse

iVillage Member
Registered: 03-15-2012
Tue, 08-07-2012 - 10:08am

I agree with Kate.  There is a certain satisfaction for paying cash for purchases knowing that I am not causing more debt or keeping myself from obtaining or staying financial freedom. 

Sandra

iVillage Member
Registered: 04-10-2003
Wed, 08-08-2012 - 3:19pm

Hello and welcome!

You will find a lot of great people on this board with a lot of experiences. I've been on the board for a few years and have been up and down with my debt. When I started I had almost $35K in student loans, $16K in car loans and over 10K in CC loans. I am now at 20K in student loans, 13K in HELOC (I had a furnace/ fence issue this year that I couldn't put off), 8K in car loans and NO CC debt :smileyhappy:

I just funded the efund back to $1K and am now reevaluating my plans.

My biggest tip is SINKING FUNDS. They have literally saved me on numerous occasions. I have a lot of one off expenses (i.e car registration, vet bills, medical copays) and these were budget killers. I started putting $20 a paycheck into a separate account that was designated for these expenses. Over time, I have been able to build up that contribution and I now have several accounts (Car, House, Gifts, Pets, Vacation, Medical, Planned Spending, Efund), and I contribute $260 each pay to these. It really helps because even though these expenses are irregular, they do come up and need to be accounted for.

I slowly increased my contributions when I got a pay raise, or if I was able to negotiate a better price on cable, the difference went to the sinking funds. I keep them in an ING account so I can't raid them in a moment of weakness, but can get them in a day or so.

Good luck! You can do this!


Bex -

iVillage Member
Registered: 10-09-1999
Thu, 08-09-2012 - 4:23pm

Hi & welcome to the board.  I have been here for a long long time, it is a wonderful board full of support, help & ideas!  I LOVE Dave Ramseys program & no nonsense ideas.  I see you are newlyweds, I on the other hand have been married almost 30 years to my highschool sweetheart...after years of being in debt for new boats, campers, pickups, cars, 4 wheelers etc, we finally wisened up & got busy.  We've both been so lucky with wonderful jobs & income but always spent more than we should & ALWAYS had consumer debt & credit card debt.  We've been debt free now for several years except our mortgage which is down to $50,000 & we are starting to throw extra $ at it & we also have $7500 in EF & are continuing to build it & we are saving for retirement each month.  We own 2 nice vehicles a 2008 Toyota pickup we purchased new & a 2009 Toyota Venza that we purchased new but no debt on them & no credit card debt either!!  When we got serious to get out of debt we sold a pickup, boat & old Willys Jeep that my husband had restored, selling those things really gave us a boost with our debt repayment.  I truly believe that finances can be the #1 killer of a marriage & that being on the same page with $ & striving to live debt free gives a marriage a breath of fresh air & freedom like nothing else.

Best of Luck!  & Put a plan in place & stick with it!!!

cindylee 

Community Leader
Registered: 08-25-2006
Thu, 08-09-2012 - 5:03pm
Welcome! Everyone has already touched on the basics.

You are in the right place!
Serenity
iVillage Member
Registered: 12-17-2012
Wed, 12-26-2012 - 4:15am

Detailed Financial Reporting

    Internal management accounting is much more detailed than the public accounting information presented for outside investors. Company management usually requires more information about company operations, especially when it comes to financial information. Many managers review their expenditures, asset purchases and payroll expenses to ensure that no money is spent unnecessarily by the business.