the 700 club

After reading the latest press on the 700 billion dollar bailout I had to wonder whose fault is this whole thing anyhow. What if we start back at the beginning of the story:

Well that might be a bit to far back, something more like this

That's a better representation of what's going on with today's American population. You see, I'm not saying it is a bad idea to make money or even chase after it a bit, but it is the spending habits of our countries people that are getting us into trouble. Many individuals have their paychecks locked in debt before they even receive them. Ultimately, this often turns the steward to what looks like a free ride, the credit card. We think we'll pay it off as soon as we get the bill, but then something inevitably comes up and a balance begins to grow.

At one time in history our nation was the great lender, but now we are debtors, comprised of leaders and non-leaders alike rowing upstream against the grain of common sense. So waht now, how can you be safe from losing your possessions on earth? OK, are you ready for this one:

BUDGET

A description of a financial plan. It is a list of estimates of revenues to and expenditures by an agent for a stated period of time. Normally a budget describes a period in the future not the past.(Econterms)

This can be a very scary thing especially if you have never in your life even balanced a checkbook. (The money is automatically deposited, the bank will tell me when I run out, and then I'll just rely on Raman.) I promise you, there are many people in the same shoes as you, but creating a financial plan is not a something to fear, it is something to practice.


Dave Ramsey is a gentleman that everyone should have the privledge of hearing about. He is an author, a radio host, a speaker, and even a family man. What I love about Dave is that he speaks from experience, he knows what it is like to hit rock bottom because he has hit it. I believe that he is revolutionizing the way that people are attacking their own debt with a philosophey that is both tried and true. Take a sip below. If you like what you hear, their a whole pitcher of practical living at the other end.

SO...what did you think? Have you been there? did any of his words hit home? I remember the first time my husband and I got serious about creating a financial plan. I would sit down at the beginning of each month and write out a beautifully articulated budget, show my husband, and then tuck it away to be worked on the following month. Two problems:

• I created the budget on my own
• I tucked it away for the next month

We wanted to pay off our debt and figured if we wrote out our budget, the rest would fall into place. Not exactly. Instead we continued to pay for things with our debit card, make extra purchases when we saw things we absolutely had to have, and tried to keep up with the Jones'. It wasn't working because we weren't working. About a year apart from each other we attended a workshop hosted by our church called Good Sense which initially fired us both up,

but we were never on the same page.

Finally after five years of feable attempts, two moves, one child, and several cars later we found ourselves desperate to become "Debt Free" and joined together to change our pattern of living so that we could experience the difference that "living like no one else now so that later we can live like no one else" actually feels like. We committed to Dave's Plan found in the Total Money Makeover in Sepember of 2007 with nearly $14,000 in school loan debt. Our first step was to create an emergency fund, $1000 for that rainy day. We then sat down and wrote out our budget together and pulled it out weekly to see where we were. Each month we would make changes, pinching numbers in places and expanding in other places. We started living with cash only, planning our menus weekly, and talking about our purchases before making them. This takes discipline, but the benefits we are reaping are well worth it. After just over a year, we will be paying off the school loan (yippee) and begin setting aside 3-6 months of living expenses. I cannot describe to you how wonderful it is to nearly be free!

Now its your turn! Use the Baby Steps to get your finances in order and on track. Then pass them on to someone you know and help change their life! (Financial Peace University)

$1,000 to start an Emergency Fund

Pay off all debt using the Debt Snowball

3 to 6 months of expenses in savings

Invest 15% of household income into Roth IRAs and pre-tax retirement

College funding for children

Pay off home early

Build wealth and give! Invest in mutual funds and real estate