Total money makeover.
Not familiar with Dave Ramsey principles? He wrote a book called The The Total Money Makeover that just resonates with me. Right now, I’m getting the “Baby Step 1” back in order in just a regular savings account. I also just set up additional checking and savings accounts to help with our budgeting.
Here is a layout of all my accounts:
- Joint account (it’s the main account we use the debit cards on regularly and pay all bills from except below)
- Home Maintenance
- Car maintenance/repairs (someday also a car replacement contribution), registration (in hindsight we should have done a free checking on this)
- Insurance (we pay twice a year)
- Gifts for birthdays, weddings, and Christmas
- Emergency fund ($1000 for now, someday 6 months of expenses at BS3)
I transfer out the funds as needed to the joint account from savings, usually it’s not regularly. We treat all of the savings accounts as sinking funds. More on that later.
Has debt really blessed you?
Has debt really BLESSED your life? Paying that car payment every month instead of building wealth? Throwing hundreds of dollars at credit cards you used–to buy crap that you didn’t even end up really liking? (I’m looking at you, Target shoes and lipstick that shouldn’t wear off…) It’s been even worse since the build went to poop and everything was way more expensive than we had planned. I honestly don’t care what anyone else thinks anymore. You shouldn’t care, either. I truly hope that this time I don’t let myself down and wonder why I’m still a mess two years from now. So here’s the scoop. We make good money. We suck at managing it.
How you get started: Baby Step 1
Baby Step 1 “BS1” is easy. Put aside $1000 for an emergency fund. It should take more than a few months. The concept is if you can’t fund this quickly by tightening the budget, sell things around the house to the point the kids think they’re next!
We had a larger emergency fund and so we’re supposed to liquidate that and put it towards debt to be truly “Dave Ramsey” and I’m not ready. But I get it–that pain is supposed to be there and assist in the behavior change.
Goals for January:
- I need to get Baby Step 1 (BS1) funded.
- No spending other than absolute essentials and required debt payments.
- Menu plan for month, keeping balance between cost and nutrition needs.
- Track budget through Every Dollar app.
- Have weekly budget meetings with my husband (he hates these).