Financial Peace University - Part 4

Tonight's post will be short. My wife and I are simply exhausted (mentally, emotionally and physically) from working through our budget homework. We meet with our class again in a couple of days, so we had to make a final effort to push through all of the required forms. It was brutal.

We had to carve out several things from our budget in order to begin to balance. Then, we needed to refine it again and again until every potential dollar was allocated to a specific purpose. Finally, we ended up calculating the percentage of what each classification, such as housing, transportation and food equated to out of our Net Income.

Although we are right on the money in some classifications, we're in trouble in some areas (really?!?). We're in debt, and we never really thought about how "life-draining" credit cards can be. Having all of the monthly payments and balances laid out for all to see is sobering. Likewise, calculating every nickel and dime spent by quick trips to the grocery store adds up to far more than you might think. Change is tough. Thankfully, my God is bigger than our finances.

Good Night

Financial Peace University - Part 3

Tonight's lesson from Dave Ramsey was difficult to process. Cash flow and budgeting are hard deal with when you're faced to look your expenses square in the eye and honestly deal with them. If you're married, it can become even more difficult, considering that each spouse may share different priorities.

If we continue to do what we've been doing, we'll always have the same results- and that just isn't good enough anymore. No matter how bleak the situation, or how deep in debt we find ourselves, we need a plan in order to navigate through these financial waters. Budgeting is not a straight-jacket. It's the detailed plan that carefully allots each months' income to a specific set of tasks.

A properly planned budget includes the necessities, but also incorporates entertainment, "walking around money", potential vacation funds, special purchases and repairs. A budget actually represents a path to freedom, not bondage! When executed properly, with discipline over time, we can move from a life ruled by debt, to one where goals are accomplished and dreams are realized.

We're starting off at step 1. Here's where the rubber meets the road...

Good Night