This is a bit of a cliché but the book that really started me to think seriously about by finances is by Dave Ramsey. Have you heard of him before? Perhaps his podcast or from a friend?
This book is called “The Total Money Makeover”
His book and books basically tell you how to pay down your debt, one baby step at a time. He’s well aware that you cannot drastically change everything overnight. You need baby steps towards paying off your debt or not spending as much..whatever your money goal is.
He is, of course, a good story teller. He does not lecture about all the steps to take. He inspires you with other people’s stories and makes you believe you can do that too.
The “B” word
“Budget” His app “every dollar” is amazing for me, a real game changer. I manually enter ALL my expenses in there and my daily purchases. I chose the free option but there is an upgraded version that will link up to your bank account but you have to pay for the convenience.
I know people hear budget and they have the wrong idea ! They think “there’s no way I can go on a budget” or “my husband would never go for that” or even “I’m not good with numbers.” I would love to hear what you think of when you hear the word budget..restriction ? Limited? Misery? No time for that ?
The words that really should go with budget is “control of your own destiny,” “reality,” “freedom,” “opportunities.”
I only wish I did it sooner! My bill payments are automated, my savings are automated and my worries are lifted. My desire to buy buy buy has dwindled down to little but I do have a small lie, my desire to buy has turned into “will this purchase make me some money ! “
Budgeting is amazingly eye opening. So many people tell me how they don’t buy much and they are not spenders but when I ask them if they do a monthly budget they say no. Do you know what that most likely means? They are spenders in denial. I know because I was just like them. Always justified my purchases, even the expensive ones. I didn’t think I spent a lot, just a shirt every now and again. Just $50, what’s the big deal?
Paying OFF Debt
The big deal was that I couldn’t actually afford it, instead of paying down my education loan or home equity loan, I was buying clothes I didn’t need. This book helped me realize that I can do much better.
I have done much better! I also have had promotions and raises so that definitely helped too. But I learned the credit cards points aren’t worth it, I just put my utilities on there and online purchases only. I immediately transfer the money into a savings account and then when the bill is due, I actually have the money to pay it in full !
I have paid off about $35,000 in debt but I still have my educational loan. My car is a couple of months away from being paid off! In my next post I will talk about how I am getting myself in debt again but not like you think so stay tuned!