122. Tutorial "Quick-Start Budget" - YouTube

Tutorial on how to create a "Quick-Start Budget". Hope this helps! Leave a comment, like, and share!

To find the form go to: http://www.daveramsey.com/tools/budget-forms/

“Budgeting for the first time can be scary, but you MUST face your fear.”

“Doing a budget means learning an ancient and powerful word: NO!”

#TMMChapterFour #Budget #Budgeting #MonthlyCashFlowPlan #FinancialFreedom #DaveRamsey #TotalMoneyMakeover #Eaglesoaringhigher

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121. Zero Based Budgetting

Are you on a budget? Have you heard of zero-based budgeting? Why not try a zero-based budget today?

I've found the concept of a zero-based budget to be pretty simple and very useful. The basic concept is: income minus expenses equals zero.

Or... I'm more visual so here's how it looks:

Income - Expenses = $0

That way you know where every dollar is going and every dollar is accounted for. Not knowing where money is going hurts our financial situation, causes stress, and often means we end up with a shortage at the end of the month.

So… Here’s what I’d do:

1. Take a sheet of paper and list all your income for the month. Paychecks, side jobs, child support, etc. Then add it all up.

2. On the other side of the page write down every expense you have each month. This can include rent/mortgage, food, gas, car insurance, internet, cable/satellite, kids school expenses, and everything in between. Every month your expenses will vary so you need to adjust this on a monthly (or weekly/bi-weekly basis).

3. If the income doesn’t match the expenses don’t freak out. This just means you need to do something to adjust one of the numbers down, up, or possibly both.

4. If you spend more than you make you’ll need to make some cuts to help make your income match your expenses.

5. You should have $0 left over. Meaning if you end up with $50 ahead you haven’t finished your budget. Put the $50 towards a category be it your savings (emergency fund), your debt, another expense category, or something else.

6. Remember you are the boss of the budget. It doesn’t control you. You control the budget and adjust it as needed. It is a guide to help you win with money. :)

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120. Tips to Save Money - Part 14

What are some of your tips to save money? Here’s some personal experience on great ways to save an extra buck. I'd love to hear your tips! I have a list of about 60+ tips to save money. This is part 14 tips 51-53. I hope you enjoy!

51. Ditch Delivery Pizza.

Buy frozen pizza at the store. Save $10-20 by pre-heating the oven and cooking at home instead of using Papa’s. Where we live you can get a large supreme pizza for $7.49 or a large cheese pizza for $6.99 at Aldi’s, Sam’s, or Costco.

52. Skip the Ice Cream Shop

Buy your ice cream at the grocery store. Typically, you can get 3 to 4 times the ice cream for your dollar at your grocery store. 

53. Invite friends over instead of going out. 

Have friends over for a cookout, potluck meal, tacos, or homemade pizza, etc. Great time to hang out playing games or watching a good movie.

See the full list of tips to save money for the other tips and parts! Leave a comment! 

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119. Re-Thinking Finances - Part 2 (Total Money Makeover)

Time to continue re-evaluating some things based on what I’ve learned from “The Total Money Makeover” by Dave Ramsey. Be sure to check out part 1 too. 

Here’s part 2 of what I call “Rethinking Finances”:

D. Cosigning Loans

It is said that you are helping by cosigning a loan for a friend or family member. While it may be helpful for people trying to establish credit, be ready to repay that loan. The credit union, bank, or lending financial institution wants a cosigner for a reason. That reason being that statistically speaking the lender doesn’t expect the friend or family member to pay. If the friend or family member doesn’t pay on their loan it will seriously negatively affect the cosigner’s credit as well. And if the friend or family member doesn’t pay the bank will come after the cosigner! (TMM, Ch. 3)

“We continue to believe the myth that a loan to a loved one is a blessing.” – Dave Ramsey

“This sums up cosigning; broken hearts and broken wallets.” – Dave Ramsey

Here’s’ some passages in the Bible that speak to this issue of lending money to family.

One who has no sense shakes hands in pledge and puts up security for a neighbor.
Prov. 17:18

The rich rules over the poor, and the borrower becomes the lender’s slave.
Prov. 22:7

Do not be a man who strikes hands in pledge or puts up security for debts; if you lack the means to pay your very bed will be snatched from under you.
Prov. 22:26-7

E. Cash Advance, Rent-to-Own, & Payday loans

Cash advance, lay away, payday loans, rent-to-own, title companies, and pawn stores help lower-income people get ahead. Absolutely false! These businesses are designed to take advantage of lower-income people in "helping" them buy or spend what they can't afford. The only people who make money are the salesmen, managers, repo men, and owners. (TMM, Ch. 3)

“It is human nature to want it and want it now; it is also a sign of immaturity.” – Dave Ramsey

Towards the end of my nearly decade-long career in the retail industry, the company I worked for began a partnership with a rent-to-own company. With our company customers could expect to pay 21 to 29% interest. If the customer didn’t qualify for our store credit they were directed towards this rent-to-own “alternative” where they could pay 3-4 times the value of the product. A $500 Plasma TV through our company would’ve cost anywhere from $750 to $1000. But a $500 Plasma TV might end up costing the customer $2000 or more with the rent-to-own company. 

“These types of businesses are legalized loan-sharking.” – Dave Ramsey

“We buy things we don’t need with money we don’t have in order to impress people we don’t like.” – Dave Ramsey



How have you been rethinking finances recently? Have you read "The Total Money Makeover"? 

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118. Re-Thinking Finances - Part 1 (Total Money Makeover)

Time to re-evaluate some things based on what I’ve learned from “The Total Money Makeover” by Dave Ramsey. Here’s part 1 of what I call “Rethinking Finances”:

A. Debt Consolidation

Debt consolidation is the answer to your financial problems right? It will save you on interest and you'll have a smaller payment. But hold on a minute. The truth is by consolidating debt you are typically just extended the terms of the payments. (TMM, Ch. 2)

In other words, for example instead of paying $500 a month for 20 years ($500 x 12 months x 20 years = $120,000 in total payments) you are paying $400 a month for 30 years ($400 x 12 months x 30 years = $144,000 in total payments). Sure you lowered the monthly payment but you are paying an additional 24k in total payments...

B. Playing the Lottery

It is said playing the lottery will make you rich right? People do it every day expecting the "big payout" where they can leave their job and live the "good life" when they win. Some of my co-workers do this very thing. And they're fairly educated and financially savvy which is a little frustrating. The lottery is a tax on the poor and those who can't do basic math. 

Let's say for example that winning the lottery is one in 175 million. If I recall correctly you have about a good a chance of winning the lottery as getting struck by lightening twice in the same exact place. Very improbable.  Gambling in general offers false hope while taking people's money paycheck to paycheck. Getting rich quick doesn't work. What people need is a "Total Money Makeover". (TMM, Ch. 3)

See this article if you're a nerd like me and want to look at the numbers in more detail. 

C. Loaning Money to Friends or Family

It is said that if you loan money to friend or relatives you are helping them right? Often when loaning money to a friend or relative the relationship will be strained or even destroyed. The relationship becomes that of a master (lender) and a servant (borrower). The way I see it is best just to offer a friend or family member a gift. If they pay you back then great. If the debt or gift is not repaid there are no hard feelings. 

Also keep in mind that with friends or relatives that are constantly making poor financial choices may in fact be detrimental or enabling to them. Carefully consider if a gift will help or hinder the person by encouraging bad behavior.  (TMM, Ch. 3)


Be sure to check out part 2 here!

How have you been rethinking finances recently? Have you read "The Total Money Makeover"? 

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117. Do you believe that car payments are a way of life?

Do you believe that car payments are a way of life?

We have been free of car payments since 2011. We bought a 2003 Toyota Sienna last year (2013). Paid $8k for it cash. We were very happy to let someone else pay for the depreciation on our family van. We hope it last till 200k to 250k miles! Still, we are saving a little each month towards the purchase of a new vehicle.

Here's what Dave says about car payments... in Total Money Makeover chapter 3:

“Myth: Car payments are a way of life; you’ll always have one.

Truth: Staying away from car payments by driving reliable used cars is what the average millionaire does; that is how he or she became a millionaire.

Taking on a car payment is one of the dumbest things people do to destroy their chances of building wealth. The car payment is most folks’ largest payment except for their home mortgage, so it steals more money from the {family} income than virtually anything else.

A new $28,000 car will lose about $17,000 of value in the first 4 years you own it. That is almost $100 per week in lost value. To understand what I'm talking about open your window on your way to work once a week and throw out a $100 bill. The average millionaire drives a 2 year old car with no payments. He or she simply bought it.”


From my book review of The Millionaire Next Door:

3. They believe that financial independence is more important that displaying high social status. The authors point out on multiple occasions that millionaires don’t have fancy cars. Millionaires drive the same vehicle for years.

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“There is an inverse relationship between the time spent purchasing luxury items such as cars and clothes and the time spent planning one’s financial future”

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Of interest…

*Over 80% of millionaires purchase their vehicle while the rest lease.

*Only 23.5% of millionaires interviewed own a brand new car.
*A typical millionaire only spends on average $24,800 for his or her most recent car purchase. *About half of the millionaires surveyed never spent more than $29,00 for a single vehicle. 

*Most American millionaires like to buy American-made vehicles such as Fords, Chryslers, Chevrolets, and Cadillac’s.

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