I always like someone who can speak their mind tactfully in an effort to make this world a little better place. When it comes to finances, Dave Ramsey will do just that. Dave is an outspoken financial guru, he doesn't sugar coat the facts, and if one of your 2019 goals is to add a tiny bit more thought and planning into the way you look at your spending and saving... well, Dave Ramsey is a sure fire way to get your little tush in gear.
If you are like me, January is a time where I feel a tiny push to be MORE in every aspect of my life... more organized, more routine, more healthy, more spiritual, more present, more determined, etc.. and after a spendy December month I usually have at least one financial goal that finds its way to my resolutions page. I have been following a few awesome Instagram accounts that have really inspired me to take the bull by the horns, since it is 2019 and we still haven't managed to figure out how to grow money on trees {insert eye roll}.
One of the ways I decided I can manage the change, is by only picking a few small areas at a time to improve on. Since putting all my money into 15 different envelopes each month, didn't seem practical for me, because I knew that my husband would still need to use his debit card, I decided to create envelopes that I add to, not take away from. These envelopes might be labeled, "Back Yard, Car Maintenance/Repair, Home Maintenance/Repair, Medical, Birthdays, etc... I decided to take a piece of helpful advice, and adapt it to what actually would make the most difference for my specific need. For instance, I am not a huge over-spender, I am very aware of my finances at all times and this makes it VERY difficult for me when emergency situations arise. Last week when my husband wanted to take his truck in to get it serviced and a few unexpected things needed to be addressed, I had a very hard time accepting the fact that $400 dollars would need to be coughed up. We have a savings account, but I just like to see it grow and remain untouched. So by me putting money aside in these labeled envelopes each paycheck, I will visually be able to see a tiny fund growing that might not cause as much pain when something unexpected needs to be repaired, or we encounter a medical bill or expense that you just can't always plan for.
So don't be afraid to take these helpful tips and make them work FOR YOU. After all, if it isn't practical, it isn't something you will stick to!
Tip 1: Snowball Debt
This is something you can do right now, sit down, and create a list of your debts and order them from smallest amount to largest. It might look something like this:
Hospital: $380
Credit Card: $740
Mattress Store: $1290
Car #1: $11000
Car #2: $23000
House: $275000
I taped my list to the inside of my bill cupboard and I made a very big deal about it to my husband. I didn't even have a plan at this point. I just knew that by looking at it this way, I wanted to eliminate whatever I could, as fast as I could, and I couldn't wait to be able to see it crossed off. I remember we instantly sacrificed just so we could pay off the very smallest item. It didn't even seem hard to do, and we didn't even think twice about it. Sometimes itemizing them helps you realize that your debt really might be more manageable than you initially thought.
Tip 2: Income Vs. Spending
Now that you have quickly glanced at your first debt minimizing goal, write down where your money is actually going each month. Sometimes I like to just look at the month previous (probably not around Christmastime...) I write down how much money we actually spent eating out, on groceries, on gas, on entertainment, monthly subscriptions, bills, and so forth, this helps me see realistically what actually happened, not just what I am guessing happens. Then, I write down how much money we made and subtract how much money we spent, I usually end up typing it in the calculator a few times because obviously I made an error when I realized how much money we spent in ridiculous places.... after getting the same outcome each time I gasp, frown, scratch my head, and immediately vow to never eat out ever again....
I take this time to start cancelling things we don't use or NEED. There is no shame in calling around to get a better price on gym passes, or TV or insurance providers. You really might be surprised how much money can be saved with one afternoon's worth of effort.
Tip 3: Meal plan/ Grocery List
I always feel so defeated by meal planning because sometimes your week just DOESN'T always go the way it is planned. I have started a new approach where I don't write down what we are eating on specific days, I just write down what meals we will be making that week. I plan my grocery list according to those meals and then during the week I decide what to do cook based on how crazy our day ends up being. We always have the ingredients on hand, I don't end up feeling like a failure and we end up eating out less because we have everything we need on hand to have a simple and more nutritious dinner.
Tip 4: Create A Budget with the Envelope System
This tip comes from Dave Ramsey's website. By creating a zero budget system using cash, you are setting aside exactly the amount of money that you have allocated for each specific area. This helps create a visual so you aren't just swiping your card and not realizing how quickly it can add up. When you are handing out cash for things, it is said that you are way less likely to splurge on items that you might not really need. This method can also be used with a non-cash system, it would just require more discipline and diligence on your part.
Tip 5: Unsubscribe From E-mail Deals of the Day
Have you ever laid in bed on a cold winter morning, doing your aimless phone scroll and you get that "Deal of the Day" email and suddenly realize all of the things in your cart were just paid for with one simple click. Life sure was different for me before the checkout with PayPal option.... ammm I right?!
Unsubscribe from the temptation. More than likely, there will always be a good deal somewhere, and again soon, so when the time comes that you really need something, you will probably find yourself better to just cross that bridge when you get there.
Tip 6: Have NO SPEND Days
My husband and I enjoy this challenge throughout the month. If you are a planner, or like to visualize your accomplishments, you could even create a bubble calendar that you can black out each day of the month you were able to not spend any money. Obviously, this doesn't include bills, it includes your morning Starbucks run, eating out, shopping, etc. It really is harder than it sounds to just leave that pretty little plastic gateway to heaven in your wallet and train your brain to not be so impulsive.
There are endless tips and budget printables that can be found on Dave Ramsey's website. I promise that any amount of change for the positive can create better spending and saving habits. Don't be overwhelmed. Make one tiny goal today and try to accomplish it! Bob Richards is a lifelong fan of Dave, he believes in his methods and knows how reputable his research is. Dave has created resources on his website called ELP's, or Endorsed Local Providers. These include a list of businesses you can trust and depend on to help ensure you are saving the most money and being taken care of. It is a great honor that Bob Richards and Associates is an Exclusive Local Provider for Dave Ramsey. Don't let your financial situation make you feel trapped or stuck if buying or selling your real estate is still a priority too. If you're working on "baby steps" or need a "total money makeover", call Bob Richards for a FREE, no cost/ no obligation consultation. Turn your resolution into a reality through a veteran realtor with over 27 years experience, and CONSIDER IT DONE!
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Written By: Nakelle Prisbrey
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