Money- Americans have made this such a taboo subject- read Suze Orman's words... talk to your kids about money all the time. We don't share our ideas, what works, what doesn't work enough!
Budgeting is major adulting, and it's FUN! It's empowering, and by logging every dollar- you have more control to get out of debt, save, or buy fun stuff! (Same goes for weight loss- just log your food intake- #1 rule to dieting).
1) Baby Step #1 Dave Ramsey is KEY- save $1000 FAST! After you have your $1000 then stop using all credit cards you carry debt on. Let's say you need brakes for the car, boom- you have the cash (no need for credit card). Opps, you have tags due next month- boom- use the $1000 fund. I call it the RESERVE fund. It is stored in an saving acct that links to my checking acct. Also- increase your car deductible to $1000- boom- you have it in case an accident happens. (This also lowers your car insurance premium-saving you $$)!
So- go sell stuff, work more hours- even pay the minimums on EVERYTHING and get $1000 fast!
(I highly recommend Dave Ramsey- Worth every penny). Click here to find a class near you: Dave Ramsey: find a class near me
2) Save each month for the YEARLY expenses. This way NOTHING affects the monthly budget- and it's status quo-AKA Boring budget w/no drama. You know that feeling when the Amazon & Costco bill hit the same month- that jaw dropping dramatic reaction- with this, NO. MORE. DRAMA!
Example:
January- YNAB fee $49
Feb: Wine Club $60
March: Tags Car 1: $180
April: TBall Fee plus shoes $100
May: Wine Club $60
June: Zoo passes for year: $75
July: Tags Car #2: $120
August: XM radio: $100
September: Soccer + cleats: $100
October: School pics: $50
November: Amazon Prime: $120
December: Costco $100
So- ADD all that up - then divide by 12 months. Example: $1200 / 12 = $100 a month you need to put in an acct separate from your checking acct! When those bills listed above come up- just move the money OUT of the acct into the checking to pay it. Our family- it's $200 a month (we have a ton of yearly stuff)- but it's nice to know we have the $$ for it. This makes my budget boring! No drama--- I had the $$. So quick....start writing all your yearly expenses down- then go back thru your credit/bank acct looking for more---I bet you will miss things!
Also consider: savings for car/auto (oil changes, repairs, etc), kids birthdays, CHRISTMAS, all gifts, vacations, etc. Christmas for me is critical--- I save $80 a month for the holidays, not just for gifts- but also Christmas dinner, dinners out w/friends, and when we are off work we go more places (we spend more $$). That $960 helps me a TON during the holidays. Back to a boring budget- I had the money in a savings acct!
HACK: My credit union allows me 4 savings (sub-shares) for my checking account. I use all 4 and they have names: Auto, all Gifts, Reserve Fund, and Yearly Payment place. I transfer the monthly amounts into these accts monthly---then just pull the money back to checking with 3 clicks online when I need the cash. BRILLIANT!
3) Use a web based budget tool! Mint is OK, but consider Everydollar, YNAB, etc. I use YNAB and it changed my life. $5 a month- for complete control of your money. It's proactive and you get a full picture. I blogged about YNAB vs MINT in my blog- go back to my home page to find it.
I can show my husband how much we have in the "Eating out" budget, and can show him reports. It's depressing at the end of the year to run a report of where our money went-- our downfalls: FOOD and shopping (random crap we didn't need). It's ridiculous!
YNAB- Click here to get started with a FREE 29 day trial! (I make nothing off this, I just love the program- you will too).
4) Snowball debt! Start with lowest amount owed, pay that off. Then to the next, and keep snowballing the payment to the new debt.
Target Card: $600 (payment $25)
Kohls: $750 ($30)
Amex: $1200
First pay Target, then tackle Kohls. This means you pay the minimum on all the rest until the 1st is paid.
If you want to avoid interest- look for 0% credit card offers-- for 12 months you have 0%---there is a fee- but do the math. You save money this way.
Also look at a credit union for a personal loan. Add up all debt- get the loan at a LOWER % than the credit cards- pay all debt off- then tackle that loan. STOP USING THE CREDIT CARDS - cut them up, freeze them. If you have the $1000 in the reserve acct, you don't need the cards.
If you are Ninja Mom like me and have advice for me--- let me know! I love hearing new ideas, hacks, and other stuff to make my life easier!
-Auggie the Ninja Mom
Budgeting is major adulting, and it's FUN! It's empowering, and by logging every dollar- you have more control to get out of debt, save, or buy fun stuff! (Same goes for weight loss- just log your food intake- #1 rule to dieting).
1) Baby Step #1 Dave Ramsey is KEY- save $1000 FAST! After you have your $1000 then stop using all credit cards you carry debt on. Let's say you need brakes for the car, boom- you have the cash (no need for credit card). Opps, you have tags due next month- boom- use the $1000 fund. I call it the RESERVE fund. It is stored in an saving acct that links to my checking acct. Also- increase your car deductible to $1000- boom- you have it in case an accident happens. (This also lowers your car insurance premium-saving you $$)!
So- go sell stuff, work more hours- even pay the minimums on EVERYTHING and get $1000 fast!
(I highly recommend Dave Ramsey- Worth every penny). Click here to find a class near you: Dave Ramsey: find a class near me
2) Save each month for the YEARLY expenses. This way NOTHING affects the monthly budget- and it's status quo-AKA Boring budget w/no drama. You know that feeling when the Amazon & Costco bill hit the same month- that jaw dropping dramatic reaction- with this, NO. MORE. DRAMA!
Example:
January- YNAB fee $49
Feb: Wine Club $60
March: Tags Car 1: $180
April: TBall Fee plus shoes $100
May: Wine Club $60
June: Zoo passes for year: $75
July: Tags Car #2: $120
August: XM radio: $100
September: Soccer + cleats: $100
October: School pics: $50
November: Amazon Prime: $120
December: Costco $100
So- ADD all that up - then divide by 12 months. Example: $1200 / 12 = $100 a month you need to put in an acct separate from your checking acct! When those bills listed above come up- just move the money OUT of the acct into the checking to pay it. Our family- it's $200 a month (we have a ton of yearly stuff)- but it's nice to know we have the $$ for it. This makes my budget boring! No drama--- I had the $$. So quick....start writing all your yearly expenses down- then go back thru your credit/bank acct looking for more---I bet you will miss things!
Also consider: savings for car/auto (oil changes, repairs, etc), kids birthdays, CHRISTMAS, all gifts, vacations, etc. Christmas for me is critical--- I save $80 a month for the holidays, not just for gifts- but also Christmas dinner, dinners out w/friends, and when we are off work we go more places (we spend more $$). That $960 helps me a TON during the holidays. Back to a boring budget- I had the money in a savings acct!
HACK: My credit union allows me 4 savings (sub-shares) for my checking account. I use all 4 and they have names: Auto, all Gifts, Reserve Fund, and Yearly Payment place. I transfer the monthly amounts into these accts monthly---then just pull the money back to checking with 3 clicks online when I need the cash. BRILLIANT!
3) Use a web based budget tool! Mint is OK, but consider Everydollar, YNAB, etc. I use YNAB and it changed my life. $5 a month- for complete control of your money. It's proactive and you get a full picture. I blogged about YNAB vs MINT in my blog- go back to my home page to find it.
I can show my husband how much we have in the "Eating out" budget, and can show him reports. It's depressing at the end of the year to run a report of where our money went-- our downfalls: FOOD and shopping (random crap we didn't need). It's ridiculous!
YNAB- Click here to get started with a FREE 29 day trial! (I make nothing off this, I just love the program- you will too).
4) Snowball debt! Start with lowest amount owed, pay that off. Then to the next, and keep snowballing the payment to the new debt.
Target Card: $600 (payment $25)
Kohls: $750 ($30)
Amex: $1200
First pay Target, then tackle Kohls. This means you pay the minimum on all the rest until the 1st is paid.
If you want to avoid interest- look for 0% credit card offers-- for 12 months you have 0%---there is a fee- but do the math. You save money this way.
Also look at a credit union for a personal loan. Add up all debt- get the loan at a LOWER % than the credit cards- pay all debt off- then tackle that loan. STOP USING THE CREDIT CARDS - cut them up, freeze them. If you have the $1000 in the reserve acct, you don't need the cards.
If you are Ninja Mom like me and have advice for me--- let me know! I love hearing new ideas, hacks, and other stuff to make my life easier!
-Auggie the Ninja Mom
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