Wait, what? A blog post about money? On THIS blog?
I know. But stick with me, because this is important. Did you know that if they lost their income today, 44% of Americans would be in poverty within three months? Did you know that 70% of Americans live from paycheck to paycheck (Wall Street Journal, cited in Ramsey 2009)?
Are you one of these people? C’mon, fess up. Be honest with yourself. I’m definitely in the 44%.
How much debt do you have? Credit cards, mortgages…and yes, student loans included. If you haven’t totaled it, go do it now. I’ll wait.
[sips on tea, plays with cats...]
Okay, so what’s the damage? I see. Well, you’re not alone. I have $18, 996 of debt. The vast majority of that is student loans–a sadly familiar story for most people my age. But it doesn’t have to be.
Talking honestly about money isn’t something that people like to do. In fact, it’s often viewed as a social taboo. I’m pretty sure my mother would be HORRIFIED if she knew I was sharing any part of my financial information on the internet, for the world to see. I know that at least one of my sisters reads my blog, so…shhh don’t tell Mom! :)
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here’s a totally gratuitous photo of Squeener rollin’ in the dough. I don’t know how she makes her money. I don’t ask questions…I don’t want a paw in the face.[/caption]
Up until recently, I refused to even THINK about money. Any time the issue of money was brought up, I’d get clammy, warm, and break out in hives (okay, so I’m joking about the hives, but you get my point). It was a subject that was simply off the table. I would pay my bills, try to save some money (often unsuccessfully), and that was that. If I started to think about my financial future, I would get so stressed that I would simply shut down and ignore it. There was a long stretch of time when I refused to even LOOK at my bank statements, purely out of fear. This article from Real Simple on overcoming financial fears tells me that I wasn’t alone. I have always known that saving for the future is important, but knowing & doing are two totally different things. I’ve learned that the hard way.
And credit cards? Don’t even get me started.
For Christmas, Dan’s father & stepmother gave us a copy of Dave Ramsey’s book, The Total Money Makeover. I must admit that initially, I kind of rolled my eyes. After all, Dan and I live pretty comfortably. It helps that neither one of us are extravagant spenders. But after doing some thinking and hearing Dan’s reactions as he read the book, I was intrigued, so I gave it a shot.
And after reading it, I’m totally sold. I feel like Dave Ramsey slapped me in the face and yelled, “Katie, wake the &*%# up!” Now I am actually eager to talk about money and getting out of debt. Dan and I each made month-to-month plans to get us through Dave’s 7 baby steps. I’m actually excited about managing my finances now! After reading all of the success stories from hundreds of people in Dave’s book, I have caught the Total Money Makeover fever, and I am thrilled at the idea of finally taking control of my finances.
We are officially beginning our Total Money Makeover today. I’ve been excited about it for weeks! I’m especially thrilled to share our experiences with anyone out there who needs encouragement & inspiration to help face their financial realities. Know that you are not alone!
I decided to create a vlog for those of you that may be interested in hearing the details of the program or joining me in my journey to go through Dave’s program and get out of debt so that I can save for the future. I can’t recommend his book enough–it was SUCH a great gift idea! Also, I apologize in advance for a) the really awkward long pause in the beginning (I didn’t know if it had started recording yet), and b) how freakin’ long this is. Hopefully someone out there finds it useful, though!
My goal is to post at least once a month with an update on our Total Money Makeover–and I may post some helpful tips along the way. If you’re interested in learning more or just want to chat finances, please don’t hesitate to email me (the.simple.songbird [at ] gmail [dot] com)!
Do you avoid facing your financial realities? How have your money habits changed over the years? Have you changed your financial practices for the better?
my name is katie and I'm a blogger based in connecticut. This is the place where I chat about the many interests I have! I love to cook & eat. I'm an aspiring fitness nut, and an occasional crafter. I hope you enjoy reading about my adventures!
Wow, this is so relevant to me right now. I have always always avoided my money situation. Pretend it doesn’t exsit. When I was younger, I spent money as though it was going out of style. Now mind you, there were times when I was working 3 jobs. To this day, I regret spending so frivolously. I would be much better off now if I hadn’t.
I’m working on being more conscious about where and how my money is spent as well as how it’s invested. I’m looking forward to your updates! :)
Isn’t it so crazy to think that so many perfectly smart people simply ignore finances?! When I look back, I really can’t believe I allowed myself to do that. I’m so happy & proud that you’re making yourself more aware of your spending–it makes a world of difference!!
Great article and video. You’re really good on camera :-) Before blogging we were $60,000 in debt. We had a wholesale business and while we sold a lot, when you sell wholesale you have to sell bulk to earn anything. I thought we would die with all of that debt but not we are completely out of debt 4 years later. Our cars are even paid off so it is possible.
The envelope method is a good idea. It is hard though having actual cash sitting around because when you get weak you will dip into that envelope and use it. of course, you will feel guilty but at the time you won’t.
I do hope you reach your goal. There is nothing like being out of debt and getting the weight off of your shoulders.
That is so awesome, Wendy! I can’t imagine how good it must have felt to finally be debt-free…hopefully I’ll be joining you soon on that. As for the envelopes, so far so good–I’m being really strict with myself!
There was a time when I was a SAHM that I was trying to follow Dave Ramsey’s plan. I still think it’s a great plan–I just have a terrible time with the cash part. The envelope method is very good. Snowballing paying off bills is great, too. I’m almost done with my medical bills from my back surgery 2 years ago. It takes time, but it’s a solid method. Good luck!
Thanks, Carrie! It’s great to hear of someone else who has tried the plan. The cash part has been hard, but so far it has helped me stop spending money on little things–I definitely think twice before buying something now! :)
This is a great post. It is so hard to conquer the fear of looking at your financial situation. I think I may have to pick up this book because I am in need of some help. Can’t wait to hear about your progress.Thanks for sharing!
It’s a great book–he comes off as a little egotistical at the start, but the more you read, the more you start to see that he’s just really confident that his plan works! Sending you tons of positive energy–you CAN change your financial situation. The first step is looking it in the face!
i love that you’re using this blog to discuss something relevant to you, even if you didn’t start the blog specifically to document finances. your journey will inspire others! i’m fortunate enough to have no debt because I was lucky enough to have parents that paid for my college education. however i know the fact that i moved back home after college has made my need to budget much lower than it’s going to be when i move out. i’m nervous about learning at that point how to budget and get used to not being able to do the things i love (hello $14 cocktails) as often. finances may not be an issue for me now, but it certainly helps to take preventative measures and learn ahead of time so it doesn’t become one in the future.
Thanks Caitlin! You definitely are lucky–I wish I could have stayed with my parents for a little while before moving out on my own. The school I work at has a partnership with the Hartt School, where their students come once a week to work with my students, or to student teach. As a result, I get to mentor a lot of students who are about to get jobs & such–I ALWAYS recommend that they stay with parents if possible for the first year or so. Some students feel “lame” doing that, but I always make sure I tell them that it’s a huge advantage!
Before you move out, you should totally get some tips from your parents–my mom is great with money, and she’s given me a lot of great advice! :)
This is a great post! I can’t wait to read the rest of your journey.
thanks heather! :)