Finance Friday: Getting It Together For October

You know I’ve been trying to follow most of the Dave Ramsey Plan right?

Dave Ramsey Plan Review & Summary

  1. $1000 emergency fund
  2. Pay off debt
  3. 3-6 months of expenses REAL emergency fund
  4. Invest in retirement
  5. Save for kids to go to college (or start a business)
  6. Pay off mortgage ASAP
  7. Invest like a madwoman (I’m paraphrasing that one)

The problem is, I did the written budget, realized we actually had money, and went kind of batsh*t there for a minute - or a month.

From lunches with friends to beer making equipment to taking the kids downtown for the day, my debit card was used, bruised, and abused so much in September I heard it on the phone the other day pitching a Lifetime movie.

With all that, my emergency fund will be shy of the first $1000 goal.

Now for the good news. It’s only going to be short by about $300. Every time Randy gets a paycheck (twice a month, not bi-weekly) $100 goes right into ING Direct Savings. That means we only have to contribute an extra $100 to the savings account sometime during October to make that step one from up there in the list complete.

The big problem

I have a personality that drives to do everything, all at once. I figure out what the steps are, I map out a path, and then I attempt to run like the wind down the path as fast as I can go.

That means I keep trying to pay off too much, too soon, and I get discouraged really easily. Because numbers make me feel downright dumb. Really. Working with a budget and the bills and addition and subtraction makes me feel so very, very stupid.

Feeling stupid can lead to some reckless behavior.

The quick fix

Since I can’t revamp my personality quickly, I’m revamping the plan. I’m trying to make the budget more conservative by giving my categories for the following some extra cash (a.k.a. more breathing room.)

  • Randy Entertainment
  • Jen Entertainment
  • Groceries
  • Eating Out

I know, I know. If you are a Dave Ramsey viewer you hear the mantra, “Rice and beans, beans and rice.” You can keep your beans and rice. I believe that eating out once a week is less than most people and perfectly logical to have in the budget. Randy has a full time job and multiple freelance clients. I have two toddlers and blog and freelance and do a multitide of other things to bring cash into the house.

We both need cheap reminders that we are working like dogs for a reason. The future? That’s never enough to get you through tomorrow.

I also think building that little extra into the budget will keep us from having another spendfest like we did in September.

Other habit changes

We stopped drinking Starbucks coffee. We found that the Folgers Dark Silk Roast tastes basically almost like the Sumatra that I was so used to. It’s strong enough that it wakes me up in the morning, but is a little less acidic than the Starbucks. So it’s really better overall. No more acid tummy. Plus Folgers is cheap!

Randy and I made a deal. I’m the one that always wants to eat out (because if it’s cooked by me I don’t eat and then we have that whole almost-an-eating-disorder issue - I like meals now and then.) For any money left over at the end of the month from the “eating out” budget - basically if I don’t spend all the money in that envelope - I get to put it in the ShareBuilder Mutual Fund to either be left in the mutual fund or used to purchase stock.I cannot even tell you how excited I am about this development.

The only thing more important to me than good food brought straight to my table is money brought straight into my bank account.

September 26, 2008 | By: Jennifer Gniadecki | Filed Under Finance Fridays, Money, The Everything Basket, Work/Life Balance |  

Comments

3 Responses to “Finance Friday: Getting It Together For October”

  1. Candy on September 30th, 2008 6:05 am

    We eat out a lot more than we should, but considering that I work at home and am here ALL day long, dude, I have to get out sometimes too :) Dave Ramsey. Pshaw.

  2. Jennifer Gniadecki on September 30th, 2008 10:35 am

    Pshaw? Why pshaw?

    I mean, he’s not someone I want to have dinner with and, you know, TALK TO for any length of time…but it’s a plan.

    A plan we’ve altered considering the current financial crisis. Once the stock market stops dropping so much during the day, oh my. The biggest bear markets….that is another entry entirely…. lol

  3. Candy on September 30th, 2008 9:07 pm

    LOL… I meant in the “he can kiss my rear” type of way because I’m going out once a week or whenever I feel like I’m going to go crazy. It may be to a park now and then if I need to instead of “to dinner” but dinner out is non-negotiable in my world. I NEED that time out of my office :) - I was just being a smart ass, snub my nose to the man, type.

    Oh, nevermind.

    BTW, you totally need a final paragraph over there on your disclaimer that simply says, “Duh.”

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