Saturday, June 25, 2016

Smart Money Smart Kids by Dave Ramsey and Rachel Cruze -- Introduction and Chapter One

Smart Money Smart Kids by Dave Ramsey and Rachel Cruze
Recently, my former boss and great friend took me to a women's entrepreneurs conference at her church. It was sponsored in part by Dave Ramey's organization and many of the presenters based their business savvy on Dave Ramsey-like principles.

Although I was not there for the first day, my boss/friend showed me the book she had picked up, Smart Money Smart Kids by Dave Ramsey and Rachel Cruze (Ramsey's daughter). Not only did she get this book, but it was bundled with several other items for the price of the book. As the day wore on, I kept thinking about that book and finally wandered over to the table where Ramsey and Cruze's books were beings old. Rachel wasn't there, but the person at the table was gracious and kind and I ended up buying the book and the bundle. And...I got a signed copy of the book.
While my son, at nearly 18, is much older than the principles in the book are meant for, I think it will still be valuable to us as we navigate financial freedom. I still have a ton of debt to pay down and we aren't anywhere near being able to afford to own a place of our own. My son is about to start college too and I don't want him to end up with a pile of debt just as his adult life gets under way.

So, although I had already read the first two chapters, I am going to restart the book and have my son read it as well.

Below are our thoughts on the introduction and chapter one.

My thoughts:
My first impression of Smart Money Smart Kids is that Dave Ramsey has been-there-done-that. It's easy to forget that he once was in my position: worried about money, beating himself up over stupid money mistakes, and wondering how on earth he could get his family's financial situation back on track. From the start, he is honest about how it felt to be handling money poorly and seeing the impact on his family. His daughter also paint a clear picture of her childhood as being anything but flashy and filled with whatever money can buy. This is a down-to-earth, humble family who built themselves back up from ruin to financial stability and beyond.

Reading chapter one was a bit difficult for me as it's written from the point of view of Rachel, Dave Ramsey's daughter. I kept thinking, but I'm the parent! I'm the one that should know how to handle money! I'm the one that should be teaching my son money lessons! We shouldn't be having to learn these things together and the child should definitely not be having to teach the parent! Ramsey's daughter is only ten years older than my son and I had a moment of, "You're not old enough to teach me this!"

I got over it though...

My son and I NEED this. We both NEED to improve our financial situations. We both NEED to be financially free.

So, I kept reading...


My son's thoughts:

I read the introduction and first chapter of the book. I don't really know what to write about specifically because most of the introduction and first chapter are just the authors talking about their personal and family success and how they've helped so many other people, and then also reminiscing about events in their life which I can't really identify with or relate to. I'm not really 100% with their mindset of big success, big business, big money and all that as it is; I just want to be happy. 
Money is not necessary for happiness. It just helps you get along in the modern age and opens up new avenues for you. I see it more as a resource rather than a means of being successful; if you're an idiot, you'll mess up and burn; if you're smart, you'll get where you want eventually.
We have basically no money to spend as it is, and I generally mindlessly squander the majority of the money I'm handed because it will never, ever be enough to pay off actual college funds, and the things I immediately want are already just pointless material goods that I don't need and thus don't need to 'save up' for. They don't really matter as much as bills that I'd need to save for would, had I a house or a car. At the very least, though, they keep me happy for a month or two and provide new things for me to do with the people I spend most of my time.

I know my monetary choices may not seem smart, and they aren't smart, but when I have an actual job and am trying to feed and clothe and house myself, I'm confident enough with my intelligence to say I won't be powerwashing all of my cash down the drain.
My thoughts again:
I think we NEED to read this book together.

Pick up your own copy of Smart Money Smart Kids by Dave Ramsey and Rachel Cruze at your local library or from Amazon HERE.

This post contains affiliate links.

Monday, June 20, 2016

June 2016 update--it's been a while!

June 2016 Update--Paying it off One Penny at a Time
I can't believe I last blogged here in March and that I had only ONE post that month! If nothing else, that's a sign of how stressed I have been over the last several months.

I had a job I loved (and now greatly miss) and great coworkers, a close friend in town, and my son and our dogs. But, beyond that my son and I both weren't feeling too satisfied with our lives. We were on the tightest budget we'd been on in a long time--made worse by the negative impact of benefits and a raise (more in a minute), and we just didn't really like where we were living.

Money was tight.
Moods were low.
We needed a change.

Despite working hard earlier in the year and late last year to stick to a spending fast, it didn't help our budgets this winter and spring as I got hit with the flu for the second year in a row, followed by severe asthma, then severe seasonal allergies. Add to the mix a second virus that was quite flu-like.

I was a mess. And when you feel like a mess, a lot of your promises to yourself go out the window.

I dumped my spending fast in place of convenience.

I didn't calculate the financial cost of taking a raise and more hours compared to the cost of the benefits that would come with those hours compared to getting a second part time job instead. I didn't calculate the cost of no longer qualifying for a reduced cost energy program or an employer sponsored health plan versus a state sponsored plan.

I didn't calculate a lot of things.

As a result, we became even more broke than we were before.

I could say I just give up and let the world roll me over, but instead, I decided, along with my son, to make some huge changes in our lives.

First of which was that we moved...not only did we move many, many miles away, but we moved in with a relative. This alone will save us several hundred dollars in expenses. We are paying him rent, but it's significantly less than what we would pay if we stayed in our old town, even if we had moved into something smaller or into a less well to do neighborhood.

Second, I did get a new job that pays more and has the opportunity for bonuses, on average an extra $500 per month. I started last week and while it's been slow to start and a steep learning curve, I think I'm going to enjoy the job. Unfortunately, it will require a lot more driving so we'll see how that impacts my budget due to gas consumption.

Third, I started a new business with a friend. Our immediate goals are to build our audience, but by the end of August, we hope to be turning a profit, even if it's small. Long-range, however, we believe we can earn a tidy sum while helping others. You can check it out HERE.

Fourth, I had an article published on the blog And Then We Saved! I didn't get paid for the article, but it's still a great accomplishment considering how widely read that blog is! Of course, the article was about how I planned to make my spending fast work! As noted above, my plans didn't exactly go as expected, but for the period of time that I was on track, I managed to pay off a tiny bit of debt, pay my expenses, and feel like I was on the right track.

Fifth, I have recommitted to my spending fast! I already did well last week by not going to the nearby coffee shop when doing training at my new job's headquarters and I didn't stop at Starbucks on my way to or from training either. And, I've been looking ahead to this coming week. I know I will need to get gas and buy some groceries, but otherwise I plan to make do without.

This coming week, instead of spending money I plan to:
  • Catch up on reading (check out my reading blog HERE)
  • Work on my new business with my business partner (check it out HERE)
  • Walk my dogs more often, bringing my son along 
  • Study for my new job
  • Plan for the following week
Overall, I feel like we are back on track and living with my relative is a critical part of the process of not only getting back on track, but staying there. My goal is to set aside as much money as possible over these next few months, building up my emergency savings fund, and to pay off some small, lingering debts. My hope is that I can pay off enough small debts to eliminate them AND to see my credit score rise.

I even have a plan for when I feel like I need a reward or a treat for doing well--I have Starbucks gift card credit thanks to Swagbucks and also a free drink from taking part in Starbucks's rewards program (using built up gift card credit!). At the moment, I am just shy of enough credit for two grande Americanos, but by Wednesday I should have two drinks covered. I'll save them up for a time when I'm really feeling that urge to splurge!

Dave Ramsey suggests $1,000 in an emergency fund, but my goal will be to have $2,000 in an emergency fund by September 1st. It will be tight, but I think I can do it!