Budgeting

Budgeting, my nemesis. I have never been good at keeping a steady budget. With the lack of budget tracking, I have found myself in a debt-hole. Which I never really minded, because it was just me that I needed to worry about and I was always able to pay my bills and take the trips I wanted - so I never really worried about it --- much. Now, I have bigger responsibilities - My Little Guy and hopefully Baby C. I need to get things in order because I need to make sure my family is covered if something were to happen. 

It's time to get serious about Budgeting and getting out of debt. 

I like Dave Ramsey's style. I've re-started his Baby Steps so many times and never have gotten past Baby Step #2. I have to admit, it's going to be difficult. I'm still TTC and the costs are larger than I expected. I am not going to stop TTC right now... so, those costs will keep adding up. I know that makes it difficult to make progress on this budgeting project. However, I'm going to do my best and see if I can curb spending in other areas so that TTC costs will not hinder making progress.

I decided to enroll in Dave Ramsey's Financial Peace University (FSU) and started classes in January 2016. Hoping this gives me the push that I need to meet my goal of becoming Debt Free! Of course life happens and I was laid off in March 2016. This put a damper on my goals. Luckily I found a job in May 2016 and am trying to get back on track again. 

Goals:
  1. Get out of debt and NEVER get back into debt. No more loans EVER. 
  2. Have a 12 month emergency fund. 
  3. Have adequate life insurance policies to take care of my kids. 
  4. Be on a projection to be able to retire by 65. 
  5. Have a good college fund set-up for my children. 
  6. Then... eventually be able to DONATE to my Alma Mater, my foster care agency, and my church -- as much as I want!
Deadline: 
  • Ongoing, need to create a habit! 
  • Started: Mon August 1, 2015
Obstacles:
  • Current spending habits. 
  • TTC Costs. 
  • Bad spending habits. 
  • Feels overwhelming - like I will never be out of debt. 
  • Not having the discipline. 
  • Not sticking to the plan. 
People/Groups/Organizations that can assist: 
Benefits of Achieving the Goal: 
  • Use income for things I want to do instead of paying bills. 
  • Financial cushion, take care of my family. 
  • If something happens, things are covered. 
  • Teaching my kids by example on how to deal with money. 
  • Be able to GIVE! 
  • Not be a "Slave to the Lender". 
Skills needed to acquire to attain the Goal: 
  • Saying NO to spending more. 
  • Put money where it's needed. 
  • Curb spending. 
  • Budget!!! 
  • Track Expenses. 
Plan:

1) Track through Blog Posts, to be held accountable
2) Attend Financial Peace University 
  • 1/15/16: Financial Peace University, Session #1
  • Graduated: 3/10/16
3) Dave Ramsey's Baby Steps: 

Step 1: $1,000 In An Emergency Fund - DONE 12/15/15! 
Step 2: Pay off All Debt with the Debt Snowball ~ Estimated 2023 Completion
  • DEBT Tracker: 10 debts (not including my mortgage) 
    • Debt #1 - Paid off on 3/3/16! YAY! Paid of the week prior to being laid off. 
    • Debt #2 - CC
    • Debt #3 - CC
    • Debt #4 - Student Loan 
    • Debt #5 - Student Loan 
    • Debt #6 - Student Loan 
    • Debt #7 - Student Loan 
    • Debt #8 - Student Loan 
    • Debt #9 - 401K Loan with old company, going to get a tax hit in 2016 
    • Debt #10 - 401K Loan with old company, going to get a tax hit in 2016

Step 3: 3 To 6 Months Expenses In Savings ($10-15,000)
Step 4: Invest 15% Of Income Into Roth IRAs And Pre-Tax Retirement Plans
Step 5: College Funding
Step 6: Pay Off Your Home Early
Step 7: Build Wealth And Give! 


Updated: August 2016

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