Anyone who is close to Brian or myself knows we are HUGE Dave Ramsey fans. If you didn't know better, you would think he was our bff... or our cousin...or maybe even took residence in our closet. We talk about him that much. Maybe once a day. Sound obsessive?
We started on our Dave Ramsey journey back in 2006. I was nearing the end of college and my brother and sis-in-law were teaching Dave's class, Financial Peace University, at their home church. My sis-in-law urged that Brian and I come. We weren't necessarily "bad" with money at that point, but she thought it would really help us communicate about money in our marriage. Brian wasn't convinced. He didn't need some dude to tell him how to handle his money. Oh...how things would change.
Dave Ramsey is a financial guru that teaches about living below your means, creating a budget, and staying out of debt. While all of that was commonplace among our grandparents, the baby boomers started pulling out things called "credit cards," then came student loans...and well, I don't think I have to go further cause I'm sure you all could tell me about the payments your making on your couch (just kidding...kinda).
We took the class and it was like a giant light bulb went off in our heads. One of Dave's mottoes is "Live like no one else, so later you can live like no one else." It is hard to decipher that in print, but basically, create a lifestyle now where you can save and live below your means, so later (after some compound interest) you can really live the dream.
What did this mean for us? Well, about 6 months after taking the class, we paid off Brian's small student loan...about 8 or 10 months after that (I can't remember it's been so long) we paid off Brian's Jeep. We were DEBT FREE. As William Wallace said in Braveheart (and Dave likes to use this), "FRRREEEEEEDDDOOOMMM." We didn't owe a dollar to nobody (I get my English from country music songs, ha). We decided that, other than our mortgage, we never wanted to have another debt. (Now I know, I know, if we were really hard core we would live without a house payment, and some day we will...According to Dave, it is not bad to take on a mortgage as long as you follow some of his principles).
So what does this mean for us? Before a new month starts we sit down and plan our budget. Me being the nerd (and the money handler in the family), I write up what I think all of our expenses will be for...let's say...March. I keep track in February of things we have coming up...maybe a visit to the doctor, a missionary is coming to church and we'll want to give more than usual, or our grocery budget needs to be higher because we're hosting a party. It may sound mundane but every dollar has to have a name. If I need to pay $3 in library fines, it goes in the budget.
Now at this point some of you are thinking...Oh.my.goodness...these people are tight. And you're right. We are very tight. Some months we sway from the budget and I have to go back and adjust. Other months we are under budget, maybe due to allotting too much for gas or for Brian's work expenses. I used to fill out the form I've linked above, but after doing a budget every month for 5 years, we've got it down to a science and I keep it in an Excel file so I can use the add function.
So why am I even blogging about this and why do I think it's important?
1. I believe we're going to be in this recession a little bit longer. With gas and food costs on the rise, families need to scrimp and save even more to make ends meet. Dave's teachings have given us the freedom that we no longer live paycheck to paycheck. I don't even know most of the time when Brian or I is going to get paid. It really doesn't matter. I'm not saying that to brag or boast, I'm saying this because I want this for all of my friends!!! When you care about people, you want them to succeed in all areas of life, even financial matters.
2. Being good stewards with our finances can bless others. If we want to leave a legacy, we can do so with our giving. You can't give to God, charity, ...and even you're children-- if you're broke.
3. Disclaimer: I'm going to get political...so if you don't care or don't like it...well, sorry. Being a Dave Ramsey follower has made Brian and I both take the "emotion" out of money. As Americans, so many of us have the mantra of a 6 yr old who wants a toy in our head, "I want it! I need it! I deserve it!" As Dave says, "You don't deserve anything. You're broke." Right now our state and federal governments are facing the fact that they can't afford to pay their bills. If you can't pay your bills, you can't just keep on spending, hoping that one day more money will fall into your lap. Nope, you'll fail every time. You'll go bankrupt...lose your home...and your security. While programs can/will be cut that will affect all of us, there is really nothing to get emotional about. Is it a sacrifice? Darn right. But we have a choice- we can either pass on our debt to our kids (for all you parents, how would you like to hand down your student loan to your child? Yeah, didn't think so)...or we can suck it up and live below our means. The government should try it. First time for everything.
Is it always so black and white? Maybe not. Things come up. Life situations happen. But being prepared helps. Trusting in God helps. Most things don't go well without a plan...and it's the same for our finances.
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