Getting on the Same Page with Your Spouse About Money

**Disclaimer** There are many variables that play into this.  I am NOT a marriage counselor and I am only sharing what works for Fabian and I. There is nothing wrong with seeing a marriage counselor.  I highly encourage going to one. Even if your marriage is great, going to a counselor can be highly beneficial. 

One of the number one reasons for divorce in North America is money fights and money problems. Couples tend to stress about money above everything else. As I write this, I want you to know that I want to see lasting marriages.  I want to see marriages that are able to help others in need. There is power when two are gathered in agreement. Mountains move and battles are won. I know for a fact that when spouses get on the same page with money a lot of other areas in their marriage start to improve. For example just to name a few, trust, communication, and a mutual understanding of each other.

I was the first one who really wanted to jump on this get-out-of-debt plan. Fabian thought it was a great idea, but he just wasn't there yet. I had read The Total Money Makeover and he didn't really have the time to sit and read.  So we got him the audiobook. (Compromise, y'all.) I asked him to listen to it because it would mean a lot to me. He read it and got on board immediately.

The hard part came as we discussed the budget.  Both of us had been spending money like it was dispensable. He spent $100 on Starbucks a month. I easily spent $200 on clothes and toys for Benaiah and I. We probably spent $300 on eating out a month if not more. After we got on the same page, everything changed.  The way we treated each other changed. We were now working together toward a common goal. There is nothing better than feeling one with your husband/wife.

Here are my suggestions on how to get on the same page with you spouse:

1. Talk to Your Spouse
Put your phones away. Turn the T.V. off.  When the kids are asleep, tell them you'd like to talk about something important.  If you're worried about finances, tell them! If you'd like to get out of debt, discuss it with them.  If you want to be on a budget so that you are in control of your money, tell them! If you want to save money for emergencies, tell them your concerns.

Many times one spouse is the spender and one is the saver.  I am the spender. I have to constantly keep myself in line from impulse buying.  When I feel the temptation, I remind myself, "Adults devise a plan and conquer it; Children do what feels good."  My husband has voiced his concern for when I randomly buy something "we need." Now, I call or text when I want to purchase something that wasn't budgeted. Most of the time the answer is "no." I voiced my concern when Fabian kept forgetting his lunch and "had" to eat out a few months ago. We talked about how we could improve. I started making larger meals and refrigerating/freezing the leftovers for him.

One line that works for Fabian and I is, "It would mean a lot to me if..."
It would mean a lot to me if you'd do the budget with me.
It would mean a lot to me if we'd take a financial class.
It would mean a lot to me if you'd read/listen to this book and tell me what you think.
It would mean a lot to me if you'd help me with the dishes.
It would mean a lot to me if you'd help me put away the clothes.
It would mean a lot to me if you'd help me pack my lunch.

This one simple sentence communicates clearly your needs.

Word of advice: Try not to tell your spouse what they're doing wrong.  Tell them what they're doing right. Work together to improve the things they could work on. Chances are you have a few things you could work on too.

2. Do it Together 
I am so surprised when I hear people tell me, "Oh, I don't do the budget. My [spouse] does it." Or "my [spouse] handles all of that."  For the sake of your marriage, that line tells me something oh so dangerous.  It tells me that you aren't working together. That you aren't one.

I write out the budget mostly on my own. At the beginning of the month, we go through it and he will add to or take away things in the budget.  He might even remind me about something I forgot to put in there. After the initial monthly plan, Fabian and I have a budget meeting about once a week. We look at the budget together, talk about the categories and where we're at. (Seriously takes less than 5 minutes.) He sometimes may or may not get on to me about going over budget...

Fabian works 3 jobs. If he has the time to sit with me for a few minutes a week to talk about money, anyone can. Even if you hate talking about money and looking at numbers, sit with your spouse as they create it. The spouse that is doing the budget/finances by themselves wants the other spouse to be involved.  When you're involved, you're apart of the dreaming and goal planning. When you're involved, you are one.

3. Write out Your Goals and Dreams Together
Nothing will make you feel closer to your spouse than this.  (It also may make you want to rip out your hair once you hear some of their dreams.. Listen to them. Be gracious. Compromise.) We love writing out our dreams and goals together. When you do this it helps you realize what your true destination is, especially financially.  If you want to travel or have a nice house or retire with dignity, it takes intentional planning.  It takes saving money.  It takes working together.

Write your dreams/goals out. Hang them where they can be seen. Remind each other what the end goal is.  Remind each other about the reason behind why you're getting out of debt, saving money, or simply saying "no." When we are feeling discouraged and weak, we remind each other of our goals to get us back a track

Some of our "big" goals:
Jeep Commander
Toyota Highlander
House
Travel/Vacations
Giving outlandishly when we see a need.
College saving for kids
Adoption/Foster Care
Retirement

4. Respect and Love
Lastly, have grace for when your spouse messes up. Help them improve. Instead of getting frustrated and throwing your hands in the air, talk through it.  Appreciate your husband for working so hard to provide for the family.  Appreciate your wife for managing the finances and/or the house so well. Ask them how you can help improve the joint financial situation.  Most of the time both parties are good-willed people that want what's best. Treat each other with mutual respect and love. Your spouse is not you. Most of all they are not perfect. Be gracious. Give them the same patience you would need.

Fabian likes really nice things.  He likes Apple technology and nicer cars. I don't understand this as I could drive my 2001 Honda CRV for the rest on my life and have a simple flip phone and it wouldn't bother me one bit. Fabian's a saver which is great, but he also likes expensive things.  I have learned to respect this about him and compromise.  The great thing is that he knows how to say "no" to himself. He understands that he can't buy an Apple Watch just because they exist.

For Fabian, I have to tell him we can't buy the new iPad. For one we don't need one and for two we have goals. For me, he has to tell me that the boys don't need 50 toys and I don't need 50 pairs of shoes, kitchen supplies, and books. My items may not be expensive, but when I buy new stuff constantly it adds up.

A good rule to have is to talk before purchase.  Don't buy something that's not budgeted unless you and your spouse have talked about it.  Eating out counts! If you've already used your eat out budget, don't eat out with your friends and pay for their meals. Your budget is a contract.  You are saying to your spouse, "I love you and I will help our family reach our goals by sticking to this budget." Respect and love your spouse enough to care what they care about.

Getting on the same page about money will change your marriage for the better. Talk about money. Your future depends on it.

What do you and your spouse do to stay on the same page with money? Share your helpful tips with others in the comments. :)

I recommend this book: http://www.daveramsey.com/store/books/dave-s-bestsellers/the-total-money-makeover/prodtmmoclassic.html

It is $10 right now ^^^ Get the audiobook, if you or your spouse don't read. :)

Love,
Leah

If you need help or have any questions, feel free to email me or Facebook me.  leah.mandujano@gmail.com

5 Free or Inexpensive Activities to Do During the Week With Children Under 5 Years Old!

As a one income family,  just like many, we are on a tight budget.  We are trying to save money and cut loose ends in the budget.  The temptation is real when you've been home for days and want to go to Target and start throwing money at them.  I sometimes just want to get out of the house and  find excuses to spend money. Anyone? No?  

The boys get $15-$20 a month in the budget.  This budget is for out of the home activities, toys, or if I forget their lunch and buy them Chick-Fil-A while we're out and about. Yes, that's totally happened. Purposefully? Maybe. Both the boys and I do well by being away from the house for at least an hour a day. So we get out and I try my best to choose activities that our budget friendly. 

Here are 5 Free or Cheap activities we do during the week to save money and get out of debt. 

1. Local Parks and Nature Trails

I know this one is kind of obvious, but it counts. I pack the boys' lunches and we'll go to a park for two hours.  I switch up the parks we go to weekly. So it's a new(ish) experience everytime. Completely Free.

2. Library
If you stay at home and don't take your kids to the library, start now! I love the library! One of the best parts is that they have a  Baby Time, Toddler Time and/or Preschool Time.  They'll do a few songs and then we'll do a craft. Afterwards, we'll go play with the library toys and then pick out some books.  Normally, there's a park with a picnic table nearby where we'll eat a packed lunch.  If the weather isn't good, we may eat in the car. Completely Free.

3. Mall
Houston has two indoor mall play areas that we go to. We'll go play for a an hour or two. Then we'll go to the food court and I'll feed them a packed lunch. Completely Free

Anyone else have children that never look at the camera? Lol.

4. Memberships
This one is not cheap upfront.  However, it's super inexpensive if you use it all the time like I do. We have a Houston Zoo Membership and a Children's Museum Membership. Both cost around $100.  We pay for these by asking family members to, instead of buying gifts, help us purchase memberships to last the entire year.  I don't know about your kids, but mine play with a toy for one week and never touch it again. However, Benaiah asks to go to the zoo daily.  It's his favorite.  We've gone at least twice a month if not more the past year for our zoo membership. In the month of April, we went once a week. 

5. Fast Food Play-Place aka Chick-Fil-A
Now, I know this one seems like it couldn't be cheap. Etc. Spending money eating out... and then I'm paying for my meal.  You might find this really cheap of me. Lol. I do this one of two ways.

A. I get the boys a meal to split and have extra snacks.  The kicker and way I save money is by not buying something for myself. Instead I eat at home or eat the stuff I've packed. Normally this costs me $5

B. On a rainy day, I have literally gone to Chick-Fil-A purchased a small fry for the boys to share and had their packed lunch in my bag.  This costs me $2

Do you have any more ideas?! Share them with me. What are your go to cheap or free activities to do with your children? Comment below or comment on Facebook!

All my love,

Leah

Car Payment Free: You should and can do it too!

On Wednesday, January 6, 2016, we paid off our 2010 Toyota Corolla!  I drove to the bank and told Benaiah what we were doing.  He put the cash in the plastic container and I put it in the sucking machine. Lol.  And we are finally free of the slavery that is a car payment.  I drive a 2002 compact SUV and had paid cash for it about a year ago.  We officially have two paid for cars! Whoo hoo!

We first purchased our Corolla impulsively after our only car kept breaking down.  Fabian drove a motorcycle at the time. We had no credit scores and the only debt we had was student loan related.
Like many people, I wanted a nicer and newer car that, let's face it, I didn't need. When our car kept breaking down, it was the excuse I had been wishing for.  Instead of taking $1,000 to fix it, we went and got a car payment. We put $1,000 down and got a ridiculously high interest rate. I did eventually get it refinanced to less than half of the initial interest rate. We financed our car for $15,000.  Paid around $18,000 including interest payments over the course of 4 years.  Our car is now worth around $5,000.  Can you say, "Ouch?!"

 I share these things so that others will think deeply before getting a car payment, and hopefully not make the same mistake.

The average car payment in America in 2015 was $482 for a new car and $437 for a used car. Ours was $350 for a used vehicle.

When a car is bought and driven off the lot, within the first year the car loses 25% of its value.
That's why car dealerships make SO much money.  The consumer purchases a car for $20,000 and by the end of the year and as the next model is out its already worth $15,000.  Yet, the consumer probably still owes close to between $17,000 and $15,000 (depending on the amount of car payment and interest rates). It's like throwing money or in this case $5,000 out of the window just to drive a "newer" nicer car.

Leasing cars is the most expensive way to "own" a car.  Not a good idea in any form. Consumer reports says, "Although leasing has lower monthly payments, once you factor in that you won't own the car at the end, leasing ends up being more expensive than buying with an equivalent loan."  Again throwing money out of the window.
Instead of financing or leasing a car, save cash to purchase a simple car. And/or keep driving that little old thang!  A car is used to get you and passengers from Point A to Point B.  It does not need to be fancy, {especially} if you're broke. Just buy what you need.  Take it from my experience.  I love my 2002 compact SUV! The driver side window doesn't roll down and someone backed into it in an HEB parking lot. However, I prefer driving it compared to our newer/nicer car as it is easy for toting babies around and fits the stroller better! The AC works and it drives. That's what counts.

What could you do with a $350 worth of car payment a month? It's money to pay off other debts.  It's money to save to buy a home. It's money to invest with so we can retire. It's money that we can use however we please because it's ours and not the banks. That's financial peace at its finest. Knowing that we are in control of our money.

When I say, "We're Car Payment FREE!!" I mean it.  We're free.  Our kids are free and will never know the bondage of debt. We do this all for them!

Stewarding God's money, His way, and for His glory that's ultimately what doing this journey is about.

Love,
Leah

"...borrower is slave to the lender." Proverbs 22:7


"Anyone who does not provide for their relatives, and especially for their own household, has denied the faith and is worse than an unbeliever." 1 Timothy 5:8

"A good man leaves an inheritance to his children’s children..." Proverbs 13:22
Resources
http://www.usatoday.com/story/money/cars/2015/03/04/new-car-loan-record-payment/24363041/
https://www.daveramsey.com/blog/the-truth-about-car-payments/
http://www.consumerreports.org/cro/news/2011/04/resurgence-of-car-leasing-may-not-be-good-thing/index.htm

Be Free of Required Christmas Giving

This year Fabian and I chose to spend A LOT less on Chirstmas this year.

We wanted to pay off our medical bills in December, which we did! (Thanks to our small Christmas budget!) We also want to get closer to paying off our car by January.

I was a bit nervous about talking to my mom about it.  She came to visit in October.  We sat down in my backyard.  I told her I wanted to talk about Christmas. She was unsurprisingly completely fine with not doing a Christmas gift exchange.  Her only comment was, "I can still buy the boys gifts, right?"  Of course I said yes.

This season I cannot help but be so grateful for the people we have around us.  Because we have been so up front with where we are financially, I find that there is no sense of pressure to purchase gifts for each other.  Instead there is a sense of peace and of gratitude that we as friends and family have made it though another year with each other in our lives.

Don't let me fool you.  I had a small Christmas budget and I still went over. Ha! My budget was $100.00.  This included a babysitter for parties, food, gifts for the boys, and a small Christmas Tree. I spent more on the babysitter than anything else.
However, I so enjoyed the time with friends in a kid-free environment.  I love my boys, but I also like having adult conversations without interruptions.

We spent $20 on Benaiah's gifts.  I bought him a train table at a garage sell for $10. I went to Target and purchased some magnet trains to go with it for another $10.
Malachi is opening a gift bag with lots of paper in it. :) I'm sure he'll love it.

We bought that blue train table!
Shhh! Don't tell Benaiah, yet.

Getting into my Christmas wrapping box. 

I am all for giving to friends and family.  If my friends or family have to break their bank to buy me something, it's not worth it! For goodness sake, it's required giving.  Give when you feel you need to not because to have to!

Giving is not just a Christmas thing.  It's a year round thing.  You give because you can.

So don't feel bad for not being able to give every single family member a Christmas present.  Be grateful you get to spend time with them.  If you feel the need to give something, but you don't have money, make something. Rice Krispie treats are the bomb. Just sayin'. ;)

This Christmas I'm looking forward to spending time with my family, eating a delicious pot roast and playing a few card games.

Merry Christmas! 

Mid-Year Debt Killing Update

Hello Friends!

I am going to do my best to start blogging regularly again. Be patient with me. As you can imagine, my two year old and 3 month old are a hand full!

I'm excited to start sharing our "getting out of debt" journey with y'all again. Hopefully, you will be encouraged to start your own journey toward financial fitness, whether that be budgeting, saving, getting out of debt, or maybe all three.

Our finances touch all aspects of our lives. I earnestly believe that we must be purposeful and thoughtful about our money in order to win.

I would like you to think about these questions.
Do you know how much debt you have?
How much money in payments do you pay per month?
What could you do with that amount of money each month if you didn't have those payments?
The above questions are really what ignited us to start this journey.

About two years ago Fabian and I found ourselves living paycheck to paycheck with no plan for our money. All our credit cards for emergencies were just about maxed out. We had numerous store credit cards and even a medical credit card. We had a 10% interest car loan. (Now refinanced and almost paid off!) Lastly, we had and have student loans. At times I find myself embarrassed by the former debts described, but then I am reminded that we were normal! Sadly, most Americans have these debts and are living paycheck to paycheck.

Fabian and I decided that we had had enough. We don't want to be slaves to the lender. We want to be free. More importantly, we want a better life for our children. You can read the full story, here.  

        

                                 

It has been a year and a half since we started our journey to becoming debt-free and we've paid off:

$21,841.83

We still have a long way to go, but I think this is a good start!!
In the past 6 months, we moved to a new home and had a baby. Both our cars needed new brake pads, one car needed a new alternator, and other maintenance. And Fabian had to have almost $1,000 worth of dental work done. Needless to say, our emergency fund took a beating. It has been emptied and refunded and then emptied again and just recently refunded back up to $1,000. So, we are ready to get after our debt again!

I feel this year so far has been the hardest for me. I would love to have a gym membership with childcare. I would also love to send Benaiah to preschool part-time. I'd like to have new pots and pans. And I'd love a newer nicer car. The list goes on...

I can't justify doing or buying the above things because we have so much more left to pay off.
To be honest, it makes me angry that I can't, which in return motivates me to continue on this journey.  I know we are doing what we are suppose to. The sacrifices are real and we feel them. It helps knowing it's only temporary!

                                                         

 

We have seen God's favor this year. He has blessed us beyond anything we asked for or deserved.  Fabian got a job promotion within a year and a half of working with his company. He just recently transferred to a store right down the road from our house. At his new store his job comes with a bit more responsibility, which includes a raise from his current pay. Fabian and I had also been brainstorming about other ways to help pay off more debt. Well, he got a second job as an Interim Youth Pastor. And, it is a job that he loves and his passionate about!

Fabian and I have big dreams that we are zealous about. We know we are doing what the Lord wants us to. He has something planned for us. We know that it includes being out of debt.

                         

    

If we live like no one else now, we can live and give like no one else later!

All my love, 

Leah 

Have any questions? Need help or encouragement? I'm only an email away. Leah.mandujano@gmail.com

Update on our Debt Killing

It's been awhile! 

Since my last blog, we have found out that we are expecting our second baby!! I am four months pregnant as I write this.  Since the nausea and extreme exhaustion has past,  I am finally ready to start blogging again. 

Right now we are on Baby Step 2 according to the Dave Ramsey: Total Money Makeover plan.  

I am a little bummed because we are putting a temporary hold on our debt snowball.  We are continuing to make the minimum payments on our car note and student loans. (We are credit card free!) At the moment, we are saving all extra funds until our future baby and I come home safe and healthy.  Whatever money is not used for the birth of our second child, we will put toward our debt! 

I wanted to take the time on this blog to update on our first year of Debt Killing! 

From September 1, 2013 to September 1, 2014, Fabian and I have paid off... 

$14,497.47

I was honestly surprised when I saw that number! Completely unexpected.  I went through an entire years worth of bank statements adding up every single payment that went toward debt.  

In 12 months, we have paid off all our credit cards, some old school debt, and half of our car.

I am so proud of my husband and I for doing this together.  It has improved our marriage tremendously. We communicate more. We are reaching the same goal together. 

This is hard work.  

It is saying "no" a lot.  

It is being super cheap when buying gifts for any type of shower/wedding/birthday. 

It is living in places we don't prefer to live in.  

It is driving an older car. 

It is me having to say "no" to Mother's Day Out programs. 

It is Fabian packing his lunch everyday. 

It is friends and family giving us awkward looks.  

It is giving up a gym membership to work out at home.

It is giving up cable. 

It is eating at home more often.

This journey has all been worth it. 

We still have a few years to complete our goal and will continue our debt-snowball April, 1 2015.  For now, we're on to saving money. And awaiting the arrival of Baby Mandujano #2! :) 

Any questions? Shoot me a message or private timeline post.  I'd be happy to help! 

My email is leah.mandujano@gmail.com

My Top 3 Budgeting Tips

The word budget seems like such a simple term.  However, many of us struggle putting one together and even more sticking to the budget.

Here are some tips that Fabian and I use when doing our budget.

1. If you are married, you MUST do the budget together.

As a married couple, your finances must be together. No ifs, ands, or buts.  The two become one.  All paychecks go into one bank account.   It is impertinent that your finances reflect that you are one.

When Fabian and I don't do a budget together, it's like we're rowing a boat in circles. Sure, we're moving. Though sadly, as a couple, we're not moving forward to a common goal or destination. 

One of the biggest reasons for divorce is money problems. Again, you MUST do the budget together. I know too many women and a few men who have told me, "I don't do the budget. My spouse just tells me what I can and cannot spend." Please do the budget together. Even if you abhor numbers.  Be there with your spouse while they do the run down of the budget.  Put your own input in.  I guarantee that when you do the budget together, you will feel closer as a couple. You truly are becoming one when you work on a goal together.

Often when doing the budget one spouse is a "nerd" and the other spouse is often the "free-spirit".  I am definitely the "nerd". I like math and I embrace it. I do the rough draft of the budget and talk to Fabian about it.  He helps add items or take items away.  He will lessen amounts or enlarge amounts for different items.

For instance, I like to give the baby spending money in order to buy him toys and clothes.  Obviously our son doesn't need spending money.  I just like buying him stuff. Fabian helped me come down to earth and so I had to cut it extensively to $10-$20 a month. Also, my husband LOVES Starbucks. Before doing our budget together, he would almost spend $100 a month on coffee alone. We still give him a Starbucks budget, but it is now down to $20 a month. (I don't like coffee. I think spending money on coffee alone is cray cray, but I love him. Sometimes I like to be nice.)

2. Budget the necessities first

If all your credit card bills are paid, but you have no food, what good does that do you?  Take care of necessities first.  Dave Ramsey calls this The Four Walls, which are food, utilities, house, transportation, and clothes.

Get a sheet of paper or open an Excel spreadsheet on the computer. Write down all of your expenses in order of importance.  Pay all of the more important items first.

Here is an example of how Fabian and I do our list:
Tithe/Giving
Food
Utilities (Electric, Water, Trash,)
Rent or Mortgage
Gas
Car Payment
Clothes
Diapers/Wipes
Dog Food
Car Insurance
Phone
Internet
His Spending Money
Her Spending Money (We do $40-$50 a month)
Miscellaneous (Unexpected expenses. This doesn't include a cute shirt that you "need". #iamguiltyofthis)
Haircut
Car Maintenance
Doctor Appointments
Saving
Debt
Cable (If you are truly struggling financially, I would urge you to cut your cable bill. There are other avenues for entertainment, free entertainment nonetheless.)
Anniversary/Birthday Gifts

3.  Do a zero-based budget. 

Fabian and I have looked at our bank account and thought, "where did all the money go?" So often we let our money go wherever it wants instead of telling it where to go.  We needed to be in control of our money and not let our money control us.  We work too hard for it to disintegrate before our eyes. We must give every dollar a name.

What is a zero-based budget? 

The concept of a zero-based budget is simple: income minus outgo equals zero.If you earn $3,500 a month, you want every item that you spend/save/give/invest to all equal $3,500. That way, you know where every one of your dollars is going. Not knowing where the money’s going is what kills a lot of people’s money situations. They just look up one day, and they have no money—and no clue about where it went (Ramsey).

As an example, let's say Fabian and I make $3,500 a month. For now, we'll pretend like no doctor appointments are needed and no car maintenance is needed this month.  Right now we do not have an emergency fund in place yet. (We will continue to make the minimum payments on all bills including debt related bills.  However, Fabian and I need to put every extra dollar toward our savings fund.

*Don't forget. When payday comes, write all of your expenses in order of importance. 

Here is an example of our monthly budget:
 Note: Most of the following are numbers that my husband and I spend on each item per month. However, in "for real" life we do a bi-monthly budget because we get paid bi-monthly (twice a month).

Budget
Total Income/Paycheck/Side Jobs	$3,500
Tithe/Giving	350
Food	500
Utilities (Electric, Water, Etc)	150
Rent	900
Gas	300
Car Payment	350
Clothes	30
Diapers/Wipes	50
Dog food	40
Car Insurance	130
Phone	150
Internet	40
Miscellaneous	120
Her Spending Money	40
His Spending Money	40
Haircut	30
Credit Card Bill 1	25
Credit Card Bill 2	25
Student Loan	120
Added Total of Monthly Expenses:	3390
Emergency Fund (If 1k completed, put extra debt here.)	110
Added Total of Money Budgeted	3500
Remaining Balance (Should always be 0)	0

Now that all of our income of $3,500 has been given a name. By the end of the budget,  we should have $0.00 left. Always.

I hope this makes sense!

For more help, use Dave Ramsey's Budget Form. (It was a life saver for us.)
http://www.daveramsey.com/tools/budget-forms/

Hopefully, these tips encourage you and get you started budgeting with a plan or goal in mind.
Thanks for reading. It means a bunch to me.

All my love,
Leah

If you have any questions or need help with your budget, I'm just a message away. I'd love to help!


The above quotation is from: http://www.daveramsey.com/blog/how-to-make-a-zero-based-budget

Budget. Save. Pay Debt.

In my previous post, I wrote about why Fabian and I started saving and paying off our credit cards.

Now, I am going to write a little about how we did it.

Before Benaiah was born in May 2013, we knew we wanted to have a savings account for emergencies only.  We sold our beater car for $750 and our Motorcycle for $1000. We then became a one car family.  For some reason, $1700 disappeared in the span of 4 months.  I have no idea where this money went. As of right now, I can't think of any emergency that came up for that money to have disappeared. We were spending atrociously and in the end had nothing to show for it. Why do we do this to ourselves?!

I blame it on not budgeting appropriately.

Budget

Getting our budget down took us awhile. In fact, we finally got it down to an art last month. In other words, doing a budget took us 6 months to figure out.   The reasoning behind this is that a third of our income comes from commission. Most beginner budgeters (without commission) take 3 months to whip their budget into shape.  (I will be writing a blog post solely on Budgeting soon.)

We cut the non-nescessities. These included, Netflix, Hulu, gym memberships, eating out, and retail therapy (that was hard).  We cut Starbucks down a lot.  I know what your thinking, "poor Fabian". Stop it right now. Ha!

We severed these above items and got strict on our spending.

Side Note: I've lost almost 20 pounds without a gym. It can be done y'all. 

Running at the park (for free) with the family.
These boys are too amazing.

Save a $1000

In my last blog, I explained a little why savings is so important.  A $1000 should cover most emergencies that come up.  We haven't used our emergency fund since we made it.  Hopefully, it stays that way!

We lived as minimally as possible.  In order to save, we lived in a one bedroom apartment on the third floor with a newborn for 8 months.  I do not recommend this, but our rent was "cheap" and our electric bill was $50 a month. As mentioned above, we had 1 car for 8 months. (That was SO hard.)

Any extra money that came our way we saved it!

I honestly can say how much $1000 will change the way you view life. Peace. Peace. Peace.

Side Note: As recommend per Mr. Ramsey, if you make $20,000 a year, a $500 starter emergency fund is sufficient. 

Save.

Learn the difference between "need" and "want".

Do it people. Stop eating out.  I bet in two months that all the money you spent on eating out equals the amount you could have put in an emergency fund. At least that was our problem.  And we were broke y'all!

Pay Debt

We have paid off $9, 210.

Like above, we budgeted and cut expenses. I am telling you it's all about the budget.  BUDGET.
I graduated from College in December 2014. I used a little bit of my graduation money for some much needed clothes shopping.  The rest of the money was put toward the debt.  Any Christmas money we received, we put it toward the debt.  With our tax return, we purchased a used car and put the rest of the money toward the debt. Are you understanding the picture we painted for ourselves?

We sacrificed and said no.  We do not want to be slaves to any company or government that we owe money to.

Fabian started working extra jobs here and there to pay off more debt.  He did some computer consulting, preaching, and stage design.  Sure, I missed him so much when he was out with the 1 car. I was alone with a baby who didn't seem to stop crying. However, we were and are getting closer and closer to our goal.  Those moments seem so minimal compared to the freedom we are starting to feel.

We started beating the credit cards to the ground. Have you ever looked at your credit card statement and seen the interest rates?! Again, why do we do this to ourselves?! Dumb. Dumb. Dumb. Don't even get me started on car payments... Yikes.  Every time you drive your newer car with car payments, you should just throw money out of the window. Because in all actuality, that's what's happening.  We are wasting money with these dumb car payments.

We still have a car payment.  Shoot me now. We owe $8,400. Our Corolla is worth $8,000.  We've been paying on it for two and a half years. That totals $10,500. So in the end we will pay almost $20,000 for a car that is now worth $8k. Seems legit.  #sarcasm

We now have a paid for 2001 Honda CRV with 150k miles on it. We purchased it for $3900.  Her driver side window doesn't roll down and she has sun damage.  However, she drives better than our 2010 Corolla because she actually belongs to us.

I never feel bad for people with "ghetto" cars. I'm jealous of them because most of the time their car actually belongs to them.

That Corolla will be officially ours in December when we pay it off. We will have the title in hand and be one step closer to freedom.

And then on to the student loans. Right now this totals $36,000. Lawd help us.

This journey isn't easy nor short, but I know it will be worth it.

All my love,
Leah

Have any questions? Use the comment section on my blog, Facebook, or Instagram. I would be glad to answer them. I love hearing feedback from y'all.

Here is a budget form from Dave Ramsey's website. This is what we use to help us keep track of  what we need to budget for.  

https://www.daveramsey.com/media/pdf/fpu_qbudget.pdf

Look for my Budgeting blog next! 


Credit Card Picture from: http://www.quizzle.com/blog/2009/10/10-common-credit-report-credit-score-myths/

Why become Debt-Free?

I have posted a few status updates about paying off credit cards and purchasing a vehicle with cash.  I've had friends and even strangers ask why and how.

Well... this blog post will explain the reasoning of why we decided to change.

I wanted to share why Fabian, my husband, and I decided to start our financial journey and become debt-free.

Like most people, we were living paycheck to paycheck.  I remember Benaiah was 5 months old and I needed to go to the grocery store to buy some baby food. I went to Kroger and got a few jars of baby food and marmalade (I needed it for a meal).   When I went to check out, my card declined. #embarrassing I went to look at my bank account.  We had $7.00.  We didn't get paid for another 2 days. We had no savings either and maxed out credit cards.  I ended up being so flustered and embarrassed that I didn't purchase anything and left.  I never have stepped foot in that Kroger again.  By the way, Benaiah didn't starve.  I ended up having enough jars at home to feed him until payday.

Until payday...

Those two words bother me.  We shouldn't be living like this.  I should have enough money to buy baby food!

We needed change.

In October of 2013, I grabbed The Total Money Makeover by Dave Ramsey off of my book shelf and dusted it off.  I dove in deep.

I was desperate and hungry for change.  About the same time, Fabian had a good friend mention the book to him. He began to listen to the audio book to and from work.  He needed no convincing and was on board.

Now 8 months later, Fabian and I have paid off nearly $10,000 of debt, mainly credit cards.  We are now paying off our car and should have it paid off by December.

For the first time in our marriage, we have $1,000 in the bank for emergencies ONLY.  Think about that. If your car broke down, how would you pay for it?  If your son needed to go to the emergency room, how would you pay for it?  If your AC goes out, how would you pay for it?

Scary thoughts, right?

Even though we are putting every extra dime toward our debt, there is finally a sense of peace.  As a couple, we have never felt that peace in our finances until now.

We didn't have a savings account for two years of our marriage, but we accumulated $600 worth of payments per month.  I can just imagine now what I could do with $600 a month.  #shopping Ha! How many payments do you make per month? What's the total sum of those payments?  What could you do with that money?

Fabian and I were walking on a tight rope my friend.  We decided that living life paycheck to paycheck wasn't for us anymore.  We got on a TIGHT and I mean TIGHT budget and haven't looked back since.  Sure we made mistakes and bought some "needs", but we're learning on this journey.


We will become debt-free.
We will not be slaves to the lender.
We will leave a better life for our son.
We will continue to have financial peace.
We will be free.

Life will throw curve balls, but at least we have a plan for them!

I sincerely hope this encourages you. I will be posting some helpful tips in more blogs!

My next blog will be how we saved $1,000 and paid off almost $10,000! #lifechangehappeningpeople!