Debt is Dumb! Cash is King!
Janel Barksdale jbarksdale424@gmail.com Diane Windsor diane@warthog.com
If you live like no one else, then later you can live like no one else!
Growing up, my parents didn t teach me about finances they thought they did, but they didn t! In 2005 I got divorced and we had LOTS of debt. I knew I needed to get out of debt, and start saving money, but HOW???
In 2006, as I was listening to the radio, I heard Dave Ramsey for the first time. I didn t think it would work for me. I was too old I had too much debt I didn t make enough money I love his advice because he provides stepby-step instructions.
If you don t have any payments, what do you have? You have MONEY! What does it take to get out of debt? You have to really, really want it. There is no quick fix. Discipline Sacrifice Long-term goal is more important than a quick indulgence
Budget is not a curse word! Spend your money on paper, on purpose Tell your money where to go, instead of wondering where it went.
June 11 - $1,250 Water/Trash 50 Gas 50 Telephone 35 Cable - 50 Cell Phone - 55 Groceries 150 Giving 20 Wine 20 Dining Out 25 Gas for Car 75 Pool 20 Entertainment 25 Christmas 25 Pets 10 Household - 25 Blow - 25 Haircuts 20 Clothes - 25
June 25 - $1,250 + 545 = 1,795 Rent 600 Netflix - 13 Electricity 125 Gym - 20 Groceries 150 Giving 20 Wine 20 Dining Out 25 Gas for Car 75 Entertainment 25 Christmas 25 Pets 10 Household - 25 Blow - 25 Pool 20 Haircuts 20 Clothes - 25
Should the monthly child support payment that you receive be included as a line item in your budget? NO!
$592.00!! It takes about 3 months to really get used to a budget You need to stick to it It doesn t mean that things won t change! Write it down!
Car needs repair Refrigerator quits working Your crazy 12-year-old broke his glasses again! Illness / Medical
Christmas Birthdays Vacation Those really cute shoes that are a really good price at Dillards These are all items that you should budget for
If there isn t money in the envelope, you can t buy it!
Groceries Restaurants / Dining Out Gas and Oil for the Car Car Repairs and Tires New Clothes Dry Cleaning / Laundry Toiletries / Cosmetics / Hair Care Blow / Pocket Money Entertainment
Why? Doesn t it make more sense to start with the highest interest debt? Money is emotional that s why they call it personal finance It feels really good to knock out your smallest debt
Take any extra money you can scrape up, and put it toward the principle of your smallest debt. Keep making minimum payments on your other debts.
List of Debts Debt Begin Balance Pmt Pmt Pmt Pmt Visa 500 250 175 50 0 Mastercard 2,000 75 75 75 75 Student Loan 5,000 75 75 75 75
Take the money you were paying on that, and apply it to the next one. Hence.the snowball effect
The Snowball Effect Debt Begin Balance Pmt Pmt Pmt Pmt Balance Visa 500 250 175 50 0 PAID Mastercard 2,000 125 75 125 75 125 75 125 75 1200 PAID Student Loan 5,000 75 200 75 200 75 200 75 200 4700 3300
When each debt is paid, celebrate If you have a set back, don t get discouraged Don t make a permanent decision over a temporary circumstance. Pay your good choices forward.
There are 4 main areas of money that children need to learn: Work it is how money is earned. It is important that they understand this as early as possible. We will talk about allowances shortly Saving is how you plan for the future; both short and loan term purchases. You want to train your children to be lenders and not borrowers Spending Wisely spending is done differently when you are spending the money you earn. Spending is the reward for disciplined saving and working
The purpose for an allowance is to teach children how to handle money. In general, children can begin understanding the concept of money at age 5. The starting age is up to your discretion. Don t tell me where your priorities are. Show me where you spend your money and I ll tell you what they are. ~James W. Frick
Age 3-6: Should match their level of understanding. Should let them see you pay bills. Should know what things cost and that you make choices based on a plan. Age 6-13: Allow them to open the household bills excluding what you are not comfortable for to know based on the temperament. Let teens write checks for utilities or do the online payment. Age 13-BYE!: Let them pay their own bills and assign them a household bill to pay like the water bill so they have responsibility and the value of contributing to the household Tell me, and I ll forget. Show me, and I may not remember. Involve me, and I ll understand. ~Native American Saying
Age 3-6: Savings jars - clear containers Age 6-13: allow your child to complete the deposit tickets to their savings account and make the entries Age 13-BYE! Establish a checking account with a debit card and assist them with balancing the account