Financial Planning 101

How are all your goals going so far this year?  Especially those financial goals to stay on budget and be on track for anything you are saving for?   I am a little obsessed with the subject, but I really want to learn more.  Here are some post I have written in the past on financial planning.  We are on a modified Dave Ramsey program still.  We don’t do all cash, but we also don’t have a credit card.

One of our financial goals this year is to buy our first house.  We have been renting for almost nine years and we feel like it is time to get a house of our own.  A place that is ours.  And not to pay for someone else’s  investment, but put money into our own.  Where we live there are a ton of foreclosures and short sales and good deals on property and building.  We did put an offer in on a house last week and didn’t get it so we will just keep movin’ on and pray we will be guided as to where to live.

Do you remember these 7 tips?  Guess what,?  We will be completely debt free  and have 4 months of expenses in savings by March 1st!!  Yeah, we are so excited!  I really never thought we could do it, but we have.  One big way we are doing this is by using our tax return.  Nope we aren’t going on vacation with it, No we aren’t going to buy that big TV we want, we are going to pay off my husbands student loan and SAVE the rest.  SO hard, but so worth it!!

Here are Dave Ramsey’s Seven tips for Financial Peace
1) $1,000 emergency fund
2) Pay of all debt with the debt snowball.
3) 3-6 months of expenses in savings
4) Invest 15% of income for retirement
5) College funding
6) Pay off your home early
7) Build wealth and give

So our next step is #4 which is not my forte.  I really don’t know a lot about investing, but I now people who know a lot and am going to pick their brains so I will better understand.  My friend {a woman} does all the investing for their family.  She does it all on her own.  She trades, she purchases, she is a smarty!!  This last year they were able to buy two Newer cars with cash.  That’s pretty impressive, so I am going to pick her brain and learn.  Maybe I can even get her to teach all of you!!

In a post I wrote awhile back I wrote about becoming wise consumers.  I think it is hard to not want to buy what you want right when you want it, especially if there is money in savings.  Like right now I want a wheat grinder, but I have not budgeted for my wheat grinder.  So I  need to plan for and budget for it and not take the money from our vacation fund, or emergency fund, or furniture fund.  I need to have my own fund for buying a wheat grinder 🙂

Great Steps for Becoming Wise Consumers…
• Planning
• Delaying gratification
• Spending less than you make each month.
• Cutting expenses by becoming a wiser consumer.
• Living by the principle that a dollar saved is worth more than a dollar earned.

I love these two quotes…

“Wealth lies not in the extent of possessions, but in fewness of wants.” Unknown

“Most people give up what they want most for what they want right now.” Unknown