Tag: Dave Ramsey

Renewed Sense of Purpose

It’s been ten years since I first took Dave Ramsey’s Financial Peace University. For the first time, I felt like I knew how to handle budgeting (I used to think it was inhibiting, when it’s actually incredibly freeing) and how to tackle debt. I met Brennan a few months later and eventually taught him what I had learned.

When we got married, we both brought debt (student loan and other debt) into the marriage. Our total amount of debt was $106,929.39. Staggering. Crippling debt. But, we followed Dave’s plan (with a few detours) and committed to knocking that out as quickly as possible.

We bought our first home six years ago because we saw the profit potential and knew it would be a way to become debt-free even faster. And it worked.

In our first six years of marriage we paid off $85,000 and were down to only my student loan. But then we became lazy and, when tempted to take out a large construction loan to remodel our new home, we gave in impulsively to have the instant gratification. While not in debt to the extent we were when we first got married, it’s debt, regardless, and it has been difficult mentally to get over our mistake.

Our new church announced that they were offering the class beginning in January, so we decided that it was time to take it together and get back on track. We have continuously budgeted our entire marriage but it’s time to start the “debt snowball” once more.

Now that we have children in our home again, we’ve realized that THEY are our motivation and purpose. We never want to have to tell them they can’t participate in something because we don’t have the money if debt is the reason. 

Our goal is to be debt-free by the time they turn five. That is fifty months from now.

We have a plan. We’ve tightened up our budget as much as possible – which led us to realize that we surprisingly don’t have a spending problem, but rather an income problem (in terms of having extra to be aggressive with debt payoff). We weren’t sure what to do, but we prayed for opportunities to earn extra money that could be applied directly to our debt.

And, as always, God is faithful to His children.

I was presented with the opportunity for a new part-time job that will not only bring in some extra income but also help us cut our food budget and simplify meal planning (and give me a much-needed break a couple of nights each week).

And then, on Friday, I was offered a promotion at my other part-time job that not only pays more but it’s a lot more responsibility (being the manager on duty – MOD). Not only was this an answer to my prayer, but I was an answer to their “prayers” because it’s only 1-2 weekend days a month and they didn’t know how they would find someone willing to work so few hours. Then they remembered me, my qualifications, and how I’m currently only working there 1-2 times per month, and they said it was the perfect solution all-around. God’s hand is clearly in this. 

This all happened in the last three weeks and we’re still in awe. 

We didn’t pray that God would just hand us money (though we wouldn’t say no 😉 ) – we prayed for opportunities to EARN it, and He came through quickly and amazingly!

I share all of this as an encouragement. ANYONE can do what we’re doing. EVERYONE can become debt-free even though it requires dedication, sacrifice, and hard work. As Dave says, “Live like no one else so that later you can live and give like no one else.”

We are “gazelle intense” and ready to pay off my student loans and this construction loan as soon as we possibly can. The future of our children is worth the sacrifices we make now.

Even So…

The common theme of the past six months has been hurdles. Things haven’t been going as smoothly as we would like and we’ve come up against some significant challenges.

  • Buying this house came with one obstacle after another and cost more than we anticipated not only to buy it, but to do the necessary renovations (that still aren’t done because we ran out of money). It seems like all of our Dave Ramsey progress was lost and we’re having to start over again in our process to becoming debt-free.
  • We drained our savings (and our HSA) to pay for IVF (though MUCH of the cost was donated by generous and amazing people and we are SO very grateful!), and it’s tough to rebuild it.
  • We started an AirBnB in the apartment upstairs and have LOVED running it. It has brought joy to us and to the families and single mothers we have been able to serve and bless through this venture. It has also been hugely beneficial financially. 

    However, two of our neighbors are “uncomfortable” with the idea for ridiculous reasons (they don’t understand AirBnB at all, essentially) and they filed complaints with the township. We were forced to make a decision to either pay $450 and wait three months (and go to two zoning board hearings) to try to be rezoned for this type of use (no guarantee of approval), or give up and just get a tenant (less income, loss of the opportunity to help others enjoy Hershey and run an AirBnB; loss of space to host family and friends and bands (through RYFO.org) upstairs).

    Ultimately, we’ve decided to try to find a tenant because some battles aren’t worth fighting. The township needs to modify their rules about AirBnB instead of trying to make it fit into other molds and making it impossible for residents to do. I am proud of my letter to the township supervisors and hope that it will make a difference in the future for property owners to use their property as they choose.

  • I haven’t had much time to finish my book proposal or to find an agent, even though my manuscript has been complete (and edited) for six months. I’m struggling to remain positive about it being published, even though I believe that the Lord led me to write it for that purpose.
  • I am committed to do many good things, but finding a balance and remaining disciplined has been a challenge.

Even so, it is well with our souls.

It hasn’ t been ALL bad, but the hard things in life tend to overshadow the good; when we focus on the positive we realize that we have had some GREAT things happen:

  • We thoroughly enjoyed our trip to California, Oregon, Washington, and ALASKA in June and returned home feeling rejuvenated even though the trip was exhausting. Seeing the beauty of God’s creation and spending treasured time with family was worth every lost minute of sleep.
  • We found out that we have THREE embryos (out of the five) that are healthy! Two are not even carriers of Krabbe! The fourth embryo needs to be retested, and the fifth has chromosomal abnormalities that are not survivable. We are thankful for these 3-4 and will hopefully do the first transfer in August.
  • Thanks to my dad spending two weeks out here, we’ve nearly completed the basement projects (laundry room/bathroom drywall and paint, etc.). We’re going to be ready for hosting bands and other guests so soon! Since we’re giving up the AirBnB this space will allow us to continue to minister to bands through RYFO – an amazing network of host homes for touring musicians.
  • Brennan and I are trying to become much more disciplined than we are currently in every area of our lives. It’s a struggle but we must overcome and become self-disciplined.

Through it all, my heart has remained at peace because I trust the Lord completely and I have absolute faith that this is all happening for a reason. As the popular song states, “Let go my soul and trust in Him, the waves and wind still know His name…” He is still on the throne, He is still in charge, and, most importantly, He still LOVES us. In those moments when I feel worry start to encroach on my peace, I stop and pray and remind myself that He’s got this.

And so we press on, knowing that it will all turn out alright.

Book Review: Smart Money Smart Kids

Smart Money Smart Kids is a MUST read for any parent who wants to ensure that their children learn from an early age that money is a responsibility to be taken seriously.

It’s no secret that I am a HUGE fan of Dave Ramsey’s principles – they have changed our financial outlook forever.  So, when I saw that he and his daughter, Rachel, were writing a book about how to instill financial wisdom within children, I was immediately excited. Even though we have a few years before we’ll be teaching our not-yet-born daughter about money, it’s really important to start learning these lessons now so that we can implement them later with ease.

Dave and Rachel have broken down important concepts – such as budgeting, college, working hard, etc. – into “easy to reference later” chapters so that it’s not only something to learn from now, but a book you can reference again and again as you parent your children into adulthood.

In this culture of credit, debt, and impulsive spending, it is SO vital that we teach our children to save, give, and to WORK. Otherwise, they will fall into the same traps that we did – student loan debt, car payments, credit cards.

I long for our children to experience the freedom that we are working so hard now as adults to achieve! We are ready to break the chains of debt in our family tree and to teach our children to “live like no one else” – which will change the legacy of our family forever. This book has prepared us well for what lies ahead and has been a great reminder that we must also LIVE OUT these concepts if we want our children to embrace them.

I will blog about specific concepts later – but I couldn’t resist the opportunity to share this book with you!

To pre-order the book AND receive extra material, click here! It will be released on April 22, 2014.

I received a copy of this book from the publisher in exchange for my honest review.

Day Twenty-Five: I’m Thankful For…Dave Ramsey.

Preface: Last year I decided to express my thanks during the month of November for something new each day, as so many others have done before me. I never finished this series, so that’s my goal this year. I am re-posting the ones I wrote last year and adding new ones. This one is new. :)

In January 2009, my church offered a class called “Financial Peace University” by Dave Ramsey. I had never heard of Dave, but I was in desperate need of financial peace. I had a lot of debt (both credit cards and student loans), I didn’t budget, and I was always uneasy when it came to money matters.

I can truly say that this class changed my life. 

Throughout the thirteen weeks of this class, we learned about the importance of having an emergency fund of at least $1,000, how to budget, how to prioritize our debts to pay them off in what Dave calls a “Debt Snowball” (smallest to largest debts), what types of insurance we should have, how to save for retirement wisely, and many other practical tips.

We learned that it’s important to “Live like no one else (meaning to make sacrifices now) so that later you can live like no one else (debt free and able to do whatever you want!).” This simple phrase makes it easier to sacrifice things that we may want right now for the long-term goal of being debt-free.

My favorite lesson was the last one, the one that focused on giving. Dave emphasized that the greatest thing about being debt-free is the ability to “give like no one else” because you don’t owe anyone anything. 

Since going through FPU, our financial outlook has changed completely:

  • We LOVE budgeting and the peace that it brings. Seriously. We tell our money where to go – we don’t wonder where it went.
  • We have NO credit card debt (paid off our last one in August 2012) AND no credit cards!
  • We were able to buy a house last year.
  • We are hoping to be completely debt-free in a couple of years (if we sell our house, we can pay off our student loans with the profit).
  • We give so much more than we did before, and it is such a blessing to be able to do so.

If you haven’t taken the opportunity to take one of Dave’s classes or read his books, please do so TODAY. He’s having a huge sale from now until Christmas (I believe) and most of his books are drastically discounted. It will be the best investment in your financial future that you have ever made!