Financial fitness group Part 1

I am a financial advisor and would be glad to give any advice. Everyone already knows the big tips like "Don't charge something you can't afford to pay cash for" or "Know the difference between wants and needs" or even "cook at home instead of eating out." Those are all wonderful tips. I also like to focus on little things and things people don't think of like shop around for insurance and don't have comprehensive on an older car. Turn your thermostat 1 degree hotter in summer and cooler in winter and you could save up to 20% of your heating/cooling costs. Also, one of my favorites is every penny counts. Things add up fast. I have clients who say "Well you showed me how to save $5/day but that's nothing when I'm $5000 in debt." True, $5/day is a drop in the bucket. But in a month that's $150. In a year it's $1825. In 10 years it's over $18,000. The problem is people are often unable or unwilling to think that far into the future. We're a society of instant gratification. If the debt can't be erased immediately then why does it matter if I buy another new pair of shoes? If the scale didn't move enough this week then why does it matter if I have this pizza? Think back 10 years (assuming you were old enough to have a real job 10 years ago). Do you think you could have saved $5/day starting 10 years ago? What about $2/day? If you had saved even $2/day 10 years ago you'd have $7300 today and that's if you stuck it in a mattress and didn't earn any interest at all.

I want in!!! I'm always trying to find ways to better my financial situation. I just today (coincidently) downnloaded an excel budget program to help me track my spending & keep on top of all of my expenses. I am 35 & paid off my house 5 years ago, 2 years ago, I paid off all my credit card debt and am currently close to paying off my truck one year early. I keep an "anti-credit card" account & I also have additional savings that I use to accumulate money for christmas, taxes, house & vehicle maintenance so as to be prepared for those unexpected costs when it comes time for car repairs and renovations.

Unfortunately this month I had to charge about $3000 in dental bills and I am planning a destination wedding next spring. My plan is to keep that under $4000. So at this point, I need to decide how to pay for those things without getting off track on my plans to pay off the truck in November, and my plans to save for a down payment on a new (used) car next summer. Any advise is appreciated.

I already do all those little things to save money, coupons, shop around, visit flea markets, repurpose old things, grow a garden. But there is always unplanned things that come up, birthday parties, gifts I have to buy, friends selling fundraisers, etc. Up to this point, I was comfortable with what I budgeted for my bills, expenses & savings & just get by on what's left for spending. I want to get a lot more detailed with tracking my gas & grocery & extra spending cash because I know there is more room for savings!! I've become obsessed with saving & after going for a couple of years with no credit card debt, I am freaking out that I am carrying a balance again!!! It's only $3000 now, but will soon grow when I book my wedding trip!! That is why I downloaded the excel budget plan I mentioned. Ok, yeah, it did cost me $15, but I definately plan to put it to good use. Anyone interested in it, there is a free demo you can check it out before you buy.

http://www.simpleplanning.net/Financial Calculators/BudgetPlanner.html?gclid=CICujbOnz6sCFYK-zAodCCN0Tw

@ hinezie -- Contact the credit agencies directly and submit a copy of the paid debt along with a letter stating what you said here. Then report the debt collection agency for breach of fair debt collection practices. They cannot dictate the terms at which you repay. The fact that you pay it off whether it's an amount they like or not, is what matters.

EmilyRanae22: I'm with ya on the not using the card thing. I do use my card because of the points my (soon to be) husband gets for Cabellas Merchandise. Over the years he has earned over $1200 worth of expensive hunting gear. BUT I always pay it off & we don't carry a balance. I charged the dental bills & actually haven't received the bill yet. I have almost enough to pay it off, but it will interfere with my plan to pay off the truck & other financial plans I have made. I guess my original plans need to change & I haven't decided what my plan of attack is yet!!! My boyfriend is working alot of overtime so we have some extra cash coming in & I'm hopeful we will bet back on track with saving instead of paying debt.

As for the wedding thing, I know people that spend $30,000 and up on a wedding. That is too much if you are just starting a family. In my case, I did the family thing first, we've been together 12 years, we both have kids from previous relationships & they are older now. We put off getting married for a long time, our kids, house, life, etc took priority but now it's time for us finally & I'm not interested in breaking the bank to get married. We are just going to run off together & do it. Ideally we would like to spend $3000 on an all-inclusive resort, but I understand it may go up to as much as $4000, but that is my limit. Some of the resorts offer complimentary wedding ceremonies. The alternative is a quick justice of the peace before we go off on a honeymoon. I'm buying a cheap dress too!!! Just want a simple white sundress & I'm going barefoot!!

@ hinezie -- Contact the credit agencies directly and submit a copy of the paid debt along with a letter stating what you said here. Then report the debt collection agency for breach of fair debt collection practices. They cannot dictate the terms at which you repay. The fact that you pay it off whether it's an amount they like or not, is what matters.

Thank you so much!!! I am definitely going to take your advise and do what you said.

My goal by the end of this weeked is to re-evaluate my budget, determine how I am going to move forward on paying debt & continuing to save, develop a plan to stick to it!!!

Sounds like a good goal. It sounds like you are not "carrying a balance" on your credit card so if you know you're going to pay it off I wouldn't let it stress you out. But i know how putting things on cards can cause anxiety. I wish I could use cards for the benefits but i'm no good at it so I just stick to cash

JM and EM!!!!!
Love that you guys know each other!! WOOT WOOT!!! Financial Party on MFP!!!!!!

*BUMP* for later, I would like to join this thread too.

Hello, I just discovered this topic and am glad to have found it. I love Dave Ramsey and read his financial peace book a long time ago. My trouble is I don't have any credit cards, I just can't seem to spend wisely which leads to NO SAVING. I will check out the website this evening and post more later.

We also are doing a "no spend month." (see link for more information) http://smallnotebook.org/2008/07/01/july-is-no-spend-month-whats-it-about/

I have done this before a few times...with a twist. The day after paying rent, car payment, etc., I will start a ten day, no-spending "spree." Let's just say that I hope that I had some foresight and had groceries.

The last time I did this was in July--middle of the summer, so there was plenty to do, right? I had a full tank of gas when I started, but my commute drains it by about day eight or nine--so I had to be chary of my car usage. In fact, I did end up carpooling one of the days.

Going even three days without spending a red cent was terribly difficult; however, I did make a minor concession--I could use the barter system for anything that did not include cash. For instance, I swapped records and CDs at my local record store...that's about as close to the "shopping experience" as I got.

I'll probably do another "ten day challenge" in mid-November...possibly leading up to Thanksgiving.
-wtk

Postscript: Emily, you have an absolutely electric smile in your profile picture!