New Year.....Renewed commitment

I'm back!  I should have committed to re-reading my first post DAILY!  That might have kept me on track.  No worries.  We did recently complete Baby Step 2.  Better late than never.  Had we made the radical lifestyle changes Dave Ramsey suggests, we would be much further along.  Again, it all comes back to what we think we deserve and can't do without.  Paying off car loans in the next six months does not seem nearly as satisfying as the gorgeous sweater that's on sale right now at Ann Taylor. I guess I'm referring to instant gratification.  Yep, that's it!  That's part of my nature and I probably can't change that desire, but I can at least try to control it.  One thing I can tell you for sure, I have NEVER regretted reaching Baby Step 1 or Baby Step 2, but there have been many times I regretted a purchase. :)

Baby Step 3 is saving 3 to 6 months living expenses.  Mathematically, we can achieve that in 6 months.  But when you throw in "instant gratification" and life in general, I can't make any promises.  After Baby Step 3, I'm declaring a Step 3.5.  Dave wants us to payoff the car loans and pay cash for our automobiles going forward, but there's no step for "save $20k to $50k for your next vehicles".  So I'm declaring it Baby Step 3.5 :).

More Confessions.....
My husband and I are going to Hawaii for our 20 year anniversary in February.  Now, that trip does not fall into the category of instant gratification.  It was years in the making and is part of the reason we're just now finishing Baby Step 2.  BUT, the trip is paid for and should not hinder our reaching the next step.  No, it's not part of Dave's plan, but I'm not really sorry about it.....

Do you have some ideas for stifling the instant gratification desire and keeping me on track?  Please share :), and wish me luck!

Promises, promises!

Well you know when you announce a commitment to the world, somethings gonna happen to try and mess it all up :).  Actually, nothing really happened other than - I FORGOT!!  In my eagerness to move to the next "baby step", I forgot about a large purchase we've been needing to make.  So, that just means I'm going to be doing some fancy footwork to meet my goal of moving to the next step in 6 months.  I'm not throwing in the towel!

It's all about commitment, planning, responsibility.  I blew the planning this time.  It happens.

Un-cool name

My son just came home from school and informed me that "CFO Mom" is not a cool enough blog name.  Everyone's a critic, huh?

Being financially abnormal, by America’s standards

So, what’s “normal” for the American family in 2011?  Two incomes, two kids, two vehicles, nice house, big mortgage, exciting vacations, and all the kids’ activities to fill up otherwise free time.  Sounds good to me!  That’s how the typical American family lives.  That’s normal!

I’m not knocking any of those things; I’ve just described my own family.  But what are some of the negative effects of this normal lifestyle we live?  I hinted to one already – big mortgage.  How about debt, stress, exhaustion, and being a slave to your 45+ hour a week job?  What’s worse than that, in my opinion, is that we’re teaching our children that this is normal; that it’s just the way we live here in America.

But it doesn’t have to be that way.  At least that’s what Dave Ramsey told me.  I just discovered Dave a few years ago.  His motto goes something like “you have to be willing to live like no one else now, so that you can LIVE like no one else later”.  You have to be willing to make some sacrifices and risk being chastised by friends and family now; but the rewards are so worth it.  Dave has some phenomenal earth shattering ideas like: eliminating debt, saving for a rainy day, living within your means.  Wow, why didn’t I think of that?  I am an accountant!

For me, I think the two biggest reasons for living like the typical American family are (1)It’s normal, and I don’t want to be abnormal.  And (2)I felt like I DESERVED these things.  I went to college; therefore I should have a career.  I work my butt off at my career, therefore I deserve stuff!  Makes perfect sense to me.  But Dave set me straight on both of those.  First, if normal means in debt up to my eyeballs, why would I want to be normal?  Second, I don’t deserve stuff.  I deserve to be responsible, provide for my family and our future, and to set a good example for my children.  No one deserves to live beyond their means.  That’s just dumb.

No, I didn’t make an overnight transformation that made my friends and family think I’d gone crazy.  (Sorry Dave).   I still like stuff and I still fear being too abnormal.  But my outlook has changed.  What if my husband or I lost our job?  How long could we survive on one income?  With $0 in savings, a mortgage, and two car notes….. not very long.  About those car notes, society tells me I’ll always have a car note.  I mean, pay cash for a vehicle – who does that?  I’m going to do that!!!!  Yep, within the next six months, our only debt will be our mortgage.  Do you have any idea how good that feels?  How awesome will that be when my paycheck isn’t spent before it hits my checking account!  Woo hoo!

I just committed to all of you to be debt free except the mortgage in six months (step 2 in Dave’s baby steps).  So I might as well go out on a limb and commit to having 3 to 6 months savings (step 3) by June 2012!!  If you’ve already accomplished this, quit laughing at me.  It’s a big deal for me J.

If you want to learn more about Dave’s baby steps, go to his website www.daveramsey.com