Sigh, money. I love and hate it. Over the years, I have learned to love it less, but need it more. It is the sad truth. We have been working HARD on our debt the past 2 years. And we need to work a little harder now that we are adding to our family. I think our biggest downfall for years was, 1. credit card dependency and 2. NO TRUE financial goals. We got money in, we spent it, we wanted something outside of our means, we charged it. That was our life. And even though we were diligent about making payments and using 0% financing and using taxes to pay off debt, we still were sinking FAST.
Travis and I earn a decent living, nothing fancy, but what we are able to do with our money is awesome. We provide for our family of 6. We send our kids to private school. We take vacations, we have nice things. Our kids have cute clothes. We live a good life. I remind myself this EVERY time our budget falls short. WE LIVE A GOOD LIFE. That life does take sacrifices. We drive older cars. We bought a fixer-upper house. But our mortgage is a THIRD of what most of my friends are. WE rarely have date nights or see movies (I think MAYBE one movie a year and eat out MAYBE 2-3 times a year). I don't get pedicures or manicures. I get my haircut 2 times a year. We make small sacrifices in order for the things we want to work. And now I am ready to sacrifice MORE to get what I want...OUT OF DEBT.
If I am being honest, our debt is BIG. Compared to our income. A bulk of that debt is student loans, which I feel fine about. It was worth it. A small portion of our debt is our mortgatge, car loans (almost gone!), and home improvement cards (heating system finance, lowes card, etc). THen there is a HORRIBLE chunk of it that is one thing....CREDIT CARD DEBT. I hate that part. That is the part I look at and regret. And it doesn't go away quickly.
We have been working on our debt snowball for a while. And we do great at it. Problem is, we can only attack little bits at a time. Why? We have no extra budget. We only have our tax refund usually to use towards this purpose. Every month, we fall short or even with our money. Depending on my work. January and February, we usually are WAYYYY short and then the rest of the months, we get by just fine. We are wanting to stop that. On December 31, I logged onto our daveramsey.com, plugged in our numbers to the new tools and he told me that if we pay $75 EXTRA a month to our debt snowball, our debt would be gone in 6 years. ALL OF IT...including the house payment. $75 extra for 6 years. DAMN...that sounds lovely. I can't even imagine the day that I have NO DEBT and the $ we make outside of utilities is FREE MONEY. Wow. That would be amazing. So, right now, I am working to make that happen.
SHORT TERM FINANCIAL GOALS:
1. Determine actual monthly budget needed from me after Travis' paycheck. Put that amount aside for EACH month.
2. CUT our extra monthly spending. BYE BYE biscuit company. That was by FAR our biggest splurge. 3-4 times a week at $10 a pop. yeah, add that up quick. There is the $75 easy.
3. Make a better Grocery budget. Meal planning and really stopping extra "food" expenses. Like today, when I took the kids into the store and bought $25 EXTRA in stuff outside my list. NOT GOOD.
4. DO NOT ADD TO THE DEBT. This is going to be the hardest. Even though we are credit card free, we still USE our lowes card to fund our house projects. That is going to have to stop until we build up a "budget" for home improvement.
FINANCIAL GOALS:
1. Be Debt free before my kids start college. COMPLETELY. House, cars, student loans, EVERYTHING. Sounds easy, but you have think...Austin is almost 10. I don't have long to do this. :)
2. Have 3-4 months of our income in savings account for emergencies.
3. start college funds for all boys (Austin is the only one right now) and contribute to them monthly.
4. start a retirement fund.
Although, when I crunch the numbers (which I spent ALL of last week doing), it looks like a clear path. And then you stop and think...THIS MEANS NO SPENDING. NO cute baby clothes splurges, no home improvement projects, no date nights, nothing, for a while...until we get back on our feet. And this possibly means no family vacation this year. Which I hate to death, but we got to get a handle on our budget...and this is the way my friends. I will be honest...this is going to KILL me. KILL ME. I need a little flexibility in my budget. I need some fun, but I know after a few months, it will start to be the norm and I will be ok.

So, look for budget updates this year. I am so serious about making this work. I think I am becoming my father. lol. I have spent HOURS upon HOURS looking over statements, crunching numbers, figuring out plans, and I am ready to do this...gazelle intense (for my fellow dave ramsey peeps). Watch out debt...here we come!