Money Matters

Well, our retirement account was a little down this past Friday compared to the week before.  :(   And this, despite the fact that the Dow went over 11,000 last week. Bummer.

You see, I have started checking our bank accounts every Friday lately, so I noticed. This is where the Internet and having access to account balances with a few clicks of the mouse is soooo handy!!  :)

It all started with The Suze Orman Show, and her financial snapshots of people when they’re wanting permission to buy something in her “Can I Afford It” segment of her TV show. (I love that segment. It’s so funny!)  Anyway, that started me wondering what our snapshot would look like.

Basically, that snapshot is a quick view of your finances consisting of the financial figures for your Monthly Income, Monthly Expenses, Debt, Savings, Investments, and Retirement Plan. It’s a bottom-line inventory of where you stand financially, 1-2-3.

I like it. And it has helped me get into this new habit of checking our account balances and running a total every week. Hey, whatever helps, right?

And I like knowing what is, money-wise, and this has been an easy way to find that out. It’s also helped me be a little prompter in balancing the checkbook, too. (oops)

We’re also trying something else new this year, just for a few months: I’m keeping a list of monies In and Out for the month, aside from the checkbook, complete with a Running Net Total.

I list on a sheet of paper any $ item in date order: any checks or debits (out) and any deposits (in), and then I keep a Running Net Total column on the far right. That is the only way we could really see clearly if we are saving money that month and how much. Otherwise, it all just tends to blend and blur together.

And while we’re on the subject of money, let me be sure to mention how much we love Dave Ramsey. (!) Does everyone here love Dave already?? Well, just in case, I’ll mention his website: www.daveramsey.com, his radio and TV shows, endorse his Financial Peace University class and his books, and encourage anyone to go and get your house in order, if it isn’t already.

Dave Ramsey’s Baby Steps are the place where everyone should start, and you do them in order.

For more info, check out his website: http://www.daveramsey.com/new/baby-steps/

Okay, here are Dave’s 7 Baby Steps:

First,
#1. Get $1000 in savings in an Emergency Fund.
(Tip:  liquidate some of your assets by having a garage sale, etc.)

After you’ve done that,
#2. Pay off your debt using the “debt snowball”.
(see website for details)

(Now you’re debt-free except for the house!)

After you’ve done that,
#3. Get 3-6 months of expenses in savings.

After you’ve done that,
#4. Invest 15% of household income into Roth IRAs
and pre-tax retirement plans.

After you’ve done that,
#5. Save for college for your children.

After you’ve done that,
#6. Pay off your house early.

(Now you’re 100% debt-free!)

After you’ve done that,
#7. Build wealth, give, and be a blessing to others!

See how I highlighted that phrase? "After you've done that."  That’s because it’s a sequential list. You don’t do it all at once. Dave has prioritized all this for us, so all we have to do is concentrate on just the one baby step we’re on right now. And you may be busy on Step 2 for a few years, or on step 6. No problem! Where you are is just where you are. At least you know what to do now and what to do next.

See, before Dave Ramsey, money matters seemed way more complicated than necessary. The whole world of Investing kept trying to jump in before its time. And doing his 7 Baby Steps keeps you busy for awhile, and outa trouble.  :)

And now, checking our accounts weekly just helps to keep things front and center for me.

Okay. That’s it. For what it’s worth. Now you know.

As Dave says, sometimes free advice is worth exactly what you paid for it! Ha-ha! So that’s my disclaimer for today, although I truly believe his course of action is solid.

To financial peace for all of us…

XOXO,
Lucky Dog
♥