Kathy’s been watching Dave Ramsey’s Financial Peace DVD series, trying to see if it is something she could teach to the high school kids in our Homeschool Co-op next Fall. I happened to pass through the kitchen in my never-ending quest for sustenance.

Sarah demonstrates a controversial new swing technique at the park.

“Hey, who’s the bald guy with the scissors and the Visa™ card?” I asked.

“Shush, that’s … Dave Ramsey,” Kathy spoke reverentially.

No husband likes to be shushed, and immediately I bristled. Why is it that I find it irritating, that my wife thinks highly of some random bald guy who gives good financial advice? I don’t think I’m alone in this. I was talking about budgets the other day with one of the guys I know, and Dave Ramsey’s name came up.

“Oh, him,” my friend sneered, loathing in his voice. “I’m so sick of hearing about that guy. It’s ‘Dave Ramsey this’ and ‘Dave Ramsey that’ at my house, 24 x 7.” Maybe we could put together a support group: “Husbands Annoyed by Dave Ramsey”. Obviously the acronym needs some work.

Actually, he seems like a decent fellow.

I sat down on a kitchen stool and watched a few minutes of the video. Dave’s actually funny and engaging — I can see why people like him. Still, as a husband, I would prefer that my wife seek financial advice from, well, me. After all, I’ve got a receding hair line, and I own a pair of scissors and several Visa™ cards.

Dave spent about 10 minutes talking about how people without an emergency fund get into credit card debt … it was rather chilling to hear the familiar scenario spun out:

You get the credit card offer in the mail, and so you sign up for it and put it in your wallet, assuring yourself that it is ‘just in case of an emergency’. A few weeks later you go out to drive to work, and the car won’t start — turns out it needs a new alternator. Since you don’t have the $322 set aside, you put it on the card — after all, you need the car to get to work — it is an emergency.

At the end of the summer, your kids come in with pants that end just below the knees, and you realize they’ll need new clothes for school. (Dave uses some fun physical humor on this one.) You don’t have money set aside for this — you’re shocked that the kids actually grew over the summer, so you put another $180 on the card for school clothes. After all, it is an emergency.

At the end of November you suddenly realize that Christmas is right around the corner, and (since you don’t have any money set aside) you rush out and buy toys for the kiddies. By this time Dave’s tone is openly mocking: “since it is such a shock that Christmas is on December 25, again. After all … (Dave pauses theatrically) … it is an emergency.”

In January you discover that you owe more than $1000 on the Visa™ card at a high rate of interest, and so the debt slavery begins.

The first thing we did when we started to budget at the beginning of April was to set aside $1000 as an emergency fund. Although we haven’t needed it so far, it has been very freeing to have this fund as a buffer against the ‘need’ to use credit. The emergency fund seems to be at the core of Ramsey’s advice for regaining freedom from debt.

These Norway-bound kids are lucky we bought their tickets last winter, before the budget went into effect.

Now we’re in the happy position of deciding whether to use some extra money to pay down our debts or save for our roof, which may not be as urgent as we feared. As I wrote in this recent post, expenses have tended to be less than we expected, which is one more delightful way that God is taking care of us.

As a husband, I want to be the focus of my wife’s respect. I want her to look to me for leadership and for competence in all things (well, except for things requiring skill as a handyman). I guess my resentment against Ramsey is somewhat misplaced — I need to get my act together in the financial realm, so that my advice could be sought and I would be honored by those who know me well, as one who stewards his wealth in a godly manner.

Daniel, David and Sarah try to stop their siblings from leaving …

I set up the thermometer on the sidebar to show how we’re doing in terms of reducing our credit card debt. We’re determined not to go into debt any further, and to focus on paying the existing debt down as aggressively as we can — watch that sidebar graphic for monthly updates.

Tonight Kathy was scanning airline prices to San Antonio. She had a long talk with her parents this evening, and her Dad was tempting her. “How ’bout using that tax rebate to go to Texas this summer?”, he wheedled. Many summers we have vacationed in West Texas with Kathy’s folks, and it is killing my wife, not to have plans already in motion to go this year.

“$224 per person, that’s a steal,” she chortled. “You should buy those tickets tonight, it’ll save you hundreds of dollars!”

“No, going to Fort Clark this summer will cost me hundreds of dollars, not save me anything,” I countered. “Dave Ramsey would say that we should pay off our debt first, you know.” I thoroughly enjoyed this turnabout in Ramsey name-dropping.

“I don’t want to hear about Dave Ramsey,” Kathy shouted, sticking her fingers in her ears. “La-La-La-La, I’m not listening!” She always is very rational and reasonable when we have these little discussions about finances.

Admittedly, it is less than half of what I thought it would cost … and I’m tempted. Maybe I could earn some extra money in side work, and we could go … ?

Tim
Project 366, Day 131

It’s May first!! I can breathe a sigh of relief and close out April’s obsessive detailed budget spreadsheet. Thank goodness that month is over. I was counting down the days there at the end.

“Must make it to the 30th. Don’t go to the store. Don’t buy anything. The new month is coming.”

It was rather intense there at the end. Ah, on to May.

Proving that I don’t learn from my mistakes, I managed to spend the kids’ entire clothing budget on two items.

On the first day of the month. And went over by $5.

Of course, checking out Daniel’s outfit, perhaps I should have spent a little more. Well, only 30 days left to go in May.

Sigh.

Kathy
Project 366 - Day 122

We’re more than three weeks into our new budget plan, and it seems to be going fairly well. With only a week left, I’m actually looking forward to the end of the month, hoping we’ll come in under our budgeted amounts in some of the categories.

We decided to wean ourselves from credit card use, with the exception of online purchases. The first time I had to fill up my car sans credit, I found myself staring stupidly at the gas pump; I didn’t know what to do. As it turns out, I’ve never bought gas with a debit card – I’ve always used credit (or cash, back in high school). Since my debit card can also work as a credit card, I have to be careful – I don’t want any surprises at the end of the month.

Kathy does almost all of the recording on our handy budget spreadsheet, whenever we spend money. “It’s kind of fun,” she claims. I can’t see how that could be, but leave it to my Kathy to find a positive angle. “It is cool to get control over our finances,” Kathy insists.

Personally, I don’t see much fun in it. I chafe under the restriction of the budget, a lot more often and a lot more sharply than I thought I would. Kathy hoards her grocery and household money, but I don’t really have any category that I can manage except for “Tim’s Unaccountable”, which is my monthly cash allowance. So many of our expenses are fixed or outside our immediate control … it makes me sad.

Daniel can’t handle the stress of the new budget.

One of the factors which made it scary and difficult for us to start this budget plan was a series of unexpected expenses that threatened to overwhelm us. It has been interesting to see how God is dealing with that, especially since we were nearly deterred from our budget plan altogether. As I constantly remind myself, “without faith, it is impossible to please God.” How foolish we would be if we let our fears rule our hearts, instead of trusting in our Father, who loves us.

Not our actual roof …

Since we started budgeting, we’ve had an influx of cash and the promise of cash. First, our income tax refund was larger than anticipated and arrived much earlier than expected. Next, we found that we’ll qualify for the maximum stimulus tax rebate, to be paid out in the third week of May. Out of the blue, I received a letter from my uncle, informing me of a small inheritance from my grandmother’s estate, likely to be disbursed some time this Spring. Finally, just today I received notification of my company’s quarterly bonus (it usually amounts to a week’s extra pay) to be paid out in early May.

In the tub there are no worries.

It is good to be reminded how much God loves us and cares for us. While I don’t expect God to open the windows of heaven every month, it is comforting to see that God is master of the “just in time” inventory philosophy. We’ve been able to meet our immediate needs and to begin to save toward a new roof, something I thought for sure would place us further into debt.

Not that we’d mind having the windows of heaven open every month …

I don’t really have any excuse for being fearful about money. God has taken good care of our family, time and time again. I’m a little embarrassed to have to learn this lesson all over again.

I’m planning, if I can find the time, to create a sidebar graphic that will display our progress, month over month, in reducing our debt. I’m not going to post how much we owe, but I think I’ll show the percentage reduced, so you can encourage us, hold us accountable, and perhaps be encouraged in turn. We’re in this for the long haul this time, unlike previous flash-in-the-pan budgetary attempts. I’m hereby publicly committing to a minimum of six months of sticking to our budget. I know that may seem pretty lame to some, but for Kathy and me, it is a big commitment, so please bear with us.

Thank you to the many readers who commented on the last two money-related blog entries – we have been blessed and delighted with the quality and quantity of godly advice and encouragement many of you have offered.

Tim
Project 366 - Day 115

This whole budget thing is rather strange. Or perhaps it’s just the actual sticking to the budget that I find unusual.

Daniel’s birthday is this week so Tim and I went shopping this evening. We picked up Rachel at the YMCA on our way and brought her with us. We looked at all sorts of things and ended up purchasing some secret items. I can’t go into detail on the blog, of course, as Daniel is a loyal reader and his birthday surprises would be ruined.

Daniel rests up in preparation for his birthday …

I will say that it was incredibly difficult staying within our budgeted amount. We are used to buying one substantial gift and then probably 5 to 8 additional presents. We are indulgent parents in this area. Or at least we used to be. Now we are financially wise and responsible parents.

Sigh.

Knowing how many toys are strewn about the house, shoved into corners and neglected, keeps me from being too sad. Our house is bursting at the seams with fun in all shapes and sizes. The children do not NEED additional toys. They enjoy variety and fresh entertainment, but they don’t need it at the cost of credit card debt.

Daniel, we love you so much! You are a wonderful boy, growing into a sweet young man. I’m sorry we have been so financially irresponsible over the years and modeled poor behavior to you and your siblings. We are excited about your birthday and eager to celebrate with you. Our love for you will NOT be measured in how much money we spend or how many toys we buy. Our love is priceless and immeasurable, there are not enough presents in the world to demonstrate our joy in being your parents.

Happy Birthday Week!!

Kathy

P.S. How do you all plan birthdays on a budget? I have Joshua running the party itself and the siblings sharing in the present exchange, but I would LOVE some additional ideas.

Today is the first day of our new budget!! Weaning off credit, paying down debt, and, gasp, saving money.

April Fools Day obviously suits us perfectly as the start of something so revolutionary and life changing.

And, in keeping with His great mercy, the Lord has already blessed our efforts. I ran into a friend last week whose daughter is studying at the Redken Hair Academy.

Time to cut Rachel’s hair.

I cut all the boys’ hair in the family so we save money in that department (thankfully none of them, including Tim, are particular about their hair). The girls, however, are a different story. The expectations for us to look beautiful are higher. It’s a burden we’re willing to bear, with grace of course. Rachel and Sarah both have long hair and only need the occasional trim. I tend to splurge on the rare, but expensive, cut and color.

Have I mentioned recently how lovely it is to have daughters?

What are the beauty academy prices, you ask? Well, let me share with you:

Hair Cuts - $9
Children’s Cuts - $5
Highlights - $29

Those fees are amazing!! I immediately made an appointment for both Rachel and myself. I figured if the haircut turned out well, I could go back for highlights.

Nothing like a fresh cut to improve the day.

Rachel and I were tickled with the ambiance and setting of the hair institute. The academy was professional and tasteful in decor and atmosphere. It felt more like a busy, fashionable salon than a school. Krista did a beautiful job. She was confident and friendly, taking care to listen to our requests and talk through different hair style possibilities. At each step an instructor came by to monitor and approve the work. Rachel and I were thrilled with our extremely affordable and gorgeous new looks. Krista even gave us a tip on the styling brush she used - $7 at Sally Beauty Supplies.

Rachel’s new style is fresh and funky.

Redken Professional Academy definitely works for us! Stop by Rocks in My Dryer for other links, tips and ideas.

Kathy
Project 366 - Day 92