Getting Back To Basics When Life Throws You Off Course

We were so busy in the month of August that I didn't even have time to realize that our days in what once was our "forever home" were numbered. Then one day I got home from work and was half-way out of my car when it dawned on me, "This is our last night in our house."

Dani and I have decided to move in with my Grandmother for the time being as we continue our attempts to sell our house. By doing so we hope to save on some heating costs this winter while giving Grandma some much-needed helping hands around her home.

With this change in our living arrangements our financial situation has changed some too. It will likely change again once the house sells and we're out from under the burden of homeownership, and it will change again in a year or so when we find a new house... or apartment... or something.

All of this means we need to take a "back to basics" approach to our budget, which, when you think about it, isn't a bad thing to do every now and then anyway.

Since leading Financial Peace University, Dani and I have kept in touch with some of the people who attended. Some are doing well. Others have backslidden. One lady approached me last week and said, "I hope you're not planning another FPU reunion because my husband and I have made no progress with our finances at all!"

People in that kind of a situation think I'm going to be mad at them or disappointed, but there's no way I can fault them for their mistakes when I make plenty of my own. The more important thing is no matter how many times our financial mistakes trip us up that we dust ourselves off and get back up. Sometimes that may involve a budget "Reset," especially if you haven't been keeping track of your income and expenses.

We live in a society of perfectionism, where one mistake by a political leader or celebrity earns them a lifetime of public shunning, unforgiveness, and hatred. Anyone remember actor Mel Gibson's drunken anti semitic outrage back in 2006? Of course you do. Because despite his numerous attempts to publicly apologize for the incident and seek forgiveness from the jewish community, Gibson is still far more hated in America today than he is loved. Why? Because we found out he wasn't as cool and collected and heroic as the characters he portrays in film? Because we found out that he's a real human being with real problems?

Our culture, while admittedly imperfect, demands perfection. The moment someone doesn't live up to our expectations we diminish them.

Instinctively we apply this type of thinking to ourselves far too often. When we're faced with a project we can't complete perfectly, we quit. When stuck in a marriage that doesn't reach our standards, we divorce. When we're unable to follow a financial plan, we ignore it.

We know we're imperfect.

We say we're not striving for perfection.

Yet we fault ourselves, and others, when perfection is not obtained.

I don't know about you, but the word "absurd" comes to mind.

Perfectionism isn't really about being meticulous and perfect anyway. Essentially, it's about fear. We fear failure. We fear making mistakes. We fear disappointing others. Which is why people act so ashamed when they admit to me that their falling short on their financial budget.

Look, it's no surprise to me that you've fallen short. What would surprise me is if you said the budget is working great, that you've never screwed up, that you follow it to a T, you love it, because at that point I would just assume you're lying!

Maybe it's time to get back to some basics. Don't let the latest mistake keep you down. Revisit that budget, find out where you went wrong, and get back on track. Cut the fat. Mind the frivolous spending. Start putting money into savings again. Don't give up just because you've messed up.

Dani and I are going to be making lots of changes to our budget in the months ahead because our financial plan, as we laid it out years ago, has not become what we wanted it to be. Some of that's because of mistakes. Some of it's just plain the result of life interjecting the proverbial monkey wrenches. But all of that doesn't matter as long as we don't throw in the towel.

So, bear with us as we continue to figure it all out. And, while you're at it, pick up that budget, dust it off, and dive back in!

Keep pinchin' :-)

Breaking Free Part 4: The Things We Didn't Give Up

It's been two years since Danielle and I started down this road toward debt-free living. It's been a challenge, a fun ride, a ministry, and a blessing, all rolled into one adventure. This week we'd like to look back on our journey, share some of the intricacies of how and why we do it, and hopefully encourage you to gain some ground in your financial battle.

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Too often Danielle and I harp on all the sacrifices we've made. No movies. No restaurants. No this. No that.

Woe is we!

Although it's the sacrifices that are the hardest, there's lots of other stuff that we DON'T sacrifice. Like Superman holding back that train, or a fly bouncing against the glass, we're determined not to surrender these things, stubbornly holding onto them in dogged determination to retain some sanity in the midst of all the sacrifices.

This is kind of an essential part to this whole journey, actually. Because you can go too far with all the penny pinching, the budgeting, and the Dave Ramsey fanfare. To really be successful—and to not go crazy—you've got to be stubborn in some areas. So here are some of the things that Dani and I have refused to give up.

(Also note that these things are different for everyone. What you chose to keep might be totally different.)

Giving

I'm a natural giver. I love blessing others, but I always wish I could give more. In the past I wouldn't hesitate buying a birthday present for someone that cost more money than I could afford. "I'll get my paycheck next week," I'd tell myself. "I'll just pay for it then." But that's not a good habit to get into. Like Dave Ramsey is fond of saying, "Live now like no one else so that tomorrow you can live and give like no one else."

So, someday, Danielle and I will have the money to "give like no one else," but for the time being we need to be a bit more conservative. Still, we like to give, to others and each other. So we have a fund for birthday presents, Christmas gifts, baby showers, weddings, and anything else that may come up. It's not a lot, but it's what we can manage for now.

Tithing

Apart from giving to others, Danielle and I believe that, first and foremost, we need to give to God. Tithing honors Him, it reminds us that everything we have comes out of His hands, and it increases our faith. We have never not tithed since the day we got married, and we intend to keep it that way. The missed blessings of not tithing aren't worth the risk.

For a more detailed look at tithing in the midst of paying off debt, see our post: Is It Ok To Stop Tithing To Pay Off Debt?

Investing in My Photography

As much personal enjoyment as I get out of my craft, photography can be a big money earner too. I can make more money shooting one wedding than I do in a week at my day job. In our rural area of the country, however, it's hard to keep photography work steadily coming in.

Still, in order to make money, we need to spend money, which is why 50% of all money earned through my photography goes into a fund to maintain equipment, buy new lenses and filters, and market my services.

Healthy Living

When we first got married Danielle thought we could survive on a $40 grocery budget.

When you're done laughing I'll continue.

Finished?

Ok.

The problem was she didn't know how much a 30-year-old man with a daily calorie intake of 2,000 would need to eat. And when that number goes to 2,750 during workout periods that can amount to a whole heckofalot of food. Since Danielle started getting into all this health and fitness stuff through Beachbody.com she found that she needed more food to fuel her body as well, not to mention the fact that healthy food simply costs more money.

So over the last two years we've upped the grocery budget twice. We've decided that even though we can eat more cheaply, the types of food we'd be eating aren't worth it. Our physical livelihood and general health are more important than a few extra dollars. So we're making the investment in healthier living, and so far it's been worth it.

Pocket Money

I need my pocket money.

No. You don't understand. I neeeeeeeeeeed my pocket money.

I would lose my mind if I didn't have some dollars, unencumbered by some budgetary requirement, to spend at my leisure. So both Danielle and I get a little money every week to spend however we want. It's not much, but it helps make the rest of the budget feel doable.

For all the other spenders out there, I can't stress enough how much easier budgeting is when there's a little money set aside just for you. It does wonders for your mental health, and it actually helps keep the whole budget on track because without that little bit of "fun cash" one might be tempted to dip into other areas of the budget.

No matter where you are in this process, it's helpful to remember that this is only for a season. Danielle and I know that even though we're dramatically scaling back in many areas, it's not going to last forever. Our spending habits and the sacrifices we make are going to look dramatically different when we're debt free!

So what things have you been stubbornly refusing to give up? Or is your budget too tight? If so, what things do you think you could introduce—like tithing or pocket money—that might give you a little bit of your sanity back?

Other posts in this series:
Part 1: My Personal Wake-Up Call
Part 2: How To See Some Hope
Part 3: Overcoming the Comparison Trap

Breaking Free Part 2: How To See Some Hope

It's been two years since Danielle and I started down this road toward debt-free living. It's been a challenge, a fun ride, a ministry, and a blessing, all rolled into one adventure. This week we'd like to look back on our journey, share some of the intricacies of how and why we do it, and hopefully encourage you to gain some ground in your financial battle.

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Danielle made a comment recently that I'm pretty sure would've proven true had our lives taken different paths two years ago. She said, "If it weren't for our financial plan we probably wouldn't be together."

And I think she's right. Just a few months after getting married we found ourselves locked in a purgatory of money disagreements (we don't like the word "fights") and bad financial habits. She's a saver. I'm a spender. And neither of us had really considered the impact our individual approaches to money would have on our relationship.

In the fall of 2012, just four months after we got married, we took Financial Peace University by financial guru Dave Ramsey. I know there's a lot of Dave Ramsey detractors out there, but a lot of it is simple misunderstanding. I've noticed two groups of Dave-haters. First, there's people of the world who think debt is normal, who think our country's national debt is no big deal, and therefore don't understand why Dave Ramsey is on a crusade against it. Many of them—the biggest haters—also know he's a Christian, and that, in and of itself, paints a big shiny target on his bald dome.

Then there's other Dave Ramsey hate that comes from people—mainly Christians—who simply misunderstand his message. Sure, he can be a little too dogmatic about some things, but if you listen to his story you'll understand why. Dave doesn't claim to have all the answers, but he's built a massive empire around his business that's loaded with people who work their butts off every day to find the answers.

Dave's money management program stems from his own personal experience of having wealth, going bankrupt, finding a renewed faith in God, and having wealth again—lots of wealth! He's currently worth millions. His home in Tennessee—which he paid for with cash—is worth $4.9 million. Some Christians have a problem with this. They think Dave is unbiblical for living in such a way. But I fail to recall any Scripture that says having money is evil, or that when God blesses you in one particular area because of your obedient faithfulness that you need to turn the blessing away.

Their feelings on the matter leave me vexed. Terribly vexed.

Anyway, Dave's plan for achieving financial peace has one major design flaw: it doesn't work if you don't do it!

Ok, ok. That was a little too emphatic. Sorry.

Danielle and I aren't the Dave Ramsey worshippers that many others are, but we do appreciate his method because it has worked amazingly well for us. We also understand that everyone is different and that different plans work for different people. We encourage people who are in serious financial straightjackets to consider Crown Financial Ministries or another biblical-based money management program.

The Time When We Saw Hope

Danielle and I faithfully worked through the small-group version of Financial Peace University in the fall of 2012. I didn't want to do it. I didn't think it would work. But both Danielle and I needed to change the way we felt about money, and, more importantly, we needed to find mutual ground upon which we could start building a budget to get us out of debt.

Dave Ramsey's Baby Step #1 wasn't that hard for us—get $1,000 emergency savings in the bank. During our time leading FPU we met some people who struggled with this, so, trust me, we know how hard it can be, but we were just married and we didn't have any children, so finding $1,000 to put in an account was no biggie.

But then came Baby Step #2—pay off all non-mortgage debt using the debt snowball. This took some time, but we doggedly tracked down every spare dollar we could and eventually paid off the credit card. Then we took the money from the credit card payment and added it to a vehicle payment and we paid off that vehicle a year early.

And then our eyes opened.

Then we took the combined payments of the credit card and the vehicle and added it to another vehicle, and that one was paid off six months early.

And our eyes opened a little wider.

The plan was working, and, most importantly, it was changing the way we felt about money. Seeing progress was making the change happen within us. We began to see the value of cutting back on how much we spent on eating out. So we cut back some more. As our debt went down and our savings went up we saw the value of canceling nonessential monthly bills, like our Netflix account. We even decided not to budget for vacations for a while.

As time went on our vision for our financial future came together. Gone was the fear and desperation that my wife had felt before. Gone was my frustration at her for being so tight-fisted with money. We had learned each other's "money language," and there was newfound respect and empathy.

Our friend, Jacey, over at The Balanced Wife, puts it well: "Taking the first step takes so much more energy than staying in motion."

The great thing about Financial Peace University is that it allows you to see hope in a short amount of time. Usually within 1-to-3 months you'll see that $1,000 emergency fund in the bank. After 3-to-6 months you'll see that debt snowball working wonders. You'll start to feel more in control of your money, instead of feeling like you're money is controlling you.

You might even start to see that maybe Dave Ramsey is really onto something after all.

Other posts in this series:
Part 1: My Personal Wake-Up Call
Part 3: Overcoming The Comparison Trap
Part 4: The Things We Didn't Give Up

Make Your Goals Specific And Measurable... Like Batman

Batman is the quintessential problem solver. Since his inception in 1939 he has always been, first and foremost, a detective. A costumed Sherlock Holmes. More than his martial arts skills, his money, or his gadgets Batman's intellect has always proven to be his most valued asset.

Though the movies have often failed to demonstrate this aspect of the Caped Crusader, there's a great scene in "The Dark Knight Rises" that shows Batman's intellect and how victory can be achieved when you first break down your problems and tackle them one step at a time.

First, you've got to understand, that in "The Dark Knight Rises" Batman had spent the majority of the movie getting beaten to a pulp. He had grown too cocky, over-confident, and had lost his edge. As a result, when he finally comes face-to-face with the physically superior villain Bane, Batman gets pulverized and tossed into a third world dungeon with a broken back.

As his body heals, Batman considers what he did wrong, and when he finally returns to Gotham City he approaches Bane like a surgeon, dissecting the threat before they come to blows. First he recruits some allies. Then he gathers his equipment. Then he spreads hope to the citizens of Gotham and fear to the followers of Bane by announcing his return in dramatic fashion. Finally, after months of planning, Batman springs his trap and defeats the bad guy.

With a little planning, determination, and some allies, nothing is impossible to overcome.

• Don't try to tackle your problems all at the same time. No matter how much craziness you've got going on in your life, it's wise to break the issues down and take them on one by one. This is what makes Dave Ramsey's Financial Peace University so effective—it breaks down the budgeting process into easily achievable goals, goals that you can't help but reach as long as you keep moving forward.


• As Batman so clearly demonstrates in "The Dark Knight Rises," your goals must be specific and measurable. When he returned to Gotham City to face Bane again, he had a detailed plan that included the use of specific allies and certain equipment. It's an example of the obvious—if your goals are too vague they are just dreams.


• Long-term thinkers are the ones who win. Batman knew that defeating Bane was essential to the survival of Gotham City. His plan took months to form, but it was for a far-reaching purpose. Today's culture doesn't think like this. We're all about immediacy and convenience, and rarely do we think beyond our needs for the day, week, or maybe even the month. But when we keep our eyes on the future instead of our immediate circumstances, the possibility of reaching our goals becomes more and more inevitable.

This is a simple formula that can be applied to any tricky life situation:

1. break your problem down into smaller goals
2. make your goals specific and measurable
3. plan around those goals with a far-reaching future in mind

You may find yourself beaten at times. You may find that there are some Banes out there who are going to catch you off guard, knock you down, and thwart all of your efforts, but you can't let your circumstances overwhelm you.

Are there any specific and measurable goals that you're currently chipping away at? Or have you been thwarted?

Keep pinchin' :-)

Short-Circuiting Self-Sabotage To Win At Financial Recovery

To me, the hands-down best episodes of the hit sitcom Seinfeld are the ones where Jerry and George get to make a TV sitcom for NBC, and fail in spectacular fashion—though ultimately the failure is not their fault.

True to form, it's the slow-witted George Costanza—who believes that God will never allow him to be successful—and his self-sabotaging antics that nearly ruin their chances at fame. First he tries negotiating with the network for more money, which results in him and Jerry actually getting less. Then he gets involved in a romantic relationship with one of the show's producers, whom he ends up despising, but he's too afraid of losing their sitcom to he breaks up with her. Then he begins irritating the cast members. Then he has that "white discoloration" on his lip that he's convinced is terminal cancer. All of his nervousness over the possibility of success make almost incapable of actually becoming successful. In fact, he is pretty much the quintessential example of a hopeless, self-sabotaging individual.

Self-sabotage happens a lot with financial recovery. After a few months of disciplined budgeting and careful spending, some people start to miss the excitement of shopping, swiping credit cards, eating out, or entertainment. So they find themselves wandering the aisles of the mall "just to look," but in actuality they're feeding the growing urges to spend. Or they might start borrowing money from one area, like grocery money, to splurge in another.

Over time these little decisions short-circuit the entire budget, cause the person to get discouraged, and throw in the towel because they "just can't do it."

If you can’t break your addiction to financial excitement, you’re never going to achieve the kind of financial life that gives you peace.

True, spending money is exciting, and, yes, it's true that getting out of debt can be a total bore, but nothing good ever came from lazy behavior. Words like "discipline," "steadfastness," and "structure," are words that successful people are very familiar with. You want to loose weight? Discipline! You want to change your lifestyle? Steadfastness! You want to be rich some day? Get structured!

Here's another word: routine.

When it comes to getting in better physical shape, for example, I've noticed that the people who actually succeed at doing this have established routines. They don't work out every single day because they feel like—although sometimes they may feel like—they just do it.

How should paying off debt and building wealth be any different? How do you create more routine with money, and, most importantly, how do you stay on track when you're feeling bored or resistant.

Here are some ideas:

• Like Dave Ramsey always says, make a list. Even if the first item on your list says, "Make list," at least it will help you feel like you've accomplished something. Try listing your smallest debts first—credit card, car, house. Make a list of weekly budget-related tasks—Get groceries: $100, Get cleaning supplies: $20. Until you give yourself structure, you won't have any at all.


• Hold regular budget meetings. For the first year after FPU Dani and I met faithfully every week to go over our budget. Once we felt more confident in the process, we started meeting every couple of weeks. The point is, we meet and go over the budget together on a regular basis because there is no "one size fits all" budget. It has to be revisited every month, or seasonally at least.


• Dani and I have learned that we make better progress when we have hard and fast goals. We got more work done on the upstairs renovation in three days than we had in a month because we found out the realtor was coming to show our house on the weekend. And, in the past, whenever we have been adamantly focused on paying off a debt we have succeeded more quickly than we anticipated. Having goals works!


• Having fun is key to staying sane throughout this whole process. So what can you do to have fun that doesn't involve spending money? Dani loves to go to the beach. I like to chill in my hammock and read a book or write on my laptop. During the holidays we like to go look at Christmas lights. Museums. Parks. Parades. There's lots of fun, affordable entertainment to find if you look for it.

It can be hard to shift your mindset from over-spending to something as mundane as list-making and budgeting, but you have to believe that this is what will have the biggest impact on your level of financial peace. The more routine you establish, the better your chances of nipping those self-sabotaging behaviors in the bud.

Keep pinchin' :-)

10 Financial Principles Straight From The Bible

It amazes me that Dani and I, who both grew up in Christian homes, who were both saved at young ages, didn't start learning all of this financial stuff until we were married. In the 16 months since taking Dave Ramsey's Financial Peace University we have discovered a whole world of biblically-based financial advisors, blogs, websites, books, and more that talk about managing your money from a God perspective.

Neither of us learned this growing up. I never once heard it preached from a pulpit. I never remember hearing it on Christian radio. Maybe the whole trend of managing money God's way is just now starting to catch on, but I also think it's sad that more pastors don't preach this stuff. The more I learn, the more I think, "It's so obvious! Why didn't I get this sooner, and why aren't more people doing it?"

Here are 10 financial principles straight out of the Bible that I'm, A) stunned I never heard about before, and, B) want to pass on to someone else so they don't waste their life digging themselves into debt. Because, let's face it folks, America isn't getting any better. The government is not going to protect your assets, your 401k, or even your hard-earned retirement. Don't count on it. Put your trust in the only thing that has proven trustworthy: God. The following financial principles are tried and true. They're real, and if put into practice will change your financial future.

1. God is the source of everything. Learn this. Learn it now and it will make the rest of your life a lot easier. All throughout Scripture we're taught that everything we have comes from God and we give it out of His hands. God owns it all, from the earth (Psalm 24:1) to all the silver and gold (Haggai 2:8) to me and you (1 Corinthians 6:19–20).


2. Giving isn't a good thing to do, it is an ESSENTIAL thing to do. Like I blogged about yesterday, Deuteronomy 14:23 tells us that tithing wasn't created for God's benefit, but ours, to teach us that God comes first. The Bible encourages us to give a tithe to the Lord (Proverbs 3:9, 10) from the "first fruits" of our earnings—yes, that's before taxes. The book of Hebrews suggests a tithe should be 10%.


3. You've got to allow some room in your life for the unexpected to happen. By all means, make your plans and live out your plans, but do so with an understanding that God may ask you to do something different. The Apostle Paul was running around murdering Christians when God radically changed the direction of his life. The same goes for the disciples, as well as Jonah, Job, and countless other Biblical figures.


4. Set something aside for a rainy day. The Bible says that only a fool spends everything he has, but in the house of the wise are stores of choice food and oil (Proverbs 21:20). We should all be setting aside a little bit of what we have because no one is exempt from hard times. A house fire. A lost job. Sickness. The Bible essentially says that not planning for hard times is idiotic.


5. Avoid unnecessary debt. As I've written about before, the Bible doesn't necessarily condemn or condone debt, but it does strongly caution against it. In fact Proverbs 22:7 essentially calls anyone who is in debt a "slave to the lender." Debt isn't usually worth it. Stay clear of it.


6. Be content with what you have. Despite what cultural philosophy might tell you, happiness is not found in the "American dream" or by having more money, better cars, or bigger homes. Scripture teaches that covetousness and lust are wayward desires of the flesh that just pull us away from Christ. Just read The Ten Commandments.


7. Keep records. People who run their businesses without keeping records are morons. Their businesses fail. No intelligent person would run a business like that, yet it's how we run our lives every day. Proverbs 21:23 says to be diligent in knowing the state of your wealth, and 1 Timothy 5:8 says—and this is the heavy one—"If anyone does not provide for his own, especially for those of his household, he has denied the faith and is worse than an unbeliever." So know what you've got and what you're doing with it.


8. Don't go into debt with someone else. Cosigning on a loan? I'd hesitate on that one. Proverbs 27:13 suggests that poorest credit risk you could take is to agree to pay someone else's debt. Think about it, the only reason a lender requires a co-signer is if they don't trust the borrower to pay the money back. If you agree to cosign, this means that the lender is smarter than you!


9. Don't be afraid of hard work. The Bible doesn't pull any punches on this one. God values labor, and richly rewards those who aren't afraid to work hard (Proverbs 14:23, Proverbs 28:19). This whole concept of work is all throughout Scripture. God worked to create the world (Genesis 1:1), and when Jesus called the disciples away from their fishing, it wasn't so they could just follow Him around and listen to Him preach, it was to make them "fishers of men." A different kind of work.


10. Seek Godly counsel. The Bible says that people who seek the counsel of the Godly are blessed (Psalm 1:1, Proverbs 15:22). If you need financial advice, don't talk to friends and family members who are just as in debt as you are. Talk to your pastor, your elders, and, above all, seek God's guidance through prayer and His Word. And be prepared to hear hard things because they're most likely going to tell you that some of your financial decisions are downright stupid. But if they won't tell you, who will? And if they don't tell you, where does the roller coaster of spending and debt end?

Keep pinchin' :-)

This blog was inspired by an article by Christian financial advisor George Fooshee. Click here to read his 10 biblical financial tips.

The Ultimate Homemaking Bundle - Feather Your Nest This Spring

So, the hubby and I are fairly new to this whole blogging adventure. Originally we set out just to tell our story, keep a journal of our progress, and share what works and doesn't work as we journey to debt-free living.

While we enjoy this whole blogging thing it does take time, and so we ventured into the process of trying to earn a little money from our blog, hence the ads you may see, and the occasional "plug a product" post, in which we'll include a link to a product that we may earn some money on if it gets enough clicks. Honestly we haven't really made any money off of it so far, but since an income is secondary to our original goal we keep pressing on.

Just this week I was given the opportunity to plug an awesome bundle of e-books, which will be on sale until Monday. While this opportunity does offer me a pretty decent commission, I don't share it just because of that. After looking into all you can get from this deal I wanted everyone I know to hear about this amazing opportunity.

Here is a little video which will give you some info about why you need the Ultimate Bundle.

I purchased mine the other night and am so excited about all it has to offer. There are 78 e-books in this package covering topics like faith, kids, financial stewardship, food, heath and wellness, holidays and special events, homemaking, homeschooling, marriage, motherhood, pregnancy and babies, self-care, working from home, and blogging.

Not only are these fantastic books, but the authors seem like great people. By purchasing this bundle you are actually supporting missionaries, stay-at-home moms, and many working moms too! Here is a picture of some of the books included:

Epic, right?

And there's also about $200 in bonuses!

These books sold individually would come to a grand total of $698.

So, why am I sharing this with you? Because if you want to get your hands on all of these great resources and not pay $698, then all you need to do is purchase it between now and Monday night at midnight and you can get all of this and more for only $29.97 for the PDF files and $39.97 for Kindle versions. If this is something you think you would like to give to a friend they also have a special offer of buy two get the third free!

All you have to do is click on the picture below! 

I hope you enjoy this bundle as much as I am. Now I'm off to figure out how to make some "ice cream with nourishing ingredients" and then maybe read the Frugal Secrets of Real Foodies. If you have any questions about the bundle feel free to leave a comment and I will get back to you as soon as I can.

Keep pinchin' :-)

Get Educated About Money and Change Your Life

One of the reasons Dani and I are such proponents for Dave Ramsey's Financial Peace University is the Depression-era lows of evangelical giving.

Let's face it, our government has really messed things up, and they're not getting any better. Very few people in political office today know how to properly manage money. The only language they speak is debt. Unfortunately this has many Americans feeling very tight-fisted with their money. The recession, rising fuel and food costs, and a political system that appears to be falling apart one seam at a time, has many Christians hesitant to give to their churches.

News reports over the last few years about the percentage of Christians tithing have been scary.

"Giving has declined for four consecutive years," according Empty Tomb, a Christian research group.
"The only other period of prolonged decline in giving per member was from 1928 through 1934, almost entirely during the Great Depression."(Click here to read the report.)

The percentage of evangelicals tithing to their local churches is 2.3%.

Whoa.

I believe there are two reasons for this.

1. Fear. As mentioned above, many Americans are losing faith in Uncle Sam's ability to take care of them, so they're clinging to their money more than ever before. I don't blame them.


2. Many Christians—not all, but many—just don't know how to handle money. Our American culture breeds a mind-set that is all about buying more, having more, getting the next best newest shiniest thing on the market, and doing so with credit cards, not hard-earned cash. Americans have become financially stupid. We just don't know how to handle money.

Fortunately it's not all bleak and grim. A 2013 report by the Evangelical Council for Financial Accountability (ECFA) reveals that charitable giving to more than 1,600 of its accredited organizations has actually increased in the last year—by 6.4 percent, in fact. It's not much, but, hey, it's something.

All of this should bring into sharp focus the need for us to become better stewards of our money. If we get better, and raise children who are better, the next generation of parents, teachers, and political officials will be better. But it has to start now. It has to start with us. You can't wait for a stimulus handout from Uncle Sam. You can't expect to win the lottery. Changing your finances is about changing your behavior, and that starts with getting the right education, be it through Dave Ramsey's course or Crown Financial or any of the other programs that are out there.

The choice starts with you.

Keep pinchin' :-)

Jake's Take - Money Morals from the Movies: Babe

Deriving financial insights from today's blockbusters and yesteryear's classics.

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If you’re going to slay debt with “gazelle intensity” and build wealth like no one else, you’ve got to not be afraid to be different. In fact, you sort of have to embrace it, because, honestly, there's going to be some people who think you're pretty weird.

That’s the wonderful lesson we get from the touching 1995 comedy Babe. Based on a 1983 book by Dick King-Smith, Babe tells the story of an orphan pig who is chosen for a “guess the weight” contest at a county fair. The winning farmer, Arthur Hoggett, brings him to his farm where the poor little pig is told by just about all the other animals that he is worthless, that pigs have no purpose in life other than to be eaten by humans.

Determined to prove that pigs are not worthless, Babe sets out to learn from Farmer Hoggett’s border collies the practice of wrangling sheep. The sheep dogs laugh at his silly idea. The other animals laugh as well. When Babe goes to the sheep dog trials, an entire stadium of people laugh at him, too.

But you know what’s cool about that movie? Never once does Babe the pig question himself. He’s naive, for sure, but he knows he’s different. He knows that what he’s doing isn’t typical or expected of him, but he does it anyway. And in the end, he wins.

We can all learn a lesson from Babe, or “Pig,” as Farmer Hoggett calls him—if you’re going to be different, be it proud. Sure people may think you’re strange, but hold your head up high in the midst of the naysayers, because, guess what, you know something they don’t: today you’re living like no one else so that tomorrow you can live like no one else.

Keep pinching’ :-)

It's OK to Reward Your Hard Work

Back in the fall, Dani and I decided to axe our restaurant budget. We enjoy the pleasure of eating out just as much as the next person, but in our effort to pay down our debt we decided that we could live without going to restaurants for a little while. In doing so, we've saved about $60 a month, or more. That's about $720 a year, which is about one whole mortgage payment for us.

We did our taxes this month—a task I gladly let my more math efficient wife handle—and, though most of our return is going toward the mortgage, we decided to take some of it and treat ourselves to a new restaurant in town. When we got the bill we remembered why we don't go out to restaurants very often, but the momentary splurge was worth it. The restaurant was great. The food was delicious. And we had a good time.

It was a good reminder to us both not to be too stringent when it comes to this whole penny pinching lifestyle. There are times when you've got to open the wallet and just enjoy yourself. There's nothing undisciplined about that. In fact, it's good practice.

In week two of Financial Peace University, Dave Ramsey's daughter, Rachel Cruze, gives a great example of how NOT to be too strict when it comes to your financial rules. Rachel describes a woman who came up to her after a seminar and told her how well her son had been doing saving money. Apparently this 10-year-old boy had saved up $300 of his own money to buy a game system. Unfortunately when they went to the store to purchase the game system, the boy had forgotten about tax. The total came to more than he could afford. So what did the parents do? They walked out of the store.

Rachel says the parents took some of what they had learned in Financial Peace University far too literally.

"I thought, 'Your 10 year old saved up $300?! You pay the tax!'" Rachel says on the week two DVD. "So, remember parents, your little kids don't have to be soldiers marching around. ... Too many rules is just legalistic, but too much grace is enabling."

Just like there's no excuse to go overboard with your spending, there's no reason to go overboard when it comes to saving. Don't get me wrong, if you're neck-deep in debt you've got to fight for your life to get out of it, but do take time to smell the roses... or try out a good restaurant.

Keep pinchin' :-)

My First Attempt at Freezer Meals

A couple of weeks ago I mentioned wanting to try out freezer meals. I decided to try out the 12 Freezer Crock Pot Recipes at lovingmynest.com, which I liked because they didn't have "Cream of" anything in them, and they looked like healthier meals. I decided to make just one batch because I wanted to make sure we were going to like these meals before I made multiples. Plus, with just Jake and I in the house, I'm guessing we will probably get around 24 to 30 meals out of them, which is a lot more than a normal family. Below is a picture of some of my ingredients.

It took me about three hours to get all of the ingredients out, chop/cut everything up, label the bags and then put them together, plus clean up.

I figured I spent about $70 to get all the ingredients on this list, which was available on lovingmynest's blog with the recipes. I did omit a few ingredients that Jake and I don't care for—such as onions and peppers—however I did use some onion powder for flavor. In the Pork and Veggies meal I omitted the mushrooms, then to beef it up I added some celery, corn and green beans.

Below is a picture of some of the freezer meals all bagged and ready to be frozen.

Overall the process of creating these freezer meals was fairly easy, and because I was using someone else's plan I already had my shopping list and recipes figured out, which I'm sure saved a ton of time. 

What I really love about these freezer meals is that because I made them from scratch I know what's in them, I know they're healthy, and they taste pretty good too! The hubby and I had the beef stew last night and both of us were raving about it. I'm now looking forward to trying them all!

Have you tried doing freezer meals? If so, do you have a favorite recipe you would share with us in the comments below?

Keep pinchin' :-)

It's A Man's Responsibility

There's a Bible verse that gives men a charge to provide financially for their families. Oddly enough, even though I grew up in a Christian lifestyle, I never once heard that verse that I can recall. In fact, it wasn't until I was in my thirties that I came across this verse, and when I did it hit me like a ton of bricks.

"But if any provide not for his own, especially for those of his own household, he hath denied the faith and is worse than an unbeliever." —I Timothy 5:8

How could I have missed this? Are parents just not teaching this? Are pastors not preaching about it? Or is my generation so wrapped-up in its petty self-absorption that verses like this just go in one ear and out the other? I mean, "worse than an unbeliever"? That's what God calls men who don't provide for their families, and that's a pretty grievous statement.

I've come to believe that it is incumbent upon me as the man to lead in the area of our finances. I can't just step back and leave it up to my wife, but nor do I want to lock her out of the process either. I, and all men, need to step up, take the reins, and lead the way.

The Bible says that men are to model Jesus Christ to their wives, that they are to "love her as Christ loved the church" (Ephesians 5:25). Christ has promised to provide everything that we (the church) need, and so, as men modeling the behavior of Christ, it is our duty to do our best to meet the needs of our wives.

Marriage is a financial venture and the husband has a responsibility to finance/support/provide for his family. As a husband, I need to realize that when it comes to money my earnings are not my own. They belong to my wife and my (someday) children.

Keep pinchin' :-)

How My Tasmanian Devil Coffee Mug Tested My Discipline

Before Dani and I took Financial Peace University, I was never very good at budgeting. However, one habit I got into that helped me a lot—a habit I would eventually learn is actually recommended by Dave Ramsey—is using cash.

I had three coffee cups set up on a book shelf in my room—one of them was a super-groovy Tasmanian Devil mug that was so impossible to drink out of that it simply became a "piggy bank" of sorts—and every week after I cashed my paycheck I would "deposit" the necessary cash into one of those three cups—one for bills, one for spending money, and one for anything I was saving money for, e.g. photography equipment, larger expenses. At the end of the month I'd take the cash to my bank, make the deposit, and send out the checks for my bills the next day.

Despite the obvious flaws in my system—I would never recommend leaving that much cash just sitting around in your room—it kept me from over-spending each month. Well, almost. I wasn't as disciplined as I am now and I would occasionally find myself dipping into one cup or the other to make ends meet.

The cash system is great, but with it must come a fair degree of discipline. If, like me, you need help in that area, it might be worth it to seek out a financial accountability partner, someone who knows your financial situation and can encourage you in your efforts to get out of debt and build wealth. Also, breaking down your "cups" into more specific categories can help you know exactly how much you have to spend on different things.

Today, I've traded in my three cups for a specific savings sheet, which breaks down all the areas in which we are saving—house repairs, water bill, business, kids etc. I've disciplined myself not to spend beyond what we've saved in those categories. It wasn't easy. It took time. Discipline is like a muscle, and the more you flex it the stronger it becomes.

Don't feel like you need to dive into this budgeting thing with both feet... however, don't just dip a toe in to test the waters either. Start with some coffee cups, but keep going. It WILL get easier.

Keep pinchin' :-)

What to Do When Collectors Go Too Far, by Dave Ramsey

Dave Ramsey posted a fantastic blog this week about how to handle debt collectors when they go too far. The first thing to know is that these people DO NOT have the right to abuse and harass you, so here's some tips on how to deal with them before you get too emotional and do or say something you'll regret. If you'd like to read the blog on Dave's page, click here and give it a "like."

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Everyone who has ever dealt with a bully knows that there is a point where they push you too far.
When that happens, it’s time to push back.

If a bill collector is harassing or intimidating you, here are some ways to fight back:

Hang up
If a collector is yelling, cursing or even threatening you, you don’t have to stay on the phone. In fact, it’s best if you don’t. If you keep listening when they berate you, you might get too emotional and do something unwise like give them free access to your checking account. You won’t get in further trouble by disconnecting the call.

Record the call
Collectors break the rules set by the Federal Fair Debt Collection Practices Act of 1977 all the time. If you are able to record the call (and tell them you are doing so), one of two things will happen. Either they will continue the abuse and you’ll have it on record, or they’ll hang up and you don’t have to listen to them.

Know their tricks
Collectors try to pick the busiest (meal time), the most inconvenient (heading out the door to work), and the most embarrassing times (holiday or family gatherings) to bother you—it increases the odds of them making you overly emotional. If you know the tricks of their trade, you won’t be caught off guard if they try to pull one over on you.

Know your rights
You as a consumer are protected from bullying tactics under the Fair Debt Collection Practices Act. That includes a collector not being allowed to call you at work and only being allowed to phone you during certain hours at home. If a rude collector is waking you up at five in the morning, he or she is violating federal law and you can use that to defend yourself. Collectors prey on you not knowing your rights in order to manipulate your emotions.

The best part about fighting back is the sense of empowerment that it gives you, both over the situation and your money. It breeds confidence and makes you feel like you can win financially.

If you are being bullied by a collector, you don’t have to take it lying down. Visit Collection Bully now.

Why It's Important to Have A Budget

Having a budget is more than just good practice. It's smart. It helps protect you and your family. It creates a plan for your money that would, otherwise, just evaporate over time.

Moreover, did you know that budgeting is recommended in Scripture? Odd as it may seem to some, the Bible is rife with good advice—advice that most people accept as common sense today.

• You've heard it said that misery loves company, that positive people are more uplifting to be around? Well Proverbs 17:22 says, "A cheerful heart is good medicine, but a crushed spirit dries up the bones."


• Most people are familiar with the story of Ebenezer Scrooge. His dour outlook is exactly what Proverbs 28:27 says will happen to those who close their eyes to the poor.


• Physical fitness is a big deal in our world today, but we know that over-emphasis on physical attributes tends to lead to shallow character. 1 Timothy 4:7-8 says physical fitness is all well and good, but it doesn't hold a candle to the eternal value of grooming good character.


• We all know the value of a good reputation, yes? Well the Bible established that fact in Proverbs 22:1 where it says a good name is worth way more than great riches.

There are literally hundreds of other examples of modern, practical advice that we could glean from Scripture. This advice has been passed down from the Bible for centuries because it works.

So when the Bible starts telling us about the value of budgeting, that it's important to know the state of our wealth (Proverbs 27:23), our ears should tune in.

"Don’t begin until you count the cost. For who would begin construction of a building without first getting estimates and then checking to see if he has enough money to pay the bills? Otherwise he might complete only the foundation before running out of funds. And then how everyone would laugh! 'See that fellow there?’ they would mock. ‘He started that building and ran out of money before it was finished!’" —Luke 14:28-30 (Living Bible)

In other words, don't go buy a car unless you know you can afford it! Do the math! Check the numbers! Being diligent about our finances is what God wants us to do.

And there's a dire warning in 1 Timothy 5:8 to those who don't take good care of their affairs:

"If anyone does not provide for his own, and especially for those of his household, he has denied the faith and is worse than an unbeliever."

Whoa. "Worse than an unbeliever." That's heavy. There should be no doubt in our minds that God thinks it's pretty important for us to not only know the state of our wealth, but form a plan for our finances. One reason for this might be because God knows that life has its ups and downs. Scripture advises us to "store up grain" so that "we may not perish during the famine," (Genesis 41:35-36).

Budgeting is something God suggests we do to help keep ourselves and our families safe. And, according to Proverbs 21:5, blessings abound for those who are diligent with what they have. So...

Keep pinchin' :-)

Are Credit Cards REALLY That Bad?

I'm just going to go ahead and let the cat out of the bag: Dani and I have a credit card.

"But Jake, doesn't that violate Dave Ramsey's Commandments about financial freedom?!"

Probably, but, then again—and here's the second cat out of the bag—I don't necessarily agree with absolutely everything Dave Ramsey says.

"Heresy!"

Ok, ok. Just put the torch and pitchfork down for a minute while I explain.

Dave Ramsey is absolutely right when he rants about how easily credit card usage can land people in debt. Let's say you take a vacation and you decide it's easier just to put everything on the credit card. You've got money to cover the expenses in your bank account, so it's no problem to pay everything off as soon as you get home, but what if tragedy strikes? What if you need a new car or have a medical emergency and suddenly you can't afford to meet the monthly credit card payments? One missed payment and you're in the hole 30% or more! Besides, if you've got the money in your bank account to pay for everything, why the heck are you using a credit card in the first place?!

The practice of using credit cards is just plain dangerous, and that danger is multiplied exponentially if you don't have money in your bank account to cover the expenses, which is just plain stupid, as Dave would say.

"Responsible use of a credit card does not exist," Dave says in this article The Truth About Credit Card Debt. "There is no positive side to credit card use. You will spend more if you use credit cards. Even by paying the bills on time, you are not beating the system!"

Though I wholeheartedly agree with his sentiment, I think Dave can be a little too apocalyptic when talking about credit card usage.

Last Christmas, our Discover card ran a three month cash-back program where any time we used the credit card for gas or online shopping we got some cash back. In three months we earned $80 in cash back bonuses. We always paid the credit card off within a couple days of making a purchase, we never spent a cent on interest, and that $80 went a long way to helping with our Christmas shopping that year. So is there really no responsible way to use a credit card? I think maybe there is, but it takes a great deal of discipline to do so.

According to the American Bankers' Association, the average family today carries $8,000 in credit card debt. That is just shocking, and it is not where God wants us to be financially. A study of credit card use at McDonald's found that people spent 47% more when using credit cards instead of cash—forty-seven percent more! Why? Because the great majority of people don't comprehend that when they flip a tiny little plastic card onto the check-out counter they are, ultimately, spending their own hard-earned money, and probably more of it. It just doesn't compute with them. This is why Dave advocates for the "cash only system." Because when you're spending your cash, out of your wallet, it's easier for your brain to comprehend that "Hey, this is my money, and it's leaving me. Oh my!"

Dani and I have used our Discover card maybe three times in the last twelve months, but each time it is to take advantage of a special offer. It's never in huge amounts, and we always pay it off within a couple days.

Personal finance is 80% behavior. If you find that your credit card is getting you in trouble, get rid of it! Use common sense. Don't spend money you don't have.

Keep pinchin' :-)

Falling Off The Bandwagon

Over the last couple of weeks I've realized how easy it is to start over-spending and fall off the budget bandwagon.

It started out with just spending a few extra dollars on groceries. I would think to myself, "This is ok, as long as I spend less next week. I'll still come in on budget at the end of the month. No problem!" But when you do this a second time, and then a third time, that's not good! So after over-spending three weeks in a row, I checked our monthly allocated spending plan and realized that if I was careful it would be possible to still come in on budget. But, still, I had boxed myself into a corner.

I know why this happened, too.

When Jake and I first created our budget I was taking advantage of Dave Ramsey's "cash only" system for certain things, like groceries. And I can see now why Dave recommends doing this: when you go into a grocery store with a debit card it's easy to overspend, but when you go in there with a set amount of cash there is no wiggle room whatsoever. It's one very affective way of controlling spending.

After several months of doing this—and doing it well—I decided to try doing it with the debit card. At first I did ok. Occasionally I would spend an extra dollar or two, but that was easily remedied the following week.

Then Christmas came. The month of December is always full of extra expenses—heating oil, tire changes, increased electricity, presents, extra groceries to make sweet treats... you get the idea. I've found that the more times you swipe that little plastic card the easier it is to do it again and again... and again. I even overdrew my checking account for the first time in over two years! Thankfully I have overdraft protection, so the fee was minimal.

At the end of this week we start a new monthly budget, and I plan to go back to using cash. Using cash keeps me more accountable and aware of what I have to spend. Thankfully, even though I feel like I've way overspent this month, we should be ok, but it was a close call. I am going to have to spend a lot less on groceries this coming week, or just eat up those Raman noodles sitting the cupboard, whether my husband likes it or not.

If you find yourself blowing out your budget, don't get discouraged. Try using cash, for a little while at least, until you get back on track.

Keep pinchin' :-)

The Importance of Doing It Together: Part 2

Dani is a saver. I'm a spender. And we're both at the extreme end of those polar opposites. I can't hold onto money to save my life; it flows through my fingers like water over rocks, whereas money stops with Dani like a skydiver with no parachute.

So when we started budgeting we found that our dramatically opposing financial skill sets did not like each other. It was tempting for me to just let her do the budgeting—she's better at math. She enjoys the organization—but Dave Ramsey stresses repeatedly that there is value in managing your money as one.

No matter how you choose to do your budgeting process, if you and your partner don't talk about the spending plan, there's no telling how many miscommunication issues you'll experience.

Such as:

• Your husband is happy because the money for "home expenses" has accumulated enough to replace the broken window, but you thought you were going to use that money to finish the kitchen countertop.


• Your wife takes the kids to the water park thinking there's plenty of money in the entertainment budget to cover the trip, not knowing that you wanted to go out with the guys on Friday.


• If your husband moves money from the grocery budget to cover an unexpectedly high bill and you don't know about it, when you swipe your debit card at the market you'll see that embarrassing DECLINED light up.


• Your wife isn't keeping track of how much money you've budgeted for restaurants, and after eating out three times already this month she makes dinner plans with her mom at Olive Garden. Uh-oh! DECLINED.

It cannot be stressed enough: for a budget to be successful you and your spouse must have a shared vision for your finances. And, trust me, this may take time. It took about eight months before Dani and I really felt like we were on the same page with our financial priorities. And once we were, our budget became even more focused, we became more determined, and our debt started going down faster while we started saving more money.

I said it once, but I'll say it again: if you want to create a successful financial plan that will work for you, you and your spouse have got to work together.

Keep pinchin' :-)

The Importance of Doing It Together: Part 1

There's a "security gland," explains Dave Ramsey, that all women have. It's located behind their ears and when they don't feel financially secure that gland starts to spasm.

Obviously he's exaggerating, but his point is this: it's important to most women to feel financially secure, to feel like they are taken cared for, and, believe it or not, it doesn't always have to do with how much money they have. Guys, you can work 50, 60, 70 hours a week and still have a wife who doesn't feel financially secure.

For my wife, a large part of feeling that security was knowing that we were on the same page. She needed reassurance from me that I supported our financial goals, that I would follow our plan, and that she could trust me to properly manage our income. She needed to know that I was with her.

But budgeting shouldn't just be about making your wife feel better. And, trust me, it's not.

For me, I realized that I needed my wife's input. It was helpful for me to go over our budget with her because she caught my mistakes, helped me understand certain processes, and generally alleviated the stress I feel when working with numbers. (I still refuse to have anything to do with taxes. We either take them to H&R Block or she does them. I find the process too frustrating to bother with.)

I have a friend whose wife is like me in this area. She finds the budgeting process too stressful, and so he makes up the budget every month. He is faithful, however, to keep his wife routinely apprised of their financial circumstances.

Going over your budget with your spouse is such an essential part of a successful money management plan. There's basically two ways you can do it:

1. You and your spouse go over the budget once a week, or once a month. Together, the two of you keep track of your expenses, making sure neither one of you is going over budget in any of your areas of allocated spending. If neither one of you excels with math or particularly enjoys budgeting, this is the best option.


2. If you or your spouse is more suited to handling math and numbers, and is agreeable to handling the budget on his/her own, it's fine if the lion's share of the work load falls upon them. But the two of you must confer with each other on a regular basis as to where your budget stands. Moreover, you need to have conversations about where you want your money to go. It's ok if only one of you gets to be the numbers crunched, but you both have to be involved in budgeting.

If you're going to make your money work for you, you and your spouse need to work together. If you don't, there is a nearly endless list of possible miscommunications than can arise.

To be continued...

We Men Don't Want Budgets... but Whatever

It was easy for me to make the comparison between discussing budgeting with my wife and the idea of letting my face sear in the bottom of a cast iron fry pan... on a burner set on high... in the middle of a desert... surrounded by scorpions. So when Dave Ramsey first brought up budgeting during his nine week money-management course, Financial Peace University, it was no wonder that I felt like cutting class.

Budgeting never sat well with me, and I don't think it sits well with a lot of men my age. We're from that lesser-known generation of people born just between the grungy, pop-idol-wannabes of Generation X, to the post-modern hippies of Generation Y. A generation of people whose monicker is, "*shrug* I dunno." Budgeting is too strict for us. Too rigid. And we're too undisciplined to have anything to do with it. Our generation is too laid back and indifferent, and we've got too much to do to be bothered with making a budget. More's the pity.

But there are benefits to budgeting that I have slowly discovered.

Bear with me guys. You need to read this. For the sake of your wives, your families, and your own personal retirement future, you need to read this. So if you fear the word "budget" like I did, I'm going to help you out. For the duration of this article I'll be replacing the word "budget" with the word "bungie-jumping."

Honestly, the first three or four months of bungie-jumping was a nightmare. Every bungie-jumping meeting I had with my wife was a letdown. I didn't understand the bungie-jumping. She hated that I hated the bungie-jumping. But an odd thing began to happen. The more bungie-jumping we did the more I began to see it working because we had finally taken dominion over our money. It's a simple fact: if you don't tell your money where to go it will go away from you.

I can't stress this enough: you need to bungie-jump. I promise that if you commit yourself to bungie-jumping for at least six months you'll begin to see the benefits. Do it for a year and you'll wonder how you ever lived without bungie-jumping. You're debt will start to go down. You're savings will start going up. And bungie-jumping will become second nature. You have to tell your money where to go!

Seriously guys, in this day and age I think men need to start stepping up and doing more to take care of their wives and their families financially. Men have backslidden too far. We've become too careless, and not just with our money. You want to show your wife you love her? You want to show your kids that you're going to take care of them? Die to yourself. Put their needs ahead of your own. Start setting aside money for school supplies, birthday presents, romantic getaways, and start spending less money on your sports, your "guys' nights," and your hobbies. I'm not saying you'll never again get to enjoy the things you like to do, because as your bungie-jumping begins to take root you'll eventually be able to set aside money for those very things that you enjoy—be it golf or photography or hunting or sports. But your family has to come first.

What have you given up, or what are you going to give up, that will help your family's future?

Keep pinchin' :-)