Going Radical! First Month!

2014 is the year of the Radical! We are big Dave Ramsey fans, he is a financial adviser that specializes in helping motivate people to get out of debt. He has a 7 step path to financial freedom. The first step is establish an emergency fund of $1,000 dollars. Step two is snowball your debt. Start with the lowest debt no matter the interest rate pay if off then take the amount you were paying to that debt and apply it to the next debt "snowball" that amount until that sucker picks up steam and rolls all the way down hill to knock out you last debt. Going radical means that you are willing to sacrifice wants and sometimes needs (amazing how needs have a way of diminishing) to fulfill your greatest desire to get out of debt!

We have no credit card debt, no car loans, no Christmas or vacation debt. We do have land debt ( when we sold our land in Benson we had to sell it at a loss, we took out a loan from our 401K to pay the difference, ouch!) We have a student loan (Benjamin had been working full time in college but that last year he needed to not be distracted with juggling both full time jobs so we took a loan to pay for our living expenses while he finished up). Lastly the true beast our home equity loan ( this is what we used to pay the permit fees for said land, put in a well, dig trenches for said well, trenches for electrical lines, inspection fees, clearing of land for home site, architect fees, county fees, paying off a car etc) this little loan is the monkey nay the gorilla on our back.

Before 2014 I had been preparing the kids for a change in life style. Not that we have been extravagant in the past, but we did occasionally eat out, we always had big birthday parties and went on family trips a couple of times a year. This would all change.

Going radical means cash flowing everything. Every dollar has a name. I have three envelopes 1) grocery money 2) gas money 3) money left over after paying bills that is not going to be applied to the debt. Once these envelopes are empty, spending ceases till next paycheck.  In the past I have done this but I have often cheated dipping into my checking account with my debit card. This will not happen in the year of the radical!

Well we have finished our first month and I have learned some valuable lessons, not in a particular order:

1) A couple must be united in this approach, when one is weak the other must be strong! When all you want to do is order pizza but the cash allotted for that is gone, one must say not in the budget lets make pancakes instead.

2) Its a family affair but kids lack the perspective that adults have gained over the years. This can be very challenging when they want something but it is not in the budget. Guilt can be very hard, one must constantly visualize the feeling of being debt free. And pray for strength!

3) Pay your tithing! Dave Ramsey is an Evangelical Christian he also believes in paying 10 percent of ones income. Before he learned sound budgeting he had learned the hard way how to control his budget. He and his wife had to file for bankruptcy even during that time he paid his tithing. Because tithing isn't about the money. God is God he does not need money. Heavenly Father wants to develop in us a willing/grateful heart (among other things) and paying tithing does this. When you allow yourself to be a giver He can than "open up the windows of heaven and pour out a blessing on you."

4) Windows are WIDE open! In order to cash flow my daughters braces I needed a certain amount of preschool tuition to be paid in full (they get a discount by doing so) and it was! We were even able to pay off our land loan in January, five months early!

5) When you show self control, Heavenly Father shows you His control of the entire universe. He truly will bless your righteous desires. In the past  we would have celebrated this big event with a specific cake from Costco, a chocolate bundt cake (http://www.howelesismore.blogspot.com/2009/01/never-say-never.html).  I told the kids we paid off the land on Wednesday January 29 and they instantly said lets go buy a cake. But sticking to our envelops plan I knew the money still in the envelops was designated for something else. They were of course really let down but  I was determined, but sad see #2. Benjamin goes to church with Dieter for a special youth night for the young men. At the end of the evening he comes home and says you are never going to believe what I got at church tonight he then shows me the exact bundt cake from Costco! Dieter said this is a true radical cake, free! Benjamin said the stake young men's president said we had an extra cake and thought your family would like it. Are your kidding me!!! Benjamin said to add to this tender mercy was the fact that the youth activity's theme was Heavenly Father knows each of us individually! Heavenly father knew we had a righteous goal of getting out of debt, he knew what we normally would have celebrated with and he new who had an extra one.  See lesson #4!

Boom baby onto month number 2!