He began by telling us that some new policyholders who are also friends came in his office and paid for all their new insurance with cash. He was amazed that they did not have a credit card. He began quizzing them on how they manage their money with cash and they told him about Dave Ramsey.
Jon was interested in learning more about Dave Ramsey. As he was describing starting a family budget and watching the Dave Ramsey videos, our 6-year-old Lauren chimed in and asked “Is he going to tell us our money is tight?” Even our 6-year-old knew that we needed to do something different.
Jon and I watched his videos and read his books. We checked them out of the library and were fascinated by how well he was describing us! He labels each spouse as either a “financial nerd” or a “financial free spirit.” Jon is definitely the “nerd” and I am the “free spirit.” As the family financial nerd, he is a saver, and plans for the “what-ifs” in life. I want to live in the now and plan for the “let’s go” in life. Uniting these two types is challenging, but Dave tells us how to do it.
The motto of his financial series is to “live like no one else so one day you can live like no one else.” We have realized that we need to focus on the future like traveling, college educations for our children, two weddings, health care, etc. Sacrifices now will help us do all we want to do. We have to be in control of our money; not let our money control us. We have to set a budget and make sure we only spend what we have.
Planning and organizing a real budget have become a top priority. We are excited about where this organization of our finances will take us. We know we will have to scale down on some of the areas like going out to eat and clothes shopping.
Dave says “if it’s not in the budget and you have already spent it for the month, then don’t get it.”
As we transition to a “credit card free” financial system, I am enjoying the hunt for the best bargains. Paying with cash also makes you think a little more about your purchases. We have begun to prioritize where our money needs to go and Dave makes sure to tell his audience that charitable giving is the first check that needs to be written every month.
According to Dave Ramsey, it will take us 3 months to organize a budget and learn to prioritize our expenses so that we can have a plan to show how and where our money goes. This will be lifestyle change and a complete commitment on our part, but in order to feel secure about our future, we are willing to make these sacrifices.
Our children are trying to buy into the concept, too. But unfortunately, after they have heard us repeatedly tell them “it’s not in the budget,” they both have made it perfectly clear that they don’t like a budget. However, teaching our kids to be financially responsible is one of the best gifts we can give them even when money is tight.
Tricia Massey is a member of the Commerce Downtown Development Authority, serves on the board of the Boys & Girls Club, chairs the Commerce Public Library’s capital campaign and is marketing director for Renaissance Senior Communities. She lives in Commerce.
