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Posts Tagged ‘Finance’

Dave Ramsey Plan

I been slackin on My FPU (Financial Peace University) post. So here is a nice little update as much as I can fill in before I hit the sack (tired).

Last week was my final FPU class. It was a lotta fun, we had a big pow wow bbq. Our instructor was able to update us on how well we had done in the 14 week period. When we started, the class had a combined total of $530,000 in debt. In 14 weeks the class had paid off $87,000 in total (ie credit cards, cars, other stuff) We also managed to save $25,000 in emergency funds!! Go class!! Mind you we all started with about 0 dollars in the bank (including me) I was able even after all the set backs to save about $1,500 which feels good to have money in the bank even though its not much. I am so proud of my class, my instructor said he didn’t even expect for everyone to do so good but yea we showed him. Anyways another class will be offered this summer and I will be helping out with some of the sessions which I am going to love love love!!

The class really has put me on a path to success, today I told someone I was going to retire at 35 there response was “good luck” Honestly I won’t retire I just won’t be working where I currently work, I plan to be fully committed to the realestate industry which I can make my own hours and it will be what I love doing.

Since I have been successful I have been telling more people (Without beating them over the head with it) how well the program has worked for me. I brought a book for my tenant and I am passing around the TMMO book my mom gave me for christmas. I swear you have to fight with people to get stuff back sometimes, thats why if somebody ask me for a book I would hope to in the future be able to give it as a gift and if they read it or not thats on them. Most people have had good responses and some not so sure, but I guess I can’t win every battle I just have to show n tell.

Over all I just want to let people know this program is not just about getting out of debt its about planning your future. Up until now all I saw for myself was me working a 9-5 trying to keep current on bills and pray I live to retire. Now I don’t even worry about what my next 5-10 years will be like because I am excited. I see myself being a finance teacher and realtor. My house will be paid off and I should be making somewhere around $50,000 and doing some extensive traveling with my boo (non existent right nah). Now thats not a lot but if I have not one bill (not even a house payment) then 50k starts looking good. I may even save up for my dream wedding lol. Point is I think I will be much happier without bills looming over my head.

Dave’s plan works even if you have no debt, You might have no debt but have no savings of any kind. Or maybe you need to plan start planning for retirement or to make your first home purchase. Maybe you have money to invest and don’t know how to. What ever it is there is something in the program everyone can benift from even something as small as knowing about Insurance.

I am going to try to make sure I update people on how well or not so well I am doing. There will be and have been set backs but now I am fully prepared to deal with them as they come, at least financially which makes it a bit less stressful.

Mikki

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February 28th 2008 would have marked my 7th week in my Financial Peace university classes. So far I must say the program is going

amazingly great. Only yesterday I sat down and actually discovered I have a negative net worth of $100,000 (ouch!). Looks bad on paper I know, and people are thinking “how can finding out your broke be great?” Trust me knowing is half the battle. Since I know what debt I have, I was able to formulate a plan to paying things off, and if all goes well I could pay off everything (including my home) in about 5 years that’s if I continued to work my current job and never made anything extra.  

Money don’t grow on trees no sir

 For all my friends that I talk to on a regular basis, you have been made aware of the set backs as far as obtaining a second job (failed drug test), but things are looking up, I may have a job interview at Meijer coming up soon and I will update on that here in the next week or two. 

Milestones  

The past 2 months haven’t been a walk in the park. I have had to turn down parties, trips to the city (the only city I know and love), and dinner and my favorite spots (Ruby Tuesdays and Paneras), I also haven’t seen the insides of a mall for a minute too. But for the sacrifice I have made much has been gained. I now have $1,000 saved (for emergencies), paid off a couple old bills, and actually have stopped worrying about pay day!!! Yea baby.  It is a wonderful feeling I must say and I look forward to seeing the day when I have no bills what so ever. Its going to be a long road (2 years til debt free excluding my home) but the pay off will be having the rest of my life ahead of me to actually enjoy. 

 Randomness

 Unfortunately during these 2 months I have learned that as long as I am alive I will have relationships to go in and out of. I recently entered into a friendship I thought might be promising but so far its looking like it’s a false alarm. Now most days when I get frustrated in dealing with men I say just “Fuck it” but since having some one to hold, kiss, cuddle with and spend time with keeps me sane (somewhat) I just cant say “Fuck it” just yet. I will say the adult in me is learning that everything has its process and I have to learn my tolerance levels before I can forge ahead. I don’t know really what my future holds as far as dating but I do hope there will one day come a light at the end of this tunnel.  

Stay tune…. 

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Today I found out that Angie Stone was going be in concert at the Detroit Opera House on Feb 22nd. Knowing this would be one of the better concerts I have attended in a long time I immediately thought to myself “I’m gonna be there!!”  Then reality set in and realized one I didn’t plan for it and two well aint no number two, I just didn’t plan for it point blank. So I can’t go end of story. Even though I have the money $50 – $60 per ticket (which I was going to go alone), I didn’t figure in the cost of gas, parking and souvenirs which could easily make $50-$60 turn in to something like $100 + dollars.  

Even though it’s only $100, that would have busted my budget which by the way I have been working so hard to manage but I have been doing well. Telling myself “NO” is a major sign of maturity because the old me woulda said “F that budget” lol. Pleasure first consequences later, doesn’t work in the wealth building world. 

 I am still conflicted about doing things I enjoy vs. “saving and paying bills” I mean in hind sight I know what I’m doing now will pay off but this shit still hurts. Next time I will plan for stuff in advance. 

Mikki

Growing up really this time

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FINANCIAL PEACE (PART 2)

Ok now the painful part is out of the way. I had to explain my situation to yall folk cuz I mean people really don’t like to admit when they are having issues. I’m laying it out because you just never know if someone might be in the same predicament or worse.

Thankfully I still have a good job and now even a place to live where I don’t have to pay rent, and no its not the homeless shelter, moms, or new live in boyfriend. I will share this story another day. For now though this means I have a chance to make things right with my money so thats what Im going to do.

So now lets talk about a plan. I have been going to some classes called financial peace university. Dave Ramsey host of the Dave Ramsey show, has decided to help people take on financial problems by teaching via video tape. Now this ain’t the most conventional way to learn about money but it is actually working. Here is what I have learned so far.

Lesson 1

Create a budget. Being the simplest thing to do its actually the hardest. I haven’t lived on a budget in some ages but in order to get my money back right this is necessary. Dave Ramsey teaches you that we should account for every penny we bring in. If you have a budget your funds will always be allocated to something. So far I have learned how to live on 2 dollars lol. Yes folks when you have not you spend not. I have been learning the most important lesson and that is trying NOT to keep up with the Jones (MY FRIENDS) see for one I had to realize that Im 25 and most of my friends are a bit older than me so some of what they had took time to get, secondly my friends are in debt just like me so the grass isn’t always as green as you think. I am driving my moms beater with a heater and its the worst possible feeling. You would think I wouldn’t be so stuck on having a nice car but I forgot that back In the day I used to drive a car that was worse than the one she gave me. I am going to start telling people what you have doesn’t make who you are. This might save a lot of men and women from being in debt up to there eye balls. Anyways I plan to never finance another car and always pay cash for things I buy. Its all about our way of thinking.

Lesson 2

Create an emergency fund. Get$1,000 In the bank fast if you don’t have it already. This is for things that happen out of your control like a car break down or something of the sort. This is not funds for a club outfit or a date. Eventually you should have 3-6 months of expenses saved in the bank. But that comes later on in the plan.

Lesson 3

Pay off your debt. Easier said than done. But I looked at my homemade budget and realized that if I stuck to paying things off it would take me only a year an a half to get become virtually debt free and end up with some money in the bank. Now I’m not sure about you but a sacrifice for a year is much more worth it than to have a life time of headache. So This is going to be worked on in the coming phases and I will keep everyone posted on how I’m doing.

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FINANCIAL PEACE (PART 1)

I been debating all week what to write about in part one of financial peace. I have been going to financial classes for the past two weeks and I wanted to kinda talk about what I have learned so far but I think I need to have some type of order to my blog so people can fully understand start to finish. So part one will actually be about how I got in a financial mess and where I currently am.

I am not even sure If I can tell this story In short but I sure will try. If there is any consolation for where I am today financially, there was actually one point in my life where I had a good hold on my money. See I was around about 21 at the time and I had been living with my boyfriend of 3 years. He was actually very good with money (think it was a military thing) but he taught me everything I knew about how to budget and life was good. Anyways we broke up and my financial values fell to the wayside like bayside. I had to grow up pretty quickly and start doing for myself. Mind you I hadn’t ever lived by myself outside of being with my ex. So a sista had to grow quickly getting my very first apartment and a car to match I thought I had it all figured out. But life aint no fun when your sitting on the floor of your apartment because you have no furniture. So what did I do?? I called up the ole mighty credit card to buy me some stuff and well it all goes down hill from there…….

Later In life about 2 years down the line, Im working my good job living in my little cozy apartment. I was doing well but that son of a Honda I brought 2 years ago was cramping my style with no power windows or doors and worst of all no dang cruise control. Mind you I had already backslid from my good financial values and never really fixed the mess from before, but still my credit was good enough to get a new ride so I did. Lesson one never go into a car dealership by yourself. I walked in at about 2pm and walked out with a new 07 car at about 10pm. It was a Honda civic 07 complete with plenty bells and whistles to entertain me while driving. Now I know y’all like I know she didn’t!! yea o.k so a Honda wasn’t the most flashiest car but two things I knew was that it was cute and would always be reliable. So I have my car with my super high payments and crazy high insurance and life is o.k.

1 year later I’m feeling like I need another upgrade. I had been trying to make a home purchase for the past 2 years but with financial issues from before looming It was harder than usual. The housing market by this time though had fell into an extreme slump and homes had been being practically given away. I knew that No better time would come for me to buy a house so I did. Lesson # 2 never buy a house far away from where you work. This is what I did. See I had been living in Lansing home of (Michigan State) an hour from my home town Detroit Mi. But knowing how much I couldn’t stand where I lived currently, I figured Id buy my home In Detroit and move back when the jobs became more available. Well that never happened. So here I am commuting back and forth and unable to actually enjoy the home I brought no less than 6 months ago. Caught up In the world of home ownership I started buying stuff and fixing up my house to my liking and again my financial values was on the back burner. Remember good old Honda?? Well I had let my insurance laps because well see what had happen was……… Ok no real excuse other than I just didn’t want to pay it. Well Honda gets into a $6,000 car accident and the story ends there.

Present time. I decided to rent out my house so I could be closer to work and attempt to salvage the job I really can’t stand (took a 2 month hiatus without pay). Almost on the verge of being fired I am just now taking hold of my situation. Oh yea and Good ole Honda was repo’d yesterday. So there it is all laid flat out for everyone to see. $20,000 dollars In debt (not including my house) where does she go from here…….

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