Our Family’s Financial Goals for the Summer of 2010 through December 2011
1. Significantly increase our giving to needs in our community and around the world. This is an ongoing goal, so we’re keeping it uncrossed off from the list.
2. Pay cash for a replacement washer and dryer for our very used set.
3. Pay cash for a replacement for Old Blue Van.
4. Pay cash for a couch for our basement family room.
5. Pay cash for bunk beds for the girls.
6. Fully fund our IRAs.
7. Bump up our retirement savings to 10% of our income.8. Fund our children’s educational savings. Kathrynne’s is funded and we made some good headway on Kaitlynn’s this month. We hope to have both Silas and Kaitlynn’s funds done by July or August. We’ll see!
9. Double our Emergency Fund Savings (Instead of having around six month’s worth of expenses set aside, we’re planning to set aside a year’s worth of expenses.)
10. Save 40% towards our real estate investing goal.
We’d love to hear about your recent financial goals and successes! You can post about it on your blog and leave your link in the comments. Or, just share about your progress/goals in the comments. Let’s all keep each other accountable to be better stewards of our resources!
Kym says
Crystal, just a quick question about the bunk beds you bought for the girls. We are planning on buying some for our girls and wanted to know what type you bought, where from and a target price range. Thanks!
Crystal says
Well, it’s hard to say on that because we were able to get a great deal from a local furniture store using two Groupons. We love what we got, but we wouldn’t have paid full price for them!
Many readers said to check Craigslist and garage sales for them. We didn’t end up doing that because the furniture store Groupons came along right about the time we were looking and saved us $400! That’s the first and last time I’ve seen a Groupon for a furniture store, but maybe some crazy deal will show up on your local Groupon, too!
Sarah says
Thank you, Crystal, for all the information and encouragement you provide for us! Reading some of the above testimonials is just heartbreaking, and I wish I had extra money to help them out of their “funks.” For our family, that’s what it’s all about. We want to be free to be able to bless others- not because we make so much, but because we’re wise stewards.
As far as my own testimonial, we started going to a cash system for most purchases at the beginning of the year. I pick up my $360 at the beginning of the month, divvy it up, and make it stretch all month. Most months I have plenty left over, so I don’t end up taking all $360 out. I’ve been tracking all our purchases and only using credit card on our auto-pay bills. Before, our credit card bills were well over $1000/mo. (though we always paid it off). Last month it was under $400. Even with my $360 that I pull out for most expenses, we’re saving so much more just by considering every single purchase.
Crystal says
Thank you so much for sharing! I’d love to have you share a testimonial for me to post on how using cash has changed your perspective and is saving you money so you can have more to give. If you’re not interested, that’s completely okay. I just thought I’d ask!
Christie says
As a mom….I hope you guys do not mind me bragging a little bit. I have been a single mom for 12 years. I made a deal with my daughter for every dollar she saved for a car from babysitting, I would match it. She saved $3480.00. She was 11 when she started and just turned 17. She bought a $3000.00 car with cash and had $500.00 left and then I matched her so she has $4000.00 in the bank for a future car/ college. I felt it was very important to teach her delayed gratification! I am so proud of her.
Suzy says
You should be proud of her. Thanks for bragging. Tell her to keep up the great work.
Nicole Hughes says
This year we have paid off all of our prior credit card debt (about 10k) Then we started on small home improvements, a new dishwasher it was on sale and we had a coupon, we paid cash. Next was our driveway that was cracked and falling apart, we found a clause which made the city we live in pay for half of it (about 2k) then my husband traded his design work for the other half. It is such an incredible feeling to know we have no debt and are making improvements to our home. I love your posts, please keep them coming!
Tracy Geier says
Thank you for sharing your progress. We use a combination of Dave Ramsey and Suze Orman principles. It feels great to have a small emergency fund and we have just over $5k left in unsecured debt at 0% apr. We are renters so we feel it necessary to use credit cards to maintain our high FICO scores for landlord checks, but we use them for our fixed expenses like our cell phone bill, electric bill, Netflix–we cut our cable) and pay it off each month. We use cash for the rest so we are less likely to overspend.
Samantha says
We are working on paying off a bank account I had with an ex boyfriend who wrote a ton of bad checks $576.87 left on that (started at 867.87), an account I had with Progressive insurance when I was 16.. I didn’t know you couldn’t switch companys until your policy was up so I owe $164 on that.. Then a few dr bills that are on payments from a few problems I had after the birth of our daughter and my husbands strep throat a year ago. In July we will be making payments on the student loans I have which is $4500 (roughly) but we are only going to make double payments at the time because we can’t really afford much more. We are also saving up money to fix up the land his parents gave us for our new house we are hoping to buy next spring! A friend works for the county so he is going to level everything and dig out our septic for the cost of fuel in his tractor. It won’t be fully paid but we will have half of the $32000 by spring for a brand new 3 bedroom 2 bath trailer including delivery and set up! Thank you for helping us get on track. Its really hard and we have put it off for a while but this January was a turning point for us. =]
Mary K says
Crystal- seeing your goals checked off is so incouraging! We have been in the Baby Steps for 2 1/2 years. We’ve paid off $42,000 in debt (a new used mini van- because after having twins we couldn’t fit in our car, credit cards and student loans) and we are now on step 3. We’v done this all one one teacher’s salary. Love the comments from other’s too! It can be done 🙂
Crystal says
Way to go!!! Keep up the great work!
Ashley says
I love to read your financial updates! I wish I felt like we were making progress. My husband and I just moved 1,000 miles for him to take a Pastoral position and we haven’t had any leads on our house. We are trying to be responsible as we are young and haven’t started a family yet. I know that we serve a BIG God and that he wouldn’t lead us this far just praying for a miracle on the house and that we won’t have to come up with $10,000 in the end.
lindsey says
we do serve a BIG God! I will be praying for you guys! my husband and I dont have any children yet either and are trying to be responsible too. my husband recently went through school for a second degree (finance to teaching). we managed to go through school debt free but are now trusting God for a job for him and to provide in crazy ways as we are committed to staying out of debt! God is good!
Janine and Adam says
Smartypig (our wedding fund): $14558.75 we’re saving $18000 by 9-10-11
We have been saving for a year now.
Starting a downpayment fund for a house with our overtime we’re both working.
We’re tired, but it’s paying off 🙂
Liz says
@Sandrea Lee. If I had the means and desire to pay cash for seemingly EVERYTHING like they do (house, vehicles, kid’s college, real estate to invest in, etc…), I wouldn’t be concerned about my score because I would never have to borrow money. 😛
Lisa says
Congrats on all your goals!!!
I have a question about the kids’ college accounts.
What medium are you using to save for those? Roths and 529s have yearly maximums that wouldn’t be nearly enough for college. Did you just choose a normal savings account?
We fully fund our 529s every year, but we are still a couple years away from it being able to fully cover college. (my oldest is 8)
Crystal says
We’re using UTMAs. You can read more about our decision to do this here: https://moneysavingmom.com/2011/03/ask-jesse-advice-for-starting-a-college-a-fund.html
Lisa says
Thank you for responding with the information. I will have to look into that! I still need to set up funds for the youngers. The olders already have them.
Lisa says
My oldest is 8 years old. Although she looks cute it shades. The little emoticon wasn’t intentional. LOL!
Crystal says
It’s a weird thing that happens because my blog is set up to automatically turn certain things into emoticons. So 8 ) without a space becomes a cute shade emoticon!
Sandra Lee says
Crystal,
Congratulations on your financial achievement! I’m wondering, do you ever purchase utilizing a credit card? If not, are you concerned about your FICO score? I was always under the impression your FICO score was driven off of credit/payments and if you always pay with cash how does it affect your score?
Crystal says
No, we don’t use or have credit cards. In fact, I’ve never had or used one in my entire life. 🙂
Yes, your FICO score is driven off your credit and debt repayments. However, because we always pay cash for everything, we haven’t felt a need to worry about our FICO score. We’ve also set things in place (disability insurance for both of us, good health insurance, large Emergency Fund, etc.) so that were a major crisis to arise, it is our hope that it wouldn’t plummet us into financial despair.
Sherri says
Sandra Lee,
While this may work for Crystal and Jesse, do keep in mind that most people will actually have to consider their FICO score and credit rating- it has implications on mortgage rates, auto insurance rates, tenant screening for renters, and new job applications, even if you never borrow money for anything else! Not every landlord/employer will do a credit check, but the possibility exists. Most likely your auto insurer does a credit check, and maybe your homeowner’s insurance provider, too (http://www.bankrate.com/brm/news/insurance/credit-scores1.asp). While you don’t need to lie awake at night worrying about your FICO, it is something to keep in mind as you make financial decisions.
Crystal says
Yes, it is definitely something you need to consider — especially if you plan to get a mortgage and have never built up any sort of credit. I was unable to get my cell phone without putting down a large deposit because I don’t have any credit. We also couldn’t get our first apartment without someone co-signing on it because we didn’t have any credit (Jesse ended up getting a credit card for a short while after that so that he could build up credit. Once the credit was there, he cut up the card and hasn’t used credit cards again.)
So there are things it will effect. But those are really the only two situations we’ve come across that have been a problem. It’s not worth putting yourself in financial ruin to “build up credit”, but it’s something you should consider when making financial decisions.
Kris says
While I certainly respect people who can do it without using credit, it is possible to use credit cards responsibly. My husband and I charge most day to day expenses on rewards cards. We’ve never paid interest on our cards in 10 years of marriage. We’ve also paid off $24K in student loans, two cars, and put down $40K on our house (impossible to pay cash for a house in Chicago when we bought in 2004). We also built up more than a year of emergency fund during that time, which came in handy when I was laid off in 2009. This kind of frugality allowed us to take the leap this year and allowed my husband to quit his job and go to law school while I work part-time (we have two kids, 3.5 and 8 months). We are taking on a lot of student loans, but have faith that we will have no problem paying them off, and we didn’t need to take nearly as many loans as his classmates.
Crystal says
I definitely think there is a small minority of people who can use credit cards responsibly (I know of some spreadsheet lovers who pay with CCs and track every single penny and do actually save by using rewards cards, but these are very far and few between.) If you’ve not tried a strict cash-only budget for at least 3-6 months, I’d heartily encourage you to take the cash-only experiment. Many people find that they spend less using cash (I know we definitely do!) and it also forces you to stick to a strict budget because when the cash is gone, it’s gone! In addition, there is a tendency to spend more when you are getting rewards for something — which is “spaving” (spending to save) not saving.
One of my biggest concerns with using credit cards is that using them is banking on the future. Unless you set aside exactly what you spent on credit into a separate checking account and do not touch it for any reason, you could find yourself in a pickle — or headed for financial ruin — if a major crisis happens and you can’t pay your credit card bills. We prefer to just pay with our own money upfront, that way there is no banking on the future or temptation to spend money we don’t have or money not budgeted.
However, if credit cards are the way you’ve chosen to go, do what works for you! I’ve just seen so many people experience major financial crisis and even ruin by using them, that I personally feel they can be very dangerous — especially in the hands of those who have no self-control.
Sandra Lee says
I’m not concerned about my FICO for the last time I checked it was 835. But, I think a high FICO score is something everyone should be concerned with ascertaining for it does impact you in so many areas in life. When I turned 18 my dad had me apply for a credit card. He co-signed for me which not only got me the credit card but his credit rating as well. He taught me to charge something small each month, like a dish towel or a gallon of gas and to be certain to pay it off on time. I did as he suggested and it turned out to be some of the best advice he ever gave me. I no longer work but still have a significant amount of available credit and did not loose any of my hard earned credit with the banking fiasco. I utilize one credit card primarily so as to accumulate reward points and I charge EVERYTHING I can on it and pay off the balance in full each month. I also utilize each of the other credit cards I have once every 6 months to retain good standing. While I don’t think most are as disciplined as I am, I think it imperative everyone establish credit and retain in good standing. Being 51 I have lived through a number of crisises and realize very few have enough money in an emergency fund/savings to cover all which can be encountered. Believe me, a years gross income is not always enough, much less just a year of expenses. Truly, truly, I encourage all to start establishing credit now, and continue to work at it all of your adult life.
Suzy says
I AGREE WITH YOU 10000000%. Well said.
( I have a 804 credit score and I charge EVERYTHING, am 36 years old and I never paid interest to a credit card company but I have gone on many wonderful vacations thanks to my credit cards).
If you are responsible, credit cards are wonderful tools.
AudraB says
I just want to make a quick comment for any parents who find it difficult to put money into savings for their child’s college education. While I obviously think it’s great if you do save money, don’t feel like if you don’t have thousands of dollars in the bank for them when they graduate that they won’t be able to afford college. I paid for 4 years of private college (the equivalent of approximately $120K) entirely by myself with scholarships and by working a full-time job. If you don’t have a ton of money to spare, just make sure you teach your kids a good work ethic and responsible money management, and they will be fine. Too many of my classmates had never been taught those things and spent their college years racking up credit card debt as they partied their way through school instead of using that time to learn.
Crystal says
Excellent advice! Thanks so much for sharing!
If you’d ever be interested, I’d love for you to consider writing a guest post on how you paid cash for private college!
J says
I also paid cash for private college and when I graduated I had 1,800 in my savings account. I worked hard and saved all my money since I was a little kid, had two businesses as a teenager and also worked through college. I think I was born frugal or at least learned it pretty young. I remember getting 10 dollars from my grandma for my birthday and asking my dad to “put it in the bank” when I was four 🙂
Kristen @ JoyfullyThriving says
Good job, Audra! I, too, attended a private college – debt free – for four years (as did my three younger siblings). My father was a pastor and my mother was a stay at home Mom. We didn’t have lots of extra money, but God always provided! I earned scholarships, took summer school (to eliminate a semester of classes) and worked to pay for the opportunity. God always provides!
Christine says
Could you please elaborate how you took summer school to eliminate a whole semester? Thank you.
Kristen @ Joyfullythriving says
Certainly, Christine! I took 2 AP classes which took care of 6 of my college credits for the cost of the test. Then, I took 3 science classes and a geography class at a local community college. The tuition was obviously much cheaper than my wonderful private university. For the cost of $1000 or so, I eliminated another 12 hours. Not only was this significantly cheaper to complete my general education requirements this way, but it was also the difference between gaining my degree in four years rather than 4.5 like many of my classmates. Does that answer your question?
Stephanie says
Just a question…you seem to be doing well financially, have you ever considered increasing your grocery budget to allow for more organic foods into your diet? The stuff that is in our food is just plain scary, if I could afford to do more organic/natural stuff, I would! It just seems like an area not worth sacrificing if you can help it. Just curious 🙂
Katie W. says
We are slowly making our debt go away we have less then 3,000 on our van to pay off then we are debt free! (except for the house) I have taken some time off from couponing , but getting back into it. Sometimes it just gets so overwhelming and takes time away from my family.
We are going to do the next dave ramsey baby step then. I wanted to thank you Crystal because I had never heard of dave ramsey until I found your blog 2 years ago! So thank you for your inspiration!
Crystal says
Great job, Katie! Keep up the good work!
Meredith says
We, too, are doing the baby steps and setting financial goals. Currently we’re on Baby Step #3, which is fabulous, considering that my husband just got laid off on Tuesday. By the grace of God and St. Jude (my favorite saint), we have enough money in our EF to hold us over for a while. I still have moments of panic, but old habits die hard. Our next financial goal that we were about to cross off was saving for Christmas. It’s on hold now. We’re just going to try our best not to touch our savings through this time. We’ll see! On the positive side, my husband is getting much needed things done around the house:)
Love your blog and look forward to more financial topics!
Crystal says
I’m so thankful you have an Emergency Fund! I’ll pray that God provides work for your husband quickly. It is really scary to be unemployed — Emergency Fund or no Emergency Fund. 🙁
Meredith says
Thank you, Crystal!!
Laura says
can’t wait to be able to do this…… hubby is in school full time and getting work when he can….. I am homeschooling our two girls. Money has been super tight. last month $460 for the month….. this month $380 for the month. The only way I’m making it is knowing that the Lord is in control of it all.
Crystal says
Hang in there! This post might be an encouragement to you: https://moneysavingmom.com/2010/10/qa-tuesday-is-it-possible-to-save-money-when-were-barely-keeping-our-head-above-water.html
Karen says
Here’s our financial update for June. We are making great progress. http://www.cuttinupcoupons.com/2011/06/financial-update.html
Crystal says
Thanks so much for sharing; great job!
Andrea T says
Our lastest family financial goal is to fix up the rental apartment in our basement. The rental income from this apartment will cover one half of our house payment. We will be putting money aside each month to purchase a second rental property.
sarah says
I think this is a great idea! We have the space for this, definitely, but I don’t want to do it – it wouldn’t be comfortable for me. We have an independent rental unit (condo).
Jeni says
Hi Crystal,
I love your blog. 🙂 I recently starting reading books on real estate investing and so I’m wondering what your 40% real estate investing goal is..???
Crystal says
We’re still researching, but we’re leaning towards investing in residential real estate.
Jeni says
Same! Hope to hear your future plans and progress with this goal.
Suzanne says
I’m so overwhelmed with money. I hate it! The only debt we have is our mortgage, but we are not good stewards of the money God has given us!!! We have a budget, but only roughly follow it. I could go on and on with excuses about why it so hard, but I really believe it’s a matter of the heart. My heart desires more stuff and more deals. I get consumed with couponing and trying to save a few dollars with up+ rewards or register rewards at the expense of my home and children. My home is cluttered and so is my heart…
Monica says
Suzanne~
Take heart! 🙂 I am positive that many of us can totally relate. Your post connects with me and I want you to know that your heart and home can get uncluttered. It probably didn’t get that way in a day or a week and it may take longer…but it certainly can be done and is worth doing! Take one baby step at a time. You don’t have to feel like you are behind. Just start where you are. If your home is cluttered (as mine feels most days) start in one room. At one time, I followed flylady (you can google her site) and she said to find each night 10 things to give away, 10 to put away, and 10 to throw away. I can’t tell you how many times that helped me to feel better. A mess makes me stress. I used to think that having more stuff made me happy and now I just see that it had the complete opposite affect. I do know how it feels to want every deal and get consumed with it. I have five kids and felt for a while like I compromised my time with them to search for the best deal. Now, I have reserved a limit of time to spend on that and it has helped me. Please don’t think I am trying to “mind your business.” Just wanted you to have some encouragement from someone who has felt that exact way. So here’s praying for you to have an uncluttered heart and home soon. 🙂
Shelly H. says
It sounds to me you need to examine your feelings toward money – it seems like there are deeper things going on than just too much clutter or being overwhelmed by coupons. Ask yourself why these ‘things’ are so important to you. Did you grow up lacking something? Is there a need in your life that this is filling? I think that couponing and deals can be just as much an addiction as drugs or alcohol. Especially if you’re choosing going to do deals over spending time with your kids.
In case you can’t tell, this is the voice of experience speaking! After getting caught up in trying to chase down every deal, I finally realized that I didn’t need to and I was spending way too much time on it – it was such a rush to get all this stuff for free! The problem was, I didn’t really need it, some of it was unhealthy, I was neglecting my family, etc.
As to the money hate – once you truly get control of your money you will totally change your attitude toward it. It is not something to be loved or hated. It’s simply a tool we all need to learn how to use. Good luck! 🙂
Crystal says
Have you read my three-part “Help for An Overwhelmed Newbie” series? I think that might be an encouragement to you: https://moneysavingmom.com/2010/10/help-for-an-overwhelmed-newbie-part-1.html
Pick one area/habit to work on/develop at a time. Take babysteps! Keep at it and don’t get discouraged — even when you fail. By the grace of God, you can do it!
Stephanie says
Suzanne, it is great that you recognize those things in your life. Every week, try to take one “bad habit” you feel you have and set a goal to over come it. Put sticky notes everywhere reminding you of your goal, get an accountability partner, whatever you need to do to get back into perspective. The first step to improvement is recognizing what needs to be improved in the first place!!
Molly says
I had this same problem this winter! I felt like I was drowning in “stuff.” Then I discovered aslobcomesclean.com. Very inspiring on decluttering….which affects not only your house, but your family life and yourself.
Katherine says
We are SO close to being debt free! Only one small school loan is left….we are 87% of the way done with paying off debt and hope to pay it off by the summer. I’m a substitute teacher, so my lack of steady summer employment has slowed us down a little….
Here’s our recent blog about it: http://faithfulsojourners.blogspot.com/2011/06/monthly-financial-update.html
Crystal says
WOOHOO!!!! So proud of you!
Laura @ Frugal Follies says
That’s really great! Wish I had more saved up for the kids’ college funds, although I do have some for each. But I read Debt-Free U (on your suggestion), and we have a good handle on what we need to do to get our children through college without debt.
Here’s my financial update:
Elevate Your Finances in 2011 – May update
Crystal says
Some is better than nothing at all, so don’t be discouraged. And I think that giving your children a solid financial education as well as instilling character in them is probably much, much more important than giving them actual money.
Ashley says
I made it a goal this year to pay for Christmas with amazon.com gift cards from various survey sites and the like. We spent about $250 on Christmas gifts last year and I’m positive 95% of my gifts can be purchased from amazon.com and the rest I plan to purchase when I find an amazing holiday sale. My goal is to come up with $250 in amazon gift cards by Thanksgiving.
Crystal @ Intentional Homemaker says
We’ve done the Dave Ramsey curriculum, and it has been very helpful in helping us determine our financial goals and spending habits, as well as learning how to budget more effectively. We are a one-income family, living in the rural midwest, so we do a lot of driving, even just for groceries. We’re also trying to cook and eat more naturally using whole foods and organics. I’ve made a lot of changes in trying to cut expenses and save money. But, the biggest struggle for us is savings; we just can’t seem to build up our account at all. Any suggestions?
Crystal says
Are you setting savings goals for each month? Even just $10 or $20 a month is better than nothing at all. I’d suggest setting a realistic financial goal and then breaking that down into monthly and weekly bite-sized pieces.
Jillbert says
We live debt free and paid off our mortgage last year. This is our year to spend money fixing up our house instead of making mortgage payments. We just had the exterior repaired and painted and we’re starting a bathroom remodel next month. On top of this, we set a large (seemingly unattainable) goal for how much we’d like in additional savings by the end of the year. A big goal motivates us and is likely to bring us closer to the large number than a more modest goal would. It will also help keep the remodeling in check because money NOT spent there will go to our savings goal.
Crystal says
Great job! Did you break that big goal down into bite-sized pieces (monthly and weekly goals)? This practice has tremendously helped us.
amy says
Due to bad planning, an unexpected pregnancy and four of the five people in my family having surgeries within a year.. UGH! We were way up to are armpits in debt. Okay. I think it was past our arm pits. We have been fighting our way back every since (I have a personal moral eversion to filing bankruptcy). I am happy to say our largest scariest credit card will be paid off next month. While we are far from being debt free we have paid of 75% of our unsecured debt and owe nothing on either of our cars. Due to HUGE medical bill due to a chronic illness we aren’t where we planned on being but we are making consitant progress! I have also paid off my student loan. We could proably doing more I’m pretty impressed with myself because I’ve had two strokes in the past couple of years and I am raising 2 teenage sons with no help from their father and a 7 year old daughter.
Ashley says
Please don’t think that I’m being nosy or rude, but have you talked to the hospital to get a self-pay discount or see if there is any sort of charity write-off you are eligible for? I used to work for a hospital and I currently work for a medical insurance carrier, and I’ve seen quite a few providers write off large dollar amounts in order to get some sort of payment. I wouldn’t be too concerned about the providers; they normally hike up the amount of the bill quite a bit and I believe they can write off some of the write-off they give you on their taxes.
Again, I hope you don’t think it was rude for me to offer this. I can appreciate drowning in debt and like to share knowledge when I can. I think you’re doing a great job!
Crystal says
I’m so sorry about all your medical issues and struggles this past year, but I’m so encouraged by your positive attitude. Congratulations on making progress in the midst of great difficulty!
Courtney says
I agree with Ashley, Amy. Check with your hospital and providers to see if they are willing to re-negotiate your bill or offer other assistance. The worst they can say is they can’t do anything, and then you’re no worse off than where you are now. But if there is assistance available, it would be wonderful to knock out some of that medical debt!
Debbie says
We’ve paid $14,999.00 towards the principal of the mortgage so far this year. We are $1 short of reaching our goal of $15K, six months ahead of schedule.
Denise C. says
WAY TO GO Debbie!!!! 🙂
Lisa says
Very impressive!
Crystal says
Way to go!!!
Guest says
That is AWESOME, Debbie! Way to go and keep up the great work!
Courtney says
We have no debt, and are currently saving cash for a second car. We just had our third baby and have three carseats in the back of our Buick Regal – it can be done! After paying cash for a second vehicle this year we are going to attack the 3-6 month emergency fund and then fully fund the Roth.
Joanne says
This reminds me of me ….My kids are 16,18 and 20. BUT were basically raised on a 1996 Saturn sedan that held all of them the last 15 years. I fit us all in pretty well. Car is still running too ! They were 1,3 and 5 when I got it LOL. Am I low maintenance or what?!!
Stephanie says
We have 3 kids, 16, 12 and 9 and drive a 99 Toyota Camry that has 250k + miles on it. It’s a tight fit when we are all in it too. It still runs and looks pretty good because we have taken care of it….but I am holding my breath thinking it’s going to die soon, we have to get saving for another one!!!
sarah says
You are! That’s impressive. How time flies…1996 is already 15 years ago. My 1998 Honda is almost as old, but my kids are 3 and 6 and I hope I won’t still be driving it 13 years from now.
Christine says
Our van has around 185,000 miles and we are thinking about getting a small economical car, with cash, but our son is 6′ 5″. Both my husband and I are tall, also. Does anyone know of a car that gets good gas mileage that has lots of leg room in both the front AND the back. (I want to wait until our van has at least 200,000 so this will probably be at least next year). Thanks
Susan says
A small car might not work for you at all simply because of your son’s height. You might consider a larger car – I’m thinking what we would consider a “grandpa car” like a Marquis or a LeSabre – even though those cars don’t get 30 plus mpg. They are readily available used for prices similar to those commanded by used economy cars – or even less – because they are considered gas hogs. I was just looking at the Hertz rental car sales website and saw a Mercury Marquis with 21,000 miles priced under $16,000, versus a Toyota Camry with 43000 miles at the same price. The Toyotas range from $15,000 to nearly $20,000 and have much higher odometer readings. We are all sensitive to gas prices, but sometimes I think we focus too much on our gas budgets and neglect the overall cost of owning a vehicle or whether a particular type of vehicle works for our needs.
Dawn says
For those interested in retirement planning, I found this to be helpful: http://www.retiremyway.com/Plan/
It is a retirement planning calculator from ING.
Erin says
My husband and I are facilitating a Dave Ramsey FPU class at church. By leading the class, it is holding us accountable and giving us a bigger push to actually follow through. We are on week 3 and still going well with 35 people in our class!
Missy G says
I just wanted to let you know that your list isn’t coming through correctly on your mobile site. Only number 7 has striked out text.
Thank you so much for posting this. Y’all are such an inspiration to others.
Leighann says
My goal this week was small, but you have to start somewhere.
My goal was to not get take out at all. Cook everything at home, from scratch. I have succeeded! We’ve done a great job of cooking at home this week, and I’ve even got some meals in the freezer 😀 Of course, my house is an absolute mess because I haven’t had the energy to clean it (I have a newborn (c-section 8 weeks ago!!), a toddler and a teenager all at home, as well as 4 cats) but we can’t have it all (where would we put it?) 😉
With all the money we have saved on not eating out this week, I am going to go to Wal Mart and stock up on meat. There are several stores that advertise in our local paper but aren’t in a good driving area (usually about 45 miles or so away) and our Wal Mart will price match their meat. Lots of sales this week on meat that are below my usual stock up price! So I’m putting that money to work for me.
Next week’s goal is the same: don’t eat take out. Not once. Make all meals at home, from scratch; double them up and put some in the freezer. Fingers crossed!!!
Stephanie says
That’s a great goal, and congratulations on meeting it!!
Joanne says
THAT is a great goal and you should be proud of that for sure. Take care! and good luck next week to do it again.
Jillbert says
You go!!! Very impressive with a newborn (and a c-section to boot!).
Janet says
Congratulations on the baby and on meeting that goal ! Wow !!!
Maybe you will inspire the teen to help pick up the house a bit.
The super fast approach to cleaning would take an entire home just one hour / maybe that could be a gift from the teen to you.
Susan says
As someone who struggles with the prospect of cooking dinner every night, I applaud you! Even better, you have a great plan to make use of your savings. And you and your family are no doubt eating healthier, too.
Liz @ Wonder Woman I'm Not says
Congratulations on making such headway on your goals, it is a good feeling being able to cross some of the items off the list. I’m looking forward to the day we are debt free and can make some headway on our longer term goals.
I’ve posted my update on my blog:
http://wonderwomanimnot.blogspot.com/2011/06/financial-check-up-may.html
Thanks for the link.
Gwen says
what kind of savings plan are you using for your childrens’ college fund? My oldest is starting kindergarten in the fall and we want to get started on some sort of college fund for him but I’m not sure which is the best way to go. I’m curious what you would recommend. Thanks!
Nora@ The Dollar Hollering Homemaker says
Good Job! We are so close to paying off our car loan, we have the money but are waiting to get some more money in savings. I thought that we might pay it off next month, but we had a few emergencies this month. We also felt compelled to give some money to help care for a close family friend who just found out that she has a few weeks left to live. I still think that we will be able to meet our goals by the end of the year.
Erin says
Thanks for doing these posts, Crystal. It’s really great to see a family dedicated to living their lives for God in a wonderful way.
We don’t have any debt and have plenty of savings but our financial thinking and goals have centered around going down to 1 income a few months ago. It’s been a large change in our family for me to stay home with the kids and not be earning an income but it’s been a great opportunity!
I’ve been focusing on further lowering our spending so that we make sure that we are still saving as much as we can every month. It’s definitely not to the level that we used to be but it’s still much more than most people out there.
Oh, and we are remodeling our master bathroom this month, paid for in cash! I am so excited!
Marci says
Crystal, thank you for being so open with your personal and family goals. You and your family are such an inspiration!
Sarah says
Dave Ramsey is awesome, you do baby steps so its not overwelming at all. we are paying our debt down, we’ve paid off 11,450.00 in just 6 months! He shows you how to budget your money, which is so important. I only have good things to say about Dave, I feel like I have a great financial future now.
Dana says
So I feel terribly inadequate. You and your husband are truly amazing! I may have missed it, but how would you suggest people go about getting their finances in order? We aren’t a total mess, don’t have a lot of debt, but we just don’t put our money to work for us at all. We don’t really manage it whatsoever. Dave Ramsey seems overwhelming, I have a friend who has done the course, but something like that doesn’t appeal very much to me. Do you think you and your husband would consider a series on finances, with suggestions and baby steps, like you do for the grocery budget (which I love by the way!).
Crystal says
Yes, we definitely have plans to do some step-by-step series on topics like this. Thanks for the suggestion! In the mean time, do you have financial goals? I’d start there. You have to know where you’re going in order to have the motivation to start working towards getting there!
Stephanie says
I’d love this Crystal!! Our goal each month is to survive it! My husband is disabled with an illness and our income is small, small, small and it is not going to change. What we have coming in is basically what goes out, especially with gas as expensive as it is and groceries creeping up. But I agree with Dana, I would love to learn more to be sure that we are making what we do have work for us. We have to get a new vehicle soon and are trying to figure out how to save on a tight budget!
Janet says
Many folks do just have this goal of not going back into debt during this difficult time in America. I wake every morning with the goal in mind to make at least $1.00 to $20.00 that day we have managed to stay not only debt free we covered some major expenses in the last few years that we unforseen. I needed a new stove, hubby needed a back operation. Life does get in the way sometimes of saving but no debt has been glorious. Our income is extremely low too. However, it can be done. I do a ton of odd jobs for our neighboors they pay whatever they can afford sometimes they even pay in food not cash but the tight budget is working. So be incouraged you can do it.
Janet says
We are all extremely close with our neighbors we got this way due to the recession. We now have on neighborhood car we all share we made an LLC registered the car to the LLC have a schedule for use of the car paid for the car together and even pay the insurance together. We all use this as the second car some use it as the only transportation. It is working out great!
Missi says
Stephanie, I would encourage you to think about ways you could earn more money. I know whenever I have heard that I thought, “Oh gee. I never would have thought of that! Not!” Truthfully, however, not many people are truly in a situation where someone is telling them they CAN’T earn more money, CAN’T look for another job, CAN’T think outside of the box, etc. If I hadn’t let my reasons for not earning more take over (and really, no one “judged” me for my reasons, they were what everyone else saw as reasonable) I would have a lot more saved!
Stephanie says
I do, I clean houses on the side however we are very limited as to how much we can make because on disability, you have a household income limit place on you by law 🙁 Really makes it tough. In addition, my husbands illness (ALS-Lou Gehrig’s disease) will continue to decline, meaning I will have to be home full time to be his caregiver. I have tried work at home things with very limited success, and honestly, the emotional drain this has taken is difficult (this illness is terminal with a 2-5 year life span). I don’t want to be one of those people though who never sees an opportunity and am willing to try anything!! I have always had a pet peeve when someone is in a tough situation and they shoot down every idea to help them. I don’t want to be like that!!
Missi says
Stephanie, have you looked into In-Home or Consumer Directed Services? Availability depends on the state I believe, but I would Google “Independent Living Center” in your state. I think it could be a great resource for you!
Stephanie says
I have never heard of it! What is it?
Shelley says
Stephanie,
There have been a few people who have overcome — cured — ALS by alternate methods. One man was confined to a wheelchair and regained his health by getting rid of his fillings and adopting a very healthy, specific diet. He has had normal health for twenty years now. I wish I could remember the title of the book! David Acheson and Dr Ben Johnson also overcame ALS.
Stephanie says
Hi Shelley,
The book you are referring to is called Eric Is Winning. I have it. I have not heard of the other two men, I will look them up. It’s encouraging to hear of those who have overcome ALS. Thank you for sharing that!
Stephanie says
OH I wanted to add, we have been to a Naturopath and a herbalist, and are trying many of those alternative methods. It is very, very expensive though and of course not covered by insurance. But we are doing what we can afford and praying for a miracle!
Susan says
Stephanie, I read your post the other night and keep turning your situation over in my mind. Are both you and your husband receiving disability payments? If your husband is disabled and you are not, his disability benefits should not be affected by any money you bring in. Even if someone acting as a benefits administrator told you that, I would strongly encourage you to do some research and find out for yourself. You might call Dave Ramsey’s radio show and pose the question to him – you are just the kind of person he’d call “darlin'” and set up a free consultation with one of his Endorsed Local Providers.
Stephanie says
Thank you Susan. As far as I know, when you are on disability you are only able to make 66 % of your household income by law. It’s crazy that it does not count 66% of just my husband’s income, but in filling out the disability insurance paperwork, we had to account for the entire household income. Anything over the 66% would be deducted from his monthly disability benefit (we were told). I will double check it though, and would love to learn that I am wrong!!
Mandy W. says
I totally understand what you mean! We were in this situation not too long ago – no debt, but not really knowing where out money went each month. I finally set a pretty strict budget, and have kept good track of it for a year or so. We still don’t have much room to spare (our grocery budget is already tiny, and we’ve cut anything that could possibly be cut!) but at least we have a handle on our situation. I would totally recommend setting a budget. And don’t get discouraged! It took me about two years of constantly reworking our budget to finally set amounts that were doable for each category. It is a journey and a process, but totally worth it! Also, what little we can save every month is saved for specific reasons – Crystal is right about having goals. It makes it easier to save, especially once you know where your money is going.
I, too, would love to see a finance series!
Stephanie says
Thank you for that encouragement Mandy. That is right where we are, and if we don’t have strict budget that we absolutely stick too, we will sink fast. I just have to keep sticking to it, but sometimes I feel so frustrated by it! Especially knowing a large expense is looming in the near future and we can’t squeeze out much to cover it. And I certainly don’t want to go into debt for it!!
Dawn says
Read Dave Ramsey’s The Total Money Makeover first. It’s not a course, just the baby steps written so anyone can understand them. I think if you allow that information to sink in a little, it will help you set goals for your situation.
Stephanie says
I read it a couple of years ago and we were following the steps and then hubs got diagnosed with a disabling illness and I haven’t figured out what to do since. TMM seems to take the stance that you have extra money somehwere, and we don’t! I am just in a funk and kind of blind sided by it all.
Ashley says
My husband and I are both full time students and we are both working full time, but we’re still living paycheck to paycheck. It’s taken months, but we are slowly getting that $1000 emergency fund up. We’re at $250 right now. I know it sounds so small, but it’s a great accomplishment for us. We are truly the post children of “every little bit counts.” If you can just find $5 a week (I can normally find that in change), you can save $240 a year! I know it’s hard, Stephanie, but just take it a dollar at a time.
Debi says
Awesome advice, Ashley!! I just finished coordinating an FPU class and I told one of the participants to break up the baby steps into micro-baby steps in order to get there…even if it was saving just a couple of dollars a month. If you continue to move toward that goal…even slowly…you will get there. I love the tortoise and the hare analogy for that!
Stephanie says
That’s true Ashley, I guess I just feel impatient. We would be on that first baby step for 2 or 3 years, something he says you should accomplish in 6 months!!
Stephanie says
Thank you both Debi and Ashley, you really encouraged me with your words today!! I think on the agenda is resetting our budget and creating some micro steps to financial goals!!
kj says
We paid cash to fix our front porch (family effort!), paid cash to finish remodeling our bathroom, and paid a little (stess little) extra on our house. I am also trying to shop every other week instead of every week to decrease the grocery budget. So far, it is working well!
Crystal says
Way to go!!!!
Bobbi Simmons says
I’ve been able to shop every other week and it has saved me over $200 a month on my grocery bill! What really helps is buy a half a beef!
Nicola says
Do you guys have a separate bank account for your kids’ college funds? we want to start Emily’s when she turns 1 in a couple month but I’m not sure what kind of account to use that will generate interest and not charge fees.
Bridgette @ Blessings Multiplied says
Right now we have our kids in an online savings account that earns a higher interest rate. They have their own savings account at the bank and we do Upromise. Once we get to that step we hope to invest more in their savings through a balanced portfolio (Savings, CDs, Money Market, and other investments avenues)
You can chose from a variety of college savings programs or set aside money to use for their future in a variety of forms. Not all children will go to college (as hard as that is to admit as a parent), some may chose to start a business, be an entrepreneur, or wait for some reason or other and you want to be able to utilize the money you invested for their future.
Nicola says
Thankyou Bridgette, We have only looked at BOA because we have been with them for a while but they don’t seem to have many good options, I would definitely like a fund that she could use if she decided college wasn’t for her.
When did you start your kid’s savings account? To be honest our money handling has never been fantastic, we don’t have debt other than our house which we recently bought but it wasn’t until my Daughter came along last year that we realized we have to start preparing for her future and our own. Hopefully it is never to late to start.
Dawn says
It definitely is never too late to start! And being debt free other than your mortgage makes you ahead of most people in America, so great job!!
Bridgette @ Blessings Multiplied says
I agree with Dawn, it is never too late to start. Nicola, you have a jump start on many people. The fact that you do not have extra debt and are already thinking about saving for her future education and she’s only turning 1 is amazing! Way to GO!!! 🙂
We started putting aside a little bit their first year (we have twins) so they will be in college at the same time, yikes! When they get cash / checks (for birthdays or Christmas) we put half of each one into their college savings to help bump it up and it helps teach them to save even from a young age.
For online savings to get you started you can check out ING Savings, Emigrant Savings, or American Express Savings to get an idea of how it works (I think American Express has the highest % right now but ING will often give you bonus cash for signing up). We’ve had great experience saving with the online savings accounts and it is a good place to begin until you have researched additional ways to save. My advice is start small and gradually add more consistently. Even a small amount at her age will add up quickly.
We have earned several hundred dollars just doing Upromise by buying groceries and products we use every day. The Upromise money can be used for 1 child, multiple children, yourself, or given away. It’s an easy way to add some bonus cash to their college savings. Every little bit helps! 🙂
Koree says
i use ingdirect.com. Great site.
Sandi says
OK we are doing Dave Ramsey but I’m stumped on how much do we need for retirement and kids college?? You said one was done so roughly how much did you save for it?
Crystal says
We just figured out how much we wanted to put towards their college savings and how much we’d like to have saved by the time they graduate from high school. We then figured out how much we’d need to save now that — after compound interest over the next number of years — would equal that amount. Since our children are still young (our oldest is six), we have the blessing of years of compound interest on our side, which helps a lot.
Christy says
Are you planning to homeschool all the way through high school?
Jennifer Snyder says
Yes, we intend to home school through high school. In the Atlanta area, where we live, the options are endless for co-ops and aids in difficult subjects. Check your area for a Timothy Ministry or somesuch at an area church. These ministries are an excellent resource to teach the subjects with which you are not familiar. We are Believers, who school in the Classical style of education. Hence, we are in a co-op, which supports our faith and a rigorous study program. Read “The Well-Trained Mind” by Jessie Wise and Susan Wise Bauer and “Teaching the Trivium” by the Bluedorns as excellent resources. I hope this helps!
Marion says
We are finished all the baby step through 4. We are hoping to pay off our house in less than 5 years. We live in area where housing (including rent) is just down right expensive. My children are about your kids age. We are really stumped about how much to save for college. One thing we know is we are not going to to pay 100% of their schooling. What did you use to make your decision on how much to save per child?
Crystal says
We just considered how much we wanted to put towards their college and/or starting a business or further education. We also factored in inflation and then decided on an amount we both felt very comfortable with that we hope will help give them a great headstart in life — no matter what direction God ends up leading them.
helen says
What many of us want to know is, and what would be helpful in making our own calculations is:
1. What is the dollar amount you set aside for this fund?
2. What is the annual rate of return for the savings and how many years until these funds will be needed?
3. What is the final dollar goal amount for the time the funds are needed?
As Sandi asked, “how much did YOU save for it?”
Your readers are aware that each situation is different, but the question is, as author of MSM, please tell us what YOU did, not only the method you used, just as you tell us how much you spent and saved on food, what specific foods you bought, and the meal plans you use.
Crystal says
Hi, Helen!
Since each situation is different, what we’ve decided to set aside for our children will likely be quite a bit different than what someone else chooses to set aside (or should set aside) for their children.
We’ve chosen not to share the amount we decided upon publicly for a variety of reasons, the biggest of which is that this is not information we plan to share with our children until they are much older. So we don’t feel comfortable sharing it with the hundreds of thousands of people who visit here every week when we’ve not shared it with our children yet. 🙂
Thanks so much for your understanding!
Andrea Q says
How much you save for retirement depends on how much you will need to live comfortably and how aggressively you invest to reach that income level. How much you want to contribute to your child’s future varies by family. Consider such things as the percentage of college costs you expect your child to pay and whether you expect your child to go to a state school or a private college (or skip college entirely).
Janet says
A child will need roughly $40K help besides scholarship and financial aid.
Take it from a Mom who just graduated two and that $40 is in today’s dollars by the time your wee ones get to college that $40 K will need to be more like $50 or $60 .
The $40 k will last them all four years if you are wise and teach them very well with the money. This will have them working too.
So be realistic. Unless they live at home all four years while they go to school and this will cost you the $40 K too. They will need that kind of money.
Diane says
I just used an online calculator and it estimated the cost of a 4 year local public college with be an average of 50,000 per year in 16 years (when my child goes to school) and with compound interest we’d still need to put aside about 5,600/year until she’s ready for college. Now I understand she may get scholarships and grants and work a little but I don’t want her graduating with 200,000 in student loans either, especially if she wants to go to graduate school which is likely since she’s quite intelligent and also both parents have advanced degrees.
Lisette says
There are also tons of college/retirement cost calculators online. Just google “college (or retirement) cost calculator.” You can use that as your starting point and decide how much you can feasible save per month/year. For us, we are saving what we need to for retirement, but we are not able to save the amt recommended for college. It’s important that you put your own retirement needs first!
Jen says
I have been reading Dave Ramsey’s books. I have a question on the baby steps and thought some of the readers my have an answer. Do you wait to save for retirement until after debt is paid off and emergency fund is fully funded?
Jeremy says
You definitely want to pay off debt before saving for retirement. Typically the interest savings alone are worth it – you pay a higher % on most debt than you will earn on investments.
Bridgette @ Blessings Multiplied says
Yes, it is typically better to pay off debt before doing your 3 to 6 month emergency fund and saving for retirement. Although, Baby Step #1 is start a emergency fund of $1,000. This will help with the emergencies that pop up until you have time to get your 3 to 6 month fund completed. After paying off debt and doing the emergency fund then you can use that money to do the Retirement Fund.
These steps work for the majority of people, however, you will need to evaluate your unique family situation. Happy Saving! 🙂
Susan says
I respectfully disagree. A huge benefit of participating in a retirement plan is how it accumulates over time. The younger you are when you start, the more you will earn. If you put off saving, it will be a lot harder to make up for the money you would have earned.
It think it’s importand to save for retirement WHILE you are paying off debit, even if it’s just a little bit per month, especially if you have a plan where your payments are tax-deferred. Your take-home pay will not decrease by the same amount as your contribution because of the lower tax base. Furthermore, if your employer matches your contributions (many do!) then by not contributing to your retirement plan, you’re just saying “no” to free money.
Jeremy says
Susan, if you’re paying 15% APR on debt, but only earning say 12% (a good return) on your investments, you’re losing money by investing while in debt. And since you will be investing rather than paying down debt, you will be paying compound interest.
It’s in Dave Ramsey’s financial peace series – very good stuff.
Susan says
Jeremy, that’s only part of the picture. Your very simple example doesn’t factor in the issues of compound interest and tax deferral. And I’ll say again that if you are able to invest in a retirement plan that offers employee matching and you don’t take advantage of that benefit, then you’re just saying “no” to free money.
I’m familar with Dave Ramsey’s teachings. Some of his advice is solid, but I do not agree with all of it.
Guest says
It also depends on what kind of debt you’re paying off. If you have a car loan that is less than 1% interest or student loans that are 4% for example, the 12% (on average) is a better return. Absolutely agree that you should pay off all credit card debt first but we continued retirement investments (with matching) as we paid off car loans and student loans.
Denise says
I disagree, too. Remember that a 401k is tax-exempt…we save 28% right off the bat by fully funding our 401ks. Even the highest credit cards aren’t 28%, are they?
eve says
Some are now that high