Testimony from Carolynn of My Little Bit of Life
We took Dave Ramsey’s Financial Peace University in January of 2007 and are very pleased with our efforts. We have finished Baby Step #3 and are currently working on saving up for a down payment on a bigger house.
However, I was thinking the other day of how my mindset has changed over these past five years.
Our Old Mindset: Buy Whatever We Want or Think We Need
Appearances used to mean a lot more to me. I do still care, but in different ways… and honestly, not as much.
I did not grow up with good financial role modeling. Growing up, if I wanted something, I usually got it. If my mom thought we needed it, we got it. It didn’t matter if it was really a need or even if there was money for it.
After I got married, I brought this mindset with me. If I wanted new workout shoes, I bought them. I spent tons of money on groceries for two people and we ate out a lot more than we should have.
When we got pregnant, we bought a house (I wanted to get a house for the amount that the bank would loan to us. Thankfully, my husband put this foot down, and we got a house that was $55K less than what the bank would loan us!), and of course when the baby came, he had to have everything.
Before long baby #2 came along and I was close to having to buy groceries using a credit card. That’s when we went to Financial Peace University and started turning our lives (and little did we know, our minds and values, too!) around.
Our New Mindset: Consider Whether Each Purchase is Truly a Need
Now, before we make a purchase — especially a big purchase — we think about if it’s really a need and if it’s really worth it to us to part with our hard earned money. For example, my husband got into a car accident and the car got banged up pretty bad (the hood was bent up). My husband got home, hooked the car to our tow hitch and pulled the hood back down, then took a piece of wood, placed it in certain spots on the car, and used a hammer to even out the rest.
There is also a hole in the front. This happened about six months ago, and we still haven’t gotten the car fixed. It works just fine, it just doesn’t look pretty! (Five years ago, I would have been very adamant about getting it fixed right away!)
Having pictures taken of my kids and family is very important to me. I sometimes go overboard when it comes to pictures and it can add up fast; not only on the pictures themselves, but the outfits that the pictures are taken in.
This past Christmas, we were getting our family picture taken. I had already bought all of the outfits for my children. I found a shirt for me that I really liked and that went perfectly with the other outfits. I also found a sweater for my husband that was a perfect match to one of our son’s outfits.
The only problem: This sweater was over $50. My husband hates sweaters, he never wears them, and I have to bribe him to wear them for pictures. He also had another sweater (that he had only worn once), up in the closet that would work for our family picture. As much as I really wanted to buy him the sweater, I didn’t.
I didn’t want to spend that much money for something that he’d never wear again, that would be stashed in the back of the closet, when I could just go to the back of his closet and get another sweater that would suffice. (This also would not have happened five years ago. I would have just bought the sweater!)
The Irony: Now That We Have More Money, We Spend Less
I find it ironic that when we didn’t have the money, these things were so important and I would have gone ahead and bought them. Now that we have the money for these things, we didn’t buy them.
I find it amazing how much I have changed in five years when it comes to finances. I no longer agonize about money, I handle it. I no longer check how much money we have in our checking account five times a day (as if it gets updated that often, I know, but I did it).
Now do I wish we had more money? Honestly, yes, I do. But money is no longer as stressful as it used to be.
I find it funny that now that we have a savings, we don’t want to part with that money. If something comes up that’s not in the budget, we usually will cut other areas before dipping into our savings. We have a goal of a bigger house and we are being very careful to stay on track.
Carolynn is a former teacher turned stay at home mom of four: ages 6, 5, 4, & 2. She blogs about parenting and life at My Little Bit of Life.
I really like our “smaller” house also, raised 7 kids, one bathrrom, are you sure you want bigger? I have four bedrooms, most of the time the kids are in the common areas, except for my introvert.
When I read your post, I felt like you were inside my brain. This is exactly how I think now. I use to have no money, would check my bank account and now I have paid off most of my debt and have a little stash, I don’t want to spend any money. If only I could relate this to my sister, she’s in the same boat as I use to be and I know she can turn it around. I’ll pass this on the her. Thank you so much for sharing your story.
I hope it inspires your sister. I wish it would inspire some people in my family as well.
Love your desire to stay out of debt and start saving. It’s such a blessing to have the emergency fund tucked away for “in case.” Such a peace of mind to know that you won’t go in the hole when something unexpected hits.
I saw in your bio-ette that your goal is to get a larger home. Having recently moved, I’d highly recommend not, unless you are in completely cramped quarters. We were in a 2500 sq. ft. home with 4 kids, plus a basement, and I felt like I didn’t connect with my family or the house. It was too big to clean as it should have been, and I felt the need to fill the rooms up with furniture so they didn’t look bare. We moved into a 1400 sq. ft. place with basement and I LOVE it!! The electricity is much less, the cleaning is much easier. We are bonding more as a family, and I don’t need to fill it. It is small, so there’s no need to “impress” others with my home. A burden has been lifted. The downside- moving itself is expensive. You’ll lose several thousand just to move, even if you come out even on selling. Unless you can get big bucks from selling your smaller place and it makes you come out financially ahead, I’d reconsider. Just my opinion though! 🙂 Best of luck!!
Funny that you mention this. Just the other day my husband asked me how I think I’ll feel when I see what’s left after a downpayment. Hadn’t thought about this until he asked.
What an awesome testimony! And thank you so much for your honesty. You said, “Now do I wish we had more money? Honestly, yes, I do. ” And I truly don’t think most people would admit that. I really don’t. But, I would agree with you. Our need are met for me and my two children. I can stay at home with them because of my husband’s job and my tight fist on certain things we purchase or don’t purchase. I have a theory on that… but I’m afraid it might start a discussion.
I used to teach high school, too!
On thing I wish I would’ve added: although I would like more money, this process has really taught us to be grateful, happy, and to respect the money we do have!
Wouldn’t your insurance company fix your car?
I was actually thinking the same thing.
Maybe they didn’t want to spend the money on their deductible??
Unless the insurance did pay in the form of a check and the money was just pocketed?
Anyhow, it’s a good story and a great focus they’ve had. We also are on the Dave Ramsey journey and working on getting our debt paid off. Feels good to not be acquiring any new debt and getting rid of our past debt. I wish I would have known about FPU and Dave Ramsey 25 years ago…
Yes, but we didn’t want to pay our deductible. We wanted to save the money instead!
3/12 years ago, I had a totally the very same mindset as Carolynn. We had bought a brand new 2009 Truck and decided to take a trip to Missouri to visit family. During our visit, my brother-in-law graciously gave us Dave Ramsey’s book Total Money Makeover. It totally changed our life! At first it was very difficult to stick to the budget and say “No” to certain things, but we were determined! We cut up our credit cards, went to a complete cash envelop system and believe it or not it worked! We still have one last thing to pay off, a student loan but after fully funding our emergency fund and paying off 3 credit cards, 2 personal loans, and 2 cars, we are more then ecstatic about what we’ve accomplished! It’s take hard work, sweat and tears! It has been a journey, one I’m SO grateful for! All the money saving ways we’ve learned has shown us joy is never compromised! We’ve learned how to be content and patient (and continue to grow in those areas!). We see how God has used our debt for good. To teach us to how to spend the money He gives us the right way. Im SO GRATEFUL for my new outlook on finances!
Awesome and great job! Congrats!
What a great story. I think you were living the lifestyle of most Americans. I have been reading Dave and listening to Dave for the last few years. I am doing really well, paid off a lot and saved a lot….but I think my husband and I can do even more. Starting FPU in two weeks! Whooop! I wish I could convince everyone I know to take the class.
I wish I could convince everyone too, it’s been such an amazing lifestyle change for us!
We are paying down debt now, so it is nice to read your post and see where we will be in a few years when everything is paid off. Congratulations on your new habits and discipline. (And you have a beautiful family.)
Thank you! I hope this will help keep you on track!
Great post – thank you!!!
You’re welcome!
I used to be the same way until I read The Total Money Makeover. I always thought, “we work hard, we deserve it.” I wish we would have “known” Dave Ramsey when we first got married instead of 5 years into our marriage but we’re on the right track now! Thanks for sharing; beautiful family!
Thank you!
you prompted me to go online and find a class in my area – thank you
Awesome, you will be so glad you did!!