Bad with Money

A

amanda12485

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Looking for some advice on how to be good with my money. i really want to stop living paycheck to paycheck and get some bills paid off, but don't know the best way to pay this stuff off and budget and start a savings. Would I see a financial advisor for this? Any info would be great.
 
Amanda, congrats to you! My DH and I have experience with the way to properly budget. Everything we learned was from Dave Ramsey. Today we are debt free with the exception of our mortgage. I was were you are. I felt that we were both hamsters on a wheel of debt. There is hope...I promise. Good luck to you!

http://www.daveramsey.com/
 
I have the blog for you!

Congrats on wanting to get financially better!

There's a wonderful blog that you can start out with called the 'simple dollar'. The guy who writes it started out not knowing a lot and learned a whole bunch and shares it with all of us.

http://www.thesimpledollar.com/

And another blog:
http://www.bargaineering.com/articles/

I'm not much on financial advisors lately, I'm actually doing better in my 401k on my own then what the 'advisor' suggested. Educate yourself, and take responsibility for your financial health (and you are on your way by asking for help :))

Lisa
 
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I went on that dave ramsey site, but i'm not sure where i am supposed to go on it?
 
Amanda, just cruise around a little. To make a long story short, we started listening to him on the radio and his basic theory boils down to making all of your debt crystal clear and paying off debt in a certain order. He famously says do whatever you can to pay off debt as soon as possible by living on beans and rice. We did not buy any of his books, because we listened to him daily, but I am sure his books are worth a look. Good luck!
 
Another vote for Dave Ramsey, if you're getting started with budgeting.

When going beyond how to set up your budget, you might want to consider also Clark Howard. He has has good tips for saving money in all manner of ways, and tips on basic investing. Also, there's Brian Preston "The Money Guy" , who has understandable advice about investing once you want to go a little beyond the basics of investing for retirement.

All three have free podcasts on itunes :)

Kudos to you for biting the bullet!
 
Wow! What a small world we have here! I figured nobody would know who he was! :) He changed our attitudes on saving and spending. If he were in front of me right now, I would lay a big fat kiss on him! :)
 
I think Dave Ramsey is a godsend! You could start with his book, "The Total Money Makeover" but I think his workshops are the best way to really get it done. There is a place on his website where you enter your zip code and find the closest "Financial Peace" classes nearest you.

If you listen to his radio program (or he is on Fox News at night) you'll be amazed at the people who had nothing, paid off debt and are so much happier.
 
Incidentally, the best thing I ever did for my budget is to be dedicated to working out at home. I am very careful not to shop for Cathe dvds when I don't have the money. I budgeted two 120 dollar gifts to myself per year, one at Christmas and one at my birthday. I think of it as the investment that just keeps on giving!

Also, since I am between jobs I am being very frugal about everything. I bargain shop for groceries, I have the least expensive membership on netflix, I do my own yard work (its 6 acres of weed eating!) and I have three room mates. I'm not saying you need to do any of those things. Oh, I like Rich Dad Poor Dad. That is an excellent book. I highly recommend it. Beyond setting up yourself properly, you may want to set up a will to make sure that your loved ones are provided for in the event that you are not able to care for them.
 
In addition to the excellent advice you've already received, I would add "The Millionaire Next Door." Great advice for not spending needlessly even when you have $$ to spare. Good luck!
 
jonahnah said:
In addition to the excellent advice you've already received, I would add "The Millionaire Next Door." Great advice for not spending needlessly even when you have $$ to spare. Good luck!
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Ditto on The Millionaire Next Door. Excellent book. My cheapskate accountant husband loves it.
 
What I tell my friends when they want to know how to save us much as me I usually tell them:

1) stop eating outside. prepare or microwave or heat your meals (preferably the first)
2) cut coupons. (think: coupons = free money).
3) only buy things on sale and preferable coupon + sale.
4) get what you need, not what you want - this is hard so if you need to do, for the first month, write down anything you are going to buy, look at it, and decide if you really need it. if possible, make a list ahead of time of necessities.

When you have a cash pad, then think frugal ant and not grasshopper. I didn't read any books, I just did what made sense to me but those are some easy things to do at first.
 
Make sure you are paying more on any higher interest credit cards or loans you may have. Don't be afraid to shop around for lower interest cards with a FREE balance transfer option.

Good luck.
 
Another Dave Ramsey fan! I agree, his website is cluttered which makes it hard to find things but the tools to get you started are there and they are free. At the bottom of his page is a blue block that says tools. You'll want the Gazelle Budget, Budget Forms, & 7 steps. These will get you started and give you an idea.

I think the classes are great and it gives you support along with knowledge it's also not free. Cheaper than a financial advisor but not free. Sometimes that's hard for people wanting to get out of debt. So there are several Ramsey forums around too if you want to look into those. http://www.llnoe.com/ is one. And his books may be available at the library. I know we have several of his books in our church library.

I also like Millionair next door & Rich man Poor man.
 
Dave Ramsey's Total Money Makeover is a good book so is Women and Money by Suze Orman. You can probably get either one at the library. Dave says take the lowest balance and work on paying that off first while making the minimal monthly payment on all the others. Suze says take the one with the highest interest rate and concentrate on paying that one off while making minimum payment on the other debt. Dave suggests you sell whatever you can (have a garage sale), get extra job and concentrate puting all extra money on debt with lowest balance. When that is paid off take that money and put it on the next one with lowest balance, and so on. My husband and I have followed this snowball strategy except we went from highest interest rate to lowest. We are on track to be debt free for July 2010 (except the mortgage). It takes discipline and commitment to being debtfree. You can do it.

Best of luck.
Carmen.
 
I used to be awesome with money- paid off every credit card each month, perfect but flexible budget, etc. Then I lost 125 pounds in a year, got into fitness, and the following year I quit my traumatic job and was out of work for three months. Losing the weight, especially that quickly, meant that I had to buy 4-5 new wardrobes from the skin out in a short time. Getting into fitness meant that I bought a lot of gear, videos, etc. Being out of work ran up my debt and decimated my savings. I'm still trying to dig out. I'm thinking of rolling my credit card and line of credit debt into my mortgage when I renegotiate it in September. God, I hope that works! It would just give me a little breathing space and allow me to take back all my good money habits. When you are in major debt, you are always running behind, trying to keep up, and it is so ****** stressfull.
 
morningstar said:
I used to be awesome with money- paid off every credit card each month, perfect but flexible budget, etc. Then I lost 125 pounds in a year, got into fitness, and the following year I quit my traumatic job and was out of work for three months. Losing the weight, especially that quickly, meant that I had to buy 4-5 new wardrobes from the skin out in a short time. Getting into fitness meant that I bought a lot of gear, videos, etc. Being out of work ran up my debt and decimated my savings. I'm still trying to dig out. I'm thinking of rolling my credit card and line of credit debt into my mortgage when I renegotiate it in September. God, I hope that works! It would just give me a little breathing space and allow me to take back all my good money habits. When you are in major debt, you are always running behind, trying to keep up, and it is so ****** stressfull.
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Before you roll in your unsecured credit card debt into your secured debt (your mortgage) please go to either dave ramsey's or suze orman's website and read what they have to say about that first! They may have some other ideas that would work without putting your house in jeopardy like transferring to a zero percent card and concentrating on paying that off, calling the card company, etc. Look into the pros and cons first. There is lots of free good advice out there. On the ramsey site you can even download and listen to a podcast of his show. People are always calling in with the same financial/money problems we all have looking for guidance. You may hear dave give advice to someone with a similar situation as yours.

best of luck.
Carmen.
 
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