Tag Archives: pay off debt

FEEL your way to Debt FREEDOM

**FEEL your way to Debt FREEDOM**



View Time:8:17Minutes



F.E.E.L. your way to debt freedom. It’s a four step process to get out of debt. In this video I outline the FEEL technique, and describe how you can use it to get (and keep) yourself on the path to being debt free.

#DebtFreeDana #FrugalLiving

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(sighing) – Hey, guys, it's Dana and
it's time to talk about money and in this video I wanted to talk about how to FEEL your way to debt freedom. (bell ringing) Now, actually in our family,
I am not the feelings person. I am more of the practical one and my husband is the
sensitive, feelings based, one in our relationship,
so kids always say, mommy is the mean one and
daddy is the nice one, sort of something along those lines. So, anyway, feelings. Getting in touch with your feelings. That is not something
that I'm fantastic at. However, this is not about
that kind of feeling, this is an acronym, FEEL is an acronym. I find at work everywhere I go, there are acronyms everywhere and sometimes I cannot stand them, because everything has been
shortened down into an acronym. However, I was listening to
the "Bigger Pockets" podcast which is one of the
podcasts that I listen to and they were talking about this acronym that they had come up with
and they were using it in regards to real estate investing and I think it's really
relevant to getting out of debt. I find that this acronym
helped with that as well, I think it's the exact
same thing you need to do to get out of debt, to pay off everything as fast as you can. All right, so I wanted to
share this acronym with you. FEEL, which is F, F stands for focus. In order to get out of debt,
you really need to focus on what it is you're doing on your goal, your why, why are you doing it? Just like anything you're
trying to accomplish, absolutely anything, if
you do not focus on it, it is not going to happen. You must focus on it, just
like when you were dating your spouse, most likely
when you were dating them, you were really focused on them and you were spending
all your time with them, your friends were probably yelling at you, hey, you never spend time with me anymore, that's 'cause you were
focused on that person and you ended up marrying them, right? And when you first have a baby, you're focused on your
newborn baby as you should be, so, things, in order to do well at things or to get them accomplished,
you need to focus on them, so, if you're trying to pay off debt, then you have to focus on it. Not obsess over it, but
focus on it as a goal, every single day, it's
something you have to have top of mind and whether
that means putting up some kind of board in your house, carrying a piece of paper
around in your wallet with you or just having conversations
everyday, listening to different podcasts
that relate to money, watching "Debt Free Dana" on YouTube, however it is, that you can,
you need to focus on it. Have it be something
you're thinking about. Correct? 'Cause otherwise you're
just gonna be like, yeah, whatever and it's
just gonna slip away and you're not gonna ever get there. So, the first is F for focus. Second is E and that is
for educate yourself. Educate yourself on best practices. Listen to others who have done it. Listen to people or read books
on how to get out of debt, what's the best plan,
something that has worked for millions and millions of people, you need to educate yourself
on how others have gotten to where you wanna get. Same thing with getting debt free. I followed Dave Ramsey's "Baby Steps" and that has worked for our family, it's worked for millions of others, but of course there are
other programs out there that you could follow, but just make sure that you are educating yourself on how others have done it. And I really like to listen to
a lot of different podcasts, I like to learn as much as I can and I try to read non-fiction books. I'm trying to learn from others
who have been successful. And who have done things that I wanna do. If I wanna be a black belt in karate, I have to train with a black belt. Someone who's gotten there, how have they done it,
I can't just read a book and suddenly become a
black belt in karate. Correct? So I need to learn from those who have done it, best practices. The third E is to execute. You have to execute on that plan. You have to follow the steps. If you don't, if you just
listen to a lot of podcasts, which I will raise my hand and say that for about a year, I was listening to the Dave Ramsey podcast, and we were not doing the steps. We just, we weren't doing it. We were not following
it and for some reason, it didn't even occur to me to follow it, I just was like, oh, this is entertaining, that's for other people,
and we didn't do it and then until one day, if
you see that video of mine out there one day, I realized, oh my gosh, we have, we have to do
this, this is for us. We have to actually do the steps. So, this is the same thing, if you know how to do something, because you've read the books, you've listened to
others, and you're like, oh, yeah, I know how to do that, but if you're not
actually doing it yourself then it's not going to happen. You have to execute it as prescribed, follow the steps as
you are being taught to and don't skip steps, don't
try to do it your own way, because your own way has not been working, otherwise you wouldn't be
looking for help elsewhere, correct? So, you need to execute on the steps. All right and then the very
last one is to learn, it's L, learn from your mistakes. Because you are going to make mistakes. Absolutely, you're gonna make mistakes. And when you make those mistakes, don't beat yourself up. Just try to learn from it
and then you can pivot, make certain shifts, try to change, try to correct things that you don't make that same mistake again. Obviously you don't want to continue to make the same mistake. You need to learn from that mistake and correct things that you can continue to move forward. And then just repeat,
repeat, repeat, repeat. Just continue to do, to do it. Just keep on the path and
I heard someone recently, doing their "Debt Free
Scream" Monday, Ramsey show, and they were saying that they believe that the key to getting out of debt, which I actually really agree with this, 'cause I would say the key is persistence. You have to continue to
keep your foot on that path, because I fully believe
the enemy is going to try to pull you off, drag
you off, push you off, and you have to try to stay on it, but they were saying it's
not necessarily persistence, but it is patience. Patience is the key, because
it is going to take time. Some amount of time and it's
very hard for many of us to have that patience
to stick with the plan, even when we fall down, get knocked off and we screw up, it's very
difficult to stay patient and to stick with it and
keep going, keep going, keep going 'til you reach the end goal. And eventually, you'll reach
it if you just don't give up and you have that patience for it. So, yes, patience is the key, right? Repeat, repeat, repeat,
keep following the steps and keep going, keep moving
forward towards your goal. All right, so that's the
FEEL acronym, like I said, I just really liked it, I
think that it's very relevant and I think that, that's
exactly how you get outta debt. That is the roadmap for debt freedom. If you can follow those
steps then you'll get there and then why do you wanna get out of debt? We wanna get out of debt so
that we don't have payments, so that all the money you're
earning, your income is yours to do what you want to do
with it, gives you choices, you can invest, you can save for whatever you wanna save for, you're not giving your hard
earned money to the bank or to someone else, so, owing
money definitely is a form of slavery and I just, it is
something within your spirit and so, I think when you get out of debt, it just gives you so many
more choices, options in life, freedom, literal freedom. So that is exactly why, so, all right. Hope that is helpful to you in some way. If it's your first time
here, be sure to subscribe, I'm here every single Tuesday,
talking all about money and we are a family of six,
living in the Philadelphia area and that's it, I'll talk
to you guys next week, bye.

How To Stick To A Budget & Get Out Of Debt | Answering Your Finance and Budget Questions

**How To Stick To A Budget & Get Out Of Debt | Answering Your Finance and Budget Questions**



View Time:24:49Minutes



I’m answering your budget and finance questions! Some of the questions I answered are: Are we debt free? Are we planning to pay off our house early? What do our boys pay for and at what age? What do I think of Dave Ramsey? Do we follow his plan? How do you get out of debt when you’re barely making ends meet? How do you stick to a budget when there are always extras? How do you stick to a grocery budget? What do I think of car loans or leasing?

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hi guys welcome back to my channel I am going to be answering your finance questions I put out a call for questions quite a while ago on different topics and one of them was finance so I have a lot of really great questions and I hope you find this helpful okay the first question is are you debt free and yes we are debt free except for our mortgage so no credit card debt student loans or any of that and we have no car loans either I also got asked if we plan to pay our house off early and the answer is definitely yes we definitely want to pay our home off early and we have a plan in place so as long as everything works out we should have it paid off early along with that another question is that I'm getting out of debt when you're barely covering your expenses so I know that this is easy for me to say because we don't have debt but we have lived on a very tight budget before and the only way to get out of debt is to either decrease your expenses or increase your income or both there isn't any magic solution you have to pay that money back and you either have to increase the amount of money coming in or decrease the amount of money going out so you can take a look at all of your expenses and I think it's really important no matter if you have debt or not to know exactly what is coming in and exactly what is going out so be really realistic about your bill and what you're spending so a lot of things are effects – like your rent or your mortgage payment but there are also expenses like groceries if you go out to eat and just things that you spend of money on the hair salon getting coffee going out to lunch or dinner here and there shopping trips even if it's the Dollar Tree even if you're a thrifter all of that adds up so it's really important to know exactly what you are spending each month and so write down all of your bills write down what you're spending maybe keep track for a month so you know exactly how much you're spending on groceries and all of the other things because you may have a grocery budget but you may run back to the store to get a few things and all of those things add up I have to run back to the grocery store too so I'm not judging or anything but we have to have a realistic view of what we're spending money on and we have to see if there's any way we can bring in more money when we lived on a really tight budget the internet wasn't like it is today you can make money and so many different ways so think about different ways that you can bring in more money you can always sell things that you currently have that you're not using or if you have a car that is just way too expensive for your income think about getting something that's less expensive think about getting a lower phone bill think about if you really need all the services that you pay for a cable and different things think about if you could color your hair at home or you could go a little longer in between so long visit if you can limit your grocery budget if there's ways to save just look at each thing I used to have to do this I know I used to be like an expert at finding ways to save money in our budget and I'm glad that I had that experience actually because it taught me to be frugal and be really mindful with how I spend my money so those are just some tips you definitely have to cut what you're spending or increase your income and there are lots of ways to increase your income like it's a decent selfing you can try to lower payment you can think about side jobs that do there at Siri consulting there are so many ways to make an income it depends on your talents and your abilities and if you have a full-time job maybe you can get a few extra hours each week or your spouse can just think about ways to bring in money I thought this was such a great question and I wanted to talk about this and I wanted to read exactly what she said I feel guilty while he works for all of our income advice so as you guys probably know I worked full-time when Christian was a baby but not for a very long time and then I was a stay-at-home mom and throughout my time as a stay-at-home mom I usually worked one or two days a week and I cleaned my parents house so I did bring in some income but for the most part John provided our income and I want to say to you please don't feel guilty for being a stay-at-home mom because there is an enormous value in raising your children and I talked to John about this all the time and I thankfully have a husband who is very supportive of my time being a stay-at-home mom and we were just recently talking about it and there is so much value in raising children there is there are people who get paid to watch children and that is their job and so you're doing that and you don't have to pay someone else to watch your children your husband doesn't have to pay someone else to watch his children and to look after them there are people who work to clean homes and you are doing that and so you're providing a service a valuable service that people earn and komm doing there are people who get paid to do laundry and there are people who get paid to bring their groceries to your car or deliver them to your home and you're doing all of those things and there is great value not only that it is so comforting to your spouse I'm sure knowing that he can go to work and you are caring for his children so don't ever underestimate the value and Matt and even if you don't have any side hustles and you're not bringing in any and calm you are extremely valuable in your marriage and in your family by caring for your home and your children and I strongly strongly believe that my boys are older as you guys know they're 21 and 18 so I get to work from home and YouTube is my job people still question that yes I make a full-time income working on YouTube and I usually work about thirty hours a week sometimes it's a little more and sometimes it's a little less but I earn a great income and I don't feel any more valuable I of course I'm able to do things with the money that I make and it really helps our family financially and we're able to meet our financial goal but I don't feel any more valuable to my family by bringing in the income because I'm still here I still look after my family I still keep our home clean I still make meals I still know what's going on with everyone and my family and those things are incredibly valuable so you can tell I really really don't want you to feel like your husband is bringing more end because he's bringing and come in because you are doing something really really valuable I kind of touched on this a little bit but the question is how did you budget when just your husband was working and in school so like I said I I did work a little bit so we kept things to a minimum we didn't go out to eat hardly ever eventually John and I had a date night about once a month and we were very frugal with it we weren't going out for filet mignon or anything like that during those times we would just have an inexpensive date night but we didn't like run through the drive-through order pizza or go out I made dinner seven nights a week and that was a great way to save money we didn't have a lot of extras we catch everything pretty much to just the bills just the necessities and I was very frugal with saving money on groceries and these things stretch I looked for deals on everything and so that is how we were able to say it within our budget and we just made sure that we had the money for our bills I really didn't spend any extra with my income I've paid for groceries and any extras so if my boys needed a pair of shoes or a new coat or field trip money or whatever I usually covered that with the money that I brought in so we just kept things really minimal and we just didn't spend a lot on extras we were very frugal with gifts and just everything really I would always look to see if there was a way to save money on the phone bill we didn't have cable just everything really a charge and save money on it I answered this before but I could ask this again do we follow Dave Ramsey and what do I think of his method I have read his books and I think he's a wonderful help especially to those who are familiar with budgeting or maybe they think they're bad at money or they are in a lot of debt or any debt really and aren't really sure where to start and feel overwhelmed I think his method is awesome for that I agree with probably 95% of what he said there are a couple things that we do differently I don't necessarily think it's wrong to have a car payment or lease a car and oh man I've seen comments and I know some people are very against leasing a car I am NOT I think it works for some people I think buying a new car can be a good thing I bought a new car in Michigan we had a bunch of dealerships closing down this is a few years ago we don't actually have this car anymore there were a few dealerships and the area closing down it was when the economy was bad and we bought a new car and me saved so much money I think we got a like nine or ten or eleven I can't remember it was a few years ago something like that off the price we've we drove that car for three or four years and sold it for almost the exact price that you paid for it so buying a new car can be a good thing leasing a car can be a good thing if you can afford the payment if you really want a new car and you don't want to lose that money that usually you lose when you buy a new car and you want a really reliable car I don't think that we need to say this is the only way to do thing for everyone we have cars that we have for cash we don't owe any money on them we have a least we have bought a new car and I don't think that there's a one size fits all or you should judge someone leaves are judged on what if they buy a brand new car because some people honestly can just afford to do those things and if they want to you why why does it matter really you know and then sometimes it just works out better if you have a job that requires you to drive all over the place and you don't have enough saved up for a new were very reliable car but you can't afford a payment and you make sure you get a good deal and you make sure you're paying on that so you aren't losing a ton of value I don't necessarily think that's wrong I got us a lot about cars so that was part of the Dave Ramsey thing that I don't necessarily think is across the board everybody in the whole world needs to do it this way but for the most part I agree with everything else there couple things here and there that I would maybe do things a little bit differently but for the most part I think his plan is great just an example I know the snowball has you paying the lowest balance off first to kind of get that snowball rolling so say I'm one credit card you owe $1,000 on another you owe 5,000 when you pay that thousand dollar one off and then the 5,000 regardless of what the interest rate is now me in my math brain I think it would be better to pay the higher interest credit card off because you're actually saving money but I can understand the debt snowball with a momentum like oh I just paid this full credit card off and now I'm gonna work on the next one and it's like a snowball that keeps going so those are just a few things that you know I think a little bit differently about and I will say I'm not some you know expert or anything but I did get a degree in finance so this is something that I've studied and I've heard of lots of opinions on leasing a car buying a car investments and all kinds of things so it's not like I have no backing in my thinking um but yeah for the most part I do agree with him and I think he is a wonderful especially if you have debt and you just aren't sure how to get a handle on it another question that I got asked a lot is do you pay for your son's college do you pay for your son's car insurance phone etc I wanted to make sure I didn't forget anything John and I did a whole video on kids and money and I'm going to link that below we did it a couple years ago when just Christian was an adult but we're basically doing the same thing with Josh and I'll quickly go over it and then I'll link that video kids you want like a full video we are paying for ways to go to college and I got asked a lot about college so we've saved for college and we also really think that kids don't necessarily have to go to like the most expensive elaborate school our boys chose to commute and they are starting out at a community school and they're not going to transfer to a university it's so much less expensive your diploma is going to say that you graduated from that University that's just my opinion and I don't judge anyone who does anything differently I understand there are reasons for going to a specialized school or maybe a community school doesn't have the program that your child is looking for and all kinds of different things no judgement at all but I'm just answering that's how we're doing that so we're saving money by having them go to a community college and then transfer to a university and I think that that is just such a great choice for our family so we're paying for college we really don't want our ways to have when they start out life on their own and this is helping them out but they are responsible for covering all of their other expenses besides they can live here for free we pay for groceries and all of the utilities and things here however my boys do pay for their own phone bill car car insurance gas their books for college clothes haircuts if they go out pretty much everything we cover all of their living expenses here they can live here for free I mean my groceries and all of that but all of the other expenses they pay for once they graduate from high school now with Josh he drove to school for two years and we don't live close to the school it's at least 30 minutes but usually longer because of traffic he wanted to say up a school that he was added to private school so we would be responsible for getting our child to school so we paid for half of his car and half of his car insurance for those couple of years and now that he is graduated from high school he is going to take over his car is completely paid off and he will take over paying the full amount for his car insurance and gas and all that well II was in school we paid for his gas because he was shot me to school and that is our responsibility to get our child to school I know that could be kind of confusing but that's how we do things and I know it's helpful to hear how other people do things so I'll link that video below in case you want to hear more about that I'm going to end with this question I thought this was really good how to prevent small leaks in your budget and I'm also going to touch on groceries because it got asked about how to stay within your grocery budget so when you were budgeting you want to have a little bit of wiggle room maybe have a miscellaneous amount of money for all of those random things that come up your kid needs five or ten dollars for a field trip well that wasn't in your budget and now it messes the whole thing up maybe estimate a little bit extra for your gas and electric bill if you aren't on one of those plans that you pay this specific amount we've never done that so I have looked into it a little bit but just if you know it's going to be about a certain amount has to be a little bit more so you're not you know always having to move money around in your budget and then have a miscellaneous fund for random things but also when you budget try to think about all of your expenses look at your calendar are there birthday's coming up do you have a fund for birthday parties I know when kids are a little bit get invited to birthday parties all the time so maybe have that in your budget and just think about all the things that you usually end up going over your budget on and make sure you include those in your budget and then have a miscellaneous fund I think we had like $50 of miscellaneous when we were on a pretty tight budget and that way if the kids needed money for field trip or just random things we aren't going to throw our whole budget off and afford groceries I think it's really important to budget enough everyone I have to eat and you don't need to feel guilty because you have to buy groceries I see different comments online sometimes there's like this comparison like you are if you can get by on this amount of money and you're bad if you spend this money no look we all eat differently some of us have different values as far as what we want to purchase I'm like to buy organic food and some have dietary needs and some have allergies and of course it has to be more expensive to buy things that are energy free and so one size does not fit all and different areas are more or less expensive some kids eat a lot more during different ages and eat a lot less and there's just a lot that goes into it so please don't compare what you really need to do is just a tournament what is a reasonable amount that you can afford that you will spend on groceries each month and make sure it's enough so that you don't feel like okay it's three weeks into the month and I have nothing left and then you feel guilty and you shouldn't feel guilty you have to eat it is one of our necessities so make sure it is enough but try to save money where you can if it means clipping coupons if it means shopping at Aldi if it means not buying as many snacks if it means cooking from scratch and making granola bars instead of buying them whatever it means for you and your lifestyle and what you can handle go for it we're not in a comparison game but as far as saving yes there are so many ways to save money I have videos on that and I'll link some of them below one way that helps me to stay on budget i order my groceries online now and it does tally the amount for you but when I was in the grocery store before buying my own grocery I would just take a pen and write on the side like two fifty and then the next thing I put in my cart if it was a dollar fifty I'd put it up to four dollars and so I would have a rough estimate of how much I was spending and then sometimes I would keep things in the front of the car and those were if I don't go over I can get leave and you can even do that when you get up to the cashier try to have a good idea of what you are spending but have a few items that you know watch your total as they get toward the end and if you have say okay I'm going to get those paying cash also helps with groceries and anything really because you only have so much and so you have to stick to it so you're not just like oh well I'll get that extra a couple of things whatever it's only $10 it's only $15 having cash allows you to stay on budget because you only have so much we have used cash for extended periods of time and we also use credit cards and then just paid the balance off each month and the reason for the credit card is because of points I usually get hotel rooms for free a lot of times when we travel because of that but you have to be very disciplined if you do use a credit card because it's a whole lot easier to spend extra I hope those tips help you I have lots of finance videos and budget videos I'm going to link the playlist below as well as some of the videos that I talked about and if you have any tests about what I talked about leave them in the comments below thank you so much for watching guys I hope you have a wonderful day

How to Pay Off Debt | Fidelity

**How to Pay Off Debt | Fidelity**



View Time:1:57Minutes



Watch this video to learn more about the three tips that can help you tackle your debt faster.

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Credit cards, loans, mortgages – there’s a variety of different types of debt, so which should you pay off first? By prioritizing your debt, you can create a step-by-step plan that helps to get f the bad and expensive kind fast, while reducing what youll owe in interest.

Here are some tips for taking control of your debt:

1. Start with high interest credit cards. Minimum payments are typically low, and paying only this amount each month will take longer to pay off the balance, and cost you more. Tackle credit cards in the order of their interest rate, starting with the highest. Pay as much as you can towards this credit card and pay the minimum on the others. When the balance is zero, focus on the balance with the next highest rate, and so on.

2. Pay off your most expensive student loans. Private student loans generally carry higher interest rates than government loans. If your private student loans interest rate is above 8%, pay it down next, especially if you’re not eligible to claim the student loan interest as a tax deduction on your income taxes.

3. Keep up with regular payments – mortgages, car loans, and government student loans generally have lower interest rates, and some offer tax benefits, but don’t forget about them. Make just the minimum payments on these types of obligations while you’re paying down your higher interest debt.

As a guideline, many advisors suggest that your overall debt shouldn’t exceed 36% of your gross income. Managing your finances well helps to free up money from debt payments, enabling you to put away savings for good use – like an emergency, unplanned expenses, and retirement. Together, we can review your debt and help you prioritize it so you have a plan to get and keep it under control.

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My Budget Category Breakdown

**My Budget Category Breakdown**



View Time:14:1Minutes



Every person is unique, which means each budget is unique. Today, I am talking about my budget categories, and how I organize my spending.

As an all-cash spender, the budget I set for each category can sometimes include my regular bill payments AND the cash I spend from my cash envelopes. I lump them together to create one monthly budget limit for each category.

I am hoping this video will give you some ideas on how to organize and categorize your spending and budget.



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I’m the blogger behind I have a rambunctious 6-year-old son, live in Washington, and I’m passionate about helping people with money management and personal finance. Let me know what you like to learn more about! Leave me comments and suggestions on my video and let me know!


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today we're gonna be breaking down all of my budget categories I try sharing my story to remind readers that there is a way out that with hard work dedication determination motivation it's all about having a plan for your money and that's what gives you the truth people holy crap it just changed my life they're like oh man you go work no more credit card debt welcome to the budget mom YouTube channel today we're gonna be breaking down and going over all of my budget categories now one of the main questions I get over and over again is what are my budget categories and what do I spend my money on for those categories so I am a cash envelope user I use the budget by paycheck method which incorporates paying my bills online and then all of my variable spending is paid with cash I'm an all cash spender which means I hardly ever swipe my debit card my checking account is only really used to pay my bills and to accept income into my checking account the rest of it is all cash so I wanted to go over today all of my budget categories and what does that mean that means everything not just the categories that I use for my cash envelopes so I use six cash envelopes for my budget but I also use all of these budget categories all of these right here on the side so I have about thirteen budget categories and we're gonna be going through all of these and what I spend my money on for those categories so let's talk about my food budget I do have a food cache envelope and my food budget is four hundred dollars every single month I pull out now before when I was getting paid on the fifth and twentieth I would pull out $200 every single paycheck in cash for my cash and below but now that I'm getting one paid only one time a month I'm pulling the full 400 out the beginning every month on the first so this is my food cash envelope I use it for eating out and grocery costs I do not have a separate budget for my eating out budget and here's why we don't have an eating out budget we eat out and how much we eat out is determined by how low we can keep our grocery costs when we go to the grocery store for groceries for our meal plan and it's kind of created this fun little challenge for myself every time I go to the grocery store it's always like I wonder how low I can keep my groceries this time somebody we can eat out an extra day this week so eating out is not our priority and we really that is determined by how much money we have in our budget after we take care of our groceries so my food budget eating out groceries it also includes day-to-day spending whether I stop and get a coffee or maybe I stop and get a soda when I get gas anytime any of that little stuff I consider food or eating out so that's my food budget my miscellaneous budget I have a miscellaneous envelope and I do about a hundred dollars every single month it is all cash I do not keep any of my miscellaneous category inside my checking account I pull it all in cash $100 a month my miscellaneous envelope serves a very specific purpose in my budget because I'm an all cash spender I really need to make sure that I have cash available when unexpected or unplanned expenses come up in my pay periods so maybe that's maybe a girlfriend calling me to go out for dinner and it's not planned for but I have my miscellaneous envelope or cash or budget to use for those types of things maybe my son gets invited to a birthday party that just kind of came up and we need to go and get a gift those types of things it saves you from using your other savings like your emergency savings for things that aren't really an emergency they're just small wants or unexpected expenses that come up in your pay period so that's what I use my miscellaneous envelope or budget for my fun I do have a fun cash envelope a hundred dollars every single month I pull it all out in cash my fun envelope is used for fun activities that I do with my son or family or friends so that could be going out to the park with my son maybe we stop and get an ice cream on the way there so that may a lot of people say well wouldn't that be considered a food expense it can go both ways this is how I categorize my spending any time I'm doing a fun activity whether it be going to the park with my son or going to the movies and we get popcorn it's technically a food transaction however in my mind for my budget and my spending I look at it as a fun expense we're out doing something fun so that's what my fun envelope for it's also for maybe we decide to go on a one-day hiking trip and we stop and we get you know snacks for the road or we need you know there's expenses that come up for those types of activities so fun with family friends and son that's what my fun expense our budget is for I also pull all of my gas budget I budget about I'm looking at my cap of my budget right here my gas is one hundred and seventy-five dollars for my gas and car budget now here's where things get a little bit crazy so I budget one hundred and fifty dollars every single month and you can see my budget right here at the top of my envelope I pull that out in cash however I budget in my my monthly budget one hundred and seventy-five so there's twenty-five dollars there that's not in cash I leave it in my checking account because I have a car wash subscription that gets pulled out of my checking account it's a regular bill and as I mentioned I pay my regular bills online so my gas and car budget is 175 but I only pull out 150 for my cash envelope and that's strictly for stopping at the gas station for gas now I do get a lot of questions especially since I have a six-year-old son I have a little kiddo is it hard paying cash having to go inside and pay for me it's not that bad usually I can stop and get gas when my son is at school and I don't have him with me but if you have a lot of kiddos especially young kiddos you might want to think about leaving this category in your checking account so you're not having to take all the kiddos out of the car go in and pay come back out pack them all back into the car it can get kind of crazy doing it that way so that is an option for you either that or I have a lot of readers who say they use a prepaid gas card and they just put their amount on there and they can't spend more than that but I do all of my gas in cash and then of course my budget of 175 I have that that carwash subscription as an online bill that I leave in my checking account because I pay my bills online my beauty envelope my beauty envelope everything well I budget about 165 and you can see it here on my cash envelope 165 I pull out in cash that's for my wax and the rash appointments now if you've been following me for a while you are well aware that I do have eyelash extensions and I do get wax every two weeks and I pay with those types of expenses in cash now my beauty envelope is $200 so I'm a budget 165 for my cash but my total buddy beauty budget is $200 I have some other things like my gym membership my gym membership isn't as a regular bill for me it automatically comes out of my checking account I leave that money in my checking account and I have that included in my beauty and health budget so that's what I use my beauty budget for the last cash envelope that I use is my household and below or my household budget I budget 80 dollars for my cash envelope all in cash for household supplies now this is like things like toilet paper paper towels dishwasher soap cleaning supplied laundry detergent all of that like when I go to Walmart and I picked that typist or Costco I use my cash from Mike at my household cash envelope but as you can see on my budget here I have a rent in home budget of 930 so I budget 930 a month but my rent 825 and I also pull out 80 dollars a month for my cash so the reason I'm mentioning this is because it's important to know that even though my budget categories here they have a budget that's different than what I use for my cash and below sometimes and that's because I'm including my regular bills that I pay month to month they are also organized into my budget categories which means I have to leave that money in my checking account so I can pay my regular bills online now I do have some other categories budget categories that aren't included in my cash envelopes one of those is utilities so my utilities budget I budget three hundred and eighty dollars every month that's my phone bill that's my utility bill that's my Comcast Spotify Hulu Netflix those are all included in my utility budget all of those are regular bills and they come out of my checking account automatically that's why I don't have a cash envelope for them I also have an insurance budget that I budget seven hundred and fifty dollars every single month that's another one of those ones where I don't have a cash envelope but I do have an insurance budget because I have regular bills that fall in that category it's car insurance it's health insurance its life insurance its renter's insurance everything like that I like to know as a whole what I spent on insurance cost every single month and like I said I budget seven hundred and fifty dollars every month for that now I also have a couple of other ones so let me just read out what my budget categories are I have food miscellaneous car maintenance fun utilities Beauty my son now my son is um one of the ones I don't have a cash envelope for him his cost I budget a hundred and fifty dollars for him every single month a hundred of that is daycare now I only spend a hundred dollars a month on daycare because we are very blessed and fortunate to have grandma in our lives and grandma watches my son and for some of the days where I have to work or I can't pick him up from school and that type of thing so the hundred dollars is to reimburse her for gas and food costs while she has my so and it's not all the time either which is great because now that I'm working from home and we only spend that hundred dollars but the extra fifty dollars every single month that I leave in my checking account for him is for what if like he needs a new pair of pants or he has school photos or things like that I don't have an actual cash envelope for him it's just in my checking account but I still track it as I'm spending it on my checking account expense tracker I have a savings category insurance and then I also have a holidays budget category now I don't have a specific budget every single month for this category I do have sinking funds in my envelopes which is included in my savings but when I spend money from those sinking funds or those savings cash that I've saved over the months for that specific holiday I like to track my spending as a holiday expense and here's why I like to go at the end of the year probably around the end of December and look back over the year and figure out exactly how much I spent throughout the year just on holidays it gives me a good estimation on what to spend the following year so maybe I'm looking at Christmas I can go back to my expense trackers and my where did my money go worksheets now I use where did my money go worksheets and I have a ton of videos on my YouTube going over my budget recaps explaining these worksheets but it's simply a worksheet that organizes all of my spending into these categories how much I budget every month and how much I actually spend but it's really great to go back and say okay well what did I spend on Christmas last year was it did it work for me do I need to increase it do I need to decrease it and then you can do your estimate and figure out your savings goal for the new year and that's why I like to have that holidays budget category in my budget so all of my budget categories for the month might be different than what I pull out for my cash envelopes it really just depends on my regular bills that I pay online so that's a breakdown very quickly of all of my monthly budget categories and what I spend the money on sharing and don't forget to subscribe you

How to budget using Dave Ramsey's Cash Envelope System on A Debt-Free Journey // Cash Budget Setup

**How to budget using Dave Ramsey's Cash Envelope System on A Debt-Free Journey // Cash Budget Setup**



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A beginner’s guide to budgeting using the Dave Ramsey cash envelope system. Walking you through the basics of how to use the cash envelope system and how it can help you stick to your budget!

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hi I'm Kristen from life of stones comm welcome back to my channel today I wanted to talk to you a little bit about the cache envelope system what it is how it helps you stay on budget how to use it and why I feel like it is one of the top reasons that allowed us to pay off thirty five thousand dollars of debt in only seven months so let's get into it if you haven't heard of the cash envelope system before it's a means to control your spending and keep track of your money using only cash so that means no credit cards you can use debit cards if you prefer debit cards over cash but the idea is that you're only spending what you have so if you're putting something on a credit card often it's because you don't have the money for and if you don't have the money for it you shouldn't be purchasing it so switching to a complete cash system can be a huge change but it absolutely can help you really make good first step towards getting out of debt fixing your finances and really living on a budget now how does the cash envelope system help you stay on budget it helps you because you are allotting a specific amount of cash that you are figuring out when you do your budget each month and you should be doing a budget each month and when you do so you're allowing a certain amount of cash to each category in your budget and what you're gonna do is you're gonna take those categories you're gonna make an envelope for each category and then you're going to put a certain amount of money in there and that is all you're going to spend when that money from that envelope is gone you are done until the next time you fill your envelopes you're not going to spend any more money in that category so for the categories that we use personally we use cash envelopes for food for our weekly grocery shopping for sam's club which is the discount store if you don't have a near you the discount store we shop at near our house where we get all of our other consumables laundry detergent paper towels toilet paper etc we use the cash envelope for eating out at rest we use a cash envelope for our miscellaneous budget and entertainment any entertainment we do for our family we put that in a cache of elope as well you can use plain envelopes like this this is what we use we just label them each one that way when they get gross you can buy a whole box of like 100 at the dollar store so when they get gross we can just throw it out and make a new envelope if you don't like using envelopes or when I get sick of using envelopes I switched to cash clips and I just put the money in my wallet and I put a clip around and mark down these are just little paper and I'm gonna link these down below and you can just write the category right on this clip or another common way is to use small little binder clips you can either take a sharpie and label them on the edge here or make a label or just color coordinate them it's all the same thing it's all the same principle just different personal preferences of what works better for you so here's how it works take your budget ease of example you're gonna use fifty dollars for every single one of these categories I'm talking about you get your paycheck you go to your bank and you take out the money that you're going to need for these categories then you're gonna take your envelopes you're gonna put fifty dollars in your restaurant envelope fifty dollars in your entertainment envelope fifty dollars in your miscellaneous envelope fifty dollars in your food envelope and so on and so forth if you budget every two weeks then those envelopes are going to last you for two full weeks if you decide to go out to dinner and you spend $50 on your dinner then your restaurant envelope is now empty and the thought process behind this is now you take it out of your wallet whatever you need to do now you do not eat out in a restaurant until you're able to fill your envelopes again so if you're able to be committed if you're able to be disciplined enough to stick to this and not swipe that credit card when you want to go to the restaurant then that's going to help you stick to your restaurant budget some people as I mentioned they don't want to use cash they don't want to carry cash they don't want to deal with cash there's a couple other options you can either use a digital cash envelope system on an app is usually the most popular an app like Dave Ramsey's app every dollar you can download it for free and you can designate digital cash envelopes so you will digitally move money to a cash envelope whatever you want to a lot for that category and then when you go to the restaurant and you spend $30 you're going to note that in your app and it's going to virtually subtract 30 dollars and show you that you have a balance of 20 dollars in that cash envelope for the remainder of your pay period another option is just to use your debit card I personally don't like using the debit card I feel like it's a slippery slope for me it's still easy to just keep swiping that card and swiping that card and the reality of what you're spending doesn't quite set in until you sit down to balance your checkbook now I know it's not like that for everybody that's just how it works for me I don't I don't prefer the debit card I feel like it's too easy to forget to log a receipt or to forget how much money is in there when you're out and about I prefer cash it has helped us immensely but if you are someone that can be a little bit more meticulous that doesn't mind sitting there and reviewing your bank statement every couple of days to make sure you're not missing something and you find it easier than maybe using a debit card is the way the cash system will work for you so the last question I get is how long are you going to do the system for this is a very personal question it's going to be different for everybody we have been on this debt free journey since February of 2017 and we have used a cash system ever since we've tried to switch a couple times when I get sick of envelopes they'll switch to the cash clips that I showed you and then I'll switch back we have tried the debit card as I mentioned that didn't really work for us we have tried stopping altogether and what I notice is each time little by little by little almost it's almost unrecognizable we start sliding and sliding and sliding and spending a little more and a little more and going off budget so for us personally I foresee us always sticking to some type of cash system now last year we have kind of blended some of our categories so instead of being so strict with each envelope we've meshed a couple of them together and now I kind of have our whole miscellaneous is just miscellaneous eating out and entertainment all mixed together in one so when all that money is gone it's gone and if we want to use it all and going to restaurants then that's fine if we want to use it all on miscellaneous purchases that we need and not going out to eat then that's fine we've blurred the lines a little bit and that's working for us however we again have been doing this for almost a year and a half now and we have made some huge huge changes in our habits so we've been able to stick to a rigid system you're gonna have to be the judge you're gonna have to see how are your habits how are you a sticking to your budget and you're just going to have to do what works for you and I hope that you'll find this advantageous as we have this system it's it's been so helpful for myself and my husband you just really will have to figure out what works best for you and I hate to keep saying that but it's true because this is not a one-size-fits-all journey your journey to paying off debt living on a budget is going to be relative to you and your life and your lifestyle so if you have any other questions about the cash envelope system if you want to leave them below in the comments I'd be happy to answer them the best I can I'm also going to link a blog post that goes over this and a little bit more detail down below in the description and I appreciate you watching my video I hope you give it a thumbs up if you found some value and please subscribe