Where can I get a clarification of Dave Ramsey's terms? I'm not sure what sinking funds are and I'd like his take on the envelope system. I'm having a hard time figuring out realistic amounts and just what envelopes I should have.
I know I should buy the book but I just don't have the $ right now. I will try the library tonight. Which book should I look for?

~ Hi! I'm not familiar with the system because I don't use it, but something you wrote made me want to comment. "Realistic Amounts" for anybody start with knowing your income and your expenses. Have you been tracking your expenses for a while? I tracked my expenses for 6 months before I felt I could truly analyze where the leaks in my ship were. Then I knew how much I could alot for each 'optional' purchase while still working towards my goals. I hope someone else can answer your Dave Ramsey questions better than me!

I copied this from http://www.weeklyeagle.com/eagle/nest.htm

hope it helps! ---

Dave Ramsey is a syndicated radio talk show host, best selling author and America's trusted source for financial straight talk. He offers advice on personal finances and a unique insight into life and financial matters. He is heard by over 2,000,000 listeners weekly on his radio program and over 200,000 in live events. Dave Ramsey has been featured on CNN, The Today Show, CBS This Morning, CNBC, the 700 Club, Money Magazine and People Magazine just to name a few. The Weekly Eagle is pleased to welcome Mr. Ramsey and encourage our readers to email him with their questions at askdave@daveramsey.com If you would like to visit his site, please click on the picture above.



February 26

Tips for sticking to a Budget

Q:Dear Dave,

I’m trying to manage my finances by living on a budget. I am finding it really difficult! I can’t seem to make the numbers even out at the end of each month. No matter what I try, I can’t seem to budget the right amounts! What am I doing wrong? Any tips?

Marisa in Edmond, OK

Dear Marisa,

A budget is not a form of medieval torture! It is YOUR game plan, where YOU tell YOUR money what YOU want it to do. This isn't rocket science! Just give every dollar a name on paper. That is the first thing you need to do – write this budget down.

Stay away from places that tempt you to spend. If you have a problem sticking to it, it could be that you are immature. It could be that you can't stay out of the mall! It's not smart for an alcoholic to hang out at a bar. If you are someone that has a problem controlling yourself in a clothing store, avoid going there! The same goes for any area of your budget where you find yourself frivolously overspending. I am not asking you to stay away from the grocery store and starve to death. I am asking you to seriously sit down and look at what you are spending. Are you purchasing too many things that you do not really need? Beware of those areas.

Try the envelope system. It works! Take some envelopes, write the budget categories on the envelopes, and use only the money in each envelope to purchase those things. It sounds a little childish, but so does overspending just because "you really, really want it." This system works great for categories like clothing, groceries, gasoline, and what I call "blow money," your personal spending money for each month. If the money is not in the corresponding envelope, don't buy it. Easy as pie.

Sticking to a budget is a change in behavior. It feels really good to be in control of the income you have earned, instead of letting your money control you. Give it a try! Write down the budget, avoid places where you tend to overspend, and try the envelope system.

Dave

"sinking funds" - money set aside for irregular expenses and used when those expenses occur. car maintenance, car replacement (yep, they're separate), home repair, vacation, and gifts.

www.spam! It is better fried than typedspam! It is better fried than typedspam! It is better fried than typedspam! It is better fried than typedspam! It is better fried than typed.com is a free dave fan's board, awesome....they are so willing to help you, i loved the money makeover book, the only one my library has

I love Dave's snowball method of paying off your debt. Any of his books are great. I suggest reading them all. I didn't have the $$ to buy them so I checked them out at my local library. The first step is to set up an Emergency Fund of $1000, the next step is to set up a budget. Tracking your expenses for a minimum of 30 days is suggested. Good luck!!:)

Thanks for the help :)

I'm also on the Dave Ramsey Plan, and I would really recommend you get a copy of TMMO. It is great, and I use it all the time. It's the best plan I've ever found to meet my needs. There's no way I would part with my TMMO book!!