Completed my debt honesty assessment...

**patticakes** · 11-26-2008, 05:06 PM

Last month we received an unexpected attorney bill that blew my socks off. After a rant and excellent feedback, I sat down and really looked at the all the expenses that go out monthly over the year.

I was amazed. I couldn't believe what I have been juggling without a clue -- for YEARS -- I had a clue every month when nothing was left but everything was covered. (The thought of checking back here seened scary too but I realized we are all here to improve our lives so here I am.)

Then I added up all the debts (mortgages, cards, car). I was completely numb. That didn't even touch the utilities for us & tenants, insurance, property taxes, food & gas. Shell-shocked. As I write this I am still amazed where we are at.

That exercise did get our business plans for '09 in the bst shape is has ever been after adding it all up. Having ballparked for many years this will be the first where it feels more concrete than previous years.

The part of me that is searching for serenity says "OMG cut back, simplify" the risk taker side (& Hubby) says "Got to risk to gain".

So that brought us to selling 1 car and the RV. DH is contemplating the boat as well. He wavers about the RV with gas prices down he can see us using the RV a couple times a month to goto the ocean for weekend getaways. I have been asking to go there for the year to feel at peace.

I ramble, I wanted to say thank you for all the sharing & ideas and honesty along the way to getting debt free.

**Michelle68** · 11-26-2008, 05:39 PM

It sounds like you have a good start now that you've done this assessment and you know what needs to be done. The hard (scary) part is finding out where you stand. Now that that's done, you can take action. You're on the right track. Good luck!

**Dancing Lotus** · 11-26-2008, 05:51 PM

Good for you.. Me I just gave up and have now left it all up to the husband. I get an allowance plus what I make at the shop. That's fine with me , my life has never been so stress free. I have been doing it alone for 10yrs it's his turn for a while. Maybe he can do a better job at building a savings then I can.

**mikandmari** · 11-26-2008, 08:48 PM

It sounds like you've got a good start... just keep plugging along, in time you will see results! Cutting back, simplifying, selling stuff... it really will make you life less stressful to be free of material clutter. Hanging out here really helps, too!

**Wendy99** · 11-26-2008, 08:51 PM

Sounds like your off to a great start

It's crazy once you see things in black and white.

**phoeny_moonstar** · 11-27-2008, 01:14 AM

Just keep plugging along and you'll do it!

**ladykemma2** · 11-27-2008, 06:33 AM

Originally Posted by patticakes

Last month we received an unexpected attorney bill that blew my socks off. After a rant and excellent feedback, I sat down and really looked at the all the expenses that go out monthly over the year.

I was amazed. I couldn't believe what I have been juggling without a clue -- for YEARS -- I had a clue every month when nothing was left but everything was covered. (The thought of checking back here seened scary too but I realized we are all here to improve our lives so here I am.)

Then I added up all the debts (mortgages, cards, car). I was completely numb. That didn't even touch the utilities for us & tenants, insurance, property taxes, food & gas. Shell-shocked. As I write this I am still amazed where we are at.

That exercise did get our business plans for '09 in the bst shape is has ever been after adding it all up. Having ballparked for many years this will be the first where it feels more concrete than previous years.

The part of me that is searching for serenity says "OMG cut back, simplify" the risk taker side (& Hubby) says "Got to risk to gain".

So that brought us to selling 1 car and the RV. DH is contemplating the boat as well. He wavers about the RV with gas prices down he can see us using the RV a couple times a month to goto the ocean for weekend getaways. I have been asking to go there for the year to feel at peace.

I ramble, I wanted to say thank you for all the sharing & ideas and honesty along the way to getting debt free.

don't forget to include the annual and intermittent things like car registration. for me its an additional 577 every two weeks.

**ladykemma2** · 11-27-2008, 08:27 AM

here is my budget. i operate on a "no surprises" way.

these are paid monthly:
elec
water
nat gas
lawn
gasoline
groceries/supplies
tithe/fast offering
prescription drugs
counseling
joan lunch
credit report
phone land line
cell phone
credit card
lds dating site
internet
pocket money

These are put aside monthly for intermittent expense:
escrow (taxes/ins)
trash
home maintenance
homeowners association dues
flood insurance
termite contract
a/c heat maintenance
oil change/fluid changes/tire rotation
car maintenance other
car insurance
car registration
car inspection
ez tag
new car fund
computer upkeep
computer replacement
dr schenk
travel summer
optometrist
school startup
dentist
co-pays predictable annual doc visits
vet bills predictable vet bills
xmas
office supplies
shoes orthopedic

office supplies line item was recently added because the odd trip to officemax was killing my pocket money and causing me to pull from other areas. i didn't realize that i was spending that much on office supplies until i counted it all up this year. a forgotten annual expense of about 420 a year. i want my pocket money to be pocket money.

when all is said and done the zero based budget has 12.50 left biweekly and 50 pocket money biweekly.

**Greebo** · 11-27-2008, 09:45 AM

DH believes you've "got to risk to gain" - and yes, that's true.

But there are acceptable risks and unacceptable risks. He'll need to learn the difference, it sounds like.

So good luck on his pending education, and I hope it doesn't come a little too late!

**MomToTwoBoys** · 11-27-2008, 10:56 AM

It really is amazing how much your life can be organized financially once you sit down and actually admit to what you're spending money on. Some people are more shocked than others, but it's the ones who actually do something to change their habits that make a huge difference in the world for others to see.

Our family was just spending, spending, and spending some more until we sat down one day and wrote down everything we were spending money on. It was a total shock, and after actually making concrete changes to our habits, we noticed we should have done it a long time ago. It made a considerable difference in not only our financial serenity, but in our family's happiness.

I think everyone needs to sit down and do a budget honesty assessment, even if they think that they're doing ok with paying everything when it's due. I hope you guys can get through 2009 with your new business plan and end up with cash left over after everything is paid.

**patticakes** · 11-28-2008, 03:50 PM

Originally Posted by Greebo

DH believes you've "got to risk to gain" - and yes, that's true.

But there are acceptable risks and unacceptable risks. He'll need to learn the difference, it sounds like.

So good luck on his pending education, and I hope it doesn't come a little too late!

Luckily we only risk in the areas we have knowledge in. It's not like we are going to jump into pork bellies, oil or stock. We stick with what we know, real estate, and know that nothing is promised and everything is cyclical. We're young enough to ride it out, no matter what happens.

When we first got together he risked way more than I was comfortable with (at that time) and I didn't sleep for three days. Over the years, I have gotten a little better but still lose sleep if I am not 100% in the decission.