Four Months Later...

We have now surpassed the four month mark in our Total Money Makeover and I am completely baffled at how well we are doing and all that I have learned.  When we began, although I was motivated, it felt like we'd really be in it for the long haul.  Dave Ramsey's book said most people can completely pay off their debt in 18-24 months and I didn't think that time frame was really going to be possible for us...but now I am seeing that it actually IS when you really commit yourself to the program and dive right in.

There are many things about money and finances that I believed before that I have now realized are just not true...and changing my behavior has made a world of difference... Here are just a few of them:

REWARDS POINTS ARE A GOOD REASON TO USE A CREDIT CARD.  We have burned through a lot of rewards points over the years...and while those gift cards were nice to have, when I look back at my credit card use I realize that, even when I thought I was living on a budget, I really wasn't.  I went to all sorts of lengths, like tracking all of my purchases in a credit card register, or keeping a spreadsheet of our expenditures, but the problem is, I was only tracking what we were doing after it was already done.  There was planning beforehand, but the planning didn't matter when I was out spending the money until I got home and saw what I did and felt guilty.

IF I CARRY CASH I WILL BE MORE LIKELY TO BLOW IT ON STUFF I DON'T NEED.  Actually, the opposite is true.  I carry cash now and it almost feels painful to give it away...because when I do it's eventually gone.  I never hesitated to whip out the credit card.  I probably did the most damage every time I went to Scrapbook USA--I usually had no idea how much I had spent until I got home.  Last time I took cash and I really thought things through before I decided to buy them, and amazingly enough, I came home with cash still in my purse! CASH IS KING!

A really funny thing that I used to think about our money is that it seemed like, month to month, there just wasn't ever anything left over.  And actually that was true--because we were overspending and buying things we didn't really need.  Even in areas where I never thought there was room to make cuts (like fuel) I have managed to be surprised when there is money left over at the end of the month (the fuel bill has "magically" dropped by almost $100 a month--I can't even explain how it happened but I like it anyway)

So, how have things changed?

• I am no longer stressed about money--AT ALL.  I think about it, make plans to spend it, and track what we're doing, but I don't worry at all.
• Patrick is as informed about our money as I am--no longer am I bearing all the responsibility alone.  We sit down on the 1st of the month and go over the budget for the month, then review at the end of each week.  And we make all decisions about money together.
• I feel amazingly responsible when spending cash--something about handing over actual money makes me feel really in control of what's happening.  And because it's not possible to overspend with cash, there is no guilt involved.
• Our "snowball" is picking up speed a lot faster than I thought it would.  We started with six snowballs and three of them are already gone, with the fourth one really starting to move fast!  It's actually exciting to watch. 18 months is looking better and better....
• In addition to paying things down really fast, we've been able to start saving for some things I really want.  Soon we'll be able to go get them and pay CASH.  No more "90 days same as cash" deals for me--NOTHING is the same as cash.

Did I mention that because I no longer waste time worrying about money I'm actually getting a lot of stuff done?  It's amazing what you can do when you free up your mind...

So for anyone that thinks something like this is not possible... I am living proof that it IS!  It was scary at first (like when I shredded all those cards) but now that we're rolling I realize it was SO WORTH IT!