I talk about our Total Money Makeover a lot. A.LOT. I also think about it quite a bit all the time. I find that there are as many reactions to what we are attempting to do as there are people. The majority of people are either encouraged by our journey or are committed to encouraging us on the way! Some people nod and continue on their way. Others claim that they're already doing that... well, not the Total Money Makeover per se, or maybe not with the intensity that we're doing it, or the Suze Orman version of the Total Money Makeover etc. etc.
I worry about those friends who think that they're doing the TMM, but have never read the book, gone to FPU or heard the Dave Ramsey radio show. Now, before I go in further, let me say that I do not idolize Dave Ramsey or think that he is the end all and be all of personal finance. Sorry Dave. Even he says that he didn't think of all of this by himself, he just put it together and marketed better than others.
Here's why I worry. I know me.
So what does that have to do with them?
Nothing. Everything. Maybe something.
Here's what I learned in our first month. We have money. Maybe not a lot by the world's standards, but we have money. For years I prayed that God would provide for our family and help us get out of debt. That prayer was in many ways "wrong". God was already providing for us. We could have been out of debt by now if we had the tools. We didn't have the first clue how to get out of debt.
Reading the Total Money Makeover, hearing how it's changed the lives of so many people that we know and making the decision to discipline ourselves in the practices outlined in TMM has given us the tools not only to get out of debt, but a much broader picture of how to build wealth for retirement and invest wisely in the future.
I think the number one non-negotiable tool is the budget. I can account for every dollar that came into and went out of this house last month (within a $30 margin of error). I can do it without guessing or estimating or "fudging a little bit". I cannot do that for any other month that I have ever been alive. And I can say with 99% certainty that for the other 220 months of my life (where I was earning money) that I wasted upwards of hundreds of dollars each month because I wasn't paying attention to where my money was going. I would say that I'm 100% certain, but that just sounds arrogant! One might even say that I wasted millions of dollars; because had I managed that money wisely I would not still be paying on student loans, but instead have invested it towards building wealth.
That.makes.me.sick.
Here's my new reality though. I estimate that in five years I will have no debt, except our house, and I will have an Emergency Fund of around $10,000. We may also be investing 15% of our income into our retirement and making double payments on our house.
Boom Shaka Laka.
I'll have gone from ostrich to virtually out of debt by 40.
While others may be left behind. Being left behind stinks. Especially when you're being left behind as a slave. I really don't think it matters how much money you're making either. The TMM is just as valuable to a single parent scrapping by on $10,000 a year, as it is to a family of 8 making $50,000 a year, as it is to a family of 4 making $150,000 a year. The point is that in this short amount of time I understand the value of the plan. A plan that gives you your money back and helps you to build wealth, a plan that could eliminate a lot of stress in life and fights in marriage. A plan that makes the difference between going on a cruise in retirement or eating Alpo for dinner every night.
This is a plea to my friends who are still holding out. God wants you to be a good steward of your money. That might look differently for you then it does for me. Maybe Dave's plan isn't the plan you've decided on. Fine. Just make sure that you're educating yourself on all aspects of personal finance. Make sure that you've included a plan for today, a plan for tomorrow and a plan for the next 20 years or longer.
Please.
I worry about those friends who think that they're doing the TMM, but have never read the book, gone to FPU or heard the Dave Ramsey radio show. Now, before I go in further, let me say that I do not idolize Dave Ramsey or think that he is the end all and be all of personal finance. Sorry Dave. Even he says that he didn't think of all of this by himself, he just put it together and marketed better than others.
Here's why I worry. I know me.
So what does that have to do with them?
Nothing. Everything. Maybe something.
Here's what I learned in our first month. We have money. Maybe not a lot by the world's standards, but we have money. For years I prayed that God would provide for our family and help us get out of debt. That prayer was in many ways "wrong". God was already providing for us. We could have been out of debt by now if we had the tools. We didn't have the first clue how to get out of debt.
Reading the Total Money Makeover, hearing how it's changed the lives of so many people that we know and making the decision to discipline ourselves in the practices outlined in TMM has given us the tools not only to get out of debt, but a much broader picture of how to build wealth for retirement and invest wisely in the future.
I think the number one non-negotiable tool is the budget. I can account for every dollar that came into and went out of this house last month (within a $30 margin of error). I can do it without guessing or estimating or "fudging a little bit". I cannot do that for any other month that I have ever been alive. And I can say with 99% certainty that for the other 220 months of my life (where I was earning money) that I wasted upwards of hundreds of dollars each month because I wasn't paying attention to where my money was going. I would say that I'm 100% certain, but that just sounds arrogant! One might even say that I wasted millions of dollars; because had I managed that money wisely I would not still be paying on student loans, but instead have invested it towards building wealth.
That.makes.me.sick.
Here's my new reality though. I estimate that in five years I will have no debt, except our house, and I will have an Emergency Fund of around $10,000. We may also be investing 15% of our income into our retirement and making double payments on our house.
Boom Shaka Laka.
I'll have gone from ostrich to virtually out of debt by 40.
While others may be left behind. Being left behind stinks. Especially when you're being left behind as a slave. I really don't think it matters how much money you're making either. The TMM is just as valuable to a single parent scrapping by on $10,000 a year, as it is to a family of 8 making $50,000 a year, as it is to a family of 4 making $150,000 a year. The point is that in this short amount of time I understand the value of the plan. A plan that gives you your money back and helps you to build wealth, a plan that could eliminate a lot of stress in life and fights in marriage. A plan that makes the difference between going on a cruise in retirement or eating Alpo for dinner every night.
This is a plea to my friends who are still holding out. God wants you to be a good steward of your money. That might look differently for you then it does for me. Maybe Dave's plan isn't the plan you've decided on. Fine. Just make sure that you're educating yourself on all aspects of personal finance. Make sure that you've included a plan for today, a plan for tomorrow and a plan for the next 20 years or longer.
Please.
Kelly,
ReplyDeleteI just realized this weekend, while visiting with my cousin in Denver, that the TMM isn't ALL about getting out of debt. (Of which we have none, other then our house, Thanks be to God alone!) So I'll be ordering the book for David and I to read through the "When you're out of debt..." parts. So that's our plan. We've already got a lot of stuff planned out and are ready to invest, but we're going to read and see if there is anything else that we've forgotten. So we're not going to be right on the same track as you, but we'll be learning right along.
Love you girl, and Ben too!
Stephanie
I just realized the other day that since we are in the early stages of the TMM that my blog focuses so much on the getting out of debt portions and not enough on the fact that there is sooooo much more to TMM for those people who have been managing their money well! I'm excited to hear about your journey too... I'm sure it will inspire me to keep fighting the good fight!
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