Yesterday was such a productive day. I mean I moved literal mountains (or it felt like it) of stuff out of that 2nd bedroom.
Today, I decided to turn my focus back to the mental and financial aspect of my life. My goal is to not just be a minimalist in my ownership of things, but to have a firm, balanced, and focused foundation financially as well.
Last week I posted about how my husband and I have started reading Dave Ramsey's Total Money Makeover Workbook. Last night we reached the chapter of the emergency fund, and saw the spreadsheets. We made no excuses but instead delved into working out the numbers and figuring out what needed to be done.
It was excellent timing that we reached that chapter, as my husband just got paid for the rest of the month and as we have an irregular income, we felt it necessary to balance our entire budget at once.
I admit, I was really, very, scared. The check my husband brought home was just over half our normal monthly income and I felt swamped with anxiety that we simply couldn't make ends meet, let alone the fact that our emergency fund was demolished over the past few months and we had accumulated debt that seems to just grow every time we say we're going to pay it down.
Before I started with this chapter I had made up our main envelopes.
I didn't want to use 20 different envelopes as I know that between an irregular income, and unexpected expenses it would be too much to handle. So, we simplified and made envelopes for the big categories.
Then we filled out his sample worksheet inside the book and used a separate notebook to calculate what had already been paid for and what was left compared to what the original budget should look like.
We also used both the standard monthly income sheet for what our regular income is, and the irregular worksheet. I really wanted to understand this from every angle.
What happened once all the money was put into their envelopes astonished me to say the least.
We not only had enough money to completely pay for all bills, food, and household, but we had an extra $300 to put into the emergency fund!
I had to recount the money 5 separate times to really believe it. I even have money set aside for my sons birthday, and I could buy my husband a new pair of work boots that he's needed for 2 months now!
The last part just about brought me to tears as I realized I could finally afford to buy sheets for our bed. I've been wanting to replace our sheets for 5 years. That's almost our entire marriage!
Today, I took the budgeted money and with my coupons I brought the price of the sheets down from $100 to $23! I am praising God with all I got, cause all of that is simply a miracle!
This morning I was so excited about this that I went into Excel and created my very own spreadsheets.
I am amazed by how this plan has completely turned around our finances in one day. I cannot wait to see how it works out in the next month!