In this recent money makeover, a couple Jim and Cindy, are trying to plan for retirement and figure in the costs of dealing with Jim’s Type 1 diabetes and the risks associated with this disease, and Cindy’s Crohn’s disease, an intestinal autoimmune illness.

Jim and Cindy are 47, and want to retire at 58 and according to the CNN experts, the three main things should do include…

1. Save for insurance now.
2. Get covered for the worst case – i.e. plan for the worst.
3. Stay on a payroll.

Excellent tips and well worth a read even if you think you’re too young to be thinking about retirement. See details on the three tips above at CNN.

Post from: Thrifty Mommy

A study of Harvard graduates showed that those with with written goals achieve more than others.  Some words from Dave Ramsey:

Your budget is a written goal for your money.  People who win at anything have written goals.  Goals are what you are aiming at.  Your money won’t behave unless you tame it.  You need to have a budget for every month.  Spend every dollar on paper before the month begins. Give every dollar of your income a name before the month begins.  This is called zero-based budgeting.  Income-outgo=exactly zero.  Match up every income dollar until you have given it an outgo name (this includes savings).

We have learned the importance of saving for rainy days and having an emergency fund.  We are trying to live a debt free life, even with two house payments.  (Yes, it still hasn’t sold!)

How is your budget?

image from daveramsey.com

Post from: Thrifty Mommy

Last year, I told you about the Financial Peace classes my husband and I were taking at church.  These classes helped my husband and I to get on the same page financially.  We both saw the bondage that debt had on our lives and ever since then we have worked hard to get out of debt.

It didn’t take long for my husband and I to start selling some of the things we had accumulated.  We’ve been married for over 10 years, so you can only imagine the hobbies, toys, and things we had collected.  One time a friend of ours said that our basement looked like an ebay store.  lol

In the last year, our family has nearly completed baby steps 1, 2, and 3 for financial freedom.  In case you don’t remember, here are the steps:

1.  Save $1,000 to start an emergency fund
2.  Pay off all debt using debt snowball
3.  Save 3-6 months of expenses (This does not mean 3-6 months of income.)
4.  Invest 15% of household income into Roth IRAs and pre-tax retirement
5.  College funding for children
6.  Build wealth and give!  Continue to invest in mutual funds and real estate.

In the past year, we have paid over $12,000 in debt!  Isn’t that amazing?!?  We have our $1,000 emergency fund and were working on 3-6 months of expenses.  And in case you’re wondering, we don’t make a lot of money.  You can do this too!

Let me tell you a fact that most people don’t know.  Within the past year, my husband has been laid off from his job for more than four months!!!!!!  It wasn’t long ago that something such as that would have sent us scrounging for money, stressing to the limits, and racking up tons of debt to stay afloat.  I can’t honestly say that we’re doing fine.  Some days are hard because thoughts of uncertainty sink in, but we’re ok. 

God has provided by allowing us to sell a bunch of stuff that we no longer needed and through other unexpected ways.  Of course, our tax refund and stimulus check helped out too.  I’m just amazed when I think back to where we were last year and where we are now.  I’m looking forward to where we’ll be in another five years.

Have you heard of Dave Ramsey’s Financial Peace classes and his book, Total Money Makeover?  What do you think of it?

image from Dave Ramsey

Post from: Thrifty Mommy