Tuesday, January 17, 2012


Some say love makes the world go round. Really? Don't think that one is true. The truth is, it would go around anyway, bright one. However, it does take money for the world to operate, especially in the good old USA. Since we are seniors, living on a very tight budget, and The Hubbie is unemployed, me, too, money seems to be the main focus.

We both recently went to the Dave Ramsey Financial Peace University class at our church. It was an amazing opportunity for us. Although we are way pass the saving for college, saving for retirement, etc., we still learned so much.

One thing is to operate on a cash budget. We are doing this with the envelope system explained in Dave Ramsey's books, class and website. It has made a huge difference at our house. The idea is to name every dollar, set up what you will need for the month for gas, house repairs, newspapers for coupons, eatting out, etc. Put that amount in cash into the envelope. Take out what you use when you use it. When the envelope is empty, you are finished spending in that category for the month.

Before we started this system, we were putting $1400 per month on our Discover card. Shocking, I know. Since we always pay it off every month, we were going into the hole every month! Now, operating with the envelope system and cash only, we actually have money left at the end of the month!

Now, that's a tip worth taking to the bank!



dfish said...

Having grown up on the Navajo Reservation, I am amazed that most of the totally uneducated people used a similar system but the more sophisticated don't and have to be taught to take care of their money.

The more educated people are, the more difficulty they seem to have with the concepts.

Carol said...

That is very interesting! I think part of it is the world today lures people into having everything they want via credit. It's a trap. We've lived on little for years, too. Glad we learned even more on how to do it!

Have you written a book about the reservation life?