The first of the year brings many hopeful promises. Every year, without fail, someone asks me if I have a New Year’s Resolution. In the past, I have chosen things like working out, getting organized, getting good grades, etc. Although these are great goals to have, they can get a little lofty when there is no purpose or specification. Someone once told me (or perhaps I actually retained something from college) that goals need to be SMART. This stands for Specific, Measurable, Attainable, Relevant, and Timely. I think this is the first time in my 25 years where I have actually applied this theory for a goal of mine! Let me explain…
Way back in March of 2010, Tony and I were about halfway through our Marriage Prep class. By this point, we were realizing the true value of this class (not just the discount on our marriage license). Some of the topics were easy for us, and others were big eye openers. Our class leaders were a little quirky and almost too “lovey” but in the end, they ended up being a great fit to lead this class. While they were teaching our class, they were also students themselves… in Financial Peace University (FPU). During the marriage prep class, we briefly covered the importance of joint finances and being on the same page with your spouse, but our instructors were raving about the even more valuable and in depth lessons they were learning each week in FPU. Tony and I knew that FPU would probably be a good idea for us. Although we had good intentions, neither of us were great at managing money and we had a lot to learn about debt, investing, and retirement.
Our marriage class ended in April and the rest of the summer was swamped with wedding planning, vacations, and the big weekend of fun! Needless to say, managing our finances was not really on the top of the list. But for some reason, one of my first days back at work, I wondered over the Dave Ramsey’s website. Next thing you know, we were signed up for an FPU course just blocks from our home starting the very next Monday night!
I can say with all honesty that this course was probably one of our most important decisions as a married couple. We have not had one money fight since we’ve been married! (Knock on wood). Instead, we have budget committee meetings. I am the “nerd” who crunches numbers and Tony is the “free spirit” who reminds me of vacations, shopping, and even keeps me positive during tough times (Tony… Mr. Negativity! Crazy!).
Dave Ramsey’s FPU plan involves a 13 week course (we only missed one class due to a work function! And we made it up online!) and 7 Baby Steps. Within the first month, we completed Baby Step 1: $1000 in an Emergency Fund and started on Baby Step 2: The Debt Snowball.
We have developed a working budget that leaves room for some fun. We tell our money what to do instead of letting it rule our lives and our decisions. We had our first “cash” Christmas in years (not one cent went on a credit card). We have a special fund for our 2011 vacations and will pay cash for everything! We are “gazelle intense” at knocking out our debt… I even have a second job! Our class started the Monday after Labor Day. As of January 1st, 2011 we have paid off $6384.77 of debt!!!!!!!!!!
We highly recommend taking this class in person, but if that’s not possible it is also available online. I have personally become so motivated by this class and learning about finances that I really want to share my knowledge with others and continue to keep learning more and more about this vital topic.
Some of the leading causes of divorce include disagreements about money and poor communication. FPU teaches you how to effectively manage your money for life… AND teaches you and your spouse how to talk about money without turning it into a shouting match!
So for 2011, my New Year’s resolution is S.M.A.R.T. Specific = We will continue to work the Dave Ramsey financial plan, hold budget committee meetings, and AVOID credit cards! Measurable = We will pay off a minimum of $500/month towards our debt snowball (on top of minimum payments). Attainable = We would prefer to pay off about $1000/month, but we also have a life. We have out of state family to see, weddings to participate in, vacation adventures as newlyweds, etc. Relevant = The more we stick to the plan and make our money work for us, the smoother our marriage runs and the less fights we have!!! Timely = The faster we can pay off this debt, the earlier we can purchase a home! And have babies! And pay cash for decent gently used vehicles that don’t reek of exhaust fumes when the heat is on and have 193,000 miles on them! And maybe get another puppy?! (Tony will definitely ex-nay that last one!).
Happy New Year People!!! May 2011 bring you lots of love, peace of mind, and belly laughs!
1 comment:
Me thinks I'm paying you too much!
Just kidding. I'm really proud of you two, and it is definitely admirable. Great to start out on the right foot.
Thank you so much for sharing the knowledge. :)
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