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Wednesday, July 4, 2012

Act your Wage!

If you know Keith and I well, you know about two years ago we took a vow(yes we also married that year) but this is also the time we took a vow to

"Act our Wage"

This is famous line said by our favorite finance guru Dave Ramsey.

This was a tough decision but one we knew was right for our family.

This would mean lots of discipline, having to say no to things we really wanted and missing out on a few activities we really wanted to do.

In a nut shell this is a program designed for people to completely change the way they look and think about money as well as to help you get out of debt if you have any.

We married late in life (according to some) so we had a great time in our early twenties traveling and racking up some of these.


So it was time to start fresh and take a closer look at our joint finances.

The first step is determining your budget. The same budgets do not work for everyone so this is something you will have to look at personally.

Once you have determined your budget you will need to get a few of these

You are going to need these because you will need to separate your cash and categories.

Remember, we won't be using those cards above anymore, cash only.

We would separate our cash into the appropriate envelope and category based off the budget we  had created.

The best envelope of all is what we called our
"Allowance". This was our personal free money that we got to do anything we wanted with. We will continue this practice in order to be mindful of over spending.

We could go out to eat, buy a new pair of shoes, save it for a vacay,what ever you wanted with your allowance. This keeps you sane and gives you a sense of freedom still.

The next step is determining what amount is left over each month after only these NECESSARY expenses are made out of your various envelopes. (key word necessary) The amount that is left over goes straight to your debt starting with the smallest balance first.

Most people disagree with that when they hear it but this is what keeps you motivated so you don't get discouraged. Instead you begin seeing results sooner.

In fact a lot of people disagree with this program entirely because they don't want to sacrifice and don't see a light at the end of the tunnel. Don't let them get you down, soon you will be debt free and they will still be paying minimum balances till retirement.

In our case 2 years and three months later we kept at it and paid our debt off!

Don't get me wrong there were times I was very frustrated,discouraged and depressed when I had to miss a few events but overall we had a fabulous two years and have A LOT to show for it now.

But in the end

So being mindful of what we learned from this we are looking forward to a fabulous debt free year full of more travels and adventures.

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