Love or Hate "Bear" Bryant and Alabama, you gotta love this motivational poster! I'm not usually big into "motivational words" just to get people feeling good about themselves...but realizing the work that people put into changing their lives and improving their financial situation, there is a lot of blood, sweat and guts left laying on that field! HUSTLE and KEEP PUSHING FORWARD!

Grandma's Envelope System

Did you ever go over to your Grandma's house when you were little and when she needed to give you a little money, she would go over to the drawer and pull out her envelopes? She would put her grocery money into one envelope and keep some "other" cash available for fun stuff.

Why don't we use Grandma's Envelope System anymore? Are we too sophisticated now and need to use our debit and credit cards? Online banking is the rage so why in the world would we want to revert back and start using cash??

Maybe you are finally on a budget but are still be tempted to overspend. Spending with cash – instead of a debit card or credit card – is one of the best ways to stop overspending. Getting used to the cash envelope system can take a few months, so try these tips to make the transition from plastic to cash smoother.

Budget each paycheck.
Budgeting and knowing where every single dime is going this month is essential to implementing the envelope system.

Decide and categorize.
Of course, there will be budget items that you cannot include in your envelope system like bills paid by check or automatic withdrawal. However, categories like food, gas, clothing and entertainment – areas where you’re particularly tempted to overspend – work well in the envelope system. Just decide how much will go in each envelope based on your budget and watch your spending habits shape up.

When it’s gone, it’s gone.
Once you’ve spent all the money in a given envelope, you’re done spending for that category. If you go on a shopping spree and spend the $100 in your clothing envelope, you can’t spend any more on clothes until you budget for that category again. That means no visits to the ATM to withdrawal more money! And definitely no credit cards!

Don’t be tempted.
While debit cards can’t get you directly into debt, if used carelessly they can cause you to overspend. There’s something psychological about spending cash that registers more than simply swiping a piece of plastic. When spending cash becomes a habit, patterns of overspending will be broken.

Give it time.
It will take a few months to perfect your envelope system. Don’t give up after a month or two if it’s not clicking. You’ll get the hang of it and see how beneficial the envelope system is as you dump debt, build wealth and achieve financial peace!

A real budget will take about 90 days to perfect...don't get frustrated and quit. Work hard during these first couple of months and you will get used to some new spending habits!

Thank you, Dave Ramsey!

Differences

Some of us are on time and some of us are always late. Some of us are always cold while others are constantly burning up. There are some people that are natural savers while some spend like there is no tomorrow.

The number one cause of divorce in America is money fights. Most husbands and wives have NEVER sat across the table from one another to rationally discuss a budget - th establish a plan for their family's financial future. The checkbook turns into a battlefield where no one ever wins.

How many marriages would be better if the husband and wife understood that they're actually on the same side? Understanding that men and women approach money in completely different ways would go a long way to heal those battle wounds!

Men lose self-esteem when they have financial problems. Men want to "win" and money usually represents a scorecard to them. Women face fear or even terror because, with them, money usually represents security.

Who should make the financial decisions in a family? BOTH OF YOU! The partner with the natural gift can prepare the details of the budget but the decision-making must be done by both parties! When you agree on your value system, you will reach a unity in your marriage that you can experience in no other way!

Understand that you are different from each other BUT, make sure that you work together to put your plan together! You will see amazing results!

Just Do It - Get an Emergency Fund NOW!

How would your life change if you had $1,000 in the bank as an emergency fund? Not a leather couch fund or vacation fund - but, an EMERGENCY FUND! How much comfort would that give to you and your family?

Think about being able to use those funds instead of pulling out the VISA Card to pay for a car repair. Wouldn't it be nice to take care of a car problem with YOUR money instead of creating a credit problem by using VISA's money? How much peace and comfort would it give your family if you had that money immediately available to help out in an emergency?

We work with our clients every day to get $1,000 in the bank AS QUICKLY AS POSSIBLE. Sell some stuff out of your basement...Have a garage sale...And, as Dave Ramsey says, "Sell so much stuff that the kids think they are next!"

Establish an Emergency Fund quickly and provide some stress relief for your family!

Four Walls

If you get to the end of the month and you have more bills than money, how do you decide which ones get paid and which ones wait?

Do you shuffle and pay the little ones first so that "more" bills get paid? Or, do you have a better method?

I would propose to you that you ALWAYS take care of your four walls - FIRST! Food, Clothing, Shelter and Transportation! Everything else can wait a month if it has to!

Food is a necessity. I didn't say "eating out at restaurants" but FOOD! Make a plan before you head into the grocery store and buy necessary items.

Pay your housepayment (without exception!) and all bills associated with keeping your home (water, gas, electric). Notice that this listing did not include cable TV or Dish! TV is not a necessary item - even though some of us can not live without TV! If needed, Pay-For-TV has to be cut and eliminated for a while in order to get back on your feet.

Transportation is next on the list. Make your Car Payments and pay all bills associated with keeping the car running (ie., Gasoline!) This is a priority because you need it to get back and forth to work OR to look for more work!

Clothing is last on the list. Gently used clothing is OK for a while. I have some nice things that my wife picked up at Goodwill or at the Thrift Store.

Cell Phones, Land Lines, Credit Cards, Pay-For-TV are all on the "Secondary" list and should be canceled or eliminated in order to balance the budget. I know it is hard but you have to survive and making sure that your "Four Walls" are maintained is the best way to prioritize your budget!