Personal finances gives me headache!

So, Joseph and I finally decided to bite the bullet and get serious about paying off our debt.  We've been incredibly stupid in the past and lived beyond our means with the help of credit cards.  Sadly, we didn't learn our lesson very well  and made the same mistakes.

Now, we are listening to Dave Ramsey's CDs and have come up with a plan.  Dave is very entertaining to listen to even when he's telling you that you're dumb.  LOL!  He also makes a whole lot of sense.  Maybe knowing that he's was stupid and recovered makes it all go down a bit easier too.

Just because we have a plan doesn't mean it's easy (and Dave said it wouldn't be).  I have a degree in English, so numbers aren't really my thing anyway.  Joseph is much better at all that.  We're using the cash flow plan and envelope system for day-to-day living.  This should be relatively easy, but we're still learning.  It's harder than you think to only spend what you make and carefully plan for every dollar.  If an option or need pops up, you have to say do we have the cash or what envelope isn't getting it's allotment.  It makes total sense, but when you haven't been forced to live that way there are struggles.

On top of that we're trying to figure out how best to spend our tax return for greatest impact.  It's all ridiculously tedious for me, but it has to be done.  I'm even trying to use similar methods in my business.  It's so hard to tell myself no for things I really want now.  The rule is that I have to save for the things I want or need.  Sometimes I'm not given that option and just have to say no.

On the positive side, we will be debt free except the house in 3 years at the longest.  I think we'll get it done faster.  It's kind of exciting to make headway even when it takes drastic measures.  We're talking about cutting cable to the bare minimum for a few months.  We will be selling things we don't need right now (extra bed, hot tub).  I'm finally going to sell those Dooney & Bourke purses I don't want (too in love with Grace Adele).  I'm taking clothes to consignment too.  

If we live like no one else now, we can LIVE like no one else later. What a wonderful lesson to teach our children and tremendous weight off our shoulders.

~Heather

P.S.  Here is a pic of our deals from Rhea Lana.

We bought 60 items, many of which had more than one item on the hanger, and spent $120.  That much little girl clothes would easily cost us $4-500 retail.  Our budget was actually $150, but they didn't have much for Aiden.  Our remainder will stay in the envelope for now, and we'll put more back next month to go shop for him once we get a better picture of what he had and needs.  Rylee has already outgrown most of her clothes, so she was the more immediate need.