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Monthly Update & Zero based budgeting

March 19th, 2016 at 12:26 pm

I want to start blogging our saving progress each month for 2016. March savings is where we are now.

April's budget is almost done once I get all the bills and my wife takes a look our budget. Some background about our budget, we started Dave Ramsey in January 2015 and immediately began following his teaching principle via podcast. Within months we started to do a zero-based budget. We had about 40K in taxable account in our brokerage account and began paying off our credit card bills, equity loan, car loan, and service time. In August I sold my WRX to some 19 year old who worked at Apple computer--drove all the way to my house from the bay area paid cash for it. So in 5 months of following Dave Ramsey we completely turned our financial glimmer of fogginess--sometimes darkness into a glimmer of hope and sunshine. It was a complete financial transformation. We no longer use credit cards, cut them all out and use cash envelopes. We paid off around 43K in total debt by June. By the time we began FPU class late August, we were debt free except our primary mortgage of $225K. We ended refinancing into 15 year mortgage few months later. I thought it was worth it since we have no other debt. We can save more while paying down our mortgage a lot faster. Our LT goal is to pay it off our in 5 to 7 years. While at the same time continue to save on other priorities.

SAVING SUMMARY YTD
2016 MARCH
ROTH $500.00 $3,000.00
Car Fund $300.00 $3,600.00
XMAS Fund $500.00 $1,500.00
College 529 $100.00 $300.00
Renovation $300.00 $1,300.00
Total $1,700.00 $9,700.00

Fully Funded Vacation
Lake Tahoe
San Diego

We filed our taxes and received close to 4K of refund. I adjusted our withholding last month. Our goal in May is fully fund my ROTH. Once this happen we can accelerate more savings towards renovation, and car fund. Xmas fund goal is 2500 for this year, I expect this to be done in April. Be nice to cross this list out.

5 Responses to “Monthly Update & Zero based budgeting”

  1. snafu Says:

    I've enjoyed reading your blog, progress and current evaluation. What zoomed off the page at me were 'happily married.' I believe that those of us who manage our money well with support and encouragement of our spouses/SO/Partners, seem to be happier and more content. Do others have similar views?

  2. tripods68 Says:

    I suspect not. Money wasn't important to my wife earlier in our marriage. But when she started listening to me 3 to 4 years in our marriage, and Dave Ramsey principle she began believing it completely. I'd say, have a plan, and a budget with your spouse fully involved in the process. It works all the time!

  3. Ima saver Says:

    I have to agree with snafu. We have always lived on a budget, because I used one before we were married. I handle the finances and we have never fought over money.

  4. rob62521 Says:

    It sounds like you are doing quite well. Keep up the good work.

    DH and I didn't have a budget for a number of years, but I handled the finances. It was tough when we first got married because neither of us made much money, but we rarely fought over money. I kept things paid and we weren't ever in the red. Of course, it didn't hurt that we talked about finances before we married either.

  5. tripods68 Says:

    I appreciate it. It's been a tough journey but a very productive year to say the least. It took years to build bad habits (usage of credit cards) and to rid all that in less than 6 months was a great feeling and accomplishment. It help put us on a different path financially and relationally. I'm not saying marriage is not without disagreements but there are few and far between since we've open up.

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