That's Money In Your Purse

I am taking a class based on Dallas Willards "Renovation of The Heart in Daily Practice: Experiments in Spiritual Transformation." My preacher is a huge fan of Dallas Willard and so I thought I would give it a shot. The book is packed with information, and pretty hard to take on, but our teacher is amazing. In the book you are asked to take a part of you, and transform it. I have taken on worry. I, The Mrs, am a worrier! I needed a new way to live rather than riding the worry roller coaster.

Now instead of worrying I go to God and ask for help. It really has worked. So simple but hard to do when you are running the worry program like a little computer (which I was). The next step was to tell friends you feel safe with, that this is what you're working on and let them help you. The teacher explained that God will work though them.

At lunch yesterday with an old and dear friend I admitted my addiction to worry. I told her that at the present moment I was worried about finances. I was worried about being provided for. She listened and was loving and kind.

That evening before I left for class, I was going through my purse and found a $100 bill. It was simply folded up and stuck into the inside pocket. My friend wanted to show me I would always be provided for and I was safe. I cried. When I called to thank her she said: "Don't cry, I didn't want you to be mad I gave it to you. I am just so grateful for our friendship". That money did not solve my financial woes, but it made me feel more loved and cared for by God then ever.


What needs transforming in your life? Is your God big enough to handle it? How can you help someone who is trying to transform their life?

Things You Should Know By Now- MONEY!

If you haven't heard about this yet I'm going to blow your mind. Compound interest. Rather than telling you about it, let me show you.

I have been excitedly trying to explain to my nanny Lucy, why her first financial priority should be to open and max out a Roth IRA. She is just 21 and she mentioned that he wanted to discuss his finances with me. But be careful what you wish for I guess.

I immediately started scouring the Internet for one of those amazing compound interest charts that shows how Person A who starts saving at 22 will end up with hundreds of thousands more dollars than Person B who waits until 30. This is what I wish someone had shown me at a young age! It would have inspired me to start investing at age 14! (I didn't really get my stuff together until much much later, when I opened my own Roth IRA and funded it with low cost index funds).


If my nanny starts investing $5000/yr in a Roth IRA today, she will have $3,331,386 at age 65. If she waits one year to start, she'll have $3,100,621--that one year $5,000 delay costs her $230,765 at retirement! If she waits five years to begin, she'll end up with only $2,321,986!

Now I know the market has been a HORRIBLE, but investing is still the way to make money.

I know I should know more about investing and have already met with a financial planner. I need to get her back here though!

Suze Orman (nazi money mama) says right now, in this recession you should be:

Living on half your income and saving the rest.
Fund an eight month emergency fund and just pay minimums on credit cards.


Dave Ramsey says (this may have changed a little since the recession):

Baby Steps: Don’t start investing prior to completing Baby Step 3.

1. $1,000 to start an emergency fund.
2. Pay off all debt using the debt snowball.
3. 3-6 months of expenses in savings.
4. Invest 15% of household income into Roth IRAs and pre-tax retirement.
5. College funding for children.
6. Pay off home early.
7. Build wealth and give! Continue to invest in mutual funds and real estate.

What's your financial plan? Do you have one?
xo The Mrs.

Money Week Continues! Go Landon! And Yes I am a TIGGER!

Landon is learning first hand from me, about compound interest.
Here we are opening an account for him with some of his birthday money. Check out the bank employee. It's not your money! LOL!
Even my cute bloggy friends are getting involved! Bringing their kids to the bank and everything! Displaced Southern Preps Posts about her daughter wanting to go to Florida are the funniest things ever!!!


Yesterday I took Landon to his pre-op surgery visit.

He is going to have another surgery on his arm. Possibly two this month. He has been through a lot but he is such a sweetheart. He sailed through his appointments.

I just think, like Randy Pauch (who I cannot stop thinking about), I am a Tigger. I am happy. Landon is too. We aren't going to let this get us down!






Are you a Tigger? or An Eyeore.


I am not going to be sad about our surgery coming this Wednesday. I am living in hopeful expectation that this will only make his arm and ultimately his life, better.

Money- Is it all in your head?

Today I sat for two hours waiting for my car to be serviced, and I caught a rerun of Oprah. It was the show about people who had received windfalls of money and their lives had gone to hell.

To tell you the truth I never believed the "money doesn't buy you happiness" thing. I have had money in my life and let me tell you I was overjoyed. I have been on safari to Africa, stayed at some of the finest resorts in the world, and eaten meals at restaurants I will never forget (including some just recently in Sr.John).

I think the most fascinating thing about money is your relationship to it. On the Oprah show they featured a homeless man who had received $100,000 from a benefactor and they made a documentary about what he did with it. What he did was, he blew it all and has nothing. Why? Why would a homeless man who was not on drugs, passed a psych evaluation and was a good, honest person ruin his future? One reason: he thought the money would make people respect him, and that he would finally like himself.

This is not what he said of course. What he said was he blamed society, and that people took advantage of him. He got that money and bought a friend a car, bought himself a car, lent money to everyone in his family and spent it all. All for the sake of being "liked". Oprah called him on the "society blame thing", wasn't it society that gave him $100,000? He said his life was worse and he wished he had never gotten the money.

How you view yourself, is how you will treat money. Hate yourself and you will spend every cent you have. Love yourself and you will save. Simplistic yes. But I'm right. Money will not make you like yourself more, or give you the confidence you've been lacking. You can't buy friends or family with money (at least ones who truly care about you). Money is there for security. It's your insurance policy, and it does not define you. Having discipline with your money, knowing where it's going and how it's spent, is healthy. Continuing to spend it and ignoring your problems is not. I have been there.

Thanks for joining me for money week. You made it through like a champ!

Finance Week-Getting Out Of Credit Card Debt

Credit cards are evil. If you don't believe me rent Maxed Out. I am serious. It's scary.

If you're not in debt, you are my hero and probably only one of ten people in America. If you are in debt, hello, this is for you.



Here's how you get out of debt, FAST, in three easy steps!

1. Get a number. How much debt are you in? Look at all your balances and know where you are. This might help you to stop using credit cards. (maybe not) Also find out the minimum payment due and the current APR.

2. Call credit card companies to get your rate down. They may reject you one week and do it for you the next so stay on them no matter what they say. Ask to speak to a supervisor, tell them you're thinking about closing or switching to another card. be a bully! You can even speak to the supervisors supervisor (called a manager) and see what you can get! Write everyones name down that you speak with so you can keep track.

3. List all credit cards, amounts owed and APRs on piece of paper. Pay off one card at a time, closing ones you don't need, and keeping a few. Systematically paying them off will make you feel great! To know which to pay off first do a little math. Take the total debt and divide it by the minimum payment. This will give you a score. For instance I owe $108.41 to Victorias Secret (gotta make Hubby happy!), and my minimum payment is $10. Gives me a score of 10. In other words it will take me 10 minimum payments to pay it off. The lower the number, the sooner you will pay that card off so it goes on top of the list of cards to pay first. Get it? List all the scores lowest to highest and systematically pay them off! Of course if you lower your rates you'll get more bang for your buck!

Some people say to pay off the highest interest card first but you don't get the same thrill because it won't happen as fast. This method above is from David Bach, author of Smart Couples Finish Rich among others!

Finance Week- Show Me the MONEY!

We have all probably heard about the "Latte Factor". Theory is that you buy a latte every day, maybe a muffin, maybe go to Marshalls (had to throw that in), there's the extra money you should be saving. It's hard to live with no lattes, but maybe a limit would be good.

Even better than the "Latte Factor" is the "Pay Yourself First" plan. This is the key to saving and not having to be disciplined! Hooray! Here's how it works: Whatever you start or currently have whether it's an IRA or a money market account or whatever, set it up so that the money automatically comes out each month. For me my IRA is set up to take out money from my checking account every two weeks. Guess what? I don't even miss the money! That's why I just upped it this week. This is a must and I am telling you it works. Pay yourself first before you pay bills or Uncle Sam!

Here are a few other suggestions and tricks I found out about to help you find more to save.

1. Gasbuddy.com--With gas prices going insane find out the cheapest place to buy it! Go to this site and plug in your zip code!

2. Meal planning. Go to Organizing Junkie and learn all about Meal Planning Monday. I have saved so much in groceries sticking to the plan!

3. Home phone and Cell? Some of our friends have dropped their home phone lines all together! Saves you money!

4. Credit Cards- Get rid of you debt and save a ton of cash. Until then go to Bankrate.com and find the lowest rates on every type of loan including credit cards.

5. Start Paying Cash- Spending hurts when you don't take out the plastic.

What are your saving secrets? How do you find money to save?

Finance Week- Who Wants To Retire a Millionaire?

Hubby and I have had money struggles and continue to. The older we get, the more expenses there are. Add kids to that and whammo. Most young people (okay I'm not that young but I'm still in my thirties!), either have no clue about saving or putting money away, or just think they can't because they don't make enough. The truth is, the earlier the better! When you're young and haven't started a family it's time to start saving! Get to it!!!!!

Hello compound interest? It's me The Mrs. Why the hell didn't I start saving sooner?

Mellody Hobson (love her) was on GMA a couple weeks ago and had some fabulous advice. Here's her answers to the big burning question:

How can I retire a millionaire?

At Age 25

At 25 years old, if you can save $75 a week, or $300 a month, in a mutual fund with an average return of about 8 percent, you would have $1 million by the time you turn 65.

The first place to start is with your employer's retirement plan, such as a 401(k). While I always advise maxing out your contributions, this is not always possible, so at a minimum, be sure to contribute enough to qualify for your employer match. According to the Profit Sharing/401k Council of America, about 78 percent of employers offer some type of match.

Not taking advantage of this is the same as passing up free money. If you don't have an employer retirement plan, definitely invest in a Roth IRA if you meet the income requirements, or a traditional IRA. Twenty-five is also the age to start an emergency savings fund (with three to six months of living expenses) as well as to pay down any outstanding debt and be sure to avoid building up new debt.

At Age 35

If you haven't saved anything yet, you will need to sock away $671 per month (also in an investment earning 8 percent annually) to reach $1 million by 65.

Again, first and foremost, take advantage of your 401(k) plan. If you can, contribute the maximum, which is $15,500 in 2008. You also may want to consider other savings vehicles that offer tax advantages, such as your home state 529 plan if you have kids.

That said, keep in mind, your retirement savings must take priority over saving for your kids' future education expenses. There are multiple options for your kids to finance their higher education, and they will have their whole careers ahead of them to pay off any loans. But, as I have said many times, there are no scholarships for retirement.

At Age 45:

If you're starting from $0, you will need to save $1,698 per month (again at an 8 percent annual return) to make $1 million over the next 20 years. While the pressures on your finances may be greater at this age with growing children and aging parents, it is critically important to keep at it and save for your own future.

If possible, contribute the maximum to your retirement plan and also invest in an IRA. The bulk of your savings — or 80 percent — should be in stocks, with the remaining 20 percent in more conservative investments like bonds.

While I am biased toward stock investments, I have always counseled diversification across different types of stocks, which helps to mitigate risk. To that end, make sure you are not overweighted in company stock and that your equity diversification is made mutual funds instead of individual securities.


At Age 55

If you have no money saved, it becomes very difficult to get to $1 million in 10 years, but you can do it if you save $5,446 a month in an investment with an average annual return of 8 percent.

In addition to maxing out your contributions to your employer-sponsored retirement plan, also take advantage of catch-up contributions, which allow you to contribute an additional $5,000 per year. At this stage in your life, your investments should be 75 percent stocks and 25 percent bonds.

If you are starting with little or nothing in savings at this point, you definitely should consider working past 65 years old. Not only will your retirement savings be greater, but your Social Security benefits will also be higher.

Okay that was the real deal but you needed to know the facts. Don't get scared, just make a plan (we'll get to that later in the week) Who's ready to start being a millionaire? Tomorrow, we'll look for ways to cut back so you have more money to save!!!

Coming Clean- Finances

I'm so happy I shared what was going on...coming clean feels pretty good. Your comments are so helpful to me in sorting this all out. I know I'll get through it.

Wait, money stuff too? Crap. And I thought the health one was bad!
I have mentioned before that medical bills and living in an expensive place are not helping me. I have tried to create a budget several times to no avail. Hubby and I HATE going over bills and such.
We get depressed so we'd rather avoid it. We do save a little but not enough. This is why I called a financial planner. She is someone I know from church and she works with people like us. She is going to go over everything from life insurance to budgeting. I am finally going to face everything and get a hold of my finances.

How are you with money? Saver? Spender? Do you have a budget? Are you swimming in dough? Barely making it? If you feel like you don't want to leave your name just comment anonymously. I get it! This is a tough subject!

I know money is sort of a tacky subject but I'm coming clean remember!!??