Financial Challenges Support Group

my accountant is very good he wants everything to the penny receipts everything ..the downside is .. I do find it embrassing when got into a financial mess..he sees everything.but one good thing although in a mess Im slowly geting through it so in a way like you check things more..than I ever have..spotted someone taking out a payment when they shouldnt have..It is stressful when someone does not pay up on time or trys to pay less and youre trying to balance everything.

Bill,

What other Quicken tools do you use? I have used Quicken for many years (15+).

As you may be aware, I recently admitted that I have a unhealthy relationship with money and credit. It took what I like the call a "Debt Intervention" with my sister and brother-in-law to realize just how F'd up my financial situation was. Lots of CC debt, pawn loans, installment loans, paying out the nose interest rates. 2 months past due on the mortgage and student loan. No savings, no retirement, basically financially fucked.

And all the time I was digging my way into financial hell, I was logging every purchase (cash, credit or otherwise) in Quicken under the false illusion that if I knew where all my money was going, that meant I had control over my spending habits. My sister pointed out that putting everything in Quicken isn't financial management, it is just record keeping. Just because I knew how much I spent on toilet paper last month doesn't mean I have a good grasp of my overall financial situation.

To that end (get work toward good financial situation, no debt, emergency savings and retirement savings accounts), my Debt Rehab team and I came up with "The Rules":

1. Cut up credit cards. If you don't have cash to buy it, you don't buy it. PERIOD. If you want it, SAVE for it. No new loans, etc.
2. If you chose to pawn it, you have sold it. No paying off and redeeming ticket at outrageous interest rates.
3. SAVINGS IS A MANDATORY (NOT DISCRETIONARY) ITEM. Just like the mortgage or rent.
4. Set a budget and stick to it. This is where Quicken can be helpful. Use the "Budget" tool, create a budget based on categories and track how well you stay on budget. There are many website that show the suggested % of take-home income for each category. Try Dave Ramsey's site or www.powerpay.org. As you monitor your budget, you can see where it needs to be tweaked and can find additional cost savings opportunity.

I have been doing this for only one month now. I have paid off 1 credit card already. I have opened a savings account. My mail box isn't stuffed with past due notices and overdraft notices from the bank. I actually look forward to paying bills because I am one step closer to my goals as I pay off debt and stay within budget. What a great feeling!

In the name of complete disclosure, I have to note that my Debt Rehab team did loan me the money to get my stuff out of the pawn shop and pay off my installment loans that were eating about 15% of my take home income. I do realize this may not be possible for all. I am grateful that I have family who are in a position to do this. Of course, that loan payment has been included in my budget.

I wish everyone well on their path to financial freedom. I will continue to update you on my progress and share any new ideas, pointers I have run across.

Good luck to all!

Great Post scarlet.. I am glad to see you are doing much better with budgeting and getting back on your feet...I cant say I love or dislike Dave Ramsy but I definately have to say you cant hang on to every bit of his words..I think ppl need A CC to build credit and to live life a little bit.. Not all of us make a million and can go throw cash to do all the things he does do...Sometimes I see him as a sayer, that tells everyone to do as he says because that is his life but I personally at the end of my life want to be able to have lived life fully and if it means having a little debt on a credit card then so be it..
Its all about living life responsibly.. Enjoying life the best you can without going overboard..Experiancing the bumps in the road and finding the golden path every now and then...

I agree new. I mean, who has 10-15% to budget for charitable giving. If I could afford to do that, I wouldn't be in the mess I'm in.

I DO like Dave's "snow-ball" method of debt reduction/elimination.

Charitable giving...Hhhhmmm would that be to the church you went to for over 10 yrs only to go to a revival and find your pastor making out in a alley way with some woman who was not his wife..and then feel all you did was fund his home for the last 10 yrs? I kind of felt burned after that one..My charitable giving now is limited to the homeless I may see on a street occasionally..
Sad but true..Or to my childrens schools. Now that I am considering putting my children back in public school I cant even see donating to them when they already get enough. The district school sup. makes over 150,000 on average while education goes to crap and ppl are trying to pass more taxes to go to the schools but it never ends up in the teachers salaries or supplies so why contribute more????
Just who would you contribute to even if you had the extra means??

I can think of couple mental health orgs that would get charity from me for all they did in helping me!!! Other than them perhaps some AA stuff that isn't AA but is related... As for churches not one who tithes at all but thats me... I might give to ymca too

I sold turntable today that was replaced by USB turntable to let my burn cds of my vinyl LPs

I bought new at jcpenney.com for $60 +$7for extended warranty for yr more
Sold old one for $65 my loss $2

Great news, Bill!!