An Overhaul

I am turning 30 in a little over a year, and in a lot of ways I'm not exactly where I thought I would be. Some of those things, I can't control...but others I can. I am putting together a "Before I'm 30 list", which I will share sometime soon. I have already started on a few things, though, and so far some of them are going well.

As I have mentioned, I have been training for the Broad Street run, and with only a little over a week left, I am starting to think I might actually be able to do this! I did an 8 mile run earlier this week and survived! I ran 6 miles this morning, and even managed to do the first 3 without stopping! When I started training in February, I couldn't even do 1/2 a mile before stopping!!! I don't have any delusions about running the entire 10 miles without stopping (at least not this year), but I think I might be able to reach my goal of finishing the 10 miles in 2.5 hours (which is a 15 min. mile average). We'll see though!

Along with my running training I have been seeking to overall improve my health. I have been watching what I eat, lifting weights, consistently attending my spinning class, and training for the Broad Street, and in just under 3 months I have lost close to 20 pounds!! I don't have a weight loss goal, just a health goal; but getting healthier for me will include weight loss...so I am on my way to my goal! The numbers I AM watching is my body fat %, and its on its way down to a healthy number. I am so excited!!

This all started with a one month commitment. In the middle of January I made a one month commitment to watch what I eat and exercise regularly. I figured in a month I would figure out if this was a lifestyle chance I could actually make, or I would discover that its just never going to happen. Thankfully, I found out that I not only CAN accomplish this goal, but I WANT to. I feel really great!!

So, now that my health is getting some attention, I have decided to look at other parts of my life. Next in line is my finances. My finances are not nearly as off balance as my health was, but they still need some attention. I have always lived under a budget, but in the last few months I have gotten away from that. God has been very good to me, but I am feeling called to better stewardship. Of course, adding Bonita to my household has also highlighted my need to get back on track with my money.

This time, I am making a 6 month commitment. I don't think a month is enough time to really get on track in a sustainable way, but I think I can do it in 6 months. Here is what I am doing:

First, I reorganized my monthly budget. Bonita has added some expenses (utilities have increased a little, I added her cell phone to my plan, and she does eat sometimes, haha), so I changed some numbers to reflect that. Since I have always lived on a pretty tight budget, this means that some money had to be taken away from other things.

Second, I am getting rid of my credit card, completely. I have been reading up a lot on taxes, budgeting, etc., and I feel like I have learned a ton; mostly from Dave Ramsey (whom I HIGHLY recommend!!). I had been fooled into thinking that I wasn't in debt because I pay off my credit card each month. However, if I run into trouble and don't get a paycheck one month (or even get paid less because my support is struggling), then I will immediately be in debt. By eliminating my credit card, I will only spend what I make and nothing more.

I do plan to hold onto it (although I am actually going to ask for a lower credit line...the higher the credit line the worse I look on my credit report) simply because some companies (like rental cars) will only let you use a credit card.

In addition to my monthly expenses, here are the things I am adding:

1) An emergency fund. I am hoping to get this fund to at least $1000, and soon, so I won't have to rely on a credit card if I run into an emergency.

2) An actual savings account. Dave Ramsey suggests having a savings account that has enough money to cover your expenses for at least 3-6 months. I have opened a high yield savings account (that I can easily access without fees) to begin to save here. This account is NOT connected to my checking account, so I will only tap into it when necessary.

3) An ESA (Education Savings Account). Don't tell them, but I am starting an Education Savings Account for Bonita and Linda. Its tax free, I'm able to contribute up to $200o a year (doubt I'll get that much, but even half would be amazing!), and it can ONLY be used for education, and only by them (so their family can't even touch it!). I am not going to tell the girls about it until they start looking at college, but hopefully it will be a big encouragement/help to them!

The plan is, in 6 months, to have all of these accounts healthy and earning money, as well as my bank account consistently above $0. :) This is going to require some hard work, and I have a plan!

Here is what my plan looks like:

These are my envelopes. Dave Ramsey suggests putting cash in each envelope, so when the cash runs out, you stop spending. Living in Kensington makes me a little wary of carrying around a lot of cash, so I will be keeping receipts in the envelopes. I will track the receipts on the outside of the envelope and subtract each receipt from the total. When the number gets to 0, I will stop spending. Here is an example:



I also have a spreadsheet that I will fill in at the end of each month that will automatically highlight numbers in red when I go over my budget and green when I am under, so I can easily see where I need to make changes, and how I can make them.

I really plan to stick to this, which means I will need to get creative with my cooking, and won't be going out very often in the next 6 months. Thankfully, the weather is getting warmer, so there are a lot more free/cheap ways to entertain ourselves.

I am also getting Bonita in on this. She really wants a bike and I'm going to have her earn it...but not in the way she is used to. She gets an allowance from her mom (part of which she uses to pay for her cell phone), and she has a list of things she can do for me to earn money. So, she has income and expenses; so we're going to create some envelopes for her and get her saving toward a bike.

I am going to be very open with her about how I spend my money (except for the education fund) so hopefully she can start to learn that I'm not rich, but I do manage my money. I really want her to learn money responsibility...

She has been watching me as I have started eating healthy and is following suit (we both constantly look at calories, fat grams, fiber, and ingredients). She has learned a lot about how she needs to take care of her body. I'm hoping this budget stuff will stick with her too. If she can learn to take care of her health and to manage her money, she will be light years ahead of most of the people around her!!

Its not going to be easy for either of us, but we're going to try!

If all goes well, by the time I turn 30, both my body and my finances will be very healthy!

Now, onto my spiritual life...