Totally different subject but I had to write out a short testimony of our experience in the Dave Ramsey financial peace course we took back in the fall. I thought I'd share it here too...
Before taking FPU Ben and I thought we were doing pretty well with our finances so we weren’t sure what we would get out of the program. I’m so glad we did because we truly have financial peace now.
Ben works for Geico and has a base salary but it’s not enough to cover our bills. We depend on bonus’/commissions that he might get a few times a year and save them to cover the monthly expenses his salary does not. This has always worked for us but has on many occasions brought a lot of stress since we never knew when another bonus was coming and weren’t sure if we could spend money we had saved on simple things like going out to dinner or buying clothes. When unexpected bills came in the mail we were never prepared for them.
A few things we took from the course were having a 3-6 month emergency fund. We currently have enough saved to cover all our expenses for four months. Once we had that in place we already felt such freedom in knowing that if Ben were to lose his job or not make bonus we would be okay for four months.
Separate from our emergency fund we now have a “sinking fund” which is a 3-month savings account that covers those monthly expenses Ben’s salary does not. This way we don’t have to use our emergency fund.
Finally, we have a 3-month “spending money fund” which is a small amount of spending money we can use to eat out, see movies or take the kids fun places. Now there is no stress or guilt in doing these things.
We budget for just about everything to birthday cards/gifts, haircuts, oil changes, vehicle registration fees, etc. and we always use cash. We have no debt, no credit cards and no car payments. My only regret is not taking this course sooner!