Domestic Deeds

The Deeds Family Take on the Total Money Makeover

30 Dec 2011 3 Comments

by Kirsten Deeds in Family Life, Marriage Tags: adoption, balance, Dave Ramsey, debt snowball, Family finance, family life, parenting, total money makeover, working mom

At the end of 2010, Jason and I had come to a place where we were in need of some much needed stability. When we had originally planned out our lives together 8 years ago, we had envisioned me working into management, Jason getting his degree in teaching and then us having kids. By the time babies were in the picture, we expected we’d be in a position for Jason to stay home until all the kids were in school.

However, when two wonderful little boys walked into our lives, this entire plan fell by the wayside. As the adoption process started, our clocks started ticking to have our third child closer in age to Anthony and Ethan. Two years later, Keira was born. While we were grateful to have all three of these wonderful children in our lives, we weren’t financial prepared for what it took to raise 3 kids. We had a large house with large bills, large student loans still sitting out there, and a car loan for a car that would fit the five of us.

In December of 2010, with the Christmas bills fresh on my mind, I sat on a plane to a work trip in Europe, reading the entire Total Money Makeover from cover to cover, making notes as I went along. I finally felt like we could get our plan back on track. When I got home, I shared everything I learned with Jason and we both eagerly agreed that 2011 would be the year we got things under control.

As of December 30, 2011, we may not have completely succeeded. While we were on track for most of the year, we ended up falling into old habits by the end of the year. Budgeting seemed to take up too much time so we threw that to the side. Envelopes were difficult with bank runs, so we threw that to the side.

But this post isn’t about what we didn’t do. This post is about what we were able to accomplish.

In the first five months of the year, we hit it hard. We budgeted every dollar. We had envelopes of cash for each budget line and didn’t overspend. We rolled any extra cash into the first debt, then the second, then the third…. until finally, we had paid off five of our credit cards and taken a huge chunk out of our last one.

We finally got to the point where Jason could stay home with the kids, slashing out childcare expenses and severely cutting the amount of money we spent eating out now that Jason was home to cook. Not to mention the amount of stress that was cut out of our lives worrying over debt.

When my brother announced his engagement in early summer, we were able to purchase plane tickets for all five of us and go to California with cash – something we never could have done before. And when finally in October, a month before our vacation to California, my car broke down (of course, a month after the warranty ran out), we had our emergency savings to save the day without having to put a dollar on a credit card.

It’s easy to feel discouraged at this time of the year, when the Christmas presents were small, the wallet feels completely pinched and our overall plan has been thrown by the wayside. But remembering everything we accomplished in 2011 has me eager to start 2012 with renew vigor to take down the remaining debt on our plates.

It’s time to roll up our sleeves, again. 2012 is going to be a great year.