Relief Society Activity: Budgeting & Money Management Recap

Thank you so much for everyone who attended our activity last night. I don't know about you but I learned so much and have a lot to think about as far as getting my finances in order. Melody did a wonderful job sharing her experiences with us, I'm so thankful that she was willing to come and speak to us. She shared many practical tips and the spirit was strong as she testified that our Heavenly Father will guide and direct us through the process of becoming self reliant. Here are a few of the things she shared with us:

Baby Steps (Dave Ramsey)

1. $1000 emergency fund- as fast as you can!
2. Debt Snowball- pay off all debt using the debt snowball (similar to "One For the Money")
3. Fully Funded Emergency Fund (3-6 months of expenses in savings)
4. Retirement- invest 15% of household income into both IRA's and Pre-tax retirement)
5. College Fund- College funding for children
6. Paid Off Mortgage- (pay off home early)
7. Build Wealth & Give (invest in mutual funds and real estate)

Other Ideas

1. Spending Diary- Write down everything from a gumball, coke, etc... This is a good way to see where your money is going.
2. Review Interest Rates- credit cards, cars, mortgage, etc...
3. Shop around for the most inexpensive insurance quotes
4. Debt- 70% of America is in Debt, $9300 is the average balance on credit cards, American homes have an average of 8 credit cards/home. GET OUT OF DEBT!!
5. Dave Ramsey offers classes- They cost $99 for a lifetime membership. You receive his books and other supplies. It includes the children living in your home so they can go through the classes when they get older. It is a 13 week course called Financial Peace University. Go to his website, here to find out when classes are being offered. You can also check out his CD's from the library.
6. Smart Women Smart Money Conference- August 19- It is free but you must register- go here, for more information.
7. AAA Fair Credit- http://www.faircredit.org/ will work with you for free

Dave Ramsey Tape

1. Quit borrowing more money (Plasectomy- cut up your cards)....remember that these snakes bite!
2. You must save money. Start with the $1000 Emergency Fund
3. Prayer Really Works (Phone Home)
4. Sell Something! (This is a good way to build your Emergency Fund or once that is in place....start paying off debt).
5. Part-time job or Overtime!!! Temporarily get another job if needed!

Budgeting

1. Come up with a budget
1. Needs
2. Debts
3. Savings
4. Wants
2. Use a Cash Only budget
- Only use debit card for gas
-When debit cards are used the average homes spend 16% over their budget
3. Chart Spending
-Spending Diary
-"The best way to double you money is to fold it and put it in your pocket."

Additional Ideas

-Mortgage: When thinking about upgrading your home. Try to figure out what the difference between your current mortgage and new mortgage will be and try to live with the new total by putting the additional money in a savings account. It will also help you make sure you have enough for blinds, landscaping, etc.. when you move in.

-http://www.financeintheclassroom.org/ activities for kids of all ages!!

-Zions bank pays kids for A's on their report cards when they have an account there.

-Kids: Have a touch account and a No-touch account (when kids add money to account tell them you will double it).

-"Savings should always exceed spending!!"

-"Live like no one else, so you can LIVE LIKE NO ONE ELSE!"

-2 Ne. 9:51: "Wherefore, do not spend money for that which is of no worth"
-Prov. 27:24: "For riches are not forever: and doth the crown endure to every generation?"
-Mormon 8:37: "For behold, ye do love money, and your substance, and your fine apparel, and the adorning of your churches, more than ye love the poor and the needy, the sick, and the afflicted."

Melody has a weekly blog you can follow on Imagine a Happier You. She is a great writer and shares many of her experiences of following many of the steps listed above. She also shares experiences she has had with her kids. Go here, to read her blog.