Help a Newbie out!!! PLEASE

[rhettsmommies]

HI


My name is Lee I am 30 years old and I seriously feel like I have no idea how to safe money. I was never really thought growing up how to safe or how important that would be when I grew up.

I made some crappy decision growing up which led me to having debt and a ton of student loans.

I now am married to my partner who would much rather ignore the debt she has and I am simply tired of it. I told her 2014 will be the year everything will change but I am clueless as to how I go about it...how do I start? How do I go about making a budget!


I would be grateful for some insight & a lot of HELP!


Thanks
Rhettsmommies (Lee)

[disneysteve]

Welcome to the site. I think the most important first point is that the two of you must take this on together. It won't work if one of you is trying to fix the problem and the other isn't. It also won't work if you are dictating everything to her.

I would strongly recommend that you pick up a copy of The Total Money Makeover by Dave Ramsey and both read it. That may be the motivation you both need to change your ways and work together to clean up the mess. Dave Ramsey also has a course called Financial Peace University that is offered all around the country, usually in churches, that teaches the system firsthand. You may want to consider going through that together.

There are many, myself included, who will criticize parts of what Dave Ramsey teaches, but I think his system is sound overall and can really help couples who simply don't have a clue where to start or how to get motivated and work together.

[cschin4]

Welcome. The main thing to do is to start educating yourself about personal finance. Start to gain an understanding. But, at this point, you don't need to bother with understanding Roth Ira's and stuff like that.
For me, the turning point was learning to HATE debt. When I really decided I HATED debt, that is when I personally took control of my finances. When you HATE debt so much that you would rather drive a crappy paid off beater car than a sparkling car that you owe tons of money on, it will change your entire approach to money. It isn't about "saving". Managing money is about how you THINK about money overall. It is a mindset about money. Once you educate yourself and begin developing a good mindset about money, then it will become easy to understand what to do with your money and how to make it work for you.

But, first, you need to take a REAL and hard look at your finances. Start by looking at all your monthly bills and expenses. Keep track of what you spend for the next 2 months including everything from buying a candy bar to your student loan payment. And, look at what you really bring in, your net, not your gross. And, look at areas where you are overspending and can cut and begin working and you will get there.

[disneysteve]

first, you need to take a REAL and hard look at your finances. Start by looking at all your monthly bills and expenses. Keep track of what you spend for the next 2 months including everything from buying a candy bar to your student loan payment. And, look at what you really bring in, your net, not your gross. And, look at areas where you are overspending and can cut and begin working and you will get there.

I agree. The first step is to really identify the problem. How much do you earn vs. how much do you spend? Also, sit down together and make one unified list of all of your debts with the outstanding balance, the interest rate, and the minimum monthly payment. Sometimes just seeing the total debt all in one place is enough to motivate people to take action.

[cschin4]

And, be aware that doing this seems very intimidating. Especially if you have more going out than coming in. But, this is the first step. And, you CAN get there because we have all been where you now are.

[Augustine]

Welcome Lee. You can't really blame yourself for making mistakes out of ignorance especially since our money habits are as a result of what we observed growing up, or what we were told by those who really didn't know any better.

At least you have made the decision to do something about it.

Managing money is about how you THINK about money overall. It is a mindset about money. Once you educate yourself and begin developing a good mindset about money, then it will become easy to understand what to do with your money and how to make it work for you.

This is a very important first step that will help you deal with the long-term issues as opposed to quick fix solutions to symptoms of a money problem. Stick around this forum and you will get some good tips.

[snafu]

Welcome to SA. Congratulations on recognizing the need to get rid of debt. I know you and partner can begin making small changes and those successes have potential to make it exciting to make more significant changes. Part 1: write out the inescapable monthly costs like rent/mortgage, utilities [heat/electric/water/sewerage], land phone, cell phone, auto insurance, auto operation [gas/oil chg./fixes], home insurance, food, clothes, entertainment, restaurant/take out/fast food, personal care [hair/mani/pedi/etc] + other stuff you both spend. [you may already have this on computer].

Part 2: DS nails it when he explain you need to to write down income from all sources and all debt like balance on SL, Interest rate and Payments, CC Balance, Interest, Payment, Car Loan[s} Balance, Interest Payment repeating for every single debt. I suggest taking it one step further and write down how much you pay in interest in each account in December and multiply it by 12 [just use the calculator feature on your cell phone] to get an idea of how much interest has cost you 2013.

If you'll share the results, many of the knowledgeable participants can offer practical suggestions to help you and cheer your every success.Many of us have been in your shoes and understand the problems.

Wishing you progress in 2014.