Category: Debt Free Journey

Current projects & pausing our debt snowball

Posted on by Kelley Elmore

Our debt snowball was finally picking up speed this past spring. We had our emergency fund in place, were paying things off, and actually seeing some progress. Then, we decided that if we were going to get into a better school district before Aiden goes into middle school, we needed to sell our house in the next three years. This meant that we needed to do some pretty serious upgrades on the house.

During your debt free journey, it is totally acceptable (expected even) to temporarily pause your debt snowball. Things come up, situations change, it’s not always possible to keep with the same momentum. Temporarily pausing is fine, just make sure that you never lose sight of the end goal. The problem is that once you slow down, it can be difficult to get motivated like before. That is exactly what happened with us.

This is what we started with. Not bad. Not ideal.

The hubs decided that this would be the year that we would finally move the pool. When we bought our house, it had a huge 32’x16′ above ground pool with a large deck. The problem is that it was in the back corner of the yard which took up a lot of space in the backyard. Brian has always wanted to move the pool closer to the house, bury it halfway in the ground, build a deck connecting it to the house, and add french doors so that you can step out of the house and directly onto the deck. We decided this was the year to do it meaning that we’d have to pause the debt snowball in order to cash flow the projects.

This is where it started getting scary.
After the fourth weekend of getting rained out we figured it would be best to leave this part to the professionals. It cost us $2,000 but they had it installed and filling with water in four hours.

Like always with house projects, things came up that we didn’t expect. Of course our exact pool had been discontinued so we had to have parts fabricated and rig a few things. We had to rent equipment and call in all of our free labor (aka: friends). We ended up using our $1,000 “starter emergency fund” and borrowing $2,000 for the actual installation but it’s done… for now. The pool is in and we are able to swim in it, we just don’t have a deck quite yet.

Like my drawings? I’m basically an architect now. NBD.
Child labor is free, ya know!

Now, we are working on taking down the old deck, which luckily doesn’t cost any money. In two weeks we are having our roof replaced. Insurance is covering it but we had to pay the $1,000 insurance deductible and the additional $1,035 for the upgraded shingles because… Brian. *insert eye roll here* I don’t want to pay the $2,035 but it is a heck of a lot less than the $10,000-$15,000 it would of cost us out of pocket! Once the roof is done, we will pressure wash the house and paint it. Then build the deck with the french doors in the not-so-distant future but there’s no rush. This (besides some very minor landscaping) is all that we really need to do before putting the house on the market and we have three years before we need to do that.

All of this to say that I am ready for the “money hemorrhaging” to slow down and for us to get back to making headway on our debts. I am going to get SERIOUS about paying off as much as possible so that we will have less money going out each month when we go to buy our next place, since it will be a higher mortgage payment. More House = More Money.

Best Weeknight Dinner Hack!

Best Weeknight Dinner Hack!

Posted on by Kelley Elmore

When it comes to weeknight dinners, I have to make it as easy and planned out as possible. If I work all day and then have to decide what to make and run by the store, I will waste money on take out most of the time. This simple trick will help you save money and shorten the actual cook time, giving you a base for at least three different meals. #yourewelcome

Before I leave for work Monday morning, I add the below items to my crockpot and set it on low for 8 hours.

Ingredients:

  • Pack of boneless/skinless chicken breasts (6-8 breasts)
  • 1 cup chicken broth
  • 1/2 teaspoon of salt
  • 1/4 teaspoon pepper
  • 1 teaspoon of garlic & herb seasoning
  • Reynolds Slow Cooker liner

The key is the slow cooker liner. If you use one of them, you won’t even need to scrub the crockpot later! Just wash the lid. Add all of the ingredients, set it on low, and forget it for 8 hours.

Then, you’ll have this! Nice, moist, flavorful shredded chicken to use for a few meals. I usually separate it into three different Tupperware containers to use for different dinners. It’s great for soups, casseroles, or you can add it to salads throughout the week. When you come home from work, you can make pasta, add Alfredo sauce and the chicken and you have chicken Alfredo in no time! Another night you could make my favorite Ritz cracker chicken casserole (pictured below). Follow this link for the recipe: http://www.littlesliceofimperfection.com/?p=1599 The possibilities are endless!

Not exactly low carb, but it’s delicious!

I hope this helps you to simplify a few weeknight dinners so that you have more time for the things you enjoy instead of slaving over a stove every night!

6 MONEY CONVERSATIONS TO HAVE WITH YOUR KIDS IN 2019

6 MONEY CONVERSATIONS TO HAVE WITH YOUR KIDS IN 2019

Posted on by Kelley Elmore

I can’t tell you how many times I have been at the store and Aiden has asked begged for a toy, candy, anything. I usually tell him “no, because it’s not in the grocery budget”. A few weeks ago, he was pleading with me to buy yet another pack of Pokemon cards when I blurted out, “We don’t have the money!” To which he quickly replied, “Okay, but you have your card.”

I knew then that we needed to have a serious conversation about money. Since his attention span is so short at this age, I thought a few mini talks would work best, instead of a full blown lecture. Below are the mini money conversations we have had so far. I’m sure there will be plenty more in our future as he grows and matures, but this is a pretty good start.

  1. Budget. In kids’ terms, explain what a budget is and how it can help the family. I don’t agree with talking about money “issues” with kids. Your kids shouldn’t know that you are afraid that you won’t be able to pay your bills this month. We have no idea how they internalize things and they have enough stress on them with kid stuff. They don’t need to worry about adult stuff they don’t even understand. But I don’t see any harm in explaining the fact that a certain amount of money is set aside for groceries, gas, etc. and using more than what you’ve budgeted for can take away from the “fun money”.
  2. Debit Cards. Tell them that the debit card isn’t a magical piece of plastic that always has money on it. Explain that the money comes from a bank account where you store your cash. Yes, they may imagine it like Scrooge McDuck’s vault of gold coins, but at least they can visualize that it is actual money being used when you swipe your debit card. They may very easily think that it works like the gift cards that they have been given in the past. Free money, essentially.
  3. Credit Cards. Explain the difference in a debit card and a credit card, and in simple terms, the interest that accrues. Let them know that if you use the credit card now, you will pay more for it later. This will open a discussion of importance. Is this item worth paying more than it actually costs? Or would it be better to wait and save up?
  4. Work For Hire. I am a firm believe that chores should be done just because you are a part of the family. Everyone needs to contribute and pull their weight. No one pays me to make dinner, so I don’t believe in paying an allowance for putting your clothes away. But, what I do believe in is “Work For Hire”. Whenever I come across something extra that needs to be done around the house, I write it on our dry erase board and the amount I’m willing to pay. (Ex: Wipe down all of the baseboards in the house. $5.00) That way Aiden (and eventually Aubrey) can pick things to do to earn cash.
  5. Gift Money. Set a rule about birthday/holiday money that relatives might give. We have a 50% rule in our house. If someone gives the kids money as a gift, they can spend 50% of it and the remaining 50% has to go into their savings account.
  6. Piggy Banks. Both of our kids have piggy banks in their rooms. When they get full, we empty them and deposit the contents in their savings accounts. We bring the kids to the bank and let them do it themselves. Aubrey is still too small but I let Aiden fill out his own transaction slip. I want him to feel involved and hopefully instill an interest in saving money at a young age. I’m also considering switching out their actual piggy banks for clear mason jars. That way they can see their money stacking up and it may motivate them to take some of those “work for hire” jobs to fill it up faster.
Ever seen a family with an 8′ x 4′ glass dry erase board in their playroom? You have now. Thanks to my husband, the spender.

Thoughts on the future:

. College Savings. If you can swing paying for a college fund for your kids, by all means, go for it. Personally, I feel like it is not a smart idea to be paying on something unnecessary while trying to get out of debt. Yes, we all want to do amazing things for our kids but let’s face it, college funds are not necessary. It would be great for you to help your kids get through college debt free, and maybe you will help in the future. But think about it, once they graduate from college, they go about their adult life. What are you left with? All of the debt that you could of been paying off and even closer to retirement age. Moral of the story: You have to take care of yourself before you can take care of others. Even your kids.

. First Car. When it comes to our kids’ first cars, we are planning on matching whatever they save. That way, the type of car they get will be a direct reflection on how much they’ve worked for it. If they get a job and save up $2,000, we will match it and they will be able to buy a pretty nice used car for $4,000. I think this is a happy medium between making them work for it and just giving them things. Hopefully, I’m not creating some sort of financial genius who is trading stocks and using off shore back accounts and somehow raises $20k before his 16th birthday. Then we’ll be in trouble.

Nobility Leadership Guest Post

Posted on by Kelley Elmore

I had the pleasure of writing a guest post for the Nobility Leadership blog. Nobility Leadership is a company that helps people and organizations reach their full potential by teaching leadership skills. They offer online coaching, one-on-one training, and leadership workshops. Check out the full post below…

https://www.nobilityleadership.com/blog/2019/kelleyelmore

6 Things That Are Keeping You Broke, and What To Do About It.

6 Things That Are Keeping You Broke, and What To Do About It.

Posted on by Kelley Elmore

Not having a budget. Simply put, a budget is a written plan for your money. It gives you boundaries and lets you know when you are spending more than normal on a certain category. It also let’s you prioritize your spending. You decide how much money you want to allocate to each category. You may want less money in your “clothing shopping” category and more in your “entertainment” or “vacation savings” category. You are in control of your money, only when you are in CONTROL. Start your budget now and tell your money where to go or you will spend your whole time trying to figure out where it went.

Food! The quickest way to blow your budget is with food. Whether it’s jumping on the bandwagon at work and ordering lunch out instead of eating what you brought, or swinging through a fast food joint because you are too exhausted from work to make dinner. Those little unexpected spendings that were not budgeted for can add up, quickly. Pick a day during the week (for me, it’s Sunday) and plan out your meals (and snacks) for the week ahead. Go grocery shopping without the kids (and in some cases, the husband) so that you won’t be distracted and can make sure you get the best deals. Then, stick to it! No happy hour with your coworkers, unless you set some money aside in your budget for it.

Keeping up with the Joneses. FOMO (Fear of missing out) is a real thing. It’s sad but a lot of people put themselves in deeper debt just to try and keep up an appearance. They go trade in their perfectly good, be it older, paid off car for a newer SUV because “everyone has one”. Guess what, ladies! A Target purse holds just as much stuff as that expensive name brand bag. And think of how much smarter you are for not going into debt to buy it. Be comfortable with the process. Remember your “Why”. Why do you want to be better off, financially? Is it so that you don’t have to work as much? Or to be able to travel more? Keep that in mind to help motivate you to stay on track.

Relying on credit. If you can’t pay cash for it now, do you really need it? We put unnecessary things on a credit card (that expensive purse, dinner out, a fresh manicure) with plans to pay it off in the future. And if you do pay it off before the end of the month and no interest is added, then good for you! But how often does that really happen? Once it’s on the credit card, it’s kind of like “out of sight, out of mind”. And as soon as you let that payment cycle lapse, interest is added and you end up paying more for it than if you had waited and paid cash. Our society is so obsessed with instant gratification that no one is able to wait and save up for anything anymore. Challenge yourself to wait, save up, and pay cash for it. You’ll appreciate it more in the long run.

Paying the minimum balance only. If you are only paying the minimum payment on your credit cards and/or loans, then you are shooting yourself in the foot every month. That is exactly what the creditors are hoping you will do. Not only are you paying them for whatever you originally purchased, but you are also paying them to essentially hold your debt for you. It’s like lighting money on fire. That is why getting rid of all debt (except a mortgage) should always be your top priority! Use the debt snowball method to pay off your debts as quickly as possible. See this older post if you need a refresher on the debt snowball. http://www.littlesliceofimperfection.com/?p=674

Not having an emergency fund! Even the most frugal, financial savvy person will get a visit from “Murphy” at some point. If you do not have an emergency fund available, you will be forced to use credit, starting the whole cycle over again. Put $1,000 away in a savings account and DO NOT use it unless it is an emergency. Examples of an emergency include, but are not limited to, car repairs, emergency room visit, a busted pipe at home, etc. An emergency is not an unexpected invite out to the newest restaurant.

Stay frugal, my friends!

Don’t let the summer blow your budget!

Don’t let the summer blow your budget!

Posted on by Kelley Elmore

The summer time is all about fun! School is out, there is less structure, vacations happen and it can be very easy to slip out of the good money habits we have developed throughout the year. Yes, this season is a good time to relax and spend time with your friends and family, but you don’t have to go deeper into debt to do so. Below are some of my tips for keeping yourself on track and still having fun.

  • Start thinking about, planning, and saving for vacations in the fall. If you don’t, the summer will sneak up on you and you’ll be putting a cruise on your credit card before you even know what happened. Setting aside a few hundred bucks each month won’t hurt as bad if you space it out throughout the year. You can print out a picture of the beach or hotel that you plan to go to to remind you of what you are saving for.
  • Consider a staycation instead. I have lived in my city for my entire life and I don’t think I have seen half of it. You could Google “fun things to do in _______” and start checking off the list. You can still spend quality time with your family and make great memories without traveling to an exotic island and spending a fortune for a few Instagram-worthy photos.
  • Find comfort at home. Most people think they need to be constantly on the go or else they are not enjoying summer to its fullest. I don’t look at it that way. I think that you can find a lot of satisfaction in staying home, but you should make it fun for summer. Consider getting a blow up pool, some tiki torches, even an old school Slip N’ Slide. Just a few things to make these months special, without feeling like you need to go somewhere all of the time. Bonus points if you have fun neighbors!
  • Throw inexpensive backyard BBQs often. Now that you have made your home “summer special” invite people over. You supply the grill and the blow up pool and ask everyone to bring a dish and their drink of choice. The kids won’t care that they don’t have an immaculate in-ground pool. They will just remember all of the fun they had running around with their friends and watching the dads try to kill themselves on the Slip N’ Slide. You don’t need much to have fun; just food, drinks, and good company.
  • Keep in mind why you started this “debt free journey” in the first place. It was for the freedom of not owing anyone anything. The freedom to not have to work as hard or to not stress about making minimum payments. Make sure your purchases are worth it, because you will be paying for them throughout the year. Literally. And I hate to be the bearer of bad news, but Christmas is only a few months away.

Pro Tip: Buying popsicles and ice cream from the grocery store is close to a tenth of the cost of buying from the ice cream man. Always keep your freezer stocked to keep the kids from emptying their piggy banks every afternoon (and eventually asking you).

I don’t expect you to make huge (if any) progress on paying off debts in the summer. After all, there are summer camps to pay for. But, I also don’t want you putting yourself deeper in the whole so that the kids have something amazing to tell the class they did over their summer vacation. You don’t need an all inclusive stay at a Sandals Resort to make lasting memories.

Stay frugal, my friends!

Why Financial Communication Is So Important

Why Financial Communication Is So Important

Posted on by Kelley Elmore

My husband loves his credit card. Like, loves it. Even if there’s money in the checking account, he likes to use the credit card and assumes I will just pay off whatever he has spent throughout the week. I’m pretty sure this comes from the earlier stages of our debt free journey when his debit card was declined, on more than one occasion. I get it, that’s embarrassing. Now that we have paid some things off and have more breathing room, I have tried to break him of the habit but it’s no use. Instead of continuing to argue about it, I keep a close eye on the credit card account and try to pay back whatever he has charged as regularly as possible while also trying to gain traction on paying it off completely.

This was working until he changed his habits out of the blue and didn’t tell me. On Friday, we went out to dinner and as we are paying for our food, our debit card was declined. Declined? How is that possible? We just got paid and I was able to pay $1000 towards the credit card, leaving me with plenty budgeted for groceries and weekend activities such as this. He handed the waitress the credit card and was pissed/embarrassed. I always feel a sense of responsibility when these things happen since I handle the money for the family.

As it turns out, it wasn’t my fault at all. He chose this week to finally listen to my request on using the checking account instead of the credit card but never told me. The tools he had to purchase for work, his lunches for the week, and even “beers with the guys” came out of the checking account and now it’s empty! I know what you’re thinking, “Well that sucks but you can just use your credit cards until next payday.” You would be right, however somewhere between paying for our dinner, and returning his credit card to his wallet, we lost it! I say “we” because we aren’t completely sure who is responsible (it was him).

I called the restaurant the next day and they didn’t have it. We also walked along the River Walk downtown after dinner so there’s really no telling what happened to it. So now, we are sharing a credit card, and as a reminder, there is zero money in our checking account. My husband and I work on opposite sides of town and with school and late hours, he hasn’t been able to make it to the bank to request another card. It’s a minor inconvenience that has taught us a valuable lesson…

  1. Make sure you are always communicating about finances with your spouse.
  2. If one changes their spending habits make sure to let the other one know so that things can be adjusted accordingly.
  3. Always keep a twenty in your glove compartment in case someone (husband) loses their credit card.
Frugal February

Frugal February

Posted on by Kelley Elmore

I don’t know about you, but I don’t exactly jump on the resolutions train every new year. Probably because it adds a lot of unnecessary pressure right after the holidays. I feel like we just spent a few months stressing out about making the holidays absolutely perfect, going into even more debt to do so, most likely gaining weight from all of the holiday party foods, and I need a break! I tend to look at January as time to let the dust settle after all of the build up that the holidays bring.

That being said, I’m ready to get my butt in gear. We were doing so good on building our debt snowball and paying things off before Christmas. I paused the budget and didn’t even attempt to pay towards debt since early November. Like most people, we accrued more debt while Christmas gift shopping so it’s time to get back on track.

My Plan:

  1. Meal plan once a week for the ENTIRE week (breakfast, lunch, dinner, and snacks-our downfall).
  2. Go grocery shopping without kids so that I can avoid overspending and actually stick to the list.
  3. Redo our budget.
  4. Take away the husband’s Amazon password. (I joke but I really do think this would save the most money)
  5. Update my account on https://undebt.it/

If you don’t have an account with https://undebt.it/ you absolutely should! It is a completely free website where you can put in all of your debts, interest rates, minimum payments, etc. and how much extra money you can squeeze out of your budget to pay on debts and it will recommend what you should pay off first. It even gives you options so that you can make your own informed decisions. For example, say you have $500 that you want to pay towards debt. You go to your account, add in the amount and it gives you a spreadsheet to show what would happen if you paid all of it to one credit card, or if you spread it out between a few. You can try it with the Snowball Method (lowest balance first) or Avalanche Method (highest interest rate first) and it will give you what date you can expect to have them paid off. (Check out this previous post if you’d like more information on the Debt Snowball http://www.littlesliceofimperfection.com/?p=674) Then you can play around with what would happen if you added $20 or $50 more? Then how much sooner could I pay it off? You’ll find your self skipping after work drinks with the coworkers to put that extra cash on your debts. It really is addicting.

So, let’s do it. You might not think that you have anything extra that you can pay towards things but you would be surprised. Even an extra $20 each month will help. Put it on paper. Do a budget. Revoke your husband’s Amazon membership (still only halfway joking). Make the Undebt.it account. What are you waiting for?

“Winning at money is 80 percent behavior and 20 percent head knowledge. What to do isn’t the problem; doing it is. Most of us know what to do, but we just don’t do it. If I can control the guy in the mirror, I can be skinny and rich.” 
― Dave Ramsey, The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness

That was a close one!

Posted on by Kelley Elmore

Brian calls it the “Elmore curse”. I just call it “life”. If something is going to happen, it’s going to happen to us and at the worst possible time. Since Brian changed jobs and he carried our health insurance, we are not exactly covered right now.

So, of course, this is the perfect time for someone to get injured. Cue the phone call from Aiden’s teacher on Monday. Aiden fell at school and hurt his arm. She didn’t think it was broken but it was definitely sore. I went and picked him up early and realized he wasn’t using that arm at all. It was already swollen, and to me was most certainly broken. Do we have our emergency fund complete? Of course not. We have filled it and depleted it multiple times now. If we had $1000 in there like we are suppose to, this probably wouldn’t of happened (Remember, Elmore curse?).

I called the urgent care office to confirm that they had x-ray capabilities and to also get an estimate as to how much it might cost. The lady on the phone informed me that it would be $125 when we arrive and will go up from there, depending on what he needs. The most it could be is $319. Well, we were in luck because we did still have our Health Saving Account card from when we were insured and it still had an available balance of $349. Finally, a break (no pun intended).

So, once Brian got home to stay with the baby, Aiden and I went to urgent care. The doctor examined his arm and was pretty confident that it was broken. She stated that they would have to refer us to an orthopedic specialist.

The doctor was very surprised to see that the x-ray showed his arm was not broken! It was just badly sprained. They put him in a sling that he’d have to wear for the week and that’s it. They charged us an additional $63 for the x-ray and sling so we ended up paying a total of $188 for the whole visit. I paid it with the HSA card and was actually left with an available balance of $161, just in case.

Moral of the story: We dodged a financial bullet! Can you imagine the bill we would have received if we had to go to an orthopedic specialist without insurance?! Yet another reason we need that $1000 emergency fund. Not to mention, health insurance.

I am trying to decide the best way to go about that. Brian has to wait 90 days to be eligible for benefits  and my company would be over $1000 per month for coverage. I guess we’ll just have to bite the bullet and sign up through my employer. I definitely do not like this game of Russian roulette we are playing!