We do not have a working budget. I’ve been working on a priority list budget as per Dave Ramsey’s advice, which has helped tremendously to stay on top of the mortgage and vital utilities. I’m happy with my progress with that and my husband is also completely on board.

I’ve chatted with him about us sitting down together with both our laptops open and pencil and paper at least once a week to see what the other expects in regards to expenses. He has business expenses and taxes that he must pay and often forgets. I need to know what is on his mind and shoulders so that I can be more supportive and if necessary tighten up the bootstraps during a rougher patch for him.

So, my feeling is that the priority list has helped me put the most important expenses up front and easier to pay even. The savings is about $700/month which represents more than 10% of our monthly expenses. That’s automated through ING right now. That’s a good thing. Credit cards are out of control. We’re not using them, just trying to find an organized way to make sure we’re paying them. Yes, there are that many. I know it can be done, just trying to figure it out. Most are on an auto-pay feature, some are not and those are the ones confusing me.

I appreciate the comments about turning to the Lord to help with fear. I’m really grateful for this forum. Y’all have been great with suggestions and encouragement. So, much to think and pray about. It’s real world advice. I’ve been searching in so many places for real world answers and it’s just so great to have other suggestions and experiences to draw from. Thanks again!!!

This year alone we were able to make a $30,000 swing – and that is NOT including the earnings from my side hustle!

I call it, “Giving Yourself A Raise.” Click that link if you want to listen to Flexo interview me about the concept.

And the fact that she’s saved the $5k is also a very important and positive sign.

Matt listed some great resources too and I especially like his focus on G-d. When I forget about this , I just get wrapped up in the wrong energy. When I get down on my knees and pray for guidance and to be of service, the direction seems clear.

As long as I remember it’s not about ME and MY FEAR, I can take good direct action – like the ideas presented before me.

I would also make sure both husband and wife were aware of financial decisions. It sounds like her husband doesn’t know about the savings? Or maybe I misread that part….

I would also stop worrying about trying to earn money (in risky situations) and just slowly and methodically work on getting rid of debt in order to be financially free of that kind of slavery.

I have degrees in economics and finance, but we got behind on bills and had bad credit in the beginning, because we weren’t on the same page!

A simple spreadsheet calculation should suffice! Good luck!

I appreciate the compliments and encouragement. I have had businesses on the side, in fact, that’s one of my hobbies. I stopped working as hard because I’ve had some complications with this baby we’re expecting. But, I come from a entrepreneuring family and I agree that small at-home businesses are a great addition to any family and teach children how to work and think for themselves.

I appreciate also the thought about having a large savings since my husband is the only source of income at the moment. That was something I had never thought of.

Frugal Dad–great idea. We just need to build a bigger savings, but I’m loving the idea. Thanks so much.

Y’all are really great and I do appreciate the support.

I don’t know if this always gets covered, but one thing to do is consider starting a business on the side. There are some things dog walking, or plant leasing and delivery that don’t necessarily take a whole lot of time but do add a couple of hundred to the bottom line.

Another thing to consider is an investing strategy that results in passive income. For example there are several good bond funds that give a 4% yield, and one could also consider investing in canadian energy trusts that pay 7 to 8%.

Thanks,

James

She needs to tell her husband about her saving and get him on the same page. We can guess that all of the money was saved from her efforts; bringing her husband into the effort should only improve the results.

Since her husband is self-employed and the family’s only means of support, they should work to accumulate at least 3 months living expenses (6 is better) as soon as possible. They’re playing with fire otherwise.

Once there’s 3-6 of breathing room tucked away, then attack the debt without mercy.

On the cash flow side, I completely agree with Frugal Dad. I do contract work and get paid in lump sums, then have to budget withdrawls like a weekly salary. That forces you to be more careful when the windfall comes in.

Keep a spending journal, and start using envelope budgeting (real envelopes or software like Crown Money map or Mvelopes).

You said you have $5k saved, that is excellent (but do tell your husband). Now decide how much of an emergency savings pad you need (I would recommend $3k while getting out of debt) and apply that surplus to your credit card principal.

Once that is gone, move on to the next debt. Once only your mortgage remains, increase emergency savings to $10k. This will keep you from ever having to go back into debt.

Finally, if you have been investing (retirement, college funds, etc.), stop adding to them until you are out of debt. Whether to invest before or after paying off the house is a personal decision, but it is extremely unlikely you will consistently make more than you pay in interest on any other debt.

Best of luck, keep up the good work.