Well, my husband and I had another heart-to-heart last night and it went really well. I think we'd both gotten frustrated with each other over finances. I have just finished reading Debt-Proof Living by Mary Hunt that I'd seen mentioned on the blogs several times and told him about some of the things she discusses. I liked her system for dealing with the unexpected expenses throughout the year and we've decided to start our own Freedom Account this next pay period (Sept. 30th). We'll have the following sub-categories to start with:
Auto Maintenance & Repair - $1,000/year
Date Night/Family Activities - $360/year
Gift - $360/year
Clothing - $360/year
Vacation (airline tickets home) - $900/year
This will require a deposit of $262/month which I will automate into an account that is NOT affiliated with my current bank. I do not want to see the balance everytime we log in. I think it will be easier for us if it's out of sight. I have already set up the Excel spreadsheet as the book suggests and am ready to start; it's exciting and feels very empowering to be taking such proactive steps in our financial management.
Oh, my husband also agreed to staying in the apartment for an additional year (to January 2011) in order to achieve our goals of paying off ALL credit card debts and building up a downpayment fund before buying a house. This is a HUGE step for us. I have worried for months about how I'd feel and what we'd do when fall 2009 came and we were still in debt facing the decision to buy a house or not. With our current plan, I project we'll make our last credit card payment in May 2010. Then we can sock away all the money currently going to debt repayment to a downpayment fund June-December 2010.
Any suggestions on creating this second bank account for our Freedom Account? Is it wise to go to a different bank? I'd love to hear any advice from those already doing this; thanks!
"Debt-Proof Living" Talk with Husband
September 23rd, 2008 at 08:33 pm
September 23rd, 2008 at 09:13 pm 1222204387
September 23rd, 2008 at 09:28 pm 1222205337
September 23rd, 2008 at 10:45 pm 1222209940
As far as a separate account for your freedom accounts---ING all the way. Easy to open and easy to get your money quickly
September 24th, 2008 at 12:12 am 1222215164
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September 24th, 2008 at 03:05 am 1222225511
Also, me and my wife have a rule that if the budget needs to be changed, we both need to agree on it. If one of us says no, then no it is.
I am not familiar with Mary Hunt. I have read Dave Ramsey. The biggest thing is to find a system that works for you and any system that improves communication is good in my eyes.
September 24th, 2008 at 04:21 am 1222230072
Jennlem - we don't really buy clothes much at all; I think it's been about a year since my husband got something new. We shop sales and can often find decent stuff at Goodwill when we do shop so I think it should work. Date night/Family activities are usually lower cost or free things and we mainly need that money for babysitting for the date nights. My husband and I also get $50 "fun money" each month that doesn't get accounted for and I have bought a piece of clothing here and there with that. Thanks for the ING recommendation, I was leaning towards them!
Creditcardfree - I worry about having that discipline when I get discouraged about credit cards. I think I'd be tempted to send our Freedom Account's money to them in a moment of weakness if I saw it in front of me all the time. What are "slush funds"?
CampFrugal - I have thought of doing a regular savings account, so do you just transfer the money back into your checking account once a purchase has been made?
Merch - I wish we were that disciplined, but I think I need the money completely out of our account so else it may be seen as money that can be used now. I haven't read Dave Ramsey, but am thinking I might soon. Many people here seem to like him.
September 25th, 2008 at 12:34 am 1222302867
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