| T O P I C R E V I E W |
| farmmilkmama |
Posted - Jun 23 2010 : 12:08:21 PM
We have this new "fancy" way to keep track of our spending and get on task with our spending. Our goal is to save $500 a month and put it towards the down payment (or total payment) on a farm in about 2-3 years. (I use fancy sarcastically, as you will see. I am so NOT a fancy farmgirl! But I figure use whatever works, right?)
http://farmfoodmama.blogspot.com/2010/06/envelope-please.html
--* FarmMilkMama *--
Farmgirl Sister #1086
Be yourself.
Everyone else is already taken.
-Oscar Wilde
www.wakeupstartlearning.blogspot.com
www.farmfoodmama.blogspot.com |
| 15 L A T E S T R E P L I E S (Newest First) |
| msdoolittle |
Posted - Jan 04 2011 : 11:11:45 AM
It's insane. We found a house on the SAME DAY that Fannie Mae/Freddie Mac collapsed. We were self-employed and NO ONE would mortgage us. I mean NO ONE. the only way we got this house was by putting down twenty percent, and signing a stupid ARM mortgage, which is terrible. We need to refinance now to get out from underneath it before it goes to a variable rate. It's just nuts.
I would highly recommend using only a local bank or a credit union. They will help you to establish your credit and you get to know them personally. Fortunately, we are friends with the folks at our bank after 14 years of banking with them and they will go out of their way to help, which is nice.
Credit cards are a joke. I try not to use them, but if I do, I always pay the balance at the end of the month.
I can tell you that I will never, ever buy a new car again...we bought TWO about 6 years ago. I'll just drive a reliable used car that is paid in full from now on, thanks very much!
FarmGirl #1390
www.mylittlecountry.wordpress.com |
| Prairie Gypsy |
Posted - Jan 04 2011 : 07:16:13 AM
Banks are totally insane. My son came back from a year in Iraq a year ago with $10,000 saved to put towards a truck (Silverado). He'd been in the Army 2 years so healthy work history. Couldn't get a loan approved. Had to go back to TX to one of those vulcure dealerships that charge outrageous interest to soldiers to get a loan even with that type of down payment. The credit card he'd been using off and on since he joined the Army didn't help him at all. They still claimed he had no credit history. Same thing happened to my daughter. She got a credit card to build her history and when she applied for an apartment they said she had no credit score and charged her more for the apartment because of it. I think taking out loans is about the only way to build a credit history.
Farmgirl Sister # 2363
http://twilightburrough.blogspot.com/
Warren, MI
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| vintagejenta |
Posted - Jan 03 2011 : 8:02:47 PM
Yikes! I had no idea banks were so picky! The boy and I don't have credit cards, just debit cards. However, we both have student loans and he had to take out a car loan when his Jeep got totaled in an accident. So we should be okay with credit. But still. I think it's absolutely ridiculous that people who save and are responsible with money get punished by banks.
In the late '80s, early '90s when my parents were looking to buy their first house, they had perfect credit and like $20,000 in cash to make a down payment on a house, and the bank wouldn't give them a loan. Because they had started their own business and it was only a few years old and was therefore a "liability," even though they were not in debt and things were going fine. Their realtor finally had to badger the bank manager to give them a loan before they could get the house.
Now banks will give loans to anyone who wants one - except people who use their money responsibly. *rolls eyes* This is why we're in this financial mess. Thank god we rent!
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http://citygirlcountryfood.wordpress.com |
| harmonyfarm |
Posted - Aug 12 2010 : 11:52:04 AM
We were all born with a name and for a time we were known by our social security number. That led to people stealing the numbers for their own gain. Now we are known by our credit score. I'd like to go back to being known by my name....
Debbie
"If you can't find the time to do it right...how will you find the time to do it over" |
| msdoolittle |
Posted - Jun 29 2010 : 10:18:58 AM
I personally also used the plan that Amy used. No cash in the envelopes, but rather, I organized receipts. I had two main envelopes. One for cash receipts, the other for debit card purchases. The reason I use my debit card is because I use the free program @ Mint. com, where you can easily categorize your purchases...even puts it in a nice little pie graph/comparison chart. This is just like Dave's paperwork minus the paperwork.
Anyway, this system won't work for everyone! :0) Glad that others have found the envelope system useful.
FarmGirl #1390
www.mylittlecountry.wordpress.com |
| JenniferJuniper |
Posted - Jun 29 2010 : 05:37:18 AM
Schoolmama Amy, I have been using the same system for awhile too! I subscribe to The Color of Money e-column by Michelle Singletary, a financial advisor for the Washington Post & she is all about the envelope system. It really works-when the cash is gone, it is gone and NO borrowing from one out of the other. A long time ago on a MJF forum I posted how I paid off my car 6 months early by using this method. PS I have found the bank envelopes they give you when you ask them to break a $20 are sturdier than the regular mailing kind.
Farmgirl Sister #204 |
| craftystranger |
Posted - Jun 29 2010 : 04:29:57 AM
Lessie Louise, I am also saving for an Airstream. Slow going but I am at least trying. We went to a camper show and I still love the feel and look of an Airstream. I have seen used one for sale in your state on line. Msdoolittle, Dave (feels like I can call him by his first name...LOL) is the one who started us on the envelope system. This is what my grandparents did for years when they first got married. I agree that we should not have to "build" our credit using cards and loans. That's is what has gotten our country in this realestate mess. I have seen that if I have cash it makes me think twice about spending it. Oh I also love the fortune that you have shared with us. Farmmilkmama I will be checking on your blog...happy savings, Barbara
Don't forget to laugh! |
| msdoolittle |
Posted - Jun 28 2010 : 3:29:23 PM
Hi Amy,
I still believe you are doing the right thing. I would do exactly what you are doing...taking out mini-loans at the bank and paying them off. (Of course, never really spending the money) Yes, credit is definitely a game. I still believe that you are correct in saying that cash is king. You are already on the right path, living debt-free. How many of us can say that at the end of the day? I know that your farm will become a reality, it will just take some planning and hopefully also some Divine intervention, too!
I will share with you a fortune cookie that I got a few years ago, that I have tacked to my 'inspiration board': "Affirm it, visualize it, believe it, and it will actualize itself."
I have that stuck to my debt payoff list. I do believe in the power of positive thinking. I'm an eternal optimist. :-D
FarmGirl #1390
www.mylittlecountry.wordpress.com |
| farmmilkmama |
Posted - Jun 28 2010 : 2:39:58 PM
Thanks for the suggestions Amanda. I'm glad you have that kind of relationship with your bank :) We also have a small town bank (2,000 people) we have been with since we got married (ten years ago) and that bank told us the same thing all the other banks and mortgage lenders have been telling us. In fact, the head loan person at the bank who we had our last meeting with actually had to call their underwriters to see what the "current" rules are as far as lending because they are changing them so often (sucky economy). We did take out a secured savings loan at the bank also, which she suggested to us as another way to build up our credit. I just wrote another blog post about the envelope system/credit game which will further explain our situation, if you're interested.
http://farmfoodmama.blogspot.com/2010/06/playing-game.html
My aunt told me her friends just moved here from AZ with some ridiculously high credit score and so many tens of thousands in the bank, and can't find anyone here to give them a mortgage because some new rule said you have to show at least seasonal employment in MN for two years. Go figure!!
--* FarmMilkMama *--
Farmgirl Sister #1086
Be yourself.
Everyone else is already taken.
-Oscar Wilde
www.wakeupstartlearning.blogspot.com
www.farmfoodmama.blogspot.com |
| msdoolittle |
Posted - Jun 28 2010 : 2:15:17 PM
Hi Amy,
We have been on a plan via Dave Ramsey for 13 months. Very similar to your plan, with the exception that you have 1000 in an emergency fund (you may have this, too?). Anyway, it is true that 'Life happens'. We also had to take our dog to the emergency vet to the tune of about 300 bucks when I thought she had pancreatitis. Ugh. Lol. It sure was nice to have that money stored away for that occasion!
We have been intense on paying off our debts and it really works well.
I disagree with your bank(s). They are only looking at a FICO score, which means doodly-squat. It is only your relationship with DEBT that they are looking at. My solution? Stick with a hometown, locally owned bank or credit union and work with them. We bank locally and I would NOT have it any other way. We slowly built up our credit through our bank via several loans, most of which are now paid in full. I could call my loan 'buddy', Shawn, at any minute and he'd have it deposited that same day, if I needed it. We still do take out mini-loans which are paid off within 45 days (for business reasons; we own a company). Anyway, just a thought for you.
I am sure you will get to that farmhouse one day!!!
FarmGirl #1390
www.mylittlecountry.wordpress.com |
| patchworkpeace |
Posted - Jun 28 2010 : 04:54:20 AM
Good luck on your endeavor, Amy. I think the hardest part is coming up with the plan and then sticking with it. Sounds like you are on the right track.
Success is measured not by the position one reaches but by the obstacles one has to overcome to reach it. Booker T. Washington |
| Lessie Louise |
Posted - Jun 24 2010 : 6:14:49 PM
we have used the envelope system for years, a lot like Amy. Never use debit or credit, makes me nervous to use pay pal! Our big saving goal is to get an Airstream and to pay cash. It is gonna take a while
Forget buns of steel, I'd rather have buns of cinnamon!
Don't out smart your common sense!!
Farmgirl #680! |
| schoolmama |
Posted - Jun 23 2010 : 9:01:48 PM
good for you for setting up a savings goal!!!
I am like "crafty"... we put the allotted cash into our envelopes on each pay day and can only spend what is in the envelopes. We are trying to avoid debit card use (and credit cards,too)
I have an envelope for gas, food, pet food/supplies/fun money (mostly for dh) and kids allowance.we have been doing this for about 2 years, and so far it's worked fairly well. Dh has a bad habit of forgetting the cash at home and sometimes ends up using the debit card at the gas station.
I find that I spend a lot less when I know there is a limit to what's in the envelope. On rare occasion, I will go over my limit at the grocery store,and get out the debit card-but that's only once in awhile. I try to buy 2 weeks worth of groceries at a time- so I generally have a little left for milk, bread, fresh fruit and the occasional really good- I have to stock up on it,sale!
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| farmmilkmama |
Posted - Jun 23 2010 : 1:51:10 PM
LOL - you just made me realize how I wasn't very clear on an important part of our fancy system. We don't put the money in the envelopes and take out of it, we put the recipts for what we have purchased in the appropriate envelope and keep track of what we're at. We would love to work it the other way around, like it sounds like you're doing, but we were told we need to build our credit and should get some plastic and start charging everything and then paying it off every month.
Which is a whole 'nother post I'm working on right now.
I thought it was a good thing to NOT have credit cards, loans etc...and to pay cash for everything? We haven't had a credit card or loan on anything for 3 years and were told by at least three different banks and a couple mortgage companies that that is actually HURTING us. They said we NEED to get a credit card (secured I guess, because I won't do it any other way) and start charging our normal purchases on it and paying off every month to show we can do it. I said "What is this...kindergarten?" The person we talked to at the last bank said its all just a game you have to play. Believe me, there is a big blog post coming on this one....because I HATE that they don't care how much we have in savings, that we pay cash for EVERYTHING, etc. This has been the topic of so many fights between my husband and I.
Anyhow...I like your way better!!!! Even if you aren't using pushpins!!
--* FarmMilkMama *--
Farmgirl Sister #1086
Be yourself.
Everyone else is already taken.
-Oscar Wilde
www.wakeupstartlearning.blogspot.com
www.farmfoodmama.blogspot.com |
| craftystranger |
Posted - Jun 23 2010 : 12:48:23 PM
Oh yours is "fancy" - I do not kave the push pins..LOL. I do agree this does take determination. When one envelope is empty we have to wait till payday. All the bills are paid first...then we divide the money into the envelopes. Hubby had a harder time with this than I did...just keep up the hard work, Barbara
Don't forget to laugh! |
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