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This is the first in a series of special episodes where we take the real life examples of people in financial stress and dissect them, bit by bit, to figure out the best solution for their money.
Our special guest coach is Don Current, a dedicated financial coach from Shelbyville, IN. With over a year of experience in financial coaching, Don is passionate about helping others achieve financial freedom. Having successfully followed Dave Ramsey’s Financial Peace University principles to become debt-free, Don has since offered the program multiple times at his local church. As a testament to his commitment to helping others, Don has developed a six-week financial course focusing on core principles such as budgeting, debt reduction, and basic investment knowledge.
What you’ll learn
In this episode, you will be able to:
- Master the art of managing irregular income through strategic use of separate savings accounts
- Discover the key to financial success by tracking expenses and committing to a sound budget
- Unlock the potential of professional advice for investment and financial planning endeavors
- Prioritize debt repayment strategies and explore the refinancing options that work for you
- Implement the cash envelope system for a foolproof approach in controlling your budget
Analyzing the Couple’s Budget
It is crucial to take a close look at one’s budget in order to identify areas where expenses can be reduced and savings can be increased. By doing so, self-employed individuals can better manage their finances and work towards achieving their financial goals. It’s also essential to analyze their income and prepare for months when income may be lower than expected. This involves setting realistic expectations, avoiding unnecessary expenses, and prioritizing what’s most important. Don Current commends the couple for their financial dedication and suggests they focus on managing their budget better due to their irregular income flow. He emphasizes the importance of tracking expenses and creating a separate savings account for the months when their income is high. This can help them cover their bills when income is low, leading to better financial stability and improved budgeting.
Summary of golden nuggets:
- Maintain a buffer in checking funds to have a safety net in case of lean times with variable income
- Investigate the old retirement account and consider rolling it over into an IRA or allocating it into a better mix of funds
- Maintain the pass-through rental income to pay down the trailer mortgage
- Ensure all bills are current and plan for upcoming medical expenses
- Allocate $450 for groceries and dining out
- Budget $370 for household expenses, including electricity, water, and trash pickup
- Set aside $488 for transportation expenses such as gasoline and insurance
- Allocate $100 for blow money or walking around cash
- Pay $377 in minimum debt repayment costs, with $89 going to the student loan interest and $288 going to the car payment
- Continue paying extra towards the car loan to avoid being upside down on the loan
Resources mentioned in this episode:
http://outright.com for a free online accounting program
http://www.zanderins.com for life insurance
http://www.healthcare.org for health insurance
http://www.recipepuppy.com for ideas in creating meals with what is left in your cupboard
Marilyn Current says
Great information. Very helpful. Everyone should think about these things, and have a working plan on how to deal with money issues.
Steve Stewart says
Thank you Marilyn. You are a testimony on how it feels on the other side of the financial battle and I appreciate your comment. (And thanks for sharing Don).
I attended a Dave Ramsey financial seminar years ago. I may need a refresher. We’ve been happy with Royce Williams. He’s been helping us Nashvillians for a couple of decades. Here is his website if you’d like to take a look: http://www.insuringnashville.com/