I watch your show faithfully and figured we weren’t as bad as the people on your show. Well I was wrong when finally April 28th I took a nose dive into our finances. We were just as bad and our debt was increasing. We completed the budget sheet, stopped our frivolous spending, started saving & paid off our credit debt in less time I ever thought possible.

Many, many thanks to you Gail. It’s literally because of you & your tough guidance that we’ve been able to clear up the debt. You are awesome!!!!

This week:

39.  When you were growing up, did your friends have more or less than you did?  How did you feel about that?

Take your time and really think about this. If you think you know and want to respond right away, do so. But then come back in a couple of days, re-read your response (or review your response in your notebook) and see if you want to add, subtract, change anything. This is a journey and it is one that will help you uncover what is really important to you if you take time to think.

We want a nice wedding but don’t want to go back into debt for it. I’ve seen anywhere from $20,000-$60,000 for a run-of-the-mill wedding with 100 or so guests. Looking for ideas with regards to how to plan the wedding, how much to save, and how to safe (monthly contributions to a cash account? Some higher-interest vehicle?) etc.

Any suggestions?

This week:

38.  Are you happy with the amount of money you have available to spend now?  If not, how much more do you need?

Take your time and really think about this. If you think you know and want to respond right away, do so. But then come back in a couple of days, re-read your response (or review your response in your notebook) and see if you want to add, subtract, change anything. This is a journey and it is one that will help you uncover what is really important to you if you take time to think.

Now I watch Till Debt Do Us Part and my VERY favourite, Princess, and think about how I have turned into a Money Maven. (It feels so GOOD to say that!!!) In less than 4 years I have shrunk my debt to less than $24,000 and it will be gone by the end of this year. I have worked my little butt off! Just this morning I finished paying back my consolidation loan. That made me feel utterly FANTASTIC!

So, starting next year, I will have ZERO DEBT next to my mortgage, and will be starting a wonderful new chapter in my life of living in the black and feeling as free as a bird. I’m already looking into investment properties as a new goal to set for the year ahead.

I thought that I would send a funny quote that my husband said tonight while we were watching one of your episodes of ‘Til Debt do us Part’. One of the focus couples had a husband who said ‘I work hard, so I deserve to buy whatever I want’. My husband started laughing and said, ‘More like-I work hard, so I deserve all this debt’.

I hope you got a chuckle out of that one! My son is 14 and he loves your shows – he is a wise young man due to your commitment to educate the public & has nearly $500 saved in his bank account (from the savings jar).

All the best & keep doing what you do because it is making a difference!

This week:

37. Did you feel you had everything you needed and wanted as a child living at home or did you feel deprived?

Take your time and really think about this. If you think you know and want to respond right away, do so. But then come back in a couple of days, re-read your response (or review your response in your notebook) and see if you want to add, subtract, change anything. This is a journey and it is one that will help you uncover what is really important to you if you take time to think.

I had quite a few false starts – I tricked myself into believing that I wasn’t a princess for quite some time. I also tricked myself into believing that I knew a lot about finances and knew what I was doing. Now, as I end my evenings washing ziploc bags and packing homemade lunches; I realize this time, I am really turning over a new leaf.

So what made me realize that things had to change? I found myself with no safety net, that’s what. I was divorced, out almost $50K after legal fees and the payout for my ex; and stuck with the same expenses that I had before except minus the second income. I had maxed out my line of credit to fill the house with stuff that I was now missing. It wasn’t pretty.

The day my line of credit hit its limit, I panicked because I knew I had a credit card bill coming in and no “money” to pay it off. I may have been financially irresponsible, but even I knew that 19% interest on credit card debt was plain stupidity.  (Although somehow in my mind, the 7% interest on my line of credit seemed to be an ‘acceptable’ rate…Gail would totally whack me on the backside of my head for that one).  I played with the idea of asking for more credit as I have a good credit rating; but then I realized that wouldn’t solve any issues. I realized that my daughter depended on me to get my sh*t together, so that, ladies and gentlemen was my wakeup call.

I’ve always believed that people are capable of change. HOWEVER, they can only change if they see the need to change for themselves. This was the first time it really dawned on me that I NEEDED to change my financial habits. I had no safety net and no extra disposable income. My parents were not happy with my decision to divorce my ex as they didn’t think it was good for a “woman to be on her own”, so I was damned if I was going to ask them for any help. My pride wouldn’t allow it.

Fate was on my side. I was watching TV one day and I discovered my financial guru – none other than our own Ms. Gail Vaz-Oxlade.

Wikipedia defines “guru” as:

A guru (Sanskrit) is one who is regarded as having great knowledge, wisdom, and authority in a certain area, and who uses it to guide others (teacher)…Finding a true guru is often held to be a prerequisite for attaining self-realization.

Gail is a tough, no-nonsense woman who won’t put up with any sh*t – the type of person I can really respect. She is my financial “guru”. She helped me get to that point of self-realization. Her shows really hit home for me. After watching a few episodes, not only was I hooked; but I realized that I embodied so many of the same characteristics as her clueless subjects (BG – “Before Gail” of course). That’s when I realized that I was living in my own little bubble. I never had to worry about money in my life – my parents gave me everything when I was younger. Then when I married, between the two of us; we were making good coin. We both had HORRIBLE spending habits, but we made enough that those spending habits weren’t getting us into too much trouble. Then all of the sudden, I saw my household income halve and my expenses remain the same…not easy.

So, I created a budget and made a plan. I bought myself some mason jars, labeled them and I have been living on a tight cash budget ever since. It’s not easy, but it is so fulfilling and empowering to know that I CAN DO THIS.

So I am officially a recovering Princess and 4 months sober.

This week:

36. What messages did you receive about money as a child growing up?  What are your earliest money memories?

Take your time and really think about this. If you think you know and want to respond right away, do so. But then come back in a couple of days, re-read your response (or review your response in your notebook) and see if you want to add, subtract, change anything. This is a journey and it is one that will help you uncover what is really important to you if you take time to think.

It ended up with me and my partner having to get a consolidation loan for $50K, cosigned by a parent. Once we got serious, we paid if off in 4 years, then immediately bought our first home and had a baby, starting another debt downslide, even though I went back to work 3 months after having my daughter. We sold up that house (for a profit, which we used to pay down our debt) and bought a bigger house plus got a couple of car leases. We were living so close to the edge it squeaked.

Anyways, it ended up with the marriage falling apart (thanks in part to the money problems). At the same time, I was laid off, and as the primary care provider for my daughter, I started my own home business so I could drop her off and pick her up from school every day. Talk about stress! Now I was supporting the big “dream” house all by myself, no employer benefits, no savings, limited income with sporadic cash flow, and no child support or alimony. I personally was a breath away from bankruptcy and living off my unsecured line of credit.

They say you can do anything you have to. What they don’t tell you is that you CAN actually be happy doing it. It was hard at first, but I sold the dream house and used my half of the proceeds from the house sale to pay off ALL my debt (including remaining student loans) and bought a reliable used car instead of leasing. I got into a smaller rental house that costs less than what I was paying in interest each month on my dream house. I cut my fixed expenses by 60% and my variable spending by 30% (I was already living pretty tight before). My home based business has a stable cashflow and is growing. I even had the savings to take my daughter and my sister on a (modest) vacation to Cuba last fall – my first tropical vacation! We had a blast.

The funny thing about all this is that now I’m able to help my two younger sisters (9 and 11 years younger than me) as they’re just starting to get into their own debt problems. And one of the biggest pieces of advice I give them is to watch your show! They need to know that they’re not alone (chances are their friends are in just as bad shape or worse, despite the flashy toys and dinners out). And they need to know carrying consumer debt is serious but it CAN be fixed, and it should be fixed asap.

This week:

35.  At what age did you take your first job and how much did you make?  What did you do with your money?

Take your time and really think about this. If you think you know and want to respond right away, do so. But then come back in a couple of days, re-read your response (or review your response in your notebook) and see if you want to add, subtract, change anything. This is a journey and it is one that will help you uncover what is really important to you if you take time to think.

My question is…. My husband and I own rental properties. How do we make a budget for our family? Do I have to separate rental income from personal income? It makes it difficult to calculate the gross income from the net one. I not sure if the variable expenses are ok (jar money). Up to now I’ve been guesstimating . I’ve cut down a whole lot but no sure if it’s ok for a family of 5.

Your show has woken me up! I used to be the type of person who bought everything my children WANTED. Ever since I talked to them about a budget, savings, the difference between a want and a need, they have been very careful with their money and spending habits.

It’s amazing to see the difference this whole budget thing has done for our family. We can actually see on paper or computer where the money goes and how much less we spend now.

I used to be the person who would be at the grocery store almost every single day. But now I get to go once a week. I leave my house with a list (with the prices and specials) and only get what’s on the list. I don’t go over my budget and usually have money left over. I used to spend on average $200 (on food) more a WEEK than I currently spend! I now have a ritual where I get to check out all of the circulars to every grocery store and compare the prices and whatever is on special that week. I go to 5 or 6 different grocery stores and get what is considered a good deal (and NEED). Luckily for me they are all very close to one another so gas consumption is minimal. I get to save a minimum of $50 a week just by hunting for specials. I am for once proud of myself and so is my husband!

I read your book ”How to get out of debt and stay there” and it was an eye opener. I hate reading. The last time I read a book must have been over 10 years ago. I read yours within 2 weeks (which is a miracle in itself). I plan on getting your new release as soon as I save up for it because I consider it as a NEED and an excellent tool for my family.

Thank you for the information you provide the population and please continue the good work.