What Shape Are My Family Finances In?

The Total Money Makeover by Dave Ramsey talks early on about denial, specifically, denial about what shape my family finances are in.

I see this all the time in my business.

People who contact me uniformly do NOT have any kind of family budget.

The first step in figuring out what to do with your finances is, what the hell are my family finances?

What is the income I have, for sure, with no overtime or bonuses or profit sharing.

(Not a lot of that going on these days.)

Many people contact me wanting to keep their house, and or everything else.

These days, I ask what the value of the house is, and how much is owed on each mortgage.

Over half the homes in Michigan are underwater, that is, worth less than what is owed on them.

Lots of folks tell me, but home prices have to go back up, don’t they?

So what if you could only get $150,00 for it now, it is really worth $300,000, and in another ___ years, it will be again.

Home prices do not have to go up.

So, what is your main asset, your home, worth, and your main debt and payment, any mortgages on that home?

Pull out those pay stubs.

There are plenty of financial calculators around, if you are mathematically challenged as I am.

Now the hard part.

Where is that money going?

Mea maxima culpa on this one.

Hey, lawyers use to use Latin all the time.

Just fancy for I am guilty, me too.

As I read Ramsey’s book, I realize I have not had a budget, in, well, decades.

Have not gotten to the self employed section, as both me and my wife are, so income is uncertain.

That is an excuse for not committing to a budget.

Just not valid excuse.

So, next time, I will look more at what goes into a budget that will be the foundation of healthy family finances.

If you enjoyed this post, make sure you subscribe to my RSS feed!

5 Responses to What Shape Are My Family Finances In?

  1. Hi there would you mind stating which blog platform you’re using?
    I’m planning to start my own blog iin the near future but I’m having a hard time deciding
    between BlogEngine/Wordpress/B2evolution and Drupal.
    The reason I ask is because your design seems different then most blogs and I’m loooking
    for somdthing completely unique. P.S Sorryy for getting off-topic but I had to ask!

  2. I hardly leave a response, however I read a great deal of comments on What Shape Are My Family Finances
    In? – Detroit Bankruptcy Lawyer Kurt O’Keefe. I actually do have 2 questions
    for you if it’s allright. Could it be only me or does it look like some of these remarks appear like they are written
    by brain dead folks? 😛 And, if you are posting on other online
    sites, I’d like to keep up with you. Could you make a list of every one of your social community sites like
    your linkedin profile, Facebook page or twitter feed?

  3. Write more, thats all I have to say. Literally, it seems as though you relied on the
    video to make your point. You obviously know what youre talking about, why waste your intelligence on just posting videos to your blog when you could be giving us something informative to read?

  4. I’m no longer positive where you are getting your information, but great topic.

    I needs to spend some time finding out more or working out more.
    Thanks for excellent information I used to be on the lookout
    for this information for my mission.

  5. That is an incredible read through. I love this blog.

    Thanks for sharing with us.