Saturday, March 6, 2010

Financial Peace University Week 4: Dumping Debt

This was one of the most intense weeks ever in class!  The DVD was very inspiring and motivating.  At the end of the class, each of us were ready to go and conquer any and all debt!
This week's lesson: Dumping Debt!

Last week our class added up the total amount of debt (not including the home mortgage) that we had.  I was FLOORED.  The total came in at just under $460,000!!  Wow.  This lesson really hits home for a lot of people.

Imagine being DEBT FREE.  Dave teaches about how to do this, which is Baby Step #2 – Paying off all debt using the debt snowball.

Key points from this lesson:
  1. Being Gazelle Intense is the only way to conquer debt.  A lax attitude will not get you very far!!  As Dave Ramsey says, "YOU HAVE GOT TO KICK IT BABY!"
  2. Debt has only become accepted as normal in America in our generation.  Our great grandparents abhorred debt.  Our grandparents didn't like debt.  Our parents used debt for the big stuff (house and car), and we use debt for EVERYTHING.
  3. Make a commitment to never use credit cards again. This is the first and most important step to dumping debt. In class, we had people come up and cut up their cards.  It was very emotional, and liberating.
  4. Do not become slave to the FICO score. It seems that we will do anything to have a good credit score.  It really is an "I love debt score".  Some people claim that credit is the only way to: rent a car, get a mortgage, etc.  Dave says that there are other ways to accomplish these things.  A debit card has the same protection as a credit card.  And yes, you CAN get a mortgage without a FICO score.  Debt should never be the first way to accomplish anything.
  5. The rich rule over the poor, and the borrower is servant to the lender. Proverbs 22:7
Baby Step 2 – The Debt Snowball I previously posted on this topic in detail, so click here to get the info.  Here is the short version of Baby Step #2, The Debt Snowball.
Here’s how the debt snowball works:
Step 1 – Make a list of all your debts, ranked in order from the highest balance to the smallest balance.
Step 2 – Beginning with the card with the smallest balance, pay as much as you can on that card while paying the minimums on the other cards.
Step 3 – Once the card with the smallest balance is paid off, take the amount you were paying towards that card and apply to the card with the next lowest balance.
Step 4 – Keep on paying them off until ALL the debts are paid off.

Steps to getting out of debt:

  1. Quit borrowing more money!! Commit right now to NEVER take out any more debt.
  2. Cut up your credit cards. This was hard for me!  Although I haven't used credit cards for several years, I have kept them for an emergency.  No more!
  3. Get an extra job. Even if it is temporary, the extra income can really accelerate the debt snowball.
  4. Sell stuff.  Plan a yard sale or put stuff on ebay.  Use the cash to pay toward your debt.
  5. Get the debt snowball rolling! Pay off the lowest debt first, then add the amount you were paying for that debt and roll it over to the next debt.
  6. The average person who applies these principles is DEBT FREE except for the house in 18-24 months!!!
Here is the Dave Ramsey Debt Snowball Form:


Debt Snowball Form

Thursday, March 4, 2010

Negotiating the Phone Bill

A couple of weeks ago in our Financial Peace University class, Dave Ramsey talked about how he negotiates many things with finances.  I decided to give it a try.  The very next day I called Vonage, our phone service provider, and asked them if I was getting the best price.  I told them I might switch to a different phone service that was cheaper.  I had been paying $24.99 per month plus taxes.  At the end of the call, I now have a BETTER plan with Vonage than I had previously, and my cost is $12.99 per month plus tax.  Fabulous!!  I guess negotiating really does work....

Tuesday, March 2, 2010

Why Dehydrate Food?

Lately I have got into the food dehydration craze!  As I have been reading everything I can about dehydrating food (and dehydrating everything I can get my hands on), this is what I have found:
  • dehydrated food takes up much less space than canning or freezing
  • dehydrating food can compliment your food storage, adding lots more flavors, textures, and ingredients
  • it is really easy to do
  • it is really inexpensive to do
  • dehydrated food can last a long, long time (as long as it is stored properly)  
University of Illinois at Urbana-Champaign
College of Agriculture
Cooperative Extension Service
Circular 1227

Drying is the oldest method of preserving food. The early American settlers dried foods such as corn, apple slices, currants, grapes, and meat. Compared with other methods, drying is quite simple. In fact, you may already have most of the equipment on hand. Dried foods keep well because the moisture content is so low that spoilage organisms cannot grow.

Drying will never replace canning and freezing because these methods do a better job of retaining the taste, appearance, and nutritive value of fresh food. But drying is an excellent way to preserve foods that can add variety to meals and provide delicious, nutritious snacks. One of the biggest advantages of dried foods is that they take much less storage space than canned or frozen foods.

Recommended methods for canning and freezing have been determined by research and widespread experience. Home drying, however, does not have firmly established procedures. Food can be dried several ways, for example, by the sun if the air is hot and dry enough, or in an oven or dryer if the climate is humid. With the renewed interest in gardening and natural foods and because of the high cost of commercially dried products, drying foods at home is becoming popular again. Drying is not difficult, but it does take time and a lot of attention. Although there are different drying methods, the guidelines remain the same.

Although solar drying is a popular and very inexpensive method, Illinois does not have a suitable climate for it. Dependable solar dehydration of foods requires 3 to 5 consecutive days when the temperature is 95 degrees F. and the humidity is very low. The average relative humidity in central Illinois on days with 95 degrees F. temperatures is usually 86 percent. Solar drying is thus not feasible.

Drying food in the oven of a kitchen range, on the other hand, can be very expensive. In an electric oven, drying food has been found to be nine to twelve times as costly as canning it. Food dehydrators are less expensive to operate but are only useful for a few months of the year. A convection oven can be the most economical investment if the proper model is chosen. A convection oven that has a controllable temperature starting at 120 degrees F. and a continuous operation feature rather than a timer-controlled one will function quite well as a dehydrator during the gardening months. For the rest of the year it can be used as a tabletop oven.

GUIDELINES

Speed

For a good-quality product, vegetables and fruits must be prepared for drying as soon as possible after harvesting. They should be blanched, cooled, and laid out to dry without delay. Foods should be dried rapidly, but not so fast that the outside becomes hard before the moisture inside has a chance to evaporate.
Drying must not be interrupted. Once you start drying the food, don't let it cool down in order to start drying again later. Mold and other spoilage organisms can grow on partly dried food.

Temperature

During the first part of the drying process, the air temperature can be relatively high, that is, 150 degrees to 160 degrees F. (65 degrees to 70 degrees C.), so that moisture can evaporate quickly from the food. Because food loses heat during rapid evaporation, the air temperature can be high without increasing the temperature of the food. But as soon as surface moisture is lost (the outside begins to feel dry) and the rate of evaporation slows down, the food warms up. The air temperature must then be reduced to about 140 degrees F. (60 degrees C.).

Toward the end of the drying process the food can scorch easily, so you must watch it carefully. Each fruit and vegetable has a critical temperature above which a scorched taste develops. The temperature should be high enough to evaporate moisture from the food, but not high enough to cook the food. Carefully follow directions for regulating temperatures.

Humidity and Ventilation

Rapid dehydration is desirable. The higher the temperature and the lower the humidity, the more rapid the rate of dehydration will be. Humid air slows down evaporation. Keep this in mind if you plan to dry food on hot, muggy summer days. If drying takes place too fast, however, "case hardening" will occur. This means that the cells on the outside of the pieces of food give up moisture faster than the cells on the inside. The surface becomes hard, preventing the escape of moisture from the inside.

Moisture in the food escapes by evaporating into the air. Trapped air soon takes on as much moisture as it can hold, and then drying can no longer take place. For this reason, be sure the ventilation around your oven or in your food dryer is adequate.

Uniform Drying

Drying the food evenly takes a little extra effort and attention. Stirring the pieces of food frequently and shifting the racks in the oven or dryer are essential because heat is not the same in all parts of the dryer. For the best results, spread thin layers of uniformly-sized pieces of food on the drying racks.

NUTRITIVE VALUE

Dried fruits are a good source of energy because they contain concentrated fruit sugars. Fruits also contain a rather large amount of vitamins and minerals. The drying process, however, destroys some of the vitamins, especially A and C. Exposing fruit to sulfur before drying helps retain vitamins A and C. Sulfur destroys thiamine, one of the B vitamins, but fruit is not an important source of thiamine anyway. Many dried fruits are rich in riboflavin and iron.

Vegetables are a good source of minerals and the B vitamins thiamine, riboflavin, and niacin. Both fruits and vegetables provide useful amounts of the fiber (bulk) we need. Save the water used for soaking or cooking dried foods because this nutrient-rich water can be used in recipes to make soups, sauces, and gravy.

TYPES OF FOOD TO DRY

Many kinds of fresh fruits, vegetables, herbs, meat, and fish can be dried. If you have never tried drying food before, though, it's a good idea to experiment first by drying a small quantity in the oven. This way you can see if you like the taste and texture of dried food. At the same time, you can become familiar with the drying process.

Fruits are easier to dry than vegetables because moisture evaporates wore easily, and not as much moisture must be removed for the product to keep. Ripe apples, berries, cherries, peaches, apricots, and pears are practical to dry.

Vegetables that are also practical to dry include peas, corn, peppers, zucchini, okra, onions, and green beans. Produce from the supermarket is usually more expensive and not as fresh as it should be for drying. It is a waste of time and energy to dry vegetables such as carrots that can be kept for several months in a cool, dry basement or cellar.

Fresh herbs of all types are suitable for drying. The parts of the plant to dry vary, but leaves, seeds, or blossoms usually give the best results.

Lean meats such as beef, lamb, and venison can be dried for jerky. Fish also is excellent when dried. Certain foods are not suitable for drying because of their high moisture content. Lettuce, melons, and cucumbers are a few foods that do not dry well.

SUCCESSFUL DRYING

Don't be surprised to find a variety of suggestions for drying methods, temperatures, and lengths of time. The drying process is simply not as precise as canning and freezing because it involves so many different factors. You may need to use a trial-and-error approach to find what suits you best. Whatever method you use, be sure to remove enough moisture from the final product so that spoilage organisms cannot grow.
When you dry foods, remember the following:
  • Cleanliness and sanitation are essential.
  • The flavor of dried fruits and vegetables will be somewhat different from that of their fresh, canned, or frozen counterparts.

Sunday, February 28, 2010

Instant Oatmeal Packets

Our household is super busy (like most) in the mornings.  These quick little packets are super inexpensive, really fast, and the kids love them.  They are a great way to get out of the house in a hurry, with a yummy breakfast.  They are a fraction of the cost of store bought.
Instant Oatmeal Packets
Makes 10 packets of instant Oatmeal

To make individual instant packets:
Blend 1 1/4 cups oats until powdery.

Into each of the 10 packets (we use ziplok sandwich bags), combine the following ingredients:
  • 1/4 cup unpowdered oats
  • 2 TB powdered oats
  • 1/3 tsp salt
  • 1 tsp sugar (optional)
Close the top and store in a dry place.

Microwave directions for cooking:
Empty packet into microwavable bowl.  Add 2/3 cup water or milk.  Microwave at HIGH about 1 1/2 minutes; stir.

Conventional directions for cooking:
Empty packet into pan.  Add 1/2 cup boiling water; cook and stir over heat until thickened.

Variations:  Also delicious with dried apple chunks and cinnamon; nuts and raisins; brown sugar..... Use your imagination!

Friday, February 26, 2010

Financial Peace University: Week 3: Cash Flow Planning

This week in our Financial Peace University class, we learned about "Cash Flow Planning", or in other words, the big B word..... BUDGET!!  It is so true, if we don't tell our money where to go, and what to do, it disappears. Money that has a name, and a purpose, on paper, goes farther.  I was surprised how many of our class have never kept a budget.  The problem with not keeping a budget, is that debt slowly creeps in.  Money is not accounted for, and problems begin.  With a budget, every dollar is accounted for, assigned a category, and planned how it will be spent before it ever even comes in.

Some key points from this week’s lesson:
  1. Spend all money on paper before the month begins. You don’t want money not being allocated, and then “disappearing”.
  2. Use the Envelope System for successful cash management for food, clothing, entertainment and other categories that are easily overspent.
  3. Give your budget 90 days to really start working.
  4. Plan on a fight as you do your first budget.  However, if married, each partner has a vote!!
Budget Committee Meetings:
Last week we talked about "budget committee meetings" and how each partner is responsible for the budget.  Nothing is spent that is not in the budget without an emergency budget committee meeting.  Dave said the first month you will have a whole lot of emergency budget committee meetings, but as the months progress, and we get better at our budgets, those meetings will be fewer and farther between.

Zero Based Budget
The type of budget that Dave recommends is called a zero based budget.  If you are new to zero based budgeting, click here for a detailed post how to do this. Basically, you spend EVERY dollar on paper before the month begins.

The envelope system:
After setting up your zero based budget, the next step is to setup your envelope system of budgeting for certain spending categories. If you have never used an envelope system before, basically it boils down to this:  At the first of the month, you put the budgeted amount of CASH into envelopes marked with certain categories that are easy to overspend.  For us, the envelopes we use are food, clothing, entertainment and blow money.  Simply get an envelope, take a sharpie marker, mark what category it is, and fund it with cash.  When the money is gone, it is GONE.  Overspending is virtually eliminated.  If you do need more money for that category, the money must be taken from another envelope, or another spending category. There is no free money, it has to come from somewhere!

Here is an excel spreadsheet to walk you through the zero based budget.  The fields highlighted yellow are good ones for cash envelopes.  My husband and I have done zero based budgeting for years. I love it!! It seems that money is found, and can be applied to whatever baby step in the plan you are on.  I can't imagine not living on a budget.
Click here to download excel version.

Tuesday, February 23, 2010

Financial Peace University: Week 2: Relating with Money

Last week I reviewed week 1 of Dave Ramsey's Financial Peace University.  In review, week 1 talked about the importance of:
  • Savings must become a priority.
  • You must save for an emergency fund, major purchases, and wealth building.
  • Decide and agree with your spouse on what qualifies as an emergency.
We have quite a large group attending, so I decided to split the class into 2 groups for discussions.  That seemed to be more manageable.

Week 2: Relating with Money
This week the topic of discussion in class was the importance of working together in relationships and how we as individuals handle money differently.  While the number 1 cause of divorce is money matters, this lesson I thought was particularly useful.   How we manage our money can affect our personal relationships, especially with those who we are closest with.  One spouse may be more of a "nerd", one who has a natural tendency for budgeting, enjoys it, and likes to work numbers.  The other spouse may be what Dave Ramsey calls "a free spirit", who does not like to think about budgeting, does not enjoy it, and likes to pass it off to the "nerd".  When two opposites in money matters are together, there are bound to be problems.  This is why it is important to learn to work together, and find common ground.
Some key points from this week’s lesson:
  1. Men and women think very differently about money. For men it is often more of a tool, something to be used. Men like to negotiate.  Women like to hunt for the deals. For women it often means security.
  2. The nerd and free spirit must learn how to work together.
  3. If you are single, find an accountability partner with whom to discuss your finances.
  4. Teach your children how to manage money so they avoid our mistakes.
Budget committee meetings
Dave Ramsey talks about the need for family “budget committee meetings” where both partners in the relationship talk about the monthly budget, and have a stake in it. More than once in the presentation, Dave asks, "Who is responsible for the budget?" You both are!!

Dave Ramsey states: "The challenge in a marriage is to work through the different identities, ideals and values you each bring to the relationship. You win at marriage by losing your need to get your way in every battle. You get a happy marriage by giving up selfish desires in order to win together—you create shared visions and goals out of your own individual goals!  That’s why it’s important that both spouses be involved with creating the monthly budget. The partner with the natural gift can prepare the budget, but the decision-making must be done by both of you. When you sit down with your spouse to have a budget committee meeting, there are three rules that each of you must follow.
Rules for the nerd:
  • Listen.
  • Take input.
  • Keep it brief.
Rules for the free spirit:
  • Show up.
  • Give input.
  • Be realistic.
Remember that opposites tend to attract in marriage, so work together for maximum wisdom. When you have a budget that reflects both of your goals and ideals, you will experience fabulous unity in your marriage."

Sunday, February 21, 2010

White Bean Chicken Chili

This is soooo good!  It is a great way to use those dry beans, canned corn, canned chicken, etc!  And, it tastes wonderful.  It also freezes well.


White Bean Chicken Chili
Ingredients:

2 tablespoons vegetable oil
1 pound diced, cooked chicken meat (or 1 pint canned)
1 onion, chopped
2 cloves garlic, minced
2 (14.5 ounce) cans chicken broth
1 (16 oz) jar Salsa Verde
1 (16 ounce) can diced tomatoes
1 (7 ounce) can diced green chiles
 1/2 teaspoon dried oregano
1/2 teaspoon ground coriander seed (opt)
1/2 teaspoon ground cumin
2 (15 ounce) can white beans, drained
2 ears fresh corn, or 1 can corn
salt to taste
ground black pepper to taste

Directions:
  1. Heat oil, and cook onion and garlic until soft.
  2. Stir in broth, salsa verde, tomatoes, chilies, and spices.  Bring to a boil, then simmer for 10 minutes.
  3. Add corn, chicken, and beans; simmer 5 more minutes.  Season with salt and pepper to taste.
  4. Serve with these toppings for people to choose from: limes, cilantro, cheese, avocado, sour cream, and either corn chips or broken up tortilla chips.
Note:  If you want to use dry beans, soak overnight, drain, and in a crock-pot, put in the broth, onions, tomatoes, salsa verde, beans and spices.  Let cook during the day.  Just before ready to serve, add chicken, and corn.  Heat through.


Friday, February 19, 2010

Multi Grain Rolls

This was a recipe generously shared by Chef Adalberto Diaz Labrada, UVU Culinary Arts Instructor.  Yummy!!
*This recipe uses weights, instead of measurements.  Make sure you have a kitchen scale handy!


Multi Grain Rolls
Dough:
2.5 lbs bread flour
1.25 lbs whole wheat flour
2.5 lbs 68 degree F water
1 oz instant yeast (or 2 oz fresh yeast)
8 oz brown sugar
1 oz salt
2 oz rolled oats
2 oz wheat bran
2 oz sunflower seeds

Directions: Put water in mixer, and add flours, yeast, sugar & salt.  Mix for 4 minutes on low with dough hook (level 2 on KitchenAid).  Turn up 1 speed.  Mix for 4 more minutes.  Add oats, bran and sunflower seeds.  Mix on low for 2 more minutes (level 2 on KitchenAid).  Cover with Saran sprayed with Pam, and let rest for 30 minutes.  Without working the dough any more than necessary, form into 2 oz rolls.  You can dip the roll in water and then dip in a mixture of oats, bran and more sunflower seeds if you wish.  Let raise until fingerprint remains in dough when indented.  If you want, you can use a very sharp knife to score the rolls in a #.   Bake at 425 degrees F. for 10-12 minutes, steam first 5 minutes*.  Remove from pan to cool.

*To steam:  When you turn on the oven to preheat, put an empty pan on the bottom shelf.  Leave there to preheat.  Right before putting rolls in, throw some crushed ice on the pan to create steam.  Hurry and close the oven door.  You can also spray water on the oven walls to create steam.

Wednesday, February 17, 2010

Chocolate Cake in a Mug


This fun idea came from my sister.  She is always so clever!  My kids LOVED them!
CAKE MIX:
  • 1 package (18.25 ounces) chocolate cake mix
  • 1 package (4 servings) instant chocolate pudding mix
GLAZE MIX:
  • 2-2/3 cups confectioners' sugar
  • 1/4 cup powdered cocoa mix
  1. In a large bowl, combine the dry cake and pudding mixes; blend well with a whisk.
  2. In a medium bowl, combine the confectioners' sugar and cocoa mix.
  3. Divide the cake mix evenly into 8 small plastic bags, about 1/2 cup each; seal and label "Cake Mix." Do the same with the glaze mix, packing about 1/3 cup mix in each bag; seal and label as "Glaze Mix."
  4. Set aside to make individual microwave Fudgy "Cup" Cakes (below) any time you want, or pack the mixes to give as gifts (below).
Making a Fudgy "Cup" Cake: Spray the inside of a microwave-safe mug generously with nonstick cooking spray. Pour prepared bag of cake mix into the mug. Add 1 egg, 1 tablespoon vegetable oil, and 1 tablespoon water. Mix until all the ingredients are combined. Microwave at 100% power for 2 minutes. Meanwhile, place prepared bag of glaze mix in a small bowl and add 1-1/2 teaspoons milk; mix well then pour glaze over the mug cake immediately after removing it from the microwave. Serve cake warm in the mug.
Giving Fudgy "Cup" Cake Mix as a Gift: Place 1 sealed cake mix bag and 1 sealed glaze mix bag into a microwave-safe mug, and attach the recipe for making a Fudgy "Cup" Cake (above).


Monday, February 15, 2010

Why We Must Prepare

 This is something that I found on a nearby LDS Stake Emergency Preparedness Website www.pgward.org.  I thought it was very educational and definately worth sharing: