Makeover in progress....

Assalaam Alakium ladies!

How's your day been? Alhamdulliah, mine has been great! As stated in my previous post, I was flipping through David Ramsey's book The Total Money Makeover. Well I've finished "flipping" and wrote a few quick notes that I'd like to share with you all. 

First of all, I'd like to state that in Islam being debt-free is a Sunnah. We all know that Riba (interest) is forbidden and most of all debt has interest attached. It is encouraged in Islam to pay off debt as swiftly as possible. Here are a few hadiths (sayings of the Prophet, peace be upon him):

"Narrated Salama bin Al-Akwa: Once, while we were sitting in the company of the Prophet, a dead man was brought. The Prophet was requested to lead the funeral prayer for the deceased. He said, "Is he in debt?" The people replied in the negative. He said, "Has he left any wealth?" They said, "No." So, he led his funeral prayer. Another dead man was brought and the people said, "O, Allah's Apostle! Lead his funeral prayer." The Prophet said, "Is he in debt?" They said, "Yes." He said, "Has he left any wealth?" They said, "Three Dinars." So, he led his prayer. Then a third dead man was brought and the people said, Please lead his funeral prayer." He said, "Has he left any wealth?" They said, "No." He asked, "Is he in debt?" They said,  Yes, He has to pay three diners.", He refused to pray and said, "Then pray for your dead companion." Abu Qatada said, "O Allah's Apostle! Lead his funeral prayer, and I will pay his debt" So, he led the prayer."

Narrated Abu Huraira: "The Prophet said, "Whoever takes the money of the people with the intention of repaying it, Allah will repay it on his behalf, and whoever takes it in order to spoil it, then Allah will spoil him."

We all see the importance of paying debt in Islam. Now I'd like to give a few of Dave Ramsey's tips. Note: I won't be posting too many details because I don't want to take away from Dave Ramsey. If you can, I recommend buying the book to get a detailed explanation. 

First of all, write down all of your debt from smallest to largest. Then pay off your smallest debts first. This way you get an emotional response to paying off debt and feel that you can do it. 

Once you have written down your debts and have started paying them down, write out a budget. Be detailed as possible! After this, save $1,000 for an emergency fund. This is only for emergencies, not that new Ipad3 coming out! Once you're debt is being paid off start saving enough money to last you 3-6 months of expenses and add that to the $1,000 emergency fund. This is for an emergency, for an example if someone loses their job. This money is used to pay bills and bills only. 

Once you have conquered these steps you are on your way to debt freedom! It's really that easy. It takes some planning and organizing to accomplish but it'll be a great feeling when you finally have ZERO debt. Another quick tip is to implement the "envelope system". Divide your expenses into categories such as food, gas, clothing, entertainment. Get an envelope for each category and put a certain amount of money in each envelope. Once the money in that specific envelop is gone, you are done for that month or pay period. Any money left, put in savings. 

I hope this helps some of you and if you are doing this now, please share how this is working for you and your family!

InshAllah, in the future I'll be posting updates on the Writer and I's budget and "Total Money Makeover".

Have a great day!

Wasalaam,

~Hijabi Butterfly~

Budgeting

Assalaam Alakium girlies!

Sorry, I didn't post anything yesterday. Not much was going on and I didn't want to post just anything. Please forgive me? =) Today, I'm at my Wednesday spot, Barnes and Noble! I'm looking around for some budgeting books and may read a chapter of The Hunger Games. Have any of you read it? I'm not sure if I should buy it or not. Cheapo ova here. hehe

It's a rainy day here in Houston and it's my mom's birthday today! She will be getting a call from her favorite daughter! Favorite, only because I'm the only daughter hehe. =)

While I'm here at Barnes and Noble I'm looking through Dave Ramsey's book The Total Money Makeover. I've read and watched reviews on this book and thought I'd give it a look through. The Writer and I have accumulated some extra debt due to tax time. The Writer worked at a non-profit organization so we have to pay taxes as well as some other stuff we weren't expecting. It's time for us to get our money right and start a "real" budget. So far, our budget has just consisted of writing down the bills, when they're due and how much they are. Any extra money is free game and we end up at the end of the month thinking, "where did all that money go". Needless to say, we don't want that happening every month. 

I also found a nice budgeting notebook at Target the other day. It was full of budgeting forms and had everything already organized so I think I may go get that as well. Can you tell I like forms and organization? My life seems so much more put together if I am organized and have a solid plan. I'm a planner, fo sho. 

The Writer and I are wanting to buy a second car and pay down some debt so inshAllah these tools will help us succeed at that. We both hate interest but sometimes it's impossible to get around, unless you have a rich uncle, which neither of us do! hehe

I'll let you all know what I think about Dave Ramsey's book and if I like it I'll add a few tips or something as well. Have a great day and I'll (inshAllah) be back later with another post. 

Wasalaam,

~Hijabi Butterfly~

To Rent or To Buy?

Taken in the early morning from my balcony. 

Assalaam Alakium!!

How are you all? InshAllah it's been a relaxing Sunday for all of you. The Writer and I just got back from visiting my in laws. They are in the process of buying a house. It's been a long time coming for them and inshAllah they'll find something that fits their needs soon. Ameen.

The Writer and I, on the other hand, just signed a new lease to our apartment today. There are definitely pros and cons to renting and buying. Personally, I like renting especially since the Writer and I are a pretty young couple and don't have any kiddos yet. I like renting because I can just call maintenance and have someone come and save the day, for nothing. When you buy a home you have to do all the repairs by. your. self. We aren't too handy over here. Buying is nice though because you don't have to follow strict rules and can pretty much do what you want to the place. A definite con in buying a house for me is the interest or riba thang. Not to into that. As Muslims, we know to stay as far away from interest as possible, but we all know that can be pretty tough.

It can be hard sticking to the no interest/riba thing, especially in buying a home. Here in the United States, it's near impossible to buy a home without interest attached, unless of course you're buying the home straight up which not too many people can do. We all want to feel secure and have a place to call home, a place that is actually yours to do what you please with. The question is: Is it worth it? Is it really worth buying a home and having to live with interest knowing that Allah hates it? It's a tough thing to face for sure but Allah is also the Most Forgiving and inshAllah he'll forgive those of us who are sincere in our repentance.

What do you all think about the interest associated with buying a home?
To rent or to buy, which side are you on?

Have a good rest of the night!

Wasalaam,

~Hijabi Butterfly~