BP Money: Eliminating Over $30,000 in Debt w. Rosemarie Groner

19 Replies

The latest episode of The BiggerPockets Money Podcast is now live! 

Today, we chat with Rosemarie Groner from The Busy Budgeter. Rosemarie Groner was a state trooper—a good, recession-proof position. But chronic disorganization had led to more than $30,000 in consumer debt, when she made the decision to quit her job to stay home with her first child.

In this episode of the BiggerPockets Money Podcast, Rosemarie shares how she cut $23,000 out of her spending, paid off her debt in less than four years, and grew her income to the point that her husband could also quit his day job.

Rosemarie gives you actionable tips for establishing routines that will help get you organized so you can focus your energy on your budget—not your day-to-day tasks.

Mindy this is a most important subject and very germane to the newer BP members looking to get started.. good for you for recognizing the importance of getting ones financial house in order.

I completely agree with @Jay Hinrichs ! Budgeting is of the utmost importance. Whenever someone asks me for investing advice, my first question back to that person isn't about yield or return, it's really "Is your house in order?" And what I'm getting at really encompasses everything from taxes to insurance, but above all...budget!

Excited to give this episode a listen!

I'm really glad you're doing these personal finance podcasts. I'm passionate about the power of understanding finance. Far too many people do not understand basic financial concepts. I'm sure your podcasts will help plenty of people!

This is great to know. I am going to check out this podcast. 

What do you guys personally recommend doing in order to get your situation in order? I have been keeping track of expenses on a spreadsheet and keeping the numbers positive.

I am one who has a lot of credit card debt but wants to jump right into REI, I know the right way to invest will be getting my house in order first the REI. looking forward to this podcast..

I liked this episode. The truth of the matter is that I went through a very similar process when I was getting started and paying off debt. Budgeting is a dirty word to so many people, but I absolutely love it. Basically you are weeding out the wasteful spending in your life.

Just as an example, I recently went through my personal finances and saw several efficiencies and improvements that will save me $150 a month ($1800 per year) with absolutely no lifestyle changes. It more had to do with lingering costs from services that I no longer use, or that I could greatly reduce.

I also agree greatly with food costs being one of the places where you have the most ability to see great savings. Though I personally do not like Aldi and could never do all of my shopping there, I do buy things in bulk and do a lot of cooking and preparation at home.

On top of that I am a health and fitness buff, so cooking at home allows me to eat a very healthy diet.

A point that she made was that they would buy lots of groceries then still end up eating out in the beginning. Well I had that bad habit as well. What changed that was when I decided to really try some unique and interesting recipes.

One point that was somewhat discussed was time efficiencies. By planning out meals, chores, shopping, etc, your time becomes optimized and you have more time for doing the activities you enjoy. I saw the exact same thing.

I found this information very helpful. Not only in the personal level but for a foundation of a business. Having the opportunity to reach successful people in many areas of real estate I introduce my self. My name is Maria Estrada. Work as a school counselor for many years and I want to do something new. I am about to start a new business as a wholesale. But I don't have a clue on how to start. Any help will be appreciated.

Originally posted by @Cody Evans :

This is great to know. I am going to check out this podcast. 

What do you guys personally recommend doing in order to get your situation in order? I have been keeping track of expenses on a spreadsheet and keeping the numbers positive.

Hey Cody.  Your process is perfect and gets you ahead of 95% of the population.  If you are not measuring it, you can't manage it.

You may want to consider the following:

  • Automate your tracking using free programs such as Mint or Personal Capital
  • Check out The Millionaire Next Door and Your Money or Your Life books
  • Write down what's important to you (regarding the F's...family, friends, faith, financial, fitness, etc.)
  • Make daily purchasing decisions that align with the prior bullet

For most people, the last two bullets are completely misaligned.  We buy a lot of stuff that does not align with what's important to us and, in the process, sacrifice happiness.  Being intentional about spending is not deprivation...it's the opposite...it provides freedom.  Now if I could only convince this fact to the rest of my family...

It's nice to see BiggerPockets branch out into personal finance. Sooner or later, hopefully, BP will be the number one business, entrepreneurship and finance site, not just the number one real estate site.

This is one subject that should be discussed at length. Eliminating recurring consumer debt to a manageable level if not completely, and budgeting.

For example, clearing that $800 in CC debt or personal loan is better than seeking a property with cash flow of 300 dollars.

Starting from a lean budget with a 3-6 month emergency fund is more plausible.

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