Small successes in finances

I'm so excited to be able to say that I paid off a small store card!!

My mom read a Dave Ramsey book a few months ago and gave me this piece of advice gleaned from it: Make a list of all of your bills in order from least amount to most, then pay off the least amount as quickly as possible. Then, when that one is gone, use the money you were paying on that bill to also pay it on the next least bill.

For example: if you have a bill that is $100 with a minimum payment of $25 and a bill of $200 with a minimum payment of $30. (continue paying the minimal amount while paying off the first one. Don't stop paying!) Once you pay off the first, start paying $55 on the second. You are already used to living without that extra money, so use it as an opportunity to pay down the principle of the next bill. This way you will be debt free that much faster.

I have 2 small bills and a larger one, as well as a moderately sized car loan. I paid off the first of the 2 small bills this week! The final balance was about $55. The minimum payment is $25. I can live without the extra $30 this week, so I took the opportunity to just pay it off and be done with it!

It's something so small in the grand scheme of things, but it feels great to be a little more free than I was last week!

Next I tackle the other small one. It's around $110. I want that one to be gone in about a month. It seems like an attainable goal.

I am learning budgets, and I hate it, but I can see how it is so necessary. I don't do a formal, spreadsheet budget or anything, but I make a list of my bills, and necessary expenses. And then I set aside a little fun money. So I make a list of bills, tithe, gas, groceries, stuff like that, and I take that amount out of the bank immediately. I do better with cash because I can see easily how much money is left, and not get caught without enough to cover a forgotten debit charge.

Do you have any advice for me when it comes to budgets and becoming financially wise? I would love to hear it!