Pay Day = Budget Day

Yes, a budget! What is that? Do you have one? We do. We got it from a powerful/life-changing book and APPLIED IT! The book is: Total Money Makeover by Dave Ramsey. (You can get a copy for $10 @ www.daveramsey.com). (Young people get this book, you need it now, not later. Retirement is a real thing to plan 40 years in advance for!!!)

Here's the routine for our pay day here in our home: I get my husband's payroll check, STRAIGHT to the bank, deposit it, WITHOUT cashback at this point. Next, I go home, and double check my budget sheet that I created a couple days prior to pay day (just in case something has come up).

Here's what I do to prep for my budget:
Step 1: Gather up all bills from my special "Current Bills Due" folder at my desk.
Step 2: Fill in the dollar amounts in these catagories:

First are the things we pay by check:

• TBBC (money insurance, first right?...for some who don't know what this is: tithe)
• Additional Giving
• Life Insurance
• Mortgage pmt.
• PG&E
• Gas Co.
• Water Co.
• ATT
• Gardener
• Car Insurance
• Gym fees
• Debt (which we've wiped 1/2 to 2/3 out in the last couple years by sticking to a budget)
• Shakeology/BB Biz (now paying for itself, I may add)

These are the catagories that I get cash out for. The thought Dave Ramsey has is, take the cash out, don't use your debit card because, when you walk into Target w/ only $40 for the baby's diapers & formula, there's no cash leftover to buy that cute tank top 'on sale'. If it's not budgeted for, then don't buy it. Now if you NEED clothes, make a catagory & give yourself a budgeted amount & STICK TO IT! Here are the catagories that we pay cash & avoid debit card use on:

• Gas (a certain amt. for me/a certain amt. for husband)
• Groceries
• Toiletries
• Jacob's needs
• Daniel's meds/needs
• "Allowance for husband"
• Jen's phone (I seriously live on a pay-as-you-go phone. I use my home phone 99% of the time & save)

And that's it. There are times like this week, we have to add: Car Maintenance, and Clothing for Daniel. And month to month, there may be a Kaiser catagory, or a special thing like: Air Duct Cleaning, like we did this week.

The beauty of a budget is that you can start a catagory for an expense you know is coming in a month or two. Like this month, I'm saving for my suburban tags for July. I haven't received the bill, but I quickly look at my tags to see that they expire in July. So, I plan. This way a bill that is expected, is NOT a financial emergency.

I add up all the expenses, minus it from the income to confirm that I have enough. I always know what we have left over after all our needs are filled in. What to do w/ this money? Throw it at the debt, save for something you're going to need like: car, appliances, furniture. Why finance those things, when you can save & pay cash, get a better deal because people make deals for cash...and save yourself a ton on interest right? (GET THE BOOK & READ IT!)

So the budget sheet is filled in & the check is in the bank.

Step 3: Balance checkbook before I even begin paying out.
Step 4: Write out/pay bills.
Step 5: Make 'cash item list'.
Step 6: Go to bank for cash.
Step 7: Go shopping with my lists for Target/Walmart, Costco, etc!
Step 8: STICK TO THE LISTS! :)

This is how we live. Pretty simple & basic math. You don't need a BS in Accounting to live on a budget.

Now the key is to NOT spend all my grocery money at the store the first day I get paid so that in a week when we need fresh produce, I have CASH for that. There will be times that there's a little miscalculation in what I need, but I try so hard to NOT use my debit card.

The philosophy behind using the card is 'it's unlimited'. Oh, I have the extra $50 in the bank so I can buy this - thing I absolutely don't need & will only use/wear once.

If you do this budget, you will find that you DO have the money you need for the month typically. You tell your kids/employees what to do, why not tell your money where to go & what to do so that you control your spending!

I might point out that I am strategic w/ my bill paying too. Say we get paid the 1st, so the bills due from the 9th thru the 23rd, I pay the first week of the month. The bills due from the 23rd to the 8th of the next month, I pay at our mid-month pay day. This way my bills are ON TIME. The wonder of this is, I only sit down & balance my checkbook 2X/mo., always aware of what I have - this avoids ISF fees, right? And I only pay my bills 2X a month, never wondering when a bill is coming in or if I'll have enough. This provides me peace of mind, and more time w/ my kids. I avoid: paying as I go, trying to always find time every couple days to sit alone & scream at the kids as I try to crunch number to make sure some money is there for this one bill, right? Who wants to do that 2-3 times per week? This budget system keeps my time managed better too. I know what days are pay days, so I build time into my schedule to do all this in advanced.

This is how we live and we live pretty stress-free over finances. We know we make enough to live on. Now, if we are broke & in a bind, who's responsible? It's easy to figure out in a quick discussion :) So I try my hardest to tell myself & KIDS "NO" so that we can have some peace & liberty in our lives.

My Thoughts on Thursday - "NO" buys you LIBERTY

I've met with a couple of very business-minded, financial planning individuals this week and we engaged in great challenging conversations. I thought for today I would throw out some of the things we discussed. Now, for the sake of my feelings, don't personally attack me, but just hear me out and then think about it for a day or two, and then email me your thoughts.

Now, in no particular order, here are taglines of conversation topics:
1. People are not planning for their retirement.
2. Healthcare WILL be the biggest expense when we retire (there will be no Medicare).
3. People are living longer. (Their meds are keeping them alive).
4. Most seniors are on blood pressure, cholesterol, and diabetic meds. (These ailments are preventable.)
5. Young people do not realize they need to save a.s.a.p. for retirement.
6. Most people do not have money to save.
7. These people do not have a written out budget.
8. Most people spend their money unwisely & impulsively.
9. People want fancy things now and will live in debt to have them.
10. People do not have financial goals.
11. People do not have fitness/spiritual goals.
12. People glorify eating bad at buffets, drinking all night, hangovers.
13. When you talk about healthy eating/budgets/self-discipline, many react defensively.
14. 65% of Americans are obese/overweight - fact!
15. Healthy Eating and Exercise can change that fact.
16. All it takes is goals, self-discipline, and the right program.
17. It's necessary to tell yourself 'NO'.

This is just a brief list....and I'll expand on #17: It's necessary to tell yourself 'NO'....Think about it, our parents told us no, we tell our kids no, God tells us no...because if we/or our kids were allowed to do everything we/they wanted, where would that land us. Really, think about it.

Somewhere, when we grew into adults, we decided that doing whatever we wanted, buying whatever we wanted, and eating whatever we wanted was what being an adult was all about. "Now that I'm an adult, I can do things my way". And where has that got us? That's got our nation in debt, into foreclosures, 65% if us obese/overweight, arrested, divorced, etc. Isn't it time that we shift our own mental paradigm and began to say no to our appetites, spending urges, addictions and start making decision that move us closer to true freedom.

Are we really free when we need 3 meds to keep us alive? Are we really free when we have to work 2 jobs to just keep the lights on? There is freedom in the simple life. There is freedom in telling your impulses "no". Tomorrow, I'm going to give you our personal written budget catagories (minus the $ amounts). Use it as an example of how YOU, yes YOU can structure your finances in a way that's uses them wisely. This way you can afford freedom in your life!