Budget. The word alone sends chills to many people. Here are some things that people equate with budgets.
Budget = Restricting
Budget = I Am Broke
Budget = Controlling
Budget = No Fun
Budget = Constricting
Budget = Not going to do it!
Most people have tried budgets ... and failed! It was a bad experience, and many will say that they aren't EVER going to budget again.
I want to make a deal with you. How about reading this series of posts for the next week? How about trying for just one month this method that I will teach you? How about giving one shot? Just one. My hope is that you will try a budget for the month of November,
In this series of posts, I am going to share with you the exact process that Jenn and I took to prepare a budget that works. Guess what? THE VERY DAY that we started budgeting was THE VERY DAY that we started WINNING WITH MONEY!
Some might say "I hate budgets" and "I don't need no stinkin' budget", but I would ask them the following questions:
* How are you paying for Christmas this year? I am paying cash.
* How much is your car payment? I paid cash for my car.
* How much did you invest this month? I have invested for retirement for over 130 months in a row and my daughter's college for over 60 months in a row.
* How much money do you owe to your credit cards right now? I owe $0.
* When is the last time you had a great discussion on finances with your spouse? Not a fight. A great discussion. Jenn and I develop a spending plan TOGETHER every single month.
* If your car broke down tomorrow, do you have money in the bank to pay for it? Car repairs are not financial emergencies. I am not surprised when my car breaks down. Why? There is a car repair joint on every corner of every street of every town and city in the country! It is normal for cars to break down!
At the end of this series, some might call me crazy. Some might call me insane. Some might call me a wacko. I would say to them - call me whatever you want, just don't call me broke anymore!
You see ... I Was Broke ... Now, I'm Not!
How do I budget? Part 01
October 23rd, 2007 at 01:31 pm
October 23rd, 2007 at 01:45 pm 1193147144
I am having a cash Christmas this year.
I owe nothing on credit cards.
We discuss finances all the time.
I do have cash for unexpected things.
I don't have much invested.
I don't invest for college.
I did not pay cash for my car, but pay way more than my note every month.
Looking forward to hearing what you have to say. We all learn something new every day.
October 23rd, 2007 at 01:53 pm 1193147584
I am paying cash for christmas, no car payment since I currently have no car(mass transit is a wonderful thing), sadly I only invest $100 this month since I am currently paying off credit cards from my previous misbehaving self (currently about 18k, unfortunately), my spouse and I now talk about finances multiple times per month, and again no car, too expensive when one is paying off credit cards and saving for a down payment for a house.
Would love to hear how you do a budget though, I have been through a couple already as I pare down my expensive habits.
October 23rd, 2007 at 04:36 pm 1193157370
October 23rd, 2007 at 05:02 pm 1193158932
* How much is your car payment? We have no car payments. Both cars are paid off. My 98 Camry had a loan but it was repaid years ago. Our 2000 Sienna had no loan.
* How much did you invest this month? Every month, we fund a couple of taxable mutual funds, a 529 plan, my wife's 401K and Roths for both of us. We also make extra principal payments on our home equity loan.
* How much money do you owe to your credit cards right now? I owe $0.
* When is the last time you had a great discussion on finances with your spouse? We discuss our finances all the time and work together toward our goals.
* If your car broke down tomorrow, do you have money in the bank to pay for it? Absolutely.
I look forward to reading your entries.
October 23rd, 2007 at 06:39 pm 1193164759
I also pay my holidays in cash. I am still contributing to my 401k, I am currently tackling my student loans, and if my car broken down, I have the savings to repair or replace it. The only thing lacking is meaningful conversation with a spouse. Then again, I'm divorced, so that's that.
October 24th, 2007 at 01:23 am 1193189018
October 24th, 2007 at 12:26 pm 1193228805