The Budget

I realise it may look like I've abandoned my New Year's Resolution - but this is not the case! We've been focusing on one big thing lately, the budget. When you think about it, living providently boils down to one major item and that's it, isn't it? At least, it is for us. Learning to live below your means is the key to provident living. I'll say it again in case you missed it the first time...

Learning to live below your means is the key to provident living!

When you live below your means you will find there is an abundance that can be used on things that are truly important to you, whether that's paying off debt or putting cash into savings or purchasing food storage or emergency preparedness items or even finally getting that long-overdue home repair project finished. You really can have what you want in life, you just have to prioritize and then work to get there. It won't happen on it's own.

I've procrastinated blogging about "The Budget" because it isn't really a very "sexy" thing to blog about, if you know what I mean. I'm not sure how many of my readers are just dying to learn how I budget. But for today, I'm going to pretend that you are.. so let's get started!

Back when Bryan got his first job out of college and we had been married about 5 years, we realized that when he got a real paycheck we were going to feel like we were rolling in the dough. Although his paycheck was meager, it would be so much more than we were used to getting and we were afraid we would begin spending frivolously and waste it away. We began with a program called "Rich on Any Income." It was a great program, but is no longer in print. Still, here's the premises.

#1. Pay your tithing first so you can have the Lord's blessings available to you when you go to meet your other financial goals.

#2. Set up an itemized monthly budget showing exactly how much money you need for various items. Now, when you're first starting this, it may take a couple of months to tweak exactly how much you need in each category. The program claims that it takes 3 months to really learn how to do this and I'd agree, so stick with it! Here are the categories Bryan and I have in our budget most months:

Tithe and Fast Offering
Mortgage Payment
Truck Payment
Insurance
Utilities (this includes everything from electric, trash and water to YMCA dues and Bruce's piano lessons)
Food (this is only money I spend at the grocery store - no fast food or eating out goes in here)
Cleaning and Laundry Supplies
Diapers and Wipes
Formula
Medical (this includes prescription medications plus money for us to pay co-pays in case we'd need to take someone to the doctor)
Gifts (in case there is a birthday we need to buy for)
Recreation (this would include ANY recreation for the family from eating out to renting a movie)
Clothing (in case one of the kids needs new shoes, or someone needs jeans, etc.)

Now, when you're setting up the exact amounts you need you'll probably find that there's not enough to go around. Well, guess what? That's why you've been running out of money all these years and having trouble making ends meet. Don't worry, it happens to the best of us. Guilt is only a short-term motivator so shake it off and let's move on. When you add up the amount you need and you find that you're out of money, go back and tweak it. Can you shave $20 off the grocery budget? You may realize that you actually can't afford things you feel aren't a big deal - like cable TV, or a cell phone. Maybe you need to get rid of the land line all together if the cell phone is cheaper. Maybe you need to cut your gym membership or... STOP EATING OUT!!! This is a big one for a lot of people. They think they can pick up a soda several times a week, or just order off the dollar menu. Well, it really adds up. We've found that it's the little things adding up over the month that do the most damage.

Be creative about figuring out how to make ends meet. This month, we wanted to install an air conditioning vent in Hyrum's room - so we only had $40 total for recreation for the whole month for the whole family. That's $40 for six people for a whole month. We only ate out one time the entire month - we chose pizza buffet - and we rented some dollar movies. That was it. That may sound like it wasn't much but we found plenty of free fun things to do as a family, AND that vent is FINALLY installed and we didn't break the budget to do it!

#3. Once you've got your budget in place the final step can be a hard one to learn. It's called self-discipline. Have you heard of it? It's a tricky little thing. We've found that the key to success is two-fold. Part one: Be on the same page as a couple. You have to do this together as a couple or it won't work. Discuss your real goals - is it a family vacation this year? Do you want to finally pay off that dreaded student loan? If your children are old enough, involve them and make it a positive thing. I explain to my kids that the budget is fun, that it's like a game and you have to work hard to make everything fit. When they asked to go see an expensive 3-D movie this month I explained to them about the budget and they weren't dissapointed at all. They said things like, "Maybe next month," or "We could even wait until it's on DVD and rent it! That would be fun, too!"

Part Two for making it a success: Meet together often to go over the budget. This is a MUST. In the beginning, you may realistically need to meet a few times a week or even every day. We write our receipts down in the checkbook and then itemize them in the budget. If I went to Wal-Mart and bought milk and diapers, I then record the diapers under the Diapers and Wipes category and then find the remaining balance in that category, then record the amount of the milk under the Food category. We've found that the longer you go between reconciling the budget, the more money you think you have left. It always seems better in your head and it's hard to face reality on paper.

For some people, they choose to use an envelope system and put cash in various envelopes. For example, if they have $100 a week for groceries, they take an envelope with $100 in it to the grocery store. When they run out of money, they're done for the week. Oh, making a menu and planning out your meals and snacks is also very important. If you're dining on the fly, you'll invariably end up spending more. Plan for some fun, new meals but also the old standbys that are cheap and nutritious.

For me, I go to Aldi first and buy what I can there. Then, I tally up the remaining balance I have to get the rest of my groceries at Wal-Mart. I keep a running tally as I shop there, placing items back on the shelf as I run out of money and choosing which things I really need and which we can do without.

If you have to go without something, you WILL find a way to make it work.

For example, if I can't afford hamburger buns for grilled burgers, I will realize that I can find a recipe and make them myself, which turns out to be a fun and delicious experience for the whole family. When I didn't have enough money left in the cleaning budget for the facial cleanser I love, I found that my Ivory soap at home worked just the same.

Basically, when it comes down to the budget, self-discipline really is key. For many people, I believe that if we can exercise self-discipline and choose to do without things that don't really matter - like treats (whatever that means to you - dining out, renting movies, drive thru, etc) - you will find that there really is an abundance there to use on what you really want. I think we often mistakenly feel we need to find a way to earn MORE money, when in reality if we can cut back, what we need is already there. I guess it just depends on how bad you want it, and how hard you're willing to work for it.

While it's not fun in the moment to choose to put something back on the shelf, or to choose to go without something you think you really want - coming in under budget and spending money on things that will lead to financial security is a FAR sweeter feeling than the rush of instant gratification. Trust me!

And one final thought: Try fasting and prayer about the budget. It really works. I really do understand that it's hard to stick with it the whole month through. Fast and pray as a couple at the first of the month and continue to pray for guidance with your expenditures through the month and you CAN do it! I promise you!

If anybody has any budget tips or tricks, please comment! Any questions?