MMMoney Moday!

Another Monday! Someone asked last week about how exactly we do our budget. Oh, it's super-technical, peeps. Nooo way can you handle this if you're not way intelligent and the possessor of genes full of financial guru-ness. (Was the sarcasm heavy enough? Hope so.)

Actually, we're simpletons as far as this goes.

We follow everything with our money with Quicken, and have done so since the first week we were married. Neither of us has a written register, we just put our receipts by the computer when we get home, and enter them in to Quicken. I balance our account online every couple of days so it's never a big task and I keep and eye on our account to see if anything fishy is going on, and that it always balances.



We know exactly where our money comes from and where it goes (largely in part due to Quicken's ease of use).

• When we set out to form a budget, long, long ago, we simply followed our habits closely in Quicken to see just how much we spend and where, to set reasonable amounts for spending. This is great for a lot of reasons, but one in particular (besides how organized it is) is that there is no hidden spending. Jim and I both know exactly where every penny goes, nothing is kept from either of us. Not only does it help us feel more like a team, but it also gives good accountability. Over the years, we've adjusted the amount we spend many times.
• From each paycheck we receive, We tithe, we save, we pay our bills, and then the rest is for spending, or hopefully even just hanging out in our account for a while. We get paid every 2 weeks, and always have, so that's how often I take out our money.

• We use the envelope system. Again- super complicated.... I have several envelopes, not all of which get used every time I get cash. I just decide what I need to take out of our account based on what's happening during those 2 weeks. Each envelope has a category. I spend out of the envelopes, and when the cash is gone, I either borrow from another envelope, or I just wait. I also never spend my change on normal purchases, and then I use it for spur of the moment small frivolous purchases, like Starbucks or taking the girls through Sonic for a slush if we leave the park around Happy Hour.
• We have a dining envelope and a gas envelope, but usually I don't take out cash for these unless I have a good reason. Basically, we don't drive for fun, so we just get gas when we need it, so I don't bother with cash for that, and we also don't eat out that often, maybe once a week at the most, and it really varies, so usually I don't take out cash for that either. Our motto on eating out is to do it sparingly, so we most often eat out as something fun to do, so the spending is limited- because we aren't eating out because of necessity very often. Planning a menu, by the way, really helps me be prepared so we don't get to dinner time without a plan too often. That really cuts down on quick trips to eat out.



• I also am flexible about spending with my check card when it seems appropriate and I don't have cash with me, like, if I find a super-good deal on something or a surprise comes up. I seem to do OK with that. I'm still more a spender than a hoarder, but Jim and I keep things in check pretty well, so it isn't much of an issue for us. I know of people who are way more hardcore about this than us. If you have a serious problem with over-spending, though, I'd suggest going to ONLY cash for a little while, just to get out of the habit. Sort of like how it's good to cut yourself off from sugar for a few days if you need to cut the addiction... You really feel the purchase when you use cash.

OK, I know you want to know, and it might even help you out, so, I'll get real with you and tell you exactly how much we spend on our top categories. The rest of the envelopes only get funded every once in a while.

For every 2 weeks, we budget...
$160.00 for Groceries
$100.00 for Household Items (Absolutely anything from stamps to batteries to deodorant to all purpose cleaner to a pillow cover from Pottery Barn.)
$20.00 for Diapers and wipes (Amen to the day that envelope goes in the trash. Maybe I'll burn it... There's a post for you...)
$20.00 for Education (Home school Supplies)

You can learn more about budgeting and the envelope system from Dave Ramsey or Crown. Both of these are excellent and have lots of good and free online tools to help you organize your spending, get a handle on your debt and create a budget.

Remember, it's all about telling your money where to go, because if it's going to go no matter what, you might as well be in charge. And for us, it's also about trying to be a good steward of all God's given us to use- because it's all His.

Happy Monday, one and all.