7 Aug
Developing the Perfect Monthly Budget
I remember the summer vacation we finally got cable television. Not for what I did, but for what I didn’t do. Oh my gosh, I became a lazy goober sauntering from kitchen to couch, cereal bowl in hand, ready for another eight hours of whatever was on.
It wasn’t until much later I realized what a waste being so lazy that summer was, but since I was 9 I didn’t feel all that bad.
I am proud to tell you The Wife and I have been anything but lazy with our budget these past months. That’s why I have been so surprised lately with several friends and acquaintances who do not do a new budget every month.
“Budgets never work for us, something always goes wrong.”
“I think we have to redo our budget. This one is from April”
“We don’t have time to change it all the time.”
Well, “Yes, it does. Yes, you do. And you’d better make time!”
Every month, usually about a week before the first, I spend 30 minutes or so filling out the allocated spending sheet, print it and sit down with The Wife to go over each entry. Without fail she finds something I forgot or adds an item I didn’t know was coming.
The whole thing takes about an hour or two, but has gotten faster as we get better at it.
Making a new budget every month does some great things for us:
- it creates a lot of communication — beyond finances our marriage is better than it has ever been
- our debt snowball payments have gotten larger — by looking at things repeatedly we find new ways to reduce expenses
- it is inspiring — I find myself proud of us as a team each time we spit-shake and agree on the next’s month’s plan
- we get more done — the simple act of paying attention to our money makes us plan and prioritize goals and then get them done
- perhaps most importantly it has cemented a core principle: it is our income and our expenses and both of us have a vote
I guess for us the budget has become a verb and is no longer a noun. It is a dynamically changing Plan; our Monthly Strategy. I like that. “Time for our Monthly Strategic Plan of Attack, dear!”
Some monthly expenses are constant, of course, but to reuse the same budget every month is simply lunacy in my book. You miss out on too much good stuff when you see the budget as a static thing. Life is too fluid and ever-changing.
We really do have the perfect monthly budget, it’s just different every month.
August’s Strategic Plan of Attack is done and I feel a serious bout of lazy gooberness coming on. Now where is the TV Guide?
the Dad
Posted by the Wife on 08/07/09 at 11:01 am
The other form we used was the priorities list. I wrote down a bunch of things I would like to get done: servicing my sewing machine, oil change for the car, magazine renewals, etc. and The Dad plugs them in in an order I listed when there is money to do so.
Also, when you look at your calendar and the budget every month you can throw in tiny treats to make sure you stay motivated. Last month we were able to arrange for a babysitter for a “Harry Potter” night. Little treats remind me why the sacrifices are so important. They keep me going. The Dad would suffer through it to the end, dragging me kicking and screaming, BUT if I get a bite of the carrot every once in a while he keeps me as a loyal partner in this sack race to the debt-free finish line!
Posted by Kelsalynn on 08/07/09 at 5:45 pm
I could have written this post myself- it’s so true and I feel the same way! I love our budget and can’t imagine how we lived without it. I always had a list of expenses, but it was not a budget. I didn’t decide before the month begins where the money would go, only keep track from one month to the next. It’s amazing how our focus has changed to one that plans ahead and dreams about what’s to come.
My husband is a health nut, it’s “his” thing. I’m the numbers girl. Together, we always thought we were great because we each took care of what the other person didn’t want to touch. But now, he helps with the budget, we communicate and make plans together, I’ve learned how to cook according to his strict standards and I help determine our workouts. We are a team in the true sense of the word for the first time and I love it! I’m incredibly proud of us so I know exactly how you feel. Great post!
Posted by rtc on 08/08/09 at 5:10 am
I just found your blog (from Sharon @ Musing of a Midlife Mom. It’s wonderful that you are both in this together. Thanks for sharing your journey.
I agree with your points about budgeting. I find it inspiring, too.
Posted by Jennifer on 08/08/09 at 5:27 am
I love my budget too! And I agree with using your calendar when planning out your budget (a fairly new discovery for me). I just redid my 2 year budget spreadsheet and put in on google docs so I won’t lose it and can access it from anywhere.
Posted by Sharon on 08/08/09 at 4:56 pm
Hi the Dad!
Thank you so much for your comments and visiting my blog…
I will have to look up the mayo recipe, thanks for the heads up!
I do most of the budgeting for our family, but when I don’t feel like talking about it, I tell my husband to read my blog….:)
Actually, we don’t formally sit down and do a budget, but we discuss once a week what is in the accounts, where the money is going and what is in savings.
Dave Ramsey’s plan does work, that’s for sure. I’ll look forward to following your family’s progress!
Posted by Danielle on 08/10/09 at 10:45 am
Hey guy! Thanks for the friendly reminder to post an update at some point! Life’s been busy lately. I guess summer does that, huh?
Loved this post. I wrote something very similar when S and I first started our Dave Ramsey journey. I had always been so disgruntled trying to create “THE PERFECT BUDGET” that I just gave up and stopped trying. Sounds stupid, but it took Dave saying “It’s okay to change your budget every month” to realize that was OK! Lame. But at least we’re on the right track now, eh?
Great job!! Keep it up. I’ll race you to BS7.
Posted by Dustin on 08/11/09 at 11:37 am
Hey the dad, are you still using my budget worksheet or have you moved on to bigger better tools? =)
Posted by the Dad on 08/11/09 at 12:33 pm
Hi Dustin! Ain’t nothin’ better — or bigger!
Posted by Tam on 10/05/09 at 5:23 am
I hate the word budget. We use “plan.” It feels powerful. I feel powerful…and calm. Can never thank you and the wife enough for introducing us to this and supporting us as we worked the kinks out.