Budgeting is easy. Three years ago, I would never have written that statement, but today I can passionately state that budgeting is easy. Here is a key fact to remember. Budgets do not require calculus, differential equations, geometry, physics, or trigonometry. Budgets do not even require division or multiplication. Budgets really only utilize addition and subtraction. Think about it. If you can punch numbers into a calculator, you can complete a real, workable budget. It is a simple equation:

I believe that everyone has wants that they "want" to buy. It is our nature to "want" things. For some, it is the latest technology gadget. For me, it is a boat. For others, it is a new piece of furniture. For still others, it is cosmetic surgery. There are others: greenhouse, seed germination kit, new car, new house, curtains, sprinkler system, books, art, computer, software, dishes, china cabinet (why?), fishing tackle, hunting equipment, jewelry, land, cows, horses, rabbits, roses (2/14 is on its way!), chocolate, motorcycle, a weekly pedicure, 4-wheeler, plasma HDTV, digital camera, clothing, video games, hot tub, in-ground pool, snow blower, and entire country, a castle, ... And the list goes on ... and on ... and on ... If you could buy whatever you wanted, when would you run out of "wants"? Does the list ever stop? A key thing for Jenn and I was to realize that the list of "wants" would NEVER run out. When we thought of our "wants" that way, it helped us flick the "NO!" switch much more easily. When you are able to tell yourself "NO!" more often, you will be better able to utilize your money to free yourself from debt. Here is the amazing thing. You tell yourself "NO!" so that you can become free of debt, but once you achieve that freedom, you find out that many of your "wants" have went away. Do you know how much more power over purchase you feel when you are going to spend your own money? It is awesome! I strongly recommend it! So what do you want more? Freedom from debt, or that next item on your "want" list?

What is a day worth? Today is one day later than yesterday. Brilliant!!! Because you did not invest $2000 yesterday, you have lost the $1,490,869,419.46 in a single day's interest that you would have earned on July 7, 2185!!! That is ONE BILLION DOLLARS!!! Is Austin Power's around here? Don't believe me? Try it out. Assuming an annual interest rate of 12% with a single investment of $2000, here is how much you have lost in interest because you did not invest it yesterday. Interest Lost (This is DAILY interest that was lost!!!) 1 year later: $ 0.77 5 years later: $ 1.20 20 years later: $ 7.26 50 years later: $ 266.14 75 years later: $ 5,355.27 100 years later: $ 107,687.33 125 years later: $ 2,166,159.76 150 years later: $ 43,572,888.80 Are you going to invest tomorrow? Think about how much you lost by not investing today!!!

Budgeting. The word itself has a negative sound to it. It sounds so ... so ... nerdy? constraining? confining? restrictive? I hated this word. This word meant that I had to do ... I had to ... I ... I really did not know what it did mean!!! Really! Yeah, yeah, I knew that it meant that we were going to plan out our expenses and ensure that we spent according to the plan, but that had never worked before! Well, I am now 31 months' worth of budgets smarter (note to grammar freaks - I am having the month be possessive to drive you nuts!!!), and I believe that budgeting does not just mean planning our expenses on paper. It is something much deeper. So what does budgeting really mean? Recently, I collected the reasons why people were taking a personal finance class. Here are some of the reasons:

• Be on same page with spouse
• Get out of debt
• Stop living paycheck to paycheck
• To give more
• Be financially free
• Better communication (with spouse)
• To become a better steward of what I already have
• Behind on payments
• To adopt a child
• To live off of one income (so mother can stay home)
• Gain control of finances
• To set up and stay on a budget

As I looked through the reasons, it hits me clearly what budgeting really means. It means "I want to be able to do some great things with my life, so I choose to budget in order to achieve these great goals!" Do you really think that the person who responded - "To set up and stay on a budget" was really thinking about the inherent act of budgeting? I don't think so. I believe that they are stating an obvious need (a budget) that is necessary because they realize that it is the only way they will achieve some of their huge life dreams like "adopting a child" (awesome!), "live on only one income so mother can stay home" (great!), "better communication with spouse" (unbelievably important!), and "to give more" (WOW!). Consider what you could do if you had no debt. What ministry could you pursue if you did not have to worry about income? What business would you start if you were set financially? What type of employee would you be if you were not living from paycheck to paycheck? You see, a HUGE benefit of budgeting cannot even be measured in money. It is measured in accomplishing what God made you to do - regardless of the pay. What are you supposed to be doing right now that is currently on hold due to financial mistakes?

AP HEADLINE: 2005 Savings Rate at Lowest Level Since 1933 That's right. Americans' personal savings rate in 2005 was -0.5%. That is MINUS 0.5%!!! This means that, on average, Americans not only spent every dime they brought home, but they also drained their savings or turned to debt to support their addiction to spending. Unbelievable. Let's translate this to real money. The average person who took home $30,000 last year (after tax) SPENT $30,150. This information frustrates me. It tells me that Americans are not focused on the future. IT IS A CRISIS!!!! We are called to do much more with our money than spend it. Proverbs 10:5 states, "He who gathers crops in summer is a wise son, but he who sleeps during harvest is a disgraceful son." This is not an income problem. Most of us are blessed with more than enough income. We just are not willing to sit down and INTENTIONALLY direct our money toward savings. This is not sound money management. Without the protection of savings, debt is extremely enticing for the short-term, but it has horrible consequences for the average American. What is the solution to this savings crisis? Education Without knowledge, people will continue to be taught by those marketing "must-have-right-now" products. It is not difficult to budget and save. In fact, it is extremely simple. The math can be done by a 5 year-old on a calculator. It is not linear algebra. It is not geometry. It is not even multiplication or division. It is simple addition and subtraction. Here it is: INCOME - EXPENSES = ZERO Think about it. Have you tried this with your finances? Self-Discipline Have the willpower to say a two-letter word. NO! Say it often. It will give you power over your next potential purchase. Just say NO! Are you willing to sacrifice your ability to give to incredibly worthy causes just so you can have the next electronic gadget? Are you willing to sacrifice your ability to retire in order to drive around in an awesome car? Are you willing to sacrifice being able to send your children to college in order to have expensive furniture? Electronic gadgets, great cars, and awesome furniture are not wrong, but if you are sacrificing the things that matter most and spending ALL of your money PLUS 0.5% more, it is time to call it what it is - a crisis.