When you set up your budget with your spouse, it is important to remember that it is a process of give and take. Jenn and I have learned to really value this aspect of budgeting. There will be times that you do not agree on everything in the budget. Jenn and I usually agree on the budget, but there are times that we disagree. Disagreement is good! If we have not budgeted for clothing for the past 5 months, I probably will not notice. Jenn will notice and ensure that it is added to the budget. She presents Exhibit A - our child has no winter clothes and it is February. That is probably a budget that is not well-prepared. Time to put money into that category. For some reason, Jenn also believes that if we are going to go on vacation, we need to budget for it in advance. WAY in advance (she prefers at least 4 years - smile!) I am more of the "go on a starvation budget and save for the vacation in the last couple of months prior to its happening" type of person. It has become apparent that $2.43 in the food budget is not enough. Time to put money into the vacation fund. Give and take is valuable in all areas of life. It's value is really clear in the process of planning for the family's spending for the next month. The benefits are clear. 1) You will be on the same page with your spouse 2) Ownership of the spending plan by both you and your spouse 3) Accountability will be established when you agree on the budget together A budget makes the financial engine run well and delivers you to your future financial goals. Is your financial engine running well?

If you have a plan for your finances and you follow that plan, you will have a great chance of becoming wealthy. Wealth generally amplifies who we really are. I want to be known for my passion for helping people accomplish more than they ever thought possible. I want to help equip them with tools that alter their future for the good. I want them to be able to focus on their life's passion instead of how to pay the house payment this month. It is time that Americans are taught the long-lost truths of saving, budgeting, having a plan, saying "NO!" for a little while, invoking parental control, spending less than is earned, and giving. If we are not following these truths, will our children? Will our government? Is this blog helping me develop into who I am made to be? I think so, but it certainly is not enough. My entire life must represent the values I am seeking to teach. It has been said that you can look at a person's checkbook and day planner, and you will know who they are and what they value. What a challenge! Try it out. Do you like the results? Remember, wealth will only amplify who you really are. Will you like the rich version of you?

My life's passion statement is to help people accomplish far more than they ever thought was possible. One key way that I am seeking to accomplish this is by teaching people about personal financial management. I have realized that if I can help people with their financial situation, then they will be better able to focus on achieving their life's passion. Example 1: I have this friend, Perry Noble, who is passionate about leading people to Jesus Christ. He is passionate about helping people to intensely focus on doing more than just sit on a church pew - to get up and DO SOMETHING! If he were worried about where the money for the next house payment was going to come from, would he be as effective at accomplishing his life's passion? Example 2: I have this other friend, Ken Wilson, who is passionate about technology, graphic design, and motion graphics. He is passionate about helping people learn about technology and utlizing it in a creative, mind-stimulating way. If he were constantly worried about the creditors calling, do you think he would be at his creative best? Example 3: I have myself. I am passionate about helping others accomplish more than they ever thought was possible. If I were worried every single day about how I would pay the doctor bills, I believe that I would not be as effective at accomplishing my life's passion! What is your life's passion? Is your financial situation stopping you from focusing 100% on it? What do you need help with most?

PAID FOR VACATIONS! Going on a vacation that is paid for in advance is AWESOME! Imagine going on a trip that is already PAID FOR before you leave. It is an outstanding feeling!!! When you have paid for the trip in advance, you will enjoy the trip so much better. I am going on vacation. It is paid for. It was paid for over a month ago. Now, all I have to worry about is ... NOTHING AT ALL! Are you going on a pre-paid paid-for vacation anytime soon? It is awesome! Here is the challenge: Try to go on a weekend vacation and pay cash for it in advance.

Today, I mark 20 years since I learned about debt and its impact on my ability to achieve financial freedom. It was 20 years ago that I learned that if I had debt, it would enslave me to the lender. I learned that the interest I paid on debt would help the bank build a nice new building downtown. I learned that debt would lead to added stress in my life. Debt would cause tremendous strain on my marriage. It would also cause me to have my reputation stained when I lost my job and could no longer pay my debts. Debt would make me lose the ability to give to worthy causes or help the poor. Debt would limit my ability to assist my children through college. Debt would make me lose sleep at nights. Debt would force me to work extra hours and additional jobs just to keep current on payments. As a result of working the extra hours and additional jobs, debt would wrench the additional income from my family's hands. I also learned that unexpected expenses would arrive and that if I had not saved money, debt would be available to handle the emergency. Debt would cost me the ability to do exactly what I am made to do since it would not produce a large enough income to service the debt. It was 20 years ago that I learned that debt is dumb. It was at that time that I learned that I needed a plan to become and stay debt-free. Today, I am broke. I still have debt. Even after knowing the truths about debt FOR TWENTY YEARS!!! Even after seeing its awful consequences on friends and families. Even after knowing that I really should do something about this debt problem. If only I had taken the time to plan. If only I had gotten on the same page with my wife and budgeted. If only we would have told ourselves "NO!" to the gadgets that we paid top dollar for, but sold in a garage sale for $4 total last weekend. Signed - The Average American

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.

Personal finances impact every area of a person's life. It impacts relationships with their spouse, parents, children, friends, neighbors, church, and God. It is a subject that many do not want to talk about because it is an embarrassing subject. I spent the first six years of my career being embarrassed. How could I make so much money and still be broke? To make matters worse - I did not even know where it all went!!! I mean, I went to 20 years of school, and I did not have one class on personal finances. The classes I took helped me earn more money, but they did not teach me what to do with it once I received it. My Story In December 2002, my wife and I moved to a new state and a new job. There were two key items that I failed to remember: 1) When you leave an employer, they stop paying you! 2) Christmas was in December that year! - Like they move it or something! We ended up using the credit cards to pay for our expenses until our first paycheck from my new job. This was the third time that our credit cards were loaded up again. We had paid them off two times before and now here they were again! Well, Jenn and I got mad! We amputated the credit cards. What's in my wallet? Cash! Now that I got rid of my Capital One card!!! We began to learn about finances. We read Dave Ramsey's book Financial Peace, Revisted. We started up Dave Ramsey's class, Financial Peace University, so that we could learn even more. It was time to make a serious change or else we were going to always end up wondering where our money went. Bottom line - 14 months and we were debt-free except the house. Better - Jenn and I communicate about our money. When we communicate about our money, we talk about our dreams for the future, where we want to be in 1 year, 5 years, and 25 years. We talk about each month's upcoming events - including family members' upcoming special days (birthdays/anniversaries/showers/etc.). We have now had over 380 people go through Dave Ramsey's Financial Peace University. I have had the huge honor of helping many couples work through their first budgets in one-on-one settings. God had instilled a passion in me to help people accomplish more than they ever thought possible. So here I am. Ready to help you learn more about personal finances. Ready to help you accomplish more than you ever thought was possible. I welcome your thoughts, discussion, comments, and insight as we work together to become financially fit!

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