How do I budget? Part 01

Budget.  The word alone sends chills to many people.  Here are some things that people equate with budgets.

Budget = Restricting

Budget = I Am Broke

Budget = Controlling

Budget = No Fun

Budget = Constricting

Budget = Not going to do it! 

Most people have tried budgets … and failed!  It was a bad experience, and many will say that they aren't EVER going to budget again.

I want to make a deal with you.  How about reading this series of posts for the next week?  How about trying for just one month this method that I will teach you?  How about giving one shot?  Just one.  My hope is that you will try a budget for the month of November,

In this series of posts, I am going to share with you the exact process that Jenn and I took to prepare a budget that works.  Guess what?  THE VERY DAY that we started budgeting was THE VERY DAY that we started WINNING WITH MONEY!

Some might say "I hate budgets" and "I don't need no stinkin' budget", but I would ask them the following questions:

  • How are you paying for Christmas this year?  I am paying cash.
  • How much is your car payment?  I paid cash for my car.
  • How much did you invest this month?  I have invested for retirement for over 130 months in a row and my daughter's college for over 60 months in a row.
  • How much money do you owe to your credit cards right now?  I owe $0.
  • When is the last time you had a great discussion on finances with your spouse?  Not a fight.  A great discussion.  Jenn and I develop a spending plan TOGETHER every single month.
  • If your car broke down tomorrow, do you have money in the bank to pay for it?  Car repairs are not financial emergencies.  I am not surprised when my car breaks down.  Why?  There is a car repair joint on every corner of every street of every town and city in the country!  It is normal for cars to break down!

At the end of this series, some might call me crazy.  Some might call me insane.  Some might call me a wacko.  I would say to them – call me whatever you want, just don't call me broke anymore!

You see …  I Was Broke …  Now, I'm Not!

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  1. Saving Freak on October 22, 2007 at 6:34 am

    Great lead in to what looks to be a great series of posts. Looking forward to it.

  2. Moneymonk on October 22, 2007 at 9:20 am

    I think the problem with a budget, is that it makes you feel like a child. In order words the budget says NO you cannot have it.

    It forces you to act in a way that makes you feel like a kid.

    You figure you work 40, sometimes more than 40 hours a week. So you automatically do not want to here the word “NO” to something you want.

    I say concentrate on the long run instead of the short term. And then you may have a better way to control your urges and delay your gratification.

  3. HS on October 22, 2007 at 8:21 pm

    We’ve always had a budget, I can’t imagine living without one, every dollar should be spent on paper to track where it goes.

    A simple budget is all it takes, add the envelope system, include the spouse and the paycheck will last.

  4. Rindy on October 24, 2007 at 8:29 pm

    For me, budgeting has meant freedom. Freedom to know what I have, freedom from too much anxiety about not having enough and most importantly freedom from debt! That freedom has allowed freedom in giving–it is awesome!!

  5. Susan on December 21, 2011 at 12:20 am

    I just discovered your ipad app, and am delving into your site. I’m terrified that I will never “get it”, but I’m tired of being broke all the time. I’m starting with this series, and I am going to follow your advice to the letter. 2012 is the year I become financially intelligent! Thank you for the work that you do!

  6. Lorie on June 7, 2012 at 8:52 pm

    In January of 2012 my husband of 17 years and two children later. We have decided to go our separate ways. We realized that we do not want the same things out of life. So now for the first time in my entire life i am living on my own. SCARY!!! And I am upto my eye balls in debt. I am looking forward to finishing reading your book. And starting my budget. My family has taken care of me during the past few months when I have needed anything, but i think that it is time that I stand on my own two feet.

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