I know. I’ve said the B word. You’re already upset. But I’m not talking about THAT B word. I mean B as in budget. If you’re even more upset now, hold on. Stay with me. This is one of the most life changing, joy finding, super awesome things you can and will do for you and/or your family. I promise.
I’d been playing with this idea of budgeting on and off for years, and I’d tried several times, but it took a pandemic to truly drive home just how very important telling your money where to go is. And by where to go I don’t mean “down the drain” or “out the window” or “up in smoke.” I mean, tell your money it needs to hide away in savings, help you pay off your debt, buy your friend a birthday present, take you on that vacation you’ve been wanting to go on for years, and more!
Keeping a running list of what I wanted to spend and how much I’d spent didn’t work. Neither did keeping receipts and lists. What did work, the first time I tried it, was Dave Ramsey’s budgeting tool. I’ve been using it for nearly a year now, and I love it. Dave is a well trusted advisor on all money matters, an author, and radio host. Maybe you’ve heard of him. I’ve been through Dave’s class… clearing throat… a few times. I learned at lot in his class, but it was the pandemic that really drove home that I needed to start putting into total practice what I had learned.
In your lifetime, you will have millions pass through your hands. Hard to believe I know, but I just Googled it, so it must be true. With that much money flowing into and out of your life, you really need to get a handle on it, and that is where the B word comes in. The B word isn’t bad, or blah, or blech, or… well… anything other than beautiful. When you have a handle on your money, when you have a budget, that is a beautiful thing, and that means joy. Remember, that is what Joy with Jamie is all about. Finding joy.
The part about a budget that I didn’t understand, up until recently, is that you aren’t supposed to set up your budget and forget about it. You are supposed to check in with it daily, like a best friend. You modify your money plan as needs arise. You move money around within the budget to make sure you are covered. If you have an unexpected expense in one area, you take money from another area to make sure you don’t overspend, or you find a way to make what you need. Like… Sell everything that isn’t nailed down!
The tool I am currently using is Dave Ramsey’s Every Dollar tool. The goal with this tool is to allocate all the money you are anticipating to come in for a given month. You are supposed to give each dollar a home, whether it be the emergency savings, groceries, cable bill, or a nice new cozy throw for yourself. After giving every dollar a home, the amount coming in and the amount going out should be zero. Dave calls that an “Every Dollar Budget.” Makes total sense. No pun intended. OK. Pun intended. LOL.
Money is a slippery little sucker. When you aren’t watching, money will slip away or go somewhere it isn’t supposed to be, kind-of like small children or mischievous teens. Check in with your monthly budget daily or at least when an unexpected expense or income occurs. The Every Dollar tool can be accessed on your computer or even via an app on your phone. No excuses.
Dave’s tool walks you through setting up your budget and makes suggestions, so it really is going to be much easier than you think it will. I promise. A few quick tips from me to help you get started…
- Be sure and make your budget for the upcoming month ahead of time. After a month is underway, it is a little harder to get everything in line, but it is still better to start than not.
- If saving is a priority for you, and it should be, decide how much you want to put into your emergency fund, and reduce spending in other areas to make sure that happens.
- Do not be afraid to add expenses that you didn’t originally put in your budget. Just be sure and adjust the numbers elsewhere, so you zero everything out – money in = money out.
- Be honest about what you owe, and put those debts into your budget. Make a plan to pay them down over time. Dave has a great tool for that with his paid plan, but you can also find free programs that are great as well. I set my mom up with UnDebt.It I will be posting a Life Lesson on getting out of debt soon. Stay tuned for that.
Life Lesson Action Item: I want you to go check out Dave Ramsey’s budgeting tool and start telling your money where to go today. You can do this. Why? Because you are just awesome like that. http://everydollar.com
Found Joy: When you have a handle on your money, you will be so much less stressed. It is very empowering to decide where your money goes.
Related Scripture: Luke 14:28 – ‘But don’t begin until you count the cost. For who would begin construction of a building without first calculating the cost to see if there is enough money to finish it? Otherwise, you might complete only the foundation before running out of money, and then everyone would laugh at you. They would say, ‘There’s the person who started that building and couldn’t afford to finish it!’”
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