Be Real Budget Buster!

The first few months of creating budgets is tough. When a budget is made, BE REAL. Things are going to happen. The budget is going to get screwed up. Humans are not perfect, and to expect perfection the first go round of a budget is madness. Defeat is certain at first, especially when financial behavior is equivalent to that of a hormonal teenage drama queen, which can apply to males or females. Got kids, spouse or dogs? Junk food, flowers or dog toy is bound to bust the budget!

What do I mean by being real? Should one account for “extra” money in their budget in case of screw ups. That’s not exactly what I mean. My family prefers to do an every dollar budget. We allocate EVERY dollar of our budget until there is no money left to allocate. We picked this type of budget up through Dave Ramsey’s Financial Peace University. Every dollar of our income is budgeted in a certain way, so there’s nothing left over for “screw ups.” Which means whenever we bust a budget in one area (overspend more than we’ve budgeted) then another budgeted area automatically has less to spend; this equates to two whammies for the price of one. Big sarcastic YAY!

double-whammy

So being real? It means expect a little failure…at first. Strive for perfection, but don’t get disappointed when failure comes. It WILL. For an analytical guy like me, it makes me want to curl up into a tiny ball in a dark corner with my beans and start counting to see what went wrong. The very best thing one can do is shake it off, and try to do better, but don’t quit! Persevere with that budget! A few months of this kind of perseverance and there will be success.

FYI, any mentions I have of Dave Ramsey or any affiliates like Every Dollar, I don’t get a cent, and neither do they, I just really love the products.

 

Pitfalls of the Climb

It’s interesting how just about the time a person thinks they are standing on solid ground and can breathe for a moment, the ground falls out from underneath their feet. That’s been our experience over the past few days.

'No. . . this isn't the fiscal cliff.'

 

Many companies do biometric screening for insurance credits as an incentive to keep employees healthy and well. It’s good for the employee, who can get a decent bonus to stay in shape; and it’s good for the insurance company, who doesn’t have to pay as many claims to employees who are staying well and away from the doctor. Such is the case with my company. Let’s just say, I wasn’t healthy enough to make the cut. It’s something that I am now making a full-time project and has lit a fire under me to change my habits, routines, and diet so next year the wellness credit will be mine. In the meantime however I found that the lack of said credit is more than likely going to eat up the money I save in carpooling, so there’s that.

Another challenge we’ve run across is a balance that has come due for my college course work. It was not a charge I was expecting to pay as I expected the Pell grant and student loan would be covering it. I received a refund not long ago for the amount of the balance due, so I assumed the balance was paid over and above and that was the reason for the refund. Turned out the opposite was true, the refund check they sent us was actually supposed to pay the balance that is now due and we simply had to “pay the refund back” as the good folks at the bursar’s office so eloquently put it. My eyes couldn’t roll back in my head far enough to accommodate the frustration I was feeling. In the end, we had to pay the balance due from our meager savings.

Ah yes, and to add insult to injury, my son’s “pay as you go” phone comes due every 30 days. Not every 31 days, every 30 days. Meaning that the amount is taken from our account a day earlier every month than it was from the previous month if the month had 31 days in it. Since there are several months that have 31 days in it, when that bill comes due is basically a moving target, this month it debited our account in the negative by $10.

I was hoping at the very least to have a positive balance to report once we were paid on the 15th….

cliff

I must admit, a couple of days this week I wanted to throw my hands up, stick my head in the snow and ignore it all, or freeze to death of hypothermia. I grab the rope, ready to repel, or just jump off the metaphorical cliff face in frustration, harness or no harness (a bit mellow dramatic I know).

All of these things are annoyances. Pitfalls on the journey up the mountain. Nevertheless, we have to keep going, at a slow pace, even trudging if need be. IT’S GOING TO BE SLOW GOING. Pay more attention to billings, get out the paper, write it all down, and build the budget again. Hammer another stake in the cliff face and pull ourselves back up.

 

“It’s Not About How Hard You Hit, It’s About How Hard You Can Get Hit…and Keep Moving Forward!”

Since beginning to log our journey to keep ourselves accountable there have been several ups and downs emotionally, spiritually and mindfully, and it’s only been a week!

Starting good behavior does not negate the effects of bad behavior over years. My family and I are broke because we’ve been behaving how broke people behave for way to long. Spending more than we make, not sticking to a budget, spending money meant for savings or emergencies, eating out all the time and just not paying attention took us nowhere fast. Even though we are now seeing correct mindsets and practices toward financial changes, we are not seeing the immediate results that we would like. Saying you are saving $720 a year is noticeably different than having $720 in your bank account now. Duh…It takes a year!

Time isn’t the problem, time is going by whether we like it or not. Our attitude is the problem, and we know it. We’re impatient. Most of us, if we are honest, quit when we don’t see immediate results. We’ve all heard it before, we live in a microwave society; but it’s more than that isn’t it? We live in a wifi society! We live in a microprocessor society! No more dial up! I honestly believe as a youth it may have done my character good to see the little guy on AOL frozen in time for a couple of minutes as I listened to the irritating screech and whir and hum of a dial up modem trying to connect to my mom’s old phone line. Today…I would go bananas to endure that!

aol-logon-window.png

We are taught in school that sums and products are immediate answers: 1 + 1 = 2, 2 x 2 = 4 and so on. I cannot remember a time however when someone taught me 1 + a month + a week + 1 = 2, or 2 + a day + effort x 2 = 4. Time was never factored into the equations we were taught in school, but there it is…time…staring us in the face. Ten years may as well be an eternity when a person thinks of the financial peace they would like to have when it ticks by mere seconds at a time. Those seconds are also the very thing that robs a person when they sit and wait because they feel powerless, or it takes to long. People are waiting for something to happen instead of making what they desire happen over time.

Inaction and time are a troublesome combination. Passivity keeps us from setting goals and pursuing them. Because no goals are set, when hard times happen, it’s easier to sit down, throw our hands up and say “I quit.” When the bill collector calls after the mind has been set to do better, it says, “sit down, take it easy, try again tomorrow.” It is the voice that whispers, “Monday is a good start day, do it then. For now, eat a taco, you deserve it.” Tomorrow and Monday will come! Is reaching the goal any closer?

Is the destination you’d like to be at nearer? No trip is taken without a person’s mind being fixed on it. When it’s written down with an expected time line it starts to become reality. How many places have we never been to, but because Maps had a documented route and how long it took to get there, we traveled with ease? How many times have we thought about going somewhere, but weren’t truly excited until we hang up the phone after making reservations? But did we sit down and wait for vacation time? No! The trip might be a month away but we automatically started preparing for the it! How? We ask questions of what we might need. We do our research to see what kind of help may be needed while we are there. We save money, we write down the activities we want to do on our trip. We don’t sit idle! When we do sit idle, we may miss opportunities to enjoy something we otherwise would not.

“What keeps me going is goals.” Said the late Mahammad Ali. Who better to understand that if a person has goals, they will strive to meet them? muhammad-ali-in-action.jpg

People who have goals will rise up in the morning to chase them, even when it doesn’t look like there’s any hope. They will run after it even when their legs hurt, when they are miles away from their destination, when they fall down, and when a mountain is in their way. They will fight for their goals even when that mountain is ready to crush them. They are unstoppable.