Money shouldn't create a power struggle. You should both have access to it and beware of what it is being spent on. It should never create conflict or fulfill some jealous or other emotional need. You should never justify an expense with ' well you bought that, so I bought this'. That will only create problems. Both spouses (if your married) should handle the budget. Neither of you has the right to exclude the other regardless of who makes the money. This creates anger, hurt feelings, and trust issues. Even if one of you thinks the other is better at handling it you need to be involved. One good reason for this is in case one spouse becomes hospitalized or dies. You want your spouse to know how to handle the financial aspects of your lives so that they don't have to stress about that and deal with grief.
Saturday, September 10, 2011
Wednesday, September 7, 2011
Creating a Budget: I don't need to and other lazy thoughts.
I'm going to start with an excerpt from America's Cheapest Family. This is for the people that keep insisting they don't need to make a budget, or can't make a budget, or just think it's too frustrating. I call these lazy thoughts. You can do it, you just don't want to because it will make you realize how much money your throwing away. Personally I think being in debt is frustrating, but hey you can lead a horse to water....
This is true. We live on one income for what is now a family of three and we have a mortgage AND we are making an additonal principal payment each month.
If you own a business this probably describes you. It's a little tougher but is still possible to function on a budget. The way I see it you can't afford not to create a budget, especially if its your sole form of income.
This is so true. At first my budget was very restrictive because I was paying off student loans and credit card debt, but once I paid it off it gave me breathing room to budget for other things.So just hang in there, luxeries aren't necessary, but being debt free is.
""Myth 1: "We just don't make enough money to budget!"
We Say: Even the little you have can be stretched so much further than you ever thought""
This is true. We live on one income for what is now a family of three and we have a mortgage AND we are making an additonal principal payment each month.
""Myth 2: "Our income is so erratic that budgeting is impossible!"
We Say: Budgeting is the perfect tool to smooth out the peaks and valleys of your income.""
If you own a business this probably describes you. It's a little tougher but is still possible to function on a budget. The way I see it you can't afford not to create a budget, especially if its your sole form of income.
"" Myth 3: "I don't need to write it down, I've got it all in my head."
We Say: A written plan takes spending out of the ethereal ("well I think i can afford this.) and puts it down right there in front of your eyes in black and white ("I know I've got the money saved for this"). Numbers don't lie.""
I couldn't have said it better myself, in fact I didn't even try. lol
""Myth 4: "Oh, we gave budgeting a try. It was too restrictive and just didn't work for us."
We Say: Rather than being restrictive, a written and regularly maintained budget will provide you with financial relief, security, and freedom.""
This is so true. At first my budget was very restrictive because I was paying off student loans and credit card debt, but once I paid it off it gave me breathing room to budget for other things.So just hang in there, luxeries aren't necessary, but being debt free is.
Things you shouldn't buy cheap a.k.a Name Brand vs Store Brand
1. Tools - my husband lives by this rule. He said this applies to things like drills and saws. Remember to do your research before buying. Look at consumer reviews and see if you can buy it for a few bucks off else where. I don't know if they still do this, but when we first bought our house we found ourselves at Lowe's quit a bit. Ask for a change of address form at the post office. Sometimes there are coupons to Lowe's for 10% off a certain amount which comes in handy if you need to purchase expensive equipment. An employee at Lowe's told my husband about this because he was asking about discounts. Speaking of which if you or your spouse is in the military inquire about military discounts at home improvement stores. Some restaurants will give a military discount as well but I'm not sure which ones. Of course you'll have to provide a military I.D :)
2. Shoes - you don't have to go top of the line expensive, but it's a bad idea to get bottom line cheap as they will most likely fall apart in no time or really hurt your feet. A good pair of tennis shoes for about $50.00 will last a long time. I've had a pair of New Balance that my husband bought me for two years and I still don't thing they have much wear in them.
3. Cookware - It's better to spend a little more money on a good set of pots and pans. If you buy the cheap non-stock bake ware you may have noticed that it starts flaking in a few months. All that replacement adds up.
Again you don't have to go top of the line - there is usually a golden middle in most scenarios.
* this is all I can think of for now so if you have something that experience has taught you not to scrimp on then by all means leave a comment! *
2. Shoes - you don't have to go top of the line expensive, but it's a bad idea to get bottom line cheap as they will most likely fall apart in no time or really hurt your feet. A good pair of tennis shoes for about $50.00 will last a long time. I've had a pair of New Balance that my husband bought me for two years and I still don't thing they have much wear in them.
3. Cookware - It's better to spend a little more money on a good set of pots and pans. If you buy the cheap non-stock bake ware you may have noticed that it starts flaking in a few months. All that replacement adds up.
Again you don't have to go top of the line - there is usually a golden middle in most scenarios.
* this is all I can think of for now so if you have something that experience has taught you not to scrimp on then by all means leave a comment! *
New vs Used
This is where self control comes in. Evaluate every purchase you
make. Do you really need it? Can you get it cheaper somewhere else? Is
there a store brand? This applies to most things, but obviously there
are some things that are of much better quality than their cheaper
counter parts. You really need to do your own research and use your best
judgement on those.
New vs Used - which is better?
Here are some helpful websites I came across. Some of these sites list the same items and this is where you will have to use common sense and judgement.
For instance jewelry appears on the never buy used AND never buy new. The person saying to never buy it used is afraid of getting ripped off by people. To avoid this ask for proof of quality or have the seller meet you at a jewelry store to verify that the diamond is a diamond and not a Cz, and that the gold is 14c and not 10c you get the idea. Just because it looks like what they said does not neccesarily mean that is and you want to avoid getting ripped off. If your ever in doubt just pass on it.
Another item some suggest not to buy used is a baby crib. ALWAYS ask to see it assembled and check for cracks and missing screws.This also helps to make sure you have all of the pieces. Also if you plan on selling your new items at a later date make sure to keep up with the owners manual to give to the new buyer. Also make sure you check for safety RECALLS on ANY used baby items including toys. It's worth it if you can't afford to spend $300 on a new travel system that your only going to use for a year.Always go with your instincts and best judgement when it comes to the safety of your child and remember if you have any doubts pass on it. Buying it new IS NOT a bad idea and you can always save for these things ahead of time. Also compare prices on used baby gear. Some people will spend $800 on a crib and try to resell it for four or five hundred bucks. Good luck with that. We looked for ages on Craigslist trying to find a decent affordable nursery set. Most people were selling their expensive sets from Babys R Us but they were incredibly worn from teething marks. We finally found the perfect set for us at Wal-Mart brand new for $200 and we haven't had any issues with it.
Also read the online reviews when doing your research. Also just look up stuff you shouldn't buy used/new and you'll get a mess of websites giving you different opinions.
21 things you should never buy used
10 things you should never buy new
New vs Used - which is better?
Here are some helpful websites I came across. Some of these sites list the same items and this is where you will have to use common sense and judgement.
For instance jewelry appears on the never buy used AND never buy new. The person saying to never buy it used is afraid of getting ripped off by people. To avoid this ask for proof of quality or have the seller meet you at a jewelry store to verify that the diamond is a diamond and not a Cz, and that the gold is 14c and not 10c you get the idea. Just because it looks like what they said does not neccesarily mean that is and you want to avoid getting ripped off. If your ever in doubt just pass on it.
Another item some suggest not to buy used is a baby crib. ALWAYS ask to see it assembled and check for cracks and missing screws.This also helps to make sure you have all of the pieces. Also if you plan on selling your new items at a later date make sure to keep up with the owners manual to give to the new buyer. Also make sure you check for safety RECALLS on ANY used baby items including toys. It's worth it if you can't afford to spend $300 on a new travel system that your only going to use for a year.Always go with your instincts and best judgement when it comes to the safety of your child and remember if you have any doubts pass on it. Buying it new IS NOT a bad idea and you can always save for these things ahead of time. Also compare prices on used baby gear. Some people will spend $800 on a crib and try to resell it for four or five hundred bucks. Good luck with that. We looked for ages on Craigslist trying to find a decent affordable nursery set. Most people were selling their expensive sets from Babys R Us but they were incredibly worn from teething marks. We finally found the perfect set for us at Wal-Mart brand new for $200 and we haven't had any issues with it.
Also read the online reviews when doing your research. Also just look up stuff you shouldn't buy used/new and you'll get a mess of websites giving you different opinions.
21 things you should never buy used
10 things you should never buy new
Keeping Track: The Basics
There are several ways you can keep track of your money. Some use the envelope system, some use programs like Excel, and some use pen and paper. Use what works for you. I was told to just stick it in the bank and don't take it out unless I
need it. Well that only turned into......I NEED this or I NEED that! It didn't exactly teach me the concept of budgeting, and getting a job
didn't teach me the value of a dollar either. Try to ditch those
cliches.
We personally use Excel, but it can be a challenge for those that don't know how to utilize the formulas neccesary to make it easy. However there are plenty of how-to videos on the web if your interested. I got lucky in that my husband did all that. ;) He was using Excel to do his budget before I met him, and then he later showed me how to do it. It was the best thing ever!
You need to know how much you have and what its purpose is. Money has to have a purpose. If we all worked for fun we would most likely be volunteering. How many times have you gotten an income tax refund, or a bonus, or your pay check and a few days later you are scratching your head wondering where it all went?
Keeping a budget, however you choose to do it, forces you to take responsibility for your money. Writing it down or typing it in allows you to see exactly where it goes. This is where will power comes in. You have to keep up with your receipts AND log them. The best practice is to do it every day at the end of the day.
We personally use Excel, but it can be a challenge for those that don't know how to utilize the formulas neccesary to make it easy. However there are plenty of how-to videos on the web if your interested. I got lucky in that my husband did all that. ;) He was using Excel to do his budget before I met him, and then he later showed me how to do it. It was the best thing ever!
You need to know how much you have and what its purpose is. Money has to have a purpose. If we all worked for fun we would most likely be volunteering. How many times have you gotten an income tax refund, or a bonus, or your pay check and a few days later you are scratching your head wondering where it all went?
Keeping a budget, however you choose to do it, forces you to take responsibility for your money. Writing it down or typing it in allows you to see exactly where it goes. This is where will power comes in. You have to keep up with your receipts AND log them. The best practice is to do it every day at the end of the day.
Introduction
This is where I tell you that by following the advice of my blog all of your dreams will come true and you will live a life of luxury and one day own your own island. If you believe that please go away I can't help you.
This is where I tell you that if you are constantly stressing about money (or lack of it) and debt, STOP. You can get it under control with a little common sense no matter what your income or circumstance may be. I will also tell you that getting out of debt won't happen over night and that's okay. You have to be patient, consistent and above all have self control and will power. If you can do that then you should follow this blog! :)
In the blogs that follow I will attempt to explain how my husband and I created our family budget and make it work for us. There are two books that have helped us out a lot: The first is America's Cheapest Family by Steve and Annette Economides; The second is The Total Money Makeover by Dave Ramsey. I will take references from them quite a bit. IF you choose to buy these books I suggest looking them up on www.half.com. You can find them for less than half their retail price. I will also categorize common household bills and inform you how you may help lower them if they seem too high for you. Let's get started!
This is where I tell you that if you are constantly stressing about money (or lack of it) and debt, STOP. You can get it under control with a little common sense no matter what your income or circumstance may be. I will also tell you that getting out of debt won't happen over night and that's okay. You have to be patient, consistent and above all have self control and will power. If you can do that then you should follow this blog! :)
In the blogs that follow I will attempt to explain how my husband and I created our family budget and make it work for us. There are two books that have helped us out a lot: The first is America's Cheapest Family by Steve and Annette Economides; The second is The Total Money Makeover by Dave Ramsey. I will take references from them quite a bit. IF you choose to buy these books I suggest looking them up on www.half.com. You can find them for less than half their retail price. I will also categorize common household bills and inform you how you may help lower them if they seem too high for you. Let's get started!
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