Guest post from Rebecca of Spirit Led Mom
It’s a proven fact: inflow must be equal to outflow. If not, there could be a crisis, such as a foreclosure or repossession, or your family could starve.
One of the few ways to have a good financial future is to set up a good budget and stick to it.
However, setting up the budget, isn’t always the hard part. Deciding where to spend the money (and then sticking to it) is usually more difficult.
I’ve learned from my group at church called Celebrate Recovery, that the first thing we have to do is admit we have a problem. If you’ve always been living paycheck to paycheck and bouncing checks or using credit cards, then you most likely have a spending problem.
I was in denial for a long time until I realized I had a lot of debt. I was not one to bounce checks or even reach the point of foreclosure and I’ve always paid my bills on time, but my issue was that I felt it was okay to have certain debts like credit cards and car loans.
Here are 6 things that have helped me improve my financial behavior:
- Write out the budget, either on a piece of paper or on a spreadsheet.
- Try a cash envelope system.
- Get rid of temptations to spend such as credit cards, debit cards, or cash in your wallet.
- Pay bills and buy necessities first.
- Get a support group of people who are doing the same thing as you
- Find a mentor who’s already gotten their spending under control.
What other things would you suggest adding to this list that has helped you improve your financial behavior?
Rebecca is a Christian mom to 4 beautiful children, a wife to a Godly man, and a full-time student. She loves sharing ideas with others and encouraging those who are struggling. She recently began blogging at Spirit Led Mom to share Bible verses and tips with other moms.
Great tips and article. Thanks for posting. I especially like Celebrate Recovery Group at Church. Any suggestions how to get one up and running under a Greek Orthodox umbrella?
We use Dave Ramsey and have gotten our lives back in order quite nicely. I think a great piece of advise is to sell something, anything and everything you do not need and apply that directly to your debt.
On Craigslist I just sold an oak hutch for $100, 4 rims from our last Ford truck for $220. That $32o went directly to our debt before I had time to think “it would be fun to spend”. It all adds up, and gets “junk” out of your home. Since we focused on our debt (and my husband now works out of state as he lost his last job) since last July we have paid off my whole college loan ($24,000), all CC debt. We bought a different car with cash saved, and now only have a camper loan (which we are trying to sell but will lose money on since we bought it new in 2004) we will be debt free except our house. We did just refinance to a 15yr loan from a 30 yr and the payment actually dropped.
I guess my point is: We didn’t really know we had money issues until my husband lost his job. Things went downhill from there. We realized you just can’t give up! We went on a frenzied pathway to get out of debt, and start saving for retirement at the same time. I feel alot more peace, and we still have a ways to go, but we’re on the right track.
Don’t give up! You need to take care of you as the government won’t.
Congratulations on your gazelle like intensity and resulting success! 🙂
I started simple budget. How do you find a support group?
OH, these are great. i’m going to start writing out my budget on paper again. I’ve really missed that. Love and hugs from the ocean shores of California, Heather 😉
Staying out of malls and shopping centers as much as possible helps me. 🙂
I think this is an excellent tip! I know way too many people who shop for recreation….a dangerous hobby!
Watch old episodes of Dave Ramsey on Hulu for inspiration.
oooohhh! I love Dave Ramsey! Good idea about Hulu. Never thought of that. Thank you.
What helps me is actually allocating money in the bank – and moving money from my checking to my savings accounts. I have online accounts with ING and have set up several different ones for things we are saving for (vacation, tuition, paying for self-employment taxes, college savings for children, etc). If we have a surplus in our checking I move the money right away and allocate it so I don’t feel like I have “extra” that I can spend.
I think it is hard when you have a little extra. That extra money I always want to spend. I have been using the envelope system for the last month. I really like using it. My only goal was to not have my checking acct go in the minus any this month and so far so good.
Reading Moneysavingmom.com got my butt into gear, I’ll admit it.
We have always paid our bills on time, sometimes we did over extend the budget (easy to do when moving clear across the country). Sticking to a budget is sometimes hard because of the things that we want, but its always worth it in the end.
I would add to pray for contentment. When you’re in someone else’s home or reading a magazine, don’t sit there and fantasize and dream and wish for the material things you do not have. Be happy for what you do have, even if it is your furniture from college or a wedding gift you were given 10 years ago and now those plates have chips from wear.
This is something that continually challenges me, but something I pray about daily.
I pray about this daily! We live with my inlaws and have for the past 8 years (because of our poor financial choices)! But God can give that peace that passes all understanding!
I think contentment (and the resulting self-control) is the best way to financial peace there is!!!
Was this up earlier, and edited and put back up or something? Or was that just my imagination?
Yes, I accidentally had scheduled it to go up this morning when it was supposed to be edited and go up this afternoon! So your mind is not playing tricks on you, you were just one of the few people who saw it when it was unedited and accidentally up for a short time this morning. 🙂
I don’t understand #3- get rid of debit cards, credit cards, and cash. How are you supposed to purchase things then???
I think she means don’t carry cash around in your wallet unless it has a purpose. Your cash for individual categories should be in the appropriate envelopes.
Yeah, the only money I keep in my wallet is my “blow money”–the rest is in envelopes. I do have the other “bad things” though. Also the envelopes are in my purse. We’re not completely there yet, but the envelopes do help us do better.
Rena, I would suggest that you not carry the envelopes in your purse. If you were to lose your purse, or were it to be stolen, you would be out ALL your cash with no recourse like being able to close accounts to stop people from spending your money. I’m not saying not to use cash, just not to carry all of it with you all the time.
Well I don’t have ALL my money in cash–like our bills and stuff are paid online or with check. But basics, like groceries, diapers/baby food, clothes, household–those type I need to keep with me in case I stop at the store when we’re out. Things like car maintenance (oil or tire change) and Dr. visits I can leave at home till needed.
I like to read books about finances! They help motivate and inspire. You definitely are influenced by what you read and by your friends, so it’s good to be inspired in a good way!
Great tips and steps. I especially like the part about setting up a budget, and the one about paying bills and necessities first. Both go along with the notion of planning, discipline, and discerning wants from needs. Which, I think, are key determinants to financial responsibility and giving yourself a chance to have a very good financial situation. Good stuff!