reBUDGET

How often do you revise your budget?
Seems like I need to every 6 months.
No matter how hard you try you forget how much money you really make, and you start spending like you make more.

I love this quote:

I'm living so far beyond my income that we may almost be said to be living apart.

(E.E. Cummings)

Revising my budget this past week was a wake up call. The fact is, over the last 6-10 months, I fell into spending more than I was making - a principle I teach against. It crept up on me.

After sticking to the essentials - 10% giving away; 10% savings (actually more than that when we consider saving for our kids); attempts at a little more generosity somewhere - we just looked at what we had left to spend. We found we didn't have much left - in fact, we were in the red (on paper) - so we cut... then cut again... and then cut again. We cut the gazette, we're looking for a cheaper phone package, we're looking for lower insurance, and we've decided to cut cable over the summer instead of some summer activities for the kids.

Living what you teach is hard. This wasn't easy. I wanted 1000$ more a month. But, the alternative to no revision was go into debt and lose more money down the road to interest, depreciating toys, and something else. I don't want to falter on my hard core conviction of giving and saving.

Could this mean I don't make enough or I need to make more? That's always possible, but that's not the issue. In reality, I'm not poor. Not many of us are. In many ways I'm rich. I own my own home, drive my own car, eat well most nights. The issue is that I need to live off what I make, not spend on things I think I need or want. And trust God!

I'll probably go through the process again in the Fall or Winter, and see where I'm at.

Some tools I used:
- divide everything monthly (taxes, activities, giving, vacation, car, etc.)
- put away for it, even if it's due later in the year (I have to find a good way of doing this; it's essential if you're spending close to your income after giving and saving)
- try and keep left overs for the extras (entertainment, toys)
- pay groceries with cash; if I have left over at the end of the month, great we can go out to eat... if not - we eat out of our pantry
- Pay God 1st (this has never hurt, and always helped!)
- Pay yourself 2nd (this is biblical and smart)

A stat that freaked me out and woke me up: Americans collectively owe 807 Billion dollars in credit card debt! I.E. you're a slave to whoever you owe money to.

Thoughts?