Getting on the Same Page with Your Spouse About Money

**Disclaimer** There are many variables that play into this.  I am NOT a marriage counselor and I am only sharing what works for Fabian and I. There is nothing wrong with seeing a marriage counselor.  I highly encourage going to one. Even if your marriage is great, going to a counselor can be highly beneficial. 

One of the number one reasons for divorce in North America is money fights and money problems. Couples tend to stress about money above everything else. As I write this, I want you to know that I want to see lasting marriages.  I want to see marriages that are able to help others in need. There is power when two are gathered in agreement. Mountains move and battles are won. I know for a fact that when spouses get on the same page with money a lot of other areas in their marriage start to improve. For example just to name a few, trust, communication, and a mutual understanding of each other.

I was the first one who really wanted to jump on this get-out-of-debt plan. Fabian thought it was a great idea, but he just wasn't there yet. I had read The Total Money Makeover and he didn't really have the time to sit and read.  So we got him the audiobook. (Compromise, y'all.) I asked him to listen to it because it would mean a lot to me. He read it and got on board immediately.

The hard part came as we discussed the budget.  Both of us had been spending money like it was dispensable. He spent $100 on Starbucks a month. I easily spent $200 on clothes and toys for Benaiah and I. We probably spent $300 on eating out a month if not more. After we got on the same page, everything changed.  The way we treated each other changed. We were now working together toward a common goal. There is nothing better than feeling one with your husband/wife.

Here are my suggestions on how to get on the same page with you spouse:

1. Talk to Your Spouse
Put your phones away. Turn the T.V. off.  When the kids are asleep, tell them you'd like to talk about something important.  If you're worried about finances, tell them! If you'd like to get out of debt, discuss it with them.  If you want to be on a budget so that you are in control of your money, tell them! If you want to save money for emergencies, tell them your concerns.

Many times one spouse is the spender and one is the saver.  I am the spender. I have to constantly keep myself in line from impulse buying.  When I feel the temptation, I remind myself, "Adults devise a plan and conquer it; Children do what feels good."  My husband has voiced his concern for when I randomly buy something "we need." Now, I call or text when I want to purchase something that wasn't budgeted. Most of the time the answer is "no." I voiced my concern when Fabian kept forgetting his lunch and "had" to eat out a few months ago. We talked about how we could improve. I started making larger meals and refrigerating/freezing the leftovers for him.

One line that works for Fabian and I is, "It would mean a lot to me if..."
It would mean a lot to me if you'd do the budget with me.
It would mean a lot to me if we'd take a financial class.
It would mean a lot to me if you'd read/listen to this book and tell me what you think.
It would mean a lot to me if you'd help me with the dishes.
It would mean a lot to me if you'd help me put away the clothes.
It would mean a lot to me if you'd help me pack my lunch.

This one simple sentence communicates clearly your needs.

Word of advice: Try not to tell your spouse what they're doing wrong.  Tell them what they're doing right. Work together to improve the things they could work on. Chances are you have a few things you could work on too.

2. Do it Together 
I am so surprised when I hear people tell me, "Oh, I don't do the budget. My [spouse] does it." Or "my [spouse] handles all of that."  For the sake of your marriage, that line tells me something oh so dangerous.  It tells me that you aren't working together. That you aren't one.

I write out the budget mostly on my own. At the beginning of the month, we go through it and he will add to or take away things in the budget.  He might even remind me about something I forgot to put in there. After the initial monthly plan, Fabian and I have a budget meeting about once a week. We look at the budget together, talk about the categories and where we're at. (Seriously takes less than 5 minutes.) He sometimes may or may not get on to me about going over budget...

Fabian works 3 jobs. If he has the time to sit with me for a few minutes a week to talk about money, anyone can. Even if you hate talking about money and looking at numbers, sit with your spouse as they create it. The spouse that is doing the budget/finances by themselves wants the other spouse to be involved.  When you're involved, you're apart of the dreaming and goal planning. When you're involved, you are one.

3. Write out Your Goals and Dreams Together
Nothing will make you feel closer to your spouse than this.  (It also may make you want to rip out your hair once you hear some of their dreams.. Listen to them. Be gracious. Compromise.) We love writing out our dreams and goals together. When you do this it helps you realize what your true destination is, especially financially.  If you want to travel or have a nice house or retire with dignity, it takes intentional planning.  It takes saving money.  It takes working together.

Write your dreams/goals out. Hang them where they can be seen. Remind each other what the end goal is.  Remind each other about the reason behind why you're getting out of debt, saving money, or simply saying "no." When we are feeling discouraged and weak, we remind each other of our goals to get us back a track

Some of our "big" goals:
Jeep Commander
Toyota Highlander
House
Travel/Vacations
Giving outlandishly when we see a need.
College saving for kids
Adoption/Foster Care
Retirement

4. Respect and Love
Lastly, have grace for when your spouse messes up. Help them improve. Instead of getting frustrated and throwing your hands in the air, talk through it.  Appreciate your husband for working so hard to provide for the family.  Appreciate your wife for managing the finances and/or the house so well. Ask them how you can help improve the joint financial situation.  Most of the time both parties are good-willed people that want what's best. Treat each other with mutual respect and love. Your spouse is not you. Most of all they are not perfect. Be gracious. Give them the same patience you would need.

Fabian likes really nice things.  He likes Apple technology and nicer cars. I don't understand this as I could drive my 2001 Honda CRV for the rest on my life and have a simple flip phone and it wouldn't bother me one bit. Fabian's a saver which is great, but he also likes expensive things.  I have learned to respect this about him and compromise.  The great thing is that he knows how to say "no" to himself. He understands that he can't buy an Apple Watch just because they exist.

For Fabian, I have to tell him we can't buy the new iPad. For one we don't need one and for two we have goals. For me, he has to tell me that the boys don't need 50 toys and I don't need 50 pairs of shoes, kitchen supplies, and books. My items may not be expensive, but when I buy new stuff constantly it adds up.

A good rule to have is to talk before purchase.  Don't buy something that's not budgeted unless you and your spouse have talked about it.  Eating out counts! If you've already used your eat out budget, don't eat out with your friends and pay for their meals. Your budget is a contract.  You are saying to your spouse, "I love you and I will help our family reach our goals by sticking to this budget." Respect and love your spouse enough to care what they care about.

Getting on the same page about money will change your marriage for the better. Talk about money. Your future depends on it.

What do you and your spouse do to stay on the same page with money? Share your helpful tips with others in the comments. :)

I recommend this book: http://www.daveramsey.com/store/books/dave-s-bestsellers/the-total-money-makeover/prodtmmoclassic.html

It is $10 right now ^^^ Get the audiobook, if you or your spouse don't read. :)

Love,
Leah

If you need help or have any questions, feel free to email me or Facebook me.  leah.mandujano@gmail.com

Car Payment Free: You should and can do it too!

On Wednesday, January 6, 2016, we paid off our 2010 Toyota Corolla!  I drove to the bank and told Benaiah what we were doing.  He put the cash in the plastic container and I put it in the sucking machine. Lol.  And we are finally free of the slavery that is a car payment.  I drive a 2002 compact SUV and had paid cash for it about a year ago.  We officially have two paid for cars! Whoo hoo!

We first purchased our Corolla impulsively after our only car kept breaking down.  Fabian drove a motorcycle at the time. We had no credit scores and the only debt we had was student loan related.
Like many people, I wanted a nicer and newer car that, let's face it, I didn't need. When our car kept breaking down, it was the excuse I had been wishing for.  Instead of taking $1,000 to fix it, we went and got a car payment. We put $1,000 down and got a ridiculously high interest rate. I did eventually get it refinanced to less than half of the initial interest rate. We financed our car for $15,000.  Paid around $18,000 including interest payments over the course of 4 years.  Our car is now worth around $5,000.  Can you say, "Ouch?!"

 I share these things so that others will think deeply before getting a car payment, and hopefully not make the same mistake.

The average car payment in America in 2015 was $482 for a new car and $437 for a used car. Ours was $350 for a used vehicle.

When a car is bought and driven off the lot, within the first year the car loses 25% of its value.
That's why car dealerships make SO much money.  The consumer purchases a car for $20,000 and by the end of the year and as the next model is out its already worth $15,000.  Yet, the consumer probably still owes close to between $17,000 and $15,000 (depending on the amount of car payment and interest rates). It's like throwing money or in this case $5,000 out of the window just to drive a "newer" nicer car.

Leasing cars is the most expensive way to "own" a car.  Not a good idea in any form. Consumer reports says, "Although leasing has lower monthly payments, once you factor in that you won't own the car at the end, leasing ends up being more expensive than buying with an equivalent loan."  Again throwing money out of the window.
Instead of financing or leasing a car, save cash to purchase a simple car. And/or keep driving that little old thang!  A car is used to get you and passengers from Point A to Point B.  It does not need to be fancy, {especially} if you're broke. Just buy what you need.  Take it from my experience.  I love my 2002 compact SUV! The driver side window doesn't roll down and someone backed into it in an HEB parking lot. However, I prefer driving it compared to our newer/nicer car as it is easy for toting babies around and fits the stroller better! The AC works and it drives. That's what counts.

What could you do with a $350 worth of car payment a month? It's money to pay off other debts.  It's money to save to buy a home. It's money to invest with so we can retire. It's money that we can use however we please because it's ours and not the banks. That's financial peace at its finest. Knowing that we are in control of our money.

When I say, "We're Car Payment FREE!!" I mean it.  We're free.  Our kids are free and will never know the bondage of debt. We do this all for them!

Stewarding God's money, His way, and for His glory that's ultimately what doing this journey is about.

Love,
Leah

"...borrower is slave to the lender." Proverbs 22:7


"Anyone who does not provide for their relatives, and especially for their own household, has denied the faith and is worse than an unbeliever." 1 Timothy 5:8

"A good man leaves an inheritance to his children’s children..." Proverbs 13:22
Resources
http://www.usatoday.com/story/money/cars/2015/03/04/new-car-loan-record-payment/24363041/
https://www.daveramsey.com/blog/the-truth-about-car-payments/
http://www.consumerreports.org/cro/news/2011/04/resurgence-of-car-leasing-may-not-be-good-thing/index.htm

Be Free of Required Christmas Giving

This year Fabian and I chose to spend A LOT less on Chirstmas this year.

We wanted to pay off our medical bills in December, which we did! (Thanks to our small Christmas budget!) We also want to get closer to paying off our car by January.

I was a bit nervous about talking to my mom about it.  She came to visit in October.  We sat down in my backyard.  I told her I wanted to talk about Christmas. She was unsurprisingly completely fine with not doing a Christmas gift exchange.  Her only comment was, "I can still buy the boys gifts, right?"  Of course I said yes.

This season I cannot help but be so grateful for the people we have around us.  Because we have been so up front with where we are financially, I find that there is no sense of pressure to purchase gifts for each other.  Instead there is a sense of peace and of gratitude that we as friends and family have made it though another year with each other in our lives.

Don't let me fool you.  I had a small Christmas budget and I still went over. Ha! My budget was $100.00.  This included a babysitter for parties, food, gifts for the boys, and a small Christmas Tree. I spent more on the babysitter than anything else.
However, I so enjoyed the time with friends in a kid-free environment.  I love my boys, but I also like having adult conversations without interruptions.

We spent $20 on Benaiah's gifts.  I bought him a train table at a garage sell for $10. I went to Target and purchased some magnet trains to go with it for another $10.
Malachi is opening a gift bag with lots of paper in it. :) I'm sure he'll love it.

We bought that blue train table!
Shhh! Don't tell Benaiah, yet.

Getting into my Christmas wrapping box. 

I am all for giving to friends and family.  If my friends or family have to break their bank to buy me something, it's not worth it! For goodness sake, it's required giving.  Give when you feel you need to not because to have to!

Giving is not just a Christmas thing.  It's a year round thing.  You give because you can.

So don't feel bad for not being able to give every single family member a Christmas present.  Be grateful you get to spend time with them.  If you feel the need to give something, but you don't have money, make something. Rice Krispie treats are the bomb. Just sayin'. ;)

This Christmas I'm looking forward to spending time with my family, eating a delicious pot roast and playing a few card games.

Merry Christmas! 

Mid-Year Debt Killing Update

Hello Friends!

I am going to do my best to start blogging regularly again. Be patient with me. As you can imagine, my two year old and 3 month old are a hand full!

I'm excited to start sharing our "getting out of debt" journey with y'all again. Hopefully, you will be encouraged to start your own journey toward financial fitness, whether that be budgeting, saving, getting out of debt, or maybe all three.

Our finances touch all aspects of our lives. I earnestly believe that we must be purposeful and thoughtful about our money in order to win.

I would like you to think about these questions.
Do you know how much debt you have?
How much money in payments do you pay per month?
What could you do with that amount of money each month if you didn't have those payments?
The above questions are really what ignited us to start this journey.

About two years ago Fabian and I found ourselves living paycheck to paycheck with no plan for our money. All our credit cards for emergencies were just about maxed out. We had numerous store credit cards and even a medical credit card. We had a 10% interest car loan. (Now refinanced and almost paid off!) Lastly, we had and have student loans. At times I find myself embarrassed by the former debts described, but then I am reminded that we were normal! Sadly, most Americans have these debts and are living paycheck to paycheck.

Fabian and I decided that we had had enough. We don't want to be slaves to the lender. We want to be free. More importantly, we want a better life for our children. You can read the full story, here.  

        

                                 

It has been a year and a half since we started our journey to becoming debt-free and we've paid off:

$21,841.83

We still have a long way to go, but I think this is a good start!!
In the past 6 months, we moved to a new home and had a baby. Both our cars needed new brake pads, one car needed a new alternator, and other maintenance. And Fabian had to have almost $1,000 worth of dental work done. Needless to say, our emergency fund took a beating. It has been emptied and refunded and then emptied again and just recently refunded back up to $1,000. So, we are ready to get after our debt again!

I feel this year so far has been the hardest for me. I would love to have a gym membership with childcare. I would also love to send Benaiah to preschool part-time. I'd like to have new pots and pans. And I'd love a newer nicer car. The list goes on...

I can't justify doing or buying the above things because we have so much more left to pay off.
To be honest, it makes me angry that I can't, which in return motivates me to continue on this journey.  I know we are doing what we are suppose to. The sacrifices are real and we feel them. It helps knowing it's only temporary!

                                                         

 

We have seen God's favor this year. He has blessed us beyond anything we asked for or deserved.  Fabian got a job promotion within a year and a half of working with his company. He just recently transferred to a store right down the road from our house. At his new store his job comes with a bit more responsibility, which includes a raise from his current pay. Fabian and I had also been brainstorming about other ways to help pay off more debt. Well, he got a second job as an Interim Youth Pastor. And, it is a job that he loves and his passionate about!

Fabian and I have big dreams that we are zealous about. We know we are doing what the Lord wants us to. He has something planned for us. We know that it includes being out of debt.

                         

    

If we live like no one else now, we can live and give like no one else later!

All my love, 

Leah 

Have any questions? Need help or encouragement? I'm only an email away. Leah.mandujano@gmail.com

Christmas Budgeting!!

Christmas is in 1 month!

Are you ready?

I have already completed my Christmas shopping besides a few items like Houston Zoo Lights, White Elephant gifts, and our random giving category.  I do not like crowded places, especially in Houston, so I am avoiding them at all costs. Ha!

I wanted to give you a quick overview of how I made my budget and completed it. Also, I'll give you a great resource that I used.

Christmas 2013

How to Make a Christmas Budget:

Step 1: Choose an Amount to Spend

Christmas 2013

Give yourself a set amount to spend on Christmas.  Make it a reasonable amount.  If you can't pay your essentials like food, shelter, transportation, and/or utilities, I urge you NOT to spend anything on Christmas.  It is more important that you take care of priorities first.

The amount you may choose to spend is completely up to you and your family.  It is also based on what you're able to put aside.  Do not put it on credit cards or use your emergency fund.  Christmas is not a surprise or an emergency.  It comes at the same time every year.

We chose to spend $500.  We came up with this amount according to what we were able to put aside and according to what we wanted to purchase.


Step 2: Choose your Categories and Amounts

Family $320

Benaiah's gift. He doesn't even know...

Pick the family members you'll be buying gifts for.  We normally only purchase gifts for our niece and nephews and each of our parents. Write down their names and the amount you wish to spend on each person/child.  This category should also include your husband, wife, and kids.  I spent more on Fabian and Benaiah than anybody else. :)


Friends/Coworkers  $40
We really kept our budget to $10 per friend.  Cheap? Maybe.  We're on a budget and I wanted to spend it on my family more. lol

Charity $30
The best part of the season is giving! Set aside an amount to give or buy lunch/dinner for a random person.

Other $110
This includes gift wrap, events, parties, white elephant gifts, Houston Zoo Lights, decor, Christmas Trees etc..

The above amounts added up together equals to $500!
Maybe you would give and take more from my above categories. That is totally okay! Just give a plan for your money.  Boss it around and tell it where to go.

Step 3: Stick to Your Christmas Budget!

Cash it out:  Write the name of the category on an envelope and take those with you when you go shopping.  This is an easy way to keep track of the money.

Debit card it out: Every time you use your debit card keep the receipt. Afterwards, go home and physically write out or type out what you spent from your Christmas budget.  This was my preferred way of doing my Christmas shopping.

I ended up spending less that what I thought I would.  I have more room for extra giving or gifts. Yay!

Extras:
Cheap, but Good! Gift Ideas:

Glass Dry Erase Board

• $10-$15 Gift cards to wherever. Starbucks, Whataburger, Subway, Chick Fil A, iTunes and the list goes on.
• DIY gifts.  Craft something! Handmade gifts are the best! I crafted some glass dry erase boards and chalk boards.  Each cost me less than $5.  Bought some stuff at Goodwill and Hobby Lobby with a 40% off coupon from my email.  I made some cute things for my friends.  Hope they like them. Ha! Do you sew or knit?  Do you make wreaths?
• Bake something! I love me some chewy chocolate chip cookies. Again, handmade gifts. 
• Movie Night Basket.  You can use an older $5 movie with popcorn and candy.

Comment any other Cheap, but Good! Gift Ideas! :)

Chalkboard made by me! :)

Other Resources:

This is from Dave Ramsey's website.  IT IS FREE! We used this to do our Christmas budget.  Login with your email. Super easy to use! You can even pull it up on your smart phone while shopping.  Check it out. It can't hurt.

http://www.mychristmasbudget.com

There are also some free Christmas Budgeting apps I saw that are available for use too. Look for them on the app store.

Hope this helps and gives you some good ideas! 

All my love,
Leah

Any questions?
My email is leah.mandujano@gmail.com

Needing More Contentment

One of my favorite quotes is the following:  

Let us let that sink in for moment.

This is ardently important for us to understand if we want to win in our financial journey.  Contentment is key.  Comparison keeps us from our contentment. 

11 I am not saying this because I am in need, for I have learned to be content whatever the circumstances. 12 I know what it is to be in need, and I know what it is to have plenty. I have learned the secret of being content in any and every situation, whether well fed or hungry, whether living in plenty or in want. 13 I can do all this through him who gives me strength. Philippians 4: 11-12

Last week I caught myself day-dreaming about a new compact SUV.  Currently, I drive a 2001 Honda CRV with 150,000 miles on it.  We were a one car family (our choice) until we purchased the Honda in February of 2013 for less than $4,000.  The driver's side window doesn't roll down. And it has sun damage.  However, it runs. :) It gets me to where I need to go.  It hauls my son and all his gear.  

I was completely content with my vehicle until I saw those new pretty CRV's...  I compared.  Benaiah and I were at a park last week in a nice neighborhood.  Here I was with my lovely paid for CRV and I parked next to a mommy and her new CRV. For a moment, I dreamed of what it would be like having a nicer car. 

Then I stopped.

We are doing something a lot different than other families.  We are doing something crazy.  We are choosing to live like broke people so we can become free from being owned by credit card companies, banks, and government student loan agencies.  We have tried to impress people we didn't like and purchased a car that made us suffer financially.  

Maybe for you it's not a car. Maybe it's a house or future home, clothes, designer bags, shoes, electronics, or vacations. To win financially, we must be content with what we have and can afford.  If you don't like what you can afford, work harder. Ha! Don't dig yourself into debt just so you can lie to your own friends and family about how your life looks.

Not being content is a reason why people get themselves into tough financial situations.  We look at other peoples things and we turn around and choose not to be thankful for what we have. 
I feel like Christians are the worst in this area.  It's that, "let me look like I have it all together, but suffer on the inside," mentality.  It must be broken.  Christ called us to be free not to be slaves.  He's asked us to follow him not follow our stuff.  His grace is sufficient in our weak moments.  

It's okay to want and have nice things, but you have to go about doing it the right way.  Taking out loans on cars to impress people you don't even like is well, dumb. We've done it, but no more. Do I want to drive my 2001 Honda CRV for the next 5 years? Of course not. For now, while we are cleaning up our debts and saving for a new baby, we are content with our cars.  Will we save up and upgrade our cars? Yes, eventually. Though, It won't be an extravagant car purchase.  There won't be any loans taken out on them. We learned our lesson the hard way and won't be doing it again. 

Now there is great gain in godliness with contentment, for we brought nothing into the world, and we cannot take anything out of the world. But if we have food and clothing, with these we will be content. 1 Timothy 6:6-8

I know God is calling us for a greater purpose in this season. He's teaching us contentment. I am excited to look back on these moments 5 years from now and see where He was leading us from.  

Until next time,
Leah 
Xoxo

Look for a Christmas Budgeting Blog soon! 

Image Citations:
http://livelaughrowe.com/one-word-comparison/

Update on our Debt Killing

It's been awhile! 

Since my last blog, we have found out that we are expecting our second baby!! I am four months pregnant as I write this.  Since the nausea and extreme exhaustion has past,  I am finally ready to start blogging again. 

Right now we are on Baby Step 2 according to the Dave Ramsey: Total Money Makeover plan.  

I am a little bummed because we are putting a temporary hold on our debt snowball.  We are continuing to make the minimum payments on our car note and student loans. (We are credit card free!) At the moment, we are saving all extra funds until our future baby and I come home safe and healthy.  Whatever money is not used for the birth of our second child, we will put toward our debt! 

I wanted to take the time on this blog to update on our first year of Debt Killing! 

From September 1, 2013 to September 1, 2014, Fabian and I have paid off... 

$14,497.47

I was honestly surprised when I saw that number! Completely unexpected.  I went through an entire years worth of bank statements adding up every single payment that went toward debt.  

In 12 months, we have paid off all our credit cards, some old school debt, and half of our car.

I am so proud of my husband and I for doing this together.  It has improved our marriage tremendously. We communicate more. We are reaching the same goal together. 

This is hard work.  

It is saying "no" a lot.  

It is being super cheap when buying gifts for any type of shower/wedding/birthday. 

It is living in places we don't prefer to live in.  

It is driving an older car. 

It is me having to say "no" to Mother's Day Out programs. 

It is Fabian packing his lunch everyday. 

It is friends and family giving us awkward looks.  

It is giving up a gym membership to work out at home.

It is giving up cable. 

It is eating at home more often.

This journey has all been worth it. 

We still have a few years to complete our goal and will continue our debt-snowball April, 1 2015.  For now, we're on to saving money. And awaiting the arrival of Baby Mandujano #2! :) 

Any questions? Shoot me a message or private timeline post.  I'd be happy to help! 

My email is leah.mandujano@gmail.com

My Top 3 Budgeting Tips

The word budget seems like such a simple term.  However, many of us struggle putting one together and even more sticking to the budget.

Here are some tips that Fabian and I use when doing our budget.

1. If you are married, you MUST do the budget together.

As a married couple, your finances must be together. No ifs, ands, or buts.  The two become one.  All paychecks go into one bank account.   It is impertinent that your finances reflect that you are one.

When Fabian and I don't do a budget together, it's like we're rowing a boat in circles. Sure, we're moving. Though sadly, as a couple, we're not moving forward to a common goal or destination. 

One of the biggest reasons for divorce is money problems. Again, you MUST do the budget together. I know too many women and a few men who have told me, "I don't do the budget. My spouse just tells me what I can and cannot spend." Please do the budget together. Even if you abhor numbers.  Be there with your spouse while they do the run down of the budget.  Put your own input in.  I guarantee that when you do the budget together, you will feel closer as a couple. You truly are becoming one when you work on a goal together.

Often when doing the budget one spouse is a "nerd" and the other spouse is often the "free-spirit".  I am definitely the "nerd". I like math and I embrace it. I do the rough draft of the budget and talk to Fabian about it.  He helps add items or take items away.  He will lessen amounts or enlarge amounts for different items.

For instance, I like to give the baby spending money in order to buy him toys and clothes.  Obviously our son doesn't need spending money.  I just like buying him stuff. Fabian helped me come down to earth and so I had to cut it extensively to $10-$20 a month. Also, my husband LOVES Starbucks. Before doing our budget together, he would almost spend $100 a month on coffee alone. We still give him a Starbucks budget, but it is now down to $20 a month. (I don't like coffee. I think spending money on coffee alone is cray cray, but I love him. Sometimes I like to be nice.)

2. Budget the necessities first

If all your credit card bills are paid, but you have no food, what good does that do you?  Take care of necessities first.  Dave Ramsey calls this The Four Walls, which are food, utilities, house, transportation, and clothes.

Get a sheet of paper or open an Excel spreadsheet on the computer. Write down all of your expenses in order of importance.  Pay all of the more important items first.

Here is an example of how Fabian and I do our list:
Tithe/Giving
Food
Utilities (Electric, Water, Trash,)
Rent or Mortgage
Gas
Car Payment
Clothes
Diapers/Wipes
Dog Food
Car Insurance
Phone
Internet
His Spending Money
Her Spending Money (We do $40-$50 a month)
Miscellaneous (Unexpected expenses. This doesn't include a cute shirt that you "need". #iamguiltyofthis)
Haircut
Car Maintenance
Doctor Appointments
Saving
Debt
Cable (If you are truly struggling financially, I would urge you to cut your cable bill. There are other avenues for entertainment, free entertainment nonetheless.)
Anniversary/Birthday Gifts

3.  Do a zero-based budget. 

Fabian and I have looked at our bank account and thought, "where did all the money go?" So often we let our money go wherever it wants instead of telling it where to go.  We needed to be in control of our money and not let our money control us.  We work too hard for it to disintegrate before our eyes. We must give every dollar a name.

What is a zero-based budget? 

The concept of a zero-based budget is simple: income minus outgo equals zero.If you earn $3,500 a month, you want every item that you spend/save/give/invest to all equal $3,500. That way, you know where every one of your dollars is going. Not knowing where the money’s going is what kills a lot of people’s money situations. They just look up one day, and they have no money—and no clue about where it went (Ramsey).

As an example, let's say Fabian and I make $3,500 a month. For now, we'll pretend like no doctor appointments are needed and no car maintenance is needed this month.  Right now we do not have an emergency fund in place yet. (We will continue to make the minimum payments on all bills including debt related bills.  However, Fabian and I need to put every extra dollar toward our savings fund.

*Don't forget. When payday comes, write all of your expenses in order of importance. 

Here is an example of our monthly budget:
 Note: Most of the following are numbers that my husband and I spend on each item per month. However, in "for real" life we do a bi-monthly budget because we get paid bi-monthly (twice a month).

Budget
Total Income/Paycheck/Side Jobs	$3,500
Tithe/Giving	350
Food	500
Utilities (Electric, Water, Etc)	150
Rent	900
Gas	300
Car Payment	350
Clothes	30
Diapers/Wipes	50
Dog food	40
Car Insurance	130
Phone	150
Internet	40
Miscellaneous	120
Her Spending Money	40
His Spending Money	40
Haircut	30
Credit Card Bill 1	25
Credit Card Bill 2	25
Student Loan	120
Added Total of Monthly Expenses:	3390
Emergency Fund (If 1k completed, put extra debt here.)	110
Added Total of Money Budgeted	3500
Remaining Balance (Should always be 0)	0

Now that all of our income of $3,500 has been given a name. By the end of the budget,  we should have $0.00 left. Always.

I hope this makes sense!

For more help, use Dave Ramsey's Budget Form. (It was a life saver for us.)
http://www.daveramsey.com/tools/budget-forms/

Hopefully, these tips encourage you and get you started budgeting with a plan or goal in mind.
Thanks for reading. It means a bunch to me.

All my love,
Leah

If you have any questions or need help with your budget, I'm just a message away. I'd love to help!


The above quotation is from: http://www.daveramsey.com/blog/how-to-make-a-zero-based-budget