This week, you will get a peek into our family behind the scenes, deeper than ever before. Pay close attention and I will give you the ins and outs of how we make decisions, pay the bills and entertain ourselves.
So, we will start the week with information for those who might be wondering if my priceless Bill survived our first monthly budget meeting…
Yes! And, I am so proud of him because not only did he survive, he was helpful and optimistic. Our envelopes are ready for the month and our plan left us feeling encouraged and even excited about what our finances will look like a few months from now.
How did we do it?
First, we wrote everything out on a legal pad, income first and then expenses. By income, I mean only the income we can guarantee. If you have a musician in your home, then you will understand that you cannot count on every gig or lesson to become a reality. Likewise, not every coupon workshop turns out the way we anticipate. NEVER include any income in your plan that you cannot be certain will actually make it into your hands. Any extra income that trickles in during the month can be used for next month.
For our expenses, we started with those that would be automatically deducted from our bank account, which is every monthly bill but our garbage bill. (Why can’t they modernize?) We added up those expenses. Next, we tucked away a small amount for our emergency fund. Then, we listed all other bills that are due (or past due). These tend to be our entourage of medical bills. I never said having kids, not to mention an autistic child, was cheap. If we did not eat, buy a birthday present for our son, or buy gasoline this month, we could pay all of them. So, we decided to pay half at the beginning of the month and the other half at the end, depending on our variable income.
Out of the part we could use for groceries or other monthly expenses (birthday stuff and AWANA dues), we grabbed the envelopes and wrote out the name of the expense, the proposed date of withdrawal from the bank, and the amount. The envelopes are ready to go and now I know exactly when to go to the bank and how much I have to spend on each trip to the store.
How long did this take? About an hour and a half. What an easy investment of our time and so rewarding to know that the rest of the month will be worry free. My favorite part? I did not make any decisions alone and Bill is completely aware of our situation, which will hopefully stifle his “You know what I want” and “I need…” statements that stress me.
If you do not work out your finances once a month, I recommend it. If you do not work out your finances with your significant other, I recommend it!
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