Budget Binder

Marie's budget plan is the best! It is a lot of work and takes time and patience. But, in the end you will be so glad you followed her advice. I took Marie's class several years ago. At that time, my husband and I were so financially stressed out that we couldn't even see straight half the time. It took two and half years to get out of debt, not because following Marie's plan was hard to do, but because we were so in debt!

We have now been out of debt for several years and have really enjoyed not having to worry so much about how we are going to pay for the next bill that comes along. I encourage all of you to incorporate all of Marie's suggestions regarding creating and implementing a budget. Do it today, you won't regret it! Rebecca from Utah, July 2005

When we get excited about saving money there are many things we can do to make a big difference in saving our dollars.

First, the goal this next month is to spend less than that month's income. For instance, Jerry earns $2,000/net per month. The couple's short-term goal, therefore, is to spend less than $1,999.99 during that same month. The next goal is to put enough money in savings over the next year (twelve months) to be able to use last month's money to pay this month's bills. This habit means that you are living on less than you earn, are ahead of yourselves by one month, and are at the beginning of financial stability.

The second goal is to stop using any sort of credit cards now! This can be done with "plastic surgery" (i.e. cutting up all the cards but one which can be saved for emergencies). For the reluctant spouse, it can be done differently. Put the cards in the bottom of a plastic carton, fill the carton with water, and put in your freezer. The cards are available, but only with great effort.

The habit of paying cash for goods will save more financial problems than any other discipline on a family's part. Just because we want it, doesn't mean that we have to get it. When the pain of payment and the pleasure of acquisition happen at the same time, responsible financial stability has begun.

Third, another goal is to set up a "standard" for spending. In this way, much of the past financial stress will be eliminated. No purchases are made without following the standards which have been agreed upon. For example, a couple might set up the following standard while they are in school. Each of them will get $25.00 in cash per month which they do not have explain to anyone as to how it was spent. Each of them may spend up to $10 without consulting the other (except for groceries which budget money is spent within the allowance they have agreed upon). They will not spend more than $100 without coming away from the store, discussing the purchase in private, and agreeing upon where the money will come from . They will not spend more than $500 without considerable research (i.e. consumer magazines and summaries), seeking the advice of others who have used the same product, and sleeping on it overnight.

Fourth, the goal with the most work and a great deal of reward is to learn to maintain a budget.

Fifth, the final big goal is to begin a determined plan to rid yourselves of all debt, including consumer debt, vehicle debt, and finally housing debt. See Debt Reduction.

Find more helpful ideas about budgeting and eliminating debt in Chapter 3, "Finances" of "House of Order" Handbook.