How to Pay off Debt

Accumulating debt has become an American past-time. Everything we want comes with “easy payments”, so why not buy it? Often-times we don’t realize how deep we’re in until we realize we can’t get out. 

How many of us find ourselves thinking things like: 

  • I don’t want to buy some else’s car problems, so I need to buy a new car.
  • My new baby needs the best and safest equipment, so I’ll just put her cute new stuff on my credit card.
  • My boss was really unreasonable today, so I’ll go to that new bar for a happy hour with my friends.
  • I need all this stuff to keep up. I wouldn’t want my friends to think I’m not doing well.

It feels normal because it’s what everyone else is doing. We have become professionals at retail therapy.

We’ve created a lifestyle that’s impossible to maintain. And we fund it all with debt. Take my word for it – this will NOT bring us joy. It only brings us bondage. Debt is a mental, emotional and financial drain that robs your future.

Debt Is A Product

Did you know debt is a product? Just like your favorite candy bar or the shampoo you use, debt is a product we buy. And just like the other products, it is heavily marketed to us.

Debt is sold to us in the form of credit cards, car loans and mortgages.

You Can’t Borrow Your Way Out

The only way to get out of debt is to quit borrowing. Taking out one loan to pay off another is just moving the debt around. 

If you are serious about wanting to get out of debt, you have to stop taking on new debt. You can’t get out of the hole by digging it deeper.

What Does The Bible Say About Debt

The Bible has a lot to say about money. That is one of the things I explore here at Started At 50. If you study God’s word, it doesn’t take long to see that debt is not part of His plan for us. He knows it’s not good for us. Here’s a couple of examples.

Proverbs 22:7 – The rich rule over the poor, and the borrower is slave to the lender.

Romans 13:8(a) – Let no debt remain outstanding, except the continuing debt to love one another.

What Is Debt?

What is considered debt? The definition of debt is simple…Debt is anything you owe to anyone. Having debt means you are funding today’s life with tomorrow’s dollars. When does it end?!!!

It can end here and now. You CAN get out from under the stress and the bondage of debt. It won’t be easy, but it is possible. You can do it with a few simple tools and a plan.

Let’s talk a bit about the different kinds of debt and the effect debt can have on your life and then we’ll dive into the nuts and bolts of Debt Payoff.

Kinds Of Debt

  • Credit Cards
  • Student Loans
  • Car Loans
  • Mortgage
  • Personal Loans
  • Medical Debt
  • Payday Loans
  • HELOC
  • 401k loans
  • Loans from Your Parents
  • “90 Days Same As Cash” Purchases
  • Financing Your Kids Braces

Did you see anything on this list you had not previously considered debt? Many of these types of debt are common in our culture. It’s normal to have a Car Loan or Student Loans. Other types of debt such as Payday Loans are truly insidious, but they are all damaging to our financial well-being.

How Can Debt Affect You Emotionally?

Frustration – It can be frustrating to have an unexpected expense that has to go on the credit card. Just when you thought you were making headway! Frustration can lead to giving up.

Denial – Do you shove unopened bills in the drawer? You just don’t want to know how bad it is! Denial could lead to unhealthy coping habits like drinking in an effort to forget.

Stress – Do you have more month than money? How can you juggle all these bills. Even with making minimum payments, you don’t have enough to go around! Stress could lead to weight gain or relationship problems.

Fear and Panic – Do you let all your calls go to voicemail because you’re afraid it’s a collector. Are you fearful your credit card will be denied while you are at a restaurant with your date? Fear and Panic could lead to feeling anxious all the time and not enjoying life.

Shame – Do you hide your spending or the amount of debt you have from friends, family or co-workers. You don’t want anyone to know how deep in debt you are. I mean, what would they think! Shame can lead to living an inauthentic life.

Anger – Are you having money fights with your spouse? Are you yelling at your kids or your co-workers because you can’t quit thinking about your money problems? Anger can lead to relationship issues.

Depression – You have just shut down. You can’t see a way out and your spouse doesn’t understand the pressure you’re under! You can’t deal with it anymore. Depression can lead to a whole list of mental, emotional or spiritual issues. Deardebt.com is a one of many resources for someone who is struggling with depression and mental health problems due to financial strain.

I experienced a lot of these emotions when Stephen and I were having our money issues. We had dug such a deep hole, I didn’t think we would EVER climb out. We couldn’t talk about money without getting into an argument. I was frightened and he had shut down. We were going nowhere.

The stress was unbearable and I became hopeless. This is no way to live.

You’ve Got This!

I want you to know that no matter where you are starting, YOU CAN DO IT! Your self-worth is not your net worth. Your past mistakes do not define your future. Forgive yourself and let go of the past! If you are starting your Debt reduction journey, let us know in my FB group, Started At 50. We are all there to support and encourage each other. We will not judge!

Getting back to Zero is a great feeling. You will be starting your Financial Freedom clock. This is where I was at 50 years old!

First Things First – Your Emergency Fund

Before you start to pay down your debt, you need to build a baby Emergency Fund. If you already have one, great! If not, you need an EF of $1000 in the bank. Why would I ask you to save $1000 when I’ve just spent pages telling you to pay off your debt? Because you need a safety net. Some cushion between you and life. As soon as you commit to paying off your debt, your car will break down or your refrigerator will go out. You don’t need to go deeper in debt while you are trying to pay it off.

This was one of the big problems I experienced in our dark days. We had no safety net and when life threw us a curveball, it sent us over the cliff financially.

Try to save your $1000 quickly. Have a garage sale, sell stuff on Marketplace, work some overtime or declare a “No Spend Month”. Find any way you can to get this first $1000. Then when you have a flat tire, it’s not a disaster!

How To Pay Off Your Debt

There are 3 commonly accepted methods for paying off debt. The Snowball Method, the Avalanche Method and the Hybrid Method. Let’s look at how they work and the pros and cons of each.

Snowball Method

This method is fairly simple. You list your debts starting with the smallest balance down to the largest balance. Ignore the interest rate, just rank them by balance amount. You make minimum payments on all but the smallest debt and throw everything you possibly can at the small one until it is paid off. This means any extra money you can get your hands on goes to this debt. This could be money from a side job, overtime, or by selling something.

After the first debt is paid off, take all the money you were paying on it plus the minimum payment you were making on the second debt and put it on the second debt. You keep doing this for each debt on the list until all are paid. Each time adding the money from the payments on the previous debt. This is the snowball and it gets bigger as it rolls to each debt.

Snowball Pros and Cons

The advantage (or pro) of the Snowball Method is it gives you a quick psychological boost. Paying off all your debt is not going to be a piece of cake. You didn’t get into debt overnight and you won’t get out overnight. It takes time, discipline and it will probably take some sacrifice. The Snowball Method gives you a quick win and helps you feel like you are making headway. This can give you motivation to stick to it.

The disadvantage is the Snowball Method does not take math into consideration. You may pay your first debt off quickly, but that might be a loan with a small interest rate. Meanwhile, the loan with the large interest rate, say your credit card, is treading water and accumulating interest while it waits for you to get to it.

Avalanche Method

The Avalanche Method is similar to the Snowball, but it considers the interest rate instead of loan balance. In this method, list your debts starting with the largest interest rate down to the smallest. Pay minimum payments on all but the first debt on the list. Throw all the money you can at the first debt until it is paid. Then, like in the Snowball, you add what you were paying on the first debt to the minimum payment of the second and keep going till all debts are paid.

Avalanche Pros and Cons

The pro for the Avalanche is you are considering interest rates. You save money as you pay down the loan with the largest interest rate first. As the loan balance decreases, the amount of interest being charged decreases also.

The con for the Avalanche is emotional. The loan on the top of your list may have a large balance and take months or even years to pay off. This can be discouraging to see all your other debt treading water while you work on the one.

Hybrid Method

The Hybrid Method combines the pros of the Snowball and the Avalanche. Using this method you can pay off one or two small debts first for that quick win to get you motivated. Then as you feel you have the discipline to “Stick To It”, start working on the debt with the largest interest rate. This method is a hybrid of the other two.

One note about credit cards. Your credit card debt may have the largest interest rate of anything on your list. Check into transferring your CC balance to a zero-percent card. If your credit score is high enough, you can open a card with a zero percent interest rate for a period of time (6 or 12 months). This may save you some money as you pay down your debts. WARNING: Don’t do this if you have not changed your spending habits. It will only make your problem bigger!

Choose What Is Right For You

Is there a right or wrong way to pay your debts? Probably not. As with other financial tools like Budgeting or Expense Tracking apps, pick the one that works for you. If sticking to your payoff plan may be hard for you, choose the Snowball. If you think you can stay with it and don’t need the “pat on the back”, pick the Avalanche. If you’re not sure, try the Hybrid.

You can accelerate your journey to being debt free. You can Earn More or Spend Less. Better yet, do both.

One note about interest rates – If you have anything with a greater than 10% interest rate, this is “Hair On Fire”. Address this loan as soon as possible. If you have anything worse, like a payday loan at anywhere from 200 to 2400%, this is “Nuclear Armageddon”! Do Not pass GO, Do Not Collect $200…borrow the money from your brother if you have to. Pay this thing off TODAY!

Conclusion

No matter which method you choose, the much BIGGER point here is to Get Out Of Debt! As I said earlier, these methods are simple. The execution of the plan will take grit. It won’t be easy to turn down that invitation to go out for dinner or forego a vacation. Life may feel very restricted…for a while. Remember, this is a season. It won’t last forever and it will be SO worth it.

Exercise Your Frugal Muscle

One unexpected benefit to the hard work of paying off your debt is you are building your frugal muscle. You will need to really think about every purchase while you pay off your debts. Then when the debts are gone, you will have created your frugal muscle. You will know how to pay attention to your spending. You will be in the perfect position to start saving! And saving money is what sets you up for a great future of financial freedom.

Assignment 1 – Accumulate your $1000 baby Emergency Fund if you don’t already have one. Do it NOW!

Assignment 2 – Pull out all your debts. I mean ALL of them. Make a list of loan balances, minimum payments and interest rates. Decide which pay off method is right for you. List the debts in the order needed for the pay off method you have chosen. Smallest to largest balance for the Snowball. Largest to smallest interest rate for the Avalanche or your choosing for the Hybrid.

Assignment 3 – DO IT!!! You have a plan, so NOW is the time to get started. If you have trouble starting or you just need help from a real person, email me at becky@startedat50.com. Also, don’t forget the FB group Started At 50. We can crowd-source any question you have.

Key Takeaway – Debt is NOT your friend. It robs your future, and more stuff won’t make you happier. Pay off your Debt as quickly as possible. It won’t be easy, but it will be worth it! Then you can start to design the future you’ve always dreamed of.

Coming Soon – Managing those Credit Cards

Tracking Your Spending and Why You Would Want To

When Stephen and I first started trying to manage our finances, we used three basic tools. One was to create a Budget. We had never used one before. In fact, I had never seen one. It took a few months of tweaking to get one that worked for us, but we got there. Click here for my article on how to put a budget together. Included in the Budget article is a Budgeting Spreadsheet.

The second was to use Envelopes. That’s right – I actually had white envelopes with cash in them in my purse. I would use envelopes for some of the categories in our budget, like groceries. It was an easy way to see how much I’d spent and what was left.

The third tool was to Track Our Spending. That process was scary! I was afraid to see where our money was going, and it seemed so tedious! But tracking our spending turned out to be a great tool for us. In fact, I still track every penny I spend. Why? We have transitioned from the accumulation phase to the drawdown phase where we are living off our investments. Tracking our spending kept everything in focus while we were saving and now it helps us not overspend. I’m hoping to graduate from tracking every penny, but it gives me a level of comfort I like. Maybe after we have a year or two of history with our retirement spending I will feel comfortable to not track it all.

If numbers and spreadsheets make your head spin, you’re probably cringing at the thought of tracking your spending. But instead of focusing on the how, let’s talk about the why. If you’re willing to recognize the benefits of tracking your spending, you’re more likely to do it. Here are six benefits of tracking your spending to get you motivated to start.

6 Benefits of Tracking Your Spending

(1) Helps You Make a Better Budget

In order to create a meaningful budget, you need to understand where your money goes. You probably know how much your rent or mortgage is. It’s a budget category that shouldn’t fluctuate too much. But how about your grocery bill? How about car repairs?

Many areas of your budget will fluctuate weekly, monthly or seasonally. If you only look at your last grocery receipt, you might overlook the fact you purchased extra food because of house guests or that you bought less because you were on a business trip. Depending on where you live, your utility bills may fluctuate wildly from season to season.

It’s important to track your spending over time in order to build a better budget. And when you build a better budget, you’re more likely to stick to it.

(2) Combats Mindless Spending

From what I have observed and experienced, impulse spending is the enemy of wealth. You’ve probably heard the story where someone making six figures a year is broke. How does that even happen? It’s because they spent, spent, spent and never had a plan for where the money was really needed.

That’s why having a budget is so important, but it’s not enough. If you’re spending way off plan, you’ll find yourself in the hole every month. On the other hand, if you track your spending, you might uncover a few shocking numbers.

Did you think you were spending $100 a week on groceries only to realize the figure was more like $300? Did you assume you spent $500 a year on clothes, only to see that you spent that amount each month? Or maybe you mindlessly spend money at the vending machines at work. That might not seem like a problem until you tally up the expense and realize what else you could have done with the money.

As you compare your spending to your budget, you might realize some areas need to be trimmed. You might also decide the excess money you’re spending is better off going toward debt or savings.

Tracking your spending puts your expenses in black and white. There’s no denying your problem areas anymore. Knowing is half the battle.

(3) Helps Get Your Spouse On Board

Finances are one of the biggest causes of stress and tension in long-term relationships. That’s more likely to be the case when neither party has any idea what the other party is doing with their money.

The very act of tracking spending together as a couple makes it more likely that you’ll coordinate with your spouse ahead of purchases. You can check to make sure all your expenditures align with the priorities you have as a team.

I can’t stress enough how important it is to be on the same page with your spouse financially. When you’re not, it’s like being in the same boat, but rowing in opposite directions. You’re together, but you spend a lot of energy and go nowhere. Click here for my article on Being on the Same Page With Your Spouse.

(4) Catches Expenses You Forgot About

When you’re tracking your spending, go through your bank accounts and make sure you capture everything. Many people will find there are a few charges they forgot about (umm, iTunes anyone?) These charges are often subscriptions you signed up for a long time ago, and you might not have used the service in years.

People are especially prone to signing up for a “free” service that’s actually only free for a few months. Then it begins to charge you. You probably told yourself you would cancel the subscription before the charges kicked in but then forgot.

As you run through these charges, promptly cancel all subscriptions you no longer need or want. For the remainder of the charges, make sure they find a place in your budget.

(5) Confirms If Your Spending Aligns With Your Values

Are you in debt payoff mode? Are you saving for a house down payment or retirement? We all have some long-term financial goals. The ultimate goal of your budget is to make those long-term goals happen. However, your spending puts the pedal to the metal. Your budget means nothing unless you abide by it.

Let’s say you’re in debt payoff mode and you’ve budgeted $300 a month for it. However, each month you find you’re short of making that happen because you spent too much on entertainment or eating out. Tracking your spending allows you to start questioning yourself. Are these expenses really in line with your priorities?

One special note here: you are allowed to change your priorities. Debt payoff might be your priority today, but tomorrow it could be different. Make sure you know what your top priorities are by reviewing them monthly. Don’t allow your spending to control them. (This is what we did for years!)

(6) Simplifies Your Life

Let’s say you decide to track your spending. You pull together all your receipts. You arm yourself with a glass of wine to tackle the mountain of receipts before you.

The first month, you have 75 receipts to examine, plus additional charges in your bank statement you had forgotten about (oops). You stopped in the grocery store more than once each week. You had three different Amazon orders. You paid daycare each week. You got gas several times – not because you had to, but because you didn’t really plan your trips well.

As you move forward, you might find you want to simplify your life. You might force yourself to plan better for grocery shopping so you don’t have to run back to the store. You might force yourself to wait a few days on Amazon purchases. You might check with daycare to see if you can pay once a month, instead of weekly (and maybe get a discount).

A natural outcome of simplification is experiencing a small amount of savings. Fewer trips to the grocery store means less opportunity for impulse buying. Delaying Amazon purchases might be enough to make you decide against that purchase all together. Some places offer price breaks if you pay in advance (insurance is one notable area that gives breaks like this)(get in the habit of always asking about discounts for paying up front). Combining trips means savings on gas, plus less wear and tear of your vehicle.

The first few weeks of tracking your spending will be the hardest, but have no fear! It will get easier, and the benefits of tracking your spending will outweigh any negatives. The sooner you get started, the sooner you’ll experience these benefits.

Methods For Keeping Track of Expenses

Tracking spending can be done manually by writing down every purchase you make. Or you can use apps such as Mint or YNAB that link to your credit cards and bank accounts to make the process easier. Whatever approach you choose, it may seem like a hassle – but it’s well worth it in the end. The best approach is one that you feel comfortable enough to stick with every day.

(1) Record Expenses With Pen and Paper

If you prefer a tech-free solution for tracking your expenses, write down every penny that you spend and where you spent it in a notebook. Consider reserving a page for each spending category in your budget, or use one page and simply note the category next to each expenditure. This no-frills approach can tell you at a glance where your money is going. Although it may be more difficult to identify spending trends on paper, this method at least makes you more aware of your spending.

(2) Make It Easier With an App or Software

A more modern and convenient way to track your expenses is in a spreadsheet or an app. Online apps may even offer colorful graphs and charts to illustrate your spending habits, but both options allow you to quickly and easily enter your purchases in a spending category on the same day that you incur them.

I have created a very basic spreadsheet for expense tracking. You can get a copy for yourself by clicking the link below. (As with all my spreadsheets, be sure you save a copy for yourself before making any changes.) The first tab is the instructions, the second is a sample month and the fillable template for each month is in the following tabs.

To get your own copy of this Spreadsheet click here.

Work Together as a Couple

If you are married, you will both need to track your expenses. If you choose an app, you can sync your spending with your spouse’s so that you don’t blow your budget. If you use a spreadsheet, make sure each of you logs their expenses for the day.

Keep Going Even When You Overspend

If you discover that you overspent in a few categories, don’t just stop and wait for next month. It’s important to continue to track your expenses throughout the month so that you can identify what you need to change and by how much.

Conclusion

This activity shouldn’t take more than a few minutes each day if you adopt an expense tracking approach that works for you. If you consistently track your expenses, you will be able to save more, spend less, and make necessary changes to your finances that will allow you to build wealth.

Assignment 1 – Select a method for tracking your expenses. Pencil/Paper, Spreadsheet or App. If you don’t like your choice after a month or 2, pick a different method.

Assignment 2 – Start at the beginning of the next month and start tracking you expenses. I know this may feel time consuming or useless, but DON’T GIVE UP!

Key Takeaway – Tracking your spending will help you/spouse get a handle on where your money is going so you can be in control of your future and not let it “just happen to you.”

Coming Soon – In my next post we will tackle DEBT. How does it affect you and your financial stability and strategies for paying it off.

Spreading the Message of Hope in Our FI Community

Becky’s story published on other platforms

Over the last few months I have been interviewed for other podcasts and websites. They have all gone “live” recently. I want to share these with you. Not to pat myself on the back, but because my story contains a message of hope. Hope that you or your loved ones can improve your finances, can improve today, and improve your future. Hope that It’s Not Too Late!

If you aren’t familiar with my story, you can read it here. In a nutshell, my husband Stephen and I made terrible financial decisions – for years! We found ourselves with no income, no emergency fund and paralyzed with fear. We turned things around at age 50 and retired at 63. In those 13 years we paid off our debt, funded 3 weddings, 4 college degrees and saved enough to retire comfortably.

During those bad years, we thought there was not hope. No chance we would ever retire or be free of the fear we lived with because of finances. But, there is hope.

Meet other friends in the FI community

My story has been published recently on two podcasts and one website. The podcasters and website writer come from different backgrounds with different perspectives. The reason they podcast and write are similar to mine: to reach people where they are and give them tools to improve their finances.

I would like for you to meet them and check out their sites. You might find new resources for your toolbelt.

One Life, Live It! Podcast and Go Bucket Yourself Website


Click here for my story on Episode 011.

One Life. Live It! Episode 11
Sound Bite #1
One Life. Live It!
Sound Bite #2

This is a podcast developed by Chris and Debbie Emick. Here is a little about Chris and Debbie and their website/podcast.

Chris and Debbie created Go Bucket Yourself after reaching financial independence by 40 through investing in rental real estate and while raising their two daughters. They were inspired to pay it forward by empowering others to create the life of freedom they desire.

At Go Bucket Yourself, Chris and Debbie believe it’s absolutely possible to build the life your soul is calling you to. All of their content is designed to guide you through overcoming fear, growing your mindset, eliminating obstacles and living an authentic, adventurous life.

On the podcast One Life. Live It!, you’ll hear stories designed to do just that, as well as show you that you’re not alone. There’s a community of folks out there navigating the messy middle of life together who are supporting and learning from each other along the way.

Micro Empires


Click here for my story on Micro Empires dated April 23, 2020.

The Micro Empires podcast is about real people achieving financial independence, one step at a time.  The host, Jennifer Grimson, has some experience with this. After losing everything (twice!), she rebuilt her financial well being using her W2 and some grit. In 4 years, she created $1.4m in income producing investments.  Jennifer pulls no punches, is refreshingly honest, and her guests are too! The guests are people with real experience and provide tactical steps that anyone can take to build toward their own financial independence.

Fiology


Click here for my story on Fiology.com dated May 29, 2020.

Meet David Baughier, the developer of Fiology.com. David believes pursuing Financial Independence results in a happier life.

His passion for educating and helping others led to the curation of the online resource Fiology, where knowledge and confidence in the concepts of Financial Independence build as you experience the 52 free lessons.  

Fiology uses content from the best and brightest of the FI community and creates lessons covering the critical concepts of FI. It is designed to help educate and motivate without scouring the internet reading, watching, and listening – wondering if you’ve educated yourself enough on any particular topic before moving onto the next. The intended audience ranges from those just beginning their FI journey to those who have achieved FI.

You can download a free fillable pdf version of The Fiology Workbook: Your Guide To Financial Independence here.

Final Thought

Check out One Life, Live It!, Micro Empires, and Fiology for other great content. See you next time!

God is not unjust; he will not forget your work and the love you have shown him as you have helped his people and continue to help them. We want each of you to show this same diligence to the very end, so that what you hope for may be fully realized. We do not want you to become lazy, but to imitate those who through faith and patience inherit what has been promised.

Hebrews 6:10-12

Why Have a Budget

In a previous post titled Personal Finance Basics Part 3: Let’s Do A Budget, I showed you the How of doing a budget. How to identify what categories need to be included, the basic math used and a spreadsheet to start creating your own budget. You can use this spreadsheet, a pencil and paper, or one of several apps for budgeting. Some of the more popular are YNAB, Mint, and Every Dollar.

This post talks about the Why of Budgeting. A budget is just a list of categories with math behind it, but the emotions and decisions that are wrapped up in putting together your first budget can be overwhelming. This post will help you work through your own Why as you wrestle with these concepts.

Budgeting can be a scary word. Many people approach budgets with fear, especially if they don’t have much experience with them. But budgeting does not mean you will have to start scrimping and living like a miser. It just means you understand your finances and have control over them.

It’s stressful not knowing what money is coming in, what’s going out and what our obligations are. No matter how big our checking account is, we can feel stressed.

Budgeting is creating a plan to help you get your finances where you want them to be. A budget is the ideal way to get an understanding of the way you spend, the way you save and then identify ways to improve. A budget also helps define your values. Look at where you spend your money. Does that align with your goals and values? If not, changes can be made.

9 Benefits of Budgeting

(1) Gives You a Framework for Money Conversations:

There was a time in my marriage when money conversations almost always fell off the cliff into the abyss of arguing, pain, and indecision. We couldn’t agree and the conversations led us nowhere. I talk about this in the post Being on the Same Page With Your Spouse.

If you’re married, don’t start the conversation by talking about money. Start by talking about your WHY. Talk about your wants, dreams, and goals. Why are you saving , why would you care about how much you’re spending? Will it relieve stress in you life and your relationship? Will it allow you to go on that vacations you’ve been dreaming of? What’s your WHY?

After you’ve had a few of these conversations, THEN you can talk about money. Working on your budget together can become the basis for many interesting and productive money conversations. Make the decisions together. Compromise together. No matter where you are starting…have patience with each other.

(2) Provides Control Over Your Money:

You have total control over where you spend your money. If you choose to spend money on A, then you may not have as much for B. If you want a latte three times a week, put it in the budget. If getting a babysitter once a month is important, put it in the budget. If there’s not room for those discretionary items, cut back somewhere else.

What if there’s not room for any of those things? If your finances are a dumpster fire, cut everything you can! Just remember, it won’t be like this forever. There was a time when I told my kids, “If you can’t eat it, we’re not buying it.” These times were not pleasant, but they were temporary. We dug ourselves out and you can, too!

(3) Let’s You Track Your Financial Goals – Saving, Long-Term Spending, and The Emergency Fund:

A budget will not only help you plan for this week and this month, but it will also help you with long-term goals. Do you want to take a big vacation in five years? Will you need a roof or major car repair next year? Do you need to beef up your Emergency Fund? A budget can help you find and accumulate cash for these kinds of issues.

(4) Budgeting Will Open Your Eyes. It Helps Shed Light on Bad Spending Habits:

Do you get to the end of the month and think, “Where did all my paycheck go?!” Does it feels like it disappeared? Once you really start looking at your spending, you will be able to identify where it’s going.

You may have large medical bills that you just have to gut through till they’re paid. Or you may find that you’ve got some bad spending habits that need to be reigned in, like going to the drive-thru too often or all those Amazon boxes! How about bank fees? If you are paying the bank for overdraft fees, this needs to stop now!

(5) Helps Create a Cushion for Unexpected Expenses – Emergency Fund:

Do you have an emergency fund? If not, you need to start working on that today. We all have emergencies! No one is exempt. For some people, a flat tire or car repair is a real emergency. An illness or a broken heater can be financially devastating.

The lack of an emergency fund is what caused most of mine and Stephen’s financial hardships earlier in life. “Stuff” happened and we had no safety net.

Could you cover a $500 emergency without going into debt? $1000? $5000? How about a job layoff? You need 3-6 months of living expenses in an emergency fund. This needs to be kept in an easily accessible place. But not too easy. A savings account or money market fund will do nicely for now. Remember, this is not a new couch fund!

(6) Helps Identify Money for Paying Down Debt:

If you are paying down debt like credit card or student loan debt, a budget will help you identify cash you can send toward that debt. Any extra cash you can use to pay down debt will get rid of it sooner and save you money in interest payments. If you’re having trouble making your minimum payments…see dumpster fire above!

(7) Helps Identify Money for Investing:

If your Emergency Fund is in place and you are paying on your debt, you may be able to identify some extra cash to start investing. If you can identify money to invest, I would start with your employer’s 401k and get the match. I will talk more about investing in a future blog post, but for now, do everything you can to get your employer’s match if you have one. Don’t turn down free money!

(8) Helps Ensure You Don’t Spend Money You Don’t Have:

You may be in a place where you are spending more money than you make. Stephen and I did that for a while when he had no income. It felt terrible! We were living on credit cards and digging a bigger hole with our debt every day. Again, this is a dumpster fire. You may not realize you are doing this. One reason would be because this is “normal” in our culture. A budget can help you identify the problem when more money is going out than coming in.

(9) Helps Keep Your Eyes on the Prize (Motivation):

After Stephen and I put out our dumpster fire and got on track with a budget, it helped to keep us motivated. If you’re paying down debt or just starting to invest, the numbers don’t seem to change very quickly. It takes some time to get traction. The budget helped us to “Keep Our Eyes on the Prize!”

Assignment 1 – Evaluate your budget WHY. Where do you find yourself with your money right now? Are you in a dumpster fire or are you ready to start investing?

Assignment 2 – If you haven’t done a budget yet, start working on you first draft. There is a spreadsheet template in Personal Finance Basics Part 3: Let’s Do A Budget.

Key Takeaway – A budget is the ideal way to get an understanding of the way you spend, the way you save, and then identify ways to improve. A budget also helps define your values. Look at where you spend your money. Does that align with your goals and values?

What I’ve Learned Through My Self-Quarantine

I’m sure, by now, we have all learned some new things about ourselves, our spouses, our families and even our pets! This time of quarantine has presented us with challenges and opportunities. Here are a few of mine.

What I’ve Learned in Quarantine

I should have had more money in Bucket 1 or the Cash Bucket. Stephen and I use the Bucket System for allocating our investments. Bucket 1 is cash and cash equivalents, Bucket 2 is Bonds and Bucket 3 is our Total Stock Market Index Fund. Bucket 1 should contain 2-3 years worth of money. Bucket 2 should contain 3-5 years and Bucket 3, the balance of our investments. The market had done so well over the last few years that we got greedy and kept a larger percentage in equities than our plan laid out. When the pandemic hit and the market fell, we found ourselves wishing there was more cash in the cash bucket. We will be fine, but a bigger cash cushion would have been comforting.

Be flexible. One thing Stephen and I always built into our budget plan was flexibility. We have set our budget in 3 phases. Phase 1 is the normal budget with all the bells and whistles. This includes our two biggest spending categories – our race car hobby and travel. Phase 2 would be normal budget without those two big categories. Phase 3 is what we call Skinny Budget, or cutting down all non-essential spending. Interestingly, most of us are probably operating in skinny budget right now. We can’t travel, can’t spend money on entertainment and we’re cooking at home. One thing I hope most of us have learned is that life goes on without all the frills. When life throws you a curve that affects your money, remember it’s probably temporary and you can cut back drastically if you need to.

I was going to use some of my cash to buy more equities, but now… no! When the market first started to tumble a couple of months ago, I reacted like a lot of others in the FI community: “It’s on sale and I should buy more.” As the reality of the virus and our US stock market started to sink in, I realized that this might not be the time to buy…for me. I am not in the wealth accumulation stage anymore, I’m in drawdown. Since I’m not investing new money, it was not a time for me to take my cash (Bucket 1) and invest even though the funds were “on sale.” For others, buying more stocks is a viable option, just not for me.

Now may be a good time to do your ROTH conversion. If you are in a position to do a ROTH conversion, now might be a good time. You can move more shares than before because of the lower per share price. We have moved about two-thirds of our planned 2020 conversion from a Traditional IRA to a ROTH IRA, and will re-evaluate later in the year for the other one-third. (Originally, I had added doing RMD’s to this paragraph, but I believe the IRS has suspended RMD’s for 2020.)

Look at rebalancing your allocations. Most of us probably re-balance our allocations at least once a year. Look at you current allocation. It may be a good time to do your re-balancing. I would also suggest keeping an eye on it for the rest of the year. 2020 may be the year of multiple re-balances.

I’m so thankful I don’t have a mortgage. There is a lot of debate on whether to pay off your mortgage early or invest. This discussion is as charged as the debt snowball vs debt avalanche debate. The right answer is always what’s right for you. For me personally, I’m so glad I don’t have mortgage payments right now. I’ve heard someone say that no matter what side of the mortgage payoff/invest debate you’re on, think about paying off that mortgage before you enter retirement. I agree!! Right now, my only required expenses are food, utilities and insurances. If I still had a mortgage, my expenses would be double.

Be the voice of calm and reason to your friends and family. We will get through this. Not everyone is in the same place emotionally or financially. Some are doing fine, and some have lost loved ones and/or jobs. For the most part, there are tons of “silver linings” that have come out of this quarantine. Be the calming and comforting voice in the ear of your family and friends.

Here are a few tips on ways to use your quarantine time.

Spend time with God. Spend some time to deepen your relationship with your Lord. Pray, meditate on scripture, listen to praise and worship music. Time with your Father is never wasted.

Temper feeling the need to homeschool your kids with just letting them read, play boardgames, play basketball and walk the dog. Every school district is handling the homeschool issue differently. Don’t stress yourself or your kids. Do your best and they will be fine when school starts next fall. The best thing they can do is READ.

If you have older kids, teach them a life skill. Teach them to cook, sew, change the oil, check the air pressure, balance a checkbook, use basic tools or properly clean the house. This is a great opportunity for enhancing life skills.

There are tons of free resources that have been recently added to the internet. Many organizations, like Scholastic, are offering their resources for free. The guys at ChooseFI (choosefi.com) have added several new resources to their website. They can be found on the home page. There is a section called Financial Resilience with tools for this time of quarantine, the Accidental Homeschooler, the K-12 curriculum for financial literacy and the FI 101 online class for adult financial literacy. These resources are all FREE.

Have your kids keep a journal (written, computer, video) of what is happening and their experiences and feelings. We are living in what will be an unprecedented history.

Have you lost your job or afraid you may lose it in the near future? Don’t be too proud to go get another job temporarily. Some businesses like the grocery stores or shipping warehouses are hiring.

Stay in touch with family and friends. Keep the connection with people even though we can’t be together physically. Stephen and I have made a list of people to stay in contact with, and we’ve been surprised by the reaction we get when we call “just to check in.” Even those of us who are introverts needs human contact. God did not create us to be autonomous.

Develop a new skill. This is a great time to develop a new skill or hobby. Especially if you have lost your job or think you might. A new marketable skill could be advantageous in the next few months.

Create your family emergency binder/legacy box. All of us need a set of legal documents like a will, medical directive to physicians and power of attorney. Another set of documents we all need is a family emergency binder or legacy box. This would contain instructions for family members in case of an emergency where you temporarily could not make decisions for yourself, or in case of your death. This is one of the most loving things you can do for your family. Don’t leave those who will come behind you guessing about what you want and where all the documents are. Various versions of this can be found online for a small cost.

Flex your generosity muscle. If you have the resources, give to your local food bank, church’s needs fund, pet shelter, or the local charity of your choice. Get take-out food and give a big tip. Offer to pick up your neighbor’s groceries. Find ways to be extravagantly generous!

This is not an exhaustive list. Please add anything you have discovered in the comments.

Stay safe and healthy! Let’s pray for each other, and we will get through this together!

For everything there is a season, and a time for every matter under heaven:

a time to be born, and a time to die; a time to plant, and a time to pluck up what is planted; a time to kill, and a time to heal; a time to break down, and a time to build up; a time to weep, and a time to laugh; a time to mourn, and a time to dance; a time to cast away stones, and a time to gather stones together; a time to embrace, and a time to refrain from embracing; a time to seek, and a time to lose; a time to keep and a time to cast away; a time to tear, and a time to sew; a time to keep silence and a time to speak; a time to love and a time to hate; a time for war, and a time for peace.

He has made everything beautiful in its time. Also, he has put eternity into man’s heart, yet so that he cannot find out what God has done from the beginning to the end.

Ecclesiastes 3:1-8, 11

Our World Has Turned Upside Down!

Our world has forever changed. This is my opinion, but I think it’s a safe assumption. Our lives are literally upside-down. What used to be unacceptable is now acceptable and vice versa. We can’t go anywhere we want. We can’t find TP at the grocery store. We can’t discern when this market free-fall will stop. But what we CAN do, at least here in the state I live in, is order alcohol to be delivered with your take out food!

Our world is a little crazy, but it doesn’t have to be scary. This post is a collection of random thoughts I’ve had about our “new world” of COVID-19.

Random Thoughts on Our Financial Situation

Since this is a personal finance blog, here are some thoughts about how this is affecting our money.

We have seen a lot of stock market volatility. I mean, it’s a roller coaster and it tends to take our emotions with it. We are now in a Bear Market territory (more than a 20% loss). After years of the Bull, we have all been lulled into thinking that things will always be great. They won’t. In fact, downturns normally come every 5-10 years. In the possible 25 or so years left in my investment horizon (my mom is 98, so who knows how long I’ll live) I could see 5 significant market downturns. It’s part of life. It stinks, but we’re all in the same boat. And, if you are positioned correctly, it can be used to your advantage.

There are some great resources on this subject of market volatility. One is J. L. Collins’ book, “The Simple Path to Wealth.” In this book, Jim explains market volatility and how to calmly ride it out. Also, one of my favorite bloggers, Fritz Gilbert at The Retirement Manifesto has written a post about our current Bear Market. He explains how this Bear can be used to your advantage. Check it out: “The Benefits of a Bear Market”

The market always recovers. It looks like you’ve lost a LOT of money. Remember, you haven’t “lost” all that money if you don’t sell. Please don’t panic sell and lock in your losses. There are numerous posts and articles about buying when the market is down. Stocks are basically on sale. This can be an advantage if you have the resources to do that. If not, just sit tight.

Do you have a financial game plan? If you don’t have a financial game plan, you need one. Just like every NFL coach, you need to have a plan before the game begins. These are best done before a crisis when you’re not panicked or fearful. Given our circumstances you do need to have a plan for the next few weeks. Then when our lives go back to normal, you should get serious about a long-term plan for your money. One bright side to these shaky times is we’re getting a great education on what to do for our future.

If you already have a financial game plan, has this market downturn changed your personal risk tolerance? If so, it may be time to reevaluate and tweak your plan.

Some of us have prepared well, some of us were living paycheck-to-paycheck and as a result, life is scary. If you are prepared, think of ways to use your resources to help someone else who may have lost a job or is struggling. If you are in the paycheck-to-paycheck group, this has probably caught you off guard and you’re not sure what to do. It’s time to make some hard choices.

Your first priority is the essentials: Food, shelter, utilities and transportation. We’re mostly staying in, so expenses will probably be lower without much effort. You may need to cut everything down to the essentials. Remember, this won’t last forever.

If you have lost your job, don’t let your pride or your fear keep you frozen. Some industries are suffering and others need workers. Check with the grocery stores. They are hiring in my area. They need stockers and delivery drivers. Also, other retail, like pharmacies, may need drivers. Check with Amazon or any large distribution warehouse. They may not be glamorous jobs, but it could be a paycheck for a while.

Do you have an emergency fund? If not, this may have opened your eyes to the need for one. A lack of an EF is one of the things that took Stephen and I down financially in our dark days. My upcoming post of Why You Need a Budget talks more about an EF. It is like an insurance policy against life’s “Oh, $#@&”.

Are you sitting on more debt than you’re comfortable with now? This may be another life lesson to come out of our current circumstances. Debt elimination may need to rise to the top of the priority list. Interest rates have just been lowered. This means you can possibly refinance a car, mortgage, or student loan. You’ve got time on your hands and it could be worth real dollars, so check it out!

It may be smart to cut back on your spending temporarily. We’re kinda being forced to do that. Since we are self-quarantining, we are cooking more at home and not going out for any kind of entertainment. Also, some of our events have been cancelled. It all helps reduce the strain on our budget for a while.

Look after your older neighbors, help out where you can. If you’re in a position to do so, tip big on your take-out order. Think of creative ways you can help your neighbors while still practicing social distancing. Check on older or more vulnerable neighbors who don’t need to be getting out. If you know anyone in Assisted Living/Nursing Home/Hospice, call them. This isolation will leave lasting scars on a person who may already feel forgotten. If you have the resources, give to your local church’s needs fund. They will be ministering to out-of-work congregants. Also, give extra if you can to the general fund. Some churches are already seeing a 30-40% drop in giving.

Stay home as much as possible. This will not only help the general population, but it will help our local small business owners and our over-stressed healthcare workers by helping to end this ASAP. Staying home is what we can all do now. Between the day I started writing this post and the day I have published it, most large cities have instituted a Shelter In Place order. Please stay home unless it’s an emergency or to go to the grocery store.

Hard Choices, Easy Life. Easy Choices, Hard Life.

Jerzy Gregorek

My next post will have a few thoughts on what I have personally learned during this market downturn. See you soon!

The Cards We’ve Been Dealt

(Saturday March 21, 2020. This post was written almost a week ago and many thing have changed in the last week. I will be writing another post soon about what our world and our lives look like now. This is already somewhat out of date, but the sentiment is still valid.)

This post is a combination of a couple of Facebook posts I have written recently concerning the state of our world right now…or The Cards We’ve Been Dealt. I apologize if this is a repeat of something you’ve already seen.

There won’t be a lot of financial stuff in this post. From time to time, I will write about things affecting more than just our money. Although, what is going on around us is definitely affecting our money.

A Little Preview of the Next Post

Before I get into this, let me assure you I will get back to writing about money. It’s been a while since I posted, and I’ll tell you right up front, you will not see my posts coming through on a consistent basis. Us bloggers are supposed to post every week or 2 weeks at the most. That’s just not happening in my life! Retirement, hobbies and my family obligations just don’t give me a nice, smooth predictable schedule. And that’s OK.

My last post was about budgeting and included a sample budget spreadsheet. The next post will be about the WHY of doing a budget and then one on some of the HOW’s of doing a budget.

Now Let’s Get Back to Those Cards We Were Dealt

I’m writing this post on Sunday, March 15, 2020. I was supposed to sing as part of the worship team this morning, but didn’t because I have a cold. The video at the bottom of this post is one of the songs I was practicing this week. It speaks of our Jesus who walk on water, speaks to the seas and stands in the fire beside us.

In the last few weeks, our world has turned upside down. I believe we have seen more changes to our lives (due to COVID-19) in a shorter period of time than in all of history. The effects of this disease fall across a wide spectrum. At one end, devastating loss of loved ones. The other end is personal inconvenience. We don’t know how long these inconveniences will last. We don’t know if one of our own loved oneswill be affected tomorrow. We DO know that nothing can separate us from the love of GOD if we are in Christ Jesus.

Even if you are not a Christ follower, there is one thing you cannot ignore. These things have been predicted. I have a good friend who teaches a class on how the Bible has, with 100% accuracy predicted the future. The Bible talks about the increase in frequency of wars, natural disasters and pestilence. This is not the first disease crisis our world has faced and it won’t be the last. It’s just the one we have to deal with TODAY.

Praying For Each Other

Sunday, March 15 has been set aside as a day of prayer. ( added March 21 – We should be in constant prayer for our families and our world) We all need peace and wisdom in these trying times. I want my Facebook and Website family (some of whom I’ve never met face to face) to know I’ve got your back. I am and will continue to pray for you, for your safety, your wisdom and your peace. I hope all of you who are part of this family will be doing the same. We need each other, even if we have to be socially distant.

Next to the last thought

Watch the video below. The producers asked people to send in their praises and their prayer requests. Some of these are highlighted in a video behind Chris as he sings. You can hear the audio on some, but not all. For most, you don’t need to. It reminded me that my inconveniences are NOTHING compared to what others are facing. The one that hit me the hardest was the young boy, probably about 4 or 5, who is battling brain cancer….FOR THE 3RD TIME! We all need to keep our lives in perspective and be in a constant attitude of gratitude and not fear.

Last thought

As of this weekend, most, if not all, nursing homes and assisted livings are on lock-down. This means no outside visitors. The facility my mom is in has also started a general quarantine of all residents. This means they cannot leave their rooms. So, no activities, no contact with other residents and their meals are being brought to their rooms. This kind of isolation can be devastating. If you know ANYONE who is in a facility, please be diligent to call them…often. Most of our elderly already feel forgotten. This won’t help. And if you have an elderly neighbor who probably shouldn’t be driving anyway, offer your help. Some of our neighbors don’t need to be getting out in their cars every day to go to the store in hopes of finding toilet paper and milk.

Started At 50 Made the Cut! A Review from Wealthtender

A few times a year, Wealthtender publishes a list highlighting Finance Blog Startups to Watch. The 2019 list is out and Started At 50 has been included as one of the Startup Finance Blogs to Watch – Class of 2019!

According to Wealthtender, “With more than 2,000 personal finance blogs in the U.S. alone, it can be difficult for newer blogs to stand out and their creators to get noticed.”

“But with millions of people looking for help with money matters on the internet everyday, new finance blogs sharing the diverse perspectives and unique life experiences of their founders play an important role extending the reach and impact delivered by the personal finance community.”

“Wealthtender is committed to raising awareness of up and coming finance blogs and celebrating the success of their owners as they grow through the startup stage to reach new milestones and help more people achieve their financial goals.”

21 Personal Finance Blogs that have been launched in the last year are highlighted. The focus audience of these blogs has a wide range – women, educators, government workers, physicians and married couples to name a few. And, of course, all 21 are focused on Personal Finance skills and education.

I want to share the article found on Wealthtender’s website, Finance Blog Startups to Watch. Check out some of these new startups. You may find something new and interesting for your FI journey.

I am honored and humbled to be recognized in this way. The trajectory my website has taken is not something I could have accomplished on my own. The support of my many friends and readers and the grace and strength of my Heavenly Father has catapulted me far beyond what I had planned. Thank you!

Let’s Do a Budget

Do you get to the end of the month and say, “Where did all my money go!”? Are you living paycheck-to-paycheck. If you are, you’re not alone. Around 70% of Americans live paycheck-to-paycheck. I did for a long time. In fact, I not only didn’t save anything, but I didn’t have an emergency fund. I was one emergency away from disaster financially. And then disaster hit! That’s when my husband and I sank into the darkest days of our marriage. I never want to be there again. And, I don’t want you to be there, either! I’d like to help you get out of that pit or never fall into it.

Is the “B” word a dirty word for you?!

This post is going to show you how to do a budget. I know, the “B” word is a dirty word for some folks. Like the assignment to add up all your debt in the post How Do I Get a Handle on My Money, putting together your budget will take some time and effort. It may bring some heartache and frustration. It’s like starting to exercise. It’s not pleasant at first, but it will be worth it if you stick to it!

How do you start?

The first step to putting together your own Monthly Budget is to look at your monthly inflows and outflows of money or your Monthly Income and Monthly Expenses.

Gather Your Income Data

First, you will need to gather all your monthly income sources. This will be your monthly paycheck (take home) and any other income source you have, such as side jobs, dividends or even alimony.

Gather Your Expense Data

Next let’s look at your expenses. This will take some time, so be patient with yourself! Write down everything you spend throughout the month. There will be lots of categories.

As with the Net Worth Statement, you can track these categories and their corresponding numbers with pencil and paper, or I have created a Monthly Budget Spreadsheet. The spreadsheet has columns for 6 months, and you can expand that as needed. You may want to change the headings from Month 1 to Jan 2020 and so on. The picture of the spreadsheet can be found below, and the link to the actual sheet is below that. Again, the spreadsheet is protected and you will need to make your own copy.

Giving and Savings First

Let’s look at those expense categories. For me and my family, Tithing/Giving is always at the top of the list. We believe in the Biblical principle of “first fruits” giving. This just means we give first and budget what’s left. For us, right behind giving is saving. Have you heard the term “Pay Yourself First”? This is a basic concept in saving for the future. (unfortunately, one I did not do for a long time!) Again, it is the idea of do your saving first and live on the rest. Or Pay Yourself First and then pay everyone else!

You may not be Tithing/Giving and Saving yet. Don’t worry. Both of these concepts are VERY important, but they can be addressed when you have a clear picture of where you’re money is going every month. Saving and Giving are like a muscle…they can be developed with exercise.

Other Expense Categories

Next, let’s look at the other categories. Start with the big ones like mortgage/rent payments, food and car expenses. You will also need categories like insurance payments, cell phone, utilities, cable and internet. Anything that you pay monthly needs to go on this list. And don’t forget those pesky subscriptions. Netflix, Pandora or anything that is automatically paid on your credit card.

The next step is to add categories for things that happen seldom or once a year like birthday and Christmas presents. How about printer cartridges and school pictures. There’s also car repairs, vacation and property taxes. These are not spent monthly, but they need to be considered. Take some time to think about how much money you normally spend in these types of categories in a year’s time, divide it by 12 and add that amount to your list of expenses.

Let’s Do the Math

At this point, if you’re doing this on paper, add up all your Monthly Expenses and then subtract that from the Total Monthly Income. If you’re using the spreadsheet it will do the math for you.

Look at the number at the bottom or Total Monthly Income minus Total Monthly Expenses. Is that number positive or negative? Are the Expenses greater than the Income or are they less? If they are less, great! The difference between Income and Expenses can be called the Gap, and we will talk in a future post about how to grow that gap. This is what will allow you to save for the future.

Are your Expenses greater than the Income (or the number at the bottom is negative)? This is what some would call a “Dumpster Fire”! This requires some immediate action. Look at your expenses and see what you can trim TODAY! See where you can cut in order to get the bottom number to zero.

Having Zero at the Bottom

Speaking of the bottom number being zero, my instructions on the Monthly Budget Spreadsheet say the bottom line number should equal zero. The reason for this is if you have trimmed your spending down to be less than your Income, there is excess or what I called earlier, the Gap. This Gap is where you can start saving! If you have a Gap now, great! This amount can go in the Saving Category at the top of the list of Monthly Expenses. This should bring your bottom line to zero. This method of budgeting is called a “Zero-Based Budget”

Give Yourself A Break!

This is NOT an easy task if you’ve never done a budget. In fact, it takes most people about 3 months to get the hang of it. You’ll forget categories, you’ll over or under estimate what you spend. One month will have a minor disaster that has to be handled. It’s OK. Give yourself a break. Just DON’T GIVE UP!

What Does Your Spending Say?

Now that you have done your first Budget, what do you see in it about yourself. Remember the “10 Things That Make Me Happy” list? How does your spending align with what makes you happy? Or stated another way…How does your spending align with your priorities and what you value? There may need to be some changes made to your spending to align it with your values.

Wrapping It Up

If you’ve never done a budget or it’s been a while, spend some time this week gathering your data. Use that data to create a current budget for yourself and your family and then see what it’s telling you. Let it guide you to evaluate what areas of your life might need some tweaks. Don’t be overwhelmed by thinking LOTS of major changed have to happen all at once. There’s a phrase coined by Brad and Jonathan at ChooseFI. It’s called the “aggregation of marginal gains”. That means if you continue to stack small changes, eventually you’ve made Big changes. Think about what small changes can be made over the next 7-10 days.

What Does God Say?

But he who listens to me (wisdom) shall live securely, and shall be at ease from the dread of evil

Proverbs 1:33

Looking Ahead

In the next post, I’ll talk about why do a budget and some tips on how to use it.

Monthly Budget Spreadsheet

Link To Monthly Budget Spreadsheet

Assigmnent and Key Takeaway

Assignment – Download the Monthly Budget Spreadsheet (or get a pencil and paper). Gather all your income and expense numbers and fill in all the categories with YOUR numbers. Add or delete categories as needed.

Assignment 1 – Evaluate the bottom line. Is it positive? Great! Is it negative? See what you can change today to bring that back to zero.

Assignment 2 – What can you improve over the next 7-10 days to help your GAP.

Key Takeaway – Evaluate your budget in light of your “10 Things That Make Me Happy” list. Your spending should reflect your values and priorities. If it doesn’t, what needs to change to bring those into alignment?