Growing up, I was a words person. Numbers didn’t really exist in my world. At the age of sixteen when I got my first job, and my first bank account, I managed to bounce a few checks as the result of living in a numberless world. When I went off to college I stopped bouncing checks, but I still didn’t balance or reconcile my checkbook. I simply remembered to look at my bank statement online before making major purchases.
Sound familiar?
By the time I was in my mid-twenties, my dad had done an excellent job at drilling the dangers of debt into my head. I didn’t have a credit card until I was out of college, and even then I carried a zero balance. So I entered adult life debt free, and intended to stay that way. However, I didn’t have a game plan for doing so. With meager savings, a modest income, no budget and expensive taste I was quickly headed for trouble.
One night, as I sat down to write the rent check I realized the balance of what I had in my checking account was less than the amount I needed. I began to do some research and quickly discovered that my soon to be negative account balance was due to an almost hidden build up of empty Starbucks cups and takeout boxes from the Chinese restaurant down the street. My problem was never the big things. It was the small things here and there that didn’t cost much at the time, but slowly added up and picked my pocket clean before I even realized it.
Since I always hated math I had avoided any type of budget in the past. But desperation finally drove me to find a system that could work for me. Around that time I began using the Mvelopes budgeting system, an online program that actually does the math for you. Each month I took my paycheck and divided it up into categories like Rent, Groceries, Utilities, Savings, Tithing and Fun. By using this system I told my money where I wanted it go before I spent it, and I could see how my spending would impact my bank account before it ever put me in the red.
During my first month on the program I was able to recover about 10% of my income. For the first time in my adult life I had money to spare at the end of the month. The next month my surplus was even bigger. Now that I could see how my spending would impact my bank account I was more motivated to show restraint.
Four years into using the Mvelopes budgeting system I’ve been able to do things I never thought I could do in my twenties: save money for things like vacations or Christmas gifts so I could spend without relying on credit, write a check for a used car instead of having to take out a loan, put 20% down on a home and pay cash for my husband’s college tuition instead of drowning in student debt.
My giving has also grown exponentially and I’ve been able to share my budgeting secrets with friends and family members and watch them experience the same results. We’ve all moved at different paces but we’ve all experienced the joy of watching our bank account balances go up and not down.
Proverbs 22:7 says, “The rich rule over the poor, and the borrower is servant to the lender.”
Don’t allow yourself to be enslaved to debt any longer. Let 2010 be the year you decide to take hold of your finances and keep the change.
Resources…
Sign up for a free 14-Day trial at www.mvelopes.com
Learning to Live Financially Free by Marybeth and Curt Whalen
Learn more about how to get a handle on your finances at www.daveramsey.com and www.crown.org
Something Else…
Have money questions? Our money guru, Derek will be on Explore Culture answering you posted questions all week.
Two weeks into the New Year Shannon Primicerio is still enjoying the Starbucks and restaurant gift cards she got for Christmas so she can splurge without impacting her own bank account.
Shannon will be around all week to answer questions and read your comments.
{ 9 comments… read them below or add one }
Hi, ladies,
I would love to answer any questions you may have about setting up or sticking to a budget. And make sure you take advantage of Derek–our money guru–over in the Explore Culture section too!
This message is quite timely for me. Right now I’m still a student and never spend what I don’t have, because I don’t have any income, but in a few short months it will be time for me to budget what I earn and learn to spend wisely. Thanks for the insight. Gld bless!
~Randelle R.
I’m a budget gal, and though hubs and I “agreed” to it, he still doesnt’ understand that the $50 we set for eating out was gone the first weekend in January when he chose for us to eat out twice in 1 weekend and that means we CAN”T eat out anymore!
I try to save my money unless i need to absolutely buy something.
Randelle,
I’m so glad this was a timely post for you. Learning how to budget early sure saves a lot of heartache in the end
Alyssa,
I hate when all of my budgeted money for eating out is gone in one weekend. It makes the rest of the month so hard. I feel your pain. I will pray for you and your hubby as you work through all of this. The beginning is the worst part–it is hard to get used to all the new “rules”.
Nicole,
That’s a great philosophy. Stick to it–it will be worth it!
I’m intrigued by the Mvelopes program. I assume you think it’s worth the cost? I went to their website but I’m not sure I really get it. How does it automatically know what categories of spending your purchases should go in? Do you think the two week trial is long enough to get the hang of it?
Hi, Emily,
Great questions! Because the Mvelopes system helps you recover roughly 10% of your income or more it essentially pays for itself. When you begin the program you set up all of your own spending categories so it’s personalized for you. Then you have to “reconcile” your purchases with your income. So you still have to do a little work–but you don’t have to do any math!
I think the 2-week trial would give you enough of a feel for it to decide if you like it or not. Try to time it during a two-week period where you are getting paid so you will have some fresh money to move around. That might work best. Let me know if you have other questions!