How To Create A Budget That Doesn’t Make You Want To Cry

ACTUAL-How-to-Create-a-Budget-that-Doesnt-make-you-want-to-cry

by Chris Rea

Recently, I read an incredible blog post called, “Focus and Finish,” from Crystal Paine. Something powerful happens when you focus all of your energy on a single goal or vision. Many times we spread our focus out over several areas of life at once and never really achieve the results that we want. I totally understand that reasoning, BUT…

 

What if we could focus the majority of attention on one area?

 

What if we could create a vision for one thing, develop a plan to accomplish that vision, and then persevere to achieve that vision?

 

I am a huge fan of focusing on one thing at a time. Because honestly, it’s where I’ve seen the most results in my own life.

Read more on that in our ebook Unstuck:

 

 

With that in mind, I am going to give everyone one single solitary thing to focus on right now.

Ready for it?

 

Your Budget.

 

No, wait! Keep reading.

 

 

Those 2 words bring a LOT of feelings to the surface don’t they? I’m dying to know the reaction you just had.

 

 

Some of you have wanted to create a budget for so long, but you have just been putting it off because of the challenge it presents. It feels daunting.

 

 

Others of you, like me for several years, think you are living on a budget…. but you really aren’t.

 

 

“Old” Chris thought he was living on a budget because:

1. We got paid every two weeks

2. I paid these 3 bills with the first check

3. And I paid these 4 bills with the second check.

 

That’s a budget right? No old Chris. No it is not.

 

 

See your biggest wealth building tool is your income. Seems simple enough, but most people think they need to make more money when the truth is most people just need to have a plan for the money they make.

 

“Most people think they need to make more money when the truth is most people just need to have a plan for the money they make.”

Several year ago, Megan & I were able to pay off $17,000 dollars in debt in two years without making any more money.

 

And The only thing different? We created a monthly budget.

 

 

Here’s how:

 

First, we devoured the book Total Money Makeover by Dave Ramsey. That book changed our lives guys and I don’t throw those words around lightly.

 

Then, we had a Monday night “business meeting” (read more about that here and why NOT to do it on date night) every two weeks that coincided with our pay days. (We get paid every two weeks.)

 

We subtracted our bills from that total.

 

We subtracted our gas from that total.

We subtracted the exact amount we were going to give to our church.

 

We subtracted birthday, wedding, shower gifts that were happening over the next two weeks. (This is one reason why a business meeting is necessary.)

 

We agreed on an exact dollar amount we were going to spend on groceries, toiletries, personal things like clothes, hobbies, entertainment, and eating out (which honestly wasn’t much because we wanted to pay down debt).

 

 

As soon as we agreed on an amount to spend in each of those areas, once we got paid, Megan would go to the ATM and withdraw that exact amount of cash.

 

 

 

 

MEG’S SIDE NOTE: Getting a wallet with multiple components for cash is KEY. This one is adorable. #goingonmywishlist. I keep personal, grocery, and entertainment money all in separate compartments. It makes life so much easier. And basically removes all excuses that I accidentally used all our grocery money on shoes and eyeliner at Target. We now return to your regularly scheduled programming.

 

 

When the cash she got out of the ATM was gone, we didn’t spend any more until our next paycheck. That means we had to say “no” to some things we really wanted to do.

 

Things like going out to eat with friends spontaneously.

 

Things, like that Express shirt that was 70% and “such a great deal.” It doesn’t matter how good of a deal it is if you don’t have the money to buy it!

 

Even playing golf on the weekends had to go for awhile!

 

You might think, “you guys missed out on some great memories.” But here’s the truth:

 

We felt free because we were in control of our finances. And in the process, we actually created new fun traditions we came to adore.

 

Traditions like, “Saturday night home cooking date night.”

 

We started having a ton of fun learning to cook new meals together. I had never really cooked with my wife before, but this new challenge gave us the perfect opportunity. We didn’t want it to be a drag, we wanted to celebrate the fact that we were saving money and getting a win.

 

 

We instagrammed a lot of our cooking adventures during that season.

 

We’d find a recipe online, sometimes earlier in the week and sometimes, while googling what was on sale while standing in the middle of the grocery store. #KeepinItReal. And if we could shop for it at the Farmers Market? Extra bonus points.

 

 

We had some meals that were total flops and some that were so amazing!

But regardless of how the dinner turned out, those are some of our favorite memories. We made the most of it!

 

 

Every two weeks we subtracted our expenses, hit the ATM, and figured out exactly how much money would be left over.

 

Then, we took every penny left and threw it at our debt. Some months it wasn’t that much and other months we were able to do more. But we didn’t give up.

 

I can’t tell you how amazing it was to first pay off the credit card, then a few months later pay off the student loan, then a few months later pay off the car!

 

Once the debt was paid off, we continued to live on a budget and save the money we were spending on debt as an emergency fund.

 

 

After just 3 years of living on a budget…

 

After just 3 years being intentional with each paycheck…

 

After just 3 years of focused intensity…

 

We paid off all of our debt except our home and saved 5 months worth of expenses in case of emergencies.

 

 

You know what we did next? We took a 7 day vacation in Florida to celebrate; paid for in cash.

 

I can’t began to tell you the freedom we experienced on that vacation. After 3 years of sacrifice, we couldn’t believe how much better the plane ride, the meals, and experiences were simply because they were paid for in cash and we didn’t have to live outside of our means to do it.

 

 

Do you know how much money you could have left over each month if you didn’t have a car payment?

 

If you didn’t have a loan?

 

If you didn’t have to make a payment to the credit card company?

 

You could have more than you think.

 

 

Are you willing to try it? Are you willing to get focused on this one thing and attack it with everything you have inside of you?

 

It’s time to stop letting bad financial decisions keep your life small. Get intentional with every single dollar that comes into your hands. Be a good steward of what God has blessed you with and watch what could happen.

 

The results of this focused intensity would be life changing and give you the freedom you and your family are craving.

 

 

Action Steps:

  1. Download the Every Dollar Budgeting App for free. (SUCH a great tool!)

        2. Start a monthly budget for this month.

 

That’s all. You’ve got this. And if you have questions, fire away, we’d love to help.

 

Until next time,

Chris

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Chris & Megan
the authorChris & Megan

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