Breaking Free Part 5: The Art Of Sustainable Sacrifice

It's been two years since Danielle and I started down this road toward debt-free living. It's been a challenge, a fun ride, a ministry, and a blessing, all rolled into one adventure. This week we'd like to look back on our journey, share some of the intricacies of how and why we do it, and hopefully encourage you to gain some ground in your financial battle.

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Saying that I don't complicate things is like saying a full moon doesn't throw a monkey wrench into the Wolf Man's daily grind.

I have a tendency to immediately over-think and over-complicate things, but when Danielle and I first started budgeting I forced myself to be intentional about keeping it simple. In fact that's one of Dave Ramsey's key points in Financial Peace University. He calls it KISS: Keep It Simple, Stupid.

So, first, we followed the plan. Simple.

Then we wrote our entire budget out on paper to make it easier to work with. I even used a pencil instead of a pen. Simple.

When we compiled our budgetary needs we put them into a small number of categories. For example: instead of having budget lines for cleaning supplies, tools, and home repair, we have one line item called Home Needs. See? Simple.

We found that a successful budget needs three main things in those first few months:

1. Discipline. You've got to keep at it. You've got to do the work. You've got to set it up and make your money work for you.


2. Realistic expectations. Unplanned expenses are going to happen, and the money to cover them has to come from somewhere.


3. Flexibility. A budget is rarely going to work properly from the get-go. It will need adjustment.

After about six months we had the budgeting thing down to a science.

Spend Less, Earn More

When it comes to paying off debt, Dave Ramsey points out that the two things that contribute the most to attacking debt are spending less and earning more. I'll give Danielle the most credit when it comes to earning more. That girl can work like a dog when she's got a goal. She took a lot of extra jobs on top of her full time job to earn extra money.

And when it came to spending less we both made a lot of sacrifices. We didn't cut out restaurants and movies at first, but over time we cut back at these things more and more with the understanding that we couldn't give them up forever.

That's what sustainable sacrifice is all about—sacrificing unnecessary expenses to accelerate progress for a period of time. The idea is to stay motivated as you see your sacrifice enabling you to get ahead in other areas financially. If you can get debt free in one year by sacrificing deeply, go for it! Otherwise, take a good look at your budget and determine what expenditures you can cut back and for how long.

In our case, we knew we'd have to sacrifice for about five years at least, and we made decisions based on what we thought we could handle for that amount of time. Had we gone into it without a determined timeframe we—mostly I—would've gotten too discouraged and probably given up.

I Gotta Have My Cookies

Sustainable sacrifice isn't about depriving yourself of everything you enjoy. It means being intentional about telling your money where to go. If you want to spend some of it at Dunkin Donuts, that's fine, just make sure you plan for it. Otherwise you get fat.

Oh, wait. Wrong topic. Well, it still sort of applies. See, now that my wifey is into being a Beachbody coach, and now that I've seen the tremendous success she's had with eating right, I've decided to work on adding a better dietary plan to my workout routines. But, like my personal spending money, if I don't have some junk food to look forward to I'm going to get real discouraged real fast.

So I prepared an entire batch of chocolate chip cookies and divided them up into little freezer bags of three. Every Saturday I know I have that beautiful, chocolaty sweetness to look forward to. If i didn't have that, I wouldn't keep track of what I was eating. A candy bar here. A brownie there. I wouldn't know from one week to the next how much junk food I was eating.

Knowing I've got cookies coming on Saturday makes the sacrifice during the week sustainable.

Sustainable sacrifice.

Now, just as a quick side note, the types of sacrifices that move the debt needle the fastest are monthly sacrifices like cable TV, subscriptions services, and the like. Maybe for this summer you decide not to purchase a golf membership. (I know, heresy!) Or if cutting out television entirely isn't an option, maybe a cheaper package with fewer channels is the way to go for the next year.

Making sustainable sacrifices will help you make progress, which will help keep you motivated to make more sacrifices to keep on keeping on.

What sacrifices have you made to dump debt?

Other posts in this series:
Part 1: My Personal Wake-Up Call
Part 2: How To See Some Hope
Part 3: Overcoming The Comparison Trap
Part 4: The Things We Didn't Give Up

A New Adventure - Beachbody Coach

I don't know about you, but I'm feeling 22...

Oh, wait, that's not what I meant to say. What I meant to say was that I don't know about you, but I find that when I start disciplining myself in one area of my life it eventually spills over into other areas. For instance, it's been almost two years since the hubby and I first started working faithfully on our financial situation, and our discipline has paid off in more ways than one.

A couple months ago, as we began the search for an alternative healthcare solution, we both decided to work on taking better care of our bodies. For Jake that meant doing Sean T.'s Insanity, a 9-week workout program. For me it meant doing whatever I could to stay in shape—I ran for a couple weeks, then I started doing this walking program, then a 30 Day Ab Challenge... but the problem was I had no plan. I had no one supporting me or working with me.

Then a friend told me about PiYo, the newest Beachbody program that blends Pilates and Yoga, but PiYo takes those things to the next level, cranking them up to give you a full-throttle cardio, strength, and flexibility workout. Unlike that crazy Insanity program my husband does, PiYo is low-impact and involves more deep stretching and muscle work and not as much jumping around.

I had learned a lesson during my 30 Day Ab Challenge: you can workout all you want, but if you don't change your eating habits you won't get the best results. Even though I was able to do 125 situps, 200 crunches, 65 leg raises and a two-minute plank, my abs were still hiding under this soft cushion of... FAT. I decided that I wasn't going to continue sculpting these amazing abs unless I also got to see them.

So when I began PiYo I decided to follow the get lean eating plan, and that was a good decision if I do say so myself. In the three weeks I've been doing PiYo I have lost 6 lbs, and 3 inches! It feels good!

Of course when you do any Beachbody program you hear a lot about Shakeology. All of their programs promote it—Insanity, PiYo, P90X. Shakeology is a literal meal replacement, loaded with nutrients and healthy stuff. Unfortunately, Shakeology costs quite a bit of money, and while most people have ways they can cut back to cover the cost—less coffee, less eating out—us Penny Pinchers have already cut out everything we can. Jake and I don't buy coffee. We don't drink soda. We hardly ever eat out. For us, affording Shakeology is a big deal.

Jake was sold on it long before I was, but once I heard of its health benefits, how that it's clinically proven for weight loss and lowering cholesterol and blood sugar, we agreed to try it out.

But, then again, there was this whole issue of money. *shakes fist* Why must everything cost so much?!

So I decided to make the move from just being a Beachbody customer to being a Beachbody coach! Doing so gives me a discount on Shakeology, but, even more than that, I found so much inspiration and motivation through my Beachbody coach and her Challenge Group that I wanted to offer the same hope and encouragement to other people. Hopefully, this way, I will also be able to continue this accountability for myself.

On August 4th I am starting an August Challenge Group, for those who choose to order the PiYo Challenge Pack or any of the Challenge Packs through me. This group will offer encouragement, tasks to complete, accountability, and a place to discuss any questions that come up. I will do my best to help you be successful in working towards you fitness goals, be it to lose weight, tone up, or maintain your fitness level.

I would love to have you join my group! If you purchase any of the products through me I will automatically be assigned as your personal coach, which would be totally awesome. You can look at the workout programs here: http://www.beachbodycoach.com/danigrant. Or if you have any specific questions, leave us a comment or click the "Contact" link at the top of this page.

Jake and I have worked hard to get our finances in order, and we're still striving to make wise money choices. At this point I think we are ready to take on a new challenge: being good stewards of the bodies God gave us. It should be an interesting journey!

Keep pinchin' :-)

Make Your Goals Specific And Measurable... Like Batman

Batman is the quintessential problem solver. Since his inception in 1939 he has always been, first and foremost, a detective. A costumed Sherlock Holmes. More than his martial arts skills, his money, or his gadgets Batman's intellect has always proven to be his most valued asset.

Though the movies have often failed to demonstrate this aspect of the Caped Crusader, there's a great scene in "The Dark Knight Rises" that shows Batman's intellect and how victory can be achieved when you first break down your problems and tackle them one step at a time.

First, you've got to understand, that in "The Dark Knight Rises" Batman had spent the majority of the movie getting beaten to a pulp. He had grown too cocky, over-confident, and had lost his edge. As a result, when he finally comes face-to-face with the physically superior villain Bane, Batman gets pulverized and tossed into a third world dungeon with a broken back.

As his body heals, Batman considers what he did wrong, and when he finally returns to Gotham City he approaches Bane like a surgeon, dissecting the threat before they come to blows. First he recruits some allies. Then he gathers his equipment. Then he spreads hope to the citizens of Gotham and fear to the followers of Bane by announcing his return in dramatic fashion. Finally, after months of planning, Batman springs his trap and defeats the bad guy.

With a little planning, determination, and some allies, nothing is impossible to overcome.

• Don't try to tackle your problems all at the same time. No matter how much craziness you've got going on in your life, it's wise to break the issues down and take them on one by one. This is what makes Dave Ramsey's Financial Peace University so effective—it breaks down the budgeting process into easily achievable goals, goals that you can't help but reach as long as you keep moving forward.


• As Batman so clearly demonstrates in "The Dark Knight Rises," your goals must be specific and measurable. When he returned to Gotham City to face Bane again, he had a detailed plan that included the use of specific allies and certain equipment. It's an example of the obvious—if your goals are too vague they are just dreams.


• Long-term thinkers are the ones who win. Batman knew that defeating Bane was essential to the survival of Gotham City. His plan took months to form, but it was for a far-reaching purpose. Today's culture doesn't think like this. We're all about immediacy and convenience, and rarely do we think beyond our needs for the day, week, or maybe even the month. But when we keep our eyes on the future instead of our immediate circumstances, the possibility of reaching our goals becomes more and more inevitable.

This is a simple formula that can be applied to any tricky life situation:

1. break your problem down into smaller goals
2. make your goals specific and measurable
3. plan around those goals with a far-reaching future in mind

You may find yourself beaten at times. You may find that there are some Banes out there who are going to catch you off guard, knock you down, and thwart all of your efforts, but you can't let your circumstances overwhelm you.

Are there any specific and measurable goals that you're currently chipping away at? Or have you been thwarted?

Keep pinchin' :-)

Earning A Little Extra Through Wedding Photography

So, yeah, not having a kids is a big boon when it comes to saving money. Don't get me wrong, I'm very much looking forward to the day when we bring a highly dependent, self-seeking, money-consuming scream machine into the world, but the fact of the matter is Dani and I have been able to put such a big hole in our debt because we are both able to hold full-time jobs, have few expenses, and haven't yet punched out any kids.

But that will change soon, I'm sure.

In the meantime we're doing everything we can to pay off our debt. And believe it or not that has a lot less to do with cutting back expenses than you might think. I mean, yes, doing things like finding a cheaper cable TV package or not going out to eat so much are going to ensure that less money bleeds out of your budget, but the bigger payoff is in good old-fashioned hard work.

Dani babysits when the opportunities allow. She also makes and sells crochet hats (which are super-cute, in my totally unbiased opinion), and I take on odd jobs here and there as they come around

One of things that has helped us the most is my photography. While photographing a wedding I can make almost double what I make in a week at my graphic design job, and I'd probably make a lot more if we lived somewhere else. The problem is our tiny rural area of the country doesn't see a huge demand for wedding photographers.

The problem is two-fold:

1. The population 'round these parts is the opposite of dense. Not a lot of people = not a lot of weddings.


2. And the second factor has to do with the fact that even though there are people getting married, they are really spread out. So in order to make my wedding photography a full-time job I'd have to market myself across state lines and be willing to drive several hours to get to a job, which can seriously inflate my prices.

Regardless, I do what I can, taking almost any job I can get my hands on, and enjoying the extra money when it comes. Dani and I have decided any money earned through my photography gets split two ways: half goes into paying off our debt, and the other half goes into maintaining the photography business—new camera gear, computer software, etc.


I write about this as an example of using what you've got to help yourself make some extra green. It may not make as much as photography, it may make more, but the point is you're using that gazelle intensity to develop a better work ethic and earn more money. And, furthermore, you're employing disciplines that will help you become a better money manager in the long run.

So, until that debt gets paid off and you can live like no one else...

Keep pinchin' :-)

Flexing My Muscles... or Lack Thereof

It's called "Insanity." It's a six week workout series that I've been going through with a friend. To give you an idea of how hard this workout is I'll tell you that my wife passed out from the intensity of it the first time she tried it. So, instead of my wife, I've found a workout buddy who lives up the road from me and we've been plowing through it every night for the last two weeks.

The workout is, as the name implies, insane. It's a high energy, high impact, heart-racing, sweat-dripping excursion into total body pain. The only thing I can imagine that's any worse is maybe giving birth, but, being a dude, I will never have to experience thank.

Insanity, by fitness professional Sean T., is the kind of workout I prefer though because it doesn't involve any gym equipment, weights, or exercise gear. It's just you. Your body. And a ton of cardio and plyometric exercises. It's an expensive kit, but, thankfully, I had bought it years ago, back before we were following such a strict budget.

Thanks to my workout buddy—who has attended medical school, and knows a lot more about the inner workings of the human body than I do—I've been learning a lot about fitness. Exercise is just a small part of getting into better shape. There are some dietary practices one has to employ in order to see results, because I can follow the workout instructions to a T, but if I'm not doing something as simple as drinking enough water than my body is going to suffer.

I can't help but relate this whole Insanity experience to my finances. In many ways, the financial disciplines that Dani and I have been practicing for the last year or so are very similar. If I think of my workout as my budget, then everything I do leading up to the workout is like my spending habits. If I have $1,000 in monthly bills, but only budget $500, then at the end of the month I'm going to have a hard time meeting my budgetary goals. Likewise, to get the most out of my workout, I need to make healthier choices throughout the week—a banana for a snack instead of a cookie, more water and less lemonade. It's these little choices along the way that make the whole thing work.

My friend and I just completed the second "fit test," which acts as a sort of gauge of how you're doing. I'm pleased to say we have both seen some measurable improvement in our fitness level. It'll be interesting to see just how much progress we can make in the weeks ahead.

Keep pinchin' ... or, as Sean T. likes to say, "Peace out!" :-)

Jake's Take: Rocky - The Way Winning Is Done

Deriving financial insights from today's blockbusters and yesteryear's classics.

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There is hardly any other film series that has been as good, or inspired more generations with its tear-jerking rags-to-riches tale of love and determination than the boxing epic Rocky. One can extrapolate countless life lessons from the ground-breaking original 1976 film, and the five sequels that followed—lessons for business, morality, integrity, relationships—but when it comes to money management, one lesson holds the title.

It is a well-known Hollywood tale that when Sylvester Stallone wrote the original script for Rocky, numerous studios wanted to buy it as a starring vehicle for big name actors like Burt Reynolds, James Caan, and Ryan O’Neal. But Stallone, even though he was penniless and out-of-work, refused to sell the script without a guarantee that he’d also star in the film. Much like his character Rocky, he was determined to go the distance no matter what. Eventually he got someone to bite, and the film went on to win dozens of awards including the 1977 Oscar for Best Picture.

Rocky is the ultimate story of determination, of a man whose drive to win pushes him beyond his limits. In the film, Rocky takes a beating against boxing's champion Apollo Creed, and just when the crowd and the judges, and even Apollo himself, think Rocky is going to go down and stay down, he rises again.

It’s what Dave Ramsey calls it “gazelle intensity.”

Paying off debt is rarely a one, two punch. It’s 15 rounds with Apollo Creed. Along the way there are going to be setbacks, black eyes, broken noses, pain, and tears, but, as Rocky says: “It ain’t about how hard you hit, it’s about how hard you can get hit and keep moving forward, how much you can take and keep moving forward. That’s how winning is done.”

Keep pinching’ :-)

It's OK to Reward Your Hard Work

Back in the fall, Dani and I decided to axe our restaurant budget. We enjoy the pleasure of eating out just as much as the next person, but in our effort to pay down our debt we decided that we could live without going to restaurants for a little while. In doing so, we've saved about $60 a month, or more. That's about $720 a year, which is about one whole mortgage payment for us.

We did our taxes this month—a task I gladly let my more math efficient wife handle—and, though most of our return is going toward the mortgage, we decided to take some of it and treat ourselves to a new restaurant in town. When we got the bill we remembered why we don't go out to restaurants very often, but the momentary splurge was worth it. The restaurant was great. The food was delicious. And we had a good time.

It was a good reminder to us both not to be too stringent when it comes to this whole penny pinching lifestyle. There are times when you've got to open the wallet and just enjoy yourself. There's nothing undisciplined about that. In fact, it's good practice.

In week two of Financial Peace University, Dave Ramsey's daughter, Rachel Cruze, gives a great example of how NOT to be too strict when it comes to your financial rules. Rachel describes a woman who came up to her after a seminar and told her how well her son had been doing saving money. Apparently this 10-year-old boy had saved up $300 of his own money to buy a game system. Unfortunately when they went to the store to purchase the game system, the boy had forgotten about tax. The total came to more than he could afford. So what did the parents do? They walked out of the store.

Rachel says the parents took some of what they had learned in Financial Peace University far too literally.

"I thought, 'Your 10 year old saved up $300?! You pay the tax!'" Rachel says on the week two DVD. "So, remember parents, your little kids don't have to be soldiers marching around. ... Too many rules is just legalistic, but too much grace is enabling."

Just like there's no excuse to go overboard with your spending, there's no reason to go overboard when it comes to saving. Don't get me wrong, if you're neck-deep in debt you've got to fight for your life to get out of it, but do take time to smell the roses... or try out a good restaurant.

Keep pinchin' :-)

My Greatest Partner In This Crazy Journey To Debt-Free Living

Sorry, but penny pinching sometimes really sucks. It can wear you down at times and be really discouraging, which is why it's so key to have a partner who is with you in the battle.

I'll admit, I wasn't on board with this whole "Dave Ramsey plan" thing at first. It took about three months for me to see that, A) the plan works, B) I can trust Dave Ramsey, and C) this is a really smart way to live because even though it hurts now in a few years we're going to be leagues ahead of other people our age.

Up until that realization, however, I'm sure my attitude toward savings was really hard on my wife. In fact, I know it was. But after much communication with each other, and much prayer to our Heavenly Father, our vision for our financial goals was both unified and solidified. Now that we're together on this, it makes it all much, much easier—when she's feeling the pressure of massive oil bills or expenses, I'm there to remind her that, in the long, this is just a minor setback and we'll be OK. When I'm feeling down because we don't have a lot of money to eat out or go to the movies, my wife is there to spoil me in other ways and remind me that this isn't forever.

Having conversations with your spouse about money—be it savings, spending, general management or whatnot—is never easy, but it is so, so, so essential to your success in developing and maintaining a good budget.

We're interested in hearing what sorts of difficulties other couples have faced in this area. When you get feeling down about your financial circumstances, do you give up and give in, or does your spouse come alongside you to help you pick your chin up? Maybe your spouse needs a "chin up" moment right now. What could you do to lift their spirits?

Keep pinchin' :-)

How My Tasmanian Devil Coffee Mug Tested My Discipline

Before Dani and I took Financial Peace University, I was never very good at budgeting. However, one habit I got into that helped me a lot—a habit I would eventually learn is actually recommended by Dave Ramsey—is using cash.

I had three coffee cups set up on a book shelf in my room—one of them was a super-groovy Tasmanian Devil mug that was so impossible to drink out of that it simply became a "piggy bank" of sorts—and every week after I cashed my paycheck I would "deposit" the necessary cash into one of those three cups—one for bills, one for spending money, and one for anything I was saving money for, e.g. photography equipment, larger expenses. At the end of the month I'd take the cash to my bank, make the deposit, and send out the checks for my bills the next day.

Despite the obvious flaws in my system—I would never recommend leaving that much cash just sitting around in your room—it kept me from over-spending each month. Well, almost. I wasn't as disciplined as I am now and I would occasionally find myself dipping into one cup or the other to make ends meet.

The cash system is great, but with it must come a fair degree of discipline. If, like me, you need help in that area, it might be worth it to seek out a financial accountability partner, someone who knows your financial situation and can encourage you in your efforts to get out of debt and build wealth. Also, breaking down your "cups" into more specific categories can help you know exactly how much you have to spend on different things.

Today, I've traded in my three cups for a specific savings sheet, which breaks down all the areas in which we are saving—house repairs, water bill, business, kids etc. I've disciplined myself not to spend beyond what we've saved in those categories. It wasn't easy. It took time. Discipline is like a muscle, and the more you flex it the stronger it becomes.

Don't feel like you need to dive into this budgeting thing with both feet... however, don't just dip a toe in to test the waters either. Start with some coffee cups, but keep going. It WILL get easier.

Keep pinchin' :-)

Confronting the Biggest Obstacle Toward Financial Peace: Yourself

We have successfully completed leading the first session of Financial Peace University, a nine-session money management program by financial guru Dave Ramsey. I'm pleased to report that both Dani and I came out alive.

It was so exciting to walk through the doors and see all the FPU kits set up—about 30 of them—each one containing a bundle of potential, so much hope. It felt great to be leading a class designed to help people break free from their financial burdens.

It was tough, though, knowing that there would be some people who would squander that potential. Dani and I know from experience that this is hard work. For most people, going through FPU means making significant changes to how you live and how you view money.

It's so easy to get wrapped up in our own personal financial problems that we forget that everything we have is actually God's. When that happens we lose sight of what's important. How differently would we live if we could remember that God owns it all, that we are simply stewards? How differently would we handle money? I think that managing your finances properly can be a big part of your Christian walk. Maybe you'll never be rich, but you can follow biblical principles of handling money that will create an awesome testimony for Christ.

In his book the Complete Guide to Money, Dave Ramsey talks about the "pain of change." Even when it comes to that first baby step—getting $1,000 in the bank—for some people it feels like such an impossibility that they quit before they even begin. They're too afraid to look in the mirror and ask themselves: "Am I done living the way I've been living?" "Am I willing to sacrifice to win?"

And then Dave drops this bomb: "When I tell people the first thing they need to do is put $1,000 in the bank and not touch it, it can be a deal-breaker. It requires you to look in the mirror and say, 'You're the problem.'"

And that's hard to do. I know, because I did it once. Both Dani and I had to do it. We both had to realize that there were ways in which we handled money that simply were not working. It's only when we got honest with ourselves that real change begins to happen.

Keep pinchin' :-)

Are Credit Cards REALLY That Bad?

I'm just going to go ahead and let the cat out of the bag: Dani and I have a credit card.

"But Jake, doesn't that violate Dave Ramsey's Commandments about financial freedom?!"

Probably, but, then again—and here's the second cat out of the bag—I don't necessarily agree with absolutely everything Dave Ramsey says.

"Heresy!"

Ok, ok. Just put the torch and pitchfork down for a minute while I explain.

Dave Ramsey is absolutely right when he rants about how easily credit card usage can land people in debt. Let's say you take a vacation and you decide it's easier just to put everything on the credit card. You've got money to cover the expenses in your bank account, so it's no problem to pay everything off as soon as you get home, but what if tragedy strikes? What if you need a new car or have a medical emergency and suddenly you can't afford to meet the monthly credit card payments? One missed payment and you're in the hole 30% or more! Besides, if you've got the money in your bank account to pay for everything, why the heck are you using a credit card in the first place?!

The practice of using credit cards is just plain dangerous, and that danger is multiplied exponentially if you don't have money in your bank account to cover the expenses, which is just plain stupid, as Dave would say.

"Responsible use of a credit card does not exist," Dave says in this article The Truth About Credit Card Debt. "There is no positive side to credit card use. You will spend more if you use credit cards. Even by paying the bills on time, you are not beating the system!"

Though I wholeheartedly agree with his sentiment, I think Dave can be a little too apocalyptic when talking about credit card usage.

Last Christmas, our Discover card ran a three month cash-back program where any time we used the credit card for gas or online shopping we got some cash back. In three months we earned $80 in cash back bonuses. We always paid the credit card off within a couple days of making a purchase, we never spent a cent on interest, and that $80 went a long way to helping with our Christmas shopping that year. So is there really no responsible way to use a credit card? I think maybe there is, but it takes a great deal of discipline to do so.

According to the American Bankers' Association, the average family today carries $8,000 in credit card debt. That is just shocking, and it is not where God wants us to be financially. A study of credit card use at McDonald's found that people spent 47% more when using credit cards instead of cash—forty-seven percent more! Why? Because the great majority of people don't comprehend that when they flip a tiny little plastic card onto the check-out counter they are, ultimately, spending their own hard-earned money, and probably more of it. It just doesn't compute with them. This is why Dave advocates for the "cash only system." Because when you're spending your cash, out of your wallet, it's easier for your brain to comprehend that "Hey, this is my money, and it's leaving me. Oh my!"

Dani and I have used our Discover card maybe three times in the last twelve months, but each time it is to take advantage of a special offer. It's never in huge amounts, and we always pay it off within a couple days.

Personal finance is 80% behavior. If you find that your credit card is getting you in trouble, get rid of it! Use common sense. Don't spend money you don't have.

Keep pinchin' :-)

Falling Off The Bandwagon

Over the last couple of weeks I've realized how easy it is to start over-spending and fall off the budget bandwagon.

It started out with just spending a few extra dollars on groceries. I would think to myself, "This is ok, as long as I spend less next week. I'll still come in on budget at the end of the month. No problem!" But when you do this a second time, and then a third time, that's not good! So after over-spending three weeks in a row, I checked our monthly allocated spending plan and realized that if I was careful it would be possible to still come in on budget. But, still, I had boxed myself into a corner.

I know why this happened, too.

When Jake and I first created our budget I was taking advantage of Dave Ramsey's "cash only" system for certain things, like groceries. And I can see now why Dave recommends doing this: when you go into a grocery store with a debit card it's easy to overspend, but when you go in there with a set amount of cash there is no wiggle room whatsoever. It's one very affective way of controlling spending.

After several months of doing this—and doing it well—I decided to try doing it with the debit card. At first I did ok. Occasionally I would spend an extra dollar or two, but that was easily remedied the following week.

Then Christmas came. The month of December is always full of extra expenses—heating oil, tire changes, increased electricity, presents, extra groceries to make sweet treats... you get the idea. I've found that the more times you swipe that little plastic card the easier it is to do it again and again... and again. I even overdrew my checking account for the first time in over two years! Thankfully I have overdraft protection, so the fee was minimal.

At the end of this week we start a new monthly budget, and I plan to go back to using cash. Using cash keeps me more accountable and aware of what I have to spend. Thankfully, even though I feel like I've way overspent this month, we should be ok, but it was a close call. I am going to have to spend a lot less on groceries this coming week, or just eat up those Raman noodles sitting the cupboard, whether my husband likes it or not.

If you find yourself blowing out your budget, don't get discouraged. Try using cash, for a little while at least, until you get back on track.

Keep pinchin' :-)

With Time and Discipline

Saving money is not natural. At least not for someone like me who has a deeply engrained love of stuff. I don't consider myself materialistic, but I do enjoy buying stuff. It doesn't help that I have an innate inability to understand math. Long story short: money flows through my fingers like water over rocks.

So when it comes to saving money I think I had more of an uphill battle than my wife did. I had to not just learn the spending habits taught through Dave Ramsey's Financial Peace University, but I had to unlearn the spending habits I had taught myself through years of irresponsibility. And believe me, I didn't want to. At the mere mention of making a budget I would feel ill. But I knew that through time and discipline it would work. How did I know that?

Because of video games.

Video gaming is something I actually gave up about five years ago, and believe me, THAT wasn't easy either! I loved video games. I had an X-Box, a Playstation, and tons of games. I was that gamer who had to play every game to 100 percent completion. I would stay up late playing because I couldn't stop, and consequently I'd oversleep and be late for work. Video games were destroying my productivity.

Don't get me wrong, I'm not condemning video games, nor am I condemning video gamers, because I know plenty of people who game for an hour and stop and go to bed. For them it's that simple. But it wasn't for me.

So I gave it up—got rid of my game systems and all my games—which was one of the hardest decisions I ever made. For about a year I regretted it. But something interesting began to happen. I started finding new hobbies. I started being more productive. I started meeting new people. I met a girlfriend—astounding!—and we eventually got married. And today I don't miss video gaming. In fact someone gave us an X-Box this past summer and I've barely touched it. I don't have time for it, but more importantly I've found that my personal likes have shifted. Video games just aren't my thing anymore. Through time and discipline I was able to change my feelings about something that was detrimental to my life.

When it comes to finances, the same strategy applies. You need time and you need discipline. Changing my spending habits drove me nuts at first because when all the new blu-ray movies came out on Tuesday I couldn't go buy them all! But here's what happened instead. I started seeing results in our budget. I started seeing that debt go down and our savings go up. And, I got to tell you, that feeling was better than going into Walmart to buy the latest Batman movie. Through time and discipline I was able to see the big picture. Through time and discipline I was able to change, not only my spending habits, but how I feel about money.

So if this mathematically-challenged, free-spirited geek can learn to manage money better than any monkey with a proper budget can too! So now that you've got no excuse, what are you waiting for?

Keep pinchin' :-)
Jake