The envelope(s), please...

The most significant thing to impact our family budget has been to change to cash only lifestyle.  Once a month, Paul and I get the month's cash supply.  Although we still write checks for mortgage, utilities and charitable contributions, and we put gas on the credit card, cash is what we use for nearly everything else.  (Debit card for online purchases, car repairs and certain other agreed upon expenses).   We divide the cash into categories (groceries, gifts, clothes, eating out, etc) and that drives our behavior. It's the old "envelope method".  If there is no cash left in a certain category, we can choose to "borrow" it from another category or wait until next month.I often set up "temporary" envelopes to save for things like a sofa or a special birthday gift for one of the children.  But we can't spend what's not there.  When we made this change, it showed us how much "impulse" and/or unnecessary expenditures we were making.  At the same time, it freed us up!  I didn't feel guilty about eating out anymore because there was cash allocated for that purpose!

It's also a great way to teach your children the concept of budgeting, delayed gratification, and the cold hard truth that $$$$ doesn't grow on trees.  At least none of the trees in our yard!

Less is More - More B word

For years, Paul and I couldn't have money discussions without stress.  Candidly, most of the fault lay with me.  I tend to feel better when there is more money left than month.  And when the savings account could see us through a long line of disasters.  And if the next 25 years are carefullly planned out so as to avoid any said disasters.  Anybody know what I mean??? Obviously, our reality never matched my fantasy security so I tended to be stressed when we needed to discuss finances.  Somehow we made it through and learned alot.  The silver lining to my stressed-out state was that I was always primed to learn more ways to cut costs! 

The tip for today's theme is a website called crown.org They have free downloads that are literal step by step instructions on how to set up a budget, establish savings goals (and what those goals should be!) and put yourself on sound financial ground. This organization, and Dave Ramsey's teaching, have been paramount in teaching Paul and me how to manage our money. How to spend less, save more, give more...and minimize stress.

Today, go to Crown's website.  And Dave Ramsey's, if you like.  Browse around a bit and then download the financial map. 

Less is More - the B word

You may have another B word in mind when you approach today's Less is More project but the Word for today is BUDGET. 

Call it a spending plan if you prefer.  But you need one.  If you don't have one, you don't know what you are spending so you cannot possibly spend less.  So today you need to address this topic.

Here are some thoughts - if you already have a budget, take 30 seconds and pat yourself on the back.  Good job!  Your mission today, then, is to tweak it.  Improve it.  See how you are doing with it. 

If you don't have one, you can take a stab at it but you might need some data first.  So, put your best guess on paper but then, beginning today, write down everything you spend for 1 month.  Everything means everything.  The stop at Starbucks.  The contribution to the soccer coach's gift.  The movie money you gave to your son.  Everything.  Now, don't panic.  This is not to guilt you into hoarding your cash under your mattress - you just need to know where your money is going before you can develop a plan.  Once you have your data at the end of 30 days, you will sort it into categories to see how close you came to reality when you took a stab at  the B word.

Throughout this month, we will share ideas on how to reduce spending in various areas.  For now, though, you just need the plan.

Less is More - bday parties with no gifts

 A few years ago, my beautiful and brilliant friend Kimberly introduced me to a novel idea for birthday parties.  She invited Betsy to a party for her son and requested that we not bring a gift for the birthday boy but instead to bring a book or game for an acquaintance of their family that was hospitalized.  Her idea must have caught on because we have since received a few more similar invitations for birthday celebrations.  One girl asked her guests to bring whatever amount of money they desired to put towards a donation for the earthquake victims in Haiti.  Other birthday honorees gave books for the library or items for Samaritan's Purse shoebox gifts or a church building program.  My son liked the concept so much that,in lieu of birthday gifts, he  collected money to buy a cow for a family in Africa through Compassion International. 

So, this year as you gear up to celebrate your child's special day, give them the opportunity to follow the example of Christ.  Give to others.

Bonus - less clutter in your home! :)

Closet update!

Just cleared out the clothes that were still hanging backwards from last year's closet experience -- thought I'd share what I bagged up - 6 pairs of pants, 4 dresses, and 25 shirts/sweaters.  Gulp.  Although a couple of pieces tried to cling to my hands (saying things like "Paul loves this shirt!"  Your _____ bought this for you!!"  "This was the deal of the season!!"), I didn't cave in.  OK, except for 1 skirt.  I forgot I had it and will now wear it.  Confession!  But if it's still hanging backwards next year.....

And, ya know what, my closet is still mighty full.  I heard about a lady that pared her wardrobe down to seven pieces.  Maybe it's seven pieces of each thing.  Or maybe it's seven pieces total.  Either way, I am a looooooooong way from that.  But as long as we're making progress, right?