You Need A Budget

Every year people make resolutions and often times, improving their finances is one of the top ones we hear. But how many of those people actually improve their finances? Make the hard decisions and lifestyle changes that got you into the mess in the first place?

Almost none.

You Need A Budget - Jesse Mecham

A guide based on the tenets of the award-winning financial platform, "You Need a Budget," argues that a well-planned budget does not involve deprivation and counsels readers on how to prioritize financial goals, reduce stress through strategic cash flow allocations and meet the challenges of unplanned expenses.

As a graduate of the Dave Ramsey's Financial Peace University, I can tell you that this is almost identical. Sure, there are a couple of differences and the steps are condensed, but it's almost the same thing. Not a bad thing if you aren't real religious (Dave's program is really God centered and that might not be your gig.). This is like the short cut to Dave's program, so in theory, that would make it easier.

Every dollar has a job is a line you read throughout the book and it's exactly what Dave says, instead of flitting your money away, give every single dollar coming in a very specific job in your budget. Is it going towards existing debt? Your savings account? Maybe one of your month to month bills? It's not saying you can't have a fun money fund, but you don't actually have fun money until your debt is gone, your month to month bills are under control, and you have something in your savings. Not many people want to hear that and telling people no, you can't do this because you can't afford it isn't a popular thing to do as they clutch their credit card.

What sets this apart from Dave is that Jesse Mecham talks about how to get your kids on board and teach them to look at budgeting in their lives. Maybe they get birthday money, allowance, mow lawns in the summer, at some point they will have money and it's easier to teach good money practices now than it is trying to reverse several years of bad practice later on. He ends the book with parting words but also a whole section dedicated to those times you feel like giving up and charging all of the things. It's a great motivational piece with practical tips on making a realistic budget we can all maintain.

I'm giving this one a solid 4/5 stars because it's practical and good for beginners and those of us in the practice of using a monthly budget already.

      

Budgeting and planning groups are out of control.

So this year I am really going to get back on track with planning things out and budgeting our expenses. It's kind of a necessity at this point so I shall do it. I thought a good way to motivate me and maybe keep me on track would be to join some Facebook groups that are all about that, maybe I would get some good tips and learn some new things to make it easier on me.

Unfortunately, it has done the exact opposite.

Mostly because people are really stupid. And I try really hard not to call someone stupid but these people.... I'm telling you. Here are a list of questions that have come up on the various groups I'm in, just in the last week:

I can't afford my car. What should I cut out of my budget so I can afford it? I really love it. Yes, that's a real question. There are still people out there driving cars they like, but cannot afford, and are willing to not eat so they can keep it another month. The suggestions on this post all ranged from "reduce how much you eat", "turn your heat off and just bundle up", "sell stuff out of your apartment", "try to go without insurance", etc. Not one of the 50+ comments said, "If you can't afford it, you need to sell it and buy something you can afford. Pay off your debt and you can afford a super fun car then." Not one.

We are over $20K in debt, just with credit cards. That doesn't include our mortgage, two car payments and our boat. I'm so mad my husband said we can't afford a vacation, I feel like we can. I also hate that my spending money is now only $200 a month. This feels like I'm living in a third world. It was ALL I COULD DO to not comment. Because judging by the responses that were given, I would have been burned alive. First off, if you have $20,000 on CREDIT CARDS, you are in serious trouble. I can't even fathom that. Just from the question alone I would assume they drive nice, expensive vehicles and have a swanky house. None of which they can afford, clearly. And then to "only" have $200 in spending money? Oh my god. I didn't know people had a budget line item for spending money. To me, that doesn't exist. At least it shouldn't when you're this far in debt. God damn. Learn some self restraint, people.

How much do you budget every month for planning stickers and supplies? Yes. This is in a group where people are learning how to SAVE money, pay off debt and be more frugal. Then the responses are anywhere between $20 and $100. ON STICKERS. Let me be clear, people are paying MONEY for STICKERS that go in planners that you eventually THROW OUT. This is a real thing.


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Now, I'll be honest. I've used Washi tape in my planner for re-occurring things and I needed to find them fast in my planner on a moments notice. To my credit, I'm a scrapbooker and card maker so I already had it on hand and made what I had work for me. There isn't a chance in hell I would actually buy something in the name of decorating my planner. That is the most ridiculous thing I have ever heard of. And then to spend that much on STICKERS. This isn't middle school where we decorate our book covers. Come on, now.

I'm absolutely astounded that people don't understand basic money management skills. There are a lot of people out there who have no idea how to make a budget, have no idea what you need to pay down first when trying to be debt free, have no ability to say no to themselves or to say, "You know what? I really want _____, but I'm also broke, so I'm just going to wait." None. Not able to do that at all. I can't even wrap my head around this. The only positive here is that at least I feel like a genius if I peruse through posts long enough.