Parent's University: Family Finances

Kat's topic at Parent University this week is family finances. This is a topic that is important to address with your spouse and it is really important to be on the same page.

About 3 or 4 months into our marriage, I realized that we needed a system. We weren't having any money issues, but we were just paying bills and not really paying attention to what we spent or when things were due. Fortunately, things were being paid on time. It just seemed too haphazard. So, I called my cousin to see what they did... She sent me an example spreadsheet of things to include on a budget.
These items were included on our budget, but also tailored to meet our spending habits or budget. When we were DINKS(double income no kids), we lived off of 65% of our net income and tithed and invested/saved 35%. Now that we are living on a single income with a baby, we live off of 80% of our net income and tithe and invest 20%.

We do use a credit card for most purchases, but we pay it off in full every month and get points towards hotel stays. This will make our vacation coming up very cheap and also very nice. I don't recommend using a credit card if you struggle with self-control or if money burns a hole in your pocket.

We don't go to the mall, buy jewelry, luxuries, or have cable. We check out movies from the library and I cook most things from fresh produce etc. to keep us healthy and our food costs down.

We like to make sure we have a monthly cushion and we also expect our utilities to be at the highest end when we include them in our budget. This means when they are below, which they usually are, it is more "bonus" money to add to our cushion, or invest, or enjoy.

We enjoy today, give regularly, and plan for the future. We do have one car payment and will not do that again. (although it is very reasonable) Next time we will pay in cash.

I recommend Dave Ramsey's Financial Peace University. Although I am not big on his presentation, his principles are sound. (I do not agree with him 100%, but I think he gives great guidelines, especially to people who may be struggling with getting their finances in order.)

He recommends that people live below their means, spend money on a cash only basis, and have a minimum of a $15,000 emergency fund. Everyone may have different ideas on the right number for an emergency fund, but I firmly believe that it is important to have one. If someone in your family loses their job or your car has major repairs needed, that is what the emergency fund is for... It is also important to note that you need to replenish it when you use it. As you are able to, of course. It may just be $10 a month... It is also important to contribute towards your retirement, unless you have a government job where you are pretty much guaranteed your reitrement.

We do not live in a house yet. We plan on owning a home hopefully sometime in the next few years. However, we will not buy a home to have a home. We will not buy a home without praying over it and without looking at what the mortgage payments will be taxes included on a monthly basis. We will go in with a firm number and if they don't match up, then we won't buy the house. That will be our answer. No.

My husband and I do not argue over finances. We agree on our budget, adjust if necessary, and make sure we live below our means. We wish you blessings in your financial endeavors! Oh, one more thing... we always try to pray over large financial decisions. Then we trust God to open and close doors.

SAMPLE BUDGET
Total Monthly Income =

Water =
Rent PMT =
Tithe =
Elect. =
Vehicle Loan Payments (Truck) =
Stocks =
Savings=
IRA/Mutual Funds=
Home Phone =
Storage Rental =
Insurance (Auto, Life, Rent) =
Cell Family =
Gas =
Food =
Eating Out Food =
Baby=


Leftover Money=