Would you like to make the whole “money management” process easier for your family? Is this a stress point for you (like it was for me)?
We hope you’ll love this interview with Rachel Cruze, daughter of finance expert Dave Ramsey and author of Love Your Life, Not Theirs. We’ll discuss instant ideas that you can apply to your budget–and all the conversations and decisions that go with creating it! (See below how she inspired me to reorganize our budget categories!)
Our basic story is this:
For the first 17 years of our marriage, budgeting gave me a headache.
It wasn’t because I wanted to spend too much. And it wasn’t because I didn’t care. It’s just that budgeting dozens of random categories felt overwhelming–like I needed to be a fortune teller or something. And when the unexpected happened (pretty much always) and my numbers didn’t match up PERFECTLY, I felt like I had failed.
If I could go back to the night Eric and I got engaged (pictured here!), I would say, “April, listen to this recording and look over these screen shots from your future family budget. It’s not that hard. You’ll get better at it. But managing finances is an essential part of family life, and God has important things for you to do within your stewardship.”
Here’s what Rachel, Eric , and I will cover in the podcast:
- Rachel’s best advice for couples working together to establish a budget. She’ll share the key routines that will help you stay on target (she and her husband have been following this exact process for six years, and it works!).
- Eric’s perspective on “The 3 E’s” which explain the WHY behind his money-spending philosophy.
- Why we, as parents, can feel great about teaching our children about money–even if we haven’t done it perfectly in the past.
- How we can give ourselves some grace and time as we work to unify this process and system.
- How avoiding the “compare snare” is possible within our families.
- Why “giving” is an experience we want our children to have–and how to help them do this.
Would you like a peek into the current Perry Family Budget?
You may go through this process differently, but when I realized that the number of budgeting categories is what overwhelmed me, I re-positioned them into these four groups (using the YNAB software that we already had in place):
Things like paying tithing, helping those in need, and setting aside money for taxes happens right at the beginning.
(2) Expenses Already Decided
There are mostly utilities, insurances, and regular payments Eric and I feel good about for the time being and don’t need to reassess on a monthly basis. For irregular payments that happen once, twice, or four times a year, we add up the total, divide by 12, and set aside that amount each month.
(3) Expenses I Can Influence “A Little Bit”
I actually keep this section at the top of my budgeting software because I mostly only spend from this category. It includes food, household supplies, clothing, gifts, fun, and three different “discretionary” funds (Eric’s, April’s, and the Family’s). Not all of these are utilized every month, and money can easily be transferred between them. But this feels totally manageable to me, and it gives me a simple way to discuss purchasing choices with our children.
I realize that the topic of budgeting can feel painful. Unemployment, health challenges, debt, and heavy financial issues can weigh us down, and it might seem easier to ignore financial planning altogether.
But what I know is that when you face the situation, identify even one way you could move things in the right direction, and get your family on the same page, it brings relief, peace, and a knowledge that you are truly doing all you can.
I also believe that God wants us to be financially stable, and when we turn to our Higher Power for help, strength, and wisdom, it absolutely comes.
LearnDoBecome Challenge:
Take a moment to think about your current budget and identify just one way you could make the process easier for your family.
Show Notes:
YNAB.COM (The budget software April and Eric have been using–click here for your free trial!)
I adore YNAB! Without YNAB, I could point to literal thousands of dollars I simply would not have. I’ve successfully made YNABers out of two friends, my boyfriend, and someone I haven’t figured out yet. I am still using YNAB 4, but I’m keeping tabs on the newer version as it gains functionality.
Wonderful!!! Yes, we just recently upgraded but both versions are awesome. 🙂 Thanks so much!
What does YNAB stand for?
Hi Narda! It’s “You Need a Budget.” http://www.ynab.com 🙂
Wow I prayed on this & I go into my email & here this is totally relatable & on point ! We’ve been married for 14 years & been winging it . This relatable guidance is exactly what we need to get us on the right track! God is good thanks Eric & April I know this is our window of opportunity to finally stop making excuses & get this right for our family of 6 actually 8 if we include our moms who lean on us financially as well. I’m so fired up.
Irene, you inspire me! So happy this is helpful. You can absolutely do this!
This is a God-send…I am so excited to 1. actually do a budget!! and 2. organize it as you have. I think I was way too overwhelmed…this helps so much. Quick question – do you have a separate one, similarly organized, for your business? My husband and I also own our business together and finances have become such a weight on our shoulders. Thanks!
Hi Jessica! I’m so glad this was helpful to you. Eric and I have a separate budget for our business that we keep REALLY streamlined. We know what our monthly “burn rate” is for our business (what our basic costs are that we have to cover first each month), and then we invest additional revenue on marketing, education, training, etc., with a budget for things like travel, supplies, etc. We work really hard to keep costs low, but to also invest in resources that will help us to grow. Eric is awesome at this and has helped me so much. I still have a lot to learn. 🙂 I think setting up a separate YNAB budget within the account for business could be super helpful. Working on that side of things!
This was great! I am going to be applying the cash envelopes where we tend to over spend.
I like how you have been giving updates on how it is working in your own life. Thanks for sharing.
Great podcast! I am a personal finance coach (Dave Ramsey trained) and I teach people all the time how to use YNAB or EveryDollar (I personally like YNAB better, but ED is good too). I like how you have thought about how you set up your budget, April. The one thing I shivered at was that you have Giving and Taxes in the same overarching category! I like to keep things in similar categories and, while taxes are important, I don’t give them the same prominence in my budget! Giving is something I GET to do. Taxes are something I HAVE to do. I put the giving category at the top of my budget so as to emphasize the priority, but relegate taxes to a lower space. But I certainly wouldn’t want the categorizing to hang anyone up! The important thing is that you have a budget, you are following it and you are giving! (and paying your taxes.)
Thanks, Andrea! And what a fantastic way to think about giving! It’s so true that the way we structure our budget can speak symbolically about how we feel about the category. I’m going to make that change now. 🙂 So glad you are part of our community at Learn Do Become!
Hi Eric &April ,we have been married for 28 years and never had a budget, I wouldn’t know where to begin!!!!!is it to late we are both retired? We are paying for our sons collage.let me know what you think. God bless
Hi Lynn! So glad to have you with us at Learn Do Become! I personally think it’s NEVER too late to make improvements in our lives. 🙂 One way that might be easy to get started would be to simply start recording what you spend and looking at it with your spouse once or twice a month. You Need a Budget (ynab.com) has some great free trainings on budgeting, and there are TONS of great resources on the web for people starting out! Wishing you the best!!