I may have mentioned that I've been "budgeting" for many years now. I may have also mentioned that we weren't all that great at it, and that last summer we experienced a big turn-around in our finances that took us from overspending (using our credit card) every month, to having money every month to pay down debt. What happened?
One of the very first and most important things I picked up from Dave Ramsey is that you should budget by priority. Your credit card bill? Isn't the priority.
*1. Food
2. Shelter
3. Clothing
Maslow's pyramid, right? If you went to college you learned this in like 10 different classes, right? Maybe that was just me.
It hadn't ever, not once, really occurred to me to put food first, as a line item on our budget, with a set amount, to which we would have to stick. Before, I always, always put groceries last. I'd pay all of my bills and see that there was X left, and that's what I'd try to "get by on," including buying groceries, eating out, having spending money, etc. And there just never was enough.
By deciding on an amount for food (and tracking and adjusting that over time), things really started falling into place for us.
There were other factors too, but this one little thing? Made a world of difference for us.
*Tithes would be first here, of course, if that's what your family does.
Wednesday, March 26, 2008
One Small Change
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2 comments:
Gosh, you are SO right. I think of my mortgage, my utilities (don't want a cold house with not water or electric, right?), and then food.
Frankly, I wouldn't put clothing on my list. I end up buying new clothes after christmas, when I get gift cards for places I like clothes from. And I may get some things now and then if needed. I certainly would NEVER budget a monthly amount in my budget for clothing. But, that's me.
Thanks for the info.. I SERIOUSLY need to work on my budget. Get things on track. And get saving more.
Oh, I totally agree! I think there are very few Americans (at least middley-class) that actually have any kind of *need* for clothing.
Clothing is actually... let me see...16th on our list, well after Christmas savings and Netflix and other things that are more "necessary" to us. :) It's also, for us, a Books/Clothing category, and is more often used for books, but is a place to cover things when I suddenly realize the kids need shoes or whatever.
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