January 30, 2011

Tip of the day—Know your numbers

How much did you spend on clothing last year?  Can’t tell me?  I’m guessing then that you don’t have a family budget. 

I can’t tell you how much our family budget has helped us.  Yes, it is a bit of a drag to put everything on paper and to be disciplined with your spending, but it is much better than the alternative—debt.  We know how much money is coming in and going out and how much we spend in each category annually.  After having recorded our family budget for over a year now, we are able to see trends in our spending.  We are better able to anticipate what months the utility bills will be higher, to know when we buy more gifts, and to be reminded of when we have certain annual bills and expenses due.  It has also helped our marriage.  We communicate about money, goals, and needs and wants.  We work together on our spending and savings.  We are teaching our daughter about budgeting, earning money, tithing and saving.  In short, a budget is a must.

For more information and inspiration to get you budgeting, check out Dave Ramsey’s most recent newsletter here

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