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budgeting app

Money

Dave’s Smart Money Tour: A Review

February 26, 2015

Last week Jonathan and I attended Dave Ramsey and Chris Hogan’s newest Live Event – The Smart Money Tour.

live-events-page

This is our review of the event.

Overall, I would rate the event a 10/10 and it not only met our expectations, it exceeded them.

How?

1. Foundational and Fresh

We brought a couple of friends with us, each of us at different places in the Dave Ramsey Baby Steps.

Of course, they more or less revolved around those 7 Baby Steps, which could have seemed boring for us since we’ve read the book, coördinated Financial Peace University, etc.

But they repackaged and condensed the timeless principles alongside new stories and partially a new voice – Chris Hogan.

I will get to him in a moment though.

They did an outstanding job of keeping the old and new fans engaged and inspired throughout the entire event. Below are some nuggets from Jonathan’s Tweet fest.

jontwitter

2. Free Budgeting Software

This may have been the MOST exciting news of the night.

Dave’s team has spent the past few years and a couple million dollars creating budgeting software called Everydollar with an app for your smart phone.

Best part?

It’s FREEEEE!!

everydollar

We’ve been proudly sharing our love of YNAB – You Need a Budget software for over a year now…but this may change our tune.

Free is always better, amirite or amirite?

It launches next month but everyone who attended Smart Money Event received a code to use it EARLY. Boom.

Expect a review on that once it’s up and running. I would love to do a side by side analysis of Dave’s software vs. YNAB.

3. Chris Hogan

This guy is on fire right now.

He’s hilarious, animated, inspiring, and made me cry at least four times with the stories he tells.

Dave was smart to bring this guy on the tour with him. Not that Dave himself isn’t awesome…but it’s great to see him bringing other voices to the Baby Steps and his timeless financial lessons.

Chris also has a new website that I am pumped to use. It’s for retirement forecasting, which can be both motivational and terrifying at the same time.

4. Free Will Kit!

Dave gone and read my mind!

Did you know 78% of people die without a will? That’s CRAZY since 100% of us will die someday.

Now that we have Josie, it’s time to update our life insurance beneficiaries and create a will to navigate those funds in the result of our untimely death. Lord willing it won’t be necessary anytime soon but I will have peace of mind knowing we have a plan for her financially if something, God forbid, should happen to us both.

Below is Josie getting excited about us making a will!

smt

5. Inspiring and Upbeat

The entire event was just a lot of fun!

There were giveaways. A live debt-free scream on stage. And most of all, content that was relevant to all, presented in a way that gave hope.

It wasn’t dry. It wasn’t ordinary. It wasn’t hum drum. It was anything BUT those things. Which isn’t always what you expect when going to a financial seminar.

I love how Dave and his team strive to make learning about money fun and encouraging! Really, it’s what sets him a part in this area.

Overall, I highly recommend this event to others! It’s only happening a few more weeks but keep it in mind if it comes to a city near you in the future!

Intentional Living, Money

How To Make a Budget

January 26, 2015

In the past we’ve discussed why you need a budget.

We’ve also discussed how to derail your budget.

But we have not discussed HOW to make a budget. Probably should have done that first.

Whoops.

Here we are though, getting back on track and here to provide you with the practical tips on how to create a budget. This will be especially helpful if you are new to the world of budgeting or if you are trying to budget but end up confused and unable to keep up with it. I plan to post a lot of links to Dave Ramsey articles on this subject so you have more resources for motivation and inspiration.

So, how do you make a budget?

1. Income

First things first, you need to know your income so you can allocate it properly.

This includes things like paychecks, freelance work, child support, interest, birthday or holiday money, and side jobs. Any money that comes TO you is part of your monthly income to budget. It might be irregular and that is OK. It may be slightly trickier for you to gather up and predict your monthly income but it won’t be harder when it comes to the actual budgeting process.

Some of you get paid twice a month and will create a budget twice a month. Or however often you get paid you will make a budget for that payroll period until the next one.

For us, we only wanted to create a budget once a month. We simply combine paychecks from the 15th of the prior month with the paycheck on the 1st of the current month to create our new monthly budget. That way we have a month worth of income to meet a month worth of expenses.

2. Outflow

The next part is to know what your actual expenses are.

Who do you pay every month? How much is your rent? What do you have set up on auto withdraw you aren’t even aware of? Basically, where are you spending your money?

Knowing how and where you spend your money is vital to creating a budget since you know where you need to allocate funds.

 3. Get a Head Start

In order to walk into February with a complete budget, you need to do some advance preparation. The last thing you want is to have an incomplete budget and to spend money un-tracked for several days before you get down to budgeting for the month. It derails the budget and defeats your overall goal.

For example, we are going to host a new budget link-up for the month of February. All you cool cats who create a February budget will have a chance to photograph your budgeting in action and upload it to our blog for accountability. Cool huh?

BUT in order to join in the fun, you will likely need to have spent time working your budget a few days in advance.

4. Host a Budget Committee Meeting

If you’re single, you are the only one who needs to be in attendance for this meeting. If you’re married, BOTH spouses must be present to agree on the written game-plan for the month.

To save time, I typically prepare the budget for what I think looks about right for the month. Then Jonathan and I have our meeting. We go over the budget together and he has the freedom to ask questions, insert changes, or propose a reallocation of funds. Then at the end of the meeting we review everything once more and verbally agree to it.

5. Zero-Based

This is the part I think people get confused about.

Many people feel successful if they budget out the month and then have extra left over. That means the budget wasn’t zero-based.

Zero-based budgeting means every dollar has a job. You want to assign all your money into a category, so that at the end of budgeting, you have no money left to allocate anywhere. It’s either working for you in savings, gas, groceries, tithe, etc. Money that doesn’t get a job will blow out of your hands fast!

This is where you want to have a budgeting tool for help as you create the zero-based budget. The most important things get funded first – food, lights, water, shelter, and basic transportation. Then you work your way down the list assigning money to various categories in the budget until you reach zero.

Whatever Baby Step you’re on will impact how you budget dramatically. Are you in the first two steps? Then your budget will be pretty bare bones and your goal is to get that “debt snowball” category as fat as possible. Perhaps you are in the middle baby steps, so you will likely be saving a lot of your monthly income and the reins will be looser in lifestyle categories. Or maybe you’re in Baby Step 7!! At that point you can do whatever you want with your budget since you literally owe no money to anyone, not even on your house.

6. Staying On Budget

This is where your budget will sink or swim.

You have to consult your budget and track your spending throughout the month. You can’t just create a pie in the sky budget on the first of the month and then let all hell break loose. You have to steer the ship or your lack thereof will steer you into financial ruin and perpetual disorganization.

Dave Ramsey has some simple tools to help with this. There are like a million budgeting apps you can download. We use YNAB – You Need a Budget and are absolutely in love with it. Budgeting has literally never been easier for us but we went months in our early days of doing pen and paper tracking with cash envelopes to build discipline into ourselves.

7. Roll With the Punches

In your first few budgets, you will learn that you grossly underfunded particular categories and overfunded others.

This is OK.

You have the ability to rework the budget during the month if that’s what needs to happen. You can assess that you won’t be using as much money over in gas for example so you can shift the extra over to groceries or the forgotten birthday gift for your brother.

Just don’t make a habit of this. Over time you should be getting better at making a budget so that eventually you will need to readjust next to never since you are a master at knowing your expenses and what you spend in particular months.

There you have it, friends. Some tips, tricks, and pointers on HOW to get budgeting!

Join us here at True Good and Beautiful at the beginning of February for our NEW budget link up!

Happy budgeting! 🙂

 


Photo for this post CC-BY-2.0 Jacob Edward. Filter, title, and logo added.

Money

One Simple Tool to Keep Christmas from Breaking the Bank

December 2, 2014

It’s that wonderful time of the year once again…

Christmas time. Well actually it’s currently Advent but you know what I mean.

For some of you, it snuck up when you were least expecting it despite the fact that Christmas always falls on December 25th.

Oops.

I fully admit to being one of those people this year. Having a baby on November 10th meant that my time to mentally and financially prepare for Christmas sort of went out the window. Until yesterday…when we had the Teixeira Family Budget Committee Meeting and we had $0 in the Christmas category.

That means Christmas expenses are going to come solely from December’s budget…which is doable by cutting costs elsewhere but we should have saved for the past several months in smaller chunks.

I’ve read the statistics. The average household is planning to spend over $861 on Christmas gifts this year. To us that sounds like a LOT and we don’t plan on spending anywhere near that. To others that might be about right or nowhere close to what you plan to spend. We simply want to write this blog post to be a blessing to all of you, no matter what your Christmas budget may be this year.

For those who have saved up or are like us and all of a sudden need to squeeze Christmas into your December budget, there is a tool designed to help you keep track of your Christmas spending. This way Christmas spending can be budgeted and tracked – reducing damage to your bank account, financial peace, and relationships.

Why are we using Dave Ramsey’s My Christmas Budget web app, and why you should too:

1. No Fighting.

We don’t want to have any money fights associated with Christmas. Not only does setting aside a specific overall dollar amount cut down on the potential arguments but this app lets you break down spending by person or event on your list. That way you can’t even fight over how much to spend per person or worry about going over or under budget for the important people in your life.

2. No Guilt

Budgeting = Freedom. I can go to the mall and joyfully spend lots of money (to me) in one fell swoop without guilt since I know my budget won’t lead me into harms way. I can be guilt-free about walking to my car with a dozen store bags since I know it was all planned and accounted for. Ahhh, I can feel the peace now.

3. Keeps My List Organized

When I am out shopping I always forget who I am out shopping for or who I already bought gifts for etc. The app allows us to track who we’ve shopped for by name and even enter the details of what we purchased for them.

4. Balance and Intentionality

I love how the app allows me to take my overall Christmas Budget and spread it out over the people and gift exchanges I plan to be part of. This helps us think in advance about what we want to spend on certain people, why we want to spend that amount, and what items may fall into that budget realm….making shopping even easier.

That’s why we are using Dave’s Christmas Budgeting app and a few reasons why you ought to download it too!

Protip: You can use this website like an app by visiting it on your iPhone in Safari, then clicking the share button (square with an arrow coming out of it) then selecting “Add to Home Screen.”

Have a wonderful rest of your Advent season as you prepare for Christmas!