Our Basic Budgeting Trick

I have a secret: We are a little bit inept with technology sometimes. My friend, Amber, posted about budgeting, and in the comments, Justin suggested Quicken or Mint.com as great tools for helping with budgeting. That is awesome! My parents also use Quicken and highly recommend it. We, however, somehow got terribly confused when we briefly played with using Quicken. Fortunately, when we were dating (before our failed attempt at Quicken), we took a Family Finance class. In the class, the professor actually made a huge recommendation for a simple piece of paper on the fridge for your budget. We are into our sixth year of marriage and still using that simple piece of paper. It may not be as ideal as a sophisticated computer program, but it still helps us be aware of our expenses, and in that way it's a great tool.

This paper says "Family Budget" at the top, followed by the month and year (we print a new one off each month). Then we have sections for each of our expenses. We keep each of our receipts and post these under Groceries (food or non-food); automotive; charitable donations; eating out (dating or family); clothing; miscellaneous; and rent, to name a few. We've changed these sections over the years, and they probably still aren't the best titles, but they mostly work because there is at least a place to post each of our expenses. Beside each title, there is a price limit. These also have to be realistically reviewed occasionally.

Archaic? Yes. Difficult? No. So even for the technologically-overwhelmed or the lazy, there's still a way to keep a budget. Because, as Amber said, it's a useful tool for helping to distinguish between wants and needs.

Finally, a quote (which is at the top of each of our budgets):

"I have discovered that there is no way that you can ever earn more than you can spend. I am convinced that it is not the amount of money an individual earns that brings peace of mind as much as it is having control of his money. Money can be an obedient servant but a harsh taskmaster. Those who structure their standard of living to allow a little surplus control their circumstances. Those who spend a little more than they earn are controlled by their circumstances. They are in bondage." -G. Homer Durham