An update on the "B" word

There is something about a year ending and another beginning that can sometimes be uncomfortably unpleasant in the money department. There are just too many opportunities for money to do it's magical disappearing trick during the holidays. Between all the traveling to visit family and all the gifts you buy, it can almost undo all the saving and budgeting you've been doing the past 10 months. Thankfully, with some of our money-conscious decisions made early on in our marriage, we were able to survive the holidays without feeling it in the bank.

The last time I discussed the topic of our "B" word (that's budget if you're totally lost) was back in June (here & here), when the hubs and I were young in our marriage and super ecstatic about budgeting and keeping our finances in order. Now that it's February, I thought it might be helpful to look back and what we did and see how far we've come.

First of all, I have to say that I am really glad we had the "money talk" early on in our marriage. That helped prepare us for our shared life together, when things weren't hectic and we had time to set priorities straight. One idea that we stuck to was the earn one, bank one idea. We did that for the months of June - October, from when we were newlyweds and I was unemployed til I got a job and was employed for a couple of months. When we set off to earn one, bank one, we had one goal in mind: to have enough in savings to cover 3-6 months of emergencies, as suggested by money guru Dave Ramsey. I am so glad we decided to do this before I was employed, because let me tell you -- once I got a job, it was really hard putting my paycheck straight into our savings account when I first started. I had to constantly remind myself that this money was money we had discussed to be put away for later, and slowly started realizing that 'saving for later' was a really, really really great idea. Looking back now, there is relief in knowing that if anything were to happen, we have a safety net to fall back on.

We tithe 10%. We still believe we are commanded to do this. We will continue to do this, and hopefully one day, we will increase the percentage in which we tithe, even if we get back on one salary again. Now with two salaries, it brings me great joy knowing that we have the opportunity to give back and are able to do so. Shortly after getting married, I found out that my husband was designating his tithe to a specific line-item in the church budget where he felt he was called to give (I basically fell in love with him all over again when I found out he did that). Now that we're married, I have joined him in supporting that calling, happily giving to our church's emergency fund, which helps individuals in our community cover, well, emergencies! If we are to love our neighbors as ourselves, I believe that we need to stand in the gap for them financially and help keep their lights on and their houses warm at night. This idea of portioning your tithe to something specific is not uncommon. My parents tithe to the missions department at their church. People tithe to sponsorship programs that help people in their church go on missions trips. Some tithe to a line-item that helps support church families undergoing the adoption process. Doesn't that give you joy, knowing that your tithe can go specifically towards something that you are passionate about?

The hubs and I continue to be blessed in being debt-free. We do not take this lightly. We are so very thankful that we never had to take student loans for school, nor are we in any credit card debt. Now that the hubs is in grad school, we continue to be blessed to not have to get loans for school. Through our strategic saving and several scholarship opportunities, we are able to pay for his school without the stress of having to pay it off later. Yes, it is a rude wake-up call when chunks of money suddenly 'disappear' when we pay his tuition bill, but I'm glad that we do that comfortably without having to worry about paying it back later. I hope and pray that as bigger things start coming up in our lives, we will continue to watch our steps and do our best to avoid getting into debt (or too much debt, if we have to).

Summer will be here before we know it, so we are starting to tighten things up around here in anticipation for what's coming. Knowing what's coming up helps us plan for what to do right now. We have two weddings that we are planning on attending two weeks apart from each other this summer, and while they seem like lightyears away, we are already talking about saving money for travel expenses and accommodations. Better safe than sorry I always say, or in other words: better saved now and spent later.

So that's what we've been up to in the money department. How about you? What kinds of 'check-ups' do you do to make sure you're on track with your financial spending?

The "B" word: Part 2

Thank the Lord for internet. Without it, I would probably be knee-deep in library books in the "finances" section reading the "How-to for Dummys" book about budgeting our shared income. We already decided that we're going to try and live off of the 'earn-one, bank-one' lifestyle to help us live simply while also making sure we have the appropriate savings for emergencies/future. In anticipation for our new financial situation, and in post-wedding bliss, we have attempted to figure out the following categories in ways that make the most sense, while also saving us the most money.

Savings. Currently our savings account consists of the 60% we saved from wedding monetary gifts and the entirety of my bank account from my single days. Thankfully, it is more than the $1,000 Dave Ramsey suggests in his "Baby Steps" towards financial peace. It's always a good idea to save, and to have money saved up that could cover 3-6 months of expenses in case of emergencies. You never know when something might happen that requires the need for flexible monetary income. Being smart about saving now can help ease the stress and financial pain it might be to scrounge for money last minute. We're just getting started (Ramsey doesn't call it 'baby steps' for no reason), once we get two-incomes into this family, we'll be trucking right along with our earn-one, bank-one mantra!

Gift cards. Love. them. Love the fact that I can go to a store, shop, and then never pull out cash or my debit card to pay for my shopping trip. I also love gift cards because they sometimes allow me to shop at places that I wouldn't usually shop at. Example: Starbucks. I don't really even enjoy coffee, but when I do, I don't wan to pay an arm and a leg for what I call coffee (others call it caramel frappuccinos). The only thing that sometimes frustrates me about gift cards, though, is that I can never use the exact amount. I'm usually a couple dollars short from spending it all, or a couple dollars over. Overspending your gift card can add up in the long run, so I usually make sure I stay under.

"But Jocelyn", you may ask, "what do you do with the $3.16* you have left over on your card?" Thankfully, I am not the only one in the entire world who has a little money here and there left on a gift card. Someone else along the way got annoyed appalled at the amount Americans 'waste' by not using up all of our gift card balances, that they have done something about it. Enter GiftCardGiver.com - where you can mail them your remaining gift card money and they accumulate cards together to send to organizations that can use your gift card to bless others. Yeah, us humans can be pretty resourceful when we try.

(For those of you who gave us gift cards: please know that I'm the crazy lady that says "Thank You!" and "cha-CHING" to herself whenever she swipes her gift card at the checkout line. That audible 'thank you' is said in your direction, not to the check-out guy who thinks I'm crazy)

*True story: I once did have $3.16 left over on a card, and immediately thought of Tim Tebow #whatishappeningwithmybrain


Groceries. I moved into our house, which was previously inhabited by a 25-year-old male bachelor, my now husband. What does that mean? 3 bags of Pasta Sides, a pitcher of Tang, a bag of frozen wings, and enough Hot Pockets to last a lifetime - that's what it means. When I asked him about what his food budget had been, he gave me a blank stare then laughed and said "what?!?!?!". I decided that the first time I went to the grocery story, I would not worry about a budget. Instead, I would worry about how to stock my pantry with staples that could make multiple meals with simple ingredients. My favorite things to purchase at the grocery store (especially when they are on sale): pasta, pasta sauce (marinara & pesto), chicken broth, and frozen vegetables. I have made many a meal with those ingredients - pizza, fried rice, casseroles.


Buying in bulk. One of the many gift cards we received was a gift card to Sams Club. We set aside some time one Sunday afternoon after church and made a special grocery shopping trip to Sams (complete with a great slice of pizza and a Nathan's hot dog). What did we buy? Toilet paper, paper towels, shampoo, body wash, cereal and chicken breasts (among other things). Two of those items have been pre-approved by Dave Ramsey's 'worth the splurge' list, so that was reassuring. As for the chicken, I portioned them out (2 breasts per ziploc bag), dated the bag, and put it in the freezer. Now we have chicken for meals without having to thaw too many over and over again. (Curious about what things you should buy in bulk? Read more here, here and here!)

This is just a start. People say you have to give yourself 2-3 months to get into the swing of living on a budget/within your budget means. We will update you once we feel like we have some sort of footing in our finances!

What about you? What do you do to save some money? What are some smart things you have done with your money that have paid off big-time? Any shopping tips?

The "B" word: Part 1

Budget [buhj-it] noun, adjective, verb, noun: an itemized allotment of funds, time, etc for a given period; the total sum of money set aside or needed for a purpose.

A while back I posted about our plans to live smart and responsibly with our finances. As we were anticipating our new life together as husband and wife, we had to come to the realization that our finances would also be making the merge with us (eek!). During pre-marital counseling, one of our homework assignments was to show each other our monies. Never before had I ever shown anyone my enormous laughable bank account, because up until that point the only one I had to worry about was myself. It was a very humbling experience for me, because I came to the realization that I needed to be smarter and more conscientious about where my money was going and how my money was being spent.

Fast forward to a couple of months ago. As engagement parties came rolling through, we were confronted with the task of being responsible for managing our monetary gifts. I don't know how or why (actually I do know - God), but we sat down one day and discussed where we wanted to see our money going and how much we wanted to portion out for different things. Before we even started receiving money, we decided on a percentage breakdown, and even prayed over it (when you don't have a lot of money, putting non-existent money into a category requires a lot of faith!). Looking back, I am really glad we did this before we knew how much money we would be getting. By doing so, we were able to figure out where our priorities were without the influence of a bottom-line money amount that could have made us feel like we had more to keep and spend on ourselves.

The first thing we wanted to do was to give back. We have been blessed countless times by the generosity of both friends and strangers, as they selflessly gave to us when we did/do not deserve it. Throughout our engagement, we experienced overabundant expressions of grace and love. Thus, when it came time to figure out what to do with all the monetary gifts we were receiving, we only saw it fitting to give back to a cause that we believed in. We regularly tithe 10% of our earnings, so we followed suit and carried the 10% over to OFCB Ministries and their work in Bayonnais, Haiti. (Side note: we were able to visit OFCB in 2009 and our church continues to send teams there every year. They are currently in the process of building a new medical center, and we could not be more excited to support them as they continue to be a blessing to their neighbors). While 10% may not be a lot now, we are excited that our money apportioned to be saved now will allow us to donate our money in similar fashions in the future. As my father-in-law always says, we only need faith of a mustard seed...God will do the rest!

Saving vs. Checking. I'm a checking's-kind-of-girl; "if I earned it, I can spend it!" My husband's the mascot for saving; "...maybe if I squeeze the bills I have saved, more money will flow out". But when it came down to it, we made the realization that 1. I don't have a lot of money saved up/to contribute, and 2. I don't have a job lined up. Thus, we decided that at this period of time in our life, our money gifted to us would be better off saved than spent (60% to savings, 30% to checking). And thank God we decided that -- because now the burden of rushing to find a job has been lifted off my shoulders and I have been gifted some time to settle in and try out my new legs as a Mrs.!

We will still struggle with money and budgeting (our #1 point of tension in our relationship, thanks to the results of our pre-marital counseling questionnaire). But thanks to the generosity of friends and family, we have been given a very strong foundation from which we can grow into a life of simplicity, generosity, and hospitality.

Up next: how we're budgeting our spending money, and how we've already started spending it!

Living smart

It should be no surprise to you that the fiance and I are not millionaires. In preparation for our non-millionaire lifestyle, the fiance and I have talked through (and continue to talk through) and worked out some ways we can be smart with our money. We believe that these are habits that can profoundly impact the rest of our lives if we put our minds (and our wallets and bank accounts) to it!

Continue tithing. Not only because we believe in it, but also because we have been commanded to do so. John Piper once said: "When we release a tenth of our income and give it over to the ministry and mission of Christ in the world, we honor the Creator rights of God who owns everything, including all our income." We were brought up in households that valued the act of worship through tithing, and have learned from our parents the importance of glorifying God in everything we have. We have also personally witnessed the power of tithing and how it impacts people in how they live their life in daily submission to Christ. We recognize that money, while needed, is not the definition of who we are and how we live. We choose to put our trust in Him to provide for us, "For where [our] treasure is, there [our] heart will be also" (Matthew 6:21).

Earn one, bank one. We got this idea through our pastor who led our pre-marital counseling sessions (shout out to pre-marital counseling!). This is by no means a challenging task, because it means that from our marriage on, we will be pretending we only have one income. Money + pretending we don't have much = hard. Let's be honest, who likes working hard only to enjoy half of what you earn in return? This is a revolutionary idea (at least I think so), and it challenges us to be more responsible with our money and how we spend it. This idea wonderfully matches our two varying views about money (spending what we can vs. saving what we have) into one; through this principle, we will have money put away to save for emergencies and big future plans, while also learning how to have fun with the money we set aside ahead of time.

Live below our means. What does this mean? It means we pick the 2 bedroom house instead of the 5 bedroom house. It means we pay for basic cable and not the 400 channels of HBO. It means we have weekly dinner dates with friends at our home instead of at a restaurant. It means we bring lunch to work. It means we get creative and DIY and go thrift shopping! It means we are constantly reminded that we have been greatly blessed and that we really don't need all those things we think we need.

Cash only? I've toyed with the idea of a cash-only budget system for our expenses (mainly groceries). Financial make-over superman Dave Ramsey suggests an envelop budget system, where cash is allotted to specific envelopes per month; once spent, that means you've done spent it all! I did this my first year of having a big-girl job...for the first few months. After the honeymoon period with my envelop system, I misplaced a few envelopes, "borrowed" some cash from one envelop and moved it to another, and spent too fast before the end of the month rolled around. However, what I remember working with this cash system was this: when I am holding cold hard cash, it's harder seeing the dollar bills flying out of my hand than it is swiping a card through a machine.

Make smart decisions. Don't go grocery shopping on an empty stomach.

There is still much to learn and much to figure out, but I'm excited to start this journey of finding a place for money in our lives. What about you? How do you save and spend your money?