SOS helped us budget for our fifth
On our weekly walk date, I recently asked my husband what he thought of our new budget, stating that I needed to write an article on it. Michael, USN Retired, said, “Having a budget is critical to living within your means and avoiding debt. Without a budget, you are driving your car down a freeway at night without any headlights where a crash is imminent.”
All right: so there you have it. We need that thing–the budget. But how does one do it?
The SOS philosophy says SOS: Set Our Spending (create a family budget). And families aren't the only ones who need a budget. I was impressed today, Sunday 8 November 2009, by Father Emmett Carroll’s homily in which he stated that there were 13 different offering boxes placed around for the temple in the time of Jesus. Perhaps you dropped your coins into the “wine box,” or maybe you stuffed your monies into the “flour box” or the “oil box.”
So with that in mind, let's look at category budgeting.
Picture, if you will, thirteen different envelopes. This is the way families used to do it way back when and how we do our income now except without the envelopes:
1. the first envelope is tithe--10% off the top for God's purposes.
2. the second is housing
3. food
4. savings
5. medical.
6. household
7. auto and auto anticipated expenses
8. entertainment and education
9. clothes
10. insurance
11. debt
12. vacations
13. other
Take your income and distribute your money into each of these envelopes. If you prefer to keep your income in your checkbook, then take your income and divide that earning onto thirteen sheets of paper like the above envelopes.
Every time you spend something, either pull that money from the envelope or deduct the checkbook's expense, then deduct it from the category you penned. When you add up all of those remaining figures, it will equal your checkbook final calculation. That is how category budgeting is accomplished.
For example, you go to the gas station and spend $50 for gas. You would take the funds with you with the envelope system, but you’d deduct it from your checkbook from the penned category with the pages system.
When the monies are gone, you don’t spend anymore. Period. If you need a healthy shopping spree for stress, rob a category and take $3 in change and go to Goodwill. Works wonders.
By living this way for 30 years, we have understood how much money is coming in, and we've been aware of the expenses and how to plan for them. With five children, that has been hugely important.
Category budgeting has given us the freedom to minimize the stress of not being prepared for everyday expenditures. We haven’t been 100% successful all of the time, and it hasn’t always been smooth sailing, but my Navy Captain has guided us well. And with a budget, you can plan for your operating costs, plan for your charitable contributions, including money to The Church, and avoid living beyond your means.
Martha Wild King, M. Ed., Author
The Frugal Catholic: Learn to live on less to give and save more.