Budget 2010

What a way to ring in the new year!

Liza and I sat down for our first ever REAL home finances discussion tonight. We came through unscathed. No scratches, busted lips or black eyes. It was a real eye opener though.

Money has always been something I've had a pretty good grip on. I've always been pretty good about spending less than comes in. But over the last couple years it's been tougher. We've had the 2 boys which means hospital and doctor bills initially. Then it means diapers, formula, diapers, formula, clothes, diapers, formula, clothes, toys, diapers.....

I've gone through different tests for my headaches over the last few years. Finally found medicene that takes them away quickly. That costs money. And last spring discovered that chiropractic care really reduces the severity and frequency of the headaches. That costs money too.

Add the reality of the cost of living today with all the unexpected costs and I quickly felt some financial pressure. And for the first time Liza and agreed we can't just do what we want when we want to anymore. At least right now.

I've talked to alot of people about Dave Ramsey and his way of becoming debt free. In short it calls for major budgeting, and basically you only spend what you budgeted for. Of course the aim is to pay off debt. I don't have the book yet or any of the DVD's. I have the general principle thanks to discussions with friends and family who are using it.

We're gonna do our best to fall in line with it. But man that's tough. The money is there, but the spur of the moment dining out stops will be a thing of the past. That's gonna be tough.

I realized a couple things though.

1. We were essentially living beyond our means. Not by much, but enough to where we were starting to see and feel it. In our own way we were keeping up with the Joneses. Two car payments, student loans, fairly decent cell phone and cable packages, eating out whenever we like, buying pretty much whatever we wanted. As much as it felt like freedom, we were starting to feel handcuffed.

2. You don't realize how much comes in and how much goes out until you really sit down and look at it.

3. I just don't know how other people do it. Living ain't cheap.

So after we looked at our "real" budget, I had to start thinking about what the future holds for the Hoods. We're budgeting based on today's salary, meanwhile not knowing what my employment situation may be in 3 weeks.

Now that's a fun exercise.

We occasionally had tough times growing up. Liza recalled some of hers, and I recalled some of mine. But we were alright. It grounded us and gave us an appreciation for what we do have.

It's tough for me in a way though. I have alot of pride. I'm proud of the career I have. I'm proud of the fact that I've never had to ask family for money. If I ever missed a payment, it was because I forgot to pay it. Up until this point, I've never really had to cut back on anything. I'd just watch my finances closer.

And here I am doing a real budget!!

But like I wrote recently, I ain't worried. It's hard to describe the serene and substantial peace we feel right now. We know God's hand is upon us. His word says He'll never leave us or forsake us. I told a friend who is concerned about my job situation that God and I are tight and He's got my back.

And as long as He's got my back, I'm in it to win it.

And who knows, I could even end up in a better spot.

Why should I worry?