Cash flow planning help

After the cash flow planning / budgeting week, you may be a little overwhelmed by all the paperwork Dave recommends to manage your financial life...each month. People often ask me, "Do you really do this?" I can assure you that I do and I can assure you that I don't.

Let me explain. I don't complete all the paper forms, but I have a spreadsheet that includes all the forms and I plug our numbers into that every single month, adjusting until income minus expenses equals ZERO. And it takes just a few minutes. Carrie and I discuss it and agree to the plan. We use the cash envelope system, which reduces the workload through the month. And I can assure you that it works.

Keep in mind that once you get the kinks worked out of your budget many of the line items don't change. That is why I encourage people to do the hard work and commit to stick it out for 3 months at least before deciding how doable it is.

And when it comes to the envelopes, here is how we do it. When we take the money out for groceries for example, I count that full amount as spent for the month. I don't track our spending within the envelope, if that makes sense. Some people do. I don't. So instead of 6 or 7 or more transactions for groceries, I record only one each month. This makes the tracking very simple. And Carrie doesn't have to call and ask about buying something. As long as she stays within the cash allotted for a category, she has total freedom. She likes that!

Below are some online money management tools you may want to check out. They do the math for you, making the process of of adjusting to zero much easier. These are great tools that will help you to WIN.

• Dave Ramsey's Gazelle Budget Software (available free for members during FPU)

https://mrc.daveramsey.com/

This is the real deal right from the source. You get access to all kinds of tools, help and encouragement to keep you "Gazelle Intense" on your journey to Financial Peace. This is an incredible tool I encourage you to check out.

You can also buy the software on CD for $18.95 at http://www.daveramsey.com/store/budgeting-tools/budgeting-software/cBUDGETING-cBudSoft-p1.html

The CD software is PC-only. Dave often offers it on sale for only $10.

There is a "Lite" version of the budget form you can use without login at:

http://www.daveramsey.com/tools/budget-lite/

Just print it off after completing the form.

• Mvelopes

http://www.mvelopes.com/

This is another amazing online software system that is available for a fee. It can connect with your accounts online if you want for it to automatically download transactions. You can make adjustments from there if needed. It uses a virtual "envelope system" to track you budget-to-actual and keep you on track. You "fund" the "mvelopes" and spend from them online, making tracking very easy.

• Mint.com

https://www.mint.com/

Mint has become very popular because it also connects online with your bank and other accounts and because it is free. It automatically assigns expenses to budget categories based on the place of purchase (for example, if the purchase is from a grocery store it determines the expense to be groceries). You can make adjustments as needed. Mint does collect data about your finances anonymously, which is a concern for some.

• YNAB (You Need A Budget)

http://www.youneedabudget.com/

YNAB is available online or you can purchase the software for PC or Mac. It offers lots of online resources to help you understand how to use the YNAB system. YNAB is a great tool, available for a fee.

• Pear Budget

https://pearbudget.com/

Pear is a simple but powerful budget system offered for a small monthly fee. Pear Budget "Uses the classic “envelopes” method of budgeting, but updated for the web. Fans of Dave Ramsey love us!"

• Microsoft Excel or other spreadsheet software

If you are comfortable and familiar using spreadsheets and would like me to email you forms in this format, just let me know and I will send you what I use.

Some people like the manual forms. Others prefer different software tools. Find what works best for you and that you will use ongoing. Make it a habit!

Most importantly and this is true always...if you need any help or have questions, please contact me. I am here to help in any way I can.

Week 3...

As Dave asks, "If you managed money for You, Inc. the same way you manage money for you would you fire you?" Think about it.

Right about now is when you start to realize this isn't just fun and games, but it will really require real time, real effort, and real work! Financial Peace isn't a light-weight plan but requires you to do some heavy lifting.

If you were to make $1 million wouldn't you spend some time learning how to manage it? What should you do with that much money? What are wise things to do? What are stupid things to avoid? What will it take day-to-day to take care of that sum? Consider that over your working lifetime, you will undoubtedly make at least $1 million. That's right. Add it up. You will probably make quite a bit more than that.

You are doing the right thing by setting aside a mere 13 weeks to explore the issues surrounding money and sound management.

Fight through the cash flow planning forms if it isn't easy. Talk about money honestly and openly with your spouse if you are married. Do the hard work to make it work.

And keep coming to class! It will change your life! There is so much more to come, from insurance, to investing, from dealing with creditors to negotiating.

Are you going to do what it takes to win? I believe you will.

What does it take?

So we've started the journey - and it is an important one. Many people want to give their entire lives to the Lord, including their finances, but they honestly don't know how. We are going to walk through the steps together and I believe these 13 weeks are going to allow many to reach a new place in their faith.

But it is not easy. Did you catch that one during the first Super Savers session? Or maybe it hit you as you considered things you learned this week, or in reading your book, or as you completed your Quickie Budget. It may take some big changes. And change is tough. And discipline takes a lot of determination.

I have walked down this path with hundreds of people through Financial Peace University and personal financial counseling. There is one common denominator in those who win and those who don't quite make it.

So what does it take? I call it focused intensity. It looks a little different for each person, but it sometimes resembles a sort of anger, or drive, or desperation, or attack mode. It refuses to give up or make excuses. It holds nothing sacred - but evaluates everything and it makes some serious sacrifices. It often takes overcoming some fear. And it may require a tough talk with that pouty and sometimes childish person you see in the mirror everyday (don't take it personally - I see him, too).

Are there obstacles? Yes. Are there valid reasons some of the recommendations won't work in your situation? Sometimes. Have you tried some of the ideas and been rejected? Likely. But focused intensity doesn't give up. It doesn't take "NO" for an answer. It doesn't let the excuses pile up and keep you down. It keeps trying. It gets back up. It keeps looking for new ideas. It never quits. It never gives up. And over time, I have never seen it fail.

How serious are you about changing your life? What will it take for you to save money? Or to move to the next Baby Step? What does focused intensity look like in your life?

13 Weeks to Change a Life

For the next 13 weeks we are taking a journey...to change our finances...to change our marriages...to change our perspectives...to change our future...to change our lives.

Financial Peace University is a course about finances, of course. But it can affect every area of your life if you let it. Use it to its fullest. Join in, jump in...it will change your life.

Thirteen weeks is a long time. Thirteen weeks is not a long time. Thirteen weeks is enough time...

...to form a habit...to change your life.

Don't just take the course. Don't just show up. Read the book. Do the homework. Think about the concepts. Apply them to your life.

Practice. Try. Stumble. Get up. Practice. Try. Learn. Press on. Practice. Try. Do it. Do it for 13 weeks.

It's hard. It's not easy. But decide today to engage this process of learning and changing. Decide today which habits are holding you back or need to change. Maybe it's your spending. Maybe it's your communication with your spouse. Maybe it's your patience (think debt). Maybe it's your accountability. Maybe it's your giving. Maybe it's your attention (as in, paying more of it).

Change your habits and change your life. Thirteen weeks is enough time for that.

I don't know what you are facing but I hope in the next 13 weeks you do just that - FACE IT - and begin to take the steps necessary to change...your finances...your marriage...your perspectives...your future...your life.

Be All That You Can Be

Whether you are in the Army or not, the old tag line is a great one. With all the uncertainty in the market and layoffs expanding into more industries, a lot of people are getting antsy wondering what the future holds.

• Be the best employee in your organization so that of all the people, they want to keep you.

I have been using a "Getting Things Done" workflow model by David Allen to vastly improve my efficiency and effectiveness at work. Anyone who has come into my office in the last couple of weeks has noticed the change. Make sure your work product and ethic reflect that you are doing your work as unto God and not unto men (Colossians 3:23).

David Allen's workflow model, along with Steven Covey's calendar management method have been very useful to me. But like my Pastor says about workout equipment, whether you have an eliptical machine, treadmill, weight bench, or the Total Gym, they all work and any one of them will help you IF you use it! As it relates to your work, find what helps you most and USE IT.

• Maximize your value by playing to your strengths.

Pastor Andy Stanley writes about this in his book. The Next Generation Leader. We have a tendency to spend a lot of time and energy building up and compensating for our weaknesses, while giving little time to improving our strengths. This leaves us mediocre in the weaker areas, and moderate in our strengths. Put it together and you get one work - OK. Okay employees are less valuable than strong employees. Where you add the most value in your organization is where you are the strongest.

Most people have certain responsibilities at work that they don't like as well or at which they are less proficient. Complete that work at your best but don't spend all your energy trying to grow an area with little potential. Again, the idea is to become so strong in your strengths that your employer frees you up from your weaknesses in order to maximize the value you produce. It may seem idealistic, but move this way. You may find yourself becoming more bold, more secure, and more valued.

• Don't retreat.

Sometimes you have done all you can do and bad things happen anyway. In Ephesians 6:13 (NIV) Paul said,

Therefore put on the full armor of God, so that when the day of evil comes, you may be able to stand your ground, and after you have done everything, to stand.


There are times when you have done everything you can do, and all that is left is to stay standing. No ground may be gained today, but "stand your ground" and do all you can so that "after you have done everything," you may be able to stand.

Don't miss the way to do this - put on the whole armor of God, even before the day of evil comes. Be ready in advance.

• Trust in the Lord.

Proverbs 3:5-6 (NIV) says,

Trust in the Lord with all your heart and lean not to your own understanding; In all of your ways acknowledge Him and He will make your paths straight.

God is big enough to make a crooked path straight. Another translation says, "He will direct your paths." Spend more time putting your trust in the Lord than worrying about the path. This verse makes clear that He will take care of the path you take, IF you fulfill the first part of the verse.

Another verse to reference is Romans 12:2. It is my verse for 2009...I'll say more about this in #4 below.

• And as always, when uncertain times come, you can increase your peace and build a safety net by following some good financial advice:

1) Get out of debt


2) Build and/or maintain a solid 3-6 months savings fund


3) Diversify your investments, including some international funds


4) And this should really be #1 - Trust in the Lord.

Back to Romans 12:2 - while so many people are stressed about the future of their job or retirement plan, we who trust in the Lord live in a different Kingdom, and we need to remind ourselves of that.

In the Kingdom of God, His Name is "Provider." His Name is "Peace."...So don't let your thinking be "conformed to this world" but be "transformed by the renewing of your mind". There should be a dramatic difference in how we who trust in the Name of the Lord approach troubled times.

Be all that you can be. Carry the Kingdom of God inside of you. Bring it into your home, your church, your work, your social sphere... May "Your Kindgom come, Your will be done on earth as it is in Heaven."

There Are Always Options

So it's Thanksgiving Day and my family is driving to Wichita to celebrate the holiday. We are getting close to my parents' home when I hear a clatter under the hood. I pull over thinking something has come unclipped and needs to be reattached, but no, it is the serpentine belt coming apart. The outer two edges are flopping wildly, slashing at vacuum hoses, etc., under the hood. Doesn't look good, but at least it didn't break!

We made it to my parents' home. My brother-in-law came out to pick up our family (he has a minivan, too!) to take us to the place of our Thanksgiving celebration (not feeling so festive at the moment). He loaned us his van after taking his family home so we could get back to my parents' and return for a visit the next day. Instead of visiting my sister, my dad, my brother, and I worked on the van, replacing what seemed like everything on the passenger side of the motor (including the water pump for you Dave Ramsey fans). Total cost: $140 and a lot of inconvenience on a holiday weekend.

The advice I want to pass on today is simple, but we often bypass it in the stress or emotion of the moment.

Consider your options

But what do I know about repairing a car? It is so cold and this is a special weekend. I should spend it with family, not repairing the car. Again, consider your options.

Who do you know that could help? My brother-in-law was willing to help with a ride and a temporary vehicle. My dad and brother were willing to help with the repairs (both time and expertise). All I had to do was lay down some pride and frustration to allow for the blessing of their generous gift. More than likely you know someone who could help. You just have to ask. Whatever happened to neighbors and friends helping each other? Don't let the spirit of giving lapse. Look for opportunities to help others and ask for help when you need it.

What must be done and what can wait? I am often tempted to do things that are unnecessary for convenience. "While I'm at it, I might as well..." Thankfully, I don't use credit cards. Back in those days, I would have not only rationalized the repairs to the van, but probably a new set of tires as well! While a new set of tires might be nice, and even needed in the near future, they were not necessary to fix the problem at hand. So, if they weren't in the plan for the month, they should wait. Especially when facing something unexpected, stick to the necessary. Times of crisis are not the best to make decisions - especially financial ones.

What can you really afford? You can afford whatever you can fit into your budget for the month! But isn't this what an emergency fund is for? Yes - and no. I could have coughed up several hundred dollars that Friday to have a shop do the work. It would have been well within the $1,000 baby emergency fund we have in the bank. It was VERY tempting. Don't use the emergency fund unless you have an emergency - and almost nothing is really an emergency. If everything is an emergency, you won't have an emergency fund left when a real emergency comes along! Try, if at all possible, to find it in your budget.

What are you willing to do to win? Stay focussed on the goal. Remember, there are times when we "live like no one else so later, we can live like no one else." Even though it was in my emergency fund, I am closer to my goal of being debt-free because I didn't spend the money on labor. It took some effort, some discomfort, and inconvenience, but in the end it was worth it. I got to spend some great time with my dad and brother, fixed the van, and was actually able to budget the repair into my December budget rather than tapping the emergency fund. Remember, it's your behavior that leads you to win.

This post is not to toot my own horn, but to give a real-life example of how it is done. I run into people all the time who have lots of excuses why they are not getting traction financially. They "don't have a choice." They refuse to consider their options.

You may have to take your car to the shop because you truly cannot do the repair yourself and don't know anyone who can help. That's okay IF you truly have no options. It may not even be your car that is the concern. But whatever you are facing, always consider your options.

Make exploring and utilizing the options you have a habit. If you are willing to do a little extra work, suffer a little inconvenience, and allow some people in your life the opportunity to help, you will find there are many different ways - many options - to solve the problem you are facing, whether it is financial or otherwise.

Getting a job (part 2)

Earlier I wrote about my friend who had lost his job but lost no time in finding several very realistic prospects. I believe one reason he was able to capitalize on those prospects was that he had guarded his good name. Today's post discusses another reason he is going to win.

2) The proactive approach always wins. He began his search the day he lost his previous job. He looked at all job options rather than limiting his search to a narrow industry or job type. He didn't sulk or take a break, but he took care of the important business right away. He got the unemployment insurance claim process started so that if he needed it, it would be ready. He sent out resumes, searched online job postings, and networked with everyone he knew. He and his wife addressed the personal finance side of the situation. What's more, they had already prepared for the eventuality of an emergency occurring. He sought counsel.

I often talk to people who are looking for jobs. They send out resumes in a shotgun blast and wait for callbacks. It's not going to happen for them. They don't get interviews. Don't think I'm minimizing the difficulty of finding a job, especially in a tough economy. But people are being hired every day. It might as well be you.

a) Prepare for emergencies (they will happen). Because he had prepared (had an emergency fund), the stress of losing a job was somewhat diminished and my friend had the emotional and financial capital to take some time to make a good transition.

b) When you're knocked down, get back up. Don't sit and sulk for two weeks before you engage in the process. You were planning to go to work tomorrow before losing your job, so go to work tomorrow looking for a job instead.

c) Keep seeking until you find. If at first you don't succeed, try, try again! Follow up. Call again. Learn to distinguish yourself. You have only a few moments to make an impression, so be ready. Unending persistence will pay off. Read The Go-Getter by Peter B. Kyne. It's an old book that will teach you how to be one!

d) Do whatever it takes. Lay down your pride and even your dreams for a while. If you still aren't finding what you need, secure temporary work to survive. There are jobs out there. They may not be in your chosen field and they may not be appealing long term, but when you face a crisis (like losing your job) and you aren't prepared, you don't have time to wait for the perfect opportunity.

These two posts are not an exhaustive list of what to do if you lose your job, but represent my initial observations after talking to my friend about his situation.

Just Do It!

I'm tired. I've been busy. I haven't been as productive as normal. I haven't written my weekly blog for a few weeks. A lot of life has felt out of my control. So what's the problem here? ME!

My attitude, my actions, my discipline, my responses to circumstances and even feelings all have one thing in common. They are mine. I can allow them, adjust them, change them - whatever. It's up to me.

One of the things that slid this month was creating our family budget (I just finished it last night - 8+ days late). I was on vacation (excuse), then I was catching up at work (excuse), and meetings, responsibilities, interruptions (excuse, excuse, excuse)...

Cash flow planning (budgeting) is the fundamental key to success with money. A new budget should be in place and agreed upon by spouses before the month begins. But it is also the hardest thing to implement and maintain - especially when we don't feel like it.

Winning with money is all about BEHAVIOR. That's why it is so hard. If we don't change our behaviors, our finances won't change. If we do change our behaviors, our money situation will change, too. Make a plan and stick to it! Write it down and evaluate it weekly.

When it comes to doing these hard things, I often think back to what Dave Ramsey say in the first lesson of Financial Peace University: what if my child's life was on the line? It was all up to me. Could I find a way to get this stuff done? YOU BET! I could. It's a morbid question but it makes the point--

IT IS POSSIBLE. NO MORE EXCUSES! It is a question of priority and willingness to DO WHATEVER IT TAKES.

I believe there are only two reasons why we have financial distress:

1) We have made a decision that is out of our financial position (e.g., bought a home or car with a payment that throws the fixed expense out of line) or

2) We are not managing our money well.

To fix 1), SELL IT.

To fix 2), BUDGET IT.

But no matter what, in the immortal words of Nike, JUST DO IT!