Free to Be Intentional

Have you ever made a special trip to the grocery store to buy a loaf of bread but ended up leaving with two bags of junk food? Have you ever gone to the mall to buy a new pair shoes, but also went home with a new jacket and three pairs of jeans? Have you ever taken $40.00 out of the ATM with a plan to only use $25.00 and save the other $15.00, but quickly spent it all?

Don't get me wrong; it's okay to enjoy the fruit of your labor by buying things you haven't planned for in your budget, but there's a proper way to do it. Budgeting isn't meant to be so serious that you can't stray from your plan; instead you have to be intentional in your planning so that you can take advantage of opportunities to spend what I'd like to call stray money.

Who says you can't budget for that unexpected sale or that deal of a life time? Sure, it's hard to define an expense when you don't know what it is or when you'll encounter it, but that's why you allocate funds for it in your budget. You set aside stray money so that when you come across an exciting opportunity, you can indulge in guilt-free spending because you know your financial plan is still intact.

Too often, we purchase items frivolously, picking up a candy bar here, coffee there, and fast food every where...all without giving thought to our budget. The bottom line is that we have to become intentional about how we spend and how we save if we're ever going to become as successful as we'd like to be with handling our finances.

Remember, change doesn't just happen. We're not going to make better financial decisions without being deliberate about them. If we budget $20.00 for eating out this week, then we shouldn't be spending $40.00. If we have $100.00 set aside as stray money but want to buy a new I-Phone that could cost more than $400.00, we have to exercise restraint. We will need to discipline ourselves to save for it and purchase it at a later date instead of whipping out the credit card to make up the difference so we can have it now.

Since our new year is set to begin in less than three days, let's enter into it embracing the freedom to be intentional. Instead of throwing caution to the wind, let's catch new determination in the stillness of December's end and allow our financial lives to be changed forever!

Thirsty for Financial Planning that Works

Creating budgets and taking advantage of other financial planning measures help us to prepare for short and long term, expected and unexpected expenses. We work hard with the intent to earn enough income to cover such expenses, and of course, hope to enjoy a surplus that allows us to build a comfortable nest egg for the future.

Most of us plan for regular expenses relating to housing, transportation, clothing, grocery, insurance, education, etc. If we're wise, we also try to prepare ourselves for unexpected expenses...financial emergencies that occur when the water heater stops working, when the transmission fails, when the kids need expensive schools supplies, or when a spouse walks out. How many times have we experienced emergencies that have cost us more than our budgets or nest eggs could handle?

Unexpected expenses...don't you hate them? You know what I mean. You're happy about your new discipline to save and are proud of yourself for building up your savings account from $50.00 to $1,000.00, when all of a sudden you experience a financial emergency that is set to cost you a minimum of $1,600.00. Not only will it wipe out your savings; you also don't have the other $600.00 (or more) you'll need to pay the expense in full. What will you do?

What about those of you have worked hard and denied yourself some really fun opportunities in order to pay off that $8,000.00 of debt in one year, but now are unable to enjoy being debt-free because you have no savings to handle life's emergencies. So, when the IRS sends you a notice that a previous tax return included discrepancies that now require you to pay the federal government $793.00, your debt-free-self has no money to pay them.

What have your experiences been like? Has an unexpected expense ever left you in the uncomfortable position of trying to decide whether to pay your rent/mortgage or your car payment, whether to buy groceries or your prescription drugs, or whether to keep your cable service instead your internet service? Trust me, you are not alone. I have been there and done that!

That's why I'm thirsty for financial planning that works. I live to help people establish budgets and encourage financial habits that enable hard working individuals to spread their finances around in ways that will allow them to meet their financial obligations while simultaneously building their savings and emergency funds. In essence, I have a passion to prepare people not only to experience the unexpected but to answer it with a nest egg set aside just for it.

What about you? Do you have an "Unexpected" Fund or Emergency Fund to help offset irregular expenses? If so, how do you make it work for you? If not, how do you handle the unexpected when it occurs?

Teach The Children

As parents and adults, we're responsible for preparing children for becoming adults themselves one day. We teach them how to talk, how to walk, how to read, how to complete chores, how to play sports and other games, but how many of us take the time to teach them how to handle money? Why aren't financial lessons a necessary part of our agendas in raising and cultivating responsible children into mature, wise adults?

Since we're talking about budgeting this week and preparing ourselves for the upcoming year, why don't we take a few minutes today to share financial principles and concepts with the leaders of tomorrow? Does your daughter know the difference between income and expenses? Does your nephew understand how to prepare a budget? What do your children know about credit and debt, savings and investments? What about your teenagers? What do they understand about banking or compound interest?

It has taken many of us years to understand financial concepts and consequences that our children need to know today. Therefore, I'm asking that we take some time today to give them the advantage of learning  how money works now so they be better equipped to manage it as adults.

Change Doesn't Just Happen

We've all heard the following:

Money doesn't grow on trees.

It is God who gives us the power to gain wealth (Deuteronomy 8:18).

The wise man saves for the future, but the foolish man spends whatever he gets (Proverbs 21:20). 

Each of these statements reveals a truth about finance:  change doesn't just happen. Unless we're willing to do things differently and much more consistently, we will continue to experience many of the financial ups and downs that have become norms in our lives. The truth is that money doesn't just grow on trees; we have to earn it and establish a budget that will help us to control how we'll spend, save, and invest it. The truth is that while God gives us the power to gain wealth, He also gives us the ability to work hard, use our creative minds, and apply financial principles that will enable us to establish a foundation that we can build upon. Finally, the truth is that one of the most important difference between the wise man and the foolish man is perspective. The wise man lives for tomorrow and leaves a lasting legacy, while the foolish man is only concerned with today and is soon forgotten after he's gone.

When it comes to our finances, all of us have the potential to be wise. We can all pursue greater financial knowledge and then apply the principles and strategies taught, but none of us can build wealth without vision and self-discipline. Improving our financial status requires an immediate assessment of who we are now, what we do now, and where we are now in our financial lives - then who we want to be, what we want to do next (short and long-term), and where we want to be in our financial futures. That's why budgets are so important. At the very least, it can help us to answer that first set of questions and assist us in determining the answers to the others. A budget is a great resource for helping us to develop the self-discipline to plan how we'll spend our earnings and how we'll actually stick to that plan.Don't overlook the opportunity to fine tune your financial planning, especially prior to the new year. It's the only way to break old habits and missed opportunities that have left us wandering around and living beneath our potential.

When do you get paid next, and what will you do with that money? Who do owe and what will be left after you pay them? Are you living with a regular surplus or trying to survive amid usual deficits? These are questions you need to be able to answer, and you can if you choose to deliberately do so. Why not make today the day you pursue change and work on perfecting practices that will help you to cultivate financial vision and discipline? You can do it...I know you can!

Get Ready, Set, Plan!

I hope you all had a wonderful Christmas; I certainly did.

Now, it's time to get back to our money matters. With the dawn of a new year quickly approaching, I feel compelled to reiterate the need to plan and prepare a budget that will focus on accomplishing short-term and long-term financial goals for 2012. At the very least, I ask you to exit December with January in mind. Close out this financial year with a plan for the next one.

I can't tell you how constructive is to see what you did with your money over the course of an entire year. You'd be surprised by how well your past actions can prepare you to reach new financial heights in the future. Believe it or not, the realization that you spent over $2,000.00 at Starbucks but only knocked off $800.00 of your credit balance this year could motivate you to change that habit next year. Knowing where and how you've wandered off the beaten the path can help you to become more focused and deliberate with your financial movements in the future.

If you haven't done so already, schedule a financial planning day. This will be a day in the very near future when you'll sit down with all of your financial information (i.e., bank statements, receipts, bill statements, checkbook register), and record them as best as you can. You can do this with pen and paper, using finance software, or even Microsoft Excel. Record your income and expenses by month and tally your totals.

I've provided the following example of financial information for January - May:

		JANUARY	FEBRUARY	MARCH	APRIL	MAY
Income							TOTALS
	Xerox	$ 1,784.00	$   1,784.00	$ 1,784.00	$ 1,784.00	$ 1,784.00	$       8,920.00
	Logan's Roadhouse	$    685.00	$      720.00	$    330.00	$    504.00	$    435.00	$       2,674.00
Total Monthly Income		$ 2,469.00	$  2,504.00	$ 2,114.00	$ 2,288.00	$ 2,219.00	$     11,594.00
Expense
	Mortgage	$    729.00	$      729.00	$    729.00	$    729.00	$    729.00	$       3,645.00
	Electric	$    139.74	$      145.99	$    160.01	$    155.77	$    133.00	$          734.51
	Water & Sewer	$      48.96	$        48.96	$      48.96	$      48.96	$      48.96	$          244.80
	Cable	$      65.00	$        65.00	$      65.00	$      65.00	$      65.00	$          325.00
	Telephone	$      60.00	$        60.00	$      60.00	$      60.00	$      60.00	$          300.00
	Auto Payment	$    380.00	$      380.00	$    380.00	$    380.00	$    380.00	$       1,900.00
	Auto Insurance	$    104.00	$      104.00	$    104.00	$    104.00	$    104.00	$          520.00
	Credit Card Payment	$      75.00	$        75.00	$      75.00	$      75.00	$      75.00	$          375.00
	Grocery/Household Supplies	$    200.00	$      200.00	$    200.00	$    200.00	$    200.00	$       1,000.00
	Eating Out	$    208.00	$      120.00	$    132.00	$    255.00	$    200.00	$          915.00
	Gifts	$    100.00	$      240.00	$            -	$            -	$      85.00	$          425.00
	Miscellaneous	$    259.30	$      236.05	$      60.03	$    115.27	$      39.04	$          709.69
	Savings	$    100.00	$      100.00	$    100.00	$    100.00	$    100.00	$          500.00
Total Monthly Expenses		$ 2,469.00	$   2,504.00	$ 2,114.00	$ 2,288.00	$ 2,219.00	$     11,594.00

What if this was your financial history? Would you be happy with what you see here...more money spent on miscellaneous items than on eliminating your credit card debt, and almost twice as much money blown on eating out than invested in savings? How would you allow this revelation to provoke you to change your habits and priorities for the new year?

Let's say that the above was a copy of your income and expenses, and let's pretend that your regular income and expenses for 2012 will remain the same. Allocating these funds for next year's expenses, I made a few adjustments (see the chart below). By reducing the amount of money you spend on eating out, gifts, and miscellaneous items, you will be able to pay $1,200.00 towards your credit card debt instead of the $375.00 paid in 2011, and your savings plan will increase from a total of $500.00 to $1,000.00 in the same amount of time.

		JANUARY	FEBRUARY	MARCH	APRIL	MAY
Income							TOTALS
	Xerox	$   1,784.00	$   1,784.00	$   1,784.00	$   1,784.00	$   1,784.00	$       8,920.00
	Logan's Roadhouse	$      685.00	$      720.00	$      330.00	$      504.00	$      435.00	$       2,674.00
Total Monthly Income		$  2,469.00	$  2,504.00	$  2,114.00	$  2,288.00	$  2,219.00	$     11,594.00
Expense
	Mortgage	$      729.00	$      729.00	$      729.00	$      729.00	$      729.00	$       3,645.00
	Electric	$      139.74	$      145.99	$      160.01	$      155.77	$      133.00	$          734.51
	Water & Sewer	$        48.96	$        48.96	$        48.96	$        48.96	$        48.96	$          244.80
	Cable	$        65.00	$        65.00	$        65.00	$        65.00	$        65.00	$          325.00
	Telephone	$        60.00	$        60.00	$        60.00	$        60.00	$        60.00	$          300.00
	Auto Payment	$      380.00	$      380.00	$      380.00	$      380.00	$      380.00	$       1,900.00
	Auto Insurance	$      104.00	$      104.00	$      104.00	$      104.00	$      104.00	$          520.00
	Credit Card Payment	$      350.00	$      350.00	$      100.00	$      200.00	$      200.00	$       1,200.00
	Grocery/Household Supplies	$      200.00	$      200.00	$      200.00	$      200.00	$      200.00	$       1,000.00
	Eating Out	$      100.00	$      100.00	$        50.00	$      100.00	$        50.00	$          400.00
	Gifts	$        50.00	$      100.00	$             -	$             -	$        20.00	$          170.00
	Miscellaneous	$        42.30	$        21.05	$        17.03	$        45.27	$        29.04	$          154.69
	Savings	$      200.00	$      200.00	$      200.00	$      200.00	$      200.00	$       1,000.00
Total Monthly Expenses		$   2,469.00	$   2,504.00	$   2,114.00	$   2,288.00	$   2,219.00	$     11,594.00

Isn't it amazing what your money can do when you give it a plan and a purpose? That's the goal for the new year - to work our money so that we can appreciate how hard we had to work to earn it and how well we can use it to manage our freedom as we invest in the freedom of others.

If you hadn't been planning to take inventory of your financial past (2011) or prepare a budget for next month or next year, I pray that today's blog post has changed your mind. Ringing in the new year is about celebrating our perseverance and victory over past obstacles with clear intent to move forward towards our utmost, God-given potential in the future. That's what I want for you, and that's what I want from me, so let's get to it and do our part to make sure that 2012 is the best financial year of our lives!

Free to Open the Door

If you're anything like me, visitors on Christmas day are a no-no. Christmas is a day when I prefer to be stingy with my time and my family. On a typical Christmas day, I only see 5 other people all day...my husband and four sons. That's it, that's all. I'll share my time and attention with others on Thanksgiving, New Year's Eve, or New Year's Day, but frankly, I want my family to myself on Christmas day. I can't say that this is right or that it's wrong. All I can tell you is that it's my preference for this one particular holiday. I don't know why but Christmas just seems more special to me when celebrated intimately with me and mine.

Having said that, I must admit to you that I have opened my door to others on a few Christmases, and what I've learned is that it isn't always fair for me to be as close minded about Christmas visitors as I've chosen to be. There are times when it's more beneficial to others for me to open my heart as I open my front door than it is for me to keep my family and Christmas experiences to myself. The few times we've shared our Christmas with others, it has meant much more than not having them over could have meant to them or us.

So, on this Freedom Friday, I urge you (and me) to be opened minded this Christmas. Planning how we'll spend our time on Christmas day and who we'll spend it with is a productive way of approaching this special holiday, but we must be careful to leave room for the unexpected miracle that having unexpected visitors can bring...for them and us!

I hope you have a very, Merry Christmas!

Thirsty for a Good Time!

With 3 days left until Christmas, I'm excited! I'm not excited about opening gifts, drinking eggnog, chewing on candy canes, or watching my sons open Christmas presents. No, I'm excited about our opportunity to celebrate everything pertaining to the birth, life, sacrifice, and gift of Jesus Christ, our Lord and Savior! We'll wake up early to pray together as a family, eat breakfast, get dressed, and join fellow churchgoers in worship at an 8am service. Afterwards, my husband, four sons, and I will return home and commence celebrating our own little family traditions...traditions that may seem insignificant to an outsider, but that allow us to make the most of spending quality time together on such a marvelous occasion.

That's what we are always excited about on Christmas Day. That's what we're thirsty for. Precious time spent on a special occasion to commemorate all that Jesus' birth welcomed. We enjoy expressing our love and appreciation for one another by way of home made cards, poems, and letters. We all sit around together listening as each person shares the love they've received from every member of the family. We break out our special sparkling grape juice and crackers to remember Christ in our family communion. Later, we take pleasure in watching The Veggietales:  The Toy That Saved Christmas, and recalling our younger selves watching it in years past. And each year we add to our traditions. Last year, we included the DVD, The Nativity Story as one of our must-see Christmas movies.

Bottom line...we enjoy every single moment together as a family on Christmas day. What will you do to quench your family's thirst for a good time on Christmas day? What are some of your family's Christmas traditions?