New Year, New Budget
- Lauren Pace
- Jan 13, 2023
- 4 min read
Do you sometimes feel like a failure because you didn't to stick to your budget? Have you ever felt overwhelmed by your debt? Or that you're in a spending cycle that has spun out of control?
My husband and I recently took a class created by Dave Ramsey called Financial Peace University. The nine-week course covers “things you should have learned in high school, but probably didn’t,” on every topic from the importance of generosity, to insurance, buying a home, investing, budgeting, getting out of debt and so much more. They give you the head knowledge that you need and the inspiration to make behavioral changes when it comes to being successful with your finances. Over five years ago, we used Ramsey’s free resources to structure a plan to pay off our debt and have enjoyed living debt-free ever since.
There is so much freedom to be experienced in a life without debt, and a big part of achieving this freedom is living your day-to-day life with a realistic budget. Budget is certainly not a bad word, but referring to it as our spending plan feels a little bit more fun to me. Truly taking control of our spending plan has been our most empowering lesson from FPU. We have used a spending plan for years, but struggled to truly stick to it because we overcomplicated the process.
My husband did some research, and found a somewhat magical solution called Qube Money. They are a great platform that combines banking and budgeting and in their words provides “real-time financial awareness without the hassle of tracking expenses, updating spreadsheets, and carrying cash.” Qube digitally emulates the “cash envelope system” that Dave champions. You create and fund “qubes” for each line item of you spending plan, and when you are ready to check out, at the grocery store let’s say, you open your grocery qube in the app and then swipe your debit card. It deducts the money from your selected qube, and you know exactly how much you have left moving forward. There are also features that automatically allot money for recurring bills as well as anything you might want to save for (next years Christmas gifts or maybe a family vacation for example). It even works great for Amazon or other online purchases. Once you have it set up, everything is automated and it is way, way, way easier to keep tabs on your money.
We started using Qube in November, and it really came in handy during the holiday season. This year we traveled twice, hosted a holiday weekend, mailed presents and celebrated birthdays for half of our immediate family. We were able to fund all of this fun without worry in large part because we prepared a realistic budget and stuck to it. This empowered us to be fully present for all that there was to celebrate, as well as give our loved ones thoughtful gifts. Any temptation to spend money on nonessentials was extinguished because we had a rational way of thinking through the purchase and built in accountability with our spending plan through Qube. It felt amazing in the moment to know we had met our goals and could truly enjoy the season without thoughts about the cost, but it feels even greater now that the holidays are over and the only leftovers we have are in the freezer and not in the form of outstanding payments. Our mindset has gone from “I’ll just swipe and figure it out later” to “I know where our money is, so no need to worry.” In essence, we can make informed spending decisions with full peace of mind, like treating myself to a care-free cup of coffee as I write this post. After reviewing my notes from the Financial Peace University, I would like to share some of my favorite take-aways in the hopes that they are helpful to you:
20% of winning financially is knowing what to do (the head knowledge), and 80% of it is instituting behavioral change
We often overestimate what we can accomplish in a year and underestimate what can happen over a decade
Budget is not a bad word. Think of it as a spending plan, giving you freedom and permission to spend wisely
A fully-funded emergency fund shifts a crisis to an inconvenience
Debt is marketed to us as a tool to create prosperity, but your income is truly the most powerful tool to build wealth
If you want something bad enough you can become a saver
You can’t spend your way into a meaningful life
Everyone needs a will and the right insurance - It’s how I say “I love you” to your loved ones
The cure for comparison is contentment
If you are feeling stuck financially or have identified this as an area you that you want to improve on in this next year, know that you are not alone and that there are resources out there to help you achieve your goals! If you are interested in FPU or some of their free content, check out the Ramsey Solutions website! They offer FPU for free to Military Members.
Qube has a free option if you’d like to start banking with them, but there is an annual cost to own a joint-account or family plan. To learn more, follow the link below:
Happy New Year and happy budgeting!
Comments