How Streamlining our Budget Changed our Lives
When Scott and I met we were average with money – didn’t spend a ton, didn’t save a ton. But as we added babies, cars and a bigger house, things became tense.
We knew we NEEDED a shift.
We became ruthless about using money to change the course of our lives - for the better!
In order to do so, we needed a system that was automated, fool-proof and left ZERO room for resentment.
Here are 6 ways we streamlined our budget - that completely changed our lives.
Take what resonates with you and leave the rest….
We Started Family Budget Meetings
I knew that if we wanted big changes we needed to go deeeeppp.
The meetings weren’t easy at first. There were tears……there were arguments…..it was 100% worth it.
Topics included: goals, monthly spending, savings, debt and planning.
These meetings streamlined our budget by getting everything out on the table. Ev-e-ry-thing.
*IMPORTANT TIP: Snacks and drinks make budget meetings more fun!*
“Earning a lot of money is not the key to prosperity. How you handle it is.”
We Discussed our Long Game
A big part of our money meetings was discussing what we want. Like really want. Like deep in our guts. This is also THE most fun part about the meetings.
People often put travel on their list. But that means different things to different people. Do you want to take an annual road trip three cities away to watch a professional sporting event? Or do you want to take a month off every winter to do a yoga retreat in Hawaii?
We described our goals in detail. And exactly what we needed to do to get there.
We Cut the Budget
So we agreed what we wanted for our life – now we had to figure out how to make that happen. It started with trimming the expenses.
Yes this meant cutting a ton of super-fun-things like pedicures and shopping and take-out Fridays.
BUT this exercise became way more than just saving $1,000 a month. It showed us exactly what is important to us. And what isn’t!
Over a few years, it became very clear what we could live without. Turns out spending less money makes life wayyy easier.
Related: Watch out for my upcoming post about my no-spend month! Life Changing!
We Paid Off Debt
Debt is a huge topic. So huge that I am going to write a separate post about it. For now, let’s just say that removing debt from our lives provided so much relief that I get choked up thinking about it. Fa’ real.
We Used Cash
Switching to cash is the still the easiest way I have found to reduce monthly spending.
We obviously don’t use cash for everything. Ain’t nobody got time for that!
But there are two categories that we use 100% cash: groceries + our personal spending money.
At the start of each month we withdraw cash, put into their respective envelopes and once it’s gone, it’s gone.
Is it a pain sometimes? Yes. Does it ensure we stick to our budget? Yes. Does sticking to our budget make our lives one million times easier? Absolutely.
We Combined Bank Accounts
When Scott and I met I was in my 30’s, owned my own home and “didn’t need a man”. So naturally I kept my money separate.
It was NOT functional.
First of all this was a logistical nightmare. I was constantly transferring money, balancing accounts and calculating who owed who $10.
But more importantly, it created a feeling of ‘his’ and ‘hers’. We had vowed to devote our entire selves to each other - but not our bank accounts. Once I took a step back, a whole new world opened up.
Two major shifts happened when we officially “married” our money…
We discovered how much more impact we could have when we joined forces. Saving $100 a month sounded good. But saving $1,000 a month could have REAL impact.
More importantly, we were now on the same team. This was a game-changer.
*REMEMBER* Personal budgeting is VERY personal. You have to get deep and dirty with your partner (and yourself) and figure out what works for you. It is NOT going to be exactly like we do it, or like your brother-in-law or your co-workers do it. STOP COMPARING.
Deciding how you spend your money is deciding how you spend your time. And subsequently, your life.
Decide wisely,
Mary Ann K. xo
Disclosure: The information provided in this product is meant for personal use only and is my personal opinions only. I am not a finance professional.
