February Challenge--We did it!!

We did it! We didn't eat out during the month of February. It actually wasn't as hard as I thought it would be. We made several meals that had enough for leftovers, usually enough for a couple of lunches and an extra dinner. We also made a calendar of what we would eat each week which helped us to stay focused and to plan ahead.

We were UNDER budget by $82.00!! This is pretty big for us! Sadly, we are usually way over budget. In the last twelve months, we were under budget ONE time (and by $1.88 at that)! We have been OVER budget anywhere from $35.00 to $170.00!! That is crazy. We never really cared too much because we 'had the money'...that money was just designated for paying down debt and not for paying for food!

We are planning to eat out again in March...I need those rolls and cinnamon butter at Texas Roadhouse! I think our goal in March is to be able to eat out without going over budget. We also have our vacation planned for March and I know we will be eating out then. Our vacation times don't count because that money comes from our vacation fund, not our food budget. Stay tuned...

Ahhhhh...saving money is fun! Paying down debt is even better! Happy Savings!

Our lofty goal...

We just logged on to see our total school loan amount that is left after making a payment from our tax return. The total is (drum roll please)......

$68, 303!

Don't get me wrong- that is a LOT of money...but compared to starting at $120,000, it's not so bad.

Our goal (well actually Luther's goal) is to get this all paid off in three more years. Taking that amount and dividing it by 36 months comes out to about $1900 per month (totally unrealistic for us)! However, we have a spreadsheet (imagine that) that shows each loan individually so that we know how much we need to pay off each loan. Luther even numbered the order in which we will pay them. We have $3200 left on a loan that started off MUCH higher and then we will move on to paying off our other loans. We have 13 left altogether. Wish us luck and say a prayer:)

Creating a budget...where to start

I've had a few questions on where to start when making a budget. I'll be honest, figuring out what each amount needs to be in your budget is the hardest part. It takes lots of trial and error on paper before you can make one that works. Once you get that figured out, you will be smooth sailing:)

I'll try to make this as simple as possible...this is how we started:

Start with how much money you will bring home in a month (this is a little more difficult if that figure is flexible). Let's say you bring home $2000 a month or $1000 bi-monthly. As I mentioned in a previous post, we take out our tithe money before we do anything else. If you brought home $2000 a month, we will pretend that you actually make $2400 a month and therefore if you tithe, it would be around $240 a month. That comes out of the $2000 take home pay.

$2000 monthly income

-240 Tithe

$1760

Now make a list of all of the amounts that you HAVE to pay each month that do not change. For us, those amounts include:

Mortgage/Rent

Car insurance** (Some people pay this monthly and others annually or every six months. If you do not pay this monthly, you should still put the money back each month so that you have it when it comes due)

Cable 

Phone

I'll assign a guess on those totals to make the point.

$1760 remaining

-700 rent

- 80 car insurance

-50 cable

-100 phone

$830

Now make a list of other necessary expenses that might fluctuate:

Gas

Utilities (heating/cooling and water)** (We usually see a drastic difference in this between the winter months and the summer months)

Miscellaneous (things that don't fit anywhere else such as paper towels, cleaning products, etc.)

$830

-150 gas

-150 utilities

-75 miscellaneous

$455

Food- we budget $300 a month for food (including eating out) for the two of us. You would need to adjust this based on how large your family is. 

$455

- 300 food

$155

Now make a category for things you may need once in a while, but not every month:

Doctor/Dentist- $20

Gifts- $20

Blow money- $30 (only if you have everything else covered)

$155

-20 doctor/dentist

-20 gifts

-30 blow money

$85

With the remaining $85, you should designate this to areas that you need. If you have a credit card, make payments on that (disclaimer- if you have a large credit card amount, you should probably use most of your blow money on that each month). If you can ever make more than the minimum payment on debt, make sure you designate any extra to 'principal only.' Otherwise the interest gets the majority of your extra payment. Once you've paid something off with that $85, you should then apply that amount to some other form of debt, such as a car or a loan of some kind.

It's hard to make a fake budget without knowing what you make a month, what all you HAVE to pay (and the amounts), and how many are in your family but I tried to give you a rough idea. More to come on the actual spreadsheet. It involves formulas that you can plug in but I need to look at how we did that since it has been so long ago. The concept is basically starting with a figure in each category and then having the computer subtract for you each amount that you spent. There are also free budgeting tools online that you could use if they fit your needs. As always, let me know if you have questions:)

 

 

Tax Returns and February Challenge

Each year, we take out more withholdings so that we get more back in our taxes (and to make sure we won't have to pay in). Once we file our taxes and learn what we are getting back, we make a plan. We always put money back for traveling throughout the year. Those who know me know that I can't live without traveling somewhere:) Then we look at any bills we may have and pay the balance. This year, we splurged and bought a temper pedic bed from Grand. I had significant buyer's remorse and was pretty much sick to my stomach to think about how much a new bed cost; however, I am much more rested these days. When we bought the bed, we had four years of free financing (i.e. no interest). We bought the bed in July and we just paid off the balance with our tax return.

After we set aside travel money and pay off any bills, the rest of the money goes tooooo...you guess it, SCHOOL LOANS:) The total owed is now below $70k:) We're getting there!

Our February challenge is going well so far. We have not eaten out and we are more than half-way through the month! We are going to make it! As of today, we have a little more than half of our allotted food budget left for the month. That might sound like we won't come in under budget since we are half-way through the month; however, we have several meals in the pantry and fridge that will take us through another week of eating. The most we have ever been UNDER our food budget is 1.88:) We will see what this month brings!

Unfortunately some of those costs get offset by random happenings. This month just so happens to be several doctor check-ups for the both of us- meaning copays (booo!). Regardless of extra money going to the doctor fund, we should still be under our monthly goal. Hopefully we will be able to put a bunch of extra money on school loans at the end of the month with all of the money we saved. We shall see! Until next time...

February challenge

Our budget challenge this month is to not eat out! We are pretty bad usually with eating out. In January, we spent $130 out of our $300 budget eating out! When we have months like that, we usually go over our food budget. At the end of the month, going over in food isn't a huge deal because we have been under in other categories; however, if we stay on budget or even under, we can save more money! We will see how much we save! We picked February because it is the shortest month:)

And a special thanks to all of you who sent us recipes! It's hard to choose which ones to make!

Until next time...

Tithing- Why it's important

Tithing...it is such an important part of life. God has given us all many blessings and it is our responsibility to give back to God. Tithing does not necessarily have to be given to a specific church, but it should be to a church or organization that is honoring God and preaching the gospel. Our tithe money comes out immediately after we get paid...like we never had the money to spend in the first place. I spread my tithe amount over several places for  various reasons. 

My church- Greenmonte Fellowship

I tithe to my church. Not only does tithing help to keep the church running financially, but it also helps the church to be able to provide for the needs of the community (our neighbors nearby and around the world). Anyone who knows me knows that I love my church. It is a small church which was a refreshing change for me. It has the most accepting group of people from all walks of life that I have ever encountered. There are people in the church who truly will do anything to help in any situation. I have met some amazing people and some lifelong friends in our church.

World Vision

We give part of our tithe to help support children who need sponsors from World Vision. While some people are against 'large organizations' because you cannot guarantee that all of your money is going where it should, I believe that World Vision is doing a good thing around the world. We first had a little guy named Nebba and now we have a little one named Augustus. We love getting their pictures, letters, and drawings in the mail!

Spirit FM radio

I also give a portion of my tithe to Spirit FM. I first listened to them when I was in Lynchburg at Liberty University. This radio station has really helped me grow in my faith by listening to Christian music. To be honest, "Christian" pop music used to drive me insane when I was in middle school and some of high school. There are a bunch of great new artists and I love hearing them on the radio these days:) Tithing to them helps to support their radio station so that people from all walks of life can tune in and hear about God.

Grassroots Heroes 

Grassroots Heroes is a small non-profit that was started by some people in our church. They came across this squatters village, Grippes Farm, in Zambia, Africa. After seeing the village, they knew they needed to do something about it. We have seen tremendous change in this village since this project all started. They now have wells for clean water, schools for education of the children and adults, trade classes (i.e. sewing, farming) to help with their ability to earn money on their own, and bible studies to teach the Word of God. My dad and I took a trip to Grippes in July 2011. It was the most life-changing trip I have ever been on and I yearn to be back there every day. The people of Africa definitely have my heart! 

Our team that went July 2011

Some of the students welcoming us through song in one of their classrooms

Five of the teachers that have amazing stories and true dedication to teach these children

One of the men has taken up rabbit farming to make money

The school kitchen where dedicated moms cook lunch for the students

One of the new school buildings

Two of the children we sponsor

The money given to GHI to help support Grippes is used in many ways...some of them include:

• paying for students' education and lunch ($15 a month for one child) 
• support kids from Grippes who have made it to secondary school with the government ($50 a month for books, uniform, and education)
• teacher salaries (some of these teachers walk over an hour one-way to support this village)
• adult education classes
• trade classes
• specific needs (i.e. new roof, new sewing machine)

Check out any of the above websites for more information about the organizations. Let me know if you have questions:) 



"Give,and it will be given to you. A good measure, pressed down, shaken together and running over, will be poured into your lap" (Luke 6:38).

"He who is kind to the poor lends to the Lord, and he will reward him for what he has done" (Proverbs 19:17).

"Each man should give what he has decided in his heart to give, not reluctantly or under compulsion, for God loves a cheerful giver" (II Corinthians 9:7).

"And God is able to make all grace abound to you, so that in all things at all times, having all that you need, you will abound in every good work. As it is written, ‘He has scattered abroad his gifts to the poor; his righteousness endures forever.' Now he who supplies seed to the sower and bread for food will also supply and increase your store of seed and will enlarge the harvest of your righteousness. You will be made rich in every way so that you can be generous on every occasion,and through us your generosity will result in thanksgiving to God. This service that you perform is not only supplying the needs of God's people but is also overflowing in many expressions of thanks to God" (II Corinthians 9:8-12).