How To Create Your Budget and Actually Follow It (Pt. 1)

So now that Christmas is over, the purchases have been made, the credit cards have been run up, and the year is almost over.  When I last wrote, we were discussing how to get your significant other on board with this whole "budget thing".  Well now, it's time to put a budget together.  One method of starting is taking your "take home pay" (the money that gets put in your back account) and utilize some pre-made categories and percentages to that money.  Here's a range of some percentages of how to put together your budgets.  So to do it here's our formula:

Monthly Income x Category Percentage = Monthly Amount for the Category

ex....   $4,000 x 15% = $600

I'm going to now show you how to balance your budget using categories and percentages as a guideline.  That's right, I'm going to show you how you can create a budget where every dollar you bring in your home is organized and spent wisely.  You'll be surprise how much money you actually have each month.

The following below are some typical budget categories you'll see for a family.  Next to the category is the percentage of TAKE HOME PAY that helps as a guideline for figuring out how much money should be in each category.  Of course, each category has be adjusted accordingly after apply percentages to make sure that all of your expenses add up to equal your income.

CHARITY - 10 -15%

SAVINGS - 10 - 15%

HOUSING - 25 - 35%

UTILITIES - 5 - 10%

FOOD - 5 - 15%

TRANSPORTATION - 10- 15%

CLOTHING - 2 - 7%

MEDICAL/HEALTH - 5 - 10%

PERSONAL - 5 - 10%

RECREATION - 5 - 10%

DEBTS - 0% (Target should be 0%, but if you have some debt then this depends on how much you owe)
________________________________________________________________________________

OK, so let's put together an example budget!!!!

So let's show a typical family of 5, total income of $70,000 gross income w/ $12,000 of consumer debt.  I used the percentages above to figure out how to allocate the money for each category.  However, it ended up being more expenses than I have income.  Therefore, I had to reduce amounts in each category.  So below, you'll see the monthly budget for this family with the new percentages after adjusting them.

(To determine take home pay, we're going to assume that 20% of this family's gross income is going to state/federal taxes per month and standard benefits like medical,dental,vision, etc...)

Family Stone Monthly Budget 2015

Monthly Income = $4,667

CHARITY - $467 (10%)
   Local Church - $234
   Family Charity - $234

SAVINGS - $467 (10%)
   Retirement - $267
   College Savings - $100
   Emergency Fund - $100

HOUSING - $1,100 (23.6%)
    Mortgage - $1,000
    Monthly House Savings - $100

UTILITIES - $303 (6.5%)
    Gas/Electricity - $150
    Cable/Internet - $50
    Phone - $53
    Water - $50

FOOD - $500 (10.7%)
    Groceries - $450
    Monthly "Date Night" Restaurant Dinner- $50

TRANSPORTATION - $480 (10.3%)
    Gas - $300
    Car Insurance - $110
    Monthly Car Repair Savings - $50
    State Car Registration/Plate Renewal - $20

CLOTHING - $100 (2.1%)
     Parents - $75
     Kids - $25

MEDICAL/HEALTH - $100 (2.1%)
      Life Insurance - $50
      Monthly Medical/Prescription Savings - $50

PERSONAL - $400 (8.6%)
      Christmas - $80
      Misc - $320

RECREATION - $250 (5.4%)
      Gym Membership - $50
      Vacation - $200

DEBTS - $500 (10.7%) (DEBT FREE IN 2 YEARS!!!)
     Credit Card #1 - $50
     Credit Card #2 - $50
     Student Loan - $400

Monthly Expenses = $4,667

So in this budget, I show how you can create a balanced budget where you can be saving for retirement, paying down debt, savings for kids college, and still have room left to eat!  I'm not saying that you should be paying down debt and saving for retirement and saving for kids college all at the same time.  We'll be addressing that in later posts.  

I just wanted to show here what is possible when you plan out your money in advance.  Your situation may be different.  You may have daycare in there, you may be renting and pay much less or more for that.  So many different scenarios exist.  I just wanted to show some examples of how budgeting can free up money so that you can start to make some decisions about your family's expenses and the level of lifestyle you choose to live.  So your cable bill or phone bill may be more so you have to decide what you need to give up to afford it or can you do without it so you that you have the opportunity to do something else.  Tough questions, absolutely.  Also it shows how getting out of debt frees up tons of money that can be used in other places!  (To be discussed in a later post).

Question of the Day: 

What things do you have to do to balance your budget and start planning for 2015?

Song/Video of the Day:

Until next time............Happy Budget, Happy Life

How Do I Get My Husband/Wife On Board With This Budget Thing (Pt. 2)

So yesterday's post took us out of the realm of budgets and money and went more towards current events.  It was difficult to write, but I wanted to at least put something out there.  It ended up being a big success so thanks to everyone out there who shared it.  I hope to at least throw out a post when the big big hot topics are out there.

Today, we follow up with our post from two days ago with more tips on getting your significant other on board with this "budget thing".  Below is the link from the first article just in case you missed it.

How Do I Get My Husband/Wife On Board With This Budget Thing (Pt. 1)

So we started off talking about the "why" of creating a budget.  Why do you want to budget at all?  Why do you need a budget?  The first point we made was to have a sense of control.  Something, most of the time money, has gotten beyond your reach of control without having an external tool to assist.

Dream On, Dream Away

One of the major things that budgets do is give you an opportunity to dream.  If you're a long term planner, then a budget is your first mate on your voyage to "What does the future look like"-ville.  That's the key way you start the conversation with someone who you want to convince to do a budget.  Before we get to what categories are in your budget, how the budget gets created, first start with what you are trying to accomplish.  Here's some scenarios:

• Hey dear, you know how you always wanted to go to Hawaii?  Let's start being intentional about that and make that happen.
• Hey sweetie, wouldn't it be awesome if we could start tithing 10% to our church like we always wanted?  Let's start being intentional about that and make that dream your reality.
• Hey sugar plumb, you know how we always feel like we're spinning our heels and never have any money?  Let's start being intentional about that to figure out another way.
• Hey pumpkin, you know how you wanted to quit that job that you hate but were afraid to because of how it may effect our finances?  Let's start being intentional about that and make that happen.
• Hey mi amor, you know how you always talk about wanting to retire at some point?  Let's start being intentional about that and make it happen.
• Hey snow princess, you know how you always talk about wanting to shower me with gifts but never have the money?  Let's start being intentional about that and make it happen.

Okay, so now I hope that you get my drift.  Let's break down the basic formula:

"Hey (term of endearment), you know how (things he/she always complains about)?  Let's start being intentional about that and make that happen."

So it's good to have at least one thing that tangible and another thing that is a little far out there.  It's good to have something easy to reach for and something you're going to have to work harder for.  I speak about this from personal experience.  Here's the very shortened version of how the budget talk happened in my house 3 years ago:

(I enter the kitchen, Mrs. Budget is there.  She's 4 months pregnant with Baby #1)

Mrs. Budget - "I've decided that I don't want to work anymore.  

I want to be a stay at home mom.  So you need to do a budget and figure it out"

Me - "Ummmm, okay.  I guess I can look at the numbers and let you know"

(Many days pass and I enter the kitchen after looking at some numbers)

Me - "Okay, so I looked at the numbers and it can't happen.  We're in too much debt......."

(Mrs. Budget starts to cry and leaves the room)

Me (in my head) - "What did I say"

(I go to Mrs. Budget to ask what I did wrong)

Mrs. Budget - "You don't understand, I feel called to be a stay at home mom.......(crying).....(more crying).......(swear words)......(storms out of room).....You Don't Get It!!!

Me (in my head) - "I'm confused"

So in this scenario, Mrs.did have a dream in mind but it wasn't executed in the best way.  She did end up being a stay at home mom after we cleared away our debt in a couple years, but that isn't always the case for most people.  So, communicate the dream but do it in a positive constructive way and give your significant other some time if they don't immediately understand.

Once again, making a budget is not an easy process to go through.  But to help you in the process, you need a strong reason/purpose.  Find your "WHY?"  Trust me, it helps when you get in the thick of the process and want to give up.  Also, remember to find a good way to communicate it to the person you're trying to convince.

So to repeat, DO NOT start an initial budget conversation with, "Let's make a budget, we're going to start with not going out to eat anymore and you have to stop spending so much money at Kohls/Target/Walmart/Bath & Bodyworks/Funcoland/Mervyn's/Crowley's/Sam Goody/Circuit City.
  Pull on the other's heart strings buy doing some dreaming first about what can happen as a result of budgeting.  What's that thing he/she always talked about doing but haven't been able to yet?

We'll get back to part 3 in the series next week.  Tomorrow is Thanksgiving and Friday is a #HashTagFriday (If you don't know what that is, come back and you'll be in for a treat!)

Question of the Day: 

What are your dreams that you really want in the future that a budget can accomplish?

Song/Video of the Day:

Until next time............Happy Budget, Happy Life

Michael Brown, Ferguson, and Where to Go From Here

First and foremost, let me say that the death of Michael Brown is a tragedy.  My prayers go out to his family for losing a child.  As a parent, I can't imagine the pain that they are going through.

Let me also say that Darren Wilson should and his family also be getting our prayers.  His life is pretty much ruined for the foreseeable future.  He will have to resign from his current position and he'll never be able to work in law enforcement again.  Also, he'll most likely be caught up in civil lawsuits and other legal entanglements for the next couple years.

Below are some of my thoughts around the announcement last nights and the interesting dialogue happening in social media and the TV news channels.

Should African Americans Fear the Police?

Let me first state my qualifications to speak on this.  To make things clear, my mother and father are African American.  As are my uncles/aunts, brothers, cousins, etc..  I went to a predominately African American elementary, middle, and high school all in the city of Detroit.  My closest friends in high school were all African American.  And some of my closest friends today are African American.  So I've been around black faces for a long time and I personally have had one for a long time.    

I've never been arrested by the police.  I've never been in a situation where I've feared being arrested by the police.  None of the people I've associated with have been arrested by the police or seriously antagonized by the police.  I think looking at the data, I can understand why this is.  To lighten the mood, I'll let Chris Rock explain it in a humorous way (BEWARE, THERE IS CURSING IN THIS CLIP)

So in summary, I think its craziness to read things out there in the social media world about black people having to be in fear of the police everywhere that they go.  Am I lucky that I've never had any issues with the law?  No.......nope.......nah.  I guess that I just know the difference between right and wrong and I do them and the police leave me alone as a result.  Weird concept.

Some People Just Want to Watch the World Burn

I watched the coverage last night for a couple hours.  When it began, I knew that many of the "protestors" there with masks on their faces came for a particular purpose.  After the announcement, while Prosecuting Attorney Bob McCulloch was reading the reasoning for the no charges decision, you could see people already running down the streets of Ferguson.  My opinion is that many people there came with an agenda and were ready to do violence.  Watching the footage, there was a cell phone store broken into and looted.  There was also a liquor store broken into.  Then you can see people running away with "free" stuff.  So are we to believe that people were so outraged by the "lack of justice" that they decided to steal cell phones and alcohol to even the score?  

"Some men aren't looking for things logical, some men want to watch the world burn"

You want to talk about criminals?  Let's look at some real criminals in this process.  We hear the cries of justice, but no one is asking for justice for the businesses that were harmed last night.  So it appears that many of the "justice seekers" are in fact hypocrites who never were actually looking for justice, they wanted revenge.

The Role of Police Officers

I think that another troubling matter in the conversation is the blanket statements about police officers and their "brutality".  I think that yes there are some corrupt police officers but at the end of the day, they serve a purpose to protect and serve our communities.  If someone breaks in your house, you don't think, "Maybe I shouldn't call the police, they are corrupt and brutal and they won't protect me."  No, you have expectations that they will protect you because that's their job.

These men/women leave their homes and families each day with the possibility that they may not make it home.  In 2013, 105 police officers died in the line of duty.  That's about 2 per week.  The vast majority of us don't live this reality.  Like I said, they're all not perfect.  However, imagine that you worked in a field were two people who do the same job as you are killed every week.  So of course, they are trained to use deadly force because deadly force is regularly inflicted upon them and it's hard to discern how dangerous another person is.  Of course, there's some out there who use bad judgement, but it's hard for us to tell someone how they should feel about their life being on the line in an altercation.

12 People Know the Whole Story and That Story is What Actually Happened

So the one thing that is lost in the trenches is the TRUTH.  The story of what actually happened.  In this case, 12 jurors were presented with the story about what happened that day.  There was physical evidence, ballistics, and forensic data that were used to provide FACTS around what happened that day.  So we have to keep in mind that there must have been some pretty good evidence to show that Darren Wilson had some type of cause to use deadly force.  Also, there were eye witness accounts from black people that agreed with what Officer Wilson said.  The fantasy story of the racist police officer who went on a rage storm and killed an innocent young person doesn't appeared to have held up.  Those stories were proven to be false because the stories didn't match each other and the people eventually admitted to sharing a story that they heard from somewhere else.  The evidence proved that there was a significant altercation at the car which led to shots being fired.  What would be awesome is if protesters discussed the evidence presented.

Where Do We Go From Here?

I think that many of those protesting last night weren't looking for justice, they were looking for revenge.  They wanted to see Darren Wilson punished for killing an 18 year old child, regardless of it was even justified or not.  The calls of racism, police brutality, and corrupt justice system are all just excuses to use to justify their emotions.  People are allowed to be emotional about the situation, but at a certain point, we have to be honest with ourselves.  I think that given the law and the evidence that was presented, justice was done.  Yes, it's a tragedy.  Yes, it's horrible to see a young man lose his life.  Yes, it's terrible that a community is shaken.  But let's let the truth be brought in to help with the situation.  Emotions can take us to a dangerous place if they are not controlled by something greater.

It's time to start asking the question of what real "justice" is and how to bridge the gap between justice and truth because I think that you can't have one without the other.  In this process we keep hearing statistics about the ration of African Americans in jail.  However, no one is asking the question of if they're actually committing the crimes they are sent in for.  If so, how do we stop that.  Real justice is having discussions about the problem at hand, not discussing the symptoms.

To have justice, the first assumption is that you live in a "just" society with agreed upon standards of morality, rules, laws, and equality.  Do we have that?  I think that those who are organizing these protests have an obligation to examine the facts and the evidence presented to the grand jury and understand what actually happened and what they are really protesting.  Without it, I think that they are doing people a grand disservice leading them down a path of propaganda and self agendas.  The great thing is that the facts of the case are out there now.  Let's talk around that.  I hope that the Ferguson community can move on from this tragedy in a productive way and have leadership at all levels engage with them to discuss fixing the problems at hand.  I hope to see Rev. Al Sharpton around in Ferguson in the coming months to help build that community back up given his involvement there giving press conferences around his disappointment?  Probably not, because he'll be on to the next "injustice".


That's all I have for today.  These are my thoughts and you are free to disagree if you want.  That's what makes this country great.  Tomorrow, we'll get back to some of the budget things I started talking about yesterday.

Until next time............Happy Budget, Happy Life

How Do I Get My Husband/Wife On Board With This Budget Thing (Pt. 1)

So, I think that one of the big questions surrounding budgeting is how to get one's significant other on board the budget train (woot woot).  This is a great question.  You can't just show up home one day and say, "Hey dear, I think we should budget so I created one and it involves us never going out to eat again"  Just so you know, that is a BAD idea.

It's such a great question that I'm going to answer it in a series of posts, this one being part 1.  Some may seem to be out of order but in the end they are all part of the process to get you to your "authentic budget".  Also, I may throw in other posts about other things (#HashTagFridays) but be assured that we'll get back to this one.

The first part of this question is the "why" around budget.  Why budget in the first place?  It's a great question because normally you have to be able to persuade the other person to go on this adventure with you.  So to start off, I'm going to let the late Robin Williams explain:

(To get the full effect, substitute the word "poetry" for "budget")

Let's first start off with how to define a budget:

noun

1.

an estimate, often itemized, of expected income and expense for a given period in thefuture.

2.

a plan of operations based on such anestimate.

3.

an itemized allotment of funds, time, etc.,for a given period.

4.

the total sum of money set aside or neededfor a purpose:

the construction budget.

5.

a limited stock or supply of something:

his budget of goodwill.

My favorite definition is #3, an itemized allotment of funds, time, etc., for a given period.  Budgets aren't just for money.  We budget our time, our money, our food, our love for our children (I have three kids so each gets 1/3 of my love, don't judge me!).  We budget because we need to control something that has gotten out of control.  We spend too much so we have to get our money under control.  At work, you're not getting enough things done so you have to budget your time accordingly.  It's after the holidays and the scales say that I'm carrying a few extra lbs so I need to control that more.

Question of the Day: 

What can a budget help you control and why? (We'll get to the why next)

Song/Video of the Day:

Until next time............Happy Budget, Happy Life

#HashtagFriday

Welcome back to #HastagFriday

#one

So the President spoke last night on immigration reform and pretty much said that he is acting because he couldn't wait any longer for Congress to act.  I was able to find live footage of his preparation for the speech.

#iwantimmigrationreformnow

#aintnobodygottimeforlaws

#two

So remember that bedroom intruder song from a couple years ago?  Apparently it was Bill Cosby

#hideyourkidshideyourwifeandhideyoursweaters

#third

How much would it suck to live in Buffalo?  It's so snowy that Rocky Balboa decided to train there instead of Russia for an upcoming fight with Ivan Drago.  Saves money.

#DRAGO!!!!
#buffalochillsinsteadofbuffalobills

#buffalowingsholdthesnow
#itputsthelotionontheskin
#getit
#silenceofthelambsreference
#becausethevillainwasbuffalobill
#nevermind
#nvmd

#four

So if you like Happy Budget, Happy Life then you're going to really be in for a treat.  Starting Monday the 24th, Happy Budget Happy Life will be a DAILY blog.  That's right, I'll be posting content daily on here.  I've been taking the past two weeks to come up with topics and things to make sure that I can do it for at least a year.  Some will be longer posts and some will be short.  So get ready for 365 posts coming at ya!

#herecomesthebrandnewflavainyourear

That's it for now folks!!!

Until next time............Happy Budget, Happy Life

#Hashtagfriday

HASHTAGFRIDAY

So I've been MIA the past week.  I have a special blog post that I'll write next week explaining what's been happening (spoiler alert: it's big stuff) (but, not baby related)

So.....without further adieu.......#HASHTAGFRIDAY!!!!

#one

So apparently at Check-Fil-A was having some issues with employees using slang in the workplace so they issue a list of banned words.  Here's the story below.

Chick-fil-language barrier

Below is live footage from the scene:

#coolhandchicken
#cowshavebetterdiction

#two

So along with Ebola, there's yet another threat that we have worry about.

Killer Shrimp, Yep It's Apparently A Real Thing

Apparently, they didn't speak with the resident shrimp expert because there's way more than 7 kinds of shrimp out there.  Here's an interview with that expert:

#barbecueitboilitbroilitbakeitsauteittshrimpkabobsshrimpcreoleshrimpgumboPanfrieddeepfriedstirfriedpineappleshrimplemonshrimpcoconutshrimppeppershrimpshrimpsoupshrimpstewshrimpsaladshrimppotatoesshrimpburgershrimpsandwich

#That'saboutit

#three

So Al Roker broke a Guiness World Record this morning for doing a 34 hour weather forecast.  However, despite this, he still can't live this down.  Sorry Al:

#rokerthon
#whenshartsattack
#stillcantlivethatdown
#happenstothebestofusjustnotinthewhitehouse

#four

Lastly, Walter White has returned to provide us with this awesome treat:

www.audible.com/eat

#breakingbread
#eat
#pleaseeat
#eatoryournotgettingtreats
#eatoryourgoingtobed
#eatoryoullgetaspanking
#sitthereuntilyoueat
#dontgetupuntilyoueat
#youbettereat
#imnotkiddingyoubetternow
#eat
#pleaseeat

That's it for now folks!!!

Until next time............Happy Budget, Happy Life

#HASHTAGFRIDAY

So I'm going to start a new segment on my blog called #HASHTAGFRIDAY where I look at things that happened in the past week and summarize them with the help of YouTube clips and.......#hastags

#one Tuesday night many things happened.  This sums up how the GOP felt......

#exercisedthedemonssss

#yougotservedDems
#howdotheDemslikeDemapples

#two Taylor Swift decided to take her catalog of music off Spotify.  This is how Spotify feels.......

#nowspotifyandtaylorlautnerjoejonasjohnmayerharrystylesandjakegyllenhaalhavesomethingincommon

#three Apparently, Mark Zuckerberg (Facebook thief) had a public Q&A session on Facebook.  I didn't attend, but here's what I think happened

#nodisrepecttomarkzuckerbergbecausehecouldcrushmewithhiswallet

#hedoesntreadthisanywaysoistandbymyvideo

#unlesshehasinternswhoroamabouttheinternetfindingpeoplewhodisrespectmarkzuckerberg

#inthatcasemarkzuckerbergruels

#four My hometown Detroit will soon be emerging from bankruptcy.  If you missed it, here's how they declared it.

#declarationofindependencefromdebt

#watchoutfornicholascagebecausehemaystealitfromyou

#five So one of my favorite people, Ben Carson, is releasing a video soon that most are saying is his entering his hat into the presidential race for 2016.  If he really runs, then this will be my reaction...

For more info on the clip above, see below (CAUTION, two swear words in it)

#sayitaintso

#runbenrun

#runaarontobenscampaign

That's most of the relevant headlines this week.

Have a great weekend everyone and until next time...........Happy Budget, Happy Life