Wise Counsel on Budgets

Here are more great words of wisdom on budgeting by Marvin J. Ashton:

Some claim that living within a budget takes the fun out of life and is too restrictive. But those who avoid the inconvenience of a budget must suffer the pains of living outside of it. The Church operates within a budget. Successful business functions within a budget. Families free of crushing debt have a budget. Budgeting guidelines encourage better performance and management. (emphasis added, Marvin J. Ashton, "It's No Fun Being Poor," Ensign, September 1982, 72.)

An Alarming Statistic

In the pamphlet, "One For The Money', Elder Marvin J. Ashton gave these statistics:

"How important are money management and finances in marriage and family affairs? May I respond, “Tremendously.” The American Bar Association has indicated that 89 percent of all divorces can be traced to quarrels and accusations over money. Others have estimated that 75 percent of all divorces result from clashes over finances. Some professional counselors indicate that four out of five families are strapped with serious money problems."

That was 35 years ago, before credit was in abundant supply in our country. I believe that these stats are probably worse now.

"One For The Money" is great for all families can be ordered free through Church Distribution or downloaded here.

Build A Better Budget: Part 1

Spencer W. Kimball: "EVERY family should have a budget."

I'd say his advice would be good to follow, wouldn't you?

Starting a budget can seem daunting, but it need not be. Here's how to get yourself started.

CHALLENGE: Track your expenses for a month.

You need to know where all your money is going. I think the best way to do this is to use a credit card for ALL my transactions. That way, you can see EVERY transaction online or in your statement. I also like to use Quicken because you can automatically download all your transactions directly from the web, then categorize each transaction. At the end of the month, Quicken will give you a report of the total you spent in each category. Another good program is Money.

The problem with using cash is that you have to keep track of receipts. Also, paying in cash or check is becoming less practical in our world of online payments, automatic bill-pay, etc.

So whether you use Quicken, make your own spreadsheet, or the old-fashioned method of receipt-hoarding, do whatever works for you. Track your spending for the month of January.

Come February, I'll help you start creating your budget. Good luck!