Cash Flow Planning...Oh My!

"Money flows from those who don't manage it
and to those who do."

A little late on my Thursday post, here it is...

Ok, so just being honest here, I am totally stoked about all the forms and getting things organized. If you know me, you know what it is to be/have "a little" OCD! This part excites me a little, ok a lot, I know my inner "Nerd" is showing...I'm good with it.

The idea here is to create a zero based budget using the income you'll have. Spend every dollar on paper before the month begins...being sure to secure your "4 walls" first. Paying for necessities before creditors ie.

1)food

2)shelter including utilities

3)clothing and

4)transportation

Then continue allocating all income until you reach a zero balance. You have now told it where to go. Next step follow your plan...

I am not excited about the reality of this...We had our Budget Committee Meeting and there is definitely to much month left at the end of the money, it is scary to lay it all out and really look at what a monster you've created. I cried and he used a few choice words then we realized how bad we need to do this! We did not get in a big fight with one another just emotional about the reality of the situation.

I made a Family Budget Binder w/ a FPU cover sheet to keep things organized and accessible. I plan to work on more forms today and use our Budget Binder when planning for and when paying bills ect. The categories that recommend using cash for we are committed to use "cash only". Our plan says we will be out of consumer debt by July/Aug of 2012...not to far away! Come on cleaning jobs for me and a little overtime for him, then maybe we can do this thing sooner!

Wish us commitment and diligence!

"Be diligent to know the state of your flocks, and attend to you herds" Proverbs 27:23