New Post: How to set up a Family Budget Meeting | Corey L. Stokes LLC

written by Corey L. Stokes

In my role as the money guy in my office it was my responsibility to manage a budget of $25,000 – 80,000 per year budget. I needed to ensure those funds lasted the entire year, that we got the things we needed, and the things we wanted.  I also sat through the weekly scrutiny of budget staff meeting to ensure funds were not being mishandled, and to ensure the office was on track to meet all of it’s money goals. Every month I ensured the all accounts balanced.  For the  time that I sat in the position.  I did it successfully.  So much so that my counsel was sought when I was no longer in the position.  It was a job that I did well.

When i thought about it, why was it so difficult to do the same thing at home. It did not have to be as organized as the office meeting.  But,  why could I explain a business budget in front of a room full of people looking for me to fail, and not explain a family budget to someone who wants me to succeed.

In the past I would get frustrated because I would constantly talk about what we needed to do and the route we needed to take to get there, But I was not explaining it the way my wife needed to hear it.  We’d…rather I’d spend hours explaining and we would get nowhere.  Today, Michelline and I discuss our financial situation on a monthly basis, and it only take about 15 minutes!

Here is what we do:

First,  We schedule a time and place to meet usually   we will ave coffee or tea at the kitchen table after the kids have gone to bed.  We even put it on our calendars so we don’t forget. It is our standing appointment with each other.  The date is always the last sunday of the month. This way we can discuss what we didn’t do that we wanted to do; as well as what we need to do for the upcoming month.

Next, Being the techie that I am,  I prepare (I’ll discuss how I prepare for budget meetings in another post) a Powerpoint presentation that answers the following 5 questions: (5 minutes tops)

  • What is our saving position?

  • What do we need to spend money on?

  • What have we accomplished? (Since the last meeting)

  • What’s on the horizon? /What bills can we pay off? / Where can we invest?

  • How do we stay motivated to continue?

Then, after I have gone through my slides We look a bit more detail at our budget.  My budget sheet is a bit complicated, but could be something as simple as a list of your income and expenses. We go down the list of expenses and pay everything in our expense column (on paper) until we hit zero. Once we hit zero, we are done. (5-8 Minutes)

Finally, before we end the meeting, we agree that this is the plan that we want to take for the month, and we set the next meeting date. (1-2 Minutes)

With this format we both walk away feeling accomplished, My wife, Michelline,  understands what our financial position is, and I can successfully discuss the money with my wife, without feeling frustrated.

Give it try! A few thing to remember, you will not get this right the first time.  This process is how we , get things done now. but it took us a while to get here. Also remember to leave time for DISCUSSION.  In the beginning there will be lots of discussion to get to an agreement.  The more you do it the more proficient you will be become.

#debtfree | Corey L. Stokes LLC

written by Corey Stokes and Michelline Stokes

My wife recently said that, Everyone in a relationship has a “Corey and Michelline.”  On one hand you have the very intense, get it done person. and on the other hand you have the show me what I have to work with, person. In our journey to live #debtfree, these two people were often butting heads.  During a conversation with a mutual friend.  We were asked what our first step was to become debt free.  Although this is a multilayered answer that comes with two different perspectives  it all boils down to one word. Communication.

Living Debt Free
Photo by Maya McMahon

When we first got stared, we didn’t discuss financial matters. Now, it is a topic just like everything else. Once a month we try to have a budget meeting to discuss where money is going or where it needs to go for the upcoming month; and we get it down on paper (or in my case excel). It took us a while to get to this point though.

Our very first step was communication. We needed to know how much money we had coming in. We also needed to figure out what our financial obligations were (What did we have to pay?).  Then we placed them in order from smallest to largest and paid the minimum payment on everything.

Once we paid everything, if we had extra we put it in an account ear-marked emergencies.  We did that until we came up with the agreed amount (recommended $500 – $1000). Then we took that money and added it to the lowest bill. Then paid that until it was gone. Then we took the extra money + the minimum payment for the smallest bill and paid the next smallest. And kept going like that until we paid everything off. This is called the snowball effect. With each roller over the snowball keeps getting bigger, allowing you to pay more than your minimum payment.   BUT the key is to pay the minimum payment on everything except the smallest. That one you attack with your snowball.

Michelline however had a different perspective

“This process was hell for me in the beginning. I hated it!!! But, I understood why we had to do it. He was the “yeah, we’re going to do this and that, and it’s going to take this long” (very intent and intense). Then,  there was me! I wasn’t really interested in the process. I was more like, “okay, tell me how much money I have to work with this pay period, and I’ll make it work.” I really could care less about the numbers and all the inner workings of it all. ”

The numbers are what make the formula work. But it is not just about the math, it is also about creating new habits and learning to not spend solely on emotion.

What we both agree on, is that since we’ve become #debtfree, our life has been less stressful.  We both will tell you that if we can do it, you can do it too.

What was the first step you took to become debt free?

Announcements

Next blog post I will explain the Our Budget meeting.  If you would like to give a quick summary of your Family budget meeting, or even if you have a question on how to start a budgeting meeting for your family or what it should look like, I am available to answer and I will included it in the next post

I will be starting a new service to help you improve your website look feel and producibility.  In short I want to help you succeed.  My Website Review service, coming on line shortly, is just what you need. Watch for the announcement