Tag Archive for ‘budget’ at Serving Bread

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When I was young, my parents gave me a weekly allowance I could spend as I wished. There were no conditions attached to the allowance—it wasn’t attached to grades, to chores or even behavior. It was simply money given to me on a weekly basis, allowing me to either spend it immediately or save it for a larger purchase. (I usually saved my allowance for months on end to purchase a computer game)

When I began working and earning my own money, I stopped getting allowances. I had little expenses, which allowed me to spend earned income on pleasures. The foundation of financial independence was:Â spend what I earn. I did not budget, save or consider any expenses.

A few years ago, I reintroduced the concept of an allowance into my budget. Our family tries to live by a strict budget and the allowance has been an important “line-item” in our budget. Rhoda and I each receive an allowance in cash at the beginning of the month. That money can be used for any purpose without the need to account for it. That money is used to eat-out, purchase books, or entertainment. We can save it to increase our purchasing power in future months, or we can spend it all in one day. But once that money is gone, it’s gone. Neither one of us is allowed an increase or an advance on such discretionary spending.

An allowance gives us the freedom to do whatever we want with a limited amount of money. It is both freeing and restricting in a healthy way. For the past seven years, our income has increased, our expenses have increased, but we have been faithful to keep our allowance at the same amount which is $60 for each of us. Sixty dollars may be too little or too much for you, and you may need to figure out how to adjust it to suit your lifestyle. (I know of a couple who live with a $20/month limit)

Whenever I am counseling people in areas of stewardship, I usually begin with having them develop an amount for an allowance. It matters less to me what the amount is (I once had someone set her limit at $500/month) than that they are abiding by the limits of an allowance. Over time, I will work with them to limit or cut their allowance spending.

Give yourself a monthly allowance, but the key is that you have to abide by your limit. Blowing off an allowance will render this system useless.

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Finance Friday 14: Measures of a Strong Economy

Finance Friday 17: First step to get out of debt

Finance Friday 27: Tools to help you

Finance Friday 24: The bad among us

For Californians, the elections are fast approaching. For those of you who are registered with a party, your vote will make a more significant difference in electing a candidate than previous primaries, since California moved the date up four months. For those of us who are not affiliated with any party, we get to participate in the electoral process by voting on state measures.

During the November 2007 election cycle, I posted my summary of each of the ballot measures, trying to keep myself mostly neutral on the issues. This time around, I am chucking neutrality and telling you how I plan on voting.

First, ~~let’s talk~~ let me vent about our state’s financial health.

Last week, Governor Arnold Schwarzenegger gave his annual State of the State address, where he outlined his commitment to reduce our budget deficit. With all due respect to our governor and those in the state who are committed to balance our budget, the state of California is incapable of balancing the budget. The legislators in Sacramento are incompetent when it comes to dealing with money. We have a budget crisis, where we are facing draconian cuts in all areas of government services that will affect all of us. For example, we are looking at the closure of several state parks and the early release of prisoners in the name of “balancing the budget.”

Let me tell you what irritates me about our budget. California legislators moved the primary from June to February so that California has a more prominent voice in the primary cycle. I don’t have a problem with that, but what I do have a problem with is why they kept the June election in the books? Why not move the entire election cycle to February?

That’s right, this year, the voters of California have the privilege of going to the polls three times. In February, June and November.

I’m not sure what the cost of hosting an extra election is on the state, but in three Northern California counties alone, it’s costing them over $6 million. Any thoughts on what we can do with an extra $6 million?

In addition to the unnecessary extra election, I am also irritated by the number of “official” mailings I have received for this election alone. I have the “California Presidential Primary Election Official Voter Information Guide”, the “Los Angeles Voter Information Pamphlet” and the “Sample Ballot.” How much money and trees must be spent to communicate the same thing?

Next time, I’ll tackle the propositions!

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Proposition 10 — NO

Proposition 1A

Fantasy Election Game

Proposition 87