In the recent years, my husband and I got a handle on our finances and it has been SO. FLIPPIN. FREEING!!!!
We didn’t start new jobs or get promotions, we didn’t downsize our home, we didn’t sell a vehicle, we didn’t do anything particularly drastic or noteworthy.
Our approach to money simply changed.
I know many of my readers have loads more life experience and money experience than I. But some of you don’t! So this one’s for you (but also me, because sometimes I have the memory of goldfish).
And although you could get a plethora of wiser financial advice out there from the actual experts, I’m excited to share the little changes that have made a big difference.
When It Doesn’t Add Up
Before I get into the good, the bad, and the ugly, I can’t talk about money without talking about the Divine. Although most of this post has to do with our own efforts in getting a grip on money and spending, it has ONLY been by God’s grace that we are in the position we’re in.
When we left Montreal just over five years ago, I also left a teaching career. It’s no secret that teachers don’t make great money, but it’s still a liveable salary. And for our family of four, we certainly depended on it.
Well by faith, we gave that up. And since then I’ve learned two things about God and money:
- God is sovereign
God is in control of my life. That includes my money and my struggles with money. Somehow, in ways that cannot be explained by my finite brain and limited vocabulary, we always have enough. Always. It just doesn’t add up. Don’t get me wrong, it’s not that we’re swimming in pools of dollar bills. We hardly ever have as much I wish we’d have. But our needs have always been met. Always.
In God’s economy, the more we’ve given away, the more we’ve been blessed with in return. Every time. We tithe regularly, but still find other opportunities to give on a more sporadic basis and sometimes it’s a real sacrifice to do so. Whenever that happens, we receive anonymous gifts, unexpected government cheques, lower utility bills than budgeted for, etc. God is sovereign. And somehow, He always works it out when we trust Him with it. - God expects good stewardship
Just because we have all we need, doesn’t mean we get to live foolishly. Whatever has been entrusted to us should be stewarded wisely. The term steward literally means to be responsible for the care of something that doesn’t belong to you. I believe that whatever I have, actually belongs to God and that I’m simply given responsibility to care for it. Therefore, my money isn’t actually mine to spend how I wish.
To be clear, it’s not that I believe God will smite me if I buy one (or three) too many Starbucks coffees this week. But that we have the freedom to do with our money what we wish, and still we choose to honour God with it. Just because God has been faithful to always provide for us in the past, doesn’t give us free rein to spend frivolously and say, “God will provide for my needs, even though I’ve spent all my money on my wants.”
That said, the bulk of this post will tackle the good stewardship I’m still learning and hope my own journey will be a blessing to you too.
Debt Consolidation
If you’ve been adulting for more than a hot minute, you know that debt consolidation is probably the most obvious place to start with money management.
Disclaimer: This also happens to be the least sexy part of any money talk. So let’s just get it over with.
The word debt in itself, for lack of a better term, is so bluuuhhhhhhh, in my humble opinion. It can be the source of so much stress and strife. Which is why managing it in a way that works for you is the logical first step.
The hard thing about debt is that it’s spending today’s money on the past.
It feels like such a waste! When a pay check comes in, I want the freedom to use that money for expenses, of course, but also to plan for the future! Things like saving for a vacation, home renovations and upgrades, and lots of other boring fun adult things!
But it can feel crippling to see much of the money coming in, go right back out to pay off things you’ve…
- already purchased
- already completed
- already visited
- already studied
- already lived in
- already drove
- already ate
- already done and over with!
Just already ready to move on… So the sooner we can sort out a way to manage, and ultimately, clear that debt, the better off we’ll be. This is what I tell myself!
A few years ago we combined the various loans we were paying off into one low-interest loan. This was a huge weight off of our shoulders and alleviated much of the stress of paying off debt. We were able to see light at the end of that tunnel. Rather than a long, dark tunnel of built up interest. Another non-sexy word.
Track Your Spending
Before you can put a budget together that best reflects your income and expenses, it helps to know how much money actually goes towards each of your various expenses.
For example, I assumed that way more of our money went to groceries than it actually did before we consistently tracked our spending. Since I’d often add housewares, clothes, and other items to a grocery bill, I didn’t really have any idea how much we actually spent on just food each month!
The wonderful world of spreadsheets
I am not a numbers person by any stretch of the imagination. Balancing a budget does not come naturally to me. Thankfully, my husband can throw together a pretty impressive spreadsheet. To me, it looks like wizardry, but it’s actually quite simple.
Our fixed expenses have been set up for automatic withdrawal such as our mortgage, hydro, insurance, etc.
Side note: If you’re not already, I do recommend this if you have a fixed and predictable income.
But other monthly expenses without a fixed rate fall under the following categories:
- Groceries
Food and just food - Discretionary
Eating out, gifts, makeup, clothes, toys, activities, decor, etc.
This also includes any items we want but don’t necessarily need - Household
Laundry detergent, toiletries, cleaning products, etc, - Gasoline
Yep, just gas
My favourite thing about tracking our spending is that it’s eliminated the element of surprise. I remember hoping we’d have enough money at our disposal by next pay, and that was stressful and dumb. Now, no more!
Make a Budget and Stick to It
If I had a nickel for every time I heard that line…
I just wish it didn’t take me so long to actually do it!
So once you’ve got an idea of WHERE your money is going, you are now better informed for making a budget that will actually work for you, rather than make you feel chained to something that doesn’t reflect your spending and lifestyle.
Personally, there were areas in our life of spending where purchases were made too frivolously or carelessly. As a result, we didn’t always have the money to spend on things we actually wanted more than some arbitrary impulsive item!
So as a result of sticking to our budget, we’ve found real freedom in being more mindful of our purchases because it’s actually freed up money that would otherwise be wasted needlessly.
Do I need it, or do I want it?
Those who buy what they do not need steal form themselves.
– Swedish Proverb
Another super easy way to manage spending! I credit my husband for this one as he started asking himself this question when he’d be out shopping and realized how little he actually needed.
In the moment, holding an item you really want can feel so much like a really NEEEEEEEED item! But putting it down, walking away, and getting back to the rest of your real life has a way of putting it all into perspective. Sure, there’s moments when I still think about certain items. I’ll mull it over, look at our budget, and if I decide I still want it, AND it fits within our spending goals, then I’ll buy it.
Immediate gratification is a hard thing to unlearn, but it’s not impossible. I am a testament to that! Not perfect, still a work in progress, but not impossible.
Culture of Consumption
That brings me to my next point: the consumption culture in which we live.
You don’t have to look hard to find ads that tell you you’re worth it or just do it. The inclination to gratify and satisfy our desires does not have to be learnt. Pair that with products that are no longer made to last, and you’ve got yourself a revolving door for every shiny, new gadget that money can buy. And if you haven’t got the money – then credit. Credit could buy it.
I honestly never thought we’d get a handle on our finances. So much of my spending habits became exactly what habits often are: second nature, impulsive, and just not well thought through.
But like all other habits, this too can be broken.
It’s been downright liberating to step back and realize how easily we can get by without. Just without. Without the newest, biggest, fanciest, latest, greatest anything!
And lastly….
Inexpensive Alternatives
I still like having pretty clothes and a tastefully decorated home.
I know both are subjective. So if you think I get dressed in my sleep or have my toddler decorate our home, then you probably won’t love the tips that follow.
Here’s how I get the most out of our budget:
- Avoid shopping at the most expensive grocery stores
I do about 80% of our grocery shopping at Food Basics. It’s not the cheapest but it’s definitely not the most expensive. I couldn’t believe how much it lowered our grocery bill when I began to shop there regularly. So for generic products like cereal, yogurt, canned goods, and frozen pizza, it doesn’t really make a difference in quality, but it certainly makes a difference in cost.
Some of our favourite items can be found at Superstore, but I find them significantly more expensive so I tend to avoid doing a whole grocery haul there if I can help it.
Fruit stands are my go-to for fresh and cheap produce during spring, summer, and autumn seasons. You can read about my favourites here!
- Shop Secondhand FIRST
Every season, the kids need new clothes. It’s just the reality of growing weeds. In anticipation of the change of seasons, I like to check out a nearby consignment store called Once Upon a Child, as well as our local Value Village, and Facebook Marketplace for some quality pieces.
If you haven’t shopped secondhand, you don’t even know the thrill of finding gems for dirt cheap. I highly recommend it!
- Shop the Sales Rack SECOND
Whether in-store or online, sales sections are goldmines for liquidated items. If I don’t find what I’m looking for at my go-to secondhand stops, the sales section is my next stop in helping my dollar go a long way. For some of my favourite shops and other fashion musings, check out this post!
- Shop Out-of-Season ALWAYS
Another thrill-seeker’s satisfying discovery: out-of-season items are also significantly reduced. Kids need swimsuits next year? Buy them in the fall. New winter boots? Pick them up in the spring. These items are brand new but so cheap because the demand for them is next to nada when out of season!
Cheers to the thrill of saving a buck.
Save Save Save
Do not save what is left after spending, but spend what is left after saving.
– Warren Buffett
Part of our monthly budget accounts for our tithe (church and charitable donations), and savings.
For savings, we decided on a fixed amount per month and transfer that amount to a separate account right on payday. If there’s an emergency that requires the use of that money, we know it’s right there and available.
However, if we waited until there was enough money to save, we’d never save any of it. There’s always something else to buy, or do, and never enough money for all of it. So by limiting ourselves to what we’ve set for spending ahead of time, we never have to hope that there will be some money left to save.
Bite-Size Savings
Something new we tried in the last year, was to put aside a small amount of money each week out of our discretionary spending for a specific purchase. In this case, for our family vacation! We didn’t really feel the pinch of that bite-sized savings. But we were really glad to pay off our family vacation without dipping into our main savings or charging it to credit. This has probably been the most satisfying financial thing we’ve ever done. It felt like we went away for free!
From The Overflow 