The Edmond Sun

Local News

Discussion

August 8, 2008

Budgeting can free up extra income

Mark Schlachtenhaufen

EDMOND — Edmond resident Lindy Van Komen is a stay-at-home mom with three rambunctious young children. She and her husband Jeff have valued being debt free so they can enjoy life more and have fewer financial worries.

These days, with talk of the mortgage crisis continuing, the up-and-down price of oil and rising grocery prices, families like the Van Komens have plenty to worry about.

Van Komen said because she is a stay-at-home mom and her husband is a post-doctorate fellow, her family pays attention to what they spend.

While spreadsheets may help some individuals track their spending, Van Komen said her family uses another method. At the beginning of each month, they withdraw cash from the bank for household needs, for anything that isn’t a bill that comes in the mail. When the cash runs out, that’s it for the month.

“It works pretty well when we’re on top of it,” Van Komen said. “It takes discipline and foresight.”

Van Komen said her family tried line-item budgeting, but it didn’t work for them. She said for herself it is better to have some flexibility.

Amy Petty, chief operations officer with Edmond-based Allegiance Credit Union, said most people view the word “budget” as a four-letter word.

“The budget is not a bad thing,” Petty said. “If it is done correctly, it is actually a very positive experience.”

Having a budget simply means the individual is going to “tell” their money what to do, Petty said. If they want to blow $100 a month, and can afford it, then budget for it.

Petty said budgeting lets individuals see how much money is needed to sustain the standard of living they are accustomed to and if they actually can afford to continue living in that way.

The first step for making a budget is finding a doable template. Petty said she personally uses financial guru Dave Ramsey’s budget template. Other versions are available on the Internet or in the local library or book store.

“Review each category of spending and realistically document what the family should spend,” Petty said. “This is not a time to lie to yourself. You need to be realistic and not just try to make the numbers look good.”

After creating a budget, it’s committee meeting time, Petty said. Call together those in the family who should be included in the discussion. Give them the budget and let them make suggestions.

The main rule here is that anyone who suggests raising the amount allocated to a category must give a suggestion as to which category to lower in order for the budget to balance, Petty sad.

“We aren’t Congress so we have to balance our budget,” Petty said.

If the conversation gets intense, then take a break an come back when everyone is less emotional, Petty said. There should be no blaming during the budget meeting. Be willing to compromise and understand that it takes a few months before the new budget will actually work as intended, Petty said.

Petty said the long-term benefit of budgeting for many people is that they report feeling as if they got a pay raise. Money has a way of just disappearing when it is not being tracked, she said.

“Once you begin budgeting your money, you will have more of it,” Petty said. “You will find you don’t waste nearly as much money as you did before budgeting.”

Van Komen suggested that individuals find their strengths and use a system tailored to them. If a spreadsheet helps, use a spreadsheet, she said.

Despite the headlines about the economy, these are good times, Van Komen said. Families have control of their own personal finance, and if they make wise choices, there’s room for optimism, even if sacrifices have to be made, she said.



NEXT WEEK: The cost of being unhealthy.

Text Only
Local News
  • jc_babyA.jpg OU Medical Edmond greets 100th baby

    Sometimes it seems as if history repeats itself.
    My Birth Center at OU Medical Center Edmond delivered its 100th baby at 7:42 a.m. Friday, 44 years after the hospital’s first 100th baby was born in 1968. My Birth Center opened in September, becoming the first birth place available in Edmond since 2005.

    February 11, 2012 3 Photos

  • 2-11 Police & fire runs

    February 11, 2012

  • School board candidates release financial reports

    Both candidates running for the Edmond school board District No. 1 seat filed their first of two financial reports with the school administration.

    February 11, 2012

  • 2-11 Edmond Senior Center calendar

    The Edmond Senior Center, 2733 Marilyn Williams Drive, is open 8 a.m. to 4 p.m. Monday-Friday.
    For information about Edmond senior programs, stop by and pick up a monthly calendar, check out the website at edmondseniorcenter.com or call 216-7600.
    Lunch is served at 11:30 a.m. and reservations are needed a day in advance by 11 a.m.
    For lunch reservations, call at 330-6293 from 9 a.m. to 1 p.m.

    February 10, 2012

  • State schools to receive No Child Left Behind waiver

    State Secretary of Education Phyllis Hudecki announced Thursday Oklahoma is one of 10 states chosen to receive a waiver from No Child Left Behind requirements.

    February 10, 2012

  • Logan Co. Democrats to meet Monday

    The Logan County Democratic Committee will have its monthly meeting on Monday.
    The main order of business will be Get Out the Vote for the April 3 state Senate race. Precinct officers are encouraged to attend. In addition to business and planning items, the group will celebrate Logan County Democrats with birthdays in February. 

    February 10, 2012

  • Eloise Rees.jpg Edmond loses wealth of knowledge with death of resident

    The death of longtime Edmond resident Eloise Rodkey Rees goes with the saying that with every death, you lose a library.

    February 10, 2012 1 Photo

  • Polling places: Where to vote

    February 10, 2012

  • Humphreys seeks Senate seat

    Fearing that the liberties of Oklahomans are slipping away, Republican Chris Humphreys said he hopes to win the state Senate District 20 primary race set for Tuesday.

    February 10, 2012

  • Unwritten contracts hard to prove

    Q: Can an agreement be enforced if it is not in writing?
    A: Although it is generally advisable to put every agreement in writing, most agreements can be enforced without written evidence of the deal. Both oral and written contracts can, in the right circumstances, bind the parties to perform.

    February 10, 2012