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My wife reminded me that we needed to sit down and talk finances. She was right, as she always is. I knew it was going to be a long conversation, as it was the first one that we’d had since our annual Memorial Weekend party.
We both knew this was going to be an in depth, serious conversation.
We both knew that as we prepared for the party we essentially ceased to execute every single technique that had resulted in us successfully handling our finances over the last few years. It turned into a full fledged, throw the budget to the wind, let’s get what we need for this party spending free-for-all. We put everything on a credit card, so we could see the true cost of our party. (read: we didn’t want to pay attention to how much we were spending, so let’s just charge it and deal with it later. W.T.F. were we thinking?)
We knew it wasn’t going to be pretty, and it wasn’t.
The good news is that we had saved up a good sum of cash over the last few months that made a huge dent in the number. But the number was supposed to be zero after that payment, and it wasn’t.
Our discussion would be how we were going to knock out the remaining balance.
Being honest with ourselves, we had been on a downward slide with our method of handling our finances for a few months, and it was time to get back on track.
Evaluate All Expenses
It’s been months since we’ve looked at all our monthly expenses and ensured they give us the appropriate amount of value for their cost. I’ve got a red pen, and have an itch to do some expense slashing.
Regular Budget Meetings
We are supposed to go over our finances every Thursday and Sunday evening. We’ve been inconsistent, and the result shows that. We agreed to be dilligent about having our discussions, and getting our teamwork back on track.
Budget Reset
We’ve had some changes in our income flow over the last few months, so we really need to break out spending plan down again. This will include allocating an amount towards our party balance to get that knocked out ASAP.
Keep Groceries On Budget
I used to have a calculator with me at all times in the grocery store to ensure I stayed on budget. I haven’t done that for awhile, since we had room in our budget to go over if we wanted. It’s time to reign that in, and spend only what we agree to.
Cash For Entertainment
Our agreement is that every Friday I stop by the ATM and get cash for our entertainment spending. I haven’t visited my friend the ATM for awhile, and I’m sure it misses me.
We had been doing well keeping our spending in check for a long time. We got complacent, and as the rigidity of our financial management framework disintegrated, overspending started to creep back into our lives.
Our left over party balance is a wake up call to get things back in order, and get back on track with what made us successful. We have a plan to have that balance knocked down quickly, and from there we’ll be back on track again for the future.
Have you ever fallen off the financial wagon after doing well for a long time? What made you climb back on?
Glad you recognized the slide and are in the process are getting it back on track. We haven’t fallen, but have gotten a little lazy. I think it’s time to track spending for a month and see what leaks can be plugged.
Plug those leaks, Brian – we’ll both be amazed at how much water we’re letting in the boat!
Anyone who says they never fall of the financial wagon hasn’t been on it very long! I think what makes us climb back on is reminding ourselves that our long-term goals are important. Yeah, fun today (like your party) is important too, but we all have to work to strike that balance so we don’t undermine our goals by partying too much today!
Agree, Kurt, and that’s the difference between the 2015 edition of the Pizels, and the 2000 edition. The older model would have just shrugged our shoulders and just kept on spending!
I say stop everything and hold off on ALL spending that isn’t absolutely necessary, and pay this off. Do NOT let that bill get comfortable.
I’m hoping you have an emergency fund that you aren’t willing to crack for this, and that’s a good thing. It seems like you need to go back to spending only what you have pre-allocated. You did not have a fund for this party and so you didn’t know how much you really had to spend. Save beforehand, don’t play catchup afterwards.
Good luck!
Definitely have the e-fund, Scooze….the good news is that we DID have a fund for the party, we just chose to ignore our ceiling and overspend. We paid off a pretty good chunk of it with the cash we had on hand, but were left with a balance. Tightening the screws until it’s paid off!
Glad to see you are getting back on track. I went a bit over my budget this month as well. I had to move and pay double rent for a short period of time. This caused me to eat out more than usual and I had some expenses I wasn’t quite ready for. Although I didn’t put any of this on credit, I’ll have to make up for it in other areas.
Good to hear you didn’t have to put any of it on credit, Jason. Work the numbers and get everything back on track!
It’s interesting because people think that once you are out of debt (or done making financial mistakes) you’ll NEVER go back to that again, but it’s sort of like being any kind of addict I think. You have to maintain, and sometimes that’s hard. Glad to hear you’re getting back on track.
Maintaining the state of anything takes hard work….we may go through hills and valleys, but hopefully we’ll never drop off a cliff again! 🙂
I think everyone does this from time to time. Its especially east to say the heck with it if you’re already over budget anyway. We have certainly done it before in the past.
This sort of thing happens sometimes to me at Christmas….we know we’re at our budget ceiling, but there’s just a few things left to get, and then a few more, and then a few more, and then it snowballs and I just think “Screw it, I’m just gonna tuck in and ride it out…I just want this OVER!” And getting it over is more important than staying on budget. yeah….the party shopping seemed a lot like that. Thanks for reading, Holly!
I think there are very few people out there who don’t fall off the financial wagon once in a while. Its what you do when you fall off is the important thing. Its never too late to get back on track and make a difference.
I agree, Petrish……as long as you get back on just as many times as you fall off – things will generally work out. 🙂 Great to hear from you!
It didn’t take you long to recognize this fall and to face it head-on. I understand how these kinds of slips happen. My husband and I recently went out to a movie for free, and since it was free, we figured we could treat ourselves to beer and chicken wings at a pub afterwards. It came out to over $40. How free was that? If just felt so good and comfortable to indulge again. Old habits die hard – especially when we actually like them. All the best in killing those habits off for good. And I hope for you – as I do for myself – that you will reach a place where you genuinely love the frugal habits that lead you to where you want to be financially.
AH, the free movie turned into dinner. Yup…had that exact thing happen to us before as well. I love my frugal habits, but sometimes the devil sitting on the other shoulder has something to say about what should be done too. LOL.
I make mistakes all the time LOL! I think the important thing is to be forgiving of yourself and move forward.
Forgiveness is a big deal, Michelle…until we can forgive ourselves for a mistake, we’ll never really move on.
I hate the feeling when you try to pay off your credit card and you just don’t seem to have enough cash to fully pay it off. This is why credit cards are so dangerous to me. I’ve been there, and I’m sure you guys will bounce back!
You better believe it, Lisa….we’ve got a plan, and we know what we need to do to execute that plan. Thanks for the encouragement!
Very helpful! I think I might need to take a lesson and have sit down meetings with my husband weekly instead of talking about finances when bills are due or when it’s time for groceries. We have at least started a chart that shows how much bills are each month and how much we’ve been putting towards those bills, first month of trying and so far it’s been very successful! 🙂
The more communication the better, Jane….AND, the more often you do it, the shorter each individual discussion takes. It feel great being on the same page all the time!