Dave Ramsey budget question

[caedmyn]

I'd really like to do the Dave Ramsey program to get out of debt.  I've read one of his books (not the Financial Peace one).  It mentions the budget but doesn't discuss it in detail.  I'm wondering if someone can give me a brief summary of what he says should be included in the budget.  Not so much basic expenses, but "extras".  The book I read mentions having blow money in the budget, and that's what I'm curious about (because I know if I suggest the program DH will ask if I'm willing to give up vitamin supplements and probiotics, and I'm not, because I want my kids to get healthy and they have some issues right now).

[heatherdeg]

Have you seen his website tools?  Here's the link for budgeting (including forms to help you):

http://www.daveramsey.com/articles/content-center/category/lifeandmoney%5Fbudgeting/

I reviewed some of DR's books a few years ago and I'm not sure if they ever ARE explicit about what your discretionary money would be used for because this would really differ by the person.  One person's priority would be another's ridiculism... ya know?  Your priority is supplements but the family across the street from me has a mom that indulges in a fountain Coke every day (it's her "big indulgence") and there's no way she'd be pro-supplement over it.  So nobody can really dictate that stuff to you.

The key is really about making sure that you balance what you can afford while still staying safely in your budget and then deciding what's most important to use that stuff on.

When it comes to actually making a budget, there are only so many ways to skin a cat.  DR has guidelines for percentage of income spent on housing, etc.; but  1) in the beginning, you're usually stuck with your circumstances--so those guidelines become goals; and  2) the actual creation of a budget is no different in DR than in most other places on the web that will walk you through it.  DR is better for theory on how to regard and work with your money (the order of attacking things, etc.).  The tactical details of creating a budget are pretty much the same as everywhere else.

Does that help at all?  :)

[sewaneecook]

One thing that helped me is listening to his radio program.  He often mentions that you won't feel comfortable making a monthly budget until you've practiced, usually 3-4 months.  The first month try to put down everything you can that you spend money on.  That first month, several things will come up where you underfunded a certain area and you will need to adjust the budget or you will have forgotten an item that needs to be on the budget.  The 2nd month there will be fewer of these things that come up and by month 3 or 4 you will have it down and will be able to wirte up your budget fairly quickly. 

FTR we add supplements to our grocery budget (but both DH and I have agreed on this).  Our blow money is $30 for each of us per month to be spent on any lunches we eat out and anything not on the budget that either of us wants, but doesn't need. 

[GirlBoyGirl]

This lady has a great budget-building tool and it is designed to tell you how much should be in each envelope (or jar, as she calls them). It's really neat!

http://www.gailvazoxlade.com/resources/interactive_budget_worksheet.html

[puffingirl]

In a lot of ways, it doesn't really matter which category you put something in, as long as it is accounted for.  The budget is to tell your money where to go, so whether you put the $ for supplements under "grocery", "health", "blow" or whatever, it is at least in there somewhere.  

[sewaneecook]

Originally Posted by GirlBoyGirl 

This lady has a great budget-building tool and it is designed to tell you how much should be in each envelope (or jar, as she calls them). It's really neat!

http://www.gailvazoxlade.com/resources/interactive_budget_worksheet.html

Thanks for sharing!  That is a great site!

[gbradfordsmith]

Wouldn't you rather buy your DH a Mountain Dew (w/ crushed ice that fills up about 1/3 of the 44 oz cup)?  You should go give him a hug too!

[eirual]

Just tracking your spending the first month is a good starting point. I've been budgeting for 2 years now and I still suck at it, but having a plan and a goal gets us WAY further in the right direction than wandering aimlessly through the month- even if I blow the budget by $200 (I'd love to say that's high- some months it is, some months I plumb forget about major things or get the "I want" bug).

Generally, here are our categories that work for us (but may not for you): Mortgage, rent, home insurance, life insurance, car insurance (...we are way over insured...), mortgage insurance, property tax, telephone, cell phone, banking fees, internet, water heater rental, gas wk. 1, gas wk. 2, gas wk. 3, gas wk 4., groceries wk. 1, groceries wk. 2, groceries wk. 3, groceries wk. 4 (I find if I lump these items they disappear way faster- I rob wk. 2 to splurge in wk. 1 and never get caught up- compartmentalizing is key for me), oil change, gifts, clothing, school prizes, school activities, family activity, convenience store, allowance, personal care, laundry, then I leave spaces for whatever other randomness we spend. We generally don't do "blow" money...I don't know why...

Here are seasonal/yearly purchases I leave on my budget so that I can see if I need them that month: College dues (Jan.), License plate renewal (Jul.), School Supplies (Aug.), Halloween (Oct.), Christmas (Dec.), Soccer, Tuition, Paper and Toner, Propane (May), gardening/landscaping (May), seasonal clothing for DS (oct., nov., april,may)