Next Steps:
Carefully track your income and expenses this month (or start at the beginning of next month if you will not be able to get an accurate picture for the entire current month). Use the categories in TISHA_extra to determine how much you're spending each month in each budget category.
Now, calculate the percentage for each category of your total monthly expenses. (For example, if my total monthly expenses are $2500 and my monthly spending on automobile is $200, then $200/$2500 = 8%) Compare the percentage you are spending for each category and discuss as a couple if/how you'd like to see those categories change.
Using the TISHA_extra framework, develop a monthly budget based on your desired percentages for each category. As you discuss this as a couple, remember, money decisions are often a reflection of the things you value. We often put money toward things we value, so realize that your spouse's desire to spend more on clothing and shoes does not make him/her a bad person, but rather reflects the value they find on fashion and looking or feeling good. It may be helpful for you and your spouse to independently rank the importance they place on each budget category. This will help you compare the areas that you both find important/valuable, and which areas you may not completely agree on. Then, assign higher percentages to those categories that you both value highly.
HINT: Here are some monthly percentage recommendations for the main categories of TISHA
Tithe: 5-10% - this can increase as you feel led -it's fun to be generous
Invest: 3-10% - this can also increase as your income increases
Save: 5-10% - until you have at least 6 months of expenses saved up. Then just set aside a small amount to keep in the habit of 'saving'!
Housing: 35% - depending on what area of the world you live in, this can fluctuate, however, keeping your total percentage of housing expenses under 35% is ideal
Automobile: 7% - is an average amount that couples spend on their monthly auto expenses. Try not to go much above this percentage
HINT: Here are some monthly percentage recommendations for the main categories of TISHA
Tithe: 5-10% - this can increase as you feel led -it's fun to be generous
Invest: 3-10% - this can also increase as your income increases
Save: 5-10% - until you have at least 6 months of expenses saved up. Then just set aside a small amount to keep in the habit of 'saving'!
Housing: 35% - depending on what area of the world you live in, this can fluctuate, however, keeping your total percentage of housing expenses under 35% is ideal
Automobile: 7% - is an average amount that couples spend on their monthly auto expenses. Try not to go much above this percentage
Order is important! Now that you have your monthly budget set up based on percentages, get in the habit of paying your monthly bills in TISHA order. Start by giving! Then set aside your investing and savings amounts. This will help you keep in mind that setting your family up for financial success means having disciplined and purposeful spending habits.
Hint: There are great online budgeting tools, such as Mint.com that make tracking spending and budgeting a breeze and much less time-consuming!
Hint: There are great online budgeting tools, such as Mint.com that make tracking spending and budgeting a breeze and much less time-consuming!