A Rainy Day Fund is always a great idea!

On the way in to work each morning, I usually listen to one of our local talk radio stations. Over the last couple of days, I keep hearing a news story about how the mayor of Kansas City, Missouri, the Honorable Mark Funkhouser (affectionately known as "The Funk"), is in the process of building up the city's "Rainy Day Fund."

I don't agree with all of the Funk's policies, but on this one, I have to give the mayor a big "thumbs up!" Way to go, Mr. Mayor!

Hmmm, I wonder if the Funk is a Dave Ramsey listener?

Larry

Food prices are definitely on the rise!

For those of you "nerds" out there that attempt to budget for food (groceries and a little for dining out), I'm sure you're probably like me and become frustrated when your spouse comes home from the grocery store having spent more money than you budgeted for. You may have seen this happening over the last several months.


Or, you go to a restaurant and notice your final bill is $5.00+ more than it used to be, and you start over spending your dining out budget line item. I really noticed this starting to happen a few weeks ago when we ate at Chipotle. Our family of 4 could normally eat here for around $18.00. When we ate there a couple of weeks ago, the final bill was around $24.00. We ordered what we normally eat there.

So, I think that gas prices have finally caught up with the prices of our normal goods and services! Hopefully, with gas prices continuing to rise, we won't get hit with too many more food price increases in the near future. They can be real budget busters.

Larry

Financial Peace University Update (Session 3)

On Sunday afternoon, we had our third session of Financial Peace University. We had another great day with beautiful weather and fairly decent attendance. I'm wondering, though, if the time change slightly affected us, or was it this week's lesson "Cash Flow Planning" (the dreaded "B" word - budget).


Here's what Dave Ramsey's organization has to say about this third session of FPU:

Dave teaches us step by step how to put together a zero-based monthly budget and how to complete all of the financial management forms. Taking control of your money takes time, effort and patience. Check your progress at LEAST once a week and give your budget 90 days to really start working. Plus, get a refresher on how to balance your check account!


Key Points:

1. Spend all money on paper before the month begins.
2. Use the Envelope System for successful cash management.
3. Give your budget 90 days to really start working.
   

Putting together a detailed budget is hard work, but it is so worth it in the end. Dave is right on track when he speaks about people out there selling books that basically tell you not to even mess with budgets because they don't work (i.e. David Bach). I love some of the principles that people such as David Bach teaches, but on the concept of budgeting, Ramsey is right, Bach is wrong (and this is speaking from 5+ years of experience doing it both ways!)

“If you go to work on your goals, your goals will go to work on you. If you go to work on your plan, your plan will go to work on you. Whatever good things we build end up building us.” - Jim Rohn (American Speaker and Author. He is famous for motivational audio programs for Business and Life. )

Larry