Below The Black Line

This photo is from yesterday, on my way home from taking J to school. White horse, white snow, cool clouds, neat lighting. I just couldn't resist!

We started the Dave Ramsey Financial Peace course. Or at least, Andy attends and tells me all about it.

I am so relieved because there is actual a system for people like us who do not have any idea how much money will or will not be coming in each month. It is one of the most nerve wracking parts of being small business owners, but now we have a plan for budgeting.

Its called "The Black Line!" Or at least that is what I call it. It goes like this: Make a list of all of your financial obligations. Then, prioritize them - what has to be paid before the other things. Ramsey suggests that the first four items should be food, housing, transportation and utilities, because basically you can't go without those things. Then, start all the other items.

Andy and I went through the process separately, and came up with very similar priorities. I don't know what he thought was his strategy, but after those four basics, I put anything that was necessary to continue to make money - bar fees for Andy, an office for Andy, that kind of stuff.

Once you have your list, keep a tally of how much it costs to fulfill it. When you get to the amount that you have as income that month, draw a black line. Everything below that line is just not getting paid that month.

Now, here is the hardest part: Ramsey says if such and such creditor calls and says you didn't pay us this month you say - I didn't have enough money for everything this month, and you fell below the black line. Then, you quietly hang up. Gulp! Okay! I'm hoping that most months none of the things that we would get a call about will fall below the black line. But at least we have a plan if that does happen.

This month some things are falling below the black line:

• new clothes - I sewed the big rip in my slip and said "good enough!"
• Anything over $500 in groceries (food, toiletries, pet food, household cleaning);
• eating out - not even buying little snacks out, gotta make those at home;
• books and magazines - thank God for the library;
• art supplies - wasn't buying many of those lately anyway;
• a new camera lens - well, that really was kind of a pipe dream anyway;
• photo printing - have to use older photos already printed for scrapbooking next week;
• Halloween Decorations - that one really has J resenting the black line;
• Early Christmas shopping.

See, the big thing is that I can't really think of anything we can't do without that falls below the line. And frankly, only spending above the line feels so safe! And safety is so much better than anything below the line.

Works for me!