# The importance of step 1 - BUDGETING



## Son_of_Perdition (Jun 22, 2014)

Three things came to light after I started my umteenth and hopefully last personal budget back in 2009.

1.    I was paying too much in interest/fees to credit card accounts.
2.    I was unaware of how much I was spending on everything.
3.    I knew how to save and the importance but must have liked living on the edge.

Solution:  After getting serious about budgeting I:

1.    Eliminated as much debt as I could fast.
2.    Controlled my money since no one else was.
3.    Got saving. 

During my working days I had no fixed income.  I was paid every 2 weeks for 35 years and it was chicken one payday then feathers the next.  I had almost unlimited overtime so checks were all over the place.  I could always rely on the fact that if I wanted something unnecessary I could get a little OT or charge it to my CCs because there would always be extra money within a coupla weeks to cover it.  Then boom! along came 2007-2008, then my looming retirement and with the economy tanking my overtime started to dry up.  Management was on a budget too.  I was lucky that the company I worked for had a decent pension plan in place that I had grandfathered into early.  They also started their 401K around 1984 and in my brilliant mind I choose to use it as my personal slush fund.  Over the next 23 years it enabled me to buy alot of toys, pay for 3 weddings, take extended trips and live large for the moment.  Taxes were out of control but I was living high.

After many aborted attempts and web surfing for information the first few weeks of my revelation I finally decided to track and budget my money using a simple spreadsheet application.  I had experience with them during my career and was able to create one that met my situation.  It has been an interesting 5 year journey, I hoped for and arrived at a place I can now look back and say 'It worked!'.  I first hated credit cards then decided they are a necessary evil for many but I had no control over them.  I choose to go on a cash/debit card diet and have remained there since 2008.  I purchase older relieable autos.  Sold our home and downsized with no mortgage debt, I do have space rent but it is less than my house payment was.  Money in the bank/cd's/money market accts, limited money in the stock market, a little mad money on hand for emergencies and can give my children/grandchildren a gift without charging it.  My final expenses are covered, my wife has a road map and enough to weather a little strom until things are in her name.  She is totally in step and has the knowledge to get into and close my accounts. She also has a clearer picture of my stupid mistakes financially.  Believe me it wasn't my finest hour coming clean with her financially.  I never knew she knew those words and names that I was subjected to during our first family meeting, she was like a pit viper.


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## Ina (Jun 22, 2014)

Son, What a great lady you're married to. She did keep you. So what's a little viper bite? :hit:


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