Four Qualities of a Bulletproof Budget (Part Two)

Welcome back to our “Bulletproof Budget” series! We truly hope you are having an excellent week so far!

As promised, today’s post is about the final two qualities of a bulletproof budget. In Part One, we mentioned the first two qualities, which are 1) Keeping your budget simple and, 2) Making sure you and your spouse agree on the budget.

Without further delay, here are the final two qualities of a bulletproof budget.

A Bulletproof Budget Is…

3. Comprehensive

There is no such thing as “unexpected” when it comes to a truly comprehensive budget. Notice…I didn’t say “complex.” It is possible to have a budget that is thorough and accounts for everything yet is still simple and easy to understand. If you create a budget, yet still find “unexpected” expenses popping up throughout the month, then your budget is not comprehensive.

I’m writing this about two weeks after a team of Navy Seals killed Osama bin Laden. Speaking about the planning for the raid, one commentator stated that they had contingency plans for every possible scenario, and then they had contingency plans for their contingency plans. Likewise, your budget is literally your spending plan. No budget = no plan. Inadequate budget = inadequate plan.

Studies show that the most common cause of major debt is unexpected emergencies. Obviously, you can never fully expect a car accident, or a sudden job loss. But you can prepare financially for the unexpected by allocating funds in your budget for these items.

Most “emergencies” are really smaller issues which should already be included in the budget as a line item, such as vehicle maintenance. The real emergencies are typically weathered by having an emergency fund, which starts around $1,000 and should eventually be built up enough to cover 3-6 months of living expenses.

4. Personal

Your budget is your budget. We highly suggest customizing any online template or form you may find so that it fits your needs and even your style.

Even though I’ve looked through dozens of different forms and templates, the budget Beth & I use was created by us from a blank Excel document. Why? Because it gives us the flexibility to make changes. I even change the colors and layout every so often just to give it a sense of newness. Sometimes I’ll add a scripture or quote to the budget. The point is, your budget needs to fit YOU. The more “U” that’s in your budget, the more you will enjoy it and take ownership of it.

That’s it. Simple, Agreed-upon, Comprehensive, and Personal. If these four qualities exemplify your budget, then you have something solid, err…bulletproof, that you can work with.

Comments

Please post a comment or question! Which of these four qualities does your budget need the most? We respond to 100% of our comments.

Committed to your success,

-Wesley

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