Skip to main content
No. of Recommendations: 4
Hi CatfishDB,

My thought to make budgeting more interesting is keep a balance sheet on you and DW's finances listing all liabilities down one column and all assets down the other.

Total up the assets and subtract the liabilities hopefully this a positive number but, even so does not really matter, it's just a number.

Now, give purpose to your budget a goal. How quickly can you increase your Net worth by 10K? IMO trying to eat the HELOC elephant all at once could easily become frustrating its to far over the hill. For the numbers your using it should only take you a few months to get to that goal. How many days did it take? Reward your selves a bit after the 10K by increasing you or DW's 401K by 1% more or to a ROTH. Then push yourselves for the next 10K on net worth.

Catfish, I agree with your DW, budgeting by itself sucks – But, if you use budgeting to work for a goal, then you have something there.

What drives me to budget is small goals. Presently all I want from my budget is another 1% of DW's income or 14.5 cents and hour, by itself that sounds like nothing much but, by having little goals like this I am in the wonderful position where the next raise I get, should be next month, I will raise DW's 401K since I already contribute at a rate that will max out my 401K and Roth. So my guess it really will not take that long to get her saving percentage way up.

With such a large chunk of debt it takes a lot of determination and discipline but, if you will divide into easier milestones it's not so hard. I would highly recommend some reward at each milestone – Note - it is probably not a good idea to have the reward be spending for a while – I would suggest something that increase you Net worth but also gives you the feeling the budget is doing more than directing money down a bottomless pit of a HELOC.

~
Roy (little goals, big dreams, that kind of stuff….:0)

Print the post  

Announcements

UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.