“This here car is the car for you.”

“Yeah?”

“You bet! I can tell from your trendy glasses that you’re a music kinda guy and this baby has iPod interface. All your music at your fingertips!”

“Nice!”

“Plus it has tons of cup-holders, plays DVDs and video games for the kids, has a GPS system, and tons of other fun things.”

“So, where are the wheels?”

“Oh… Did you need wheels?”

Photo by funkblast

Needs and Wants

As a music geek, you might persuade me that access to my iPod might be more important than having wheels while driving, but probably not. There are some basic fundamentals that a car needs to function as a car, and a lot of things it doesn’t need to work. Not even GPS.

When you’re budgeting your paychecks, make sure your 95% at least has wheels. Budget your needs before your wants.

When you fill up your “need” funds first in your budget, you give yourself peace of mind. Instead of lying awake at night running numbers in your head, you’ll know you have money for the mortgage, and the insurance, and the other bills, safely set aside. It’s a lot less stress in your life at a very little price.

That said, I hope your budget lets you have the GPS too.

It’s not about good vs bad, it’s about first vs second.

4 Budgeting Tips For Newlyweds (of all ages)

Some of my favorite people to share how to budget with are newlyweds. There’s this wonderful new beginning for them, and they’re usually anxious to start organizing their lives together.

For newlyweds (or any couple really), it’s always helpful to be on the “same page” about things. Your budget can be a very convenient and useful “same page” when it comes to your 95%.

Photo by: orinrobertjohn

As you build a budget together as newlyweds, you have an opportunity to get on the same page about a lot of things right away. Doing this will help you completely avoid many common money issues and misunderstandings down the road.

Here are 4 ideas for getting on the same page with your budget:

Use GoogleDocs

Nothing keeps you both on the same page easier than having your budget accessible online. Make sure both of you have access to view and interact with your budget, and that you’re both referring to it often. My wife and I have used GoogleDocs for 2 years now, and we love being able to look at our budget at the same time and even chat while we view it.

If you’re not familiar with GoogleDocs, you can get pretty savvy here.

Be Honest

Or, more accurately, be open and clear. Let your spouse know what your needs and wants are. If something is important to you (maybe it’s shoes, or collecting old books, or traveling), communicate that and agree on how to realistically work it into the budget – together.

This way, both of your needs are being met, expectations are clear, and you can completely avoid any “I can’t believe how much you’re spending on ____ !” situations.

Set Goals Together

Remember that your budget should help you get somewhere. Discuss what kinds of goals you want to be working for and how much of your paychecks will be needed to achieve those goals. Debt elimination and savings are easy to attach numbers to, but don’t forget “fun” goals, or lifestyle goals you both want to achieve.

Reevaluate Regularly

Your budget should help you start a conversation. As you review your budget with your spouse, you can look for areas you want to cut back, or areas you might want to add funds to. Instead of speculations and exaggerations, you’ll have actual numbers to go with your conversations.

The sooner you get on the “same page” the better, but of course it’s never too late.

Budgeting is a family affair

Mindi and Preston are good friends of ours who started a budget together shortly after getting married.

photo by: Darby Elizabeth Photography

They’ve done a great job staying with it and really taking advantage of manipulating the Skeleton Spreadsheet to make their budget their own.

I asked them a few quick questions recently about their family budget:

What surprised you most about budgeting?

How much we were able to cut back by simply setting up a budget and monitoring it. We didn’t have to work hard to make a difference.

How do you stay on the same page together with the budget?

We both have access to the budget anytime, anywhere, through Google Docs. We talk about it at least once a week,  sometimes more.

What has been the hardest part?

The hardest part was about 2 month into the budget when the novelty of it was gone and we wanted to go out to eat somewhere, and knew we shouldn’t.

What’s the best part of following a budget so far?

We feel more in control of our lives. We can actually see where our money is going and see money start going into savings.

What advice would you give a first time budget-er?

Have a little money for fun and make sure it is available. You may never use it, but just knowing that it is there helps to ease up some tension. Also, follow your budget closely for the first couple of months, and when you think you are okay not following it as close as you were… that is when you really need to follow it.

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Thanks again to Mindi and Preston. You can follow @prestoniscrazy on Twitter, and even catch him performing live if you’re in the Phoenix area.