Face the Music
Last week, I introduced you to the concept of a financial “Fuel Gauge.” Here are the eight steps that create a full financial tank:
Today, we'll start with step one of eight: a Balanced Budget!
Several years ago, a friend of mine stomped into my office, clearly frustrated, and slammed the door behind them.“I am never getting ahead,” they said. “I feel like I’m on a hamster
wheel that doesn’t go anywhere. Every time I think I’m ahead, something happens, and I’m behind again.”
By their tone, I could tell this friend felt underpaid in their current position. Here’s the thing—because we were close and had discussed it before, I knew exactly what they made. And it wasn’t chump change. In fact, it was above market rate. So I asked a simple question.
“How much do you make?” I asked.
“Well... somewhere around (this amount),” they said.
I followed up with, “What do you mean, ‘you think?’ Do you know exactly how much you make?” Silence. And in that silence, we found the real problem. This wasn’t an income issue. It was an awareness issue.
I’ve been there. Years ago, my wife and I sat at our kitchen table with zero dollars in the bank. We didn’t know what we brought home, and we definitely didn’t know where it was going. We lived by the lie that “ignorance is bliss.”
A lot of people believe that if they don’t check their bank account, they won’t have to worry about their money or be stressed about their finances. So they ignore their money until reality forces their hand.
Maybe that’s you right now. It’s September and the holidays are just around the corner. The credit card is maxed out. The bank balance is lower than you expected.
Ignorance worked for a season, but now it’s caught up. Here’s the truth: avoiding your finances doesn’t remove stress; it delays it. Delayed stress always comes back bigger.
When my wife and I finally faced the music, it was humbling. I realized I wasn’t living lavishly, but I wasn’t living within my means either.
In future weeks, we will unpack what living within a balanced budget practically looks like, but here’s my question for you today: Are you ready to face the music? It’s time to see what you know about your money. How much are you bringing in, and how much are you spending?
On a sheet of paper or in an Apple Note, I want you to write down how much you think you make a month (an average over the past three months) and how much you think you have spent per month (again, an average over the last three months).
After you have compiled those totals, download RocketMoney or a similar app, connect your bank accounts and credit cards, and let it show you how much you have actually spent and made over the past several months.
Once you have faced the music of where you’re actually at today, you will be ready to begin balancing your budget.
To read all these steps and hear stories about how they work in real life, you can get your copy of INCREASE from The Wildwood Bookstore downtown Hastings or online on Amazon. If you choose to shop local at Wildwood, you’ll receive a free copy of my children’s book, The Treehouse Dream, as a thank you!
Thank you in advance for purchasing a copy of INCREASE. Every purchase will help further this message of stewardship to our community and beyond.
Zach Santmier is the owner of Trumble Agency, Inc. and the author of the personal financial course, Increase. He focuses on helping families escape paycheck to paycheck living so they can freely pursue their ideal future.
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