Pre-Deployment Budgeting
It is possible.
by Dave Ramsey
According to marriage counselors and statistics, a couple has a much higher probability of marital success if they can agree on four areas before they tie the knot: religion, in-laws, parenting and money.
Much unforeseen change can occur in these areas during a deployment. But money – now there’s something you can plan for! While you can’t predict emergencies, you can find unity (both financial and relational) through planning a pre-deployment budget, thus working towards a common financial goal.
NAMING EVERY DOLLAR
Before D-Day, develop a budget for each month of deployment. Take into account the special expenses (such as childcare and postage) and income (such as hazard pay) that deployment brings, as well as holidays and special occasions. Be sure to create a realistic budget. Who has perfect months, anyway?
Next, spend all of each month’s money “on paper.” By giving every dollar a name you’re creating a “zero-based” budget. Income minus outgo equals zero. Compare each month’s income to bills, debts and, most importantly, desired savings. Match until you’ve given every “income dollar” an “outgo name.”
THE BUDGET COMMITTEE MEETING
Developing a budget sounds easy until you have to agree on it! Usually, one of you is more creative, spontaneous and resistant to budgeting than the other (aka the “Free Spirit). The other mate has a bent towards numbers and more administrative skills (aka the “Nerd”). The Nerd can be the husband or the wife, and, believe it or not, the spender or the saver.
Bringing a Nerd and Free Spirit together requires a budget committee meeting. The Nerd should prepare the budget because, let’s face it, the Free Spirit would never get it done!
Nerds, when you submit your masterpiece budget, remember to shut up and listen. You’ve had your say by completing the first draft of the budget. Now, listen and accept the fact that your mate has valid input. Agree to most of the requested changes. Your three rules for the meeting are: Listen, take input and keep it brief.
Free Spirits, be grown-up and realize that spending more than you make and financial security are mutually exclusive. Your three rules are: Show up, give input and be realistic.
A budget committee meeting, combined with a “zero-based” budget, is the best way to get on the same financial page, a goal that’s especially important for military couples. There are enough things to worry about during deployment. Your finances don’t have to be one of them.
Dave Ramsey is a radio talk show host and best-selling author of The Total Money Makeover. His Financial Peace University for the United States Military program helps military couples communicate about money, budget, get out of debt and build wealth. For more information, visit DaveRamsey.com or call 888-227-3223.