MY BUDGET BOXTM
Family Cash Budgeting System
Family Cash Budgeting System
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FAQ'S
How is the My Budget BoxTM different from other budgeting systems
available?
My Budget BoxTM is different because it is "hands on" and cash focused. Once you receive My Budget BoxTM via UPS and open the box, everything you need to start immediately is at your fingertips. It is simple and easy to use. There are no computer programs to load and learn to use. No need to turn your computer on and wait for it to load, then open a program and wait for it to load and then input all your information into a stagnant spreadsheet. With My Budget BoxTM you are actively engaged in managing your money!
Why do you place an emphasis on the cash aspect of budgeting?
With the world economies, as well as our own, in turmoil, it is imperative that families get a grip on their debt and spending. The best way to do this is through CASH management. With the direction our economy is headed, credit tightening daily and banks failing at a record pace, cash will be more important than ever. NOW IS THE TIME to learn to use and manage your cash.
Why do I keep hearing so much about debt-free living?
If we are realistic and honest about where our economy is headed, we will understand that the days of free spending and easy credit are over. Banks are failing at a record pace and credit is tightening daily. Interest rates on unsecured debt has skyrocketed and you need to protect yourself and your family from these problems.
How can My Budget BoxTM help me to be debt free?
It will help you focus on your spending habits and adjust them to fit your available resources. By identifying problem spending areas you can redirect funds that were previously wasted to reducing debt. By gaining control of your spending you can curb your dependence on credit and begin to eliminate it from your life.
I always thought living on a budget would be confining, but your customers keep talking about how freeing it is--how can that be?
Actually, having and sticking to a budget is a very freeing experience. By knowing at any given time how much money you have to spend on items, you can make more informed and controlled decisions on purchases. When you know you have the money for something you can buy it and not feel guilty or worry if you made a poor decision. By taking the guesswork and worry from your spending habits you can have greater peace of mind and freedom.
Who should be on a budget?
Anyone who is responsible for managing cash flow in a home or business needs to be on a budget. If you have any type of income and expenses you need to utilize a budget. Your net worth and income level do not matter. We all benefit from the discipline that comes from working on a budget.
I don’t have a set income. I work on commissions. Will My Budget BoxTM still work for me?
The main ideas of My Budget Box™ will still work for you. Start with listing your fixed expenses and completing Worksheet A. This will give you an idea of the minimum you need to earn monthly on commissions. In order to decide the amount to budget for your variable expenses, you can do one of several things. You can think about what you typically earn in a month and use that as your monthly total to determine the amount you have to spend in your variable categories. Or you can think about the least likely you will earn in a month and use that as your monthly total. In those months that you earn more than the total of your fixed and variable expenses, set aside the extra to make up for those months in which you earn less than the total of your fixed and variables expenses.
I am already in debt; can I still use this system?
Yes. In fact, this program will teach you to get a handle on your expenses and can help you to get out of debt more quickly. The best thing to do is to include paying off your debt as part of your fixed expenses. You may want to consider contacting a debt consolidation company (we have several reliable companies listed on our Financial Resources page so that you will only be making one monthly payment.
My family and I want to save for a summer vacation. How can I put that into this system?
There are several ways you can incorporate saving for something special (e.g., a family vacation, a new car, Christmas gifts, etc.) in this system. First, you need to decide how much you want to save and by what specific date. For example, let’s say you start the My Budget Box™ January 1 and want to save $2,500 by July 1 for a family vacation. That means you have six months to save $2,500. $2,500 divided by 6 is approximately $420 a month. If you can afford that much, you can simply make one of your fixed expenses “savings for vacation” and set it at $420 per month. If you cannot afford to set aside that amount per month, you may have to give yourself until the following summer (so 18 months of saving instead of 6) or choose a less expensive vacation ($1,200 instead of $2,500 so that you only have to budget $200 per month).
A second method can be used when you don’t have a specific time line or a specific amount needed. For example, let’s say you are unable to set aside a specific amount each month for your vacation because your budget is already stretched to the limit. What you can do instead is select one or more of your variable categories to be “non-roll over” categories. In other words, for these categories, if you come under budget (i.e., if you have money left over in these categories at the end of the month) rather than transferring that amount to the next month, take the left over amount and put it in a “Goal” pocket (e.g., a travel account). Once that account has built up to a sufficient amount, you can then take it out and use it for what you have been saving (i.e., travel, Christmas, etc.). It is best to select categories for “non-roll over” that you are not likely to need to build up. For example, you may want your medical category to build up in case of emergencies. You may not be concerned with building up your dining out and entertainment categories, so you can “roll over” the remaining amounts (if any) at the end of the month to your “Goal” pocket.
What do I do if I get a raise?
One of the benefits of using My Budget Box™ is that it is easily modified. Thus, if you get a raise, you simply redo worksheet A with your new amount for monthly take home pay. This will mean that the amount of money you have to assign to your variable expense categories will be more. You will have to decide if there are certain categories you want to increase, if you want to increase all categories by the same amount, or if you want to put more into a specific category (e.g., savings).
Another possibility is to increase the amount of one of your fixed expenses. For example, if you are paying off credit cards, you may want to increase the monthly payment on your card by the amount of your monthly pay raise. Or if you have as one of your fixed expenses a special item that you are saving for (e.g., family vacation), you can increase the amount you are putting aside for that.
You may also want to use a combination of the above two approaches. That is, you may want to increase one or more of your fixed expenses, but not enough that it takes the total amount of your pay raise. Instead, any extra can be put toward one or more of your variable expenses in addition to what you have added to the fixed expenses.
What do I do if I get a pay cut?
The first step is to re-do Worksheet A. Although your fixed expenses will remain the same, your total monthly income will have decreased, so the total you can spend on your variable expenses (i.e., line c from Worksheet A) will be reduced. You will then need to re-do your variable expense budget cutting down certain categories to account for the decreased amount you have to spend on these categories (i.e., line c from Worksheet A will be less then it was).
What happens if I have an unexpected expense that I don’t have enough money to cover?
You will have to make up the amount over several months. For example, let’s say that you have budgeted $20 a month in medical, hoping that this amount will build up over time and before you have to use it. In the first month, however, you become sick enough that you have to go the doctor. Your insurance co-pay is $25, but you have only budgeted $20 for this month. Pay the doctor the $20 you have budgeted and ask them to bill you for the remaining $5. The next month, you will pay the $5 bill and still have $15 left in that category.
We will be adding additional FAQs to this page from time to time, so check back regularly and/or submit your own questions by contacting us.
My Budget BoxTM is different because it is "hands on" and cash focused. Once you receive My Budget BoxTM via UPS and open the box, everything you need to start immediately is at your fingertips. It is simple and easy to use. There are no computer programs to load and learn to use. No need to turn your computer on and wait for it to load, then open a program and wait for it to load and then input all your information into a stagnant spreadsheet. With My Budget BoxTM you are actively engaged in managing your money!
Why do you place an emphasis on the cash aspect of budgeting?
With the world economies, as well as our own, in turmoil, it is imperative that families get a grip on their debt and spending. The best way to do this is through CASH management. With the direction our economy is headed, credit tightening daily and banks failing at a record pace, cash will be more important than ever. NOW IS THE TIME to learn to use and manage your cash.
Why do I keep hearing so much about debt-free living?
If we are realistic and honest about where our economy is headed, we will understand that the days of free spending and easy credit are over. Banks are failing at a record pace and credit is tightening daily. Interest rates on unsecured debt has skyrocketed and you need to protect yourself and your family from these problems.
How can My Budget BoxTM help me to be debt free?
It will help you focus on your spending habits and adjust them to fit your available resources. By identifying problem spending areas you can redirect funds that were previously wasted to reducing debt. By gaining control of your spending you can curb your dependence on credit and begin to eliminate it from your life.
I always thought living on a budget would be confining, but your customers keep talking about how freeing it is--how can that be?
Actually, having and sticking to a budget is a very freeing experience. By knowing at any given time how much money you have to spend on items, you can make more informed and controlled decisions on purchases. When you know you have the money for something you can buy it and not feel guilty or worry if you made a poor decision. By taking the guesswork and worry from your spending habits you can have greater peace of mind and freedom.
Who should be on a budget?
Anyone who is responsible for managing cash flow in a home or business needs to be on a budget. If you have any type of income and expenses you need to utilize a budget. Your net worth and income level do not matter. We all benefit from the discipline that comes from working on a budget.
I don’t have a set income. I work on commissions. Will My Budget BoxTM still work for me?
The main ideas of My Budget Box™ will still work for you. Start with listing your fixed expenses and completing Worksheet A. This will give you an idea of the minimum you need to earn monthly on commissions. In order to decide the amount to budget for your variable expenses, you can do one of several things. You can think about what you typically earn in a month and use that as your monthly total to determine the amount you have to spend in your variable categories. Or you can think about the least likely you will earn in a month and use that as your monthly total. In those months that you earn more than the total of your fixed and variable expenses, set aside the extra to make up for those months in which you earn less than the total of your fixed and variables expenses.
I am already in debt; can I still use this system?
Yes. In fact, this program will teach you to get a handle on your expenses and can help you to get out of debt more quickly. The best thing to do is to include paying off your debt as part of your fixed expenses. You may want to consider contacting a debt consolidation company (we have several reliable companies listed on our Financial Resources page so that you will only be making one monthly payment.
My family and I want to save for a summer vacation. How can I put that into this system?
There are several ways you can incorporate saving for something special (e.g., a family vacation, a new car, Christmas gifts, etc.) in this system. First, you need to decide how much you want to save and by what specific date. For example, let’s say you start the My Budget Box™ January 1 and want to save $2,500 by July 1 for a family vacation. That means you have six months to save $2,500. $2,500 divided by 6 is approximately $420 a month. If you can afford that much, you can simply make one of your fixed expenses “savings for vacation” and set it at $420 per month. If you cannot afford to set aside that amount per month, you may have to give yourself until the following summer (so 18 months of saving instead of 6) or choose a less expensive vacation ($1,200 instead of $2,500 so that you only have to budget $200 per month).
A second method can be used when you don’t have a specific time line or a specific amount needed. For example, let’s say you are unable to set aside a specific amount each month for your vacation because your budget is already stretched to the limit. What you can do instead is select one or more of your variable categories to be “non-roll over” categories. In other words, for these categories, if you come under budget (i.e., if you have money left over in these categories at the end of the month) rather than transferring that amount to the next month, take the left over amount and put it in a “Goal” pocket (e.g., a travel account). Once that account has built up to a sufficient amount, you can then take it out and use it for what you have been saving (i.e., travel, Christmas, etc.). It is best to select categories for “non-roll over” that you are not likely to need to build up. For example, you may want your medical category to build up in case of emergencies. You may not be concerned with building up your dining out and entertainment categories, so you can “roll over” the remaining amounts (if any) at the end of the month to your “Goal” pocket.
What do I do if I get a raise?
One of the benefits of using My Budget Box™ is that it is easily modified. Thus, if you get a raise, you simply redo worksheet A with your new amount for monthly take home pay. This will mean that the amount of money you have to assign to your variable expense categories will be more. You will have to decide if there are certain categories you want to increase, if you want to increase all categories by the same amount, or if you want to put more into a specific category (e.g., savings).
Another possibility is to increase the amount of one of your fixed expenses. For example, if you are paying off credit cards, you may want to increase the monthly payment on your card by the amount of your monthly pay raise. Or if you have as one of your fixed expenses a special item that you are saving for (e.g., family vacation), you can increase the amount you are putting aside for that.
You may also want to use a combination of the above two approaches. That is, you may want to increase one or more of your fixed expenses, but not enough that it takes the total amount of your pay raise. Instead, any extra can be put toward one or more of your variable expenses in addition to what you have added to the fixed expenses.
What do I do if I get a pay cut?
The first step is to re-do Worksheet A. Although your fixed expenses will remain the same, your total monthly income will have decreased, so the total you can spend on your variable expenses (i.e., line c from Worksheet A) will be reduced. You will then need to re-do your variable expense budget cutting down certain categories to account for the decreased amount you have to spend on these categories (i.e., line c from Worksheet A will be less then it was).
What happens if I have an unexpected expense that I don’t have enough money to cover?
You will have to make up the amount over several months. For example, let’s say that you have budgeted $20 a month in medical, hoping that this amount will build up over time and before you have to use it. In the first month, however, you become sick enough that you have to go the doctor. Your insurance co-pay is $25, but you have only budgeted $20 for this month. Pay the doctor the $20 you have budgeted and ask them to bill you for the remaining $5. The next month, you will pay the $5 bill and still have $15 left in that category.
We will be adding additional FAQs to this page from time to time, so check back regularly and/or submit your own questions by contacting us.
