Nothing Left Over

I had a wonderful chat with a young couple yesterday. They are an awesome young couple, but I'm biased. One of the spouses is a former youth group kid; I've known her since she was 15. Therefore, it's safe to say I'm tremendously honored to spend time with her now that she and her husband are living their full-on adult lives.

It was a similar conversation I've had with hundreds of couples. And just like every other time I have this chat, there's one part that stands out like a sore thumb: When I discuss the concept of having no income left over at the end of the month. If a couple starts the month with $4,000 of cash sitting in their checking account and has $7,000 of income coming in, they should end the month with $4,000 of cash sitting in their checking account. None of their income should be left over. All of it should be gone.

Here's why. We humans don't do well with "extra." Extra either gets squandered or hoarded, rarely an in-between. If there's extra, we'll impulsively spend it somewhere we didn't intend, or we'll squirrel it away for no specific purpose (which subconsciously incentivizes us to repeat and grow that behavior next time).

Here's how this could/should manifest itself in our monthly finances. Every dollar should have a home. We spend it, give it, or save it. If we get to the end of our budget and there's $500 left, we must go back up and find a place to spend it, give it, or save it. No dollar left behind!

I don't even care what people do with this extra money, so long as they are intentional about its destination. This one principle can revolutionize the way we perceive and handle money. Every bit of our income now has a purpose. Intentionality runs through our entire budget. The most important categories get love, not the most impulsive ones. This allows our personal values to shine through and become truly prioritized in our monthly finances. Things that should get funded actually get funded. Things that shouldn't, don't. It's simple. It's pure.

I started following this principle more than 20 years ago, and after teaching it to hundreds of families, I can positively testify that it's a real game-changer. Something to consider adding to your arsenal. Have an awesome day!

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