Let’s Start With My 2025 Budget Panic Story…

At the beginning of 2025, just weeks after having Vance, I hit a breaking point with my business finances. After crushing my goals in 2022-2023, 2024 felt like a losing streak. I’d missed almost all my ambitious targets, and for two straight months postpartum, I had no idea what we’d spent.

I spiraled. I was convinced we were drowning and even researched going back to a 9-to-5. As in I typed my skill set, schedule preferences, and a million other things into ChatGPT for it to spit me out some job ideas to apply for. Yikes.

What pulled me out? I sat down and did the numbers.

I wrote out three spending categories:

1. Essentials – tithe, mortgage, utilities, groceries, gas, childcare, insurance
2. Things we could cut if necessary – internet, streaming services, Roth IRAs, 529 plans
3. Extras we’d eliminate first – restaurants, fun money, lawn care, miscellaneous

The result? We were fine.

When I calculated our combined income minus monthly essential expenses, we had margin. Would we have to cut back if my business made zero dollars? Yes. But could we survive on Erik’s salary alone? Also yes.

Even my “disaster” business year broke even with the year before. I just hadn’t met my 2024 goals. But without running out the numbers and stating the FACTS of our situation I was spiraling.

The moral: Knowing where your money is going equals freedom.

FACTS ARE OUR FRIENDS.

Dave Ramsey says, “Tell your money where to go instead of wondering where it went.” For those two months, I’d been wondering. No wonder I felt doomed.

Our Family Budget System

Erik and I use the EveryDollar app ($79.99 / year for premium), which uses zero-based budgeting. Every dollar that enters your account each month has a purpose before the month starts.

The 6-Step Process:

STEP 1: Input Your Income

• Erik’s W2 paycheck
• My self-employment income

STEP 2: Budget Giving & Savings FIRST

• 10% tithe to church
• Monthly savings goal (I manually create this transaction so the money is “spoken for”)
• This ensures you don’t spend it elsewhere

STEP 3: Budget Bills & Subscriptions

• Mortgage
• Utilities (gas, water, power)
• Internet, streaming services
• Daycare
• All recurring expenses

STEP 4: Budget Investments

• Individual Roth IRAs
• 529 plans for both kids

STEP 5: Account for Sinking Funds

• Annual expenses like auto and life insurance
• Divide the annual total by 12 and save monthly
• Create manual transactions so the money is set aside vs easy to spend

STEP 6: Budget Spending Categories

• Groceries
• Gas
• Lawn care
• Restaurants
• Fun money (Erik and I each get personal spending money)
• Miscellaneous (the black hole category for unplanned expenses)

What If You’re Over Budget?

The app shows you in bright red if you’re overspending. Where do we personally cut back?

• Groceries
• Restaurants
• Fun money
• Lawn care
• House cleaning
• Car wash membership
• Date nights / babysitter

The Car Payment Game-Changer

Erik and I don’t have car payments. The typical US household pays $532-$748 / month.

Here’s the math: If you invested $532 / month into a Roth IRA from ages 30-65, it would be approximately $2 million at retirement. The $748 / month would be $2.84 million.

Until I got my Kia Telluride, I drove a 2003 Lexus we bought for $5k cash. Erik rotated between that Lexus and a 2007 Honda Pilot. Selling a car with a payment and buying a cheap car in cash is the easiest way to add margin to your budget TODAY.

Why This System Works

Two beautiful things about this approach:

1. It removes guilt from spending – If it’s in the budget and accounted for, spend without stress
2. It gives you peace – Even if the numbers are scary, at least you know

No more wondering where your money went.

The Macro Tracking Parallel

There are incredible parallels between budgeting and tracking macros:

• You’re planning ahead
• Being intentional
• Working within parameters you’ve set

It creates freedom, not restriction.

A budget tells your money where to go before the month starts. Planning your meals in advance tells your macros where to go.

Clarity brings peace. Action alleviates anxiety.

When you have a plan and you’re working within intentional boundaries, you actually experience more freedom, not less.

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Tell your money where to go. Small steps can pull you out of the spiral.

Now go check your bank account and make a plan. You’ll sleep better, I promise.

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Try the EveryDollar App free for your first month HERE