Dave – If keeping track of your money is important to get out of debt and to stay out of debt and build wealth, one thing you have to start doing his budgeting. Making your money behave is easier than ever when you use the free budgeting tool you’ve made available called Every Dollar. — Thad
This may not sound like much fun, but for math nerds or people who just are interested in keeping track of where the money’s going or where it should be going, it’s actually pretty easy.
You don’t have to have an app but Dave Ramsey and his crew have made it super easy to budget using their free app Every Dollar.
With Every Dollar, you can create a budget in about 10 minutes or 15 minutes worth of time, and then be able to track your spending based on the budget that you actually prepare. Preparing ahead of time to think about where your money’s going to be going is actually at the heart of succeeding with money, staying out of debt, and actually building wealth.
We learn a lot about ourselves as we set about building our own family sense of money or wealth. And as can be seen in so many American’s lives it’s really easy to not have any money available. It’s easy to be in debt in other words.
We are all victims of the same advertising campaigns. We are captured by the attraction of having to “have it now”, to never wait. But this addiction to immediate gratification comes with a price. And the price is called debt.
With Every Dollar, the free app made available by the Dave Ramsey organization, it is not only easy to prepare ahead of time to tell your money where it should go, it’s also easy to actually know where it is gone and how much you have remaining before the next pay period.
In our family, we get paid twice per month, and initially, I thought that was going to be rather difficult to make this work with the Every Dollar app.. This is because the budget that’s prepared via the app assumes a monthly budget. This is actually a good thing. While many are paid twice monthly, most of our bills come once per month.
When you set your budget up in Every Dollar you’re asked to input where your income will come from. What I typically do is set up an entry for my first paycheck each month and my wife’s first paycheck each month. Then I put an entry for the second paycheck, and then her second paycheck. The income side of the budget is always available…and though you enter what you expect to receive ahead of time, you do have to remember to record what actually comes in when you are paid.
What that allows us to do is to see the totality of our income. We have a few other odd income sources, and they are included in the monthly budget as well. One feature that is available that is very nice is the ability to use both the app on a smartphone, whether it be an iPhone or an Android device. But you can also use the Web app as found just at everydollar.com.
You can also set up sinking funds, those are the kinds of funds that need to grow from month-to-month whether it be for something like “repairs or incidental repairs around the home, but also it can be used for longer-term savings goals as well.
You do have to actually enter your expenses in the app, and given that in the Ramsey solutions school there tends to be a reliance upon cash the thing you’ll need to remember is that every cash transaction you need to either retain a receipt so that you can make the entry later in the day or actually recorded on your mobile at a given point in time when you actually spend some money.
There is a premium feature on the Every Dollar app, which enables you to for a nine dollar fee connect to your debit card accounts at one or more banks. This is a premium feature and is not free to the Ramsey organization so they do have to charge for it. My only complaint with the premium function which I have not used and do not use because I find it easy enough to even record what I spend via a debit card is the fact that in order to use their premium feature you actually have to pay for a full year ahead of time. I understand why that is it certainly makes it easier for their company.