Free Debt-Free Forever by Gail Vaz-Oxlade Page B

your budget monthly and set aside some money for when the roof starts to leak. And if you’re self-employed or working on a contract basis, you should also be setting aside the taxes you’re going to have to come up with come tax time. There are Internet tax calculators that will automatically calculate the tax you’ll likely owe when you enter your income and province of residence. Whateveramount the calculator comes up with, divide by 12 and set that amount aside every month so you can stay on the right side of the Tax Man.
    You may be able to wear your jeans until the bum is bare, but the kids will outgrow their clothes before they wear them out, so you should have some money budgeted for them on a monthly basis. Look at how much you spent last year, divide by 12, and use that as your monthly amount for your budget. Pet care costs are predictable until Poochie gets sick. If you don’t have pet insurance, then you should have a little set aside monthly in your budget for your inevitable trip to the vet. The amount you set aside will be dependent on the type of critter you own. (Pure breeds cost more, and some four-legged friends are more susceptible to certain illnesses than others.) Ask your vet what he or she thinks is a reasonable amount you’ll likely have to spend on Fido this year.
    Don’t forget medical costs. Yes, I know we have universal medical coverage, but not everything is paid for, no matter how “universal” it is. So if you aren’t budgeting for things like glasses, the dentist, cold medicine and painkillers, and all the other stuff you’ll end up buying, you’re bound to run into some “unexpected expenses.”
GAIL’S TIPS
    In January, start setting aside the money you’ll need for the next holiday season. It’s much easier to save $100 a month than to come up with the $1,200 all atonce. A little bit at a time means the money is there at the ready when it’s time to shop for seasonal gifts.
Working Together on the Budget
    One of the big benefits of a budget is the fact that it becomes the reason why you do or don’t do things. Yes, you can make the budget the bad guy. The budget becomes the control point. If you’re trying to cut your expenses, it’s easy to get upset with a partner who seems to be spending too much. But do a budget together, and if either of you can’t buy that thing you want it’s because “It’s Not in the Budget.” You’re not monitoring each other anymore. The budget becomes the monitor. And since you both agreed on the budget, getting upset with each other doesn’t make much sense.
    This works. It’s one of the reasons the people I work with see so much change by the time I’m ready to say buh-bye. As an outside force, they now have someone else to blame for why they can’t spend: me. By the time I’m done, they’re in the habit of checking with the budget before making a spending decision, so they’ve created their own inside force.
    I’ve watched people’s lives change significantly because they’ve implemented a budget and have control over where their money is going. I’ve watched their relationships change as they move from being a “parent and child”—as in, “you can’t buy that” or “you’re spending too much money”—to two adults sharing responsibility for their family’s financial health. It works if you do it right. So take the time and see for yourself.
    Remember, your budget will require some fine tuning, likea musical instrument, to get it just right. Let it evolve to meet your changing needs.
    It’s a good idea to review your budget at least twice a year. Look at where your money went and what you didn’t notice while it was happening to you (like bank charges that snuck up, up, up). Make conscious decisions about what you’re going to do differently, how you’re going to live differently, and what you want from your life.
    So often we sleepwalk through our lives, completing tasks by routine, keeping on keeping on. We