Today, working with a sponsee and it reminded me of a story about my vagueness around my finances. Meagan and I were both entrepreneurs and both had our own separate businesses, our financial advisor recommended that we agree to a set amount each month to take out as owner’s draw. He said that if we have two variable incomes due to the ups and downs of sales revenue and expenses from the two different businesses, there needs to be ONE thing in life that is steady.
That steady thing is an agreed upon amount that we both were to contribute to a joint account each month. So, on the set, same day each month, both of us were to have an automatic draft that occurred and transferred the money from our two separate business accounts into a joint checking account. This joint account is the checking account in which we were to pay our house bill, groceries, water, power, internet, and any other joint, family expenses.
This steady amount of ‘family income’ was to allow us to create a ‘spending plan’ (…he used the word ‘budget’ at that time) for how we were going to spend our money out of that checking account. Sounds pretty basic right? Well, I intentially was vague about money because I didn’t want tracked how much I was spending on acting out in all the wrong ways. I withdrew huge amount of cash, paid workers in cash, and charged to credit cards knowing that I would pay them off just as soon as I got paid from the next big deal.
I was told that if we didn’t contribute a set amount into a joint account from our businesses, then otherwise, there was no way that we could attempt to save together, pay off debt in a systematic way together, plan out money for certain occasions together for trips or to just manage cash flow together day-to-day without going further into debt.
At the time, our money was all over the place. There was so much vagueness in all areas of our finances that I had no idea how much I spent in ANY category, much less be able to project my income.
Today, everything is different. I have an income plan, a spending plan with factual data going back with more than 9 months with averages in each spending category and subcategory based on trends. I know how much I spend on average in each of the categories, each month. I have a plan, which I am ready to implement starting the repaying of some old debt from my solar business…once my sponsor and I get to that step, the 9th Step.
I have a savings and asset accumulation plan with each of the goals that we want to achieve or envision together as a family. Each of those ‘savings’ accounts and assets that we are saving for have clear dollar amounts of money that would be ‘ideal’ to have for each item so that we are clear just how much money we need to save to make that vision and goal come true.
Today, I could add up my net worth in a matter of minutes, just based on as much time as it takes to check the current balances of a few website accounts and put it those figures (house remaining balance, current house value, Maddie’s 529 college fund, Roth IRAs, 401K, and the updated checking and savings accounts) into the corresponding cells on my Personal Financial Statement (PFS). This PFS shows very clearly an instant snapshot of Assets – Liabilities = Net worth. I like to update this on a regular basis and track the net worth going up the longer I work this program to the best of my ability.
This is clarity and today, I am grateful for my Higher Power, D.A. and all of the other 12 step recovery programs for the blessing of a clear, sober and solvent mind. No more fog, no more lies, no more stealing, no more manipulation, no more vagueness…just for today please God.
