Two weeks ago, I ended my three month hiatus from exercising.  I have one word to say:  OUCH!  My specific workout is a four day split.  On Mondays and Thursdays I work upper body while on Tuesdays and Fridays my bird-like legs take a beating.  My muscles haven’t been this sore in my life.  Everything hurts.   I can barely sit down because of the squats.  As John Witherspoon says in the 1992 romantic-comedy classic Boomerang, from the roota to the toota.  In case you didn’t feel me, everything hurts!  I know I said that before but ya’ll just don’t know.  Or maybe you do!  One thing is for sure.  Upon my return to the gym, I discovered some parallels between fitness, wellness and personal finance. 

First, realization of a problem.  Ok, your clothes don’t seem to fit like they used to.  Or you seem to be out of breath after a short walk.  Instances such as these bring to your mind that something needs to be done.  Changes in diet and increases in conditioning seem to be a need.  The same is with personal finance.  You run out of month at the end of your money.  It seems that you have to rob Peter to pay Paul.  When you get tired enough of that, then you’ll decide to make a change in plans.

Second, both take dedication.  How easy is it for us to sporadically go to the gym or yo-yo diet?  It’s very easy.  But the folks who win physically are those that stick to it no matter what.  Sure, beginning your program will take an adjustment period (just like my muscles are sore today).  But once you get going, it’ll become a way of life.  Those of us who struggle with our money find it hard to either stick to or begin a budget, for example.  But once you truly dedicate your mind and time to creating a plan financially fit for you.

Third, establishing goals is very important.  Before I begin my exercise, I have goals I want to acheive.  Short-term and long-term goals help me reach for something instead of haphazardly going to the gym.  For example, I strive to increase the weight I lift each week (short-term goal).  My long-term goal is to have something that resembles a six-pack.  Financially, I have goals as well.  I have an amount that I want to pay on my debt each month  (short-term) and my long-term goal is to be debt-free.  By establishing these goals, it rids my mind of the feeling that all the work and energy I put into my finance is in vein.

Fourth, track your progress.  I often go to the gym and see people working very hard on their bodies.  But I rarely see them write down what exercise they did and how much weight they used.  That is important for me to do.  It helps me see how far I’ve come since I began my exercise program.  WIth debt, I think it’s helpful for you to track how much you’ve paid off.  For example, as you look at my sidebar on this site, it has a bar graph showing how far I’ve come.  But even before starting this site, I had something very similar displayed on my refrigerator.  It keeps me motivated and when I become discouraged, I have a reminder of the progress I’ve made.

For our physical and financial health, it just takes that first step to a better you.  What are your thoughts?  Feel free to share in the comment section. 

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Those days for me are now over. Since we’ve been dedicated to breaking the shackles of our debt, we’ve taken advantage of the envelope system.

How does it work?
Well, my wife and I identify several categories within our budget. Those include:

House Fund
Grooming
Groceries
Blow Money
Entertainment
Miscellaneous
Gas

At the beginning of each month, we approximate how much we would spend on each categories. For example, we know we spend about $250 a month on groceries. So instead of randomly spending in {insert your favorite grocery store}, we purposly allocate cash for that expense. This does a couple of things:

1. It keeps us from throwing everything in our cart. How often do you go to the store to pick up one or two things, and end up with a cart full of crap?

2. It makes us plan our meals. We go to the store with a list for preplanned meals. Most times, they are healthier and last longer for us.

The same can be applied for each of our other categories. Below is what we include in our envelope categories

House Fund
The house fund is used for interior and exterior house needs. For example, while edging my grass the other day, I realized I needed some spool from Home Depot. Bam!!! House Fund is used.

Grooming
We use grooming for items such as dry cleaning, hair (I cut my own now), nails, etc.

Groceries
See explanation above.

Blow Money
This category is key to debt repayment. Instead of just buying that golf club I like so much with the credit or debit card, each person has their own “blow money” that they can spend on whatever they want. Want drinks with friends at happy hour? Fine. But that’s a blow money expense.

Entertainment
This is pretty self-explanatory. Movies, theme parks, plays, etc.

Miscellaneous
I don’t know about your house, but in mine we always have random stuff that pops up. It’s not emergencies, but it’s always something. Forgot to buy someone a birthday gift, need to mail a package or something. This fund always comes in handy

Gas
This is for each person’s automobile gas. We’ve really had to increase our contributions to this since gas prices have increased.

A key note to remember about the envelope system is not to cheat. By that, I mean once the money in that envelope is gone, it’s gone baby! Don’t spend all of your blow money and then buy something for yourself with your debit, credit cards or take from other envelopes. That’s defeating the purpose. This instills control, responsibility and makes you think systematically about each and every purchase.

What are your thoughts about this system? Feel free to share.

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In business, while trying to increase business, a plan outlined with goals, objectives, strategies and tactics is created. That plan serves as a roadmap to reaching company- goals and objectives. It tells what’s to be done, how and by whom. Thus, the ongoing evaluation of whether the team is on the right track with those stated goals is what can measure accountability.

Our personal lives can be just like that business plan. Having someone to be held accountable to is always a good thing. Whether it be finances, career-related or just a new hobby you are trying to pick up, that person who can call you out may be just the thing you need to remain focused. But be careful not to select someone who will not be honest with you. The last thing you need here is an enabler.

I like the idea of having a support group to assist with your progression. As many people as we come in contact with, there are probably some who are trying to achieve the same things we are. So why not turn happy hour or a trip to the club into a productive idea-exchange. It doesn’t have to be fancy. Meeting at someone’s house, a library or a restaurant can be easily done with minimal fuss.

Do you have a support system? Feel free to share.

Debt note: Today, $608.18 was sent to student loan #1.

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