Red Flags

During a recent interview, the hiring manager handed me a book called The Toyota Way by Jeffrey Liker. The book presents value as a stream rather than discrete points. Value derives from how much any given step moves you towards the goal. Wasting time faster reduces cost, and doesn't add value.

In Thou Shall Prosper, Rabbi Daniel Lapin highlights the spiritual nature of value. If you put these two together, then we can see that value comes from the spiritual flow of something (parts, information, etc.) from one person to another. People are the most important part of the stream! The greatest gains come from an investment in people. Change people, and the rest follows.

Dr. Liker then explains how Toyota's just in time production. Just in time means making parts just as the next step needs them. You don't build up huge inventories of parts laying around taking up space. So what happens when a machine breaks? The entire production process halts.

Imagine how much that costs? The entire production of a Toyota car stops when a ten cent fuse goes out. The obvious answer, of course, is build up some inventory to keep the rest of the line moving while you fix the errant machine. Obvious, and wrong.

The manager of a Toyota plant has an incentive for preventive maintenance. Something in the electronics blew the fuse. If he just replaces the fuse, that same machine will break down again in a day or two. And it will continue ad infinitum. The cost is down time, parts, and labor every two days for the next three years. That comes to 16,425 minutes.

Now imagine that he spends two hours fixing the broken electronics - eliminating the short. The cost is two hours down time, parts, and labor. That's it. 120 minutes versus 16,425 - which costs less?

Solve the Problem

A huge inventory hides the true cost of the down machine. Just in time forces you to confront the cost face first. In Good to Great, Jim Collins promotes red flags. They signal a problem. And you can't simply dismiss them.

Red flags hurt. Red flags cause pain. Ignoring them costs far more than solving the problem. Just in time creates a red flag. Problems simply can't fester because they'll kill you first. Consequently, you fix them. Even better, you have a measurable way of justifying the right decision. That same red flag hurts your boss too. You help them by solving the problem instead of hiding it.

So how does all of this apply to software development? It's a core tenet of iterative programming. You don't push around an inventory of nuts and bolts. Our inventory is a bit more ephemeral, yet just as real - code. The iterations create red flag moments. When the client says "that wasn't quite what I had in mind," it's a red flag. Plotting progress every day is a red flag.

Iterative development promotes public accountability. Our cost is not in minutes or down time. It's in pride and merit. When a task turns out harder than I expected, that's embarrassing. Red flag. And I don't want it to happen again. The red flag makes me want to fix the problem - otherwise it will happen again.

Why Literate Programming?

Several years ago, looking for an outline editor, I stumbled across Leo. I was a proponent of comments, comments, comments. I used this really cool - and long - template at the start of every subroutine. Spell out every variable, its purpose, and how it arrived (global, parameter, or local). Describe the return value in exquisite detail. Establish draconian coding standards and follow them to the letter. If everyone writes code like me, then we won't have this lump of spaghetti.

Boy was I wrong! Leo talks about this notion of literate programming. We read books all of the time. Why is so source code so much more difficult to read? What if we wrote code like a book?

Source code is fundamentally hard to read because we write it for the computer. Read the line again - I'll wait. Did you get that? Did you really, really get that? The structure of my code, the order of instructions, everything focuses on how the computer works. No wonder a human being has trouble - they're not a computer.

100 MPH in the Wrong Direction

Coding standards, comment blocks, and language constructs utterly fail at producing readable code. These solutions ignore the fundamental problem - we're trying to write the same thing for two completely different audiences. Imagine a classroom with PhD candidates and kindergartners. Now explain how to draw a landscape - to both groups - at the same time. Not a very successful lecture.

Source code faces the same dichotomy. Humans and computers simply do not think alike. Computers require very precise, very specific instructions. They have almost no attention span. And can never grasp the big picture. In short, computers are kindergartners.

A human, on the other hand, likes the big picture. We understand our world by association. How things fit together gives as much or more information as the thing itself. When one piece of code relates with another, that has meaning to us. The code that sets a verbose flag belongs with the code that prints the verbose messages.

To the computer, sequence matters. To a human, relationship matters. And quite often, these two views are diametrically opposed. Who wins? The computer. Because the computer ultimately runs the software. If it can't understand the source, then you do not achieve your goal. Human comprehension takes a back seat.

Then it breaks. Two years later, kapow! The client is screaming. You're sleep deprived. And after mopping up the mess, you think how can I avoid this every happening again. When debugging, human comprehension matters more.

All of this to say - we code for two audiences because we have two audiences.

Full Circle

Literate programming recognizes and solves this exact problem. You write and format code for a human audience. Then tell the computer how to reformat that same code for itself.

The language compiler translates English into machine codes. Literate programming tools translate human structure into computer sequence. You target both audiences, without redundancy.

Distribution of Wealth

No doubt about it, these are difficult times. Record unemployment. Bonuses for executives in bailed out companies. Lay offs. And a taxing burden on unemployment funds. Underlying much of the reporting is the undertone that rich people should provide for the poor.

We're confusing two separate issues: inequality and injustice.

You and me, we're all the same

The Bible assumes an unequal distribution of wealth. It's not a bad thing. Put down those pitch forks. Hear me out for a minute.

Genesis 47 tells about a famine in Egypt. The Egyptians sold their land and animals to Pharaoh for food. The Israelites, on the other hand, acquired property and prospered. Sounds a bit unequal.

In the book of Joshua (around chapter 13), God divides the land among the twelve tribes - in different amounts. Deuteronomy 21:15-17 recognizes the practice of the firstborn inheriting a double portion after the father's death. Is this equality?

God blessed Abraham with wealth. God blessed Israel in Egypt with wealth. God blessed Solomon with wealth. God distributes wealth.

Thieves, embezzlers, and villains

Injustice also occurs. People lie, steal, and cheat. They defraud investors. Embezzle from pension funds. Loan money with outrageous interest to people they know cannot pay. Yes, there are businesses that oppress the poor.

Likewise, there are businesses who provide a safe, clean working environment. They pay fair wages for a day's work. And they offer opportunities for bettering yourself.

Walk through your neighborhood. Guess what, some of your neighbors steal. So do you hate all of your neighbors? Crooks exist. Some crooks are rich. Some are poor. Money does not determine injustice. Injustice reflects who these people are - not what they have.

The Bible clearly speaks out against injustice. Proverbs 14:31 says the oppressor shows contempt for God. Proverbs 22:16 reveals the end of the oppressor - he comes to poverty. God decries injustice.

Redistributing wealth

Redistributing wealth fixes inequality, not injustice. Inequality isn't a problem. Injustice is the problem. So why do we rush to redistribute wealth?

We're selfish. That's our sin nature. Why should that guy have plenty of money when I'm struggling to make ends meet? I'm afraid. And in that fear, I take something that does not belong to me. I created even more injustice. I made the problem worse.

The Year of Jubilee

In the Year of Jubliee, land in Israel reverted back to its original owner. All debts were forgiven. Sounds great, right? Run up as much debt as you want and poof - it goes away. I hate to say it, Jubilee helps the creditor more than the borrower.

Proverbs 22:7 says the borrower is servant to the lender. Imagine eating lunch with a friend. Can they pay you back later for the meal? This was a nice lunch, so it ran about $20. You agree. Three weeks later and no money. You ask once. They say sure, just a few more days. They start avoiding you. Depending on how much you need the $20, you start avoiding them. The relationship changed.

Now imagine loaning $50,000 to a neighbor. This is exactly what your bank does with a mortgage. When the borrower pays, everything works well. When payment is late, the relationship goes south. Enough bad relationships, and you get a bad reputation. Can you afford to lose $50,000?

Step back to your lunch again. Instead of just agreeing to pay later, you tell your friend yes. And if you don't get the money in 30 days then it's a gift. How does that affect you? You already let go of the $20. That money is as good as gone. You don't need to ask about it. There is no sense of dread when looking at that person. You gave them the money, and that is that.

Jubilee created that mind set on a large scale. The creditor was smart. He stood to lose all of his money. And he entered the contract knowing that would happen. You could help a neighbor financially without the risk of life long alienation. Jubilee did not re-distribute wealth. It changed the creditor's behavior.

Do as I do

And there lies the key. Finances is not about money. It's about behavior. Because what we do reflects who we are.

Taking money from one person and throwing it at another does nothing for their behavior - giver or receiver. And so it solves nothing. This is why charitable giving always does more good than government. Because the giver changed their behavior. It can also inspire the receiver to change theirs.

Yes, God calls us to give. Yes, we should reach out with monetary gifts to those in need. And we do that because we love them. Change your behavior, not your tax structure.

In The Storm

Walked into work one morning, just like every other day. A director comes by the office and asks to speak. The company has eliminated my position. In just a few seconds, life changes. You probably know exactly how this feels. It's a common story today.

I talk quite a lot about budgets. But what does your budget look like when the income screeches to a halt?

Normally, we employ a zero based budget. It's a little different in a storm. We're living off of our savings. So let's start with the expenses instead. List your necessities: groceries, house payment, electricity, phone, water, car insurance, clothes, etc. Don't worry about setting money aside little by little for lump sums. Focus only on what you need this month.

Total all of the expenses. You need that much from your savings. This also gives you an idea of how far those savings can stretch.

Now cut and slash that budget. Can you get by on less? How about more staples (like rice and beans) instead of meat? Eating out stops. Necessities, necessities, necessities. Focus on the four walls. Everything else can wait. The storm should bring out your inner super saver. Let him run wild.

So how many more months did you eke out of those savings? The budget becomes a light house in the storm. Use it. Take charge. And seek God's next chapter in your life.

Do I pay Mastercard?

I honestly can't answer that. Do you have 3 to 6 months of savings? At least keep current - minimums only. Fewer than that in savings? Don't pay Mastercard and go hungry. Mastercard may scream and shout. They'll rant, rave, and threaten you. You'll feel bad. Starvation kills you. Which matters more? Your life or Mastercard's bottom line?

Remember - this is only temporary. The emergency does end. I never encourage anyone to skip out on their financial obligations. You will pay Mastercard every cent. Right now, your family needs you more. And when its all over, Mastercard will still be there.

And keep the house payment current. Let me repeat that... Keep the house payment current. Do not lose your house. Downsize, if the storm lasts more than a few months. Shelter is vital for survival. Let's keep those priorities straight.

You Have Style

Why do I like Perl? On the downside, Perl has 10 ways of doing the same thing. It enforces no particular style - so you'll find all kinds of different styles out there. The code can range from obscure to nigh unreadable. The sheer number of libraries is dizzying. How many duplicate functionality? Why in the world would I use Perl instead of Python, Java, or Ruby?

Our personalities suit us for different working environments. Some people require frequent supervision. They need a list - do step 1, then step 2, etc. Others fly by the seat of their pants, instinctually knowing the right things to do. I fall somewhere in between, leaning towards seat of the pants.

Perl fits comfortably into my personal range on the spectrum. It provides a basic structure with reasonable limits. And then opens up a field of possibilities inside of the fence. Sure, you can get to the tree by three different paths:

1. The scenic route around the hill and through the flower garden.
2. Quick - going directly over the hill.
3. Cut across the hill, overlooking the flowers yet a little more direct.
   

Perl lets outside circumstances influence your decision: performance, maintainability, readability, flexibility, quality, etc. And I like that. Not everyone does.

What's the point? Different artists choose different mediums because the medium expresses a little bit of who they are. Like other artists, a programmer chooses his medium because it expresses a little bit of who he is. You can never persuade a programmer away from their favorite language on technical merit. They didn't choose it for technical merits.

Web apps

Having entered the job market again, web programming is a big thing right now. And I'll be honest, I love online banking. So why do I feel reluctance at embracing web applications?

Remote applications offer many advantages...

• Easy distribution
• Data security
• Data backup
• Easy updates
• Consistent interface

Mission critical data requires administration. It needs backups in case of emergency. It needs security against theft. And every piece of software receives tweaks. Putting the data and application on your server lets you provide the administrative services to smaller customers. Web applications all share these strengths.

Then is the web the right platform for remote access? AJAX relies on hooks in the browser. We keep adding features to text parsers. We have dozens of frameworks built around synchronizing an asynchronous protocol. Why?

X Windows provides remote graphical applications. And these applications behave like all of your other applications. Why aren't we making it more efficient? Why aren't all these advances occurring in a full fledged platform?

Because all of the computers running Microsoft Windows can't support those applications. We have all of these ad hoc answers hacking around Windows' short comings. Because it is not in Microsoft's best interests to play along. This is not innovation.

It is, however, where we are. So I will continue learning more web technologies and writing web applications. I just needed to understand the reason behind it all.

Stealing From the Budget

Our church family experienced explosive growth over the last year. Attendance jumped from 170 to around 300. The sanctuary can't hold that many people. Two services relieve some pressure. Yet the second service continues filling up the building.

The elders and deacons are feverishly trying to accommodate all of these people. Discussion ultimately ends revolves around some type of overflow room. For this, we need to transport video and audio signals. That means equipment purchases - money the church doesn't have.

During one of these discussions, I heard the phrase steal from the computer technology budget. The person who said it was displaying their wit. Unfortunately, a grain of truth lies behind the sarcasm.

A budget is nothing more than a list of priorities. Any church has a finite amount of funds. And they can only accomplish a finite number of things with those finite funds. A budget says which things the church accomplishes that year. So what happens when your priorities change half way through the year? That's right - your budget changes too.

Someone won't be happy. Some ministry or goal will lose out on funds they rightly expected. It is imperative that leadership talk with their congregations about the changes. Call a special meeting with ministry leaders. Give them the problem and ask them for a solution. Guess what? They'll reach the same conclusions you did. And now it's their idea. They'll find money for you.

Your budget is a contract. In personal finances, Dave Ramsey says that couples spit shake and pinky swear. You did just that when instituting the church budget. You made a solemn promise to the ministries and administrators. Show them the same respect you would your spouse. Let them know about new church priorities. And negotiate a new contract - change the budget.

Decently and In Order

Our family visited a new church this weekend. The pastor spoke about giving. What a Sunday for visitors, huh? He did a fine job with the sermon.

The sermon covered three principles in tithing: give sacrificially, give responsibly, and give cheerfully. God's word lays out our priorities in giving:

1. Tithe
   
2. Take care of your family
3. Offerings

Step 2 befuddles me at times. This is where Dave Ramsey's baby steps come into play. They set clear limits on responsible spending. And when you work through those 7 steps, you end in a position to give offerings.

The hardest part is saying no right now. God calls us to give sacrificially. He does not call us to put our families in jeopardy. You must understand the limits of your giving before pushing those limits.

Notice that none of those Baby Steps mention a budget? A budget makes the steps possible. A budget defines the limits. And allows you to stretch those limits. With a budget, you know what to sacrifice, responsibly providing for your family, making all of your giving cheerful.

Why Worry?

What started all of this talk about worry? After 15 years, the company eliminated my position - a layoff! 30 people were let go. One coworker told us a story. He found work almost immediately. His preschool daughter said don't lose your job today, Daddy. It's a heart wrenching experience.

At the time, I was reading an anthology of Dale Carnegie's How to Win Friends and Influence People and How to Stop Worrying and Start Living. Those books made a deep impression.

Worry constantly bangs on the door during a career change. How will we eat? What if I can't find work? Am I trying hard enough? Am I good enough? Some days the fear becomes overwhelming. I read my notes from those books along with Psalms or Proverbs.

Worry comes from the heart. It is fear taken to its utter most extreme. It is hopelessness. In spite of everything, you can't avoid the worst.

My hope lays in Jesus Christ. Because He lives, I am never without hope. Worry is selfishness - my circumstances are so much worse than anyone else. No one can help me. When we stop looking at ourselves, worry disappears. And you won't even realize it! Christ is our hope and salvation. You cannot worry when you have hope.

The Worry Syndrome

Fear leads to anger. Anger leads to hate. And hate... leads to suffering. - Yoda, The Phantom Menace.

Think about that list we wrote down earlier. It hurt writing those down, didn't it? Your body responded to the emotions of worry. Emotions have very real, physical effects on our bodies. You cry when sad. You smile when happy. Or what butterflies in your stomach for nervous?

Worry and fear go hand-in-hand. And that fear, that worry, has physical effects:

• Migraines
• Exhaustion
• Arthritis
• Ulcers
  

Losing sleep over it is the euphemism. Yet it's true, isn't it? You don't sleep well when you're worried. You feel run down, exhausted, drained. Then you start snapping at your kids and wife. Your entire body tenses. Every muscle clenches.

Lack of sleep cannot kill you. Lack of rest can. My brother decided once to see how long he could hold his breath. And for some reason decided to try this in the kitchen. So he held his breath. Guess what happened? Yes, he passed out - and smacked his teeth on the counter top. But he started breathing again. You see, it's physically impossible to die from holding your breath. Your body breathes on its own. Holding your breath requires an act of the will.

Likewise, your body sleeps on its own. You cannot physically make yourself stay awake forever. Eventually the body shuts down and you sleep. Staying awake takes an act of the will.

Worry does not rob us of sleep. It robs us of rest. Sleep refreshes the body. Rest refreshes the spirit. The spirit gives life to the body.

My great-grandmother lived into her nineties. As long as I knew her, my grandparents cared for her. They eventually placed her in a nursing home. My grandmother fretted over that decision for many years prior. She viewed nursing homes as place where you went to die. Because people simply stopped once they arrived. They gave up. They lost their spirit.

Worry crushes the spirit. And through that, it destroys the body.

What Me Worry?

What are you worried about? Losing your job? The drop in your 401k? The squealing noise coming from your car brakes? How's your health? Take a minute and write them down. All of them.

Proverbs 22:3 says A prudent man sees danger and takes refuge, but the simple keep going and suffer for it. Ignoring a problem doesn't make it go away. You should be concerned about the squealing brakes. You should watch your company's financial situation. Carefully, thoughtfully watch for danger. And take refuge.

Worry is an emotional obsession about things that might happen. When you worry, every thought rests on the target of that worry. You simply cannot put it out of your mind. Even worse - you really don't know if it will happen. The thought that it might triggers worry.

Worry crowds out everything else. It's a distraction. You cannot think of anything beyond that problem. Worry turns your mind inward. And it blots out the world around you. It locks you in a vault with no windows. Nothing else matters. Worry constantly screams for your attention.

Therefore I tell you, do not worry about your life, what you will eat or drink; or about your body, what you will wear. Is not life more important than food, and the body more important than clothes? Look at the birds of the air; they do not sow or reap or store away in barns, and yet your heavenly Father feeds them. Are you not much more valuable than they? Who of you by worrying can add a single hour to his life? - Matthew 6:25-27

Worry is fear. What are you afraid of?

Tending the Fields

Two articles ago, we discussed the budget process. At that time, you simply wrote down where the money goes. That is important historical information. Today's article takes the next step — controlling where the money goes. A budget does not just record where your money went. A budget plans where your money is going.

First we take the list of categories. Down the left hand side we'll place numbers, starting with 1. Find the most important thing in your list — food. Trust me, you want to eat. Put a 1 next to food. Now find clothing and put a 2 next to it. The mortgage or rent goes next. Follow that with your savings for a car, insurance, and license fees. What we've done is build four walls.

Imagine raising a house. You build the roof first. Then construct a wall. Lean the roof from that one wall to the ground. Now slip another wall underneath. This isn't going too well, is it? You would never build the roof first. That's just crazy. Put up four walls and the roof goes on quite easily.

Personal finance shares much in common with our imaginary house. We have four walls supporting the rest of the structure:

1. Food


2. Clothing


3. Shelter


4. Transportation

These represent the very basic necessities. You need something of all these elements to live and work. It does you no good paying Visa while going hungry for three days. You can only earn more money staying healthy enough for work.

Proverbs 24:27 puts it this way: Finish your outdoor work and get your fields ready; after that, build your house. Always put necessities first. When examining the remainder of your budget, ask the question What happens if this doesn't get paid? Does it threaten your ability to work? Then that category goes higher on the list. Set your priorities down on paper, on purpose.

Train a Child

Train a child in the way he should go, and when he is old he will not turn from it. - Proverbs 22:6

We use this verse as a basis for church education programs like Sunday school and Vacation Bible School. My wife and I took this verse to heart in the schooling of our two oldest daughters. The baby, though, taught me that it goes deeper.

Vania had digestive problems from the day she was born. Vania regurgitated most of what she ate. The lack of nutrition hurt her growth. At 9 months Vania looked like a 3 month old baby. Her doctors prescribed a formula that digested faster than the acid reflux forced it back out. Vania began growing again. She started solid foods and developed normally - though 9 months behind.

Vania also exhibits some quirks. Her doctor thought the symptoms might indicate a genetic disease called Rett's syndrome. The blood test takes two months. In that time, my wife and I learned more about Rett's. A lot of frightening possibilities appear in your mind. Will she walk? Will she talk? What about mental development? Will she die young from this?

My wife took Vania for the blood test. They saw children in double strollers - child on one side, oxygen tank on the other. I heard about the children in wheel chairs. My wife was afraid. I was afraid. I imagined our little girl trapped in a body that refuses to work.

Thankfully God doesn't leave me in my stupidity. I had condemned Vania to misery in my own heart and mind. I thought of her through my own fears. And I would treat her - teach her - with those same fears. Out of fear, I would train Vania about the things she couldn't do.

I resolved that Vania will not learn defeat, fear, or surrender. We will train her about what she can do.

Our children learn their principles from us: hard work or laziness, patience or anger, defeat or success. They learn these traits very young. And our children live those principles when they're old. What are your children learning?

FPU Invitation, Summer 2009

Dishonest money dwindles away, but he who gathers money little by little makes it grow. Hope deferred makes the heart sick, but a longing fulfilled is a tree of life.

- Proverbs 13:11 & 12

Are you struggling financially? Do you want better for your family?

Financial Peace University focuses on growing one little step at a time. You will leave this class working harder than ever before. You will face a mountain. And you will climb it.

FPU lays out a map over the mountain. It gives you the tools for your situation. Learn about making money behave, reducing risk with insurance, investing for the future, and kicking Murphy out of the house.

FPU begins Sunday, May 31. Please sign up in the foyer, so that we can let you know the time. Contact Jerry Imel (Imel902@comcast.net) or Rob Wohlfarth (rbwohlfarth@gmail.com) if you have any questions

In Due Time

Wow, a budget is hard work. Are they really worth the hassle? When I ask myself this question, hassle is the last thing on my mind.

A budget reveals our priorities. I spend money on things important to me. You spend money on things important to you. Really, it's that simple. You can spend $5 on a cup of Starbucks coffee, or orange juice for your entire family, or lunch with a friend. But not all three.

It sounds so dramatic. Truth be told, we make these decisions all day long. Every time you pull out cash or a credit card, you made a decision. You chose groceries over eating out. Or you chose coffee over investing in a mutual fund. You spent your money on the things most important for you - priorities.

I'm a selfish person. Left on my own, I would spend everything on stuff that makes me feel good right now. Shocking, isn't it? That is our sin nature at work. John 3:19b says but men loved darkness instead of light because their deeds were evil. Writing a budget exposes our spending habits to the light. The budget isn't magical. It confronts you with your own behavior.

Personal finance is 20% knowledge and 80% behavior. The budget draws a line in the sand. It marks a clear boundary. And I cannot hide my selfishness in the darkness of ignorance. Paul says in Romans 7:7b - Indeed I would not have known what sin was except through the law.

That is why I resist doing a budget. Because it requires discipline over my sinful nature. And discipline is really hard work.

Details, details, details

Now where were we? Ah yes - the budget. Take a deep breath and we'll dive right in...

First we gather our supplies: a notepad, pencil, pay stubs and bills from last month. Our budget begins with the income. Write down all sources of income - one per line. You have a salary. Does your spouse also have a salary? Stocks, bonds? Me neither.

Now write the amount next to each item. This is the total amount each month. After the amount, write how often. For example, I'm paid the 15th and last day. Are you paid weekly? Write down weekly. This isn't so hard.

Next come our expenses. Where do we spend our money? Don't worry about the order. Just write them in the order they come to mind: food, clothes, gas, oil changes, car insurance, mortgage, home insurance, renter's insurance, electricity, natural gas, Internet, cable, water, sewer, trash pickup, gifts (birthday, Christmas, anniversary), hair cuts, and all of the other things your family uses.

Next to each write down the amount you will spend this month. If your amount goes down to the penny, you are a nerd. At least round it up to the next whole dollar.

With a calculator, add up the monthly income. Write that number at the bottom of your list. Now add up all of the expenses. Write that number below the income. Subtract the total expenses from the total income.

Negative numbers are bad. You cannot spend more than you make. Here comes the hard part... Go back and cut expenses. Your total expenses must equal your total income. We call this a zero based budget. Income minus outgo equals zero.

What happens to positive numbers (income > expenses)? You spend more! No, no, don't rush out to the mall. I mean spend the money on paper - in your budget. Set the money aside for savings. Things break and children get sick. Whatever you call these funds, do it on paper, on purpose.

Unsteady Income

Invariably, someone has an irregular income. They earn commission, and their income depends on the sales that month. Or hours vary week to week. Either way, you can't really predict how much money arrives.

Start with a low average for the income. Do you work between 32 and 38 hours a week? Budget for 32. That is your most likely minimum. What about commission? Calculate your average for the last two months. For the cautious, ignore your 2 best weeks when calculating the average. That weights your budget towards the lower end.

Now list expenses just as we explained above. Do not put dollar amounts next to them yet. First we prioritize the expenses. Tithe goes at the top - we honor God above all else. Next build the four walls: food, shelter, transportation, and clothing. Write these expenses into your budget.

Okay, now add more categories based on the welfare of your family. Yes, Visa wants their money back. They will sue you if you don't pay them. And that doesn't really matter when your baby's cold turns into pneumonia. Take care of your family. This is your money, not Visa's.

List debts - except the mortgage - at the bottom. The mortgage counts towards the shelter wall. Credit cards, bank loans, and financing all go on the end.

Finally start down the expenses list with the amounts. Go until you reach zero. Just under the zero, draw a line across the page. Any extra money above what the budget shows applies underneath the line in the order shown. Always pay the highest priorities first. Do not let American Express take away money for your glasses. Because then you fail the eye exam at the BMV and lose your license. Makes getting to work all the more difficult.

Sample Forms

The Lampo Group, LLC, provides excellent budget forms. Their forms already list the most common expenses (utilities, food, etc.). It's easier than writing the budget out long hand every month.

• Budget Form: http://www.daveramsey.com/media/pdf/fpu_qbudget.pdf
  
• Irregular Income Budget: http://www.daveramsey.com/media/pdf/irregular_income_planning.pdf
  

Mathematically, a budget is simple. Discipline wise, however, is a completely different ball game.