Why Budget? (1950)

Working Together

Working Together

Thank you for your kind words while I wasn’t feeling well.  I am feeling much better today and am trying to play “catch-up.”

For years and years (and I mean years) I used Quicken to manage my money.  I was diligent about keeping track of what I spent.  I had sub-categories–such as, “groceries: chocolate”– that my brother-the-tax-accountant would laugh at whenever I handed over my file to him every year.  My rationale was that I wanted to know how I was spending my money!  I had a budget!

The problem is, I didn’t even look at the totals.  I didn’t have a budget.  I had software that enabled me to become disconnected from my spending habits.  Before online banking was available, I simply printed out checks using Quicken.  Kabing, kabang, kaboom, I was done with my bill-paying for the month in 15 minutes and I didn’t even have to bother looking at the bills!

Another problem is that I wasn’t trying to control my spending.  I was just keeping track of it. Why?  I wasn’t using the information I was collecting.

And then one day, a few years ago, I stopped to look at those bills.  Ouch.  Big ouch.  As in “holy s, er, cow” ouch.

That’s when I started managing my money like my grandmother.

I wish I could say that by taking that step I am now wealthy and living in a big mansion.  I’m not.  It will take a little while longer to clean up the financial mess that I made.  However, I am grateful that I had the “ouch moment” when I did.  It put us in a better financial situation when my husband and I were both laid off from our respective jobs a month apart from each other and it has enabled us to pursue our dreams instead of having to panic (although, I confess, I’ve had moments of panic).

Ever the teacher that I am, I have put together a “Tips: How to Manage Your Money Like Your Grandmother” guide based on what I’ve learned on my journey toward fiscal integrity and peace of mind.  Basically, subscribers will receive an email every day for about 30 days with a tip and a short description of how to put the tip into practice.  And the best part is that it is free! Click here for more information.

This gem of a film from 1950 explains to us why people from all income levels should create a budget.

Click here if the video player doesn’t work


Watch Home Management: Why Budget? (1950) in Entertainment |  View More Free Videos Online at Veoh.com

Comments

  1. says

    Hope you are feeling better today!

    Thanks for posting the video, I enjoyed watching it.
    That part about Betty and the chocolate sodas reminded me of how some people choose to buy coffee every morning instead of making it at home. According to the inflation counter I checked with, $0.20 in 1950 equals $1.71 in 2007. I guess you’d have to just get black coffee as I don’t think you can buy any of the fancy coffee drinks for $1.71! ;)

    I came across this vintage cooking video yesterday on someone’s blog. I thought you might like to see it.

  2. Dr. Julie-Ann says

    I don’t think you can get regular coffee for $1.71, can you?! I don’t drink it so I don’t know such things. How much is black coffee at the donut shop? Our local diner charges $2.50 (my husband drinks it after dinner).

    I LOVE the video and I found her site because of post the other day. I think I may use it in a post of my own.

  3. says

    I signed up for your tips. Thank you for making them available!

    They are lining up EXACTLY with what my husband and I have been discussing.

    Today’s tip (#3) about using only cash and credit cards i what I have been doing for the last few days. It is eye-opening! I have put several things back and decided not to buy them because I had only X amount of cash with me.

    Another thing I noticed about using cash is that it’s a nice feeling that the item is already truly paid for. No surprises when the statement comes.

    Grandma (and Grandpa!) knew better than we how to manage. It’s time to look to the elders for wisdom rather than the cluelessness of youth. Been there, done that. Experience is worth it.

  4. Dr. Julie-Ann says

    Roxanne,
    I’m so glad you’re finding them useful!

    I totally get what you’re saying about that feeling of knowing that something is paid for and you don’t have to mess with bills or anything else. The transaction is done when you hand over the cash.

    But I think your last paragraph sums up one my goals for this blog perfectly. Thank you!