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The Guard-Rail Budget

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A Simpler Way to Control Spending By Mike Peek A zero-based budget is a system where every dollar of income is assigned a specific job before the month begins. In theory, this creates clarity and control. In practice, it often relies on income forecasts, constant adjustments, and a level of precision that can feel exhausting—especially for households with variable income or irregular expenses. The Guard-Rail Budget offers a different approach. Rather than forecasting income and assigning every future dollar, a Guard-Rail Budget focuses on setting clear spending limits based only on money already on hand. Think of it like driving down a road with guardrails. You’re free to steer as conditions change, but the rails prevent you from veering into unsafe territory. How a Guard-Rail Budget Works At the beginning of a month, a household chooses a predetermined spending allowance—a fixed amount they are comfortable spending during that period. This amount is not tied to expected income. It is ...
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Give Purposefully and Cheerfully

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  I have worked in the health care industry for more than half of my life. From doctors to nurses to ancillary personnel high consumption is the norm. To live on less than one makes as abnormal. Several years ago, we made a conscious decision to be abnormal. I recently wrote about our journey through the seven baby-steps as laid out in Dave Ramsey’s book, The Total Money Makeover. I wrote both about our successes and our struggles. Today, living in baby-step seven, we find ourselves in a much different place than we were just a few years ago, much-less, when we began that journey. “There is one who pretends to be rich, but has nothing; Another pretends to be poor, but has great wealth.” (Proverbs 13:7, NASB) Often, in the media, and among the populace, there is a misunderstanding about wealth and income. A high income does not mean wealth. Income usually defines level of consumption rather than wealth. Income is what you bring home but wealth is what you have. If you spend everyth...
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Financial Fitness: Freedom From Debt

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Financial Fitness Freedom From Debt by Mike Peek We began the year, 2006, deeply in consumer debt. We were a household of four, husband, wife, with two children: a boy, and a girl. We had good jobs and were driving new automobiles. From the outside, we were living the American dream; however, we were in a budgetary crisis. We were living paycheck to paycheck. It was as if our checking account was a money laundering service, moving money from our employer to the debt industry. I was a master juggler; therefore, we never missed a payment and had FICO scores above 800. I knew what we would have available, after making credit card payments, automobile payments, mortgage payments, and utility bills to spend on groceries, clothing, and lifestyle. We would use the amount, between what we owed, and the credit limit to pay for things. I was even able to predict interest, thereby, avoiding going over the credit limits. It would be a strain for awhile, then we would get a credit card in the mail...
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