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The Guard-Rail Budget

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The Guard-Rail Budget 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. 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. Why We Stopped Using Zero-Based Budgeting We didn’t abandon zero-based budgeting due to its ineffectiveness; in fact, it proved effective for debt repayment when precise control over every dollar was necessary. But once we were debt-free, we needed a new strategy. Our...
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Everyone Needs a Budget

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Everyone Needs a Budget By Mike Peek “For which one of you, when he wants to build a tower, does not first sit down and calculate the cost to see if he has enough to complete it?” (Lk.14:28, NASB95) Budgeting has increasingly fallen out of favor among everyday Americans. Many households now rely on credit to bridge the gap between income and expenses, often using credit cards or loans to cover shortfalls rather than strictly managing cash flow. Very few people set aside money in advance for major future purchases such as a car replacement or vacations. Instead of saving over time, many choose to finance these expenses when the need arises, often resorting to loans or credit cards to make up the difference. This reactive approach can lead to increased financial stress and long-term debt, further highlighting the importance of proactive budgeting and planning. For example, on January 1, 2006, Darlene and I faced a negative net worth. At that time, we owed $22,752.14 more than we had...
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Freedom From Debt

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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 with a 0% transfer...
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