Living with massive debt, living paycheck to paycheck or living off credit cards are… well, no way to live at all. Budgeting your money will put you in charge of your money versus the other way around.
Rather than listing all the doom and gloom that coincides with mismanaged money, I’d like to home in on the benefits.
Think of a budget as a plan. A game-plan for your money.
- Managed money goes further
- Budgeting can change your life (if you allow it to)
- Achieve your goals by making a plan for your money
Know where your money goes and begin to spend it with intention.
By tracking your spending you will get a clear picture of where your money goes. This is the beginning step in creating your budget. If you don’t know where your money goes how will you know how to budget it? Check out how to create a spending record to change some old habits into new and helpful ones.
Budgeting involves some thought and you want to be realistic with your spending plan. Try the DailyWorth money planner: a spreadsheet they’ve designed that operates on the premise that you can anticipate most of your yearly spending right now.
Take off some pressure by knowing your new budget will take time to perfect.
Don’t do radical things or be too stringent with your game-plan. A limited budget will feel like a noose and odds are you won’t stick to it.
Include a fun fund or blow money… whatever you want to call it. You work hard for your money so incorporate some sort of pleasure with your spending (just don’t get too nuts).
Take it slow, one month at a time. Set goals, hit them and shoot for the next. Mint.com is a free way to manage your money online and may help you achieve your financial goals. It is an online money manager and budget planner.
Make the time and sit down to put a budget together.
Budgeting is the vehicle that allows you to achieve your financial goals. There is no one way to do it. Being flexible, allowing for mistakes and keeping at it will prove worth your time and effort.
If you choose paper and pencil, online software or a spreadsheet it doesn’t matter. What matters is your personality and your goals. Find what works best for you.
Know how much money you have and know where your money goes. Make a plan on how you want to spend (or save) it. Have some fun too. It’s the freedom you’re after… having a budget will get you there.
For a step by step guide click here to download The Secret to A Successful Budget.