October 14, 2011

Money and Finances: How To Budget


Wouldn't it be nice if there was some trick to magically make your money multiply, or some cash fairy to hand you wads whenever you needed to make a purchase?

Get. Real. People.

I'm sure we have all day-dreamed about a money-tree, or a lottery winning. I have, and I don't even play the lotto.

The TRUTH {and we are going to be talking about the truth} is that getting ahead takes effort, planning, and for some...a little sacrifice.

Getting started is the most important thing that you can do to help your financial situation. Stop sleeping as you swipe your ATM card {which might cost you now} and pay attention to every dollar. Yes. Every Dollar.

What my budget looks like. 
I don't get fancy.
I don't break it down into a million categories. 
Simple Works.

Salary
Tithing & Fast Offering
Mortgage
Health Insurance {people, we are self employed and this one hurts}
Life Insurance
Utilities
Spending {Groceries, Movies, Shopping, Dining, Extra Stuff}

Now your Categories might look a little different. So fit in the ones you need. We don't have car payments, cell payments, or cable etc, so yours could look quite different.

Here we go...
  1. Get a piece of paper and write down your personal categories
  2. Fill in your Salary {total Net income. Your net income would be your full income after taxes}
  3. Subtract your Tithing (10%). {I recommend that you pay tithing on your Gross income. Your Gross income is your full income before taxes}
  4. So now you have a dollar amount for what money is actually yours to do what you want with
  5. Write the Dollar amount for the categories that are a set amount each month {mortgage, car etc.}
  6. Take a look at the categories that change each month. Figure out if there is a way to cut back or do without any of these extra expenses. Write the amount that you think you can get by on for each of these categories. Challenge yourself in these area's. Set a goal to stick to a smaller amount than you are use to.
  7. Is there any money left after you subtract all of your expenses?
  8. If there is money left I want you to circle how much is left and then I want you to write TRANSFER TO SAVINGS right next to it.
Remember, if you don't even save a dime, you didn't make a dime. You only earn what you save!

Before my next post I want you to seriously start thinking about how you spend money. It doesn't matter if you are broke or rolling in dough, we all need to be accountable for our income.

Are there any places that you can tighten up? Are there any things that you can go without?

Budgeting isn't comfortable. But I'll tell you what is comfortable...Having money in the bank.

It really is nice, and you can enjoy that peace of mind by starting small and starting TODAY!

Now go figure out your income and your spending and meet back here in one week!

Go!


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6 comments:

corabeth said...

New Follower from Finding New Friends Blog Hop. Hoping you will follow back! =0)
My Crazy Life

AE Jones said...

GREAT advice!! Thank you so much. Love this.

Mel said...

Love your blog... You give such helpful advice...I am the budgeter so I always am looking for ways to improve!!! I used my iTunes gift card to put new tunes on my iPod for the Pink Half Marathon. Thank you so much!!!

BusyB said...

You have some major truth riding across your post. Can't agree with you more, because you are right. Thanks for your comment on my blog.

cassandrasminicorner said...

Newest follower from MBC blog hop- Hope you can visit and follow me back:)

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Thank's and have a great day:)

The Arave Family! said...

i love these budgeting posts...keep them coming!! "you only earn what you save!" ---so so true!!