For some of you the word budget makes you cringe! It’s seen as a negative, restrictive, fun ruiner. It means never going out to eat, entertaining or buying that once in a lifetime deal spontaneously. It can also feel intimidating because you’re afraid that putting a budget in writing is going to truly show you are spending too much – or you aren’t making enough money to keep up your spending indulgences.
But what if your budget shows you that you’re making more than enough and you could get out of debt and build your savings quicker than you ever thought imaginable, just by making a decision of what you want to spend your money on?
A budget is the foundation of financial control. Even millionaires live on a budget. No one ever stumbles into or accidentally gains control over their finances. Every get-out-of-debt or build-wealth story you hear starts with an intentional plan! God’s word in Proverbs 21:5 The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty.
A budget isn’t just a list of all your bills, when they are due and the amount. But it’s a start! A budget is taking your income and assigning all of it where to go. ALL OF IT you ask? Yes, all of it. You should have a line for savings, eating out, entertainment, clothing, miscallenous and vacation – in addition to your regular monthly mortgage, car payments and utilities. See – the opposite of restrictive! It actually gives you PERMISSION to spend money on the things you want!
Beginners tips for starting a budget:
- Make your list – income and outgoing. Don’t forget to add in monthly amounts that need to be saved for those yearly pop us expenses (filling your propane tank, vehicle taxes and tags, insurances, medical expenses)
- Do it as a couple! You can’t be on the same page of where your money should go if your aren’t both involved in the decision process. Then, let the kids know! This could be a great learning experience for them that they could take into adulthood with them.
- Use the same intensity for your budget as you use for planning your vacation. We spend hours researching where, when and what to do for a week of our year. Think of what you could do for your short term and long term goals if you’re using that same type of planning!
- Give yourself grace! Your first try is not going to be perfect. You will have to tweek that budget the first month, second month and probably third month. Be patient with yourself. Practice makes perfect!
Budgets are the foundation to financial control and give you a clear picture of how you can save, pay off debt quickly and give to the things that matter to you!
Email me at terrie@transformedfinancial.com to get help creating a budget that you can live by to build your dreams!