MPmomof3Basic Budget
February 26th 2010 14:29
Having a budget can be more liberating than you may realize. A budget is much more than a bunch of numbers on a page consuming hours of your time. It is a tool to give you control of your money, not the other way around. A budget can show you where your money is going as well as where it should be going. It can help you plan for emergencies, pay your bills on time and even put a little money aside each month for that vacation you've always dreamed of taking. A budget can actually be your friend.
So, all this sounds great, but a budget is a lot of work, right? Actually, that depends. There are many different types of budgets. The key is to find the one that works for you. Below are some general tips to set you in the right direction.
1) Identify your financial weak points.
Most people, at least from my observations, use credit cards for impulsive purchases. Try going one month without using your credit card. Yes, I know it is hard, but it is also very enlightening. It can help you learn a lot about your financial habits very quickly.
2) Identify your financial strengths.
Can you smell a grocery bargain a mile away? Do you know where to find the best deals on clothes? What aspects of money and budgeting actually excite you aside from spending money?
3) Plug the financial leaks.
Financial leaks are like a dripping faucet in your bathroom. They may take small amounts of money, but those small amounts can really add up. Typically financial leaks are things like bank fees, late fees and impulsive small purchases such as candy bars.
4) Put it in black and white.
Simply having a "mental budget" isn't necessarily good enough. The mental budget can go right out the window quickly. Having a visual reminder written down can be very helpful in strengthening your financial resolve to stick with the budget.
So, all this sounds great, but a budget is a lot of work, right? Actually, that depends. There are many different types of budgets. The key is to find the one that works for you. Below are some general tips to set you in the right direction.
1) Identify your financial weak points.
Most people, at least from my observations, use credit cards for impulsive purchases. Try going one month without using your credit card. Yes, I know it is hard, but it is also very enlightening. It can help you learn a lot about your financial habits very quickly.
2) Identify your financial strengths.
Can you smell a grocery bargain a mile away? Do you know where to find the best deals on clothes? What aspects of money and budgeting actually excite you aside from spending money?
3) Plug the financial leaks.
Financial leaks are like a dripping faucet in your bathroom. They may take small amounts of money, but those small amounts can really add up. Typically financial leaks are things like bank fees, late fees and impulsive small purchases such as candy bars.
4) Put it in black and white.
Simply having a "mental budget" isn't necessarily good enough. The mental budget can go right out the window quickly. Having a visual reminder written down can be very helpful in strengthening your financial resolve to stick with the budget.
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