How to Budget and Not Fail
A lot like dieting, it seems that when you begin budgeting, you're simply doomed for failure from the get-go. Too often, the work you're doing doesn't produce the benefits you were so hopefully expecting. As a result, you quit prematurely.
Truth be told, failure is almost certain with the way people are taught to budget these days. Some financial guru will announce they've come up with handy-dandy tables to compute what you should spend on every conceivable good and service...another will say you only need to worry about what you're saving (while that's great, you're leaving a lot of money on the table when that's your only focus!).
Examine the current balances (taking into account any outstanding checks, since those are already "spent") for your checking accounts and budget that money into your own spending/savings categories. What you're doing is giving every dollar a job.
Now, when you're paid again, take that money and give ALL of those dollars assignments as well.
The secret with budgeting is not to become some type of visionary that can forecast all expenses with the greatest of ease...you simply want to raise your awareness levels so you know what your money is doing. This key to awareness is to insure that NO dollars slip through the cracks. Each must be given a job to do: entertainment, food, emergency fund, retirement savings... As you begin making sure each dollar is working for YOU you'll realize that your dollars will go further and your spending will start to match up with your value system.
Once THAT happens, the age-old question of how to budget is answered. You only worry about what you have on hand and you give it all a planned purpose.
Truth be told, failure is almost certain with the way people are taught to budget these days. Some financial guru will announce they've come up with handy-dandy tables to compute what you should spend on every conceivable good and service...another will say you only need to worry about what you're saving (while that's great, you're leaving a lot of money on the table when that's your only focus!).
Examine the current balances (taking into account any outstanding checks, since those are already "spent") for your checking accounts and budget that money into your own spending/savings categories. What you're doing is giving every dollar a job.
Now, when you're paid again, take that money and give ALL of those dollars assignments as well.
The secret with budgeting is not to become some type of visionary that can forecast all expenses with the greatest of ease...you simply want to raise your awareness levels so you know what your money is doing. This key to awareness is to insure that NO dollars slip through the cracks. Each must be given a job to do: entertainment, food, emergency fund, retirement savings... As you begin making sure each dollar is working for YOU you'll realize that your dollars will go further and your spending will start to match up with your value system.
Once THAT happens, the age-old question of how to budget is answered. You only worry about what you have on hand and you give it all a planned purpose.
About the Author:
Before you begin the daunting task of managing your money, make sure you check out Jesse Mecham's excellent free 10-Day course on how to budget effectively. It will completely transform the way you think about money.
posted by Debt Consolidation Loan at
12:41 AM
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