In Part 1 of Personal Finances, Creating a Budget, we talked about creating a budget for your personal finances. I know, I detest the word budget too because it feels so confining or restricting. But actually what’s going to happen when you create a personal budget for yourself or your family is just the opposite. YOU will gain control of your life. YOU will gain control of YOUR money.
If you missed the first article make sure you go through it before you continue on to this next section. Also be sure to pick up your FREE Simple One Page Budget at our website: Personal Finances Online dot com.
Okay then, here we go…
If you’re one of the lucky ones and your income covers all of your expenses, then you still may need to consider putting some more money elsewhere for retirement or possibly even into some investments. Cut out some unnecessary things in your life . You won’t miss them I promise you. By doing so you might even be able to save enough money for some college fund investments for your youngsters or maybe your retirement fund. Heck, retiring early sounds good to me…
DAVE RAMSEY
Sometimes I have time to listen to Dave Ramsey, (he’s a radio host in Nashville, TN). Anyway, one of the things he actually advocates is to start an emergency fund of $ 1000. My wife and I started doing this and it has helped us more than ever.
You know the drill – let’s say you’re driving down the freeway and one of your tires blows out. Then let’s say you’ve got to call a towing service and then you have to buy a new tire or two or even worse a set of tires. Remember that small stash of money you have been putting elsewhere called an “emergency fund”. It will presently come in handy my friend.
Let me repeat thyself – – – Having an emergency fund will ensure that if any unforeseen events should stick their ugly head up (Murphy’s head) then you will be able to cover those expenses and not have to use your already maxed out credit cards. That’s another problem, credit cards. Most of us don’t know how to use them and therefore it gets us into trouble. More on that in another article perhaps.
My granddad always said to pay yourself 10{3813292df256cc7359db914c8bfffc508a0964aa786224d36d2cb21f4b33d600}. Did I listen, “NO”. I spent it as fast as I got it. But not any more, if I make some I put some back. If I make a lot, I put a lot back. Take a look the possible areas of debt reduction such as credit cards and loans. Would it make sense to pay one off? Probably if you are paying 18{3813292df256cc7359db914c8bfffc508a0964aa786224d36d2cb21f4b33d600} on interest. So take a serious look at doing this.
WATCHING BUDGET TV….
The other evening I was looking Susie Orman and she said something that a lot of us haven’t followed. I know I haven’t in the past but I can tell you that I certainly am presently. She said that if you can afford a $ 500,000 dollar home, then you need to buy a $ 350,000 residence. The point: don’t always push your budgetary spending to the max.
STAYING ON BUDGET!
Most all of us actually do have financial goals. If you have misplaced them, pick them up, dust them off and put them back into your thinking and actual “Doing”. Get realistic about those financial goals. And begin to make a plan to attain them again. Be intelligent, be wise and most of all be practical with your thinking. Start small, yes, okay, I’m going to say it – start with baby steps and move on from there. YOU CAN DO IT!!
Maybe one of your goals is that you need a little vacation but you can’t afford that trip to Maui yet. Okay, but let’s say you really need to get away for a while because you are really need a break from your job. Start with getting away by taking a mini two-three day vacation. My wife and I use to do this all the time. There are many little get-a-ways just 1-3 hours away from where you currently live.
You might need a new vehicle. Well maybe not a new vehicle but at least “transportation”. Something to get you to your job and back or to the grocery store and back. Save up for a good used one then. Having a home budget can and will help you save money to make those dreams or goals a reality.
CREDIT CARD DEBT
The numbers are absolutely staggering as to how many people are feeling the weight of credit card debt today. You need a budget to get control of your spending habits. Without it, it is almost impossible to make much headway in reducing your financial debt. With a personal budget you will be able to start eliminating your problem areas with your account balances. If your financial budget numbers are way off, meaning your income is underneath your spending, it may take some time to get it under control but you can make those adjustments. And when you do your life will not feel like it is spinning out of control. The goal here is for you to control of YOUR money, not the lack of money controlling your life.
The ultimate goal is for you to be able to live well below your means, to be able to put some money into investments or savings, and to get rid of your outstanding debts such as credit cards, car payments and eventually the big one, your mortgage.
Having a budget will be the best thing you could do for yourself and your family.
So get to it. Take control of your money and don’t let it control you.
IF you haven’t already done so be sure to choose up a FREE Simple One Page Budget at our website!
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