Keep a household budget in place and try not to veer away from it. It will be one of the most important and crucial things you will do for your family.
We work hard to earn a living. Many of us are working forty to sixty hours per week, ust to get the basics paid.
Wouldn’t it be such a blissful feeling if you did not have to stress so much about money? Working just to pay bills does not increase our motivation to work. We feel absolutely obligated to work, forcing some of us to despise work instead of enjoying the work we do.
Love Money Again!
We should make sure we spend the money we bring home appropriately. That’s where a household budget comes in.
We need to know our numbers! What is coming in and what is going out. What is going out should not be higher than what is coming in. And if it is right now, this is the time to change that.
Know Your Numbers!
Money is the hardest thing to talk about. For some of us, it hits all the negative feelings and reactions. it can make us do such irrational things. It can even break up families! But it really does not have to be like that.
I want to warn you, when we are working through your budget, you may get mad, this is ok, but understand that getting control of your money is a process, and an important one. Your negative emotions will try to stop you from taking control of yourself and your money, but you are strong, you can do this!
Being in debt is not fun, I know and have been there! It seemed like there was not going to be an end, it was seriously so depressing and embarrasing on top of it all.
It was difficult to talk with others about money troubles. However, I have learned that my ego and my pride is what was holding me back, it was controlling me to the point where I was just stagnant. It was making me sick, physically and phsycologically, I needed to find the remedy and fast.
Before we dive into exactly what a budget can do for us, let’s consider for a minute what will happen if we’re not tracking income and expenses.
Thoughts, Feelings and Things That Will Happen If You Are Not In Control Of Your Money
- Find Excuses
- Not Take Personal Responsibility
- Blame Others
Being one paycheck away from being homeless is not something you should be worried about.
Not being able to pay for three meals a day is not fun or safe, stay healthy by eating your three meals a day.
Watching your child grow out of their clothing to the point of their clothes nearly shredding right off them is not something you want to watch your child go through.
>We will always end up spending more than we’re making in a given month (or two, or three). Over time that can put us into some pretty hot water financially. We may also spend a lot more than we’d like to believe on things like eating out, going to the movies or new clothes.
Having a budget gives us more control over where we want to really spend our hard earned cash. Maybe that’s dinner and a movie, but maybe it isn’t.
Wouldn’t it be nice to have an actual choice?
A Household Budget Tracks Where Your Money Is Going
A budget simply tracks your money. You record where the money comes from each month (your income) and then write out everything you spend it on, starting with your regular monthly bills like mortgage or rent, car payments, utility bills etc. What’s left after all the bills are paid is your discretional income.
- Rent or Mortgage
- Car Payment
- Car Insurance
- Home Owners or Renter Insurance
- Health Insurance
- Household Needs (cleaners etc.)
This list is just to get you started, every one of us will have some differences inwat we have to pay out and how much is going out. When it comes to your credit cards and loans, be sure to list them each separartely not combining them.
A Budget Helps You Identify Things You Waste Money On
Having it all in front of you, laid out in a color-coded graph helps you identify things you’re wasting your money on.
It makes you reconsider if you really want to spend well over $200 a month on Cable TV or $150 on your large cell phone plan. Or how about that yearly magazine subscription to something you no longer read? Go through your expenses and reevaluate if this is really how you want to spend your pay check.
Track the last three months of your life. What did you spend money on? Why did you spend money on them? Learning why you spent money on
Creating a Budget Allows You To Be Proactive About Savings
Saving money without a budget is hard. We go in with the best of intentions at the beginning of the month, but somehow there isn’t anything left at the end of the month.
A budget gives you a chance to be a bit more proactive. Set aside some money for and emergency fund and savings at the beginning of the month, even if it’s just $20. Put it in the budget as a regular expense, just like you do with your other urgent bills. If you need to, open a separate saving account so you’re not tempted to spend it.
Your budget absolutely needs to be down on paper! Please do not pretend to have a budget in your head, this is why most people are in debt. They assume because they think about a budget, they have things under control, until they are deep in debt.
A Budget Ensures You’re Not Spending More Than You’re Making
Most importantly, your budget will keep you on track and help you make sure you’re not spending more than you’re making. And I don’t have to tell you that that’s pretty important for your financial well-being.
Having a budget to maintain your money flow will increase your money management to maintain complete control of your money.
In your budget, once you get down the basics, then you can finally budget in your freedom to financial peace. This means creating an emergency fund, retirement fund and so much more.
Let’s begin To Understand Money Together.
Download this free one page easy to understand budgeting worksheet. This will help you with just getting started. Make sure to join the brand new Budgeting For Financial Freedom Facebook Group to help you with personalized money management needs.
You can submit your budgeting needs anonymously using our Budgeting Google Form for assistance. We will help you work through it in the form of a post. It will be posted