How to Budget and Not Fail
Have you ever started dieting and then found that your results weren't coming nearly as quickly as you would have liked? People don't learn how to budget correctly and then run into the same problem: the results don't match up with the work they're putting into it!
Honestly though, most people budget in such a way that failure is the ONLY option. A personal finance expert will come with some fancy point-based value system for how to budget, while another supposed expert will want the person to use all cash in our increasingly cash-less society. While these methods may work for a short time, they usually don't last long. So how do you budget so it's fail-safe?
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.
The nex time your paycheck comes in? Take THAT money and give every single one of those dollars a job.
The key in budgeting is not to be some great estimator or forecaster, it's to be aware of what you want your money to do. The key is that you make sure ALL of your money is assigned to do something -- whether it's paying the rent, buying groceries, or saving for that dream vacation. It's important to realize that when you begin assigning every one of your dollars a job, they'll begin working much harder for you. You'll be much more aware of where your money is going, and your spending will fall in line with what you truly value.
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.
Honestly though, most people budget in such a way that failure is the ONLY option. A personal finance expert will come with some fancy point-based value system for how to budget, while another supposed expert will want the person to use all cash in our increasingly cash-less society. While these methods may work for a short time, they usually don't last long. So how do you budget so it's fail-safe?
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.
The nex time your paycheck comes in? Take THAT money and give every single one of those dollars a job.
The key in budgeting is not to be some great estimator or forecaster, it's to be aware of what you want your money to do. The key is that you make sure ALL of your money is assigned to do something -- whether it's paying the rent, buying groceries, or saving for that dream vacation. It's important to realize that when you begin assigning every one of your dollars a job, they'll begin working much harder for you. You'll be much more aware of where your money is going, and your spending will fall in line with what you truly value.
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:
Jesse Mecham will show you how to budget with his free 10-day course. Jesse has helped thousands find financial peace through four simple rules for budgeting.
posted by Credit Counseling at
2:00 AM
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