“You said a dirty word…BUDGET!”
Posted on November 11, 2010
Part of personal financial planning is controlling your day-to-day finances so that you can do the things that bring you and your family satisfaction and enjoyment. Setting and following a course to long-term financial goals such as a house, kid’s college fund(s) or just being able to retire comfortably. That is why setting a budget to help control your financial affairs is so important and unfortunately budgeting makes people feel overwhelmed or confined so they feel negative about even starting one. However, if you are able to disciple yourself to really take a look at what you make and how much is really going out, than setting limits on what you should spend, you will find more freedom in your financial lives and in turn more positive feelings that you are making strides forward to reaching your goals!
It doesn’t matter if you make thousands or hundreds of dollars a year, a budget is the first step to making your money work for you instead of letting it control you and this always has a domino effect in falling short of your goals.
Give yourself a challenge that for one month you will write down how much you bring in and keep track of every penny you spend. I promise that you will be amazed and a little surprised by how much those small expenditures add up.
I have some clients that are very visual people and have actually set up envelopes that have cash in them ear marked for groceries, utilities, entertainment, gas etc. and when the envelope is empty that’s it for the month and they make due. Then there are other’s that love a good spreadsheet where they can graph their progress, or just even sitting down with a pencil and paper works too. The important thing is that you get on that road to financial freedom by starting a budget today.
Budgeting and tracking your expenses gives you a strong sense of where your money goes and can help you reach your financial goals not to mention the positive effects this can have on your family relationships. So sit down this weekend and really do it
Rachel Larsen
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