Have you tamed your budget? Does thinking about your finances give you anxiety?
Your palms sweat, heart races. You feel like you just ran a 5k. Well, you are not the only one. Creating a budget and staying on track with it isn't easy. Does it seem overwhelming? It's like your New Year's resolution to start your diet. Your budget, like your diet will do you no good if you don't start. All it takes is a little commitment. I'm not going to tell you that it's simple. It's not, but it isn't rocket science either.
It's like there's a mental roadblock when it comes to budgeting. It's hard to follow, hard to include everything. So break it down into small chunks that are as easy to digest as that detox water sitting in your refrigerator. Start with Monday. What did you purchase? How did you pay, cash or card? Credit or Debit? Online? Be honest, nobody's judging.
Finished? Move on to the next day. Make it a habit of writing these down every day for a week. Now, do the same for the next week. At the end of a month add up all your spending, and subtract your total from the amount of money you took home that month.
It's time to compare. Which is higher? If your answer was expenses, you've got to chill with the shopping sprees or try reducing your expenses. Yes Amazon counts. No you don't need the box set of FRIENDS The Complete Series for $129.99 with free shipping if you order by June 11th. Keep this up and you will be eating into your savings or owing debt.
If you find that your expenses total less than your income, fabulous! You're on the right track. Take that extra money you've got and put it towards something worthwhile like savings, paying off debts or an emergency fund.
See? Making a budget isn't so bad. You've got the basics, and now that you know how to start, is it really that scary? Of course there's more to it than just writing things down. But we'll get to that. Until next time.