TODAY WE WILL DISCUSS BUDGETING AND HOW TO GET STARTED! I AM NOT GOING TO TALK ABOUT THE FULL DEAL HERE. JUST THE BASICS. IT CAN BE OVERWHELMING… I KNOW. SO LET’S BREAK IT DOWN. IF YOU WANT THAT FIRST HOME TO CALL YOUR OWN, AN UPGRADE, A SECOND HOME, INVESTMENT PROPERTY OR JUST TO DO BETTER WITH THE DOLLARS YOU HAVE, THEN THIS IS A STARTING PLACE.
FIRST, START WITH A REALLY GOOD BUDGETING FORMAT. ONE WITH MORE THAN JUST A FEW GENERIC CATAGORIES. THINK ABOUT THE DOLLARS YOU SPEND EACH DAY, WEEK, MONTH AND YEAR. THEY DON’T FALL INTO JUST A COUPLE OF CATAGORIES. A BUDGET SHOULD REMIND YOU OF THOSE NORMAL EXPENSES THAT ARE NORMAL FOR YOU, EVEN IF THEY ARE NOT NORMAL FOR MOST OF THE POPULATION. IF YOU DON’T HAVE ACCESS TO A GREAT BUDGET FORMAT, LET ME KNOW AND I WILL SHARE ONE WITH YOU. IF YOU DON’T SEE A CATEGORY YOU NEED, ADD IT.
SECOND, BE HONEST. WE EACH LIVE IN OUR LIVES AND HOMES DIFFERENTLY. SOME FOLKS ARE HOMESTEADERS. EACH WEEKEND AND HOLIDAY IS PLANNED AROUND HOME IMPROVEMENT PROJECTS, ENTERTAINING AND PUTZING AROUND THE YARD AND HOME. OTHERS, HIT-AND-RUN. HOME IS JUST A PLACE TO DROP OFF THEIR PERSONAL ITEMS, CHANGE CLOTHS AND GO SOME PLACE FROM. EACH WEEKEND AND HOLIDAY IS PLANNED AROUND OUTSIDE INTEREST AND ACTIVITIES. EACH OF THESE FOLKS ARE GOING TO HAVE A BUDGET THAT LOOKS QUITE DIFFERENT. THINK ABOUT WHO YOU ARE AND HOW YOU LIVE AND SPEND THE MONEY YOU HAVE.
THIRD, BE SURE TO USE YOUR NET INCOME WHEN FIGURING OUT WHAT YOU HAVE TO WORK WITH. THIS IS WHAT IS LEFT AFTER TAXES AND REQUIRED DEDUCTIONS. IF YOU HAVE DEDUCTIONS FROM YOUR PAY FOR SAVINGS, INVESTMENTS, INSURANCE, ETC., (PRE-TAX OR AFTER TAX) THOSE NEED TO BE NOTED YOUR BUDGET AS WELL.
FOURTH, THINK OF WHAT YOU MUST SPEND AND WHAT IS OPTIONAL. NEEDS AND WANTS. THE BUDGET SHOULD REFLECT A PLAN FOR THE FUTURE AS WELL AS THE EXPENSES OF TODAY. IF YOU WANT IT AND IT’ S IMPORTANT TO YOU, PLAN FOR IT. MAKE A CATEGORY AND LOOK AT IT EVERY MONTH. EVEN IF YOU DON’T HAVE THE FUNDS TO ACCOMMODATE IT NOW, MAKE CHANGES AND PLAN AHEAD SO THAT YOU WILL. THIS IS WHERE DISCIPLINE AND GOAL SETTING COME IN.
FIFTH, RE-EVALUATE NORMAL EXPENSES AND BILLS. CHECK YOUR BILLS WHEN THEY COME. ARE YOU GETTING FULL BENEFIT FROM ALL THE SERVICES OFFERED? I RECENTLY WENT THROUGH MY OWN COMBINED CABLE, INTERNET AND PHONE BILL. THERE WERE SERVICES INCLUDED THAT MY FAMILY DOES NOT REGULARLY USE. I CALLED THE PROVIDER AND WE MADE A FEW CHANGES THAT SAVED US OVER $ 20.00 PER MONTH. ($ 240.00 per year)
SIXTH, IF YOU HAVE A SPOUSE, SIGNIFICANT OTHER OR ROOMMATE, EACH OF YOU NEEDS TO FILL OUT A BUDGET SEPARATELY AS A STARTING POINT. THEN SIT DOWN AND TALK ABOUT THE DIFFFERECES, EXPECTIONS, AND PRIORITIES. FROM THAT CONVERSATION CREATE ONE MASTER BUDGET THAT EACH OF YOU AGREES TO. WE ALL HAVE DIFFERENT OPINIONS. IF EVERYONE INVOLVED TAKES OWNERSHIP OF THE BUDGET, THEN THE CHANCES FOR SUCCESS ARE MUCH GREATER.
SEVENTH, PLAN FOR SAVINGS AND INVESTING. FOR MANY, THIS IS THE HARDEST. IF YOU ARE NOT DOING IT NOW, TIME TO START. YOU CAN START SMALL, EVEN $ 25.00 PER MONTH IS A START. WE ALL SLEEP BETTER AT NIGHT WITH MONEY IN THE BANK. LIFE IS UNPREDICTABLE. PLAN FOR THE BUMPS IN THE ROAD, THEY ARE PART OF THE JOURNEY.
EIGHTH, A BUDGET IS NOT A MAKE IT AND FORGET IT DEAL. IT’S A CONSTANTLY CHANGING AND EVOLVING PROCESS. MAKE YOUR BUDGET VISABLE, VIABLE AND USEABLE.
NINTH, IF YOU NEED HELP AND THE PROCESS IS OVERWHELMING, GET HELP. FIND TRUSTWORTHY, EXPERIENCED, HELP.
TENTH, TRACK YOUR RECEIPTS FOR PURCHASES, MONTHLY BILLS AND STATEMENTS. THESE ARE THE TRUTH TELLERS OF HOW YOU SPEND YOUR MONEY. EACH MONTH WHEN YOU SIT DOWN WITH YOUR BILLS AND BUDGET, USE THESE TO DETERMINE YOUR STREGTHS AND WEAKNESSES. MODIFY AS NEEDED.
PLEASE, KNOW THAT THIS IS JUST A STARTING POINT. MANY, MANY BOOKS HAVE BEEN WRITTEN ON THIS TOPIC. YOU MAY CONSIDER READING ONE OR TEN OF THEM. PERHAPS TAKE A CLASS OR ATTEND A SEMINAR. THESE TIPS ARE DESIGNED TO GET YOU THINKING AND MOVING TOWARDS A BETTER TOMORROW.
ALL THE BEST! LYN
Contributed by: Lyn Bankowski AlaskaUSA Mortgage
THIS IS INFORMATION IS NOT TO BE CONSIDERED LEGAL OR FINANCIAL ADVICE. PLEASE SEEK THE PROFESSIONALS IN THOSE FIELDS WHEN NEEDED.
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