Budgeting Isn’t Rocket Science

by
Connie David

Do you equate family finance with rocket science? Does it seem like an overwhelming concept to develop a budget with which you can live? If this applies to you, take heart. Budgeting doesn’t have to be nearly as difficult as rocket science! Here are five tips to make creating a realistic budget a little easier.

Tip #1: Think positively about your money. Money is a fabulous thing. It enables you to have a wonderful roof over your head, wear the clothes that help you tell the world who you are and what you’re about. Money buys education opportunities, cultural experiences, and money enables you to help others in need. You would certainly think money
was terrific if you were giving it to Katrina victims or the parents of a child with a debilitating disease. If you have ever seen the movie ” The Secret,” you will know that whatever you put out into the universe is what you attract to you. So that’s the first tip to creating a budget – think positively about your money. You may find that you have more than you thought you had.

Tip #2: List the categories by which you live. If eating out is a major part of your life then you’ll want to have a dining out category. If after-school activities are a large part of your child’s life and your family expenses then that is a category for your budget. Many budget forms have categories that won’t make sense for your lifestyle. If you want to create a budget that you can live by, and that is easy to use and easy to follow, create categories that make sense to you and your family. The budget forms that I have on my website are a good starting place. Feel free to add categories, and ignore the ones that aren’t appropriate for you.

Tip #3: Be realistic about your income. This is more difficult for self-employed individuals, commission based sales people or business owners, because business fluctuates. For regularly employed people with a predictable pay check, your budget should reflect your current pay check – after taxes. For folks dealing with unpredictable income, take a look at the minimum you’ve made over the past 5 years and base your budget on that income. This way, all your financial bases are covered. If you use the highest income you’ve made in the past 5 years then there may be months when you make less and your budget won’t work. The good news is that when you use your minimum average income you will often have extra money. Plan how you’ll use this extra money so you don’t throw it away on meaningless junk. Now my definition of meaningless junk is probably different from yours, so you will have to figure that out for yourself.

Tip #4: Set realistic financial goals. Budgeting isn’t about going without. It’s about setting and attaining your financial goals. It’s about success, not failure. Before you sit down to create a budget, take a few minutes to evaluate and document your financial goals. Do you want to save for a vacation, college, retirement, a new car or all of the above? You can save for all of these, but you have to have a plan. Without goals, a budget is nothing more than a detailed checkbook register. Many people have difficulty doing this. It is hard sometimes to think past the next week or month, never mind 5-10 years down the road or beyond. Remember, I can help. anyone who has signed up for my newsletter is entitled to a free 30-minute session with me, to evaluate where you are right now, and to determine if you are on the path to meeting your goals. If you would like to schedule a session, send an email with your phone number to me at info@itsstillyourmoney.com and I will give you a call to set something up.

Tip #5: Plan for fun. If your budget is all about financial burdens, it will be painful to create and more painful by which to live. Make time, and financial room, for fun in your life. If you love going to the movies, create a budget category for going to the movies once a month. If you absolutely love skiing or taking your children to the zoo then fit that fun time into your budget. If you have read my book, “It’s Your Money! You Keep It!,” you will know that the savings method I present there includes a category for fun, and the money must be spent at least every 90 days. Fun helps you stay healthy, and helps to reduce stress.

If you want your budget to be something that is easy to create and even easier to follow, follow these five tips. Making a budget can be tremendously empowering. Have fun with it! Remember, I am here to help. Send your questions or comments to me at info@itsstillyourmoney.com http://www.itsstillyourmoney.com
The information in this article may be reproduced, provided the author’ s name and website information stay in tact.
Budgeting Isn’t Rocket SciencebyConnie DavidDo you equate family finance with rocket science? Does it seem like an overwhelming concept to develop a budget with which you can live? Ifthis applies to you, take heart. Budgeting doesn’t have to be nearlyas difficult as rocket science! Here are five tips to make creating arealistic budget a little easier.

Tip #1: Think positively about your money. Money is a fabulous thing.It enables you to have a wonderful roof over your head, wear theclothes that help you tell the world who you are and what you’re about.Money buys education opportunities, cultural experiences, and moneyenables you to help others in need. You would certainly think moneywas terrific if you were giving it to Katrina victims or the parents ofa child with a debilitating disease. If you have ever seen the movie “The Secret,” you will know that whatever you put out into the universeis what you attract to you. So that’s the first tip to creating abudget – think positively about your money. You may find that you havemore than you thought you had.

Tip #2: List the categories by which you live. If eating out is amajor part of your life then you’ll want to have a dining out category.If after-school activities are a large part of your child’s life andyour family expenses then that is a category for your budget. Manybudget forms have categories that won’t make sense for your lifestyle.If you want to create a budget that you can live by, and that is easyto use and easy to follow, create categories that make sense to you andyour family. The budget forms that I have on my website are a goodstarting place. Feel free to add categories, and ignore the ones thataren’t appropriate for you.

Tip #3: Be realistic about your income. This is more difficult forself-employed individuals, commission based sales people or businessowners, because business fluctuates. For regularly employed peoplewith a predictable pay check, your budget should reflect your currentpay check – after taxes.For folks dealing with unpredictable income, take a look at the minimumyou’ve made over the past 5 years and base your budget on that income.This way, all your financial bases are covered. If you use the highestincome you’ve made in the past 5 years then there may be months whenyou make less and your budget won’t work. The good news is that whenyou use your minimum average income you will often have extra money.Plan how you’ll use this extra money so you don’t throw it away onmeaningless junk. Now my definition of meaningless junk is probablydifferent from yours, so you will have to figure that out for yourself.

Tip #4: Set realistic financial goals. Budgeting isn’t about goingwithout. It’s about setting and attaining your financial goals. It’sabout success, not failure. Before you sit down to create a budget,take a few minutes to evaluate and document your financial goals. Doyou want to save for a vacation, college, retirement, a new car or allof the above? You can save for all of these, but you have to have aplan. Without goals, a budget is nothing more than a detailedcheckbook register.Many people have difficulty doing this. It is hard sometimes to thinkpast the next week or month, never mind 5-10 years down the road orbeyond. Remember, I can help. anyone who has signed up for mynewsletter is entitled to a free 30-minute session with me, to evaluatewhere you are right now, and to determine if you are on the path tomeeting your goals. If you would like to schedule a session, send an emailwith your phone number to me at info@itsstillyourmoney.comand I will give you a call to set something up.

Tip #5: Plan for fun. If your budget is all about financial burdens,it will be painful to create and more painful by which to live. Maketime, and financial room, for fun in your life. If you love going tothe movies, create a budget category for going to the movies once amonth. If you absolutely love skiing or taking your children to thezoo then fit that fun time into your budget. If you have read my book,”It’s Your Money! You Keep It!,” you will know that the savings methodI present there includes a category for fun, and the money must bespent at least every 90 days. Fun helps you stay healthy, and helps toreduce stress.If you want your budget to be something that is easy to create and eveneasier to follow, follow these five tips. Making a budget can betremendously empowering. Have fun with it! Remember, I am here tohelp.

Send your questions or comments to me at

info@itsstillyourmoney.com

http://www.itsstillyourmoney.com

The information in this article may be reproduced, provided the author’s name and website information stay in tact.