In this series of post, I’ve been sharing the process that Jenn and I followed to develop a budget that actually worked! We have developed a monthly spending plan or budget every single month since that first one way back in July of 2003!
Here are the steps that we’ve already discussed.
STEP ONE Decide to decide
Until you decide that budgeting is crucial to taking your finances to the next level, you’ll be stuck! Decide to live differently and decide to start winning with your money NOW.
STEP TWO Determine the income (take-home pay) you will receive during the NEXT month
Planning ahead allows you to determine if there are any gaps. By being ahead of the game, it provides you an opportunity to avoid “budget-busting” events.
STEP THREE Enter all of your expenses for NEXT month
Tell your money where to go!
STEP FOUR INCOME – OUTGO = EXACTLY ZERO
Whether you make $1,500 per month or $50,000 per month, it is limited. If you spend more than you make, you will erode savings or turn to debt!
STEP FIVE Follow the budget!
Now you know all the steps. You have a spending plan for next month. Now is the time to live it. YOU told your money where to go now YOU make sure it goes there!
I’ve been able to see people completely break free of debt. I have seen people pay off their mortgages! I have seen marriages restored! I have seen the hopeless become hopeful!
Following a budget is about more than money. It’s about becoming FREE! Not being held by the chains of debt and despair. You will become financially free if you stick to a budget. This is a decision you will not regret.
Maybe you have read this series in a guarded, protected way while wondering, “Will this work for me? I don’t want to get my hopes up. I’ve tried this before.” I say that YOU CAN DO THIS!!! I believe in you! Why? Because I was there! I had an average bank balance of $4.13 and the STRESS was awful! The shame was real. I did not know how to break free.
Planning my spending one month in advance was what broke Jenn and me free! It will work for you too!
Why not pull up a free budgeting tool and get started winning with your money today?