One of the most common questions I get asked is, “how do I budget?” Many people have tried budgets…and failed! That leaves people frustrated and in turn they say they will NEVER use a budget again. Here are some things people equate with budgets:
Budget = Restricting
Budget = I’m Broke
Budget = Controlling
Budget = No Fun
Budget = Not worth it
I would ask them the following:
- How are you paying for Christmas this year? I am paying cash.
- How much is your car payment? I paid cash for my car.
- How much did you invest this month? I have invested for retirement for over 220 months in a row and my daughter’s college for over 150 months in a row.
- How much money do you owe to your credit cards right now? I owe $0.
- When is the last time you had a great discussion on finances with your spouse? Not a fight. A great discussion. Jenn and I develop a spending plan TOGETHER every single month.
Well I want to make a deal with you. Will you give budgeting one more shot? I’m going to do my best in this series to try and teach you a method of budgeting that works. A method I used and still use today. My hope is you will try a budget for the month of March.
In reality, a budget is nothing more than telling your money where to go. I have heard Dave Ramsey take the definition a humorous step further – a budget is nothing more than telling your money where to go instead of wondering where it went! EXACTLY!
So our first step in budgeting is:
STEP ONE Decide to decide
Until you decide that budgeting is crucial to taking your finances to the next level, you will always find a way to avoid this “unsavory” task. The very day that Jenn and I started budgeting was the very day that we started WINNING WITH MONEY! From this moment on, decide to live differently. Decide to not live paycheck-to-paycheck and in debt.
Decide to decide!
Make sure to check back for Step Two on Thursday!