You Can’t Spend What You Don’t Have….

Figuring out a budget is easy…. and common sense.  Common sense because it keeps you out of debt. A spreadsheet, or paper and pencil are the tools needed to get started.

List all…every one… of your expenses. Some will be weekly while others monthly, and others still will be annually. This is probably best done in three columns, listing each in the appropriate column. Don’t forget incidentals… gifts, insurance etc.

Question…..  Is savings in your list??  Hope so…. because you should pay yourself first.

Now, add each column.  If you get paid weekly, are your weekly expenses within that figure? The same for monthly, and again for annually.  If your expenses are more, then you need to cut back and set a strict budget to get in line with your income.  Do this as soon as possible, because if you don’t, you’ll find yourself in debt. A hole you don’t want to get yourself in, because it only gets deeper and harder to climb out.

Start chopping off unnecessary expenses, and/or chipping away at things you can.  It is imperative to stay within your income, and become disciplined at it.

It is also imperative that you save something from every paycheck.  Pay yourself first.  This is an extremely important habit to get into.  Deposit it into a savings account right away, better yet, have it direct deposited.  What you don’t see, you don’t miss.

Once you’ve set a budget, stick to it.  If it means eating out less, or stopping gift giving, it is something that has to be done….. for your financial future.

Time passes quickly and although saving for the future may seem far off now, it comes quicker than you may think.  There are other savings accounts to set up too, emergency fund, and 6-12 month income reserve.  Each as important as the other, and all necessary.

So budget and stick to it. Pay yourself first. Be disciplined about it. You’ll be glad you did.