This is one of the scariest and easiest and hardest things I have ever done in my life. Its also the best thing I have ever done to take control of my finances. It gives you control like nothing else can. Why would it be scary to do a budget? I don’t really know but I felt dread and trepidation when I sat down to do the first one. I put it off for days. It was hard because even though I wanted to do this I could barely make myself. This is stupid. I know it. I did the getting out of debt steps and I did the saving money steps but when it came to a budget I had a metal road block against it. The truth is I kept a pretty good running total in my head and I was conscious of my bills and spending but I just didn’t write it out or allocate every little dollar. Its like I felt like I was going to be loosing some kind of freedom if I did a Budget. Again, I know this is silly but these are things I felt. If you want to fix your financial problems your going to have to do a Budget. The first two months I did it I had to write everything out and go over it three or four times and I had to change the amounts a few times I was scared I wouldn’t make it on what I allowed myself. But I did it every time and it worked out perfect. I now have more money than I ever have. I am saving money like crazy. I always have more than enough and I seldom have had to make sacrifices. It is the single best thing that I have done for myself in years. It hasn’t taken away any freedom but it has given me freedom and control and most of all peace of mind. I know its boring and to someone like me maybe even scary but its the single best thing you can ever do for yourself. I can now do my budgets for the month on the back of a napkin in 5 min. I do it every time I get paid so bi-monthly or twice a month. If you want to change your financial life then this is it. Start it now in the new year. I attached a form to get you started it walks you through everything. This is a form from Dave Ramsey who is amazing and if you are serious about changing your financial world I did his class and it works! I’m debt free and my house will be paid off in July 2013. Im not doing an advertisement but I am giving credit where its due. This is a form from his class. I hope it helps change someones life the way its done mine.
(Sorry its cooked but you get the point.)
Monthly Cash Flow Budgeted left over total
Take Home Pay (other income) ____________
Charity – ___ __ ___
Food – __ __
Ending balance needs to be zero: $0.00
That means allocate every dollar to something or some category – even if its just spending money or pocket money. These are broad categories so you will probably need to add in stuff under each categories but this can get you started.