Budget, Budget, Budget!

Posted by:  BeamaLife Editor  on 3 Aug, 2009

No matter what your profession is; physician, IT professional, hotel owner, or homemaker, money slides away like butter! Do you ever wonder where your money goes each month? Regardless of how hard you work and how much you save, it feels as if you’re standing stagnant instead of moving closer to your goals. If you’re reading this and nodding your head, you may want to establish a budget to help you keep track of how you spend your money.

The first step to budgeting is to examine your financial goals. You can’t get what you want unless you know exactly what it is. Start by making a list of your short-term goals. Short term goals include aspects such as a family vacation or a new washer and dryer. Long term goals include aspects such as college savings plan for your children & possibly even saving for their weddings (stressful, yes!) and your retirement plans. These goals need to be established to efficiently move towards them.

To develop a budget that is appropriate for your lifestyle, you’ll need to identify your current monthly income and expenses.

1. Add up all of your income. In addition to your regular salary and wages, be sure to include other types of income, such as dividends, interest, and child support.
2. Add up all of your expenses.
3. Identify any out of pattern expenses (holiday gifts, home repair etc)
4. Once you’ve added up all of your income and expenses, compare the two totals and act accordingly (you should be spending less then you earn).

Whenever possible, treat your goals as expenses and contribute toward them regularly. Your goals are in constant need of attention and should not be taken lightly. Look at your expenses closely and cut down on your discretionary spending. All it will take is some determination and a little self-discipline, and you’ll eventually get it right.

You’ll need to monitor your budget periodically and make changes when necessary (you can’t plan everything!) Any budget that is too stiff is likely to fail. Just be flexible!

It’s important to stay on track when it comes to your budget. Don’t drive yourself crazy trying to do it on your own! Get your family in on it. Agree on a budget and check each other to make sure everyone sticks to it. Also, start your new budget at a time that would be simple to follow, such as the beginning of the year or month. Staying on track with your budget does not have to be all strict discipline! Plant rewards into your budget, such as going to the movies or eating out every other week. Everyone deserves a little wiggle room!
Planning and organizing your life and your expenses can be less of a hassle if you practiced at least a couple of these pointers. So go on now, budget, budget, budget!

Please let me know if you have budget and you are sticking it to or no…….