If you are new to the subject of personal finances then you are probably asking yourself Why? Why go through the hassle? Why restrain your spending? Why be so nerdy?
Well, let me try to tell you Why by asking a few questions?
Why would you not want to know where your money is going?
Why would you want to spend more than you make every month?
Why would you go to work every single day and not want to have a penny in savings?
Why would you not want to retire on more than social security? 🙂
Why would you want to stay a slave to the lenders?
Why would you think budgets and spread sheets are nerdy? They are totally awesome!!!!!!
Well if these question have sparked your interest then let’s proceed.
I can’t promise you that your budget will save your life, marriage or automatically file your taxes but it does come close on a few of those things.
An honest budget with truthful numbers will show so much about your priorities, your habits and your connection to your money. As you proceed down the path to budgeting you will have several eye opening experiences when you truly see the wasted potential of your income. We waste on so much out of ignorance as much as haughtiness. We have to have the “best” of everything, we “need” 500 channels of TV. We need to eat out when ever, where ever we want or where our friends tell us to. We don’t want to be the Old Scrooge who says “No, it’s not in the budget”. I will tell you that the first few times that happens it’s not fun. Your friends will look at you weird, roll their eyes and go on about their way spending money they do not have impressing others people they do not like. But as for you, you will have a real dollar in your pocket, the paper kind. You will not be the person playing Russian roulette with their credit card when they tell their friends that they have the check while they are hoping they grabbed the correct card that was not maxed out.
Let me tell you what a budget will do for you.
- It is common ground for you and your spouse to politely discuss finances before you have spent the money. It allows you to talk through each person’s thoughts on money and make a decision that benefits the family, not just the individual.
- It reflects your spending habits both good and bad. When you work on your budget every month and see what your income to spending ratio looks like you will correct a lot of your spending habits. Most of what we spend our income on just does not make sense when you really look at it.
- It directs your income. It tells your money where to go and when. If you have extra money laying around it will vanish into thin air. It is borderline magical, not the good Walt Disney magic but the bad stuff. It will be lost forever and you will never see it again.
- Allows you to accomplish goals. To make a plan and stick to it, whether it is getting out of debt, paying medical bills or saving for a house. Spending more than you make will not get you there. Sorry!
- It will make you a spreadsheet guru with Excel equations floating through your sweet dreams. 😉
Take a look at the budget page and see what you think. Feel free to ask questions and let’s get going on this wonderful world of budgets. Be honest with it and don’t think that it is going to take away all your fun. If you “need” to spend $1000 dollars a month on the iTunes store then go for it. Just put it on the budget.
Thanks for reading and God bless.