I do not profess to be an expert in finances by any means. However, I have learned a few things over the years, and I know how hard it can be to make ends meet. I see far too many people living paycheck to paycheck, with little to nothing in savings.
I am a fairly frugal person, and I do love working, so it makes it a little easier to splurge once in awhile. But I’ve learned it’s very important to save when you can and do not live above your means. Have you ever heard the saying, she’s got champagne taste on a beer budget? That’s what I’m talking about.
I believe it is super important to follow a budget, whether weekly or monthly. But first you need to know where you are spending your hard earned income. I am going to share a couple of tips with you, and if you’re interested, a simple budget to try.
Start by going back a month or two and printing out or writing down every transaction. (Back in my day, we had a checkbook that we did this in.) In the age of debit cards though, it’s a little more time consuming to keep track of.
Sort your expenses into categories. Start with debits (expenses) that occur weekly or monthly like rent, utilities, and car payments.
Write down your credits. (Income)
Add both columns and then subtract the difference. If you have a positive balance that’s great! This can be fun money and savings.
If you have a negative balance, obviously that’s a problem. But you should be able to see where your money is going, and adjust your spending or your earning.
Now you are ready to plug these numbers into a budget to help you stay on track.
I've included a simple budget here for you to get an idea of what one looks like. If you need a little more guidance, please schedule a free consultation! I would love to help you keep more of that money you work so hard for!
Comments