THAT INFAMOUS 'B' WORD: BUDGET

I did a blog a few months ago entitled: A BUDGET? YOU HAVE GOT TO BE KIDDING! about budgeting and the importance of it. Today, I will go into this subject even more because a lot of people make budgeting so hard. Budgeting requires sacrifice yet not the kind of sacrifices which cause you to starve yourself, dress in rags or walk 100 miles to work (an extreme, but you get the point). Budgeting helps you to not only see where your money is going but how to see whether this expense is necessary and needs to be deleted from the budget. 

According to Practical Money Skills.com, building an annual or monthly budget comprises of the following:

• Fixed expenses are expenses that stay the same from month to month, such as rent payments.
• Flexible expenses are expenses that change from month to month, such as how much you spend on utilities.
• Total expenses are the combined amount of your fixed and flexible expenses.
• Total monthly income is the income from your job or other resources including investment dividends, pensions, Social Security benefits, rental income and more.
• Disposable income is the money you have left over after you subtract your income taxes from your income

They emphasize to create your monthly budget using this basic Budget Worksheet. If you find you are not able to stick to your budget, it may mean you are spending beyond your means or that your budget is not flexible enough. Take the time to review and readjust your budget monthly until you find a plan that works for you.

You truly have to be serious and disciplined when you budget because you will not only be in control of your money and feel empowered. Budgeting does not have to be a serious subject, just a matter of focus, discipline and being focused on having a great money future. Until next time...

Stay Frugal and Proud,

Dot

More Articles and Sources:

PRACTICAL MONEY SKILLS

WHAT IS BUDGETING?

START BUDGETING

THE ENVELOPES PLEASE!

Courtesy of moneycrashers.com

The money envelope system is one which monies are allocated in separate labeled envelopes. It is the second step after writing out a detailed budget. The third and last step is by allocating amounts to these envelopes, you can see and feel the money to be spent. Once the monies are spent for that budget period, you must wait until the next budget period to repeat the process. 

As you can see in the picture above, each envelope is labeled for what is to be spent on. I feel this is a very good system because you know that each expense is taken care of easily. In some cases, there have been people who have had monies left over which is a great thing! They immediately place that money into a jar for having money in the house or carry the amount over to the next budget. Even in some cases, spending money has an envelope as well so that the budget stays on track and no monies are taken away from it.

The envelope system is not for those who are not into details but for those who are serious about where every single dollar goes. If you use the envelope system, let me know how you are doing with it by commenting below. Until next time....

Stay Frugal and Proud,

Dot

Articles

Dave Ramsey.com

The Ultimate Guide to the Cash Envelope System

Budgeting with cash: How to make the envelope method work in 2018

A BUDGET? YOU HAVE GOT TO BE KIDDING!

Lots of us know people who make more money than we do yet when it comes to taking care of the necessities of life, they seem to run short. We see celebrities and other personalities in the media who have made lots of money, then in a few years file for bankruptcy while crying broke. This baffles us and we wonder how in the hell did they get themselves in that hole. What those two scenarios have in common is this: they did not have a money plan or budget as it is generally called. 

I can hear those moans and groans about the 'b' word but it is very important to have one. By having a detailed budget whether done weekly or monthly, you can see where every dime of your money is going. This should be very empowering because you know what is spent on what and the priorities you have when spending.

A budget does not restrict you to not spend but helps keep your bills and other expenses on track. You can not continue to spend and spend with reckless abandon then expect to know how much you make. Before you know it, all of your money is gone and you scratch your head wondering where it went. 

I personally did not grow up with this money mindset and had to learn it on my own, the hard way. No bankruptcies just downright broke. Once I changed my mindset I set out to change my life in the money area.

There are lots of books about budgeting; google budgeting to get started. You won't regret your decision and as always...

Be Frugal and Proud,

Dot

HOW TO FORGIVE YOURSELF FOR YOUR MONEY MISTAKES

Courtesy of Pinterest

You blew hundreds of dollars on those clothes that you did not need. Your closet was already full to the brim. Goodwill or local consignments would love to be friends with you yet you hold on to those 'needed items' just in case. 

That vacay you so desperately wanted to go on despite the fact you did not have the funds is charged on your credit card. This happened after you paid it off and wanted to cut it in half. You decided to hold on to it...maybe just once more and then cut it up.

Ok, your neighbor has better tools than you and you want what you want. You blow a bankroll on tools that will sit in the shed for how long? Months, years maybe.

After your war on spending and not sticking to a budget, the casualties result in debts to the wazoo! You ask yourself how in the glorified hell did you do this. Once the initial shock wears off, the reality sinks in: you are in debt and need help, period...that part.

You want to cry, scream, cuss yet once those emotions have run their course, it is time to sit down and get serious. Those debts won't go away by themselves so it is best to form a plan, write it down, do research on how to get out of debt (Dave Ramsey can help). 

The dust has settled and you are taking action on your plan. One of the most important things to do that folks ignore a lot of the time is forgiving themselves for the money mistakes! It is very important to forgive because what's done is done and now you are rectifying the situation by changing your behaviors. I believe this is one of the keys to money success along with budgeting, giving, and saving (these topics are for future posts😃).

Please comment below and let me know what you think.
Remember to be frugal and proud!

Dot😇