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

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EMOTIONS AND MONEY

Courtesy of dollabuzz

When it comes to emotions and money, self-control and discipline is much needed all the time. You see, you can sometimes think that you need that particular item and later learn that you only wanted it. in other instances, you may feel that you are entitled to that designer handbag which is not in your budget just because you worked hard. That new car you have been lusting after is in your focus despite the fact that the car you currently drive is paid for and running great. Your friends are taking vacays to the islands and you want to go badly so you skip one bill and put it off until next month (knowing that interest charges will double on that bill). The paralyzing fear of not having enough to pay next month's bills...

The above scenarios are ways in which our emotions can rule over how much money you spend, save or don't save as well as your fears and expectations of how money rules your life. Below shows the fears of Americans surrounding emotions and money:

Courtesy of Eventbrite

Lets find ways in dealing with emotions in order to deal with money effectively. The following suggestions can help:

1.) Know where you stand in your money situation regardless of the fears or apprehensions. This way, you can  begin to take action on it.

2.) Do not compare your situation with others. They are not you and you must take responsibility for your actions.

3.) Create a budget and stick to it. You will see where your money is going without guessing. Set up a payment plan and make sacrifices in order to meet your debt free goals.

4.) Do not be embarrassed by your situation; you created it and you can fix it. Seek counseling in order to help you get on the right track with your emotions.

5.) Distinguish a need from a want. Really analyze the difference between the two. If the particular thing you want does not fit in the budget, let it go. Concentrate on your needs first and foremost, like shelter, food and clothing.

Put first things first when dealing with money. Yes, we need it to live but it does not have to be a depressing subject. Tell me what you think about emotions and money in the comments and be sure to subscribe in the right hand column. Until next time....

Be Frugal and Proud,

Dot


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