The trouble that you get without having a budget is that you are likely to overspend. Some people even spend more each month than they have coming in, this is when debt can really become out of control. But for the vast majority of us, we must learn how to control our spending so we will have money “leftover” to save and invest for what we want. Leftover money is the basis of all budgets. If we don’t budget, we lose control of our expenses and can’t even figure out where the money went. Worse, yet.we can’t figure out where we’ll get the money to cover that big bill we forgot was coming.
In fact, I felt as though I took control back from my creditors when I made this subtle shift. Yes, I owed them and I had to pay them in a timely fashion. In order to start getting your finances under control, it’s a good idea to get the family together and spend an afternoon or so making a budget. We do a master budget about once a year on a spread sheet, keying in all of our planned expenditures for the upcoming year. When we would budget and just use the debit card things got a little crazy and out of control sometimes. Now, its all cash and envelopes.
Consequently, your credit card debt will continue to control your money, your life, your dreams. Now it just makes sense, if you continue on this path, you’re doomed to hit a dead end! A lot of people dismiss the act of budgeting, but creating a budget really is the most important first step in gaining control of one’s finances. A budget is a way to capture one’s financial goals on paper. Using your Monthly Budget Journal is a great first step toward taking control of your money. It’s as simple as reading the first few pages and keeping a journal for the next month of what you earn and what you spend.
Let’s be honest, when trying to get our finances under control we need to track our spending for the first little while. Trying to keep a mental note of our purchases simply won’t work. The key to good finances is targeted control of your money. Learning how to manage your personal finances can enable you to understand how to use your money better and how to keep more of it in your pocket.
