BUDGETING

One of the first things I really had to work on was my budget.  I started budgeting about 10 years ago.  And I’m still paying off debt. My journey hasn’t been perfect, but I knew I had to start.  My first budget was just a simple spreadsheet.  I just looked at the due dates of our bills and assigned the bill to a pay date.  And I just kept a rolling tab.  I didn’t always follow my budget schedule.  But I knew that if I used money for something other than it’s intended purpose, then something would go unpaid. I knew I had to have a plan to make up that money.

It has taken me years to improve my budget. It’s so much better now.  But that is just result of practice and perseverance.  I was committed to finding a way to make our money work.

Here are some key things that I feel are an important part of managing your money.

• Know who you owe and how much.  Make a list of all your debt.
• Know how much money you earn.  Even if your monthly income varies.  You should know the bare minimum you’ll make in any given month.
• Know your “sweet spot”. This is the bare minimum you can survive on each month.
• BUDGET.  Create a budget.  Find the best way to pay your bills.  It’s different for everyone. There are tons of internet sites, books, and workshops that can help. Try them all until you find what works for you.
• Trim the fat.  If you can only afford to eat beans and rice, then make the best beans and rice of all time and enjoy!
• Find solutions.  You realize you have a beans n’ rice budget, but you just can’t live with that.  Find something you can get rid of so that you can increase your grocery budget.  Or find a way to make a few extra $$ to put towards your grocery budget. (just using groceries as an example)
• Don’t give up. If you’ve always had issues with managing your money, then it will take some time to make a change.  Just don’t give up.  Trust me…it’s worth it in the end.

I’ve paid off all of my credit cards, our cars, and we’ve managed to purchase a used car with cash.  We still have a mortgage and my student loans. MY STUDENT LOANS!

This summer, we were able to install a driveway.  And we paid cash.  Believe me, I’ve made some HORRIBLE money decisions.  And I know my situation may be very different from others, but trust me, if you really want to have some financial freedom, you will find a way.

I’ve followed many of the “debt free” pioneers.  I’ve read their books and I’ve learned a lot from them.  But I still tend to gravitate toward the most simple, tried, and true methods.  Methods that people have used for many years.  To gain financial freedom one simple rule stands above them all—you have to spend less than you make.