For many years, I heard people say, “Budgets don’t work for me.” When helping clients, I would listen to the same thing: “Budgets don’t work for me.” So, I asked the question of why. They would answer that telling them what to do with their money makes them feel like they have no control. Some would answer that it just doesn’t work; no one ever gave me a legitimate reason why budgeting their money did not work for them. Many responded, saying, “I would try to budget for a month or two, and it just didn’t work.” Some would say, “I bought every budgeting system and every app, and it didn’t work.” I believe anything can work if you’re consistent with it; maybe finding the system that is the right fit for you is the key. How does everybody else have success getting the things they want and you’re not able too. I/YOU had to hold myself accountable for my actions. It is what you tell yourself that determines whether that budget is going to work or not. If you tell yourself that your budget is not going to work, that you’ve done this before, and that it’s not going to work, then guess what? It’s not going to work! You will find yourself back at square one and then living paycheck to paycheck, borrowing money, and never achieving your goals. Budgets do work; applying what you’ve learned from people who have had success will allow you to learn from them and do the same.
I’ve discovered that people are afraid of trying and are so scared of rejection. They are also fearful of their families because they have failed in so many other areas of their lives that if they fail and budget in their money, it will be another failure to add to their failure list. We spend more time counting our losses than counting the successes. And we allow the world to dictate to us what success is. I had to learn that I determine my success – not the world. I choose when I win and when I lose. The minute you take control of your life, you’re thinking, and how you govern yourself, you will better understand how to be successful – especially when it comes to your money.
The following steps will help you manage/budget/organize your money. Whatever you want to call it, it’s going to be simple and straight to the point.
Step1
Write down or add all your expenses onto an Excel spreadsheet. Try out Excel Money by Microsoft. You can link your bank accounts to it, and it will calculate everything for you. Click on the link Here to learn more
If you want to write down all your expenses, you can also go to https://www.thefinanciallady.com/resources/ and get a money management sheet.
You must see what money is going out. It will allow you to evaluate which bills you get rid of or get a better rate.
Determine how much money you will spend on each of the following expenses:
- Hair
- Nails
- Groceries
- Gas for the car
- Entertainment
- Debt
- Savings
- Childcare
- Pocket money
- Personal items
These are just a few examples of common expenses but look at your own life and customize your expenses in a way that fits into your lifestyle. If you are married, the process will be the same. Sit down with your spouse and figure out your expenses together.
Step 2
Automate everything! Yes, everything. This step will keep you on track with your spending and hold you accountable. It will also stop NSF and late fees from depleting your bank account. You can automate your bills through your bank or your creditor.
Taking these two steps will help you jump-start your financial life and lead you to success.
Be aware, be informed!