Budgeting Your Life

Yep, I went there. The most hated B-word in the world of money.  But you know it actually isn't that bad once you make up your mind to prioritize your spending.  I actually found instead of feeling restricted, I had more freedom to spend my money without the guilt of how am I gonna pay my mortgage, cause I bought these awesome summer shoes.  It all starts with being in the know. The knowledge of how much money you have coming into your home each month vs How much money is going out each month. Oh and yes I have a family so just letting you know if you have a spouse and kids. You all gotta get on board. One cannot go on a budget alone in a house full of people. (Just a little FYI)

Ok so now that you have decided to breath new life into your financial health, here are a few steps to get you started. 

Step one-  add up all the monthly income. That means anyone who contributes to the welfare of the family. make sure these estimates are after any taxes are taken out. so if you are self-employed make sure those taxes are figured in.

Step two-  make a list of all your monthly expenses. that means everything guys. even the ones you think you are hiding on your credit cards. like the coffee and bagel from star-bucks on your way to work. If you spent it that month it goes on the list. ( don't forget your charities and Church tythes as well.)

Step three- total up your list cost and compare it to your income. Now comes the hard part for most people. See what you might not really need and can possibly live without to help save money. Then prioritize your list.  and don't forget  ( savings) emergency money. You know the unexpected. make sure you have money put back for that. Cause your gonna have some unexpected. That my friend is called Life.

Step four-  The Extra money. Hopefully, you do have extra. That's your money to spend however you like. By something you want, go on a nice vacation, you know some fun money. Everyone needs some Extra money. If everything you make goes out to someone else you will grow very unhappy. so make sure you are putting back a little in the extra account. and even if its just a dinner and a movie once a month. Its crucial to your happiness. So set some goals and finally take control of your finances instead of letting them take control of you!!

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