Sometimes when I send people blank budget sheets, I attach these percentages that some financial experts agree on.
Here is the percentages that are suggested for your budget:
35% Housing (Rent/Mortgage, property tax, utilities)
15% Transportation (Vehicle payments, insurance, gas)
25% Life (Groceries, misc, everything that doesn't fit in the other categories)
15% Debt (this is the amount each month that you are paying towards your debt)
10% Savings
Take a look at your spending in a month and see how close you are to these percentages.
Wednesday, September 22, 2010
Tuesday, August 17, 2010
Back to school
Here are some budgeting ideas for back to school:
1. Write down all needs for back to school. Have the kids help you write out this list.
2. Double check that you don't have anything on your list in your home already. If you're anything like me, there are still glue sticks and scissors in your cupboards from buying them other years. Also, look through closets and totes because often people will buy items on sale the previous years and then forget about them or people will save shoes and clothes from the oldest child and forget to see when they will fit the next child.
3.Set a budget. Have your kids help you figure out a reasonable amount to spend on the items and then try to stick to that amount.
4. Look for back to school sales in the flyers and in stores.
5. Start planning for back to school lunches and snacks early so you're not stuck with a huge bill the day before school starts. Get your kids involved with ideas.
1. Write down all needs for back to school. Have the kids help you write out this list.
2. Double check that you don't have anything on your list in your home already. If you're anything like me, there are still glue sticks and scissors in your cupboards from buying them other years. Also, look through closets and totes because often people will buy items on sale the previous years and then forget about them or people will save shoes and clothes from the oldest child and forget to see when they will fit the next child.
3.Set a budget. Have your kids help you figure out a reasonable amount to spend on the items and then try to stick to that amount.
4. Look for back to school sales in the flyers and in stores.
5. Start planning for back to school lunches and snacks early so you're not stuck with a huge bill the day before school starts. Get your kids involved with ideas.
Sunday, July 18, 2010
Kids and Budgeting
I know that you’re expecting my usual bullet point tips on budgeting. And if you have kids, you are sitting on pins and needles wondering how the heck you can teach your kids the value of a dollar. You’re hoping I have some sort of insight into the bottomless wallet we seem to need when it comes to our kids. And I do. I do feel like I have some ideas on kids and budgeting. I have books sitting in my closet as we speak to help even the youngest of kids learn to budget. I’ve even spoken in classrooms to children on budgeting and find this to be the most fun I’ve had yet in talking about budgeting. I’ll get to the real ideas in future posts, I’m sure. But today you’ll have to settle with my musings on kids and budgeting.
How many of you have had the following money issues happen to you:
-Your kids asks you for something (in my case, sunglasses every summer) and you finally cave in and buy them and then they never use them. And even if they wanted them one day, do you think they can find them?
-You give your kid money to spend on lunch for a field trip and you emphasize that it’s only for lunch. You pack a million pre-packaged snacks only to find out the money paid for the lunch... and the gummie bears...and the slushies... I thought I said it was only for lunch!
-You get a note home from school telling you about some school trip and you need to bring the money in tomorrow (except that your kid forgot the note at school yesterday so tomorrow was, in fact, today!) As per usual, they only accept exact change. Who the heck has any money in their wallet, yet alone exact change? The other option is cheques. Do people still use those? Why can’t schools jump on the pre-authorized payment bandwagon?
-You find yourself paying some insane amount of money for their latest sports team and then have to buy plants, fertilizers, cookie dough, etc all through the year to help raise more money for the team. Then at the end of the sport seasons, you find out there was too much money raised and they end up throwing a party and giving gifts to all the kids. Why would the kids need gifts that you essentially paid for? Isn’t it a gift enough just to play the sport in the first place? How about giving me that gift and give me some of my money back?
-You finally decide to fork over the $20 to buy the perfect the action-shot photo of your kid at his last tournament of the season only to find out he made a different team next season so now the picture’s out of date because it’s got the wrong jersey. So that one’s coming down as soon as the next season starts in time to start begging for the picture with the new team.
-You put your kid in hockey (The most expensive sport in the world. Bar none). But hey, at least there’s payback here: after my son has played for 4 seasons (making him only 9 years old) in hockey he has decided that he will to be in the NHL. You might think that he’s just like every other 9 year-old kid who plays hockey and has dreams of playing in the NHL. You might think that, but you’ve got to understand that he’s got a wacky plan: he wants to be the back-up goalie for an NHL team. Why, you ask? (hoping that he has some insightful reason for this strange vision of his). Simple: he thinks the back-up goalie makes just as much money as the starter in the NHL but doesn’t have to play—and has the best seats in the house to watch the game. I’ve never even heard of a kid wanting to be a back-up goalie for the NHL. Does it get any lazier than that? Someone please remind me why we agreed to let our son play hockey.
-You not only let your kid play hockey, you decide when the coach asks who wants to be goalie and your son raises his hand (when he’s five) that you think it’s cute and he might as well try it. It’s only later that you realize that any of the smart parents, including former goalies themselves, forbid this course of action because have you seen the price of goalie equipment? Have I mentioned that hockey is the most expensive sport in the world?
-During a moment where you feel like you want to do something nice for your kids, you decide to let your daughter buy something and she picks her 100th teddy bear. How many of those things can she possibly need? Haven’t we spent enough on stuffed animals and the storage units we’ve all bought at Ikea to house these things?
-You’ve bought your kids so much stuff over the years and then you sell them one day at a garage sale; you watch your kids past favourite toys, the toys you spent tons of money on, go for a measly 25 cents.
-You buy your baby or toddler some of the most brain-stimulating toys on the market and they would rather play with the packaging of said brain-stimulating toy, or door stops, coat hangers, lint or basically anything that didn’t cost you any money.
-You feel like you’re the only parent in the world who is sick of spending an insane amount of money on the “milk program” at school. Especially when your son tells you on the last week of school he’s got fifteen milks left so he’s giving them to all his friends.
-You know you’re not teaching your kids the right budgeting lessons when your son comes home and tells you that they’re learning to be “green” at school so he’s conserving energy by turning off the lights in the house. You remind him that you’ve told him to do this his whole life and he turns around and tells you that it’s different when you turn off the lights to be “green.” He says that you only turn off the lights to be cheap. What’s the difference? Same result, different reason, I don’t see a problem.
-You feel like you could open up your own "dollar store" with all the crap you've bought there over the years. If I hear "mom, it's only a dollar" one more time...
-I can still remember when my brother got “hand-me-down” underwear as a kid. Literally, I remember it. They were “tighty-whities” with tennis rackets on them. I remember telling my mom how gross this was – hand-me-down underwear and thinking to myself that my kids will never wear hand-me-downs. (My brother did refuse to wear the underwear) And now looking back, I can count on one hand how many new clothes I’ve bought for them...however, their underwear is new: I draw the line.
-I can also remember when I was dating Brent how mortified I would’ve been to use a coupon at a restaurant. I remember making fun of people who did that. And now? Before I go out to any restaurant, I google it, I look through the newspaper and I call to find out when kids eat free. I hate going to a restaurant without a coupon.
-You find yourself saying something to your kids that you swore you would never say, because it’s all you heard growing up, but you just can’t resist because it’s so true: “Do you think that money grows on trees?”
How many of you have had the following money issues happen to you:
-Your kids asks you for something (in my case, sunglasses every summer) and you finally cave in and buy them and then they never use them. And even if they wanted them one day, do you think they can find them?
-You give your kid money to spend on lunch for a field trip and you emphasize that it’s only for lunch. You pack a million pre-packaged snacks only to find out the money paid for the lunch... and the gummie bears...and the slushies... I thought I said it was only for lunch!
-You get a note home from school telling you about some school trip and you need to bring the money in tomorrow (except that your kid forgot the note at school yesterday so tomorrow was, in fact, today!) As per usual, they only accept exact change. Who the heck has any money in their wallet, yet alone exact change? The other option is cheques. Do people still use those? Why can’t schools jump on the pre-authorized payment bandwagon?
-You find yourself paying some insane amount of money for their latest sports team and then have to buy plants, fertilizers, cookie dough, etc all through the year to help raise more money for the team. Then at the end of the sport seasons, you find out there was too much money raised and they end up throwing a party and giving gifts to all the kids. Why would the kids need gifts that you essentially paid for? Isn’t it a gift enough just to play the sport in the first place? How about giving me that gift and give me some of my money back?
-You finally decide to fork over the $20 to buy the perfect the action-shot photo of your kid at his last tournament of the season only to find out he made a different team next season so now the picture’s out of date because it’s got the wrong jersey. So that one’s coming down as soon as the next season starts in time to start begging for the picture with the new team.
-You put your kid in hockey (The most expensive sport in the world. Bar none). But hey, at least there’s payback here: after my son has played for 4 seasons (making him only 9 years old) in hockey he has decided that he will to be in the NHL. You might think that he’s just like every other 9 year-old kid who plays hockey and has dreams of playing in the NHL. You might think that, but you’ve got to understand that he’s got a wacky plan: he wants to be the back-up goalie for an NHL team. Why, you ask? (hoping that he has some insightful reason for this strange vision of his). Simple: he thinks the back-up goalie makes just as much money as the starter in the NHL but doesn’t have to play—and has the best seats in the house to watch the game. I’ve never even heard of a kid wanting to be a back-up goalie for the NHL. Does it get any lazier than that? Someone please remind me why we agreed to let our son play hockey.
-You not only let your kid play hockey, you decide when the coach asks who wants to be goalie and your son raises his hand (when he’s five) that you think it’s cute and he might as well try it. It’s only later that you realize that any of the smart parents, including former goalies themselves, forbid this course of action because have you seen the price of goalie equipment? Have I mentioned that hockey is the most expensive sport in the world?
-During a moment where you feel like you want to do something nice for your kids, you decide to let your daughter buy something and she picks her 100th teddy bear. How many of those things can she possibly need? Haven’t we spent enough on stuffed animals and the storage units we’ve all bought at Ikea to house these things?
-You’ve bought your kids so much stuff over the years and then you sell them one day at a garage sale; you watch your kids past favourite toys, the toys you spent tons of money on, go for a measly 25 cents.
-You buy your baby or toddler some of the most brain-stimulating toys on the market and they would rather play with the packaging of said brain-stimulating toy, or door stops, coat hangers, lint or basically anything that didn’t cost you any money.
-You feel like you’re the only parent in the world who is sick of spending an insane amount of money on the “milk program” at school. Especially when your son tells you on the last week of school he’s got fifteen milks left so he’s giving them to all his friends.
-You know you’re not teaching your kids the right budgeting lessons when your son comes home and tells you that they’re learning to be “green” at school so he’s conserving energy by turning off the lights in the house. You remind him that you’ve told him to do this his whole life and he turns around and tells you that it’s different when you turn off the lights to be “green.” He says that you only turn off the lights to be cheap. What’s the difference? Same result, different reason, I don’t see a problem.
-You feel like you could open up your own "dollar store" with all the crap you've bought there over the years. If I hear "mom, it's only a dollar" one more time...
-I can still remember when my brother got “hand-me-down” underwear as a kid. Literally, I remember it. They were “tighty-whities” with tennis rackets on them. I remember telling my mom how gross this was – hand-me-down underwear and thinking to myself that my kids will never wear hand-me-downs. (My brother did refuse to wear the underwear) And now looking back, I can count on one hand how many new clothes I’ve bought for them...however, their underwear is new: I draw the line.
-I can also remember when I was dating Brent how mortified I would’ve been to use a coupon at a restaurant. I remember making fun of people who did that. And now? Before I go out to any restaurant, I google it, I look through the newspaper and I call to find out when kids eat free. I hate going to a restaurant without a coupon.
-You find yourself saying something to your kids that you swore you would never say, because it’s all you heard growing up, but you just can’t resist because it’s so true: “Do you think that money grows on trees?”
Sunday, July 4, 2010
Summer Fun on a Budget for families
If you're anything like me, you want to make the most out of summer but you might not have a ton of extra cash laying around to do what you really want to do.
Here are some ideas for summer fun on a budget:
1. Go to free parks in your community (usually you can find petting zoos or splash pads that are free). Pack a picnic lunch and you're kids will have a great time.
2. Get creative. For example, you could have different themes throughout the summer in your house. You could have a Mexican theme for a week and research games that kids in Mexico play, make Mexican food for meals, etc. You get the picture.
3.Get enrolled in a reading club at your local library. My oldest daughter is going into grade 6 and she still loves doing this. We only get books out of the public library in the summer. That way it's something unique for them and they look forward to it.
4. Use the time you have in the summer to try new meals or bake with your kids. Try new home made slushie or popsicle ideas.
5. Go for hikes. Kids will love exploring new trails in your community.
6. Go to the drive-in movies. Generally, this is more cost effective for a larger family than going to the theatres and the kids love it. Pack your lawn chairs, blankets and mosquito repellant. In our area, they have car load nights so for our family of 5 on a Thursday night, it would only cost $15 to go to the movies.
7. Go to a local beach. Pack your frisbee and some sand toys and the kids will have a great time!
8. Spend an afternoon flying kites.
9. If it's raining, make a scrapbook with your kids.
10. Plan a mini vacation for the kids. We like to be tourists for a day in the summer. There are often great local attractions (that other people are willing to travel a long way for) that we can enjoy practically in our own backyard.
Have fun!
Feel free to post some of your own ideas.
Here are some ideas for summer fun on a budget:
1. Go to free parks in your community (usually you can find petting zoos or splash pads that are free). Pack a picnic lunch and you're kids will have a great time.
2. Get creative. For example, you could have different themes throughout the summer in your house. You could have a Mexican theme for a week and research games that kids in Mexico play, make Mexican food for meals, etc. You get the picture.
3.Get enrolled in a reading club at your local library. My oldest daughter is going into grade 6 and she still loves doing this. We only get books out of the public library in the summer. That way it's something unique for them and they look forward to it.
4. Use the time you have in the summer to try new meals or bake with your kids. Try new home made slushie or popsicle ideas.
5. Go for hikes. Kids will love exploring new trails in your community.
6. Go to the drive-in movies. Generally, this is more cost effective for a larger family than going to the theatres and the kids love it. Pack your lawn chairs, blankets and mosquito repellant. In our area, they have car load nights so for our family of 5 on a Thursday night, it would only cost $15 to go to the movies.
7. Go to a local beach. Pack your frisbee and some sand toys and the kids will have a great time!
8. Spend an afternoon flying kites.
9. If it's raining, make a scrapbook with your kids.
10. Plan a mini vacation for the kids. We like to be tourists for a day in the summer. There are often great local attractions (that other people are willing to travel a long way for) that we can enjoy practically in our own backyard.
Have fun!
Feel free to post some of your own ideas.
Sunday, March 28, 2010
Debt-Free Forever
This post has quotes from Gail Vaz-Oxlade's book "Debt-free Forever." She's the host of the TV show "'til debt do us part." I read her book recently and would recommend it.
All these are quotes by Gail.
When talking about who got you in this financial mess:
"It's your life and if it sucks, you may have had a little something to do with it."
Can't afford a vacation:
"You can still have loads of fun while you save tons of money if you opt for a staycation. That's when you stay at home and pretend you're on vacation. Pick a start and end date for your staycation to make it official. Declare a choratorium - no one has to make their beds, do the dishes or vacuum (consider hiring a cleaning service for midweek to whip the house back into shape.) And pack your schedule full of fun and fabulous things to do locally."
When encouraging her readers to track their expenses for one month before making their first budget sheet:
"This is the step that separates the responsible from the immature, the wannabes, the successes from the failures. Skip it and you might as well go shopping!
On goal setting:
"Once you've set a goal, it's a good idea to create a visual reminder of what you're working toward. Cut out a picture of the home you hope to own and stick it on your fridge. Or tape a small picture of a house to the back of your credit card so you remind yourself of what you're delaying when you go shopping."
According to Gail's life pie, you should be spending 35% of your income on housing, 15% on transportation, 25% on life, 15% on debt repayment and 10% on savings.
If you're giving to your church or charity, then you would have to adjust the percentages to account for that as well.
Gail is a big fan of using "magic jars." She suggests filling 5 jars (or envelopes).
The categories would be: groceries and personal care, transportation, entertainment, clothing and gifts, and other. Figure out your budget and how much you can afford for each of these and then fill the jars each week, bi-weekly or monthly(whatever works for you). When the money is gone, it's gone.
Some last words of advice from Gail:
"Start thinking of a budget as something that tells you what you can do with your money (not what you can't do) and you're seeing the positive side of things. Look at a budget as your plan for how you will spend your money on the things that matter to you the most and now you're fulfilling your dreams."
All these are quotes by Gail.
When talking about who got you in this financial mess:
"It's your life and if it sucks, you may have had a little something to do with it."
Can't afford a vacation:
"You can still have loads of fun while you save tons of money if you opt for a staycation. That's when you stay at home and pretend you're on vacation. Pick a start and end date for your staycation to make it official. Declare a choratorium - no one has to make their beds, do the dishes or vacuum (consider hiring a cleaning service for midweek to whip the house back into shape.) And pack your schedule full of fun and fabulous things to do locally."
When encouraging her readers to track their expenses for one month before making their first budget sheet:
"This is the step that separates the responsible from the immature, the wannabes, the successes from the failures. Skip it and you might as well go shopping!
On goal setting:
"Once you've set a goal, it's a good idea to create a visual reminder of what you're working toward. Cut out a picture of the home you hope to own and stick it on your fridge. Or tape a small picture of a house to the back of your credit card so you remind yourself of what you're delaying when you go shopping."
According to Gail's life pie, you should be spending 35% of your income on housing, 15% on transportation, 25% on life, 15% on debt repayment and 10% on savings.
If you're giving to your church or charity, then you would have to adjust the percentages to account for that as well.
Gail is a big fan of using "magic jars." She suggests filling 5 jars (or envelopes).
The categories would be: groceries and personal care, transportation, entertainment, clothing and gifts, and other. Figure out your budget and how much you can afford for each of these and then fill the jars each week, bi-weekly or monthly(whatever works for you). When the money is gone, it's gone.
Some last words of advice from Gail:
"Start thinking of a budget as something that tells you what you can do with your money (not what you can't do) and you're seeing the positive side of things. Look at a budget as your plan for how you will spend your money on the things that matter to you the most and now you're fulfilling your dreams."
Wednesday, March 10, 2010
Bad Budget Ideas!
Here are some bad budgeting ideas for you to think about:
1. Make minimum payments on your credit card bill.
I have helped people figure out how much interest they are paying on an item that they only make the minimum payment for. It's crazy.
2. Spend more money than you make.
3. Get approved for a mortgage and then spend the maximum that they've approved you for.
This isn't always a bad budgeting idea but often the bank approves people for mortgages that they couldn't possibly afford.
4. Buy things in order to keep up with your friends and neighbours.
5. Don't put any money aside for emergencies.
6. Pay for a vacation after you've returned from that vacation.
A vacation is so much more enjoyable if it's all paid for before you leave.
7. Pay for bills late and then have to pay the penalties.
8. Not being on the "same page" as your spouse when it comes to budgeting.
9. Have no goals for your money.
10. Eliminate all fun.
People think that in order to budget well, that means you must eliminate all the fun you can have. That's not true. Fun and entertainment need to be included in your budget.
Don't Buy Stuff You Can't Afford Video
1. Make minimum payments on your credit card bill.
I have helped people figure out how much interest they are paying on an item that they only make the minimum payment for. It's crazy.
2. Spend more money than you make.
3. Get approved for a mortgage and then spend the maximum that they've approved you for.
This isn't always a bad budgeting idea but often the bank approves people for mortgages that they couldn't possibly afford.
4. Buy things in order to keep up with your friends and neighbours.
5. Don't put any money aside for emergencies.
6. Pay for a vacation after you've returned from that vacation.
A vacation is so much more enjoyable if it's all paid for before you leave.
7. Pay for bills late and then have to pay the penalties.
8. Not being on the "same page" as your spouse when it comes to budgeting.
9. Have no goals for your money.
10. Eliminate all fun.
People think that in order to budget well, that means you must eliminate all the fun you can have. That's not true. Fun and entertainment need to be included in your budget.
Don't Buy Stuff You Can't Afford Video
Wednesday, January 27, 2010
Planning a Vacation?
Are any of planning a vacation this winter?
Here are some vacation budgeting tips:
1. Write out a vacation budget. There are websites that actually have templates for you to use but basically just write out how much you are going to spend on food, excursions, day trips, car rentals, gas, transportation to and from airport, childcare/pet expenses while you're gone, tolls, souvenirs, etc.
2. Once you know how much you will be needing for food and other things, think about how you are going to pay for things. Some options are:
-taking out cash for what you've decided you will be spending on your vacation.
-decide you will stick to your budget and use your mastercard
-put the money on your mastercard in advance so everything is paid for.
-Some people (and I had to check for this) still use traveler's cheques.
It doesn't matter what your system is, as long as you have one.
3. Have your vacation paid off before you leave. There's nothing worse than coming home from a vacation and trying to figure out how to pay it off.
4. If you are on a really tight budget and you still want a mini-vacation, use priceline or a similar website for a night or two at a hotel. We have got a 4-star hotel both in LA and in Toronto for under $40.00 a night. This is great if you know the city you are going to, but don't care what the exact hotel is. If you want to go to a specific hotel, I usually call to make a reservations and I know it sounds weird, but I always ask if there's a lower price and, again weird, there always is.
5. If you're on a budget, try to find restaurant coupons for your destination city.
6. Book your vacation last minute. Try Sunquest website for their deal of the day.
Check Trip advisor to see the reviews your resort is getting - especially if you're booking through the website and not through a travel agent.
7. Give your travel agent your budget and your vacation week dates and tell her to call you once she has something. Don't think that a travel agent is going to rip you off or that you are going to find a better deal. They do this for a living.
8. Travel with friends and split the costs. One of our most economical vacations (and most fun - thanks Bill) was sharing a house with a bunch of friends in Hatteras Island.
Most importantly, have fun with it!
It doesn't matter if you have a big budget or a small one, there is always somewhere you can go. It's not the destination as much as the people you're sharing your time with.
Here are some vacation budgeting tips:
1. Write out a vacation budget. There are websites that actually have templates for you to use but basically just write out how much you are going to spend on food, excursions, day trips, car rentals, gas, transportation to and from airport, childcare/pet expenses while you're gone, tolls, souvenirs, etc.
2. Once you know how much you will be needing for food and other things, think about how you are going to pay for things. Some options are:
-taking out cash for what you've decided you will be spending on your vacation.
-decide you will stick to your budget and use your mastercard
-put the money on your mastercard in advance so everything is paid for.
-Some people (and I had to check for this) still use traveler's cheques.
It doesn't matter what your system is, as long as you have one.
3. Have your vacation paid off before you leave. There's nothing worse than coming home from a vacation and trying to figure out how to pay it off.
4. If you are on a really tight budget and you still want a mini-vacation, use priceline or a similar website for a night or two at a hotel. We have got a 4-star hotel both in LA and in Toronto for under $40.00 a night. This is great if you know the city you are going to, but don't care what the exact hotel is. If you want to go to a specific hotel, I usually call to make a reservations and I know it sounds weird, but I always ask if there's a lower price and, again weird, there always is.
5. If you're on a budget, try to find restaurant coupons for your destination city.
6. Book your vacation last minute. Try Sunquest website for their deal of the day.
Check Trip advisor to see the reviews your resort is getting - especially if you're booking through the website and not through a travel agent.
7. Give your travel agent your budget and your vacation week dates and tell her to call you once she has something. Don't think that a travel agent is going to rip you off or that you are going to find a better deal. They do this for a living.
8. Travel with friends and split the costs. One of our most economical vacations (and most fun - thanks Bill) was sharing a house with a bunch of friends in Hatteras Island.
Most importantly, have fun with it!
It doesn't matter if you have a big budget or a small one, there is always somewhere you can go. It's not the destination as much as the people you're sharing your time with.
Sunday, January 10, 2010
What if my budget isn't working?
So, you’ve wrote out a budget for yourself or at least you’ve thought about it, but it just doesn’t seem to be working.
Here are some things you may feel about budgeting:
1. I hate tracking my expenses. If this is the case, then find a different way of doing your budget, rather than tracking everything. You might need to take out cash every week or month so you’re not always thinking about how much you’ve spent or have left to spend. Another option is you could spend a couple minutes every day looking over your budget rather than hours once a month – which can feel overwhelming.
2. My husband and I fight over the budget. If you’re with someone, you need to work on your budget together. Both people have to agree with how the money will be spent. It might take some compromise or adding things on your budget that you don’t want to.
3. The numbers don’t seem to adding up. Some people put all their expenses down on paper and then find out they are spending more than they make. So, either make more or spend less. These are really the only two options.
4. On paper we are supposed to have money over at the end of the month but we never do. This is more common than you would think. Somewhere you are not being honest about what you’ve spent. You can either be more diligent about tracking your expenses or use cash so that you are not overspending.
5. I cut out every fun thing out of my budget. It’s a lot of work to budget and live within our means, so don’t cut out every fun thing you do every month. Even if this amount is drastically reduced, you can still have some money to have some fun with every month.
6. I’m not good at budgeting. This one I hear all the time. This one sounds like an excuse to have debt. We all have to budget, whether we do it the same way or not. Everyone has to find some sort of system that works for them. It doesn’t all have to look the same, but we all have to budget (i.e figure out our money) whether we are good at it or not.
Here are some things you may feel about budgeting:
1. I hate tracking my expenses. If this is the case, then find a different way of doing your budget, rather than tracking everything. You might need to take out cash every week or month so you’re not always thinking about how much you’ve spent or have left to spend. Another option is you could spend a couple minutes every day looking over your budget rather than hours once a month – which can feel overwhelming.
2. My husband and I fight over the budget. If you’re with someone, you need to work on your budget together. Both people have to agree with how the money will be spent. It might take some compromise or adding things on your budget that you don’t want to.
3. The numbers don’t seem to adding up. Some people put all their expenses down on paper and then find out they are spending more than they make. So, either make more or spend less. These are really the only two options.
4. On paper we are supposed to have money over at the end of the month but we never do. This is more common than you would think. Somewhere you are not being honest about what you’ve spent. You can either be more diligent about tracking your expenses or use cash so that you are not overspending.
5. I cut out every fun thing out of my budget. It’s a lot of work to budget and live within our means, so don’t cut out every fun thing you do every month. Even if this amount is drastically reduced, you can still have some money to have some fun with every month.
6. I’m not good at budgeting. This one I hear all the time. This one sounds like an excuse to have debt. We all have to budget, whether we do it the same way or not. Everyone has to find some sort of system that works for them. It doesn’t all have to look the same, but we all have to budget (i.e figure out our money) whether we are good at it or not.
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