Budgeting for Beginners

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May 16, 2019
Budgeting for Beginners

Image Copyright Ted Grussing Photography – Used with permission

BUDGETING – What a drag!  Just the word causes a rise in blood pressure and shallow breathing.  Married couples might think it a straight path to arguments and singles might view it as a big, heavy chain – with a lock!

But just possibly a well-planned budget might be just the opposite.  If well-planned with purpose, teamwork and dedication, it could free you of countless anxieties.  Remember the old adage, “an ounce of prevention is worth a pound of cure”.

Start with a list of your budget items in the order of their importance to you.  If you are married, it is essential that you create these priorities together.  If you are single, you might want to consider seeking the advice of someone who has successfully mastered this concept.  The following is just a suggestion for budget items:

  • Savings/Contributions
  • Mortgage/Rent
  • Groceries
  • Utilities – including phone
  • Auto/Transportation
  • Paying off debt
  • Entertainment

Whatever your priorities are and no matter how disciplined you intend to be, remember that life is full of surprises.  Therefore, you must always provide a category in the budget (Miscellaneous) for gifts, birthdays, anniversaries, new births, promotions, holidays, etc.  AND, if you are really serious, you need to cut up those credit cards, gas cards, department store cards – stop using them!  That way you can, hopefully, eliminate the category for minimum payments.

Now, you are on your way, in agreement, focused and – confused – right?  Well, if you have seriously invested the time and energy into this budgeting process, you are extremely vested in its successful implementation.  You understand that successful money management not only helps keep money anxieties at bay, but could very possibly keep you from impulse buying and allow for better cash flow.

Give yourself a lot of credit and be kind. It will take a few months to settle in to this routine.  But it’s like any other routine or habit, once there it can make your life so much easier. Have a great weekend!

Source:  Cruze, R. (2018, November 24). 15 Practical Budgeting Tips. Retrieved from https://www.daveramsey.com/blog/the-truth-about-budgeting