What makes a budget worthwhile? Have you ever thought about what makes some families a success and when others are not. Why are some families around for years and other are not? Well I find the family system to be a lot like businesses or the other way around. For decades I have heard over and over the number one issue that frustrate families is managing finances. Guess what, this may not even be a surprise to you. However, what follows are some thoughts on creating a budge.
A budget can help you if you stick with it. I’ll say it again, stick with it. Buy the way, keeping it simple is a good idea. A phrase I have heard over and over through the years is live within your means. The good news is there are several ways to stabilize your finances. I don’t recommend taking more credit. Instead, consider getting a part-time job or start a business. That is important to understand. Living within your means can mean many things, but remember were keeping it simple. I
Here are five things you can do to establish a budget.
- Don’t be a “I must have it now” person.
- Plan the purchase of irregular expenses such gifts using a calendar with start date and a completion date in mind. Extend the completion date if needed.
- Write down your budgeting goals using a method that will help you remember to check your goals on a weekly basis such as putting a calendar up in the bathroom where you can see it daily or put a white board up in your room near your mirror. No matter where you put it, it needs to be in a place you frequent more than once on a daily basis.
- Know your seasons. Some expenses are variable and some are fixed. Some monthly expenses increase or decrease with the season. For example, usually heating expenses are more costly than cooling expenses. I find that gas is more expensive in the summer months than in the winter months.
- One of the most valuable budget suggestions is to develop an” Emergency Fund”. The key to an Emergency Fund is to immediately return the funds after use. It can be difficult to do, but you can do it if you ignore the other temptations. Yeah, temptation is the mother of all failures. So what events do I consider to be worthy of an emergency funds? Vehicle expenses come to mind. Paying for tires, oil changes, or even an unexpected insurance deductable.
So, many successful people invest in a well thought out budget. It is frequently visited and updated with current life events. Keep in mind planning and employing your budget is everything. Emergencies do occur so, why not be prepared and reduce your stress levels.