Today’s ProTip comes to you from our very own Josh Brossia!!
Budgeting has gotten a bad rap. It’s not meant to be the “no fun” or “I can’t do that” part of your life, but it does create intentionality while setting you up success and freedom.
Sample Budgeting Form – Budgeting Form
However, like in any good relationship, you have to spend time with your budget, make sure you’re communicating clearly and doing what you say you’re going to do. This will allow you to spend money with confidence while making progress on achieving your goals for the future – whether that’s getting out of debt, saving for retirement, or just trying to keep your grocery bill from getting out of hand.
5 Practical Budgeting Tips:
- Budget to zero before the month begins.
You make the plan by giving every dollar a name and a job to do before the month starts…stop letting your money drift away and wondering where it all went at the end of the month.
2. Start with the most important categories.
First are the Four Walls: food, utilities, shelter and transportation. Once your true necessities are taken care of, you can fill in the rest of the categories in your budget. (Weird, I know, but your smart phone isn’t a necessity.)
3. Don’t be afraid to trim the budget.
When you know where your money is actually going, it may mean having to trim back in the short term to win in the long term. If things are tight right now, you can save money quickly by canceling your cable, eating out less, and shopping at discount clothing and grocery stores. Remember, your budget cuts are only temporary. You can always make adjustments later on.
4. Be content and quit comparisons.
This is tough, especially as we cheerfully give and save instead of spending all we have. However, you have much more than you realize. Don’t compare your situation to anyone else’s. Comparison will not only rob you of your joy but also your paycheck. Keep moving forward and doing what’s right for you and your family.
5. Have goals.
Whether you’re paying off student loans, building up your emergency fund, or paying off your mortgage, you need to focus on your why. What’s the reason you’re making these sacrifices?
In the budgeting process be sure to give yourself lots of grace.
It usually takes three to four months to get a handle on this whole budgeting thing. It won’t be perfect the first time or the second. But you’ll get there!
Budgeting and winning with money can be done! These tips and more are available through Dave Ramsey’s Financial Peace University, and I really believe it’s one of the best investments you can make in your future. I’d love to have you join my group this semester.