So maybe thinking of a budget makes you feel like I just laid a loaded gun in front of you. It makes you feel like your life is about to end. It’s overwhelming and you don’t know where to start. You are telling yourself
It never works
I am not a numbers person
My income is not consistent
We work hard. We should be able to spend what we want
Whatever your reason for not doing it has been, a budget is undeniably the tool that will propel you into financial success. So let’s talk about where you start.
– Decide you want to do this. If you’re married, commit to one another that you are in this together. If you are single, identify an accountability partner. Consider working with a financial coach.
– Document your income. How often do you get paid? What is your regular pay amount? If you have irregular income, what has been the average?
– Determine what it takes to maintain your home, operate your car and feed your family each month?
– Divide your bank account activity for the last month into general groups (giving, utilities, eating out, groceries, kids, etc)
– Document these things in a way that works for you. A yellow pad. A spreadsheet. A budgeting program. Just keep it simple for now. This is your first budget. You did it!