Create a Budget and Stick With It!
Every money guru say it but how do you do it when you are living paycheck to paycheck? This is the question that faces so many people in today's economy. More and more people are living from one week to the next without thinking about the future. It's okay for a period of time, until you realize that you are sinking without a plan to keep you afloat.
What is a budget?
A budget is a structured plan for incoming and outgoing expenses. Typically, you know what your paycheck should look like. If your check varies a bit, underestimate how much it will be.
How to budget?
- Take inventory of all of your bills.
This is your housing, car, lights, water, ect. Always over estimate these. For example if your water ranges between $80 and & $110, go with $110 on the budget.
- Take inventory of your other expenses.
This is your groceries, gas, clothes, ect. Also over estimate these. It may be helpful to keep a journal of these for a month or two, to give you better accuracy. Always set your budgeted amount out in cash to use. When the cash is gone, so is your right to purchase these items so spend wisely. I use the Dave Ramsey envelope system. He is an amazing money guru. I really love him for all the things I have learned from listening to him and reading his books. Pretty sure he qualifies as my Man Crush Monday #MCM
- Take your income.
- Subtract your expenses from what you make.
If you are like me, you are laughing because you are paying out more than you make. This is okay. You'll get through this. You just have to learn ways to spend less and save more. Try to eliminate some of those bills.