I like to manage the money but it still does get me confused sometimes. I take that opportunity to read more books and try to understand the things that I didn't get. I over think things and it get confused quickly when I get down in the details. Many experts say that most women don't like to hear about money because it upsets and confuses them. I am very sad when I read that because I hope that all women are strong and take part in their financial future whether when they are young and growing up or older in a relationship. hope that you aren't one of those people who gets confused or overwhelmed but take a deep breath and step back. Don't over think and read a few websites or books to find some answers to questions that you have.
More questions are raised when you think about things.... Do you get to count your interest paid as savings or do they want you to put an additional $375 per month in your bank account or the difference if your interest isn't that much? Do you get to deposit your tax returns and call them savings for the year? Do investments count as savings like adding to a 401K or other retirement account?
None of these decisions are life of death. I count all of my expenses and money going out at the top of the spreadsheet. I track all of the money coming into the house at the bottom. At the end of the year, I look at the total difference and determine how much my bank account should have increased. If the total is close to the same then I know that I did a great job. If the total is drastically different, I know that I have to do something better to track the difference in the figures.
The first year is always the toughest and each year I customize the spreadsheet a little better to fit what we have going on. We added our FSA (Flexible Spending Account) checks to the income. It is part of the money that we get back after filling out all the forms because it is taken out of my husband's pay check pre-taxed.
I like to say to make a rule and stick to it. If you are going to count your interesting from your bank accounts, list them for the whole year. Don't stop because it is too much work to add it monthly.
What do I have to give up to stay on a budget?
I hope that you look only at the numbers to see what things add to and don't think about giving up your morning coffee and lunches out to make the budget work. There are always ways to fit things into a budget but you just have to make your priorities.
My cousin wanted to get her nails done but she couldn't go every week because it is cost prohibitive. If you can go 4 weeks, stretch it to 5 weeks and see if you have any negative impact. My cousin wanted to have her nails done and figured out by adding a week and another week what the longest she could possibly go was and made that her new budget. My sister in law liked to get her hair cut and dyed so she did the same thing to stretch the time between appointments.
You don't have to go without but you just have to go with moderation. It is best to cut back right away and figure out what you can add back in. It is almost like a diet because you think that there is one thing that you will really miss but you miss something totally unexpected. Eating lunch out with colleagues, the afternoon snack from the vending machine or a bottle of soda when you are checking out at the store.
If you plan ahead, anything can be created cheaper. Create a different lunch with your friends at work. Bring lunch and eat together in the lunch room or find a place near the office to have a picnic. Decide to do a pot luck where a few friends bring things from home to share. Wouldn't it be great if you brought a crock pot of soup to lunch which cost you less than a meal out and all of your friends enjoyed it. You like to pick up a snack or a soda at work but it is much cheaper if you buy in larger quantities and bring it with you. I always have ice tea, water and snacks with me because you never know when you will be caught needing some food. If you have fresh tea and homemade cookies, you won't be tempted to see what high calorie and expensive snacks Starbucks has to offer. You spent very little and still have a great snack while saving valuable budget!!
Do you feel like you deserve all of the things you are currently doing? Do you feel like you work hard so you should be able to eat out and spend money?
I hear this one the most often and I am not sure where it comes from and you need to take it out of your vocabulary. Whether you say it or think it, stop!!
No matter what you are doing for a living, you work hard. I don't doubt that you work hard but if you can't afford to spend the money and are going into debt, you need to figure out what you can afford. If you can't afford all of the things that you are doing now, you can't have it. Just because you work hard doesn't mean that you deserve to get anything.
Everyone works for what they have and you don't deserve what your neighbor has. Nothing about this life is about keeping up with your neighbors but just keeping up with your needs. Balancing your budget means that you can get what you need and a plan the things that you want. Work your budget and you will have a happier and easier life!!
Stay positive and creative and you will not be giving up anything. Just change your point of view and do some planning!! I promise that it will be well worth it.
If you are interested in this post, here is the link to all of the posts in the series:
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