Budgeting for your Wealth 

What?! I Have to Budget?!!

I know that everyone wants a big screen TV and all the fancy electronics but when you’re just starting out, it’s just not possible – Unless you’re independently wealthy or just won lotto!

Your basic needs will be shelter, food and clothing. No, that doesn’t mean high-style, expensive clothing! LOL
 

Budget Is Not a Dirty Word!

It's much better to know what you have to spend and what you'll be spending it o n, than to start writing checks and have checks bouncing everywhere!

In order to make smart choices about how to spend your money, you must have a budget. A budget lets you to keep control of on the flow of your money -- how much is coming in and where it goes out. With that information in hand, you can make intelligent choices about how to spend.

Plan Your Treats

You may have to sacrifice some things that may seem necessary, but don't expect to stick to your budget if you tighten your budget so much you can't eat out or buy a magazine occasionally.

Try making a list of things you feel you can't live without, and whittle your other expenses down to accommodate them.

For example, you may decide to give up most of your magazine and newspaper subscriptions because you know you'd go nuts if you couldn't go to the movies once a week.

If you make room for at least some of the things you love most, you're much more likely to succeed at your plan.

Budgeting - The Short Way

You really want the short version? Here it is: Avoid Starbucks, fast food restaurants and high-end products. Follow a list when shopping. Eat out only once or twice a month and pack your own lunches the rest of the month. This simple formula will will help. But if you want to set up a real budget, go to my How to Create a Budget page.

Keeping On Track

Don't think of your budget as etched in stone. If you do, and you spend more on an item than you've budgeted, you'll only find yourself frustrated. Use your budget as a guide. If you constantly overspend in an area, you need to change the projected amount for that category -- without berating yourself. Keep in mind that a budget is designed to help you recognize what you can afford; it's not just an exercise in filling in the "correct" numbers. Check your figures periodically to keep an eye on how you're doing. If you never have enough money to make ends meet -- you're using credit cards and not paying the balance in full each month -- it's time to adjust some more.

If you continually come up short, you may need to consider some larger changes. For example, you might sell your newer car for an older used car to free yourself from car payments. As you make adjustments to your budget, give careful thought to your priorities. Everyone has different ideas about what luxury is, and different feelings about what they're willing to give up and what they just can't live without. Think about what you value, and be honest with yourself.

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