Money is the key to end all your
woes, Your ups, your downs, your highs, and your lows. Won’t you tell me last
time love bought your clothes? - Run DMC, “It’s Like That”
Having money's not everything. Not
having it is. - Kanye West, "Good Life"
Like it or not, cash rules
everything around us. An understanding of finances is necessary to survive and
thrive. A budget is your first step towards success. Tell your money where to
go and you won't wonder where it all went. Here's how:
- Write down how much money to bring in each month, after taxes. Count everything! If you have a tip-based job (like bartending) just keep track for few weeks and average it.
- List all of your expenses. ALL OF THEM. Look at your bank statements, receipts shoved in your purse, credit card transactions, everything. List them one by one, and then categorize them. (groceries, dining out, etc.)
- Subtract the expenses from the income. Anything left over? Yes? Good job! Put that money in savings or pay down debt -- make it work for you. No? Let’s fix it.
For most people, budgeting comes
into play once they realize there is usually too much month left at the end of
the money. Do you ever pay for your groceries with a credit card because you
don’t have enough in your checking account? You need a budget.
Take a look at your spending, where
can you cut back? Do you buy a coffee on the way to work every day? Don't.
Buying lunch? Pack it. Paying for a gym membership that you never use? Cancel
it.
This is all really easy to do - on
paper. It's putting these thoughts into action that can be tough. If you
struggle and slip up, don't feel bad! Just do better the next day. If you need
to leave your debit card at home so you can't buy a latte, then do it. Whatever
works, right?
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