Thanks for voting!Clever Dude busts some common myths about budgets and uses a handy metaphor to make his point: seatbelts. They’re designed to protect you, yes. But they can be a little uncomfortable and constraining at times, too.
Sound like your household budget? It can give you peace of mind but living by a budget to the penny – every day – can get a little cumbersome. Here’s a better idea. Use a household budget as a guide to help you complete your financial picture. That’s the best part about budgets. They’re yours to own. And you make the call as to what’s working and what’s not. So how do you live by one without feeling like it’s taking over your life? First, think of it as a really big receipt. A budget can help you understand where your hard-earned dollars are going. Then, adapt as needed. Sometimes we all need to dial things up and down a bit to even them out in the long run. So definitely write your budget, but not in stone. As your life changes, so will your budget.
Tags: Budget
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I use the envelop system. I have envelops with names like food, entertainment, gas, vacation, clothes, dogs. Each month I do a budget listing priorities first to get paid and allotting the money from the paycheck all the way down until it is gone. I take the amount I have allotted for the above items and put it in the envelope each paycheck. When the money is gone ITS GONE no more spending on that item unless I am willing to give up something else.
This has allowed me to save heavily, to drive less in high gas priced times, and to take vacations without the debt following me home.
One of the easiest ways to create a budget is to have three accounts (two checking and one savings). You will use checking account #1 for all of your monthly bills (utilities, rent or mortgage and any other monthly payments). You should also use direct deposit for this account. Checking account #2 is used for all of your other purchases (groceries, auto, entertainment etc.). Lastly, if your employer allows you to split your direct deposit between two accounts, set aside a specific amount each month to be put into your savings account.
This is how the budget works. After you pay all of your monthyl bills using #1 checking, transfer the remainder of it into #2 checking. This will be how much you can spend on all of your other purchases. This takes a little will power, but you cannot transfer in more money until all of your bills are paid. If after your purchases are done for the month and still have leftovers put them into the savings account or use them to help pay down some of your debts.
Hi! I like your srticle and I would like very much to read some more information on this issue. Will you post some more?
Thanks a bunch, Gary. Glad you enjoyed this post. And yes, you can expect more on budgeting, saving and a whole lot more. Check back with us early and often. We try to post at least 1 new article each day.