Who says you have to budget? Fogettaboudit.
I don't like the term spending budget either, because if you have an amout to spend, buy x amount of items left over, you will spend not save the rest of the s-p-e-n-d-i-n-g-b-u-d-g-e-t.
Don't even try to conform to a budget. Don't bring up that nasty word again.
Here is what you do. Trust me, I was kicking myself when I finally learned this simple trick.
Monthy Planning
Add up all your expenses for the month:
example:
Rent/Mortgage $1000
Car Payment 200
Car Insurance 100
Telephone 20
Mobile Phone 100
Utilities 40
Total $1460.
1460 / 4 = $365 per week.
Yep. That's it. All you need is 365 dollars a week to cover your basic expenses. If you want to take it a step further, get a seperate account that you only use for your monthly expenses and write checks or may online bill payments to your debtors.
It's just way too easy! Do you feel silly now?
You can also add in food and fuel cost.
Make a shopping list before you go. Average it out and multiply it by 4. Blammo, you have a grocery spending plan. Same thing with fuel.
What I also find is a good idea is to either pay bills weekly or every other week. You make all your payments on the 5th and the 15th or you pay your bills every Tuesday. That way you always know what you have to put aside by your 'pay day' of the week.
Weird how they call payday payday. Shouldn't it be called get-paid-day?
Just Say No To Budgets
Put It In Writing
Putting it in writing is something I did steal from many who write about money.
One thing I have not seen is the "Financial Money Plan", unlike a budget, it gives you a clear direction on how, when and where the money will come from.
Put It In Writing
You need a dollar figure amount and a time that you think that financial plan will come about.
It's not enough to say "I want lots of money".
Do you want $100 in the next hour? Or do you want a million in the bank by age 45. Shoot higher if needed.
So what is your dollar figure?
Is it a dollar figure at all? Maybe it's a car, or new turntables.
Figure it out. Put it in writing.
Work Your Money Plan
The financial money plan is the second part of putting it in writing.
It is just like a business plan, for those of you who are mystified by a business plan, you are going to learn right now.
There are several ways to write a business plan, and the way I'm going to show you has more personality than it's more technical counterpart.
Do all the details on this one, do a rough draft and make it official as possible. You are the CFO of you, and his is a contract that you have with yourself, and the nice part is, you can change it when you see fit. When you have all the details, type it all out so it is an official document.
-Your name
-Your title
Homemaker, car salesman, multi-millionaire
-What your title officially does
Everything under the sun!
Write down what you do as a financial analyst, as a single mom, or what you occupation entails. This is a way to look at what you are doing and testing to see if its really what you want to do or if it is working at all.
-What is your goal?
Was your plan to get out of debt? Or to purchase a new washer and dryer for the house? Did you want to send the kids to grandma while you backpack in Europe, or are they going with?
Start with your plan destination.
-What is your money making plan?
Are you working? If you do work, list your salary and any deductions like taxes and 401k contributions and write down what you have left.
If your not working, but still want to make money, going back to your plan, now is the time to decide what you will do to make money.
This goes for anyone. If you get stuck on this part, make a list of all the skills you have. Can you cut hair? Mow lawns? Do accounting? Are you an attorney on family leave? Did you have a small business you've been meaning to start? Make your list.
Make a list of all the people that owe you money or any tax returns or rebate checks you will receive. You need to incorporate what you have coming to you.
This is the why and how of your plan.
-When does this all need to be done?
Here is your deadline.
Give yourself a reasonable amount of time or realistic amount of money you will have at a certain date.
Type this up and sign it.
This plan can change as often as you like, as our dreams and daily lift shift, you have to learn to be flexible.
If you can, maybe make it a monthly deal to look over your Money Plan and see if it is still in perspective or if you need to start all over again because something in your income has changed. Kids, lost your job, a fire, you win the lottery or get an inheritance.
Not all money issues are bad. Not having your finances in order can work against you in many ways.
Plan Your Work, and Work Your Plan
How come I didn't say you needed a goal?
Goals are so limited. You say "My goal is to be a millionaire!"
Now just think if you would have made plans to be a billionaire.
Do you get it now?
Anyone can acheive Financial Feng Shui. They do not teach this in school, how did I learn? By listening and then creating it.
There is no one cure all financial guru, there are many. If there were an absolute on the matter, all you would have to do is play a Suze Orman book-on-tape in your sleep and you'd wake up knowing all the answers.
Before you get her books on tape, start here. Let me help.
I was tired of not knowing. So I learned. Now I know.
I'm not rich, but secure. There are more people out there more secure, but some that are less than I. There are also those who make more money, but are less secure than those with half their salary.
That is something to think about.
Get Planning
Today, right now in fact, not tomorrow, not in twenty minutes, at this moment...you need to think about what it is you want.
The details fall into place later.
Don't let anything hold you back from what it is that you want out of life. Most fears about money have to do with: taxes, education level, debt amount or what others think about you, obsession over your weight, your girlfriend seeing your brother. Whatever. Don't get sidetracked. Those are details that you will deal with at another time.
Live in the moment. This Moment.
What do you want for yourself? Is what you want financial at all?
A house for your family? An education? To help others in your community or abroad? A multi-million dollar corporation? A mom-and-pop business and a house with a white picket fence? To travel the world or to not have an occupation at all.
Trust me, if you don't have your finances under control, you will never get around to the endeavors you want to engage in.
You have to decide, you and only you.
If you are married, you need to separate your goals individually between family and your own personal dreams. Think about what you want, then ask your loving husband or wife to do the same. Purge your ideas. What are you two working for? Find out.
It can be done.
Plan your work, and work your plan.
What is it that you really want?