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Are You Ready To Budget Like A Rock Star?
When I say budget like a rock star I mean budget like you have a fool proof plan to make your money work for YOU! It’s your money make it work for you, tell it where to go!
The word budget has this scary over tone but a budget is an amazing tool to grow your wealth, structure your spending and it can get you out of DEBT. Trust me.
In today’s post I am going to break budgeting down for you in to real easy steps so you can Budget Like A Rock Star and tell your money where to go and make it work for you.
First, You need to be HONEST with yourself and with your bills. Don’t skip or hide a bill under the pile make sure all your bills and spending habits make it to the budget.
Second, if you are a couple join forces with your spouse, set your budget together. Two is always better than one. Yes, you may disagree but you are in this together and you need to jointly make your money work for you.
Third, You need to write your budget down. NO budgeting in your head. Write it down, check it, go back to it, alter it till it works. USE your budget as your guide.
Fourth, understand that your budget is a work in process and will change month to month, sometimes week to week. You may not get it fine tuned in the first month or the second. It will come and YOU WILL BE BUDGETING LIKE A ROCK STAR.
Let’s get budgeting…..
First, get all your bills for the month together. You will need your bank statements, your telephone bill, cable bill, gas bill, coffee and entertainment bills. Anything you spend money on grab the bills or receipts for them and pile them together. If you are doing this budget as a couple bring them all. All the bills for both of you, no hiding, bring them all.
Got them? Great.
Second, You need to organize them put all the like bills and receipts together. Why? Good question, I am guessing that there are several gas receipts in your pile, a few meals out, maybe two or three trips to the grocery store and possibly a telephone bill or more. Organizing them gives you a better idea at how much you spend on items such as gas, meals out and entertainment to name a few. Besides being organized will make budgeting so much easier.
Third, tally them up. Add up all like piled receipts and bills and write down what you find.
How much did you spend on:
- Rent or Mortgage?
- Telephone/Cellphone Bills?
Keep this list and the bills, put them aside for a few minutes.
Fourth, write down all your forms of income. This includes your 9-5 pay cheque, any side hustle jobs, government or assistance money, child support any forms of money that comes to you during the month. Write it down and add it up. If you are doing this budget as a couple this will be your combined income or monies coming in. Be honest.
Okay now the fun stuff……let’s set up your budget.
In step four you tallied up all the money you have coming in each month to put toward your bills, your savings and your future. Got the number? Good this is all you get, no more you have to make it work for you.
- Grab a new sheet of paper and write this income amount on the top.
- Now list your expenses, your bills and receipts (ie. gas amount, meal amount and etc.) down the right hand side with the amounts next to them.
- Subtract the bills from the income amount.
Do you have income left over after your bills?
Yes, great put it toward your savings. Or pay it forward and help others it is your money tell it where to go.
No, you didn’t have any income left over and you didn’t have enough income to pay your bills. Okay don’t worry head back to your budget.
If you didn’t have enough income to cover your bills you are going to have to cut down on your expenses or find ways to increase your income. Checkout our posts on 25 Great Ways to Make Extra Money or 50 Ways To Save Money. In the mean time rewrite your expenses on your budget in order of importance. Rent/mortgage and food at the top of the list, then gas, clothes and etc. followed by the minimum payments on all other debt bills. If there is money left over after this new list put this money toward paying off the smallest overall debt. For example the credit card bill for $250 or the outstanding long distance bill for $50.
Each month will be different.
Each month your budget will be different, your bills will be different but your budget plan will be the same add up your income subtract your expenses (bills) and budget from there. Stay true, be honest, move forward. Budget Like A Rock Star.
Remember to budget in time. Time for family, time for yourself, time to focus on the task at hand and time to get it done. Budgeting and paying down debt doesn’t happen over night it is a process and you will Rock It.