It’s a new year and many of you are gearing up for changes. You might have even made resolutions or goals in the past few days.
I bet a burrito that your resolutions are somehow related to money, career, health, or relationships? Did I get it right? BURRITO for me! I was going to eat one either way. (Map to the nearest Chipotle Burrito)
Let’s talk money. If you are going to do money right, then you’re going to have to start budgeting.
I know that word makes you a bit queasy. There is a pill for that or an app for sure, but that’s for another post.
What is a Budget?
It’s very simple. A budget is a basic tool to tell your money whose pocket to go into. Should it go to your landlord, local barista (I prefer Peet’s if you are new here), local grocer etc. A budget pre-decides how your paycheck will be spent.
“That’s not fun!” “I don’t want to be put in a box.” you’re thinking. Well, you know what’s also not fun? I’ve made a list for your connivence.
10 Financial Situations that are Not Fun (Due to not Budgeting)
1. Those money fights with your spouse when bills are due.
2. Bouncing checks and paying bank fees with money you don’t have.
3. Having your debit/credit card rejected.
4. Loosing sleep because you are worried about money.
5. Not being able to make the mortgage or rent.
6. Having to work extra years because you didn’t budget enough for retirement.
7. Seeing the repo man drive off with your vehicle.
8. Telling your kids they are on their own for college funds.
9. Bill collectors calling about your unpaid credit cards or medical bills.
10. Still paying for Christmas gifts 6 months later.
Are you convinced you should budget? Are you going to make time each month to pre-decide where you money goes?
Action: If you are ready to start budgeting, start by writing your commitment in the comments below. Stay tuned and I’ll show you how to budget.
(Photo by Lisa B.)
[This is part of my How to Budget Like a Pro blog Series]