Get Your Money Right: Love Your Budget

Let’s be honest: budgets have a bad reputation. Maybe budgets have burned you in the past. Spreadsheets can be awfully intimidating when you first open one. Maybe you think budgets = the death of fun.

Budgets can be the key to breaking bad financial habits and setting yourself on the path to really reach your dreams. By getting your financial house in order you can unlock new income streams, redirect spending to work for you, and build a savings buffer.

We made things super duper easy for you by creating a personal budget spreadsheet for you. Grab it right here.This is just an outline, so go ahead and make this as personal as you can. Not everyone needs a mortgage payment box after all.

Having the right spreadsheet is step numero uno in getting your money right. Use these four other steps to help get your money in tip top shape.

Identify Your Money Goals

It’s hard to work towards something if you don’t understand what you want. Saying that you ‘want more money’ is vague and will probably lead nowhere. What do you need more money for? Is it to pay your bills comfortably? Build up savings? Buy a new car?

Be specific about what you want to do with your money. Writing down goals is a great way to clarify what you’re trying to work towards. Start small: pick two goals that you want to accomplish this year. It can range from paying down your debt to saving money for a trip. Identify your money goals before you take any other step towards achieving them.

Differentiate Between Your Needs and Wants

A need is very different from a want. You need food, a place to live, clothes to wear to work, and a way to get around. You want clothes for a party, a convenient way to get around, and late night snacks.

We’ve identified your basic needs in our spreadsheet, but it’s important to tailor your spreadsheet to your life. Everyone’s financial picture looks different because everyone’s life looks different. If you have a child, childcare might be a need for you, but internet may be a want. If you work from home, internet may be a need, and a car might be a want.

Make a list of things that you would quite literally die without. Those are your needs. Everything else is a want. Once you have your two lists you have the starting point for understanding where you’re spending your money. From here, you can identify areas that you can cut back in to save money.

Steer Clear of Spending Triggers

Spending triggers come for us all. Money is deeply personal on every level and spending triggers are at the heart of that. Understanding what you spending triggers are is the first step to taking control back from them.

Whether it’s stress, your boss coming down hard on you, talking to family, or feeling like you ‘deserve’ something after a long week, spending triggers can cause a lot of financial damage in the long term. You might be able to recover from one shopping spree, but if your don’t get them under control, that one spree will turn into many more.

Once you know what your triggers are, practice avoidance as best as you can. Try stress relievers like aromatherapy and not checking email past 7pm. Make specific plans to talk to family members and don’t let them intrude on unscheduled time. Find a way to reward yourself with hard work that works within your budget.

Read the full article at: Kara Perez, www.bravelygo.co/ 

September 26 2017 By Kara Perez, www.bravelygo.co/ Financial Planning