Blog: Busy Moms Can Be Organized Too
IT'S MORE IMPORTANT THAN EVER TO BUDGET YOUR MONEY
Unless you are living under a rock or in a cave, you know and are well aware that we are in the midst of an economic "crisis". This scares many people. The fear of losing your job, your home and/or your investments can be overwhelming.
However, the one thing I have observed recently is that this "crisis" is forcing people to stop and think about their particular financial situation and have a desire to become more aware of where their money comes from and where it is going.
Currently there are over 600,000 people per month in the United States applying for unemployment compensation. Of the nearly 52 million U.S. homeowners with a mortgage, about 13.8 million, or nearly 27 percent owe more on their mortgage than their house is now worth, according to Moody's Economy.com. Most people have seen their investments and retirement funds decrease by approximately forty percent. The average American has approximately $10,000 of credit card debt. No wonder everyone is scared.
Many have attempted to cut back on spending in order to make ends meet and attempt to get out of debt. However, without a plan in place, you cannot be successful. If you do some research, you will find that many financial advisors and other "experts" have put together systems for creating a solution to your budgeting woes. I have found them to be very complex and time consuming, discouraging most people from utilizing them.
In order to successfully create a plan for financial success, you need to create a budget. A budget will provide you with a way to not only analyze your income (by way of a pay check, investment rental properties, alimony, child support, governmental benefits, etc.) but will provide a visual aide to see where the income is going. You cannot budget your money if you don't know where it is going.
So, how do you begin to even create a budget, you ask? You will need to determine your income, determine your expenses and then create your budget based upon that information. This can sometimes be a complicated and time consuming process.
You will need to determine whether your monthly expenses exceed your monthly income. Does your current problems involve the inability to save month each month? Do you wonder where all your money is going each month? Do you feel that your life is getting out of control because of your finances?
If so, you need to develop a personalized budget so you can better manage your finances. Ask yourself - "How can I possibly manage my money if I don't have any idea where it all goes each month?" The answer - you need to become more disciplined with your money.
Many people make the mistake of cutting back so drastically that there is nothing left to enjoy. Many get caught up in the "this minor expense won't matter" syndrome. Before you know it, "these minor expenses" are added over and over throughout a month and before you know it, they really add up. This is sometimes where overspending occurs. And, don't forget that budgeting needs to include saving money. Planning for those things you enjoy makes it much easier to stick to your budget in the long run.
You may ask why it's so important to record all of your expenses. It's important because, if you don't track your expenses, eventually they get out of control. You need to have a system and it needs to be documented.
Now, more than ever, everyone is looking for that simple way to manage and budget their money. No one wants to take time to work with a complicated system.
No one has the time!
Take the first step now. Acknowledge that you need to get on a budget and commit to finding the support and tools necessary to get it done!
posted on: 4/16/2010 8:30:00 AM by Audrey Cupo
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