Budgeting – The Big Task.
Budgeting is like exercising. Everyone thinks its a good idea. You could spend hundreds just getting started with accessories and equipment. You could spend hours every day trying to get the most out of it.
For most of us, we don’t have the resources to spend hundreds on startup costs. That’s why we want a budget in the first place!
The truth is neither budgeting nor exercise is difficult. Don’t get bogged down by the more advanced methods if you haven’t even started yet. It’s simple. Keep it simple.
The two most important things about a budget are that you
- Plan it out
- Stick to it
So start small, get a pencil and a piece of paper. Maybe even a calculator. Start with the amounts you have decided to give and save. Those should be priority 1 – otherwise you won’t get to them after all of the other expenses. Like we talked about on Sunday, we would recommend you start with at least 10% for each. Then, figure out what it takes for you to live (food, etc). Figure out what you owe (utilities, mortgage, credit cards, etc). Then figure out what you take in. From there, it’s a simple task of making sure the outgoing numbers don’t exceed the incoming numbers.
There are numerous ways that will work to help you keep a budget. You can do Dave Ramsey’s Envelope System or a simple free tool like Mint.com that grabs your transactions from all of your accounts and shows you how you’re doing on a budget. Thirty seconds on Google will give you all sorts of free tools and ideas.
Whatever you decide to do, do it. Keep it simple. But use it.
Now, go outside and take a walk.
There, you’ve just conquered budgeting and exercising in just one day. Now, the next topic will be quantum physics.