Budgeting for Financial Health
by Cathy Cresser on 18/04/10 at 10:29 pm
In my last post I talked about taking responsibility in managing money. Budgeting is essential. This is something I didn’t do seriously for a long time. I did contribute to all the investments that my co. had to offer and I didn’t have to think about them. My money was automatically taken from my pay and these funds were managed by someone else, so that was the end of it for me. I didn’t pay attention to those expenses that come up a few times a year. If I needed or wanted something I didn’t have the money for I would work a few days overtime. I was so busy working and taking care of others I wasn’t taking the time to take care of myself and educate 
myself about my money.
In order to live within your means and to achieve the goal of ultimate financial health, you need to first learn the basics of budgeting.
In the beginning, the concept of budgeting may seem like a tough skill to acquire, but by learning to say “no” to all those momentary demands, you can succeed in starting your own budgeting system.
The Budget
First, you need to check on all your avenues of income. In most cases, both the spouses contribute to the family fund. Note down the exact amount flowing in every month. Apart from the direct earning resources, you will also need to include the interest income, the incentives and bonuses you receive from time to time, and also the dividends you cherish.
Next, you need to prepare a thorough list of all your expenditures. As financial planners suggest, you need to prepare sub heads and consider the amount that gets spent into those segments each month. This will probably include the living costs, transport, schooling and educational expenses, food and entertainment expenditures. Hefty investments don’t occur often. It is possible that you had refurnished a portion of your house and bought a new car in the same year. If so, write those down separately.
Now you have to look at ways to stop that extra money flowing out unnoticed. Chalk out what you need exactly. You can do away with frequent dining out; you can reduce on the junk food stocks and switch to cooking cost efficient healthy alternatives, for instance.
The best way to start budgeting is to pay your bills on time. Note down your savings and try improving that figure for a better future. You don’t need to be a miser, just save in time! Your savings will come in handy at times of emergency.
Lastly, to make things easier, pick up part time jobs if possible. Or a better alternative is to look at a home based business. Just ask me. I stopped all that overtime and extra jobs.
Beverly Monical
Apr 20th, 2010
Great Advice here. Budgets are so good but not always easy to follow. If more people made budgets I believe financial issues would be very small.
Thanks Cathy!
.-= Beverly Monical´s last blog ..Dr.Kaats Interview About Pedometers =-.
Paul Klaszus
Apr 22nd, 2010
I had a mentor of mine tell me… it’s easier to budget the more you make..
You, Cathy are on the path to easier budgeting! Thanks so much for being YOU!
.-= Paul Klaszus´s last blog ..Rollin’ with the Punches! =-.
karin
Apr 22nd, 2010
It has always amazed me how big an effect it has to see in writing what you are spending. It is shocking how we can fool ourselves into thinking that we are not spending as much as we are, simply by not keeping careful track of spending. Your advice to budget carefully is a sound one. Thanks for reminding us.
.-= karin´s last blog ..This is the best one-way backlink you can get! =-.
Cathy Cresser
Apr 25th, 2010
This was one of my issues, I never really believed I was spending as much as I was! Thanks Karin.
Edward
Apr 24th, 2010
Hey Cathy,
Great post. Thanks for the tips and suggestions.
Look forward to hearing more about your journey.
Make it a great day!
God Bless,
-ed
Matthew Neer
Apr 25th, 2010
Managing money is absolutely key Cathy. What you put your attention on grows, and what you don’t decays. Therefore, by making it a point to manage your money you will effectively create more of it.
Great post, rock on!
.-= Matthew Neer´s last blog ..The Proper Follow Up Creates A Fortune =-.
Cathy Cresser
Apr 25th, 2010
Thanks so much Matthew! I learned this late in life but I know that it is never too late and now having the best time!
Lynn Glaser
May 29th, 2010
Hi Cathy,
I like that you say “Financial Health” it’s a term that really sums up what you’re talking about. You really do need to keep your finances healthy and a budgeting system is just what you need. Great insight.
Cheers, Lynn
.-= Lynn Glaser´s last blog ..Tribe Concept Teaser – Here’s What Can Be Achieved =-.