Budgeting
We spent July “Conquering The Clutter.” In August, we focused on getting some extra “Face Time With The Kids.” (If you’re new to Happy To Be At Home, you can click here to find out what our six-month “End 08 Great Challenge” is all about.)
But this month, we are challenging all of us to get our financial lives in order. If you’re like me, this is something you always think about doing, but never fully commit to because it just seems too overwhelming. Well, during September, that’s all going to change! Together we can encourage and inspire each other to keep at it and get those finances fixed! We hope you’ll join us in this “Fixin’ Our Finances” challenge for the month of September.
Now let’s get to those finances!
First of all, if you are married we encourage you to work closely with your spouse on this challenge. Why not use it as an excuse to fit in some extra quality time for the two of you as well?
This week I want to focus on getting a budget and tracking your spending. Last year, when we decided it was time to get out of debt the first thing we did was try to figure out where our money was going. You can track your spending with Quicken or MS Money, or you can do it the old fashioned way by writing it down on paper. Although I currently use Quicken, when we were getting out of debt I used the pencil and paper method. There was something about writing every single expenditure down on paper that made an impact on how I thought about money.
The next step is to create a budget. I realize that “budget” can be a bad word for some people. It shouldn’t be, if you don’t like the word budget than call it a spending plan, but you need to start telling your money where to go. Below are a few links to some free budget worksheets.
Many financial planners recommend a zero based budget, which means you assign every penny that comes into your home a place. At the bottom of your budgeting forms your income should equal your expenses. This does not mean you spend all of your income, saving and giving fall under the expenses category.
Creating a budget is the first step to Fixin’ Your Finances. Without a plan, you will waste money and opportunities.
Next week let’s explore ways to trim our budgets!
If you’re ready to start Fixin’ Your Finances, this is the perfect opportunity. Whether you’re a blogger or not, to participate in the challenge, you’ll need to let us know what you’ll be working on by doing one of the following:
- If you own a blog, write a post on your blog. Use Mr. Linky to link your Fixin’ Your Finances.
- Leave us a comment telling us about your challenge.
- Email us about what you’re doing for the challenge
Then we’ll share your plans and ideas (and a link to your post if applicable) in another post on Happy to be at Home.
There are four months left in 2008 for us to end the year on the right foot. We hope that this series has helped you to focus on what is important, to do what is necessary, and feel in control of your life.
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