Budgeting may not a dirty word, but that does not stop most people
from treating it as if it were. Take my budgeting class for example; I
take on 10 new students each month, and at least nine of them look at me
as if I grew three heads and screamed obscenities from each of them
every time I utter the "B-word". However, budgets do not have to be a
hassle when you know how to manage one effectively. -And I honestly only
have one head.
Choose your weapon, and make it an easy-to-use weapon.
Personally, my weapon of choice is the spreadsheet. The funny thing is that the word "spreadsheet" invokes almost the same glazed over look with my class as the word "budget" does. Many of my students claim that they do not have the foggiest idea about budgeting using spreadsheets. Thankfully, it is not rocket science.
Microsoft gives its users a plethora of free resources, and all you need to know in order to use them is how to click a mouse and input numbers on your keyboard. I use the already made excel templates as examples for my class. I have downloaded household budgets, enterprise budgets and a wide range of ready-to-use, formula complete spreadsheets in seconds and with minimal difficulty. If spreadsheets are not your thing, there are numerous other online (free) budgeting resources at your disposal.
Get control of your variable expenses.
Once the budget is out of the way, the hard work begins. However, that hard work is only a "hassle" if you make it into one. Most people I work with are savvy enough to define their monthly recurring expenses with remarkably little trouble. They can plug in a house payment, car payment, insurance premium or other standard invoice with ease. The thing that seems to trip most folks up are their variable expenses.
Things like groceries, gas, utilities, or cell phone bills are the items that cause a novice to throw her hands up in the air and run screaming from the classroom. However, I found an easy way to account for these, using a straightforward averaging method. I pour through three months of bank statements, add up costs for all of my variable expenses and then divide the total by three.
Here is my example on how to use cost averaging on a grocery bill:
Month 1: $650
Month 2: $700
Month 3: 575
$650 + $700 + $575 = $1,925 / 3 months = $641 (average).
It's easy, right?
From there, I assign surplus funds into a savings account linked to my checking account. This way, when my monthly costs come in a little higher than average, I am not left with my hands in my pockets, and lint as my only reward.
Making cuts.
After I account for my budget and plan for my variables, I comb through my numbers and trim down where I can. I teach my class to do the same. I have learned that the more expenses you remove from your budget, the easier your budget is to maintain. Items I routinely recommend cutting down (or cutting back) are cell phone minutes, cable bills, entertainment or groceries. I opt for prepaid cell phone plans, Netflix streaming subscriptions and daily deal sites. These let me save without sacrifice. I also create my meal plans and grocery lists based on the coupons I have on hand, instead of clipping coupons to match my list. These unsophisticated cost-cutting methods lead to substantial savings. In fact, these simple strategies have helped me save over $100 every month; $1,200 a year.
When it comes to building and maintaining a hassle free budget, the single missing ingredient is you. My attitude about money is what drives my success, and it is the one ingredient you are missing. So, what are you waiting for?
Read this and more on Yahoo.
Choose your weapon, and make it an easy-to-use weapon.
Personally, my weapon of choice is the spreadsheet. The funny thing is that the word "spreadsheet" invokes almost the same glazed over look with my class as the word "budget" does. Many of my students claim that they do not have the foggiest idea about budgeting using spreadsheets. Thankfully, it is not rocket science.
Microsoft gives its users a plethora of free resources, and all you need to know in order to use them is how to click a mouse and input numbers on your keyboard. I use the already made excel templates as examples for my class. I have downloaded household budgets, enterprise budgets and a wide range of ready-to-use, formula complete spreadsheets in seconds and with minimal difficulty. If spreadsheets are not your thing, there are numerous other online (free) budgeting resources at your disposal.
Get control of your variable expenses.
Once the budget is out of the way, the hard work begins. However, that hard work is only a "hassle" if you make it into one. Most people I work with are savvy enough to define their monthly recurring expenses with remarkably little trouble. They can plug in a house payment, car payment, insurance premium or other standard invoice with ease. The thing that seems to trip most folks up are their variable expenses.
Things like groceries, gas, utilities, or cell phone bills are the items that cause a novice to throw her hands up in the air and run screaming from the classroom. However, I found an easy way to account for these, using a straightforward averaging method. I pour through three months of bank statements, add up costs for all of my variable expenses and then divide the total by three.
Here is my example on how to use cost averaging on a grocery bill:
Month 1: $650
Month 2: $700
Month 3: 575
$650 + $700 + $575 = $1,925 / 3 months = $641 (average).
It's easy, right?
From there, I assign surplus funds into a savings account linked to my checking account. This way, when my monthly costs come in a little higher than average, I am not left with my hands in my pockets, and lint as my only reward.
Making cuts.
After I account for my budget and plan for my variables, I comb through my numbers and trim down where I can. I teach my class to do the same. I have learned that the more expenses you remove from your budget, the easier your budget is to maintain. Items I routinely recommend cutting down (or cutting back) are cell phone minutes, cable bills, entertainment or groceries. I opt for prepaid cell phone plans, Netflix streaming subscriptions and daily deal sites. These let me save without sacrifice. I also create my meal plans and grocery lists based on the coupons I have on hand, instead of clipping coupons to match my list. These unsophisticated cost-cutting methods lead to substantial savings. In fact, these simple strategies have helped me save over $100 every month; $1,200 a year.
When it comes to building and maintaining a hassle free budget, the single missing ingredient is you. My attitude about money is what drives my success, and it is the one ingredient you are missing. So, what are you waiting for?
Read this and more on Yahoo.
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