Two Secrets: How to Budget When the Money's Almost Gone
I was speaking with my mother-in-law the other day and she mentioned that she doesn't budget because she knows she'll be in the red. She was basically implying that it wouldn't do any good.
A mindset like this terribly prevalent. I suppose that's a valid concern. Why would you budget when there isn't enough money? Read further to find out exactly why.
Despite the fact that the bills are sky-high and your available funds are low -- when you'll take the time to consciously look at those available funds and make the decision BEFOREHAND about what your money should be doing. Do NOT throw in the towel on this! Take a hard look at your money and give it focus: clothes, food, electricity, miscellaneous, etc. This exercise is vitally important.
Given the situation that there's not enough money, you'll likely run out of money before you run out of bills. The whole process will still produce great results though! Prioritizing your money means you're maximizing what it can do for you at any given moment. That's important in figuring out how to budget.
Your second task is to write down every time you spend any money whatsoever. Know that even if you're spending well into the red zone, writing down what you spend will cut your losses wherever ossible. The total damage done to your bottom line will be significantly reduced if you can manage to simply write down what you spend.
The exercise of manual recording increases awareness and strengthens the psychological connection between you and your money. These days, every other interest out there wants you to spend your money without considering your own circumstances. This is hardly a way to budget! Record your spending and you'll become painfuly conscious of where you can shave spending.
In the end, planning ahead and recording the ongoing will help you budget effectively. Even if you're operating at a deficit, your losses will be mitigated through the use of these two budgeting tactics.
A mindset like this terribly prevalent. I suppose that's a valid concern. Why would you budget when there isn't enough money? Read further to find out exactly why.
Despite the fact that the bills are sky-high and your available funds are low -- when you'll take the time to consciously look at those available funds and make the decision BEFOREHAND about what your money should be doing. Do NOT throw in the towel on this! Take a hard look at your money and give it focus: clothes, food, electricity, miscellaneous, etc. This exercise is vitally important.
Given the situation that there's not enough money, you'll likely run out of money before you run out of bills. The whole process will still produce great results though! Prioritizing your money means you're maximizing what it can do for you at any given moment. That's important in figuring out how to budget.
Your second task is to write down every time you spend any money whatsoever. Know that even if you're spending well into the red zone, writing down what you spend will cut your losses wherever ossible. The total damage done to your bottom line will be significantly reduced if you can manage to simply write down what you spend.
The exercise of manual recording increases awareness and strengthens the psychological connection between you and your money. These days, every other interest out there wants you to spend your money without considering your own circumstances. This is hardly a way to budget! Record your spending and you'll become painfuly conscious of where you can shave spending.
In the end, planning ahead and recording the ongoing will help you budget effectively. Even if you're operating at a deficit, your losses will be mitigated through the use of these two budgeting tactics.
About the Author:
Jesse Mecham can show you how to budget with four simple rules of cash flow. His free course spells out personal budgeting for the layman so you'll be able to stick your budget for the long haul.
posted by Debt Consolidation Loan at
7:36 PM
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