I can't begin to count the number of people, my previous self included, who make a plentiful income, yet struggle at the end of every two weeks to figure out just where all that income went.
In the age of debit cards, credit cards, auto drafts, electronic banking and any number of other "financial conveniences", it is not hard to lose track of your money. It just shows up in your account one day and before you know it, it has all left your account. Where the heck did it go?
This is where a zero based budget (every $$ has a home) coupled with critical analysis of your spending and savings habits comes into play. I know, I know, you can manage it and don't need a budget to tell you how to spend your money!!!!!
I started tracking every dollar about 14 months ago. The first month was ugly! But, it was also enlightening. I didn't truly realize the amount of money being spent on certain items.
As a family, we were spending almost $900 per month eating out, in addition to a pretty hefty monthly grocery bill along with another $150 in convenience store purchases. Cable/Internet/Streaming expenses were in excess of $400. Don't forget school tuition, electric bills, water bills, gas bills, vehicle fuel, pool cleaning, landscapers, dry cleaning, groceries, haircuts, car washes, clothes & shoes, savings and more.......
Stuff was starting to add up and I hadn't even touched the non-monthly bills such as car insurance, property insurance and taxes, HOA fees and other items. I began to see exactly where our more than blessed incomes were all going.
If you don't have an active budget that tells you exactly where you are spending your $$, I strongly encourage you to put one together.
WWW.EVERYDOLLAR.COM is free and is easy to use.
One last comment on budgets. Budgets are often viewed as limitations, restrictions on spending and such. That is one way of looking at them, but I view them as PERMISSION to spend certain amounts. I have line items for guns, ranch expenses, future hunting trips, vacations, and entertainment.
I have PERMISSION to spend money on all of those items and not feel guilty because I have also budgeted amounts for savings, retirement, insurance, college funds, etc...
If nothing else, just track your spending for 90 days. Use the Everydollar app and track every $$ from every source. You will be surprised at what you are spending $$ on and might even find thousands of dollars you can reallocate to better places, like guns and hunting!!!!!
In the age of debit cards, credit cards, auto drafts, electronic banking and any number of other "financial conveniences", it is not hard to lose track of your money. It just shows up in your account one day and before you know it, it has all left your account. Where the heck did it go?
This is where a zero based budget (every $$ has a home) coupled with critical analysis of your spending and savings habits comes into play. I know, I know, you can manage it and don't need a budget to tell you how to spend your money!!!!!
I started tracking every dollar about 14 months ago. The first month was ugly! But, it was also enlightening. I didn't truly realize the amount of money being spent on certain items.
As a family, we were spending almost $900 per month eating out, in addition to a pretty hefty monthly grocery bill along with another $150 in convenience store purchases. Cable/Internet/Streaming expenses were in excess of $400. Don't forget school tuition, electric bills, water bills, gas bills, vehicle fuel, pool cleaning, landscapers, dry cleaning, groceries, haircuts, car washes, clothes & shoes, savings and more.......
Stuff was starting to add up and I hadn't even touched the non-monthly bills such as car insurance, property insurance and taxes, HOA fees and other items. I began to see exactly where our more than blessed incomes were all going.
If you don't have an active budget that tells you exactly where you are spending your $$, I strongly encourage you to put one together.
WWW.EVERYDOLLAR.COM is free and is easy to use.
One last comment on budgets. Budgets are often viewed as limitations, restrictions on spending and such. That is one way of looking at them, but I view them as PERMISSION to spend certain amounts. I have line items for guns, ranch expenses, future hunting trips, vacations, and entertainment.
I have PERMISSION to spend money on all of those items and not feel guilty because I have also budgeted amounts for savings, retirement, insurance, college funds, etc...
If nothing else, just track your spending for 90 days. Use the Everydollar app and track every $$ from every source. You will be surprised at what you are spending $$ on and might even find thousands of dollars you can reallocate to better places, like guns and hunting!!!!!
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