Budgeting 2012

Budgeting 2012 The first month of the new year is almost over. If you are having trouble with your new budget plans don't quit! You only fail if you quit, so hang in there. There are a lot of budget busters that may come up that you didn't plan for this month. Its okay, a budget usually takes about three months before it starts operating smoothly. Just adjust until it smooths out. No one budgets perfectly. So here are a few things you can do to help get you back on track. Remember spend every dollar you make on paper before you get it. If you tell your money what to do and where to go before you get it, your money will not disappear before you pay the necessities. Its easy to go get something to eat at a fast food place when you don’t feel like cooking, but that can bust your budget. Also, subtract your expenses from your income so that you get a zero balance. If you have some left that means you didn't do it right. If you come up short you need to go back and change the amounts in some of your categories or get some extra income. Once you set the amounts in each category, stick to them. If you do not, you will come up short and panic. Try not to borrow from other categories, it can create a bad habit that will cause you to spend more than you need. Use cash as much as you can, it hurts to spend cash more than it does to swipe a card. When we make our budget we tend to put it up till the next month. You must track what you have spent on your budget. If you don’t know the exact amount going out you cannot prepare for it the next month properly. I sit down at least once a week and enter how much I have spent and find out how much I have left. If you don’t track it you will over spend and sabotage your budget. You can either do it with a pencil and paper or down load a budget. If you are really nerdy like me, email me and I will send you one that has all of the bells and whistles. Remember a budget is telling your money where to go before you get it. After you have done it a while it will take you about 15 minutes every month to prepare it. If you don' t take the time it can cause you years of trouble down the road. You would not set out to build something with out a plan. You cannot build a good financial future with out a budget (plan). I struggle like everyone else too, so just don’t quit! Let me know if you have any questions or need any help. Tim West http://gowestcoaching.com/