Friday, January 9, 2015

Making a Budget: No One Wants To, But We Need To!

In the 13 Ways To Save Money In The New Year post, point #13 was to find someone to be an accountability partner for spending and budget making ideas.

Before you can look for an accountability partner, you need to do something first. You need to make a budget.

I know, I know. Making a budget is really, really, really hard. 

I know because I struggle with it too. However, I am determined to make a budget this year, adjust it when necessary, and stick to it. I have to give my money a place to go and I have to keep a tighter eye on where it is going.

Making a budget is not an overnight project. You need to look at the last 2-3 months and determine your expenses (bills, groceries, gas, etc.). How much, where, and frequency of money being spent is all things that need to be noted. How much money you make and frequency of money being paid to you needs to be noted. From these things, make a budget.

You can use a computer program or go low-tech (like me) and use a notebook or a planner. Just so your budget is not in your head, but on paper or saved on a file. Seeing it on paper makes your budget real to you. Keeping it in your head means that your budget is abstract and easily adjusted to what whims can suddenly take place.

Now, will this budget work exactly for the next and every month? Yes and no.

If you have expenses that are the same every month, never vary, and no surprises occur, you will be golden. If you are like me, you will have expenses that change all the time, your kids will surprise you with new needs (thank you to schools), and can change mid-month. You will pull your hair in frustration or find the need to go target shooting.

However, sit back and breathe deeply. Write every month down. Write down what expenses are the same every month. Estimate what you need to until you know the definite amount. You will have to adjust your budget for new things. You might find places you don't spend as much as you thought. You might have places you spend way more than you should. The next few months will be an adjustment period.

Make sure every dollar is accounted for in the budget. Dave Ramsey suggests this and he is right. Even if the dollar is in savings, it is accounted for. If you have a budget surplus, put the surplus in savings so you have that for surprises that may occur down the road. Make categories for clothing, repairs, gifts, etc. and allot money to

Pretty soon, you will have a working budget. I promise.

Having a budget though requires something else from you. Self-discipline and self-control. I can feel some of you cringing already. That is okay. I am too. This is where you may need and should have a budget accountability partner.

What is a budget accountability partner? Someone you can trust to bounce ideas off of, cry on their shoulder when the budget is not responding to your needs/wants, and someone who will help you take a cold, hard look at it.

Make sure your budget accountability partner is someone you trust. A spouse, significant other, parent, family, or really good friend are all good candidates. If you are married and both of you have trouble with the budget, finding a parent, sibling, or really good friend would be good. Some people do find it beneficial to find a professional to help them be accountable and that is fine too. Whatever it takes for you to make your budget work!

I feel this year will be a year that our money will have to go farther and farther yet. Now is the time to take charge of your money, make it go farther, and make it work for you!

Thanks for reading,


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