Tips on budgeting

These tips on budgeting will help put budgeting into perspective.

If someone were to suggest that you should go on a budget, would you be offended or indignant, as if someone were suggesting that you go on a diet to lose weight? Both scenarios can hurt, but we know that overspending hurts our finances, and overeating hurts our bodies. 

budget calendar

• A budget does not lower your income. At times, while you are setting up a budget or trying to live within a budget, it may seem like you have less money. But, on the contrary, if you make wise decisions and follow your plan, a budget can actually help you do more with the same amount of money.

• Compare yourself to a business. Even large corporations working with millions of dollars have to budget each dollar. How much more the need to budget limited household dollars.

• Think long term. It's easy and fun to spend the money that it takes to get into consumer debt. But the bills, late notices, calls from creditors, and the work and time it takes to get out of debt are not fun.

• Your relationships can be a motivation to start and stay on a budget. Some surveys indicate that financial problems are a major factor in over 80% of divorces. Every time you are about to spend money, if you look at a picture of your spouse and children - and then ask yourself if what you are purchasing is worth losing them - it might help you make better choices.

• Think of debt as servanthood – a budget as freedom. If you owe what you don’t have, your indebtedness amounts to a form of ownership (think slavery) to the lender.

• Get an objective opinion. Consumer credit counselors can help you set up a spending plan that takes into account your priorities, resources, and obligations.

• You can only budget 100%. Remember that the percentages in your budget must add up to one hundred (or less) before you are done. If you don’t have it, don’t spend it.