You Have What it Takes

There is a lot of information out there that helps you prepare a budget. Some of the more famous financial advisors today recommend that you have a budget in place so that you know where your money is going. Right now, my wife and I are reading the book Start Late, Finish Rich: A No-Fail Plan for Achieving Financial Freedom at Any Age and he is against having a budget. He believes that there is no point to having one because many have trouble sticking to it. The problem with his philosophy is that it is not true for everyone. We are telling you that you can prepare a budget and stick to it. We will help you get to that point because we know all too well that budgeting is one of those things easier said than done.

The Not so Traditional Way

On the other hand, I do agree with his method of having your bills paid automatically every month. This way you do not have to worry about missing a payment. It also prevents you from overspending and possibly not having enough to make one of your payments. We developed a traditional budget for our finances and we have incorporated some of Bach’s no-budget tactics mentioned in his book.

Getting Your Finances in Order

To make our budget personal for us we listed all our bills out from smallest to largest (a great tip we got from Retire Inspired: It’s Not an Age, It’s a Financial Number Chris Hogan’s podcast Retire Inspired), and we made this a goal of ours to knock out all our debt. This list may be shorter for some of you out there. You will get a sincere and overwhelming round of applause for  staying away from the temptress Credit and her giving friend Student Loans. For us this list was daunting at first, but it gave us a clear visual of what we owed and what it is going to take for this debt to be a distant memory. While you’re at it, name the list and put it up where you can see it every day. This keeps you focused on the future, and a life without debt!

Organize Your Paydays

You also want to keep in mind the days you’re getting paid and how much your check is. I’m sure most of you already do this, but setting up the days you get paid, especially if it’s bi-weekly, in the calendar app on your phone is a big help in keeping track of when pay day is coming. The ColorNote app for Android is a great tool to use, you can add notes, checklist, set reminders for yourself, AND it has a calendar.

My wife and I are lucky enough to receive paychecks, on either the same days, or a few days after each other. This makes the automatic payments go a lot smoother. The great thing about setting up your plan this way is that you can start right now. You do not have to wait until next month or that next pay period to start the automatic process. On your bill list should be your due dates. This gives you a better visual of what is going to be due around my pay days and how soon can I make the payment.

If you are a person or family with multiple bills to keep track of, your due dates may be a bit all over the place like ours. To take away that oh crap I forgot a bill moment, make all of your payments at the same time. This gives you a good standing with the credit companies showing that you’re making payments on time.

Create A Budget that Works

This process is amazing because I have a clear number of how much I have left to utilize for necessities. Also, you have the option to put more money towards saving for a goal you have in mind. Or, that special trip you’re planning on going on. By scheduling your payments to come out automatically, you are setting your self up to meet your goals. Now you are making clearer decisions because you don’t have that choice to make now. We’ve learned from our mistakes, and through reading and research we have found a system that works for us and could work for you to. Check out our 8 Steps to Creating a Budget that Works and allow it to inspire you to create your own “Budget” System to pass on.