Budget Basics – Getting Your Finances Back on Track

When you are barely making ends meet – whether it’s because of the recession, job loss, illness, or you just never had anyone show you another way – it is possible to take control of your money and stop getting pushed around by life.

Here are some easy basic tips for getting yourself out from under that mountain and even grow to the point of having a safety net. It takes time and discipline to implement, so be patient with yourself – and forgiving.

Some people need a cheerleader or coach during this process to help them not get frustrated and give up. I’m here to help all along the way – from simply offering guidance to doing intense reviews with you of your choices at every paycheck along the way.

Remember, no one can truly give you financial advice. All I can offer is suggestions about what has repeatedly worked for me. The decision to act on or use this information or coaching must be made by you only if you feel it’s right for you.

On average, you can go from underwater financially to having a safety net in 4-6 months using these ideas. Some people take 18 months and some only 3. It really depends on your unique situation – and that’s OK. The important part is you’re finally getting it under control in a way where you can keep it going for the rest of your life.

1) All change goes into a bottle bank or piggy bank.

2) All money in pockets or wallets on payday (left over from the last check) goes into the bottle bank or piggy bank.

3) EVERY incoming amount has 3 sets of 10% taken off the top:

10% to tithe – if you don’t have a church, use Kiva.org

10% to savings

10% to play – this is your ONLY play budget while digging out

4) All bonuses, gift money, birthday cash, unexpected money, etc goes to your safety net

Just managing your expenses and having a plan can make a major difference in a few paychecks. Once you start to see the difference, you can move on to the next layer –

5) Establish a safety net for each bill

6) Begin to use some funds to handle needed purchases

7) Create a plan to begin tackling your debts – I love Dave Ramsey’s stuff personally.

Every situation is unique and there are hundreds of ways to scale the above steps to fit each person or households needs. For ideas or suggestions, contact me or consider some coaching sessions.

Leave a Reply

Your email address will not be published. Required fields are marked *