Sentry Page Protection
Take Control of Your Finances in 28 Days
A good financial plan is a road map that shows us exactly how the choices we make today will affect our future.
~~Alexa Von Tobel~~
Do you feel like your circumstances have taken control of your financial life? Are you living pay to pay, just barely making it as long as things go well for you?
What happens when the air conditioner stops, the car breaks down or the fridge goes on the fritz? If these inevitable financial hiccups have the power to turn into major crises, or set you back so far that it takes forever to catch back up again, then you’ll be happy to discover that life doesn’t have to be this way at all!
Regardless of your income, you can retake control of your financial life and look forward to a secure future. All you need is a clear plan – based on your own circumstances – to guide you to freedom.
During this next 28 days, I’ll guide you step-by-step through your financial maze and help you make plans that put you back in control. As you follow these steps, you’ll build your financial literacy and begin to take action to set yourself up for the greater financial success you deserve.
Throughout February I'll be adding new information each Monday, with new tools and exercises you can use to take control of your finances quickly.
Week 1: Budgeting
Creating a realistic, workable budget that you can commit to is the cornerstone of any plan to gain control of your finances.
A good budget helps you to accomplish many objectives:
* Record and track expenses and income
*Plan for unexpected events
* Identify areas that challenge you to keep spending on track
* Set and achieve financial goals
Follow these easy steps to create your own budget and begin the process of gaining greater control over your finances:
1. Identify and list all sources of income. The first step in deciding how to spend or save your money is to determine how much income you have coming in.
* Begin by listing all of your sources of income, including the amount and frequency that you receive your payments.
* Income includes any money that you receive in the form of wages or payment for work, as well as money from irregular sources such as windfalls, inheritances, garage sales, rebates, child support or even refunds.
2. Identify and list all of your expenses. Determine your expenses, their type, and their frequency. It’s impossible to control your expenses without first identifying them. The two most common categories of expenses are fixed and variable:
* Fixed expenses. Fixed expenses reoccur on a frequent, regular basis. Your mortgage or rent payments, life, car or health insurance premiums and vehicle re-payments are common fixed expenses.
* Variable expenses. Variable expenses can occur infrequently or regularly, but the amount is typically sporadic or varies. Examples of variable expenses include your monthly grocery bill, gifts, utility bills, and fuel. These expenses are harder to estimate, but they’re an important part of a workable budget.
3. The planning phase of your budget begins. Once you’ve identified your income and expenses, you can begin to plan how to you’ll spend your money and meet your financial goals.
* Just as each person is a unique individual with their own talents, abilities and preferences, each person's budget and financial goals are unique. Despite this, there are some general rules and practices that everyone can use to increase their financial stability.
* In general, you’ll want to save a portion of your income and use it to meet any number of common financial goals. I suggest you aim for 10% of your income to allocate as savings.
* Common financial goals that will increase your financial security and peace of mind include: building an emergency fund, paying off debt, saving for short and long term needs, retirement planning, investments and so forth.
* It's important to leave room in your budget for fun or unplanned expenses. Just like a diet to lose weight, if your plan is too strict, you are likely to cheat and not stick to it in the long term.
* When planning how much of your income to spend, save, and invest, take the time to identify any areas that challenge you. For instance, if you find that you frequently go over your budget for groceries, develop a plan to rein in costs at the grocery store. Read the $300 a Month Food Challenge notes for inspiration.
* Identify areas of your spending that you can cut back on to fund your savings and investment plans. Also look for ways you can boost your income to add to your savings.
4. Automate common budgeting tasks to help eliminate boredom. You are unlikely to stick to your budget if the process consumes too much of your time.
* There are numerous free and low cost budgeting software programs available online. Take advantage of these tools to make budgeting and controlling your finances easier and more enjoyable.
5. Keep your budget updated with frequent reviews. By keeping your budget relevant to your current situation, you can ensure that you aren't caught unawares of changes in your income or expenses. Fifteen minutes once a week is all you need to spend on your budget to keep the records up-to-date.
By taking the first week of your 28-day plan to create a budget that works for you, you are laying a solid foundation on which to build greater financial control and success in the following weeks and months.
What happens when the air conditioner stops, the car breaks down or the fridge goes on the fritz? If these inevitable financial hiccups have the power to turn into major crises, or set you back so far that it takes forever to catch back up again, then you’ll be happy to discover that life doesn’t have to be this way at all!
Regardless of your income, you can retake control of your financial life and look forward to a secure future. All you need is a clear plan – based on your own circumstances – to guide you to freedom.
During this next 28 days, I’ll guide you step-by-step through your financial maze and help you make plans that put you back in control. As you follow these steps, you’ll build your financial literacy and begin to take action to set yourself up for the greater financial success you deserve.
Throughout February I'll be adding new information each Monday, with new tools and exercises you can use to take control of your finances quickly.
Week 1: Budgeting
Creating a realistic, workable budget that you can commit to is the cornerstone of any plan to gain control of your finances.
A good budget helps you to accomplish many objectives:
* Record and track expenses and income
*Plan for unexpected events
* Identify areas that challenge you to keep spending on track
* Set and achieve financial goals
Follow these easy steps to create your own budget and begin the process of gaining greater control over your finances:
1. Identify and list all sources of income. The first step in deciding how to spend or save your money is to determine how much income you have coming in.
* Begin by listing all of your sources of income, including the amount and frequency that you receive your payments.
* Income includes any money that you receive in the form of wages or payment for work, as well as money from irregular sources such as windfalls, inheritances, garage sales, rebates, child support or even refunds.
2. Identify and list all of your expenses. Determine your expenses, their type, and their frequency. It’s impossible to control your expenses without first identifying them. The two most common categories of expenses are fixed and variable:
* Fixed expenses. Fixed expenses reoccur on a frequent, regular basis. Your mortgage or rent payments, life, car or health insurance premiums and vehicle re-payments are common fixed expenses.
* Variable expenses. Variable expenses can occur infrequently or regularly, but the amount is typically sporadic or varies. Examples of variable expenses include your monthly grocery bill, gifts, utility bills, and fuel. These expenses are harder to estimate, but they’re an important part of a workable budget.
3. The planning phase of your budget begins. Once you’ve identified your income and expenses, you can begin to plan how to you’ll spend your money and meet your financial goals.
* Just as each person is a unique individual with their own talents, abilities and preferences, each person's budget and financial goals are unique. Despite this, there are some general rules and practices that everyone can use to increase their financial stability.
* In general, you’ll want to save a portion of your income and use it to meet any number of common financial goals. I suggest you aim for 10% of your income to allocate as savings.
* Common financial goals that will increase your financial security and peace of mind include: building an emergency fund, paying off debt, saving for short and long term needs, retirement planning, investments and so forth.
* It's important to leave room in your budget for fun or unplanned expenses. Just like a diet to lose weight, if your plan is too strict, you are likely to cheat and not stick to it in the long term.
* When planning how much of your income to spend, save, and invest, take the time to identify any areas that challenge you. For instance, if you find that you frequently go over your budget for groceries, develop a plan to rein in costs at the grocery store. Read the $300 a Month Food Challenge notes for inspiration.
* Identify areas of your spending that you can cut back on to fund your savings and investment plans. Also look for ways you can boost your income to add to your savings.
4. Automate common budgeting tasks to help eliminate boredom. You are unlikely to stick to your budget if the process consumes too much of your time.
* There are numerous free and low cost budgeting software programs available online. Take advantage of these tools to make budgeting and controlling your finances easier and more enjoyable.
5. Keep your budget updated with frequent reviews. By keeping your budget relevant to your current situation, you can ensure that you aren't caught unawares of changes in your income or expenses. Fifteen minutes once a week is all you need to spend on your budget to keep the records up-to-date.
By taking the first week of your 28-day plan to create a budget that works for you, you are laying a solid foundation on which to build greater financial control and success in the following weeks and months.