The Truth About Budgeting: Myths and truths about budgeting
Myth: I don’t have time to work on a budget.
Truth: You don’t have time not to make a budget!
The dreaded “B” word. Budget. The only other word that starts with “B” that might generate a worse reaction in most people is the word bankruptcy.
Unfortunately, the word budget has gotten a bum rap – it is basically just a PLAN. When you budget, you’re spending on paper, on purpose, before the month begins. But many people view a budget as a straight jacket that keeps them constrained. Freedom and budget just don’t seem to go together.
However, when you see that a budget is just spending your money with intention, you’ll actually experience more freedom than before. Many people say they’ve found even more money when they created a realistic budget and stuck with it.
Here are some pointers:
- Give it three to four months to start working. It won’t be perfect the first time you do it.
- Spend every dime on paper before the month begins.
- Over-fund your groceries category. Most people underfund that category.
- Husbands (if applicable) need to loosen up and quit using the budget as a whipping tool on their wives.
- If married, spouses need to do the budget together. The preacher said “… and you are ONE.”
When you are spending your money on purpose, you will be on your way to a Total Money Makeover. You will be on the road to changing your family tree forever!
Steps to Build a Budget from Dave Ramsey
Based on the programs from Dave Ramsey, here are some of the steps you can take to get started building a budget:
- Write down your income - all of your income including full-time jobs, part-time jobs, freelance work, and everything else
- List all of your expenses - consider both your regular and irregular expenses
- Subtract your expenses from your income to equal zero - this way you give every dollar a job
- Track your spending - use a budgeting app like the one on Dave Ramsey's site or another