SUPER SIMPLE BUDGET GUIDE IN 7 STEPS
It’s been a while since I talked about the other stuff that I find useful in life besides betting. I’m a strong believer that some of the systems and tools that we use in betting can be applied to the average persons daily life.
One of these helpful tools is Money Management, something I undoubtedly recommend anyone and everyone to use in their daily life and in whatever investment they might have their hands on.
With Money Management you can also make your life easier by budgeting. These two tools can work hand in hand and actually work very well together. All in all, they’re kinda the same thing.
Using The Unit System for budgeting is an unique way of making budgeting fun and easy. No more complex numbers, no more mathematical calculations.
I already have a post on The Unit System which you can read here.
Make sure you take a look at them if you would like to advance in life.
WHAT IS A BUDGET
A budget is actually a process of creating a plan to spend your money.
This spending plan is called a budget and this budget helps you determine in advance whether you will have the money to do what you want to do or would like to do. Naturally, if you do not have the money already, you can use a budget to prioritize your spending and direct your focus towards your goals.
Budgeting also helps you ensure that you always have enough money for the things you want to do, whatever that may be.
HOW TO CREATE A SUPER SIMPLE BUDGET IN JUST 7 STEPS
Creating a budget might sound hard to some people and it might sound easy to some people. From experience, I can say that it has its ups and downs as everything else. One month it can be easy and the next month it can be a bit harder. However, the calculation and the planning itself is not hard. It is the emotional part that grinds your gears.
Knowing what you should use in a budget can be difficult to understand and the easiest way to understand this is to use the “7-Step Plan” in order to create a sustainable budget that works for you.
Creating a budget, in a simple way, is done in a few easy steps.
1. SET REALISTIC GOALS
Setting realistic goals is a must if you want to reach a goal. Asking yourself what it is that you want, when you want it and how you are going to achieve it is something that will help you make smart choices.
2. IDENTIFY INCOME AND EXPENSES
You probably already know what your income is, but do you know how much you spend each month? Identifying how much money is coming in and how much money is going out each month is a very good start to realizing what is needed to create change. Try to cover every cost one month simply by writing down every purchase or saving the receipt of a purchase. It might be boring, but it is extremely vital.
3. DIFFERENCE BETWEEN NEEDS AND WANTS
There is a difference between needing something and wanting something.
A “need” is something that is a must have for your household or your survival, like food, gas for your car or a light bulb in your house.
A “want” is something you want to have which is not equally necessary for your survival, like a TV, specific clothes, or a coffee at the diner.
Make priorities and you will find that the decisions become easier to make.
4. CREATING A BUDGET THAT WORKS FOR YOU
Finding a budget format that works for you might be a bit difficult seeing that there are different ways of budgeting already. An easy way to do a budget however is to write down every factual cost and your income that you have each month. These are costs that you cannot get away from, like rent, food, and utility bills.
Simply by seeing this you will know how much money you have over each month before you start purchasing stuff that you want. From that on you decide on how much you are going to save each month, a portion of what is left is smart, and the rest of the money is free to spend.
I recommend everyone to start from scratch to see their financials with their own eyes but if you’re not a numbers person, do not have the time it takes to make a budget or something else, there is programs, excel-sheets that is free to use and there is also The Unit System which is a great tool.
5. TIME FOR ACTION
You have already done what is necessary to find and create a budget that is working for you. When your income arrives, stick to your plan. Make sure that you have a plan even before your money arrives and when it does – put money away for the factual costs directly.
No more spending money before you have paid your bills. No more buying unnecessary things before you have paid back what you owe the bank.
6. SEE THE FUTURE
It is important to always look ahead no matter what you are doing in life. Sometimes things just pop up from nowhere, like expenses for your health or maybe an unexpected expense of some sort. When you have started your budget trip, you can always advance within it.
Make sure that you keep saving the same amount each month, and if you can afford it – save more. You should also consider having another savings budget within that budget that is solely for unexpected things. You never know when you might need that bit of extra cash.
By the way. Vacation is very fun isn’t it?
Well, to afford a vacation, you have to put away money each and every month to be able travel.
7. STAY SMART
Make sure that you create a budget that is working for you and that keeps you alert. It is always fun to advance in life and the same goes for budgeting. Start small, start smart and then advance. You will see how your personal income and the entire economy in the family keeps growing and becoming smarter.
MAKE SURE YOU START BUDGETING
I cannot express enough how vital it is to have a healthy but emotionless relationship towards money. You cannot let money run your life and therefore you have to play the game, and play it smart.
Creating a budget that works for you allows you to have a relationship towards money that ensures that you always have enough to live your life the way you want it too.
If you’re interested in learning more about Money Management, Budgeting and Creating Goals To Reach Your Dreams then you should give my book Money Management & Dream Catching a read.