Basic Budget Living
Has impulse buying racked up your credit card debt? Tired of living from paycheck to paycheck? You may need to start embracing the concept of budget living. Warning: living within the confines of a budget is not for everyone and it may take some getting used to. However if are tired of being a slave to money, it’s exactly what you need.
If you want to succeed at living on a budget you will first have to set your financial goals.
- Start by making a list of your debts; which ones do you want to pay off?
- Next, make a list of your financial dreams; what do you want to save money for? A vacation? retirement? A new house or car?
- Then, determine if you have your financial priorities in order.
After you have established these 3 financial parameters you will have a solid reason for making a commitment to budget living. Your budget will be your personal snapshot of where you’re at and where you want to end up financially.
You can help yourself stay on budget by writing it all down. By keeping track of every nickel you spend you raise your self-awareness of your spending patterns. You may be spending more on café lattes, dry cleaning or eating out than you even realize. After seeing it in writing you can make the necessary corrections to your spending habits and plug up any spending leaks that may exist.
Separate your needs from your wants. You can tighten up your budget by eliminating the things you buy out of habit or simple want. You will spend less money if you focus your purchases on needs instead of wants. You may want a cleaning service to pick up after you every week, but do you really need one? Everyone wants to keep up-to-date on the latest and greatest technological gizmos, but do you really need to?
You have the power to stay a slave to your paycheck or break free; budget living is proven to be the best way to do that. Will you be disciplined enough to take the plunge and live on a budget?