Wednesday, March 9, 2011

˚budgeting series-part 2˚ Let's Start Slow

Alright. Let's start slow. One of the most important things about budgeting is actually doing it. BUT...sometimes it is hard to budget by yourself. Especially if you "share" money with a husband/wife/significant other/kids/etc. So first you have to convince yourself that it is actually worth it.

To be honest, budgeting is difficult. But, lets focus on the why we want to budget part. Do you remember this post? (Zambia and starving children...those might be a few reasons why you want to budget). But let's think a little more long term. How would you like to retire with 7 million dollars? (I can't even imagine what that would be like...) Or have a fully funded college fund for each of your grandkids? (Not to mention kids...and you probably don't even have grandkids yet).  And what about having little to worry about when you or your husband/wife can't find a job for a year. (Can you say emergency fund?) Budgeting gives you the peace of mind by knowing how much money you make, and what you do with it.

But really. Around here, we know where our money is going. We know exactly how much we make. And, it feels pretty good to know that we are thinking about the future. Many people aren't. For example, today I was eating lunch at work with a fellow co-worker. She is 58 years old, and she still has a student loan. She was hoping that it would be paid off by the time she retired, but she wasn't sure. Really? I wonder how many years she has had a student loan. Why not pay it off early and stop paying someone else to lend you money? She was also planning to rely on Social Security in order to live once she retired. Me? I am not planning on getting anything from Social Security, so I have to plan ahead.

So this week you should focus on two things:

1. Commit to developing a budget and trying to live by it for 4 months. (That really isn't that long...)
2. Tell your significant other/husband/wife that you want to live by a budget. Tell them why.

Like I said...we are starting slow. And if you follow right along with this are already on your way!

*Update: click here to see part 1part 3part 4part 5part 6part 7, and part 8.

1 comment:

  1. Great tips. We were great at budgeting and then we moved, started school, and I got sick with a baby. You are motivating me to get back on the wagon.


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