It’s time to get creative when it comes to budgeting. Instead of listing the pros and cons and then explaining how to go about creating one, I’m going to experiment a bit here. I’m breaking it down into steps, like a recipe. Here’s my attempt at creativity (or a new perspective on budgeting):
A Yummy Budget Recipe
- Light that fire under your butt and Pre-heat your bank account
- What are you spending? Do you even know? Look at one month’s worth of spending and add it up.
- How much do you make? Add up all your income.
- Add a pinch of calculations
- Now that you know how much you spend and earn, what’s the difference? (This is second grade math, people.)
- The total is what you have left over.
- Dice the expenses
- Did you find that not much is left over at the end of each month?
- Time to dice up the expenses and reduce them to less than your income.
- Add a splash of savings
- Now that you have something left over, automatically deposit it into savings.
- Bake the budget for 3 months
- Reevaluate your expenses and income (or budget) after 3 months.
- Are you on track? Are you saving more now? Fix it if need be.
- Serve with humble pie
- Now that you’ve calculated income and expenses, you have an idea of what’s a “need” and what’s a “want.”
- Stick to what’s a “need” and an occasional “want.”
So my recipe isn’t an exact science, but neither is a budget. The bottom line is spend less than you earn, no matter how you get there!
How do you budget?