Believe it or not, even in this economy, sales of luxury items are up: A $9,000 Chanel coat is on back order. $700 Christian Louboutin shoes are flying off the shelf. And both BMW and Mercedes are selling more cars than expected. Most of us are not in the market for those bits of luxury, but most of us do want the luxury of being out of debt and having a little money in the bank. Dave Ramsey has a plan to get you out of debt and on track financially. Here’s how to budget so you can get started today.
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 strait 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 tips:
- 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.
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!
Taken with permission from www.daveramsey.com.