I know! Maximal Me Coaching took a few months off to revamp training and seminar programs, but now I'm back in 2016 and better than ever.
Let's talk about your money for a minute. Do you have a budget? Do you need a budget? Are you frustrated because the numbers never add up? If you answered 'yes' to any of these, I'm here to simplify the process so you have a system that meets your lifestyle in the best way possible.
So take a deep breath, and let's start over.
When I was single and in my 20's, my budget consisted of 7 line-items on a spreadsheet that gave me a decent guess at my surplus at the end of the month. The truth is that my money wasn't a concern, so my budget wasn't either.
Now...my kids spend all my money, so I'm stuck wondering how toddlers can be so fiscally irresponsible.
I truly don't believe I ever had a grasp on my budget and expenditures until my first daughter turned 1, and I was finding myself puzzled at the end of the month. That's when I decided to do conduct a BRUTAL-TRUTH-STUDY of my money.
Here's what I did: Everyday for 3 weeks, I wrote down every expenditure I had, whether it was cash, credit, or debit. At Day 21, I was shocked.
It wasn't my car payment, house payment, or electricity bill that was killing me...it was EVERYTHING I hadn't thought of- all of the small stuff. Every mid-morning snack, every bottled water, every pack of gum, every lunch out-to-eat, every happy hour. I was spending $400/month on pure miscellaneous, which, at the end of the day, made my budget worthless.
Food for Thought: There are roughly 240 working days in a year. If you buy an average Starbucks drink on half of those days, that's $480.
So, now it's time for you to make a list. But you have to include all the normal stuff, and then all of the items you buy to help the day run smoothly...for now, we'll call them 'Reality Check' items. Let's examine..
NORMAL EXPENSES
- Car
- House/Apt
- Electricity
- Cable/TV
- Cell phone
- Water Bill
- Food from grocery
- Insurance/car
- Insurance/health
- Coffee/Starbucks
- Candy, chips, coke bought from vending machine
- Alcohol purchases
- Cigarettes/tobacco products
- Snacks purchased while getting gas
- 'Night-out' expenses, drinks, shots, 'a-round-for the table'
Next, if you're budgeting, then you're actually planning, so what are you wanting to plan for? a rainy day? new clothes? car maintenance?
All of those are respectable areas that will require your attention at some point. The question remains: how much are you setting aside for all of your future expenses? Does 5% of your income make sense? Even 10%? Multiply your monthly income by .1 and include that amount as a line item...does that work?
These are questions only you can answer, but if you want to be a true steward of your finances, planning ahead is technically your third 'list.' Having foresight to make sure you're protected...and planning ahead so you're covered and ready for emergency expenses is a critical skill.
Every budget is different, so you may have to tinker with numbers and scenarios a few times. More importantly, you may have to make some sacrifices, but that's not a bad thing. It's the responsible thing. And if you do find a monthly plan that's feasible (at least on paper), try it for 3 months and then re-evaluate.
Let's wrap it up with some tips and a summary:
- Aim for putting 10% of every paycheck into savings. It might take discipline to not touch this money.
- If you're serious about tackling your budget, then you'll need to be serious about all of your spending. Map, chart, and include all of the small things.
- Take retirement planning seriously. It takes decades to accumulate the wealth you'll need for a happy retirement. The process should begin in your 20's and 30's.
- Set goals and hold yourself accountable to your monthly plan.
Good luck- and be sure to save some money to reward yourself for all your accomplishments!
~Coach Jake
www.MaximalMe.com
P.S. Need some help with your budget? Contact me at TotalLifeCoachJake@gmail.com
