Do you get to the end of the month and wonder where your money went? Well you are not alone. Most families struggle with keeping a healthy balance in their checking and savings account each month. The dreaded “B” word is thought of as un-fun and so out dated. But in reality, it might be just what you need to really get ahead in life. To stop living paycheck to paycheck and start building wealth.
That’s our goal – wealth. No, not like the crazy Donald Trump or the billionaires that have 30+ homes. Simple wealth. You know the kind, right? Where you don’t have to worry about where your money is coming from. You can send your children to college without them or you incurring debt. You live in a home that is paid off. You can have fun with your family and travel to see new places.
That’s the kind of wealth we’re working towards. It’s going to be a long process and will not happen in the blink of an eye – although I’m sure most of us wish for our own magical genie that could grant us three wishes.
What do you want out of your life?
Do you want to stress in between paychecks about how you’re going to pay your bills? What about never getting to do anything fun like a spur-of-the-moment trip because you will never have enough money in reserves?
Once you decide, let’s take a look at whether you and your family really need a budget.
Do you have expenses?
Most people do. I can’t think of any situation where someone doesn’t have any expenses. Unless you’re still a minor living at home with no car.
The average person has plenty of bills to go around – rent/mortgage, utilities, car payment, insurance, food, etc. A budget can help you keep track of your expenses so you know where you stand. That way you can watch your spending and know where every dollar is going.
Do you have income?
If you have money coming in to your household then you really need a budget. A budget can help you from overspending and help you reach your goals of accumulating wealth.
Do you wonder where you money is going?
If you’ve looked down at the end of the month and wondered where all your money went, then you need a budget. Most families get confused about where they are spending their money. Did they eat out too often? Are they spending majority of their money on gas? Are the kids’ extracurricular activities costing a small fortune? Having a budget in place can really help you get a handle on where your money is going. Once you see how much you’re spending in one area then you can find ways to reduce it.
Do you want to get out of debt and build your wealth?
If you answered yes then you need a budget. A budget is a tool to utilize to get out of debt and start planning for the future – retirement planning, children’s’ college funding and so on.
If you answered yes to one, all or a combination of these questions then your family needs a budget. I have created a quick 10-minute budget template to get you started. Don’t put it off any longer. The longer you sit in denial the worse your situation can get.
If you’re looking for more budgeting tips and tricks, check out my top posts.