Two Tools to get you Started

by Michelle Vandepas | More from this Blogger

30 Jan 2007 01:45 PM

Several times over my twenty five year marriage I've tried to set a budget. Hubby and I both would sit down, get motivated, write down a bunch of numbers and set good intentions. At the end of the month we'd be surprised when our buget and our spending didn't match.

Finally, we got a clue. Actually, we took a class that helped us see where we were going wrong and taught us how to budget.

We were budgeting, but allowing ourselves to go over budget - just because we could. As soon as we got a few tools, we were able to force ourselves to stay within budget. This is great news for us because we actually have a lot more spending money now - and no credit cards bills.

The two tools that helped us most are:

Spending less than we earn:

Yea I know this sounds like a fundamentally basic concept, but we routinely spent over our earnings, confident we'd catch up sometime in the future. I know we weren't alone. Many others do this as well, counting on bonuses, raises, second jobs to bail you out.

If you spend more than you earn, STOP IT! Find a way to stay within your earnings.

Then, after you've learned to only spend what you have, shave that spending down even a bit more and start saving.

That's right,

Saving.

Now we save for everything not on our routine monthly expenditures: If it isn't our home or utilities or insurance payments we are probably saving for it.

We save for short term items we want to buy - a pair of jeans, a new set of towels; and we save for long term items - vacations, a new car. We also save for our retirement, emergencies, fun evenings out. We save for everything instead of pre-buying on a credit card.

Those two ideas have changed our whole attitude toward money and helped us get way ahead of most of our friends and peers.

I encourage you to try it, and let me know how you do. Other Baby Steps

Ten tips towards saving more

Paying off your credit cards

Learn more about Michelle Vandepas

In a previous life, Michelle was president of a medical manufacturing company, and then in private practice as a holistic business consultant.

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