Creating a Budget Should Be a Mandatory Class in School!

Budgets are not a four letter word... most of the time. I will admit that at times a budget can feel too restraining and even like you can’t spend your own money.

I assure you that you are not trapped when you are on a budget and really the opposite is true. You will have more control over your finances. It lets you have a plan so that you control where you are spending instead of just spending during the moment and trying to figure out later where your money went.

But where should you start?
First you have to find out what is happening to your money currently. This can be disturbing. Once you see where and how much, you may be shocked. But you really have to track every single dollar to make this work. No matter how small and inconsequential the amount seems, everything means every single cent you spend.

Once you add this up at the end of a week, you will be stunned at how much stuff you buy and how much money vanishes from your bank account – most of the time without being seen.
So your weekly spending is just part of your overall budget. Next you need to pull together your monthly bills and other important spending. By that I mean your mortgage, car payment and all those bills that come in the mail.

Now that you know what is going out, you have to see how much is coming in. So what is your total income?

Now a little math. Don’t be scared, it is easy. Add together all of your expenses and subtract them from your income. If the number is positive, you are living within your means. If it is less than zero, we need to talk.

Because that negative number can be the beginning of some serious financial problems that only a professional can get you out of.

The good news is that once you get that number above zero, a good budget will even allow you to save some money over time.

And with a savings you can finally have peace of mind.

If you have been in the negative too long, and you do need professional help, Oscar James has dedicated an entire website to finding real debt solutions from Christian debt consolidation to credit counseling.