A Pocket with Holes!
Hello, everyone. We now have men that have joined our fast, so welcome to all of the men that want to get real about their finances!!
This week is a "For Real" week. Last week you were to create your SMART goals, hopefully you have completed that task. If not, lets get busy! If completed you should have posted your SMART goals in a place that will be visible to you daily.
This week we need to create a budget. So the first steps are as follows:
1. Write down your ALL of your bills. Yes, the ones that your spouses are not aware that you have!!
2. Categorize your bills into two columns:
* Operations bills-these are bills that are on-going. They will never change such as your electric bill, gas, homeowners insurance, mortgage, cellphone, food, gas, etc...
* Project bills-these are bills that have a balance that can be paid off within 5 years or less such as credit cards, personal loans. (If you owe a family member, please add this to your debt. you need to pay them before the next reunion!!)
3. Total your income, then subtract your operations bills. Then subtract the minimum balances of your project bills.
If you are in the negative, you need to find away to increase your income, or reduce your spending. Look at items and determine which bills can be reduced, such as reducing cellphone minutes, or gas.
Don't get frustrated. You are not alone, I am sure that several people will be in the negative or have about $50.00 left for the entire month to spend. This is the first steps to change and taking control over your spending.
This is just a basic creation of a budget. You need to start somewhere. You really need to understand your financial status in order to make real change in your life.
Okay, take a deep breath and lets start the budget.
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