Ah, budgeting. How I despise thee. I could never balance my checkbook. I have bounced more checks than I would like to admit. I vaguely remember going to court in college for it. I racked up an $18,000 debt in my 20s with credit cards. I never had a new car. I am still paying off my student loan from college and I graduated 15 years ago. I didn't learn early enough HOW important it was to use money wisely. I was young and having the time of my life. I never saw my life past 30. I had no long-term plans for the future.
The good news? I DID learn. And it is never too late to do so. I paid off that $18,000 debt in 2 years. I still have that school loan, but it has been whiddled down to something manageable. While I have never had a new car, new cars aren't always the best choice. I love my used van. It made the best financial sense for us. And balancing the checkbook? Let's just say, I love my bank. I haven't bounced a check in many years thanks to the new technology out there.
Getting back on sound financial footing is hard. Recovering from old habits is a challenge. Planning for the long-term requires real examination and review. Trying to keep yourself from going hungry or into debt when you are living on a fixed income is a huge struggle.
Thank goodness there are tons of resources out there that really want to help people. Just Google "budget". There are a lot more that try to rip you off, but you have to be smart. The first step is to make a budget. I hate making a budget because it forces me to realize that I don't have the means to always do what I please. I am very stubborn that way. But once you have a realistic view of what you have and what is coming in and going out, it makes it easier to plan. I know, you're thinking "Duh. Every financial site and book says this". YES. They do. And for good reason. PEOPLE JUST DON'T SEEM TO GET IT.
Have you ever watched The Real Housewives of [insert city here] or My Super Fabulous Sweet 16 on television? Those people are not living in my reality. I cannot watch those shows. They are a horrible representation of a life of excess. These people have more money than they know what to do with and they have no moral footing. The characters (for that is what they are) are narcissistic, egoistical, and shallow. Yes, I covet their Birkin handbag, but I love that bag because it is beautifully designed, not because I could rub it in my so-called friend's face when I use it. But when they have a closet made just for shoes or handbags, I want to puke. So to save my stomach and show my allegiance to being normal, I cannot support those shows. I have to live in my real world. And my budget helps me do that. It doesn't mean you cannot set a goal for yourself to one day have something completely extravagant, but you cannot do so at the expense of getting yourself into debt or living without the basics.
I am a huge fan of working smarter, not harder. There are tons of budget sites out there. I am still leery about putting financial info online but there are secure sites out there that have been endorsed by gurus like Suze Orman, Jean Chatzky, and David Bach.
One of them is Mint.com. Also check out what Money Magazine online has to offer online. Their Money 101 lessons on personal finance are great. These sites can look intimidating at first so go slowly. Don't expect to get it all at once. If you are able to purchase software for personal use, I recommend Quicken. For a great worksheet to start with, use the template available with Excel.
Most sites give very general instruction because everyone is different. Everyone's priorities and expenses are different. My advice is be honest with yourself. This is a realistic review and it might be hard to swallow. But once you have listed all of your expenses, then you can see where to cut and what to manage better. When your income has been slashed, you will have to make a lot of sacrifices. With prices going up for everything from gas to food to haircuts, you will need to reevaluate what is important and find a way to get the best deal for everything. Check out Budget101.com for money saving tips. If you read this far, you are probably saying "yeah, yeah, tell me what I don't know". I can't. You are smart and most likely have a site that you use or seen that I have not. I can only show you the best sites and tools I have used and hope that they are useful for you. Get budgeting! For next, we coupon!!
Related Topics to come: Taxes, Banking, Credit Scores, College Funds, Retirement and other general personal financial health.
Sites mentioned:
Suze Orman
Jean Chatzky's Money 911
David Bach's Finish Rich
Mint.com
Money Magazine
Quicken
Budget101.com
Photo credit ('cause I'm cheap, or rather, frugal):
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