A Budget by Any Other Name

A budget by any other name is still a budget…and you can’t have financial freedom without one.  Even if you’re a millionaire, if you don’t watch how you spend your money, there won’t be any to spend.The first step to creating a budget is to know what money you have coming in and going out.

So take a peice of paper and divide it into two columns.  On the left side, you need to write down all income you have coming in.  On the right side write down all your bills.  Start with the big bills, utilities, groceries, mortgage/rent, etc.  Anything you HAVE to pay.  Don’t forget insurances, medical bills, auto gas, etc.  Now subtract the amount going out from the amount coming in.

What do you have left over?  Hopefully, you have something.  Now you need to figure out all the little things that you buy.  A soda/water during the day?  Lunch out during the day?  Cigarettes?  Candy bar?  Etc.  These are the things that take away your money, without you realizing it.  These are small things that you don’t think about, but that really can hurt your budget.

For me:  I work about 10 minutes away from my home.  I would buy lunch out and I love Dr Pepper, so I would buy about 2 bottles at the local convenience store.  Plus, I would buy breakfast out.  So I was spending each day $3.00 for breakfast, $4.00 for lunch and $4.00 for soda…not to mention the occassional candy bar that I usually got 3 times a week, so figure $3.00 a week.  That’s $58.00 a week!  On what?  Nothing.

So I started eating breakfast at home, taking my lunch to work, purchasing my sodas at the grocery store in a six pack which is a lot cheaper and I make sure I have some miniature candy bars in my desk drawer for those days when I need it.

I figure I am saving at least $50.00 a week, $200.00 a month, $2400.00 a year.  Just by doing some very simple things.

So how much money can you save a day, a week, a month, a year?