BUDGETING 101

About five years ago I was hired to teach a public education class on the Basics of Family Finance.  I would be the only teacher on that subject amidst the dozens of choices the community had available.  The coordinator and I were very excited about this prospect and felt that we could do a significant amount of good to the families who attended. 

Come registration time we were hopeful and projected a smaller class size since it would be a new topic available from which to choose.  When registration finally closed, both the coordinator and I were completely shocked at the ZERO registrations.  There were a few inquiries and that was that.  No one wanted to invest time and money for a few week course on getting your finances in order. 

So, today (in a different state) five years later when I received my community education catalog in the mail, I was surprised to find that there were multiple finance classes available.  Everything from balancing a checkbook to investing in real estate.  It was a double edge for me.  On one hand I was elated to see more interest in personal money matters, on the other hand I wished that our culture was as preocupied with finance five years ago so that families wouldn't be in the mess they are in today.

Alas, it is what it is, and hindsight is always 20/20.  My insightful hubby said to me, "You were just ahead of the times."  That of course helped.

So now that people care much more deeply about their pocket book and are always looking for ways to stretch out our mighty dollar, I wanted to post regarding the basics of budgeting.  STOP....DON'T CLICK AWAY just yet.  I know what most of you are thinking...oh, I've got the basics down, I need to go further!  The challenge with that is that the basics are usually all most of us need to get ahead, yet we neglect them for their mundane qualities.

Get the basics down and you will do fine with the bigger issues that come your way.

So what are the basics exactly?  I will sum it up in one sentence.  This sentence is so powerful that if taken to heart you can actually transform your financial self within a year max!  Most of us would love a slight improvement let alone a complete transformation, but knowing this one phrase and applying it will make all the difference in the world. 

LIVE WITHIN YOUR MEANS.

Is this brand new earth shattering information?  Probably not.  However, it is basic.  It is so basic we overlook it thinking that it is just too simple advice and cannot possibly work in making our lives better.  Sometimes this piece of advice is unwanted because it would mean sacrificing certain luxuries we afford ourselves on a daily basis such as: dining out frequently, buying new clothes, entertainment costs, hobbies. 

At the end of the day you have to ask yourself what is more important?  Eating at Burger King today or putting five bucks away in my emergency stash?  If you think eating a hamburger is more important, then by all means go for it.  If not, then you know what you need to do.

If you change one thing about your habits this year (or this month, or hell even this week!) then make it a habit of living within your means.  At least work toward that direction.  You'll be so amazed at the money you really have the ability to use and work with to create your financial freedom.