If you appreciate the debt that lives freely, but has too many months at the end of your money, the budget is a great way to live, and prosper, on what you produce. Out of financial control is a strong source of stress. But getting your finances under control bring peace of mind.
Let’s build a budget based on priority. What is most important to you? Fun or future?
If you don’t live at home with Mother (or don’t want to finally return there), then your house might be your first priority. And, the utility is part of that priority, unless you want to use candles for light and wood fire to cook!
Then maybe your expenses are related to work. Why is this priority? If you don’t save your work, your budget will be easy: Nothing is divided by priorities that still don’t leave anything! How much does it cost to work? Gas and tolls to start working and home are work costs. Clothing and clothing treatments are also a work cost. Secondary costs for work including car payments and maintenance.
Let’s see what we have so far:
1. mortgage or rent
2. Utilities (electricity, gas, water, etc.)
3. Gasoline and Toll Road
4. Vocational clothing and maintenance costs
5. Automatic payment and maintenance
Next we need to protect this investment with insurance. Protect your health investment (so you can work) means health insurance. Protect investment in your home with home insurance or tenant. And, protect your investment in your car with car insurance.
6. Insurance (health, home and automatic)
Food. Budget to eat at home and at work.
Now you might begin to realize that failing to manage your money has put you into debt, and you can’t spend whatever you want whenever you want and still have money for the costs needed. This is the reality of adult life that we must live in our means. (That means “If you don’t get it, don’t spend it”.) If not, we end up in the sticky hole debt, debt and more debt.
It’s time to plan to invest in your future. This includes life insurance and savings. Placing money in a savings account is a way to pay yourself and prepare for an emergency in the future. If you appreciate independently, then you will prepare your future. Failure to plan to fail.
8. Life insurance
Now, this is the problem. Most people put their entertainment and personal interests in front of the essence. We haven’t even discussed them in this budget, because we are budget based on priority.
Is there anything left after going through this budget? If so, enjoy! If not, then if you want to play, you have to find a way to reduce essence. Financial management requires that we live at a house that we can buy. If your mortgage or rent is too high for your income, you might need to take a dose of a severe reality and streamline.