How Much You Budget What You Have Makes a Difference
It Starts With a Guerrilla Budget
I have had several people online contact me and say, “I never thought I needed a budget, much less a guerrilla budget” Most of them feel that budgets are for those who have a lot of money.
But I am here to say it does not matter how much you have; it’s how much your budget what you have. Rich people go broke all the time for the same reasons poor people go broke.
In my opinion, they both spend too much money on their income. Budgeting is a skill; the more you practice it, the better you will get at it. So, start now, and perfect your budgeting skills.
How Much You ‘Budget What You Have’ Will Make a Difference by:
Saving Money
Budgets save you money in many ways. First, it encourages you to put savings into your budget. I encourage those who don’t have much money to start with “the jar.” Place loose change in a jar once a week. Then go on to the second jar, which is the dollar jar. You will place a few dollars in the dollar jar a week or every two weeks.
This will give you more of a cushion than the coins if something goes awry in your budget, like running out of food or needing extra gas. This will help to keep your budget on track.
After your jars are full, open a savings account, then later, start automatic deductions from your payroll or checking account to your savings.
Control Behavior
A budget controls your behavior by preventing you from randomly pulling out a credit card or spending on things you don’t need. When you pass the dress or shoe store, your budget sense will tell you to keep going because those things are not in your budget.
When you get an email from a clothing store you purchased from in the past; your budget will tell you to delete the email; there is no reason to open it.
Reducing Clutter
This may seem like common sense, but many people spend excessively and don’t realize it until there is so much clutter they can’t find a place to put their buys or a place to use them.
It is only then that many realize they are developing a hoarding personality. Creating a budget. and sticking to it will help tremendously to prevent over-buying, the fear of hoarding and busting your budget will encourage you to budget what you have.
Budgeting is not taught in most schools, many of your parents do not have a budgeting sense, so it is important to get it from other resources. Start with
my Car Buying Course for Women.
Lois Center-Shabazz | Course Delta Agency
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Reducing clutter! This should be one of my top reasons to budget better. I’m slowly getting better. Finally cancelled all the monthly boxes except my absolute favorites. Baby steps.
Proud of you Arielle, you are making progress!
Arielle, you and your husband can take my Course for Fantastic Finances at http://www.courseforfantasticfinances.com
I love the idea of the jar, I used to do something similar when I was younger, however, it has been a long time since I did that I should really get back into it as it used to surprise me how much I saved.
This is so true! That budgeting what you have makes a difference. When hubs and I reunited, one big thing we did was to sit down and determine how much we’d need weekly for the rent, that’s our largest and most important bill. Since he gets paid weekly and I’m a freelance writer for bloggers and companies, with payments daily, weekly, monthly, etc it was easier to budget on his weekly pay with my pay being easier to use to budget for the other smaller monthly bills that roll in. So far this method has worked and we only fell behind on an electric payment once, but quickly caught back up and tend to save a little bit each month too!
Now that is great plan. I tell everyone you have to have a plan and things work smoothly.
They really should teach it in schools! I know people in my own life that really really struggle with this, and weren’t raised to know better. Thanks for all the wisdom.
Some parents feel it is a waste of time to teach in school because they feel it happens automatically. As we see in many examples, it does not.
from an early age, it’s important to teach your children these concepts.
Budgeting makes such a big difference. I’ve encouraged my kids to never use their credit cards, but to have one for an unexpected (true) emergency. So far, they haven’t needed to use theirs.
That is wonderful. Kids who are not taught what credit cards are for actually start feeling the, “money just grows on trees” syndrome when they get those cards. LOL
Budgeting for me is a very important task and talent to know. Most especially now that I became unemployed things and expenses should be strictly followed.
This all makes so much sense, I have never really heard of it called this way but, I’m ready to start.
I tried to call it out to bring attention to the need.LOL
I’ve always done well when it comes to living within my means. Typically, I reserve my tax refund for emergencies and it has served me well for years.
My kids do very well with budgeting their money too. But I focused on teaching them smart money tips when they got their first job.