On Wednesday we discussed career prospects and saving money. Both of these things will affect your overall vision. Today we will discuss the all important factor of budgeting.
Dave Ramsey talks about a budget not as a strict diet to punish yourself for overspending but telling your money where to go so that you don’t waste it. You set the limits on what you’ll spend for each category, and by cutting out categories and trimming other expenses, you end up with more money left over to pay down debt.
He states that you have to have gazelle intensity in order for this to work. The “gazelle intensity” comes from a Bible verse that you’re running like a gazelle from the lion, unwilling to slow down for anything because your life depends on it. When people have that “I had it” moment , they swear they will never be in this situation again. When they say “I want to never have this happen again”, they have a vision of where they want to be, in this case, debt free.
Only with that passionate dedication are they willing to say no to themselves, those asking for loans never really repaid or going out for the evening with friends for $50 a head. That clear goal in mind of being debt free gives them the over-arching reason to control their spending, and in many cases, work extra jobs for a little while to earn more money to get out of debt.
You have to apply realistic pragmatism to your budget. If you’ve been spending a thousand a month on groceries, you’re not going to be able to spend $500 the next month unless pulling from a stuffed pantry. If you’ve been spending $800 a month of children’s activities, unless you are disrupting their lives and ending it all at once, that cost is only going to come down over time.
Look for big costs you can cut quickly like refinancing a mortgage, selling an extra car to eliminate the payments and insurance, cancelling children’s activities at the daycare that add $200 a month to the bill. And don’t overlook the smaller costs from canceling subscriptions and making your own coffee to stocking up on pizza in the freezer so you stop spending $60 eating out every time you don’t feel like cooking.
In contrast, setting a very tight, unrealistic budget will cause you to struggle and fail the first month and give up.
- Includes everything in Quicken starter Plus many more popular money management features
- Download transactions from retirement, loan & investment accounts automatically
- Create a 12 month budget with ability to customize goals month by month
- Amazon Exclusive: 15GB of extra Dropbox storage (20GB total) with 2 bonus months of Quicken (total of 14 months), backed by our 30-day money back...
- See your bank, credit card, investment & retirement accounts in one place
- Stay on top of bills & spending; categorize expenses to see exactly where your money goes
- Easiest and quickest software to take control of your money!
- Version 5.3
Last update on 2020-03-20 / Affiliate links / Images from Amazon Product Advertising API