If you knew of a tool that could bring your finances into harmony, dramatically reduce stress, and make life a whole lot easier, would you take advantage of this tool?
Of course, you would!
Well, such a tool does exist. A budget (aka spending plan) allows you to take control of your finances instead of your finances controlling you.
You can create a simple budget that supports your dreams and empowers you financially. Even if you’re not a “numbers person,” you’ll enjoy the peace of mind that comes from creating a simple budget.
All you have to do is follow these 4 tips for creating a simple budget:
- Find the starting line. The first step in creating your simple budget is listing your income and keeping track of everything you spend for a month. Before you can know where you’re going, you have to know your starting point. You’ll be surprised to learn where your money goes each month. This awareness alone is enough to cause you to change your spending habits for the better.
- Use credit wisely and sparingly, or not at all. A good practice is to have one credit card for personal use and one for business expenses. If you use your credit card, pay off the entire balance each month. Credit, misused, can get you into a lot of trouble. Trust me, I know from first-hand experience. Only charge what you can afford to pay off each month.
- Keep your checkbook balanced. One of the most productive habits you can incorporate into your financial success plan is maintaining a balanced checkbook. Keep track of everything that goes in and out of your account by writing it in your check register. Compare your checkbook to your bank statement at the end of the month. When you track of what you spend, you may feel less tempted to waste money on impulse purchases. You’ll always know how much more you can spend. This awareness will save you money on overdraft fees and a lot of headaches.
- Reduce expenses. There’s no secret to a successful budget. It’s as simple as keeping track of your income and expenses, increasing your income, or lowering your expenditures until you spend less than you earn while at the same time building your nest egg. Once you have a handle on where your money goes, find places to cut back and put the savings into an account designated for your financial security.
Financial pressure (especially from excessive credit card debt) is the absolute worst kind of pressure to endure. But if you implement these simple steps and commit to maintaining a rock-solid budget, you’ll experience financial peace of mind, in my opinion, priceless!
By following these four steps for creating a simple budget, you’ll feel more confident about your ability to manage your money, and you’ll want to do even more to build wealth that will last your lifetime.
Need help creating your own simple budget?
Hello! I’m Patti Fagan! I’m a Christian Business & Life Coach, Ramsey Solutions Master Financial Coach, former retirement planner, and digital creator. I’m also an award-winning author and prayer warrior, serving on the prayer team at my local church.
I provide digital content and resources to support my sisters-in-Christ in their finances, faith, and business. I’m on a mission to help you create six-figure success while honoring God and sharing your gifts with the world.
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