Living on a Budget
by Spending Money Wisely
Ah, the day to day grind of living on a budget. It does not have to be, you know. A grind that is. Here, we discuss a little about your mindset towards spending.
Your personal spending plan is a boundary to ensure financial freedom and protection. Huh? Boundaries allows freedom and protection? Absolutely! A child's physical boundary at home is the property line. He may not cross the sidewalk to the street. He has the freedom to run around as he pleases up to the the property boundary line. If he crosses that line, he will run into the street, get hit by a car and end up in the hospital. Goodbye freedom.
We obey laws to ensure we live in a free country, protected from our enemies. And so it is with our family budgets. Living on a budget allows you the freedom to spend what you have, but no more. Protection and freedom. Cross that line and you will need help in reducing credit card debt.
Here are three areas I encourage you to consider to build a solid financial future:
A New Mindset
Living on a budget requires a mindset of, "This is what I need to do and how great it feels when I am spending money wisely!"
How do you know if your personal budget is working? Here are three strong indicators:
1. Do you know within three minutes the average amount you spend for any category, such as food, auto, entertainment, etc?
2. Do you know within one minute how much you have to spend in each category?
3. Do all categories added together equal the sum of your checking, savings, and investment accounts?
For some "in the trenches practical stuff" to help you answer these questions with a Yes!, go to the Budgeting Money page.
You may typically think of personal money management as wisely using what we have so as to preserve it. However, in our current economy we must consider possible income streams that we can use NOW and in the FUTURE when we are ready to retire. In addition to better managing finances, learn to create multiple streams of income that will help to ensure living debt free remains a reality.
Use effective budgeting tools to provide you a physical and psychological barrier to keep you safe. Safe from debt, safe from fear and anxiety - fear from a loss of income -- or whatever financial fear you may have. You might have already noticed that living on a budget requires lifestyle changes, but the return it brings in peace of mind and financial freedom makes the process and end result very satisfying.
Stay out of participating on the negative side of a recession by having a personal spending plan. After seeing the results of your perseverance you will be hooked; all of that saved money, debt reduction, and mental freedom is addictive.
When is a personal family budget no longer required? When you have no expenses of any kind, are pushing up daisies, or wish to once again become a slave to creditors.
Lots of Great Help is Here
What you have fortunately stumbled upon here at this website is a treasure trove of budgeting information that offers practical and effective financial advice. By readonly just one or two articles per week, you will learn about reducing credit card debt, how to organize bills, live a frugal lifestyle, learn some money saving tips, how to take family vacations on a budget, and a myriad of other ideas for living on a budget and spending money wisely.
If you need a place to start, begin with 9 Steps to Financial Freedom
An outside resource worth mentioning is this list of budgeting tips to help keep you on track.
Do not just read -- implement! I wish you well. Please let me know how I may help you.
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