I don’t know about you, but the word “budgeting”, especially at Christmas time, brings feelings of nausea. Do you want to feel nauseous about your money? What would the Universe say about that? I know you want better things for your money (and your stomach for that matter), so here’s a better way!
This is a simple way to keep your money in an easy to remember package, all wrapped up with a bow on it. The key to this system, is to know your numbers. This is simple, just login to your accounts, look at your income (either on a paycheck, or your bank account, or your Quickbooks). What is that number? What is that number BEFORE you pay income taxes (gross)?
Now, let’s wrap that present up nice and pretty:
– 25% will go to TAXES (I understand there are ways to reduce these taxes, but this is still the average)
– 45% goes toward your FOUNDATIONAL EXPENSES
– 15% goes toward your FUTURE EXPENSES (savings, retirement)
– 15% goes toward your FUN EXPENSES
See? Not so bad, all wrapped up and easy to remember. Now, the implementation part. Be sure you have a very clear section in your Life Vision stating the above breakdown. Enter your exact numbers (if it fluctuates, using the percentages is ok).
If you have a specific dollar amount that you are saving (be sure your know the percentage it coorelates to as well), and you find yourself struggling in any of the other areas, you have an easy way to see where you can make some changes. If you need more cash in your month, you can now look at your income to increase, look at ways to reduce your taxes, review your Foundational expenses (look for true needs vs. wants) and your fun expenses. There is no need to feel deprived, when you follow this simple breakdown, just know where your numbers are falling and move them around!
If you need help putting this together, Lori is happy to offer a complimentary 20 minute review phone call with your. Just email her at Lori@LoriBarland.com.
As an extra Blog Bonus, here’s a 3 minute video from The Kid President “20 Things We Should Say More Often” – Merry Christmas: