I have never been much of a dancer...neither has my dad. When it came time to discuss the Father/Daughter dance for my wedding, there was some hesitation...on his part. I was like, "Dad, we HAVE to do the dance! It's tradition." And Dad? He quietly smiled. UNTIL, I learned from my brother (who is an amazing dancer) that they had been practicing together. What?? My dad practicing dancing?? I was super excited! I was going to have my Father/Daughter dance!
While I can't really "break it down" on the dance floor, there is a dance that I am good at breaking down- the dance of a budget. I am no expert on the matter, but my husband and I have been living on a very tight budget now for about a year. And, let me tell you, in the moments of practicing, some toes have definitely been stepped on!
Just like in a dance, there are certain steps that must be taken to make the dance of a budget work. I am going to lay out a few of them for you as you learn the rhythm of life on a budget!
If you don't know how much you are spending, you won't know how much to budget for. Make a chart with different categories- Auto, Entertainment, Personal Care, Home maintenance, Food, Clothing, etc. Then, take one month and keep track of how much you spend in each category. Don't worry about the amount! Just get an idea of how much you are spending. I think you will be surprised!
Second Step- Write down monthly expenses!
There are those certain items that never change- Rent/Mortgage, Utilities, Phone bill, Cable/Internet, Car payment, Saving, Giving, Student loan payment, Credit card bill, etc. Write down how much you are spending in those categories on a monthly basis. Everything, except for utilities and maybe giving/saving, should be a set amount.
Third Step- Put the First and Second step together!
Once you have spent a month keeping track of your spending, come up with a set amount that you can spend in each of those categories. For instance, you find after keeping track of spending in food that you spend $400 a month. However, you know you can cut back, so you make your budget $350. Do the same thing with all of your categories.
Lay all of the columns out on a spreadsheet and total up each column. Then, add all the columns together. That is how much you are planning to budget per month. If this is more than you make, you have a problem. Find ways to cut back in things like Entertainment, Clothing, etc. Your budget should be what you take home. Don't leave discretionary money- put a name to every dollar you make.
Fourth Step- Follow the budget!
The fourth step is the hardest part. This is where all the months of practice and planning finally play out. In order to follow the dance of the budget, you have to follow the steps. By sticking to your budget, bills will be paid; money will be saved; and you will begin to have peace of mind.
Just like the dance with my dad wasn't perfect, neither is a budget. Go with the flow of the music! Sometimes, things will come up that you will have to accommodate for and that's okay. A budget should be fluid and changing with whatever is going on in your life. But, don't forget step four! Stick to the budget and the results will amaze you!
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