I'm not going use the foul "B" word that ends in "udget", instead, I'll show you how I've been taught to use what I have and make the most of it. First, I use Mint.com, to track my income and spending. Mint.com was created by the makers of finance software like Quicken and Quickbooks and it gives up-to-date tabs on your money and reports back to you in real time. All you have to do is add your online banking accounts (its secure and encrypted, like I said its from the Quickbooks people) and the site will do the rest. You can also add debts like credit cards, car payments, loan payments, etc., as well as, investments such as those with Lending Club and it will track those as well and calculate your net worth based on the information given.
Once all your information is linked into Mint.com, you can use it to track all your spending, categorize it, and it will enable you to see where your money goes so you can regulate yourself without the pressure of being on a ....yeah you know the word. If you like having a "B word", Mint.com offers a section for you to create one.
The other money management system that I want to share, is something else I learned from T. Harv Eker's Secrets of the Millionaire Mind book and the Millionaire Mind Intensive that I talked about in Part 3 of this series. It's called the "Jars System" but you can use shoe boxes, envelopes, prepaid debit cards, or any combination of these. Here's the basics of how it works, every single bit of money you have, down to the cent, and any money that comes in should be allocated like this (or some variation thereof):
55% Necessities (Your Living Expenses, Rent, Utilities, Car payment,etc)
10% Financial Freedom Fund (Invested for Financial Freedom)
10% Long Term Savings for Spending (Savings for BIG purchases, like the washer and dryer)
10% Education (For investing in your self development, like books, classes, etc)
10% Play (Your "You Can Have Whatever You Like" money)
5% Give ( For your favorite charity, cause, or random acts of kindness)
It does not matter if you have $1.00; $10.00 or $1,000.00; the point here is to get into the habit of managing your money. If you can manage $1.00 properly, you will be showing the Universe/God that you can be trusted with more. Start NOW! Take whatever you have, no matter how much or little and allocate it into your labeled jars, envelopes, or whatever you're using. If you see that you need more toward your necessities, you have 2 options: Focus on downsizing, maybe selling the car you can't afford, or cutting up those credit cards OR focus on ways to bring in more income, perhaps by visiting the Diva Money Club for ideas. Whatever you do, DO NOT, I repeat DO NOT focus on how much you DO NOT have or the bills! That is a sure-fire way to only attract more lack. Focus on creating more and more will come.
Now as I said, the % are just a guideline, My personal money management system looks like this:
40% Living Expenses
20% Debt Repayments
10% Investing (My Financial Freedom Account)
10% Business/Education
15% Me Money
5% Give
Just remember, Start Now! The HABIT is more important than the amount!
Also, if you haven't already, head over to my "Recommended Reading" Section at the bottom right on this page and get a copy of "Secrets of the Millionaire Mind" AND Register for a Millionaire Mind Intensive near you! Yes! I think it's that awesome.
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