ABC’s of Budgets

Tornadoes, floods, and violent storms are ravaging many parts of the country. I can’t even imagine the emotional strain created by rebuilding after one of these storms. The same might be said for a financial hiccup that many of us have or will face in life. Our prayers and sympathies extend to those in parts of the country who are experiencing weather setbacks this month.  The Debt Free Divas also want to encourage those who face any personal financial rebuilding. Personally I’ve gone through a process of rebuilding, and many of our listeners and clients are going through that very experience right now. I love this tweet from Author David Bach (of the Automatic Millionaire series), “You can’t cure what you won’t face”.

Jesus told us that in this life we will face trials. Trials of the financial flavor have a tendency to stay hidden. We don’t talk about our financial screw ups which can cause us to suffer in silence. Financial trials don’t always leave visible signs. We can cover them with a plastered smile or polished outfits – when inside we are cracking under the pressure.

I want those who are going through a financial hiccup, a setback, or even something more serious to resist the urge to hide. Resist the urge to keep off to the side, alone, with thoughts that you are a failure because you’ve made some financial mistakes. Resist the urge to bury your head in the sand and hope things all blow over. That only works in the movies. Resist any feelings of embarrassment that might keep you from seeking help. When you know better, you do better.

Here is the bottom line, many of us were not taught how to manage our money in ways that lead to wealth creation. Debt has been so aggressively marketed, that we think having debt is normal. Well the bible says that the borrower is servant to the lender. In other words, debt is a modern day form of slavery. The Debt Free Divas believe that through education people can learn to make better informed decisions with their money. So you’ve messed up. You are in a pickle. What do you do?

The most important tool in your financial tool box is going to be your budget. We have a lot of euphuisms for the word budget…spending plan, roadmap, ideally to make the term “budget” more palatable. But I like to say budget because we need remove the negativity associated with that term. We shouldn’t think of a budget as a source of restriction, or some tedious, mundane chore. A budget is your first stop on the road to financial freedom. The Divas have a simple technique we call the ABC’s of budgeting.

A – Account for all of your income. List every source of money coming in.

B – Be specific about every expenses. Detail everyone and thing with their hand in your pocket or pocketbook.

C – Commit to doing your budget each and every month.

Once you have a budget in place, you have a snap shot of your current financial situation. From here, you can craft your plan. Do you have a surplus that can be used to eliminate debt or are you operating like the federal government – deficit spending. Either way, knowing is half the battle. We often say that a budget is the easiest way to give yourself a raise without getting a second job. The Debt Free Divas can and want to help you regain control of your financial life. If you are ready to resist that devil and have him flee from your financial circumstances, click on services and sign up for a free consultation today.

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