Whether you get paid weekly or bi-weekly, we all know that there are two magical times a year where an extra paycheck appears (or do we)? We also know that when we try to get serious about planning to pay off debt, that in the beginning, there seems to be many ‘hidden’ triggers that show up to steal and attack our plan. I find that when I am showing my clients how to prepare a budget, they get somewhat discouraged when I say, “And from here on out, you will need to do this each and every month!” The response is always “EACH and every month?” ……YES!!
HERE’S WHY: There are way too many variables that happen month to month in our households, that not making the budget each and every month will stop you from hitting your financial goals. You must constantly be in control of telling your money where to go!
Let’s assume that we sit down to work on your September spending plan. We input into my Budget Calculator your planned income for the month. Then we input all of your ‘normal FOUR WALLS monthly bills’ such as Mortgage or Rent, Electricity, Food, Gas for the vehicles. I then move you into the “extra” normal categories such as Giving/Tithing, Cable, Phones, Daycare, School lunches, Copays for prescriptions, Kids activities such as sports, dance, etc, Gym memberships, gifts for Birthdays/Wedding/Showers for the month (imagine this particular month the kids have 2 invitations to classmates parties & you have a baby shower to attend) We then input your minimum payments on credit cards, car loans, student loans etc. My Budget Planner quite simply tells you what’s left (or not) and allows you to direct it to:
- Save in your Emergency Fund OR
- Apply towards Debt OR
- To College/Retirement funding OR
- To pay down the remaining mortgage balance for those of you who are done paying off your debt.
It’s not rocket science, but just like a rocket, it takes fuel and an operator to get it going!
While the Budget Calculator is preprogrammed for you, the steps of inputting items into the budget each month still requires action and for YOU to show up to do the planning. Some months there will be teeth cleanings, some months the tax bills and car registrations will arrive. Some months the electric bill will be higher or lower. Some months there are holidays. Some months you will have the extra paychecks arrive but in those same months you will also have to remember to budget for five weeks of groceries, gas, daycare, school lunches, spending money etc.
If you are not budgeting each and every month, you will not be prepared and those things will bust your plan to pay off debt or delay you in building wealth. On the other hand, if you are prepared and working your family budget, those items will not catch you off guard and can help catapult you to hitting your goals that much quicker.
The success my clients have had after completing my Coaching 101 program has been just AWESOME!
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Let me walk YOU through the steps of building a successful plan!
Contact me today at firstname.lastname@example.org for more info!