Financial Budgeting

Financial Budgeting

If you're wondering how to start financial budgeting for yourself or your family, this article will get you on the right track of figuring out where your money is going and help you take steps to have more money at the end of the month.

Many people earn a paycheck and begin buying things without really calculating if they can afford it or not. Many use credit cards thinking that they can pay a small amount now to bring an item home only to realize that it will take a year or usually longer to pay off a high priced item.

In the meantime, loss of a job, relocation, family emergency, illness or a host of other things happen to us that change our financial status and drain our funds that should be used to pay our debts. This usually creates more debt and gets us in deeper trouble.

Start financial budgeting this week to take back control of the money you have now and to have more in the future for something special or just for emergencies.

What is Your Goal of Financial Budgeting?

Once you determine your goal of financial budgeting, you will be able to focus on watching how your money is spent and make the necessary changes to improve your financial status to reach your goal. Whatever your goal is, write it down on post-it notes and place it all over your home, in each room and your vehicle so you'll be reminded of why you need financial budgeting.

Practice this exercise for one month to obtain a good idea of what you want and to improve your chances of success.

State your goal out loud and repeat it several times a day. What would you like to do with additional money? Would you save it? Would you retire earlier? Would you take an exotic vacation? Would you buy your dream home? Whatever your goal is, say it, write it and you'll have better success at staying on track to financial budgeting.

Steps to Financial Budgeting

You absolutely must track the money you are spending every day for successful budgeting. Keep a journal with you at all times and every time you spend even the smallest amount such as $1.00, write it in your journal. You won't be able to make changes or improvements in your financial status until you know where you are spending all of your hard earned money.

Involve everyone in the family. It won't help much if you're watching your spending while your spouse/partner/children are not getting involved.

Gather all your bills and create a budget sheet simply by columns that state the name of the bill, the due date, the total balance owed and the interest rate you're charged. Hand write it in a binder, journal or create one on the computer – use whichever system is easiest for you and one you will look at frequently. Some computer software is quite detailed and will help you easily set up a system for all your finances. They are available at amazon or many places online. See sample below

Invoice Due Date Balance Owed Interest Rate









Credit Card







Create your list to include all the bills you pay, don't leave out anything.

Next, review all areas of income. Do you bring home enough money to pay all the bills you currently have? If so, simply watching the list of items you are journaling as you go about your days and weeks, you'll be able to reduce some expenditures to pay off a debt or start a larger savings plan to achieve your desired goal.

If you aren't bringing in enough income to pay your current bills, you will need to make adjustments in your daily spending to find areas that you can reduce or eliminate those items or you'll need to find additional ways to earn extra money.

Ways to Eliminate Wasteful Spending

Stop eating out. Eat only your own home cooked meals. If you can't cook, study and learn some basic ideas on the internet and you'll find it fairly simple to prepare meals at home that will be healthier and taste much better than eating out, especially at fast food restaurants.

Make your own coffee at home and eliminate high priced coffee shops. If you spend $5.00 a day on a gourmet coffee 5 days a week, you could save $25/week or $100/month just by making your own coffee at home!

Discontinue using your atm debit card for all minor purchases as these can add up significantly by month's end and is one way that people lose control over their spending habits.

Bring your own snacks to work if you usually buy something at a convenience store or the vending machine at work. Saving only $1.00 a day for a month is an extra $30 a month!

Buy items in bulk at the grocery store if possible, freeze and store properly. Find a friend or family member that would be willing to shop with you and buy certain items in bulk. You may not need a case of cereal or gallon of pickles and could split the cost of this bulk item with someone else. Many items are cheaper in bulk.

Go shopping at the dollar stores for paper supplies, greeting cards and wrapping paper to save money on many of these items that can be purchased generically.

Use a dollar bill to pay for something instead of coins. Keep the coins in a coin bank and deposit in the savings account every month. Your savings will grow faster than you can imagine and keep you inspired to stay on track for your goal.

Wash your own car instead of using the car wash. This small item saves big when you discontinue using it and doing it yourself. You'll probably do a better job too!

Look at all the ways you spend money and find several that you can eliminate with some changes like these above.More debt payment tips:

Stick to your budget since it will take time to notice an improvement in your financial status but, it will work when you are persistent.

What to do with your Saved Money

Decide how you will utilize all the extra money you save by financial budgeting. Start or grow a savings account designated for your original goal.

Pay off debts that create financial hardship, relationship difficulties or other stress. Every little bit extra that you can send to one of your creditors will reduce your total debt ratio and you will see results if you focus on your goal and stick with it.

Start a holiday savings plan that allows you to add a small amount of your paycheck weekly that is issued to you several months before the holiday if holiday spending puts you in financial hardship. It's a nice way to save money all year for holiday purchases.

Continue adding to your savings for your goal. You'll be pleasantly surprised at how quickly your money will grow and how inspired each new deposit will make you.

Financial budgeting can help you recognize where you are currently spending money and allow you to make changes for improvement and to achieve higher goals. Make changes to your budget as your debt goes down or your income increases. Best wishes on your path to a financial budget!