This Simple Trick Will Save You Money And Get You Out Of Debt

A budget is a key to a financially successful lifestyle, right? Well, if it is done properly, it is. Having a budget is only part of the battle. The biggest part of the personal finance battle comes from making the hard decisions to actually use a budget. So why is it difficult to use a budget? Is it the time and energy? Perhaps it is the lack of knowledge?

The Time And Energy

One of the main excuses I have heard over the years when working through personal finances with people is the lack of time or energy to do it. It is a matter of not wanting to do it, it is the idea that it is going to take a large amount of time and effort to complete it and maintain it. Although it will take some time to get it started, the maintenance is less than an hour a week. That equates to an hour you would have wasted in front of a TV screen or browsing through your social media. If you are still concerned about the time commitment initially, we have taken the guesswork out of the setup. We provide you a FREE BUDGET spreadsheet which you can download with drop down options for categories.

The Lack Of Knowledge

Knowing how to create a budget is by far the hardest part of this. The easiest aspect of this process is the analysis. More often than not, the budgets I see are in the negative. People spend more than they make and have debt growing at an astounding rate. There is an obvious need to have some change in their budget. I have talked to countless individuals over the years in this journey, and the response is always the same. I hear, “I don’t really know what I can cut out?” My response is always the same, and it requires the person to think of their expenses in a different view.

The Breakdown

If you seem to think you have no room to change your budget, I would disagree. There are only 3-4 things we actually need with our money. They are food, clothing, shelter, and (most of the time) transportation. Everything else is extra. Now, back to your budget where you think there is no wiggle room for adjustment. If you have other items in your expenses such as gym, entertainment, eating out, cable, etc. you have room to trim your budget. You can even go as far as to sell your car for a cheaper one or take the bus. The same is true with your house. If you are struggling to make a high mortgage payment, sell the house or think about renting out a room. Ultimately it comes down to your viewpoint. You have to get to the point of narrowing down the real “needs” versus the real “wants”. Once you trim these things out of your budget, you will begin to have extra funds every month to start knocking out your debt!