I have decided that I would start thenew year (which is close) in finding the best articles to help everyone out of their financial hole they have found themself in. I have found one such article by David Kimball I myself have put into practice many if not all of the suggestions that he has outlines here. I hope that the articles that I am sharing can help at least one person find financial freedom.
In order to begin budgeting money successfully, a mindset change is needed. This is one of the integral keys to financial planning. Swing your concentration from spending money to saving money. To influence this shift, it takes a greater consciousness of how you are earning, spending, and saving your income.
It is vital to set reasonable financial objectives for yourself and your family that you can reach individually and in a group effort. You must stick the spending limits you set. Remember, however, that budgeting money is a trial and error process. In the beginning, you will have to adjust your goals; keep them reasonable and do not get carried away.
One of the goals to achieve in order to develop a debt-free lifestyle is to eliminate credit card debt. Stay away from the ATM; it is not your friend when you are budgeting money.
Begin by keeping an accurate track of all your expenses. Count every penny, whether it goes out on a regular or irregular basis and work it into your monthly expense accounting. Get to know your spending habits and keep the good ones, while eliminating the bad ones.
Understand your income by setting up your income plan. It is vital to know what is coming in, where it is coming from and the amount as you adjust it in terms of a monthly record. Next, know your expenses. Determine which expenses are compulsory and which can be reduced, or even altogether eliminated when budgeting your money.
Discuss ways to reduce the necessary expenditures. Make allowances for each individual's incidental expenses. Put yourself and your children on weekly allowances. Have a group allowance to cover family fun activities. Start living below your means, rather than beyond your means.
Too many American families are in financial trouble today because they bought into the credit card company's and bank's tactics to convince them to live above their means. When you live below your means, you spend less than you take in. This type of budgeting results in savings, elimination of debt, and the ability to live debt free.
As you start budgeting your money, it will not take long for you to see which expenses are vital and which are unnecessary. Once you have determined the necessities and targeted the overspending, you can begin to reduce debt and increase savings. All the money you once spent on impulse buys or just plain wasted can be applied to eliminating credit card debt, paying down your mortgage, and building your savings.
Remember, this is not an overnight fix. It probably took you years to get where you are financially and, depending where that is, it may take nearly as long until you can truly say that you are living debt free. You will, however, begin to see the practical application of what we are discussing almost immediately and you will feel the noose of your debt burden loosening, all by simply taking these first steps of budgeting money.
You are now ready for the next step and learn more about making a budget. Another great step to take is get on my list of free tips on budgeting. You will stay up to date with some great information and have access to free downloads.
David Kimball is a personal finance coach, author, and speaker who is passionate about, and committed to, you living out a financially free life. Check out his website at http://www.household-budget-made-easy.com.