It just making a budget,,,
It just making a budget plan,,,
And then sticking to it.
It's not rocket science,,,
But most adults I know can't seem to do it.
If you itemize all of your expenses,,,
Then you can allocate the appropriate money for them.
Anything left over is now discretionary.
I am single and don't make a ton of money,,,
But since I put my spending under intelligent control,,,
All of my bills get paid on time and I have money socked back for small emergencies.
I bring home about 2,400.00 a month,,,
I immediately allocate amounts to cover certain bills.
For instance I always put 100 in a spreadsheet column for OG&E Electricity,,,
I always put $100.00 in a spreadsheet column for water-sewer-trash,,,
I always put $100.00 in a spreadsheet column for insurances,,,
I always put $300.00 in a spreadsheet column for groceries,,,
I always put $250.00 in a spreadsheet column for gasoline,,,
I always put $50.00 in a spreadsheet column for clothes,,,
I always put $120.00 in a spreadsheet column for meds.
I have more columns I put money into,,,
If I need to spend money for a category of expense,,,
I put the money back for it before I actually have a need for it.
The point I'm trying to make is to define each and every single thing you must spend money on.
Immediately subtract that money from your take-home pay every paycheck.
What's left over is yours to do whatever you want with it,,,
No matter how small it is you now know how much you can spend each day.
I call this my allowance,,,
In my case it's about $18.00 a day,,,
That doesn't sound like much but it's all mine.
It's my walk-around money,,,
It's my after work beer money,,,
If I want to go shooting it's my ammo money.
Now here's the real kicker,,,
I always put a bit more back than is needed,,,
And when my electric bill is $83.00 instead of the $100 I put back,,,
I leave that $17.00 surplus sitting in that column like rolling over your cell phone minutes.
In a year you will be surprised how much your columns will accumulate.
After my gasoline column had $1,000.00 built up,,,
I figure that amount will cover any minor emergency on my car.
So now if I don't spend the allocated $250.00 for gasoline,,,
I shift the overage into a "new gun" account.
It took three years but I'm now a full year ahead of all of my bills,,,
I simply used my knowledge of 6th grade arithmetic,,,
And put my spending under intelligent control.
I was describing my system to an undergrad who I work with,,,
She told me about this financial advisor,
Dave Ramsey.
I had never heard of him before,,,
But I read about his system on the web,,,
I think I should sue him because he copied my methodology.
It takes a bit of work to set this up,,,
Then the self-discipline to abide by your rules.
But that's how I afford to buy guns and ammo for them.
Aarond
.