I am happy to report that things are on track thanks to a budget formula from finance guru Suzie Orman (LOVE her!). About two years ago, I watched a special where she provided this budget tool. It has put my spending habits in check and keeps me focused on reaching my goal to be financially fit. I have found this to be helpful, but you may need to make adjustments according to your own situation. However, it is a great start!
Having my finances in order helps to keep my mental health balanced, especially during tough economic times. I hope you find the information below helpful and that it aids to get you back on the money track. I'm sure am glad I wrote her formula down at the time, because I have had no luck finding anything online regarding her budget formula (phew!). Ready, set, go!
- Get a journal to keep a list of all your monthly expenses. Place the month on the top and the date.
- Use your journal to list all bills. After you make a payment put the date and any confirmation numbers next to the item. Being organized is SUPER helpful when you're trying to get financially fit.
- Set time to pay bills.
- I set aside no less than an hour to do this and I try not to make any purchases before doing this. The sooner you make your budget, the more aware you will be as to what you can spend.
- Be honest. It can be a little overwhelming, but remember we have to start somewhere.
- Start by taking the total amount of net income you bring in each month.
- Use the formula below to calculate just how much you should be spending in each area. Depending on your own situation, you can work around it to fit your budget/spending