Getting Money with Budgeting - Part 3
by Jane Chidester
Myths and Action Steps
Myth #1: You have to suffer to use a budget.
The truth is, you are following a budget whether or not you have consciously implemented one. Unfortunately, the "budget" you end up with by doing nothing is almost certainly an endless cycle of reactions, as opposed to a dynamic, proactive strategy.
A reactive mode contains the double whammy of the anxiety of wondering when the money will run out, and then feeling deprived when it does. A budget will actually reduce your aggravations. To some, a budget is like a diet that may force them to forgo a favorite treat. In my experience, a diet is the wrong metaphor to use when thinking about budgeting. A more accurate analogy is a cluttered hall closet. You know the one-a closet you are afraid to open lest you be hit on the head by a cascade of falling junk. The one everyone puts things into, but never takes anything out of. Picture that closet in your mind for a moment. Now imagine taking everything out and laying it all on the floor where you can see it and study it. Then, give the closet a thorough cleaning, and perhaps install some new shelves or racks inside. Finally, put everything back in an organized, neat arrangement.
Do you know what? You will have more storage room than when you started-and you did not get rid of anything. Now, it might well be that when you have all the junk on the floor, you decide you can probably do without the muddy pair of galoshes with the holes in the bottom, or the broken baseball bat, or the jigsaw puzzle with half the pieces missing. If you get rid of some items, you have even more room in the closet.
A budget works the same way. The very act of organizing your finances can provide extra money! During the organization process, you might discover some expenses you want to eliminate, or some smarter ways of handling payments. These choices give you more money still.
Myth #2: You have to be in debt to budget.
Another popular misconception is that budgets are only for people who are in real financial trouble-individuals who are severely in debt or currently living way beyond their means. While it is true such circumstances require a budget overhaul (or, more likely, implementation), the truth is that everyone can benefit from budgeting. Successful companies, operating solidly in the black and generating millions of dollars in annual revenue, all maintain budgets. Some companies have entire departments, with dozens of employees, whose sole purpose is to run the budgeting process. These companies don't do all of this because they are in financial trouble or are spending beyond their means. They do it because budgets work.
Myth #3: You have to spend extra hours doing paperwork.
Another common fear is that budgeting will take huge amounts of time. With some older budgeting systems, this is certainly true. Even with the newer systems, there is certainly an investment of time up front to get things rolling. However, once you have your budget set up and in place, bill paying sessions turn into stress free, time-efficient moments. You've eliminated the month-in and month-out agonizing or arguing about priorities and where the money will come from for the next bill that crosses your desk. All of that negative energy and time will have been turned into a positive routine
experience!
Finding a Budget You'll Stick With; 9 Things to Look For
1. The system should be fairly easy to run. If it's too complicated, you'll give up on it quickly and end up with no system at all.
2. Your budgeting system should be able to be used as a communication tool with the other members of your household. Effective money management within a marriage or family is based on good communication. Your budgeting practices must support and
facilitate the communication process.
3. Your budget should allow you to define your goals up front, and then act as an instrument panel to guide you to success. Beware of budgets that act like "rear-view mirrors", that only tell you what has happened to your money in the past.
4. If you have a spouse, it should be very easy for either of you to understand and run the budget at any time. Even if one person is the "primary" bill-payer, there will be times when the significant other will have to run things. The hand-off should be effortless.
5. Your budget should be customizable. Our relationships with money are as individual as all of us are. Your budget should be a reflection of you and your needs, dreams, and goals.
6. There should be an element of fun to the budget. Fun or rewards built into your budget will keep it interesting and help keep you committed to it.
7. The budget should be based on organization, not penny-pinching. Too often, people fall into the trap of thinking that the only way to get ahead is to give up things. Organization is much more effective, and a necessary first step before you can judiciously decide what to give up, or before you can decide if you even need to make any sacrifices.
8. The system should easily and instantly let you know how much spending money you have. Between bills, regular payments, savings and investments, taxes, and all the other routine and not-so-routine assaults on your checkbook, it must be an easy matter to know exactly how much discretionary spending money you have at any time. This knowledge lets you take advantage of opportunities, react to emergencies, or perhaps just enjoy a comfortable evening out.
9. Your budgeting system should continually teach you what's going on rather than just blindly giving some "rules" to follow. The goal of any good budgeting system should be to impart understanding. Knowledge IS power.
About the Author:
Jane Chidester is the author
of
BudgetYes!
21st Century Solutions for Taking Control of Your Money Now! She conducts
seminars and is a published columnist on personal budgeting topics. Visit
her website Budget Central: Personal
Budgeting Information and Resources Repository of information and resources
on personal budgeting, financial planning, and household money management
-- a complete budgeting education.
Summer Fun!
Summer heat is here. Whether you are looking for fun crafts, great recipes, fun family activities or travel tips, you'll find it all here. Here are a few examples to get you started...
Did you know that FamilyCorner has its own photo gallery? Did you know that YOU can upload your own photos to it? That's right, and it's completely free!
Here are some of the fun benefits of sharing your photos in our FC Gallery:
Send your own photos as an e-card
Watch slide shows
See beautiful sunsets and other great scenic shots
Brag about and share pictures of your loving pets
Share photos of your children and grandchildren
Create your own individual album and post in category albums
Keep your favorite pictures organized online
Rate images of other members
...more!
Join us in the FC Photo Gallery. It's completely free to use, just another fabulous reason to be a FamilyCorner subscriber.
Family Matters Radio
FMR is a nationally syndicated radio program developed to help you live your best life, hosted by Caroline & Jacquie. No rants and raves - you get enough of that from your kids. Choose a segment below to begin listening!
Missed the last couple of newsletters? Haven't visited for a while? This section highlights articles and crafts that have recently been added to FC...
Start your own album by 
