How to Budget for Success

With credit so easily available, it can be difficult to maintain a level head when it comes to budget planning. By having a designated place for the dollars you earn, you can avoid making bad decisions that can take years to correct. Many people hate the word "budget" because it implies discipline, but it doesn't have to be painful. Look at it like organizing your income. When every dollar has its place, it won't be misspent.

Instructions

Difficulty: Moderate

1. Get out of the mindset that budgeting means depriving yourself. Correct budget planning will help you improve decisions about spending. Think increase, not lack. The right thinking will move you towards prosperity.
2. Give the first 10 percent of your income to a church or charity. Giving a portion of your resources away seems counterintuitive, but the truth is that it opens up a channel for more to flow back in to you. Giving is a basic law of financial prosperity.
3. Pay yourself next: Designate a portion of your income to go directly into savings and an investment vehicle, so you have a growing account for emergencies or for a future goal. Plan to increase this amount as you are able.
4. Stay out of debt, particularly with revolving credit cards. Make a goal to get out of debt and stay there. Practice delayed gratification and put the money back each month for that special item you want. You'll avoid interest and the financial bondage that comes from purchasing on credit.
5. Write down your monthly income and your monthly expenses. Make sure to include those things that don't necessarily occur on a monthly basis, such as hair cuts and oil changes. Microsoft Excel is a great software program to use for this. Be sure to make room in your budget planning for a spending allowance.
6. Record your monthly expenses alongside the designated amounts in your budget to keep track of where your money is going. Follow the budget the way you outlined it and make adjustments when needed. You'll enjoy the accomplishment of controlling your spending by having a plan.