Budgeting A budget is simply a "plan to tell your money where to go instead of wondering where it went". Budgeting takes a tremendous amount of discipline. And discipline has no socio-economic boundaries, color barriers, gender specificities or religious restraints. The only pre-requisite to discipline involves a mindset shift. It starts within the mind and then your actions have to follow. It involves action, even when your feelings are not in it. Accomplishing your goals has to start with a disciplined mindset to achieve a goal. You have to start with the end in mind and establish milestones along the way acknowledging progress and just driving all the way through even when you don't feel like it.
You can't change what you can't measure!
follow these steps
1 DEVELOP YOUR WEEKLY SPENDING JOURNAL
2
LIST ALL YOUR MONTHLY EXPENSES
3
LIST ALL YOUR OUTSTANDING DEBT
4
LIST ALL YOUR INCOME
5
CALCULATE YOUR SURPLUS (OR DEFICIT)
1
WEEKLY SPENDING JOURNAL Track your weekly spending to see exactly where every penny is going. It may be helpful to print out your checking account transactions as well. Feel free to copy this sheet for additional weeks.
2
MONTHLY
EXPENSES
List all your monthly expenses even if 1. someone else pays them for you, 2. they are sporadic and flexible, 3. you split them with a roommate or loved one.
cash flow Cash flow problems are the number one enemy to
Cash flow can apply to earned income and unearned
a successful budget. One way to combat cashflow
income alike. Sometimes, it is easy for us to discount
problems is by properly prioritizing your money
income because of its source. We have to change our
prior to receiving it and accuratelyallocating
mindset and treat all INCOME equally regardless of
money to the expenses that occur between the
where it is coming from. We tell clients all thetime, if you
entire period between pay cycles.Prioritizing is the
have a hustle and it brings money into your house –
best way to control your cash flow and guarantee
“INCOME”. If you have a Boo,who pays a few bills or
that you don’t have more month than money.
gives you money every month – “INCOME”. If you are
Prioritization is simply a way to create order based
receiving EBT, Unemployment, Social Security, Child
on importance, value and urgency. With the
Support, Spousal Support, Side Chick Allowance, Main
propoer prioritization you can control your cash
Chick Stipend, Love Offering or anything else that can be
flow. Cash flow is the movement of money in and
used toward one of the expenses that you have – Baby,
out during a set period of time. Prioritizing cash
that’s - “INCOME”.
flow helps you ensure that the most critical expenses are paid first and you are able to hold on
For example, a client who receives a hefty stipend on her
to your money longer. A positive cash flow means
EBT card every month. We helped her with a customized
your money lasts longer throughout a set period of
solution. Her solution involved changing her mindset to
time. You have a negative cash flow of three days
look at the EBT benefits as unearnedincome, splitting
(Tuesday, Wednesday and Thursday) when Fridays
the $732 into four weeks ($183 per week). Change your
direct deposit is gone by Monday morning and you
mindset to begin considering all income as INCOME and
don't get paid again until the following Friday.
calculate it into your cash flow projections.
3
OUTSTANDING
DEBT
List all debt that has an outstanding balance. Be sure to include amounts that aren't paid regularly/timely.
4
A L L
I N C O M E
List all the income you receive regardless of the source even if is it sporadic and/or unearned even unethical or abnormal.
Total Income
_______
Total Expenses _______ BALANCE
_______
5
CALCULATE SURPLUS Add up all your income, then add up all your expenses, then subtract your total expenses from your total income. If your number is positive then you have a surplus. If your number is negative, then you have a deficit.
TIPS & TRICKS If your expenses are more than your income, your budget is in deficit. The following are some tips and tricks that we have found helpful in creating a surplus in your budget. These tips are generic, but can be a reource to begin exploring possibilities.
Increase Income
Decrease Expenses
It may be easier than you think to
We have helped clients decrease
increase your income. We have
their expenses by eliminating
had clients simply ask for a raise
smaller bills such as cable
on their job and receive it. Some
television or at least removing the
other opportunities may include
sports packages. You can also
decrease your deductions on
decrease your cell phone plan
your pay
set limits on fluctuating bills
start a part-time hustle
pay minimum balances on
get a temporary, second job
revolving debt
charge a fee-for-service
consolidate larger debt into one
do a crowd funding campaign
payment
rent out a space in your home
prep your meals and snacks
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