Do you know what your net income is? Do you know where your money is going each month? If you don’t, it is costing you money.
The current economic “crisis” is causing many to stop and evaluate their own financial situation. My personal experience as a professional organizer has exposed me to the fact that many individuals and families do not have any type of plan in place to manage their income. They spend money without knowing where it is going nor why. At the end of the month, they are left short of funds and end up using their credit cards to make ends meet. When there is an emergency, they are not prepared and are, again, forced to use their credit cards. This is a major mistake that is completely preventable.
Without having a plan in place for keeping track of expenses, many find that their bills are not getting paid on time. As a result, late fees and interest accrue on their credit cards, putting them even further behind. If they should lose their job, they are not prepared. They have not created a nest egg. If they cannot pay their mortgage, they lose their home. Perhaps they have spent too much money on something else, leaving them with insufficient funds. Cutting back alone does not work. You need to have a plan in place.
The solution is to create a budget that encompasses all possibilities so that you can be prepared. You will be ready in case an emergency should strike such as loss or reduction in income, sudden illness or a large unexpected expense. When your lifestyle changes, such as a birth of a child, the purchase of a new home or vehicle, your budget should be adjusted to reflect these changes.
There are many complicated, time consuming solutions to this problem, but there is also an easy solution. You can create a simple and easy personalized budget to follow so you know exactly what your net income is each month and how your money is being spent that month. Being organized and on a budget does not have to be complicated.
Now, more than ever, everyone is looking for that simple way to manage and budget their money. No one wants to take time to work with a complicated system.
No one has the time!
Take the first step now. Acknowledge that you need to get on a budget and commit to finding the support and tools necessary to get it done!