MONEY MATTERS -JUST IN TIME FOR XMAS

By Lorene Fleming – Guest Contributor

Like I was,  there are mothers, single parents, and other people who are struggling to get by but are just not prepared for the financial journey.

  Let’s Hit The Highway
Starting with the basics, a budget!

I can almost hear the groans. No one loves the idea of taking the time to write out a budget, and who even sticks with one anyway?

But mine is not that kind of budget, this one I’m suggesting is simply an account of what you currently spend and what money you have coming in.

Mine does take a little effort though; the goal is to review your spending.

Don’t fudge, here, don’t estimate, get your actual numbers so you know where you are.

Review Bank Statements/Activities

• List your expenditures. Group your expense. Make Headings: home, car, etc.
• Next, use specific categories: rent/mortgage, gas, water, electricity -list the utilities so you know what each one costs. Don’t forget cable, Netflix, etc.
• Place each expenditure into a category, if that isn’t possible , create a miscellaneous heading/category.
• Fixed expenses happen every month and should always be in a specific category.
• Look back 2-6  months so that you have a comprehensive list of your expenditures.

                                               Household Income
Subtract expenses from income, what’s left is your Cash Flow. Is it positive or negative?
                                                  Cash Flow Is Key!

This is the road to your financial goals. Do you want to get out of debt, start a savings plan, grow your wealth? Your cash flow is what’s going to get you there! Increase your cash flow, increase your life. But that’s a conversation for another time.

Right now, we’re only exploring budgets. Yes, I did say budgets! You will make two of them.

First Budget

First, let’s talk a little about budgets.  A budget is simply to see where your money is going. Did you have any surprises? Do you have less cash flow than you thought? Do you run out of money before you run out of month?

This budget will uncover your issues if any. Now that you have your main budget, you have a chance to deliberately plan your future spending and better control your cash flow.

 Second Budget

  I call this the rice and beans budget, perhaps you’ve heard it referred to as the noodle budget or ramein noodle budget. They all mean the same. thing.

What is the minimum you could live on for your basic health and safety? This is not where you want to live for any significant amount of time, but in an emergency what would that be?

This does not include phones, cable, new clothes, steaks, hair, nails, etc. This second budget only includes what you need to be healthy and safe. Rice and beans, or ramen noodles =,shelter, and basic utilities.

What if you lost your job, you have no emergency funds or already went through them, what could you feasibly live on?

Again, this is not where you want to be, but if you plan for the emergency, an emergency  will not catch you off guard.

We will talk again about the beans and rice budget and how this can help you plan your future. This time, we are concentrating The First Budget -your regular budget.

Expenditures

Let’s take a look at these, do they need trimming? Be honest with yourself, here. What do you need? Love? Like? Want?

Needs are what you cannot live, or at least not comfortably, without, shelter, utilities, medicines.

Loves are what bring you true happiness even when you no longer have that thing: Tithing, giving, short vacations ??

Likes are what you enjoy but are not necessary.

Wants are what you don’t need: impulse buys, perhaps are rarely used once you get it, or things you do that don’t bring any real happiness to your life.

My Suggestion
Try cutting out the wants and perhaps cutting back on the likes. Your life will still feel full and your budget will be easier to follow because you are not cutting back on those things that make you happy.

 

 

The big day is just around the corner, it may be a little late to plan for Christmas in your budget but here’s another of my suggestions:

Take a hard look at your past Christmas spending habits. Then remember what Christmas is all about. If you go all out for Christmas and buy all the latest and expensive things for your family, ask yourself why? And what are you teaching your kids? There’s likely a reason for your spending habits, now may be as good a time as any to try and change that.

Christmas is about cheer and giving and happiness, yes; but it’s not about putting yourself in debt or blowing your whole budget on that one day. Sit your family down and let them know things will be a little different, explain to them you are saving money this year and Christmas is about others first. If they are too young to understand, I guarantee they are too young to care if they get the latest greatest things.

Adults don’t get gifts, or they get thoughtful handmade gifts.
Adults can pull names and the gift limit can be $20, that’s what my grown children do.

Children can also pull names for their cousins and/or siblings.
If you have a large family and you feel obligated, get or make something special the whole family can enjoy like a huge tray of personalized homemade sugar cookies, a couple of movies, or a free week/month of Netflix.

Smaller Less Expensive Gifts instead of the expensive gift. Younger kids will have more to open and will be happy with that. Older kids will be okay because you’ve already managed their expectations. The big expensive gift? Start saving for it now and get it for their birthday or next Christmas.

Secondhand Stores – Buy gently used items including toys. Shop in higher class neighborhoods and nearby cities. Veteran Thrift stores may have nicer things, so try different stores, you will be pleasantly surprised.

Potlucks are an awesome way to not put the burden of Christmas dinner on any one family. Planning what you are making ahead of time, making sure you have all the ingredients beforehand, and starting early will help lessen the stress and pressure and keep you from having to make a store run and possibly spending more money than intended.

These are suggestions to help you to avoid breaking your budget, but still being able to enjoy the season

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Hopefully, you found some value in my ideas on budgets, spending, and still enjoying life. Many of these strategies helped me when I first started on my journey of taking over my finances, instead of them taking over me!
Thanks for sticking with me ’till the end, I look forward to next time.

Bye for now. See you on the brighter side.

 

 

 

 

 

 

 

 

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