The task of creating a budget can be a daunting one. Financial planners cost money and a majority of the people who need the help of financial planners are barely making ends meet. Here are some tips for real people who need a budget:

Take your financial picture
Write down ALL your regular bills and their due dates
This will include all utilities, housing, food, gasoline, insurance, etc. . .
Include at lease $40.00 miscellaneous money per week.
Write down ALL your regular income
This will include your job or business, child support, alimony, etc. . . .

Now subtract your bills from your income
If there is anything left over then you are not in the worst position.
If there is a negative balance then find out where you can make cuts.

Now put yourself on a schedule. Out of each paycheck pay whatever bills are DUE within the week. If all your bills are due around the same time then you will need to pay each bill in advance until you get to the last bills which will probably be paid just in time.

Once you get use to your new schedule, you can begin to find creative ways to save and cut your costs. Your household should be run smoothly like a business so wherever you can cut costs, do so.

Now go take your financial picture. Next time I'll discuss how to get rid of old debt

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I agree....

You must acquire the habits and skills of managing a small amount of money before you can have a large amount..
You said it Teresa. The Bible also says to whom much is given much is required.
Great advice! I have told this same simple and common sense information to a friend MULTIPLE times. She still is complaining about finances. Another tip...

And I know that. The truth it that paying $150 for one hairstyle is unnecessary just like taking money out of the rent/mortgage to buy clothes just because they are on sale.
Another saying I've heard over the years... If you can live without you can live with!
And one my mother always use to say is to learn how to live below your means. So just because you bring home 35,000 per year doesn't mean you have to spend every dime of it. Learn to save. Just like God requires 10% first, and the government requires their cut out of our paychecks first, we need to start learning to set aside an amount to save first.
I know that is right...I get tired of hearing people say "I will start saving when I pay all my bills off!" They don't get, those same bills will be there and continue growing, but when a rainy day comes, you wont have any money because you paid it ALL to your bills. I am not saying not to pay your bills, but you have to pay yourself first then your bills.
That depends on the severity of your bills and what kind of bills you have. For me I would say to that if you have a debt problem then you ought to pay your regular bills first and then pay something old off, preferably starting with the smallest bills. Then you can begin contacting your old debtors and finding out about consolidation through free credit assistance organizations and you may have just one bill to pay each month to an organization such as CCCS and then from their you can begin saving. Because, in my opinion, having savings in the bank and debtors calling you is like fighting a losing battle. What if they garnish your accounts? Then all your savings would be gone anyway.
I'm not saying place the majority of your money in the bank, but you have to get into the habit of saving something each paycheck. Even if it is just $20 or something. People spend that much eating out everyday for lunch or something. By no means am I saying avoid your debt because it will catch up to you sooner or later...
Oh, ok. I understand now and I agree. For us moms, I think Tax Time(notice how it is in caps like a holiday lol) is a great time to start saving. It is so easy to wait for that tax money to buy all the stuff we and our kids have been wanting all year long. That is money that we didn't have in the first place and could make it without in most cases. Or better yet, instead of shopping, that tax money could put a dent in some debt. I am at that point where I had started to save but now my employment is in the air so my savings may soon disappear.
What bothers me is people who have jobs , regular steady income and MARRIED, always claim to be broke. Can't pays bills, take trips, buy furniture, the simple basics, etc. It's the that "I'm poor", mentality people get stuck in, when its simple money mgmt. In Detroit it's real bad. Folks have money for parties, drinking, smoking, hair and nails and have no car and a empty home.

I get asked often how I do what I do. Plain and simple GOD, and budget, budget BUDGET!
Speak on that Shawnta. It has become the nature of our people to be consumers of goods. We don't take into the account the value of money. We just look at it from the aspect of what can I get with this money. Money is a tool that should be used to make life better in the long run. That means it should be available for our kids and their kids too. It's amazing how when it comes to other races they have what is called "old money" That's money that they inherited and were born into. With us, we have all this power in our hands and we use it to create new money but the sad thing is that our money may never make it past a couple of generations because we get so tied up into spending it in order to prove that we have it to spend. We are still trying to keep up with the Jones and it is hurting us very badly.


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