Create a Budget – The Preliminaries
Create a Budget
Be a Rockstar!
Wealth Building Tip #1 – Create a Budget, Household Budget
Most of my clients fall into one of two camps. I know my numbers. OR I don’t want to know my numbers. Fear not! Both parties must create a budget or I won’t graduate them. The sooner you get a grasp on the financial basics the happier you will be. Even your sex life will improve . . . so I’ve heard.
What goes into your budget? Everything. Yes, everything. We want to go through a detailed categorization process ONCE so that you can create your own system and (hopefully) never (….well, rarely) need to go through this process again. Brace yourself, it is time to create a budget. And the crowd goes wild….
Create a Budget Action Items:
1. Collect all financial statements (bank, credit card, investment), particularly the ones that show you how you’ve SPENT money over the past 6 months, 12 months to be really thorough.
2. Grab a grande cup ‘o joe with a cookie.
3. Using your preferred “Miss Mentor – Create a Budget” approved tools, prepare for work.* By doing this longhand once you will see all sorts of things you need to know . . . ONCE. That is all you need. **Caution** this is not the time to depend on Quicken or MS Money. Resist the temptation.
*Approved tools: spreadsheet program OR legal pad and pen. That’s it. No cheating.
If you ask really nicely, I’ll even make free budget worksheets available to you. Please, please, please!