Steps to a Successful Financial Future

fin-success

 

When it comes to money, some of us are spenders and some are savers. Money is rarely an easy or fun thing to talk about unless you are lucky enough to fall into the small percentile of individuals who have an overabundance of it. It is important for a household to have a budget in play, however, to avoid rising tempers and stress when one spouse goes over a budget they did not know existed in the first place. Some tips on daily, weekly, and monthly budgeting can be found below.

I do not know if this rings true in the majority of relationships, but my household consists of opposites when it comes to finances. One of us (me) is a spender, while the other (husband) is a saver. It was very hard in the early days of marriage being told I did not need to spend money on something as frivolous as a new outfit. It was clear we had some tension in the money department that needed to be nipped in the bud. After research, we found The Envelope System that was created by Dave Ramsey.

The Envelope System, according to the website, is when you use cash for different categories of your budget, and this cash is kept in envelopes. It allows you to see exactly how much money you have left in a given category by the cash that remains on hand.

The hubby and I would sit down at the end of every month to make a budget for the next month. If we budgeted $300 for groceries, we would take out $150 in cash upon receiving our first paychecks of the month and put it into an envelope labeled groceries. Once we received the second paycheck of the month, we would take out the remaining $150 for the month’s grocery budget and replenish the envelope. Once the cash in each envelope is gone, that’s it.

I was allotted a beauty budget for haircuts, eyebrow waxes, etc., and once my envelope was empty, I was done with beauty for the month and had to wait until the next month for further things. This taught me how to plan and save my money rather than just spend it on a whim.

We also decided that any extra funds left in the envelopes at the end of the month would go into another envelope labeled fun money. If we ever wanted to go to the movies, play mini golf, or do something fun and out of the ordinary we would consult this envelope. You can also use the extra to put into a savings account or some other saving platform to plan for the future, but we already had an envelope for our investments, so the leftovers went to fun money for us.

If you are hesitant about keeping so much cash around, Dave Ramsey recommends an app called EveryDollar, which can be found at https://www.everydollar.com/?ictid=ZM9QX3894 . He also has tips to combatting debt. Be sure to check out his site at http://www.daveramsey.com/ to find a method that fits your household and lifestyle. Money can be a taboo subject, but it doesn’t have to be if you know how to manage it and not spend every cent.