Understanding budget ratios will separate the person that is only creating a necessary budget to get through the month or a person who is setting themself up for future success. Sis, I know that you are definitely in the 2nd category!
After you create your budget, you may be looking down at the paper or file, saying, now what? Once you understand budgeting ratios, the next step is to take a deep dive into your finances and figure out what areas are overspending in and adjust, Adjust, ADJUST!! Keep reading for four keys for successfully getting your finances in order and gaining real control over your budget!
Look at your budget ratios and determine which areas you out of whack and attack them head-on.The categories that are typically most commonly overspent on rent/mortgage, utilities, and transportation.
When I started budgeting, the one thing I noticed is that my rent was one of the areas keeping me broke as a joke! At that time, I did not make very much money in my business, and my rent was sucking up nearly 40% of my monthly, additionally, after coming out of a season of not working for about nine months. I also piled up a lot of debt, which was sucking out another large portion of my paycheck. I had to figure out how could I downsize my living expenses and allocate more money towards my debt, which leads to our next point.
Clean It Up
Cleaning up your budget is where you start to challenge your love for the "convenient" things. Ask your self….
What can I eliminate?
What can I get a better deal on?
What is a "want" but not an absolute need? Do I need cable or can I settle for Netflix for a few months?
Do I need to go to the salon every month, or can I get styles that last a few months? (I know my ladies can relate to me here!)
What is the one that you are holding on to for convenience, or because it feels good?
What can you get a bit a better deal? Can you have a roommate?
Ask your self, "What is taking away my coins, and how can I eliminate or decrease it to get in a little bit of a better position"?
You know what they say, a closed mouth don't get fed honey! Contact the companies and start asking questions. Call the insurance company, what are you paying for, and how can you get the most bang for your buck. Call the cell phone company and look for better deals. Ditch cable, use Netflix. Do your research and start making calls! Do whatever it is that you have to do to get yourself in a better position. And remember, it is just temporary. It's not going to be forever. You need to get some things for maybe six months to a year. Ready for the next step???
Rinse, Repeat, and Perfect
A lot of experts say that it takes 21 days to create a habit.Three cycles of that make it semi-permanent and after six full cycles you are now leading into a permanent habit. No matter the number of days it takes you to need to do it consistently to build healthy patterns and behaviors that lead to a changed mindset.
Come on sis; you can do this! Until next time,