Friday, January 24, 2014

Finance Fridays!

Hey Guys, and happy friday!

I am so excited to be doing finance posts! It is something that I have wanted to write about many times before but my previous blog was not a very god medium to be having those types of posts (more on my previous/current blog to come in another post!). SO I am very excited to announce Finance Fridays to you all!

I haven't made a decision about whether this is going to be an every friday thing, or if I may pick a friday out of the month that I will do it. I'm going to do some brainstorming about the types/amount of things I want to talk about and will make another announcement about the subject later!

So let's get right to it then shall we?

Today I wanted to just quickly touch base about making a budget. Later I am going to post the secondary and third steps to creating this budget, but for now I'm just going to touch base about the basics. Not many people go through the process to see what they spend where and how much they can allot to various activities throughout the month. I think this is one of the biggest mistakes you can make when it comes to finances. Unless you are so overwhelmed with the amount of money you have coming in (yeah, we all wish right?) then you need to have a budget. Period.

This doesn't have to be anything fancy smancy like a spreadsheet in excel, (although I am planning on posting one later for all you neat freaks like me who like to have all your ducks in a row!) it really can just be a piece of paper on it with what you spend each month.

I find that most of us have no problem telling anyone how much our rent or utilities are each month, as those are things that usually don't change, however, it is usually harder to nail down how much you spend on things like eating out or gas. For things like this, I choose to go back 2 months in my checking account and add up how much I actually did spend on those types of things. If you spend cash most of the time on these things, start an envelope for the receipts from those things and then add them up after a month.

Having all of your expenses listed out in a visual way is one of the easiest ways to see where you may be spending excess money each month. The first time I ever did this, I realized in one month I spend almost $200 for coffee…and I'm totally not kidding!

Gathering information is the first step in creating a budget. You won't have any idea where you can save money if you don't know where you are spending all of your money.

In the next Finance Friday I am going to talk about how we are going to analyze this information! Yay for saving money!

I'd love to hear about you trials and successes! Please comment below, I love hearing from you guys! If you have any additional questions please head over to my contact page and shoot me an email or contact me via social media!


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