Have you realized that something with your money just isn’t the way you want it to be? Do you have a budget and stick to it?
Maybe you realize that no matter how hard you try, you’re always spending all of the money in your bank account. Maybe you don’t have a bank account. Maybe you have 5 different credit cards and they are all maxed out. Maybe you just looked at your student loan balance and had a panic attack. Once you recognize that something about your money isn’t the way you want it to be, you’ve already taken the first step towards fixing it. Whatever the situation, if you want to change it, you can. I’m not saying it’ll be easy, but keep moving through these four steps and you’ll get through it.
Step 1: Figure out how you got there
Do you eat out for every meal? Spend every penny in your bank account? Have credit card debt you’ve been ignoring and hoping it’ll just magically disappear? Recently gotten out of a bad relationship that left your finances pretty empty?
If this step makes you think it was someone else’s fault, I just urge caution — be sure that you are being honest with yourself about your role and any part you played in getting here.
Step 2: Figure out where you want to go
What’s your goal? Are you trying to pay off your credit card debt? Pay down student loans? Save to buy a home?
Step 3: Make a plan
Which of these 3 situations fits you best?
1. I don’t even know what my money situation looks like, much less have a budget.
– Do you usually spend with your credit card? Log in online and look at the last month. Add everything up in each budget category to see where you are starting. Not sure what categories to use? Subscribe to get the free budget download.
2. I try to be good with my money, but every time I get my credit card bill my heart drops.
– Try one month with cash spending only. If you drive to work or school, take $20 and put it in the car glove box in case you’re about to run out of gas. Then take the rest of the money you have after paying your expenses (rent, bills, etc.) and get that amount in cash. Next, put that in 4 piles, one for each week of the month. That’s your cash allowance. Now leave your credit card in a safe place at home.
3. No matter how hard I save, I can never seem to have enough extra money to pay off my debt.
– Try to stay positive. I’ve been in this spot many times. Check out my posts on how to increase income and decrease expenses for some ideas on where to start.
If you don’t fall into one of these buckets, keep reading. Your situation may be discussed in another post.
Step 4: Start
This is the most important. If you never start, you won’t achieve your goal. If you start, you might have setbacks along the way, but if you keep trying and keep thinking of your big picture, you can get there.
Remember that you can reach your big picture budget goals. Take one step at a time and just keep going. You can do it!