As I mentioned in my first post, I didn't have any lucrative job prospects at the time I began my journey to financial stability, so for the time being, making more money was not going to be the means to that end. Of course, making substantially more money would have been the easiest and most ideal option, and I was trying, but I needed to make an immediate adjustment, so I got creative with what I had and I would soon realize that I needed to cut back.
Around this same time, I participated in a corporate study of Dave Ramsey's Financial Peace University at my church, which was one of the best things I have ever done in my life. Dave Ramsey is amazing. Aside from giving great financial advice, he inspired me to be brutally honest with myself and ask the right questions. Read his books. Listen to his radio show. Go to his website. It will change your life.
www.daveramsey.com (You're welcome!)
www.daveramsey.com (You're welcome!)
I asked myself: Is there anything I buy that is not an absolute necessity to survive? The occasional trip to Starbucks, packs of gum, energy drinks, eating at restaurants, those few (or 10 or 20) fun indulgences from the $1 spot at Target (and the list goes on and on)? Gone. See ya. Nope. Bye. In the words of my favorite sports announcer Rex Hudler, "You got ta go!" That was just for you KC Royals fans!
Anyway, my situation forced me to ask these questions and it did save me a great deal of money, but even more importantly it changed my life! What it really did was lead me to re prioritize my life and change my mindset about money. You see, the root of the problem was not financial, it was a heart problem. I thought I was entitled to and deserving of anything I wanted. After all, I didn't make a lot of money, but I did work hard, so my excuse was that these simple indulgences (that add up) could be my immediate reward.
But I wasn't happy because I wasn't free.
Another very important thing I learned from Dave Ramsey is that I desperately needed a budget. Now for some of you, this word may have put a scowl on your face, or invoked excuses as to why it won't work for you, or put images of shackles in your head. I've heard and made all the excuses myself at times: Having a budget is so restrictive. My income fluctuates, so having a budget is impossible, right? WRONG! I am living proof that writing a budget is one of the most financially freeing things you can do, especially for those with a fluctuating income like myself! As Mr. Ramsey would say, money is a tool, a resource, and you have to make it behave. Only when you know approximately how much money you will bring in every month, will you know how much you should spend in different categories. Then you will know how much you can save. To budget on a fluctuating income, estimate the minimum amount you are likely to make or have made in the last year or two, or use your monthly average across the last few calendar years. Then from there, subtract the bills and expenses that are set in stone. After that, the money that is left over can be designated for saving or for whatever fund is most essential in the near future.
But what if I never have any money left over, you may ask? Then my question to you is, did you read and apply the first half of this post? The truth is almost all of us can cut back and make sacrifices here and there that can add up to make a monumental difference. But if your answer to my question is yes, and you feel like you have cut back all you possibly can but still can't get ahead, then stay tuned for the posts to follow because we are just getting our feet wet!
*For great budgeting tools, visit www.daveramsey.com or www.ynab.com (You Need a Budget). A pencil and paper also works great, but for beginners/those of you who like a step by step guided process, I suggest the above links.
Another very important thing I learned from Dave Ramsey is that I desperately needed a budget. Now for some of you, this word may have put a scowl on your face, or invoked excuses as to why it won't work for you, or put images of shackles in your head. I've heard and made all the excuses myself at times: Having a budget is so restrictive. My income fluctuates, so having a budget is impossible, right? WRONG! I am living proof that writing a budget is one of the most financially freeing things you can do, especially for those with a fluctuating income like myself! As Mr. Ramsey would say, money is a tool, a resource, and you have to make it behave. Only when you know approximately how much money you will bring in every month, will you know how much you should spend in different categories. Then you will know how much you can save. To budget on a fluctuating income, estimate the minimum amount you are likely to make or have made in the last year or two, or use your monthly average across the last few calendar years. Then from there, subtract the bills and expenses that are set in stone. After that, the money that is left over can be designated for saving or for whatever fund is most essential in the near future.
But what if I never have any money left over, you may ask? Then my question to you is, did you read and apply the first half of this post? The truth is almost all of us can cut back and make sacrifices here and there that can add up to make a monumental difference. But if your answer to my question is yes, and you feel like you have cut back all you possibly can but still can't get ahead, then stay tuned for the posts to follow because we are just getting our feet wet!
*For great budgeting tools, visit www.daveramsey.com or www.ynab.com (You Need a Budget). A pencil and paper also works great, but for beginners/those of you who like a step by step guided process, I suggest the above links.
Wonderful post!
ReplyDeleteThank you!! :)
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