5 Steps to a Perfect Budget: It's a Must if You Want to Get Out of Debt

I argued with my wife for years that we needed to have a budget. If we had implemented one a few years ago, we may have not had the financial problems we have today. But that was before and the now is; we have a budget in place and it is working quite well. The thing is most people haven't even gotten that far.

Most people hate to put together a budget much less have to be on one at all. A budget is basically a business plan. By having a budget you're just writing down your spending plan for the month. For many, a budget is a restraining device like shackles, a ball and chain, or like being handcuffed to a post. When you have a budget you have no freedom.

In actuality, a budget is freedom. You still get to spend money, but this time you know exactly what it is going towards. For most, like us, starting a budget enables you to find more money than you thought you had.

Since my current path to paying off my credit cards and to financial freedom is through Dave Rasmey's Seven "Baby Steps" my budget plan comes from him as well.

Here's Dave's 5 steps to budgeting:

1. It' won't be perfect the first time you do it. It will start working much better after three or four months.
2. Spend it all on paper before the month begins.
3. Over fund your groceries category. Most people under-fund that category.
4. Husbands (if applicable) need to loosen up and quit using the budget as a whipping tool on their wives.
5. If married, both spouses need to do the budget together. The preacher said"... you are one." 

Dave also discusses this detail in his Financial Peace University seminars. If you are working on paying off your debt or just want to brush up on your finances I recommend taking the 13 week course. To find a location of the seminar go HERE.

"A budget is telling your money where to go instead of wondering where it went." - John C. Maxwell

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

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