I cannot emphasize enough the importance of planning out your monthly finances before the month begins. You have to have a plan. You have to know how much money is coming in, how much is going out, and where where it is going– this is the purpose of the monthly family budget meeting.
Setting your monthly budgets can be overwhelming. When planning your monthly spending plan, it’s much easier to prioritize. You need to cover the necessities first and foremost, before doing anything else.
Yesterday was the biggest day on my blog in the history of my blog. Thanks to my friend who threw a link to one of my old posts up on a few Facebook pages.
The link was to a video I posted a couple years back of a SNL skit called, “Don’t Buy Stuff You Cannot Afford,” with Steve Martin and Amy Poehler. It got nearly 1,400 hits in less than a day– which in my little blog world is pretty viral.
Getting on a budget and sticking to it is not easy. In most cases it takes several months and lots of trial and error in order to make it work. But getting it to work is key to your personal financial success. I cannot emphasize the budget enough.
Deciding to get serious about budgeting is one thing, getting the budget to work is another– it can be a real challenge. One way to make the budget work is to use an envelope system.
A marriage has a higher likelihood for success if a couple can agree on these 4 things: Children, Religion, In-Laws, and Money. I didn’t make that up, I just read it somewhere and I think it makes sense.
Do you ever feel like you just don’t want to look at your bank account because you don’t want to know how much is actually there? Ever dread getting a paycheck, because you know every dollar of it will be spent the same day paying bills?
2 Nephi 25:26 “And we talk of Christ, we rejoice in Christ, we preach of Christ, we prophesy of Christ, and we write according to our prophecies, that our children may know to what source they may look for a remission of their sins.”
I found an article that has been floating around the twittersphere today which says that 1 in 5 young adults between the ages of 18-34 receives some kind of a regular allowance from their parents or family members.¹ This is an important topic to discuss, because if you are included in this group—either the recipient or the giver—your financial future will be impacted and your goal of financial independence will be difficult to achieve.
This might surprise some of you (and by some of you, I mean the one or two people who have actually read this thing), but for several years I worked as a collector for a local utility company. If you think about it hard enough you might be able to figure it out– I’ll give you a hint… it heats your house and gives you hot water.
As a kid, did you ever use a magnifying glass to fry a grasshopper on the sidewalk during a hot, sunny day? Well, that is the power of focus. Over a broad area, the sun provides light and warmth. But when harnessed through a small lens, it can fry a bug.