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  • Prevent a Successful Career from Turning into an Unsuccessful Profit!

    This is not your normal message to spend less than you make. All of you probably already know that! I want to discuss with you factors I have experienced or counseled someone through when he/she was thinking a career change or promotion was the only way to manage bills. Changing jobs to chase a dollar will eventually wear you out.  Many of the people I talk to (although they could use more money) make enough money but don’t know how to spend it or manage it. Here are 5 tips for managing money and stop saying, “I’m broke!”

    1)Potential Money Can't Pay Actual Bills!

    When budgeting, I always believe you should round down when estimating your finances. If you are hourly, factor the least, or average, amount of hours you work weekly. If you are salary, you know what you are getting every month, so planning what money pays what bill should be much simpler. You should budget your spending with the least amount you think you will earn that month. If you end up with more, GREAT.

    If you have the opportunity to earn bonuses, overtime, etc., DO NOT COUNT POTENTIAL MONEY to pay ACTUAL monthly bills. These monies are not guaranteed and should not be factored into your monthly income. Remember, if you were planning to make less that week, you were planning to spend less as well.  Schedule the overflow to go to a savings account or past due debt. 

    2)Budget your spending money!

    I have been every level of broke! Until I realized I wasn't broke! I was misappropriating funds! When my husband and I merged bank accounts I knew we needed to put a money management system in place.
    Too often I hear people say they are broke because they are under paid. The cold hard truth is you accepted your salary when you accepted your job! As long as your job is the primary source of income, you need to adjust your spending habits to reflect your income. How much did you spend on going out to eat, or that $5 coffee every day?

    When you start to identify every transaction, you may realize simple changes like packed lunch and coffee at home make a big difference.  I use mint.com to track every transaction. (There are several money management apps, this is not an endorsement!) I like that it categorizes every purchase (you can change the category) so I see I spent $100 on fast food in 2 weeks! It is eye opening when you see where you are spending your money outside your monthly bills.

    Are you accounting for every dollar spent? Do you actually know every monthly bill, when it's due, (and most important) when you are going to pay it?

    3) Talk about it! (Especially to your spouse!) 

    One of the biggest reasons I got behind on my bills was because I never acknowledged them!Seems silly, but if I didn’t talk about the overdue medical bill, parking ticket, or late credit card payments, I acted as if they didn’t exist! I know I’m not the only one! It was not until I laid out everything in front of me that I was able to see my true financial situation.
    I have heard communication and finances are two of the largest reasons for complications in a relationship. So communicating about finances is a double whammy! If you have a significant other whom you share finances with (or plan to in the near future) you MUST talk about methods to pay bills and debt each of you have. Honesty is the best policy (sounds cliché right?). Being honest with yourself about your method, or lack thereof) for paying off debt and bills on time can be a game changer in your relationship and your life. 

    4)Pay yourself first!

    Emergencies happen….unexpectedly. I always believe you should have an emergency fund. Even if it is $10 - $25 per paycheck. I started saving by requesting my bank transfer $25 per week to my savings account. I never even saw the money. This was equivalent to a movie night with no popcorn! (I have to get popcorn!) Any amount is better than nothing. This helped me greatly when I was in a bind and in need of quick cash. 

    5) When in doubt, Count it out! (Use my freebie!)

    Pull out all your bills, including the one you haven’t paid in a few and gave up on a while ago! Look at every bill and separate them by how often they need to be paid (weekly, monthly, quarterly or annually). Use my free budgeting tool to write down when you will pay the bill based on your pay schedule, NOT when it is due. If a bill is due on the 12th and you get paid on the 1st and 15th, you need to pay the bill with the 1st of the month check. If you have any money management issues, don’t wait until the 12th to pay the bill because seeing that extra money in your account will only be tempting you to spend it elsewhere.
    Did you know some companies will allow you to adjust the due date of your bill? All you have to do is ask. Now don’t go adjusting it every month, typically you can only do this once a year! Lay all the bills out and see what paycheck can pay what. If you seem a little top heavy, see what companies you can call to adjust the pay date to later in the month when you get your next paycheck. Simple tricks like this help you from receiving late fees which can affect your credit depending on the company. 

    Use my freebie!

    So you pulled out all your bills, now what? I am so happy to give you my FREE Budget Planning Tool! This simple excel sheet is the EXACT process I used to become financially stable. I hope this tool works for you as it has for me! Let me know how this works! Visit my website to send me a message and tell me if you have any concerns or praises!

    Download Budget Tool

  • 1 comment

    Love this!!!