If you have been keeping up with my finance blog, you know I love to budget! It gives you a sense of control when it comes to your money. I believe in doing a zero-based budget. This means your income will always equal your expenses. With this type of budgeting, you are telling your money where to go every month. I want to give you a recent example of how budgeting frees you instead of constricts you.
I have a line item on my budget for clothing. If you know me, you know I rarely use it. I am always wearing things out until I have to give it up. This month I had a coupon for DSW, and I was like I really do need some new shoes. Me being that cheap person that I am, I didn't want to buy any because I hate spending money! Then it dawned on me, Tiffany you budget for clothing every month, use it! So, I was able to buy new shoes, guilt-free. It didn't slow down my debt payoff or put me in the position to sacrifice something else. It was already in my budget! I wanted to tell this story because I hear people tell me all the time that budgeting feels like a restriction. But it is in instances like this where it actually has the opposite effect. I don't feel bad after purchases. I don't feel like I have to sacrifice one thing for another. I feel free! Budget, budget, budget!
Here are some links to help you get started:
New Year, New You? How Budgeting Can Help
Budgets, Budgets, Budgets