Some people avoid having a budget out of fear it will rule them. No! YOU have far more control by having a budget, than without one. YOU direct how much, when, and where to allocate the money. Just put aside money and point your mind and actions in the direction you desire.
I’ve been called The Budget Queen for years. I recently learned that Margaret King of Philadelphia, PA reins as Queen Budget with a net worth of $850,000.
It began when she was a graduate student. Her budgeting formula? maximize money for investing. She lived within her means. Her life necessities (needs, not wants—things like utilities, food, housing) fit into 57% of her income. She set aside 10% for travel, and 3% to gift family and friends. That’s a total of 70%. The other 30% was for savings, investments, and paying down the principle on her mortgage.
Ten years ago, King paid off her home loan. Each month, her minimum payment was 15% more than what she owed. Once that money was freed up, she put that 15% into investments.
Don’t get caught up on her net worth. Don’t play the “yeah, but—” game. She did it! Awesome!
So can you! You can take budgeting seriously. You can save money. If you really don’t have extra money, don’t start with a goal of paying down 15% over your debt. If you say you don’t have the money, but are spending it elsewhere, then it’s time to look in the mirror and do some soul searching. The only way to manage something is to track it. By watching your spending, you’ll know where it’s going and that means you’ll know how much you have to spend or save.
King’s budget formula is basically the standard 70-10-10-10. Living on 70% of your net. Investing 10% to long term savings. Investing 10% to short term savings. And 10% for fun. This is where I encourage charity, and pull funds for fun from the short term savings. If someone’s in debt, they can use this last 10% for paying debt down. How you break it up doesn’t matter at all. What’s important is that you begin.
Every once in a while, I grab an envelop and for a month I keep track of all my receipts. If I spend money and forget a receipt, I write down the cost and what it was for on the envelop, or piece of paper and put that piece of paper in the envelop. At the end of the month I take a look at where my money’s going. I also check in with myself at a “real” level. Were there a bunch of things I could really do without? It’s not to punish, it’s to cross check desires and actions. If you say you want to save more money, or have more money—but you spend on immediate gratification, it’s not a match. Something has to give.
I am steeped in New Thought (law of attraction, act as if, affirmations, etc.) You cannot pray for money (or anything) and do nothing to draw it to you. Prayer or meditation may be part of that action, but at some point there will be a message for you to “treat and move your feet.” This is a metaphysical saying meaning, pray (sometimes called prayer treatment) and take action. Action begets action. Not action begets wishful thinking.
You can do it! Be the Budget Queen. Be the King within. As within, so without. It’s all about cause and effect. As our beliefs change, so do our experiences.