Budget it!

I know that a vast majority of you have all been seeking creative ways to stretch your dollar in these trying economic times. You are not alone, welcome to the club J. Each day, we all face the demands that this economy has forced upon us, but thankfully, there are many ways to stem this observable fact.

I hope to share with you some very useful guidelines that have helped many stay afloat, or better, successfully navigate their personal financial affairs on their quest to financial wellness.

So, are you currently earning a regular income? Do you have recurring weekly/monthly expenses – cable, utilities, etc? Do you have a mortgage/pay rent? A car loan? Are you repaying student loans? Do you have a family? If your answer to three or more of these is ‘yes’, then a great approach to start is by creating a “budget” which is a very simple tool that has helped millions to optimally manage their monthly income and expenses.

“Call it your map – your guide to keeping you on track in dispensing each hard earned dollar.”

Certainly, your budget is very personal and priorities will vary depending on each individual. The trick though, is to make it very straightforward and easy to understand, no ambiguous accounting terms and formulas to complicate a simple tool. For this, there are many templates available on the World Wide Web. Or, you can easily create your own by compiling a two lists – One of your expected:

1. total monthly income(s)

2. total monthly expense(s)

Add each list separately, and then subtract the total expenses from the total income. Ideally you should end up with a positive number, or at worst, zero.  If your result is a negative number, then you are spending more than you are earning and will need to make some cutbacks. (or seek alternative ways to make additional income!)

Total Income – Total Expenses = Disposable Income

This is where planning a budget beforehand is useful – You get to understand how much ‘disposable’ income (Money that you have left over for miscellaneous expenses, saving or paying off debt perhaps) you have, or don’t, after you’ve covered your monthly/ day to day expenses. No guessing.

It took me 4 of my 8 years of working to actually see the phenomenal benefits of having a budget and how it magically seems to make your dollar stretch. Especially if you have a family, you will begin to see clearly where a budget becomes pivotal in maintaining its financial stability and preventing losses.

Why is it important, hmm? For three of many simple reasons…

1. The black and white
   Figures become more real when they’re in black and white.
   Putting your income against your expenses by writing it down shows you exactly where every penny goes, where you overspent, where you can cut back, and where you can spend some more.
2. Prioritize and Save
   If you’re struggling to meet your monthly expenses, using a written budget can highlight areas where you can save or prioritize expenses. Remember, record everything that requires spending in your budget, it all adds up!
3. Reduces Stress
   Having a budget can reduce stress, since planning helps you to prepare for what are ahead – investment planning, upcoming expenses, etc. It reduces the anxiety you may experience when it’s maintained in your head only.

Budget, budget, budget. Just get started.

Create your budget.

Elle

Elle | Money, Money, Honey!

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Introducing Elle, the new resident moneyMaster here at glamitycalamity.com.

She will be sharing with us insights, tips, tricks, tidbits and techniques concerning, but not limited to, wealth and personal finance management, budgeting and all things money, money, honey.

Here’s a little more about who she really is:

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Elle | GC resident moneyMaster

 

Elle is a boss at all things money.

She recalls that at 7, she wanted to become a “Bank Manager”; and is well on her way to surpassing that goal.

A licensed Investment Advisor in the Banking and Finance Industry, Elle started her career as a teller after completing an Associates Degree in Business Administration. She figured out very early then that she was specifically interested in Wealth Management. 5 years, a Bachelor’s Degree in Business Professional Management from NSU and an Executive MBA from Florida International University later, she’s on her path to doing what she loves most – interacting with people, going into overdrive where she ensures that her client’s financial needs are serviced, and that they are offered unparalleled service.

She’s noticed that as important as personal financing/ budgeting/ money matters is, it is very often neglected and taken for granted. This is where Elle comes in and excels – clients, friends and family have thanked her for it, and here, she hopes to do the same for you.

Elle currently resides in Jamaica, and is interested in gaining experience in other parts of the globe in the near future – we hope to hear of her experiences along the way. She enjoys reading in her spare time, not that she has much of any. Being slave to her handsome, 7-year old, Prince doesn’t allow her much time to do so; these are truly the moments that she treasures.

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**Editor’s Note**

Seeing that I, Supernova, only understood how credit cards REALLY work about a couple years ago, I reckon that I have lots to learn. Great to have you on the team, Elle… Welcome! Freakin’Fanstastic.

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