$ Getting Control of Our Finances $

Challenge #2

By Patsy Norwood ~ © 2008 ~ All Rights Reserved

After completing financial challenge # 1 you should discover where your money is going, which brings us to challenge # 2 …

A Budget! In challenge # 1 we talked about getting control of our finances and in challenge # 2 you're going to take the information you gleaned from challenge #1 and set up a budget … a realistic budget that you, along with your family, can live within. If it’s not realistic, chances are you won’t be able to stay within it’s guidelines.

After you've completed challenge # 1 add totals together to make sure the amount you're spending isn't exceeding the amount of your income. If your expenditures exceed your income then you must either trim those expenditures down or increase your income.

The next thing you need to do is set up a budget by listing each category that applies to your family in which you spend money each month. In setting up your budget don't forget to alot a category for personal spending. Your personal spending budget may not be but $5 a week but this, dear ladies, is one of the secrets to staying within your budgets. Each adult needs to have spending money that is their very own, separate and apart from the household budget.

After listing each category you need to assign an amount for each which, when possible, is not to be exceeded. Some of the amounts of your categories will be determined by the amount of pre-arranged payments, and some you will be responsible for determining yourselves. At any rate every dollar should be spent on paper in the form of a budget before you get your hands on it. When it comes to money, failing to tell it what to do often results in it becoming like sand running through our fingers leaving us asking, "where did it all go?"

For the first several months after setting up and implementing your budgets you may find that you need to 'fine tune' them somewhat. This is normal and should be done, as all financial issues should be, with your spouse's input and approval.