We are disillusioned to believe there is money to spend, if there is money in the checkbook.

Hey look, after all the bills, we still have $115 left… let’s go out for dinner!

Unless we are actively managing our money, this thinking can cause big problems. Like (more) debt, money arguments and worse yet, bankruptcy.  

Having a tight, strict budget is unrealistic to most, strangulating to others. Some have been forced into that position. But let’s face it, budgets aren’t easy to stick to. With fluctuating incomes, unplanned expenses and the like, arranging and sticking to a budget requires a small miracle.

Even worse, when you have debt looming about, your funds are that much more decreased and spending money frivolously can put you in another world of hurt.

So we hate budgets (impossible) and we have debt (yuck). But, we have money in the checkbook. What’s a girl to do?

The truth is your “budget” already exists. You just have to manage it better.

Money comes into your life. Money goes out of your life. Cash in, cash out. How this ebb and flow works out is completely up to you (i.e. your budget, but you can call it something else if it makes you feel better. I call it a spending plan).

Bottom line, you have to be in the driver’s seat.

There aren’t a ton of steps you need to muddle your money management with. The rules are the same for everyone and they are simple. By simple I mean they are not confusing, I don’t mean to ignore them because they are effortless. They will take time and attention, just like all other good things.  

You can get really fancy with how you are going to approach each step. There are several different options to choose from.

Whatever system you decide works best for you, have fun with the process. There’s just something about being in control. It just feels so good. Keep that in mind when you’re creating a better life for your family by taking control of your finances and educating yourself!

Here are the rules:  

Rule #1: If you have credit card debt, devise a plan to pay if off, quickly.  And while you’re doing this, don’t add to it! Get the interest as low as you can. Be creative and start wiping it out.

Rule #2: Simply assume unplanned expenses will happen and plan for them. Several online banks allow you to create multiple savings accounts. This is a great way to plan for holiday spending, house your emergency fund and build other savings (clothing, travel, new home, etc.). Just allocate so much money per pay period and sock it away into one of these accounts.

Rule #3: This could be rule number one, but really, these rules apply in no particular order and are all vital to managing your money. Rule number three is to know how much money you make and know your monthly expenses.

Ahhhhhhh.... control!