A balanced budget is essential to great money management.  It puts you back in the driver seat giving you control of where your money goes and what it gets spent on. 

Wouldn’t it feel nice to be in control again?  It will certainly lower your stress and help you sleep better at night.

You can get there!  It really isn’t that hard or painful.  Chances are you’ve developed some bad money habits over the years and just need a simple plan to get you back on track.

5 Simple Steps to Balance My Budget

Here are five simple steps to help you get your budget under control in no time at all:

1.  Determine Your Exact Income

You need to know exactly what you have coming in to balance your budget.  It is generally best to manage your money on a monthly basis.  So, start making a list of the various sources of money that you have to determine your total monthly income.  For some, this might be a very short list because you only have one source of income and that is your paycheck.  For others, you might have several streams flowing in from things like freelancing, alimony, child support, dividend checks and business ventures.

Make sure you don’t miss any income source.  Once you’ve got a complete list written down, then sum it up to determine your exact income.  This is the size of the hammer you have to work with to balance your budget.

2.  Track Your Spending

Okay, so now you know exactly how much money you have coming in each month, but where is it all going?  You need to take a month to track every single penny you spend.  You must determine where all your money is going.  This is an eye-opening experience.  You will likely be surprised and shocked at how much is being spent on things that don’t seem all that important.  Tracking your spending is a little arduous and most people won’t do it, but that’s why they stay broke.

This is a big step toward putting yourself back in the driver seat with your money.  You’ll be gathering the information you need to make smarter decisions about where you spend what you make.  Don’t you work too hard for your income to simply let it slip through your fingers?

3.  Determine Your Priorities

After tracking your spending for a month, compare your outflow of money to your total income.  Are you spending more than you earn?  It is likely that you are.  This means that every month your are sinking deeper in debt and moving further away from a peaceful night’s sleep.  You need to make some decisions to balance your budget.  You have to set the right priorities for your spending.

What jumps out at you from your log of spending over the last month?  What amount seems totally out of control?  Resolve to cut way back in the areas that are unnecessary so you start spending less than you earn.  This might seem impossible at first, but with just a little sacrifice it can be done.  Take a look at this list of 20 ways to cut spending and these 50 ideas to legitimately increase your income for some inspiration that will help you balance your budget.

4.  Develop a Clear Budget Plan

You’ll want to adjust your money habits on a monthly basis to conform to your new priorities.  The best way to do this over the long-haul is to start a monthly budget.  A budget is a plan you create at the beginning of the month that tells your money exactly what you want it to do for you over the next 30 days.  It is a tool you can use to keep yourself on track.  If you are married, then you both need to agree on the budget before the month begins for it to be successful.

Living on a budget is not as scary as it seems.  In fact, it greatly simplifies your life and reduces your stress because it puts you back in control!  Don’t resist budgeting any longer.  Your budget will become your new best friend if you will let it.

5.  Make Adjustments

You have to remain flexible because a rigid budget will die a quick death.  Life is not always predictable and people are not always logical.  Your budget needs to take both of these facts into account.  You are going to make spending mistakes especially at first.  It takes time to incorporate radical change into you life.  Don’t make excuses for poor decisions, but don’t beat yourself up either.  Resolve to do better next time.  In a few months, if you stay flexible, you will have balanced your budget and you will be feeling much better about yourself.

Be willing to make the adjustments necessary to make your budget work.  It may not be perfect in your eyes, but a slightly compromised budget that everyone agrees to is way better than no budget at all.

Great Money Management Is Within Your Reach

What small step are you going to take today to start getting your budget under control?  Don’t delay another minute!  You don’t have to swallow the whole pill in one sitting, but taking one little baby step right this instant will empower you and give you the confidence you need to change your life.  You’ll thank yourself later!

Photo by penywise

“In character, in manner, in style, in all things, the supreme excellence is simplicity.” ~ Henry Wadsworth Longfellow

The benefits of simplicity in seeking a good life

People aim to simplify their lives for a number of reasons.  Generally, they get fed up with the hustle and bustle of the modern day. 

Let’s face it.  Our lives today can be overwhelming.  We are constantly bombarded with inducements to get us to buy more, do more, and learn more.  By simplifying, we can overcome this, get back to something more basic, and life a better life. 

Here are some of the benefits of simplicity:

1.  Simplicity unclutters our lives

Daily living becomes jammed with stuff, activities, urgent tasks, chores, appointments, responsibilities and information.  When we simplify, we choose to eliminate a lot of this.  An uncluttered life is an unfettered life.  Simplicity gives us back the life we have given up to all the clutter.

2.  A simpler life gives us more time to relax

By eliminating much of the excess in our lives, we have more time to relax.  Our possessions no longer require so much of our time.  We don’t have to work as hard to maintain our lifestyle which gives us more time to unwind.  A relaxed mind is more creative and effective.  Simplicity frees us up to do what we want instead of what we have to do.

3.  Living simply costs less

The less you buy, the less you spend.  This is simple enough, isn’t it?  Of course, the fewer things you own means the less maintenance and upkeep you have to pay.  A smaller, more modest home requires less money to heat and cool.  Avoiding buying things on credit saves you the interest.  There are so many ways that a simpler life saves you money!

4.  You achieve better life balance with simplicity

Balancing your time between work, home and other responsibilities gets much easier when you choose to eliminate some things.  The choices you need to make are easier because fewer things are competing for your time.  This is a challenge that many of us face and where we can gain benefit by simplifying.

5.  Simple living makes you green

Your footprint on the environment is lighter when you live a less complicated existence.  By consuming less, you discard less.  You also emit fewer harmful substances into the environment.  If everyone took this approach, then maybe we wouldn’t be facing some of the challenges out there today.

6.  Less cleaning and maintenance required

Big possessions like cars, boats, hot tubs, and pools often require cleaning and maintenance.  By simplifying, you can eliminate the time and expense required by these things.  We often become a slave to the things we own.  Instead of enjoying these items, we end up having to spend what would be our leisure time taking care of them.

7.  A simpler life means fewer interruptions

The phone rings less often.  There are fewer knocks on the door.  We have time to have a conversation.  All our activities and engagements are constantly tugging us away from quiet time with those that matter the most to us.  In the end, how much of what we are doing is going to matter?  It is usually the least important things that force us to put the truly important on the back burner.

8.  Simplicity allows us to focus

Narrowing our field of view allows us to focus on what is really important.  Things creep into our life until it is so crowded that we can’t decide where we should apply our attention.  It takes effort and some difficult choices to simplify, but it is worth it because simplification will allow you to accomplish more on what really matters.

9.  You will be more organized and able to locate things faster

The less stuff you own and the fewer things you attempt to do will make it easier for you to get organized.  Once you are organized much of the confusion, frustration, and wasted time will disappear.  You will actually be able to find something when you need it.  Wouldn’t that be refreshing?

10.  A simple life has less entanglements

The more that is crammed into our day, the more complicated things become.  We often get entangled in the web of back-to-back appointments, activities, commitments, and engagements we have.  Are the good things in your life robbing you of the great things?  Simplifying will untangle your life and give you back control.

11.  Lowers stress and worry

We have less to worry about with a simpler life.  It is trying to maintain everything that freaks us out.  Once we voluntarily give it up, then we eliminate the source of much of our anxiety.  Let it go!

12.  Reduces busyness

Busyness is activity with no real purpose.  It seems we have a lot of this nowadays.  By consciously choosing to live a simple life, we start to recognize things we do that have no value.  This gives us the opportunity to cut these things from our lives.  Life goes by too quickly to waste time on busyness.

13.  Simplicity challenges us to be more creative

How can you make do in the upcoming circumstance with what you already have?  Answering this question regularly will challenge your creativity.  It will help you to start using your brain again to solve problems instead of just using your pocketbook to try to buy your way out.

14.  A simpler life helps us to appreciate classic beauty

Extravagance is often gaudy.  We overfill our homes and our lives with so much clutter that it robs us of our ability to appreciate true beauty.  Simplifying our surroundings allows us to see the classic elegance of nature.  It gives us a new lens through which we view the world.  A simpler life is just plain pretty!

“Simplicity is the ultimate sophistication.” ~ Leonardo da Vinci

A good life is waiting on the other side of simplicity

These benefits are available to all of us.  All we have to do is make a choice to live a simpler life.  It isn’t an easy decision and quite frankly most people won’t choose it.  However, for some, simplicity is their path to a good life.  They will choose to simplify because they know deep inside that there is no other way for them to go.

Have you simplified?  What benefits have you enjoyed?

If you liked this, you might also enjoy…
A Simple Life Is A Good Life – I Believe Less Is More
20 Hidden Ways Your Stuff Screws You Over
30 Ways to Make Your Life More Simple

Photo by Merelymel13

Long weekend was a chance to reflect on balance in life.

Over this weekend, I did a lot of thinking about balance in my life.  It is easy for me to get caught up in pushing myself to achieve more.  I pressure myself and create stress that wears me down.  In some areas of my life I am a borderline perfectionist.  I want everything to be exactly right.  This creates unnecessary anxiety that spills over into other areas of my life and affects them negatively.  The crazy thing is that I do this all to myself.  It is my attitude that creates this tension.  I make myself a slave to achievement which steals my freedom to enjoy what I have today.

What are you a slave to?

Is there an area of your life that dominates and steals your ability to live life to the fullest?  We can become so focused in one direction that we lose sight of the big picture.  We forget what we are truly striving for.  We need balance between achievement and leisure to truly get the most out of living.  Let’s examine some areas where we might have let ourselves become slaves.

1.  Are you a slave to work?

Of course, this is the easy one.  In America, we often let ourselves become a slave to our work at the cost of family and leisure time.  But, we might think, “I’m not a workaholic because I don’t spend 60 hours a week at the office.”  However, we do sometimes bring it all home with us in our minds.  I’m guilty of this.  I stress myself out at work and then have a hard time relaxing at home.  It takes me a day or two of time off just to unwind.  About the time a normal weekend is over is when I’ve finally unwound enough to start enjoying my family.  This is improper balance.  I’ve made myself a slave to my productivity at work.

2.  Are you a slave to approval?

This one can easily go with being a slave to work.  We often get so caught up in seeking the approval of others, that it costs us the joy of living.  We worry so much about what others think about us and our achievements that we forget to enjoy it ourselves.  We all want praise for a job well done, but if you are so focused on what other’s might say or think about your accomplishments that you drive yourself and everyone around you crazy trying to get it perfect, then you have become a slave to approval.

3.  Are you a slave to debt?

Are you living beyond your means because you want more than you can afford?  Debt is a sign that our lives are out of balance.  We have assigned more value to our possessions than what they truly deserve.  We think that things will bring us happiness so we spend, spend, spend, but all that really comes are bills from Visa, Mastercard, and American Express.  Of course, the debt often stresses us out, creates strife, and forces us to overwork to pay our inflated monthly expenses.  If this rings true to your situation, then you are a slave to debt.

4.  Are you a slave to comfort?

Sometimes, the pendulum can swing too far in the other direction.  We can allow ourselves to become lazy and completely unmotivated.  We become a slave to comfort and leisure.  We fail to invest ourselves to become all that we have the potential to be.  We sit in front of the television all weekend watching sports or old movies instead of getting up and living.  Our children want us to play, but we resist to rest.  We could be reading a book or learning a new skill, but instead we are out on the golf course.  Leisure time is nice, but it has to be balanced with results-oriented action.

5.  Are you a slave to your children?

Many adults have let their children completely take over their lives.  They are consumed with running their kids to their next activity.  They have ballet on Monday, karate on Tuesday and Thursday, piano on Wednesday, and soccer tournaments all weekend.  When you multiply this by two or three children, then it gets really crazy especially with school and church mixed in.  Becoming a slave to our children is not healthy either.  Our children are obviously important and need our attention, but we need time to focus on ourselves so we can feed our own needs for achievement and leisure.

6.  Are you a slave to substances?

When we have lost balance in our lives we often turn to substances like caffeine, alcohol, and drugs to help try to cope with our imbalance.  Of course, these things just compound the problems.  We drink coffee all morning to get ourselves going and then need alcohol or prescription drugs in the evenings to try to relax.  This can become a downward spiral that can lead to some serious addictions.  Any substance that we need to function on a day-to-day basis has become our master and we are it’s slave.  You may want to seek professional help if you have a serious problem with drugs or alcohol.

Balance is the key to freedom.

Seeking balance for a fulfilling and complete life takes effort.  It is a continuous process that is never finished.  We have to constantly evaluate ourselves to see where we might be off track.  When things are just right, then we are happy and productive.  We are also contributing to the happiness of those around us.  Everything seems to just click.  We enjoy true freedom when we break the chains that enslave us.

Is there balance in your life?  What makes you a slave?  Leave a comment and let me know.

Photos by joxin and Ende

I am trying to learn from the mistakes of others in this area.  I intensely pursue success financially and professionally.  However, I also seek significance in my life.  Today, I thought I’d share seven ways I strive to make my life more fulfilling.

1. Living Intentionally.  I make a plan for how I want to invest my life.  If I don’t have a chosen destination with a mapped out route to follow, then I get lost.  This is really the foundation I use to make sure I prioritize those things that truly add meaning to my life.
   

   “The key is not to prioritize what’s on your schedule, but to schedule your priorities.” ~Stephen R. Covey

2. Creating Balance.  I have to work diligently to create balance between work and home.  This is not always easy.  It often seems that these two areas of my life are diametrically opposed.  However, I believe it is possible to be successful in both places.  It just takes effort.  We have all seen those that are workaholics and in the process sacrifice their families.  The result is usually disastrous.  I believe that my wife and children need me in order for them to achieve their greatest potential in life and just as importantly, I need them.  I can only achieve my greatest successes with their love and support.
3. Being Grateful.  According to U.S. Census data in 2006, the median income in this country was over $48,000 per year.  Worldwide this figure is less than $8,000!  I am rich!  In addition, I have a lot of other things to be grateful for in the United States.  I have safety, security and more than enough food to eat.  It is easy to watch the evening news and get depressed with talks of recession, war, and crime.  It is also easy to start envying what other people have that I don’t.  However, this just steals my joy.  I try to focus on what I do have and exercise my gratefulness.
4. Spending Quality Time.  I try to spend quality time with my wife and friends.  I am getting ready to go away on vacation with my wife for a week.  We are leaving the kids with family and just the two of us are getting away together.  We try to do this once a year.  I have found that this does wonders for our marriage.  It also does wonders for me!
5. Giving Time to Children.  I get a kick out of spending time with my children.  They see things that I don’t.  They are full of joy and wonder towards the world.  When I spend time with them, some of their enthusiasm  and creativity rubs off on me.  I believe that there is no better way for me to invest my time.  They need me and I need them.  When I want a good laugh, I don’t search for a sitcom, I go find my children because they can always deliver in this area.
6. Treating Others Like I Want to be Treated.  I try to live by the Golden Rule.  It is a simple moral compass.  It works in every area of my life.  I have found that if you treat everyone with courtesy and respect, you will go farther and be happier in life.
7. Exercising My Faith.  My faith is an essential piece of who I am.  Attending weekly services is a vital part of keeping myself grounded.  It is a positive input into my life and reminds me to do all of the things I have listed above.

These seven things make my life more fulfilling.  I count them as the priorities in my life.  They enrich my heart and refresh me.  They are the well I draw upon for the motivation and drive I need to succeed in the rest of my life.  What do you do to create meaning and fulfillment in your life?  Leave me a comment and let me know.

If you enjoyed this article, please give it a Digg or Stumble by clicking the links below.