But I Don’t Wanna Budget!

By MARY ELLEN KALUZA

I understand. Having a “budget” sounds restrictive, like a punishment. What if we call it something else, like a “spending plan”? Does that seem more palatable? 

Planning the money you have coming in and going out is really all about being in control. YOU are choosing where your hard-earned dollars are going, not the estimated 6000 to 10,000 advertisements we see each day! (That’s double what it was in 2007, by the way.) With that much pressure on us, it takes some effort to keep that control. 

Where to start?

1. Know how much money is coming in. This is the net income ”“ after taxes and other deductions. You’d be surprised how many people don’t know that number. (Frequently, they also carry expensive credit card debt.) 
2. Subtract your Must Pay expenses ”“ housing, utilities, loan payments, insurance ”“ think of those things that will result in something bad happening if you didn’t pay them. 
3. Subtract your Must Save For periodic expenses ”“ car repair/maintenance, home repair/maintenance, taxes not subtracted from income, medical bills, emergencies, etc. 
4. What is left? This is where the hard decisions come in – what do you need and what do you want.