More budget stuff

Can't....help.....myself.......must....post. This is my first attempt at a blog, and I have to admit, it's quite addicting! Actually, the addicting part is that I love talking about this topic! If I were to write about my daily life, I would not be able to think of anything to write about. But since this blog has to do with personal finance I tend to have too many things to write about!

I hope you all are at home working diligently on your budget! Who am I kidding, most of you did not (like me) RUN home yesterday, read the 4 chapters in the book, fill out the quickie budget, and then go on with your day. I have a feeling that some of you will be filling out your quickie budget on Sunday morning before class! That's okay - most of you are not as nerdalicious as me! I really, really love this stuff!

Back to budgets......remember - it won't be perfect, and for some, it may not be pretty. But it's a start - and that's what this class is all about: Giving you the tools and the know how to get a jump start on changing your finances for good. So just give it a try! You don't have anything to lose!

One thing. Maybe some of you have variable incomes. I want to go over that because I did not do a great job explaining on Sunday. If you have a variable income, you will need to write out a list of priorities. For example, here's what one list might look like:

1. Giving ($25)
2. Food ($250)
3. Electricity, water, gas ($125)
4. Mortgage or Rent ($600)
5. ......
6. ......
7. Credit Card 1 ($25)
8. Credit Card 2 ($35)
9. Baby Emergency Fund ($100)
10. Clothing money ($40)
11. Blow money ($20)

So, with a variable income, here's how this thing works. As you get money in, ALL of it goes towards number one until you reach $25. Then all of the next amount of money you get goes towards number two - you have to eat! Eating needs to be a priority! Once you hit your food budget for the month, then you move on to number three. After that, if there is money left over, it immediatly goes towards number 4 - Rent. Then on down the list. Some months, you will get farther down the list than other months. Somewhere on the list will be a spot for whatever step you are on. If you are working on getting current and setting up your Baby Emergency Fund then maybe number 9 your money goes towards that.
Clear as mud?

For you all fixed income people, well, yours will be different as you know what you bring in each month.

We'll work on a zero based budget next week, and that's when we will really get into the budget. Right now, all you have to concern yourself with is the quickie budget. Have fun!!