The dreaded “B” word…
No matter how many people I talk to about personal finance, the budget seems to remain the most underrated topic to winning the money game.
Although it may sound intimidating, it doesn’t have to be that complicated. Gathering the required information to get started is probably the biggest hurdle. In about 3 months, you’ll be smooth sailing your way to financial freedom!
What is Baby Step Zero?
Crafting a budget is like finding patient zero in a pandemic. Why? Having a budget is the only way to know how much surplus (if any) you have to start your baby emergency fund and cover your deductibles. After the budget, the other steps fall into place.
For example, you’ll want to know how much you have to allocate to your debt snowball. After paying off consumer debt, the surplus can be invested for retirement. Then make sure to avoid debt once that mess is cleaned up.
Budgeting – a Lifestyle Change
Budgeting our money is comparable to monitoring dietary intake. I know from experience that when I document what I eat in My Fitness Pal, I eat better. (I eat less!) When we keep track, diet improves.
Similarly, when we keep track of our personal finances, our money game improves. Remember that a budget is nothing more than telling your money where to go instead of wondering where it went.
What gets measured gets improved. - Peter Drucker Click To TweetOkay, now what?
Start with my free download. Fill in the blanks. Call me at 570-731-0425 if you need help. If you want a “done-for-you” budget, I can do that, too.
- 0. Written Budget. (Mark’s Step Zero)
- 1. $1000 in Money Market
- 2. Employer Match in 401(k)/403(b)
- 3. Pay off Consumer Debt
- 4. $10,000 in Money Market
- 5. 20% Retirement Savings
- 6. College Expenses?
- 7. 30% Retirement Savings
- 8. Pay off house early???
We will likely be postponing our own final step. If inflation keeps doing its thing, it’s a no-brainer. Using 2020 dollars (borrowed at less than 3%) to pay off 2030 mortgage is hard to beat. Keep in mind that inflation is in excess of 7% under the Biden administration. And there seems to be no end in sight.
Very soon, I’m going to attempt my first YouTube post on how to make a budget using Excel. I will be showing my actual budget and sharing a spreadsheet template that you can use.
As Always…
Thanks for reading! I hope this information provides food for thought. Remember that I am not a certified financial planner, a certified public accountant, a licensed real estate agent, etc. My content is for educational purposes. I am a math educator who happens to have a finance degree. Like they say, never take financial advice from a math teacher! (Do they really say that?)
But you should spend less than you earn, invest the difference, and stay out of debt!
I would so appreciate your sharing my content with anyone you feel could benefit. And if you would like a free exploratory conversation or just want to shoot the breeze about personal finances, call me and leave a message or send a text to 570-731-0425.