The best way to keep a budget is to make it simple, automated and KEEP Temptation OUT!
MONEY DECODER has organized your budget items so that only one area in your budget requires regular attention, which is minimal! This is the column marked, DISCRETONARY.” Discretionary spending is where most people lose control of their spending or have an immediate opportunity to make a change that will not significantly affect life-style. If this does not “clear the yellow” you may need to consider making more “serious” changes to your financial life, such as considering where you live, what you drive or what you do for a living.
This is simple, fast and efficient. All you need is just a little bit of discipline and prep work.
Here's how simple it can be:
- Auto-pay Everything, except Discretionary, Clothing, Groceries and Gasoline
Go to expenses page: – far right column includes all “Discretionary” items.
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Set-up automatic payments online or through your bank. If this is uncomfortable or not available, pay bills by check the same day they arrive- no excuses. This saves time, hassles and will make you more effective in other areas of your life.
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This is the critical step. It will take just a little bit of time... but DO IT! Spend 15, 30, 60 minutes (whatever it takes!), but do it! If you absolutely cannot do it right now, set a time for yourself to set-up all your accounts on auto payment, except for those mentioned above.
- CLOTHING, GROCERIES and GASOLINE– use one dedicated credit card (use this one card for NOTHING ELSE!). This should be your best, perfect, absolutely flawless credit card account. It will make it simple to track spending on groceries and gasoline alone and should always be perfectly paid, on time.
- USE CASH FOR ALL DISCRETIONARY SPENDING- (see Expenses page).
- Go to the discretionary items and you will see that this topic comprises mostly entertainment and personal pleasures. You will also notice that (aside from clothing) these are the items that get most of us "off-'track" when it comes to hitting our budget. That's because these tend to be things we want... and not necessarily things we need. Our human desires get the best of us when we make it easy to "give-in" to these areas of temptation. There are plenty of proverbs, quotes, sayings, etc. commenting on how those who are not slaves to "good" habits and "self-descipline" will be slave to bad ones. Using cash instead of credit is the only way to "really know" when your fun is over. Credit cards offer the illusion of more resources. When in fact, they bury you into an insecure future and a grave of remorse. Don't go there! Here's what you do instead....
- Withdraw your discretionary cash budget at the beginning of the month. NOTE: If you have no cash at the start of the month, you need this system! … NOW! That means you need to go on a one month diet of NO SPENDING on discretionary items! Instead, save one month’s worth of discretionary spending for next month. You can do it! If it takes two months, do it. If it takes a second job, get one. But, stop going in the hole – NOW!
- Next, put your monthly discretionary cash in your pocket, wallet or purse.
- When it’s gone, it’s gone. No more discretionary spending. Do without for a few days or weeks. You still can eat and get where you need to get. You just have no more money for “discretionary” items. Don’t cheat. Be strong, have heart, and you will succeed!
This system offers many benefits, such as;
- Makes us more conscious and knowledgeable of where we spend our money.
- Forces us to think twice before spending … cash.is hard to part with.
- Adds to the character and discipline in our financial lives.
- Moves us to the next step financially
- Saves time, money and energy
- Enhances your credit, savings, investments, and overall financial security.
This system is easy, it saves time, it is simple to understand and it is REALITY!
To get started simply go to the “Expenses” page on MONEY DECODER
