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Budgeting
Budgeting scares me. Let me just say that right now. Every
time I have tried to create a budget with all of those spreadsheets and columns including the extra stuff that you should be setting aside money for like tires and eyeglasses, I would get a little
nauseas and have a panic attack. I still do. The problem was that a lot of
these budgeting tools are not realistic for most of us single parents or those with limited means. To be quite honest, to actually budget for everything I was supposed to be including in the budget would have required me to work multiple jobs. As a single parent, that was not a feasible option.
I believe the key is to work with what you have. Work with
the cash you have in hand every month. Start where you are. For example, if you get paid every two
weeks, you will get 26 pays per year. That means that two months out of the
year, you will get three paychecks instead of two. Some budgeting tools give
instructions to average that out to a monthly amount by multiplying the average
paycheck by 26 and then dividing by 12. Then use that monthly amount to work out your budget. That might work in theory, but it doesn't work in reality.
Instead, I suggest creating a budget based on the actual money in hand
each month. This means that if you get two paychecks a month for 10 months out
of the year, budget on those two paychecks every month. It’s far less stressful
to budget on what you can count on every month. I feel the same way about child support, especially if it is not very regular as in my case. That might be a post for another time, though. The bottom line is that you should create a budget based on the money you know will be available each month.
Bonus Pays
What do you do with those bonus pays or those two months when you get that third paycheck? When those extra paychecks arrive, utilize the income to
your advantage. Set some money aside for those eyeglasses, tires, or even
Christmas presents. Put some money aside for nonperishables or pay down a
credit card or doctor bill or just add it to your emergency fund. It's up to you to decide how that extra cash can be put to best use. Just make sure to use the money wisely, and that it helps you reach your financial goals.
I'm still working on my budget plan. I've been doing some research to decide what resources work the best for me. I have an old copy of the Total Money Makeover by Dave Ramsey that I plan to review, but I intend to
take my time with this and work on a plan I can live with. Ultimately, for any budget plan to work, it has to be one you can stick with over the long term. I’ll keep you posted
on how it comes together. Meanwhile, you could add your budgeting tips in the comment section below.
Here are some online tools I plan to explore as I work on
creating my budget:
Next Steps:
Start planning a budget
Face the music with regards to the debt
Face the music with regards to the debt
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