What is a monthly budget? The word budget is defined in different ways. But here we are going to refer to it as our “battle plan”. Why battle plan? Because that’s exactly what we are doing, we are going into battle. We are going to be going on the offensive against our debt and financial mess that we have put ourselves in and take back our lives and begin to live and dream again!
To make it simple, your monthly budget is your plan that you have in place before the month begins that tells you and your money where it’s going and how it’s going to be used to take care of both your needs and paying off that debt!
Once you have overcome the debt trap it’ll be used to show you how much money you are saving each month for all the fun stuff! (Vacation, Your Childs College, Dreams, Investments, and Retirement).
WHY DO I NEED A BUDGET?
No business would ever survive without a written cash flow plan. It would be belly up in just a few short months.
Our personal financial situations are the same way. We need a plan. Many of us have tried to go without a plan and now we are in a huge mess and a ton of debt to go along with it.
I know several people who have gone through bankruptcy. It’s a terrible thing to go through. It’s both terrifying and humiliating. Honestly, my wife and I checked into it at one point because we were so far in over our heads. One thing I do know. For the people that I personally know who have gone through it, one or more of the following was true:
- They didn’t have a plan.
- They didn’t follow the plan.
- They didn’t have a good and balanced plan.
If you’ve been trying to handle your money without a plan you most likely have a huge mess. But, we are going to sort it out, clean it up, and finally get you back on track.
FIRST THINGS FIRST
The first thing we need to do is figure out what happened last month, or even the past few months.
You are ready to move on to your first step to building your own battle plan and begin overcoming the debt trap.
What does the word budget mean to you? Is it your battleplan or do you have another fun name for it? I’d love to hear it in the comments below!