After the holidays have ended, most of us might find ourselves in a financial bind, because we may have overspent beyond our financial budget.  Spending money on gifts for our family, friends, co-workers, as well as ourselves, is what can put us in debt; especially if we use credit cards for most or all of the purchases.  Usually, when we use credit cards, we don’t track our spending habits, because the money is not being deducted from our bank accounts immediately, so we tend to overspend.  This is one of the reasons why it is better to use cash, because you can easily track your spending habits every time you buy something.   The month of December is usually the most challenging month to stick to the budget.  We can get too caught up on spending money during the season of giving.  However, we have to keep our mind on the real reason for the season and stick to the budget.

 

If you find that you did not stick to your budget in 2020, try to stick to the budget in 2021.  This is a new year to get rid of old bad habits and start fresh with building generational wealth.  You can get out of debt.  You must have discipline and keep your mind focused on your financial goal.  Stick to the budget.  Sticking to the budget means, that you have to focus on your financial needs and not your wants.  It also means that sometimes you have to say, no, when you cannot afford to buy or do something for someone else or yourself.  Stick to the budget.  I am not referring to the times when unexpected expenses occur like repairs to the house, the car, or medical expenses; these are financial needs, not wants.  These are expenses that cannot be avoided.  I am referring to unnecessary expenses that can be avoided.   

 

I know that sticking to the budget is easier said than done, so I am providing you with the YouTube video below on how to stick to the budget.   You can do it.  The first thing that you have to do to stick to the budget is to create a budget plan and try it out.   Start 2021 with a new financial mindset.  To get started, follow the steps below:

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Set a financial goal (Describe what you want to achieve financially)

Make a plan on how to get there (What steps do you need to take to reach your financial goal)

Determine what is your Net Income (How much money do you make, after taxes are deducted)

 

Estimate what your Monthly Expenses are (What bills do you pay each month and what are the amounts)

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How much do you actually have left after All of your Expenses are paid? (Net Income – Expenses = ?)
 

What you have left over is the money that you have to either save or spend, based upon your budget plan.  If you go over this amount, you will find yourself in financial debt. Let's make 2021 the year that we all become debt free.  

 

Watch the YouTube Video:
Source: https://youtu.be/pZDxU74V924

 

 

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By Jason Torrents

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