Harness Money

99% of people do not enjoy budgeting.

It is annoying tracking all your spending. Most of spending is on small items, like drinks, books, groceries, gas etc. Tracking your spending and then reviewing your purchases can be time consuming. But it is a good practice.

There are a lot of tool out there that can track your spending by just connecting to your credit card or bank card. You do not have to lift a finger. But then you do not really think about it or check it or make sure that you are staying on budget. You only look at it at the end of the month and notice that you are over budget and think to yourself: ‘I need to better next month’.

That does not help you.

Budgeting can help you achieve your financial goals.

– Retirement

– Financial independence

– Growing a business

– Buying a house

You need to know where you money is currently going into order to make it go where you want it to go.

That is why I budget.

How do I budget?

Write down all your purchases. Keep a journal or notebook or online ledger or your purchase.

Plan ahead

Dream about your goals and be specific. Where do you want to live? What do you want that perfect house to look like? How many rooms/bathrooms?

How much is that dream going to cost? Then create a savings bucket for that item. It does not matter if it is going to cost $2million. Start saving for it. You may not get that house right away, but you will start working toward that goal.

Repeat this process of all your big desires in life. House, car, travel, school, retirement.

Adjust

Things will always come up and knock you off track.

I just recently had my appendix removed and had to get the shock absorbers on my car replaced. Both unexpected expense. Make sure you keep some money set aside for those emergency expenses and then adjust your goals accordingly.

Focus on the fun end goals

Concert, ski trip, new car, new house. There are a lot of fun things that money can buy. Focus on those end goals that you really want and need.

Enjoy seeing the fruits of your labor.

Budgeting may always feel like labor, but there is a reward at the end of that rainbow.

Money is an important part of everyone’s life. The better you can be at it. The better off you will be.

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