If you find yourself using a credit card to get yourself through the month, you may be spending more than you make. To keep it from getting out of hand, you need to create a budget. To some people, it is a nasty word that means structured limits, and restriction. To others, it is a type of freedom in knowing their restrictions; a strength in recognizing limits. Lets take a closer look.
If you do not have a budget, you probably don’t know how much you spend every month on water, electric, or grocery. You know how much you spend on mortgage, car insurance, and car payment because it is a fixed amount every month. Cars are sold for an amount, then divided by months so you have a fixed monthly payment. This is the same for your car insurance and home. So why can’t you have a set amount to spend on grocery, water and electric? You can, and you should. Doing these things will show you what you have left over, and it is your choice what to do with it. That is the freedom some people feel in knowing what they spend in bills.
Seeing a difference in your expenses is easier to do that you think. Don’t let the water run as you brush your teeth, turn out the light when you leave a room, turn the heat down by 2 degrees, turn the porch light off earlier. These may seem like simple things, but I promise you they do work. If you work outside your home, think about that; you are gone for 5 hours, or 8 hours (include your commute time) and unplug the power strips in your home and keep the heat down until everyone is home.
If you know what you spend in your monthly bills, then you are ahead of the game. You will then know what is left over and in there lies the freedom. What will you do with it? Will you get a gym membership, fund a new hobby, use the extra every month to pay off that credit card bill early, start a savings account, buy the kid next door new shoes? The possibilities are endless. Make a difference with it in your life, or the life of someone else.