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Accessing
your inner beauty as you create financial peace of
mind
Still
suffering from that spending spree last year? Still
sorting out how to improve your finances this year?
It's hard to have inner beauty and focus on your dreams
when your mind is churning over how to handle the
latest bills and rising utility costs.
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Judy
Lawrence |
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As
a reader of lamasbeauty.com, you understand that
beauty starts on the inside. How does that relate to your budget?
Part of inner beauty is having peace of mind, confidence and a
sense of grace. Wouldn't you like to have that same peace, confidence
and grace flow through your financial affairs? Well, you can.
It's all possible when you have a plan - a financial road map
- to take you through your days, weeks and months. So how do we
get this road map?
Road maps don't just happen. The number one habit of highly effective
people, according to Dr. Stephen Covey in his book Seven Habits
of Effective People, is being proactive. Things don't happen to
them, they make things happen.
You too, can make things happen. We are going to help you chart
your road map so you know exactly where your money is going and
where you want it to go.
These proven tips, taken from The
Budget Kit workbook, will guide you through
the process of getting started with your budget -your own personal
financial road map to success.
Have
desire
What
do you really want in your life? Freedom from debt? Security of
savings and retirement? Satisfaction of having a beautiful home?
Changing behavior starts with a clear and strong desire. Without
it, how will you change habits of using the credit card when you
know the money isn't there? How will you change the pattern of
spending cash impulsively to satisfy immediate wants? How will
you change your routine of paying high late fees due to late bill
payments? What are you willing to do to change your life? What
are your priorities that will motivate you to learn and use a
new and effective spending plan?
Prevent
surprises
This
is the missing link that will turn your budget around.
Outline all the expenses you can think of that occur throughout
the year on a periodic versus monthly basis. Expenses like annual
property taxes, semester tuition, quarterly utilities, holiday
and birthday gifts and celebrations. When you really review your
records and think about your household and lifestyle, you realize
these expenses do not have to show up as surprises.
Now add in the proactive factor. Total up these expenses. Divide
by 12 months and see if you can slowly start putting that amount
aside each month in preparation for the next upcoming "surprise".
Notice that monthly total. Without a proactive plan, this is the
amount that gradually shows up on the credit card balance or consolidation
loans.
Don't
let accidents happen
Anticipate
emergencies. Again, you can be proactive. Take preventative measures
concerning your health, car, home, children, pets. Floss your
teeth daily, change your oil regularly, take your children and
pets in for their shots.
Of course, accidents still do happen. This is where the proper
insurance coverage and emergency savings come in. Know what your
coverage is ahead of time so it definitely covers what you think
it is going to cover.
Be sure to pay yourself first. One of your fixed monthly bills
is the emergency savings. Don't worry about putting in enough
in the beginning. Start the habit. Save consistently. Put aside
whatever amount you can, whether $25 or $250, 5% or 10% per paycheck.
The point is to start saving money immediately.
Map
your monthly money
Plan
out each month ahead of time. Know your monthly needs. Realize
that every month has its additional unique expenses on top of
the regular ones - more groceries, higher heating bills, added
child care. Exactly how much do you need to cover your fixed bills,
the utilities, groceries, transportation, children and your faith?
That's usually the easy question. Now for the next level. What
else will you need or want as you plan out the new month? What
will your entertainment costs be for movies, CDs, books, theater,
and dinners? What about lunches, gifts, haircuts, parties, etc.?
Be proactive instead of reactive. Outline those monthly expenses
ahead of time. Know just how much income will be coming in compared
to what you anticipate going out. If the number shows up short,
you have time to make some adjustments before the month begins,
instead of in the middle when you have more month than money.
Know
where your money goes
Do
you know how much those Starbucks cost each month? Any idea how
much the lunchs total the end of the month? How about the dry
cleaning, greeting cards, toiletries, clothes, makeup, electronic
gadgets to name a few? Tracking your daily spending will change
your life. Over the years I have consistently heard money trackers
tell me that once they started tracking their money, they started
spending less and saving more.
These proactive actions are not about deprivation. On the contrary,
these actions are all about making things happen. When you know
where you money goes, when you direct the money where you want
it to go, when you have the money to cover all the things that
you want - then you will have financial peace of mind, confidence
and grace in your life.
Discuss
this article with others right now at
The Salon!
Judy
Lawrence has been counseling individuals, couples and small
businesses since the 80s. Using her book, The Budget Kit: Common
Cent$ Money Management Workbook as a hands-on tool, she has
helped her clients and readers overcome debt, prevent bankruptcy,
start saving and ultimately gain confidence and peace of mind
in the process.
To learn more about Judy and her books including The Budget Kit,
Money Tracker: Keeping Tabs on Your Spending, and many others,
please visit her website at www.moneytracker.com.
You may contact Judy at judycents@aol.com
or (650) 962 9524, or you may write to her at P.O. Box, 2443,
Cupertino, CA 95014.
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