Saturday, 5 December 2015

TO BUDGET OR NOT TO BUDGET, THAT IS ONE HECK OF A QUESTION!

This being my first blog I may as well start something that we try to do everyday….. and that’s BUDGET… you’ll note that it rhymes with FORGET….. hopefully my small experience in the wide world of living or bobbing about in the water like a cork that won’t be overcome and sink, will be helpful….

So what do I do….?

Well, for start, I can only speak from a single person’s point of view, though there is no reason why with two of you…… and maybe a family… that there is no reason why the principle can not be applied to your own BUDGET…..

Even with the age of computers (AC), iPhones, iPads, Tablets, and all the other gee wiz gadgets, I use an Exercise Book (School note book to some people around the world).

I used an Exercise Book B.C. (Before Computers) too.

Okay, everyone, please settle down and look here and read…..

LESSON 1:

Optional: You can put your name on the front cover of the book and start date. You can add a pretty picture as an added bonus option.

a. Open the book to the first page.

b. On the first page (not the inside book cover but right side of book), you can put necessary information….. passwords (abbreviated just in case you don’t trust anyone else in the house unless of course you are single…:-))

c. Turn over to the 2nd and 3rd page. Now you’re cooking with gas!

d. At the top of the 2nd page you write as 3 column headings: BILLS, AMOUNT, DUE DATE. No need to be fancy about it… yeah, I know, you use a pen….. you know one of those things that could write under water for a mile… that’s if have a need to write under water…. for a mile….

e. Now before we advance too far, has everyone done that…. oh, you don’t have a book yet, but you have a note pad… what are the lines for? Well, you write on them in a neat line…  

LESSON 2 

a. Under BILLS you write the name, e.g., Water…

b. Under AMOUNT… well, you write the amount, say 60.00

c. Under DUE DATE…hmmm, well, you right the date the BILL is due. You must make sure you pay the BILL the DAY it is DUE……. If you have DIRECT DEBIT from some account, preferably a CREDIT CARD… now that’s a tough challenge.

NOTE: WHY A CREDIT CARD?

Because it’s better than a DEBIT CARD from your own account!! Use the BANK’S MONEY.


That way you can gradually pay off the CREDIT CARD at your own pace, but don’t go slack on it. Keep up a manageable payment.

LESSON 3: 

The right side page of the Exercise Book.  This actually can be used as a bit of a daily log, just like a diary. Just a few notes of your day’s events. 

You can’t remember everything you do each day so here’s a chance to jot down the highlights. That’s what I do. I wish I had started when I was a kid then I could remember the things I did.

Nowadays digital technology takes care of that with kids being virtually videoed from the moment they are born.

They’ll know what they were like as children.

BUT BACK TO THE BUDGET…

So there’s the simple plan, just 3 headings, BILL, AMOUNT, DUE DATE.

BUT WHAT ELSE CAN YOU DO TO MAKE ENDS MEET?

LESSON 4:

DO YOU REALLY NEED…..?????

I don’t have air conditioning. Nor do I have a tumble dryer or dishwasher. I can live without them. I just don’t really need them.

Yet they add so much to your electricity bill.

I do have ceiling fans. They are about a A1cent an hour as opposed to air conditioning which is about A$1 an hour.

I also have roof windows (not skylights) and found they were the best thing I could have done in letting natural light in.

The house has large windows letting light in but no direct sunlight in. It was well designed by the original owners. The houses faces south and north.

Change all the light globes to long life daylight (cool) ones which are better than the old incandescent globes that cast a yellowish light (not natural).

LESSON 5

Below the BILLS, ETC, HEADINGS, you write down your accounts balances for the day (through internet banking). This enables you to:

1. Keep an eye on them, making sure no strange figure appears.

2. That the Bills that are due to come out, have done so on the day due.

3. Eg: Credit card Balance showing Total (entire figure owed) and Clear (figure that has actually cleared).

3. A heading for each account and daily balance. This helps you to keep you on track with your money.

IN THE END:

Like a tide, the money flows in and out. What you want to do is make sure you don’t get hit by a tsunami of debt.

Remember too, that you never stop paying for a house once the mortgage is paid ( that’s if you want to stay in that house). But that’s for another Blog another day.

But the BIGGEST BUDGET QUESTION you must ask yourself as you assess the purchase before you, is…. DO I REALLY NEED IT?

GET THAT EXERCISE BOOK and you have achieved one small baby step to BUDGETING.

And just be tough on yourself.

No comments:

Post a Comment