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4 Unconventional Budgeting Tips Our Parents Should Have Taught Us

4 Unconventional Budgeting Tips Our Parents Should Have Taught Us

Yes, I am a financial service and banking professional, but it may interest you to know to I have also struggled with budgeting a number of times. Like you, I’ve been flat broke at times due to one ‘story’ or another.

The biggest “story” I hear is, “if I had more money, then everything would be better.” But that is a myth and i can attest to it. When business was booming for me and I mean Blowing up!. Hell, my net monthly income was a mid 5 figure, yet I was still finding my self juggling my business and personal expenses almost every month. So let’s move away from the ideas, for now, that you need to either have multiple streams of income or start a new home based business to get a hold of your finances.

Over and over again I had wholeheartedly declared that I would no longer stray from my budget, but like an overweight child starting on a diet, I found myself facing and yielding to diverse spending temptations like they were cupcakes. Hmmpphh!

Here are a few typical things we often say when it comes to money issues:

1. Why don’t I ever have enough money?
2. Where did it all go?
3. Why can’t my family spend less? (Totally my favorite. LOL)
4. Wait, I’m broke again?
5. By next month, we will tighten up the reins, get on track and start saving.

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…I call them “money conversations.” They were all part of my arsenal. Tormenting me as though I was possessed by a thousand demons.

But the year 2009 came with a messiah in the form of a ‘personal effectiveness course’. The veil was finally pulled from my eyes, and I realized that I had been asking the wrong questions all along; making statements that only fueled the fire of my ‘money conversations.’ Oh! the years I wasted telling myself this garbage. Wasted years, indeed.

I literally had a mental block when the ‘money conversations’ topic was brought up in the course. My mind tried so hard to shelter myself from the pain already stuffed deep down, hoping the world would give me a temporary sense of happiness and fulfillment. It felt like the Visa commercials where the view from your hut overlooking the Tahiti is priceless, but to get that priceless moment; it’ll cost $10k for just one trip. See? Even the big wig ad agencies have played on our internal weakness of that need to buy stuff to help us get a temporary relief of our real inner pain. Sad, isn’t it?

…So how do we fix our budget issues?

Gotcha!

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You thought this article was really going to be about budgeting, right? Aww. Cute.

The bitter reality is that it is YOUR THINKING, you will discover to be the problem, not the money. YOU are the actual challenge. Even our parents at one point realized this bitter truth, either they thought it was to late or they just weren’t kind enough to pass it along.

Don’t worry; you weren’t born with this. It has been passed down your family line not by DNA, but by generational habits. It is like when you first discovers what “little white lies” are and how they could be used to your advantage, and gotten away with. That moment, one realizes that control over one’s choices is achievable and that, my friend, is where the fault lies.

4 unconventional budgeting tips our parents should have not only told us but showed us:

1. “If it is meant to be then it is up to me”

Take responsibility for all your budgeting short falls and get the “stories” out of your head. Your mindset will be paramount when getting your budget in shape! This should not be something you “have to do” but rather “get to do”.

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2. “How is this situation or transaction impacting my budgeting habits?”

Keep asking “the question.” While transforming your budget, you will GET opportunities to constantly ask yourself that specific questions and it is NOT okay to NOT answer it. The next time you are tempted to make a purchase, like concert tickets or that new purse ask “the question.” When you get a year end bonus and you are debating to pay down your auto loan or take that vacation ask yourself “the questions”. This budget tip may seem lame, but I assure you that when you challenge your subconscious habits with this question you will WIN this budget war.

3. You have landed on budget island, it is time to burn the ships and conquer your budget

Take massive and drastic actions NOW. Get a journal and take 10 minutes on the first page and write what your financial life will look like in 3 years when you conquer your budget challenge. Go through your bank and credit card statements and categorize the debit transactions. Look at what is essential and whats not. Now cut the financial fat and get rid of everything (for now) that is not essential. You will not reward your self till you can prove to yourself that you can responsibly manage your money.

Go to your bank and set up a “special” savings account that will set aside all the money that is left over from your income after you have paid your essential bills and obligations. This is easy to do since you know how much you make and how much you actually need to spend to keep yourself alive. and we call this my friend, a budget! WOW! For some of you this will be the FIRST time you have actually put this in writing and I want to congratulate you on taking the first steps to budget bliss. What you will find is that if you stick to this budget, you see the “special” savings account grow.

I want you to set a 12 month goal of what that balance will be and what you will spend 30% of that on to really pamper your self. Do you have it? Great! Now add that to your journal as a goal! I want you to look at your first journal entry and that goal everyday for the next 12 months. You should write in that journal every day and record at least 1 thing you did that helped you get one step closer to your financial destination and how it makes you feel. I also want you to enter in at least 1 thing that you are grateful for that day at that moment. because when you have an attitude of gratitude, great things happen!

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4. Get a coach or an accountability partner

This last one is for the people who know they will need to get a push to get their budget under control. I find it funny that people seek out someone to help them get into better physical shapes or even to become a better actor or actress, but they never think about getting a financial coach or just having someone who will hold them financially accountable. Enlisting the services of a financial coach or accountability partner will increase your success rate by 72%. And some of us need all the help we can get.

I assure you that from the moment you start taking on your real inner challenges, your budget will flourish. Face your fears and get to work!

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Last Updated on April 3, 2019

How to Nix Your Credit Card Debt in Less Than 3 Years

How to Nix Your Credit Card Debt in Less Than 3 Years

Debt is never a fun thing to be in. But, there are many actions that you can take that will help you rid yourself of the burden of debt once and for all.

By coming up with a set plan, eliminating your debt can feel much easier than constantly thinking about it.

This post will provide some tips on how you can do this to help you nix your credit card debt in less than 3 years.

Hint: there are ways that are easier than you think.

1. Consider Consolidating Multiple Credit Cards If Possible

This may not be applicable to you, but if you have multiple cards – it is something to consider. Keeping up with multiple bills is time consuming.

It will depend on the balance you have on each. Consolidate ones you can but do not do it to the point that you get too close to the maximum limit. Also, it is ideal to pick the card with the lower interest rate.

Consider if there are any fees or alternatively, rewards, with transferring a balance to another card. Watch out for fees. Note that some cards offer rewards for transferring a balance to them. This is extra cash that can help go towards paying off your debt.

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Having one or two cards can make nixing your debt much simpler than keeping up with the balance of a bunch of cards. Keeping track of paying the minimum towards a bunch of cards is time consuming. Spend the time to consolidate instead to make the overall process simpler going forward.

My tip: Have one main credit card. Have a second one that you use for necessities – such as groceries or gas – that offers rewards for those purchases (a lot of cards do) and set the second one on auto-pay. You should be able to pay off a smaller amount on auto-pay if it is a necessity. If you think you cannot, then you may need to cut down a lot on expenses.

Why do I suggest doing this? Having one thing set to auto-pay is one less thing to think about. One less thing to waste time on. Same idea with consolidating to one main card. Tracking down too many is a hassle.

2. Try to Pay the Full Balance You Spent Each Month at the Very Least

You need to pay off the amount you are spending each month when that bill comes in. This is the amount you spent THAT month.

Do not let the debt keep accruing while you work on paying any unpaid debt that has accrued. It will become a never-ending battle. Try as best as you can to be current on paying for each month’s expenses when that month’s bill comes out.

If this is a strain, consider why. You may need to cut expenses. Or you may need to consider other cards. Or look at where this money is going.

3. Pay Extra When You Can – Every Small Amount Counts

This cannot be emphasized enough. If you are looking at a lot of credit card debt, it can look daunting, but each extra amount that you can put towards the debt will really add up – no matter how small it is.

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It does not just reduce the principal amount that you have left to pay off, but it reduces the amount that is collecting interest. You will always save money with that reduced interest.

4. Create a Plan on How to Pay Extra

Back to the main point, having this plan is giving you one less thing to think about.

This plan should be a plan that works for you. If it does not work for you, your spending habits, and your views on debt, then it will not be an effective plan.

For instance, if a set plan of an extra $50 (or another amount that you know you can afford) works for you, then do that. Set that aside every month and pay that extra amount. Treat it like a bill. Choose an amount that works for you and pay it like clockwork as though it was a bill you had to pay each month.

Little amounts will not nix it entirely, but they will help tackle it and having a set plan can make it less of a chore. Creating a new plan of how much to put towards it each month is an unnecessary added stress.

5. Cut out Costs for Services You Do Not Use

If you are signed up for subscriptions that you do not use because of some free trial or for some other reason, cut it out. Your overall financial position will look better.

In turn, that will make cutting your credit card debt easier. Look at your statements to find these expenses. If you do not use them, you may forget you are paying some unnecessary amount each month. Cutting it out can really add up in savings that you can put towards other needed expenses.

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6. Get Aggressive About It

Consider these points:

Depending on the interest and the level of debt, you may need to give up a few indulgences. For example, instead of ordering delivery or going out to eat, cook at home. Everything adds up.

Other things may be more of a sacrifice. It may be a trip you wanted to go on, or a daily latte habit you’ve picked up. In these instances, consider how important it is to you and if it’s worth the sacrifice. And if it is a costly expense, think whether you can wait to indulge.

Cutting an extravagant expense can really help make a dent in your overall debt. Try not to add to debt when you are trying to pay it off. It will be a never-ending battle. Make it less of a battle with these tips and it will feel easier.

Bottom line: Do what you can to make this process easier for you. Implement steps that do this. It takes time now, but will help overall. Also, keep track of your spending and paying down of your debts. Which is the next point.

7. Reevaluate Your Progress at Set Intervals

Doing a regular check-in can help you see your efforts pay off or maybe indicate that you need to give this a bit more effort. If you check every 3-6 months, it will not feel so much like a chore or feel so daunting.

By doing this, you will be able to better understand your progress and perhaps readjust your plan. Bonus: if you see it pay off, it will feel great to do this check-in. You will get there.

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Finally (and most importantly)…

8. Keep Trying

Do not get discouraged. Pushing it off will make it worse. Just keep trying.

Once your debt becomes lower, each monthly payment will reduce the balance more. Why? You are paying less towards interest. It will be a snowball effect eventually and it will become much easier to manage. Just get to that point. And know once you do, it will feel easier and motivating.

Start Knocking out Your Debt Today

The best way to eliminate debt is to get started right away. Begin by implementing the above steps and watch your debt just melt away. Try out some of the above strategies and see what works best for you. Soon you’ll be on your way to a debt free life.

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