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Welcome back! This week, we are finalizing the first out of eight steps that we will be making towards laying a solid financial foundation for you and your family: creating a balanced budget!
The past several weeks, I have been teaching three techniques that you can use to stop problem areas of your budget: the 24 hour pause, a buddy system, and cash. All three of these can stop cash from leaking out of your budget and can help you spend less than or equal to what you make - giving you a balanced budget!
The trick now is sticking to it! It isn’t enough to just have a beautiful budget on an app. You must also make a pledge to stick to that budget. Do you need to be worried about every penny you are spending? Probably not. Your mortgage isn’t going to change each month and the cost of gas for your car will most likely not dramatically fluctuate.
However, we did identify several problem areas in your budget that you are going to have to keep your eye on. Deploy one or all three of our methods to stay within your planned spending limit and 9 times out of 10, your budget will remain balanced month in and month out. If areas of your budget seem to be out of whack for a couple of months, deploy one of our methods to stop those problem areas in their tracks.
The main thing from this point forward is to keep your budget balanced. Spend less than you make. It may sound simple, but you and I both know it takes work. Be intentional. Stop problem categories of spending in their tracks. And watch as your financial foundation begins to grow off of this first, essential step towards financial health.
Next week, we will check off step 2. It is easy to understand, but be warned, it is hard to implement.
I want to pause and take a moment to thank you. I have received many encouraging texts, phone calls, and emails from many of you who have been reading this weekly column over the past several months and I am so thankful that some of this information has been helpful!
Everyone is on their own financial journey, but I want to let you know that many people are right where you are at. It may seem like your financial situation is unique, but others have gone through and overcome very similar circumstances and you can too.
At the beginning of this year, I began to roll out an 8 step plan that will help you build a solid financial foundation. I introduced the concept of a fuel gauge. There is nothing worse than driving down the road (or through life) on an empty tank. So these 8 steps are to ensure your financial tank is always full so you can have the confidence and the foundation to pursue the dreams that I believe God has placed on your heart.
If you have missed any of these articles, I have started a blog that posts the weekly columns every week. You can find that blog on my business’ website: www.trumbleagency.com/blog. If you haven’t been following along for the past several months, feel free to check out that blog and sign up to receive the weekly column in your inbox.
Zach Santmier is the owner of Trumble Agency, Inc. and the author of the personal financial course, Increase. He focuses on helping families escape paycheck to paycheck living so they can freely pursue their ideal future.
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