You must make time to set yourself a budget

Make text smaller Make text larger

  • Financial planning: making a budget ahead of time helps to prioritise expenditure and evaluate what is important

    Financial planning: making a budget ahead of time helps to prioritise expenditure and evaluate what is important


Dear Dave,

I work long hours, and I make pretty good money. The problem is the money from my paycheques always seems to disappear before the end of the month. I know part of the problem is grabbing quick meals between extra shifts, and eating out a lot after work, because Iím usually too tired to cook when I get home. How can someone who has very little free time start gaining control of their finances?

SHEILA

Dear Sheila,

No matter how little free time you think you have, or how tired you are, you must make time to do a written budget every month. This is essential. Making a budget for the month ahead isnít a lot of hard work, and it really doesnít take long. When you give every dollar a name before the month begins, youíre taking control of your money instead of allowing a lack of it to control you.

Start with the income you know is predictable. If that isnít possible, look back over the last few months and find the minimum amount you brought home during a month over that period of time. This will be the basis for your budget. Once youíve established a baseline income, you can write down and prioritise bills and other expenses. Just remember, restaurants are not a priority.

When you make a prioritised spending plan, and start telling your money what to do ahead of time, youíll have the ability to do whatís important with what youíve earned.

óDAVE

Dear Dave,

My wife and I want to begin teaching our son how to make a budget and live on one. Heís 16, and he has a part-time job and a hand-me-down car. Is this a realistic idea?

MIKE

Dear Mike,

Your son is at a great point in life to learn how to make money behave. Even in his situation, when heís still living at home, there are plenty of things he can include in a budget. Thereís gas for his car, along with maintenance and insurance. Heíll need to save a little money ó maybe even for college ó and Iím sure heíll want some spending cash, too.

Sit down and teach him how to make a written budget by figuring out the upcoming monthís income and expenses ahead of time. Also, make sure he knows how to properly balance and reconcile his bank account.

Itís still your responsibility to provide him with the basic necessities at this point. But I love your willingness to teach your son how to handle money intelligently. The sooner he learns some basic money management principles, the sooner heíll be able to handle his finances responsibly in the real world.

óDAVE

ē Dave Ramsey is CEO of Ramsey Solutions. He has authored seven bestselling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 14 million listeners each week on 585 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.

You must be registered or signed-in to post comment or to vote.

Published Jun 2, 2018 at 8:00 am (Updated Jun 1, 2018 at 11:46 pm)

You must make time to set yourself a budget

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon

  • Take Our Poll

    Today's Obituaries

    eMoo Posts