Becoming Caring Christian solutions to life's tough problems Programs of Family Life, Personal & Spiritual Growth, Study Skills, & Educational Enrichment 600 North 7th Street Crockett, TX 75835
		How Can You Get Ahead Financially? Don Mize © 2005, Don Mize Do you have enough money?  Most people will say that they do not, and most people believe that more money will solve their problems.  While most of us would like to have more money, the truth is that we allow a great deal of cash to slip through our fingers.  The first step in getting ahead is to use well the cash that comes into our possession. Most of us could instantly improve our situation by adopting a Net Income Budget Plan for a monthly budget.  This simple, workable plan often leads to instant progress.  The essence of the approach is to focus on how much cash actually comes into your possession each month (net income).  Another important aspect of the plan is to see where the money actually goes. All you need is a pencil, a piece of paper, and the ability to add and subtract.  On the third line write "Family Income" near the left margin and list how much each family member contributes each month (net) after taxes, insurance deductions, etc.  In other words, list by name how much cash each family member contributes to pay the monthly bills.  Add up the figures to arrive at a Total Family Income (i.e., the amount of cash you actually have to work with each month). (see example) Make two columns near the right margin.  Label the outside column Money Left.  Label the other column Bills.  Write your Family Income total in the Money Left Column, skip a line, and start listing your bills.  Say, for example, your first bill is rent (or a house payment) for the month.  If you spend $500 a month on housing, subtract the $500 in the Bill Column from the total income in the Money Left Column.  If you started with $2000 Family Income (minus $500 rent/house payment), you now have $1500 in the Money Left Column.  Repeat with the next monthly bill, and watch your Money Left Column become smaller. Continue listing your bills in order of importance and subtracting each one from the Money Left Column.  Most people run out of money about half way down the first time they actually put their monthly bills on paper.  In fact, most people end up with a minus figure.  If you end up with a minus $1500 (-$1500.00), you need that much more each month to balance your budget.  Another option is to cut your monthly expenses. Do not forget to list recreation.  Your recreation expenses each month may include eating out, going to a movie, or shopping.   Many problems lurk in the recreation area.  Consider giving each family member a weekly allowance and limit all recreation to the allowances.  Future articles will explain why this actually helps you stay on a budget.  Be sure and list essential living expenses first.   List credit card bills and other debts last in order to deal with the actual cash you have for expenses each month. The reason for listing essentials first is that you must have transportation, housing, and food in order to live.  Of course, you should pay something on your debts each month, but you must live in order to better your situation.  If you spend more than you take in each month, trouble lies ahead (no matter how much your income).  Future articles will discuss a strategy for paying off debts while not making new debts. Most people are surprised to see where their cash actually goes each month.  Many find ways to improve their situation the first time they list their cash (net) income and expenses.  You will forget some bills; add them as they show up.  Expect to revise the budget many times before all is in place.  However, the first step is seeing where your cash really goes.  Immediately you have an opportunity to make changes for the better.
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