The #1 Way To Save Money is to get on a budget. This is indisputable. Here is what happens when YOU DON’T LIVE ON A BUDGET:
60% of Americans Don’t Live On a Budget
That is 3 in 5 Americans. Since we know that 78% of Americans are considered living from paycheck to paycheck (that means they are broke), not living on a budget is a bad idea. How many times have you gotten paid on Friday to wake up Monday and find out your bank account is nearly empty..or worse yet, overdrawn? Where did your money go? Probably went to cover checks you wrote before your paycheck was deposited. Some went to a few groceries. Some you wasted. But it is crystal clear, you don’t have any idea where your money is going unless you live on a strict budget. That is why it is of utmost importance to have a Monthly Budget Planner and use it every single month.
63% of Americans Can’t Pay an Unexpected $500 Bill
Simply, over half of America when hit with an unexpected bill of $500 or more without borrowing, charging, or spending money they need to live on causing them to borrow, charge on credit card, pawn their wedding band or however else they would have to come up with the money. You know why?
They don’t live on a budget. You see, a budget has an emergency fund they would be able to tap for that $500 expense. So what happens is they go deeper into debt compounding their stress and reducing their quality of life causing divorces, depression and sickness.
We Were One of Those Idiots Listed Above, Are You?
We were making 3 times the salary that we make now and couldn’t come up with $500 without putting it on a credit card most of the time. Why, because we didn’t budget our money. We spent it. But when I lost my career job making $120,000 per year, we found that budget real quick. It was a necessity to survive. The sad part is, most of you don’t budget and you have been living broke for years.
Budgeting isn’t really as painful as it sounds. The painful part is living on the budget when you don’t have any self-discipline. But once you commit to living on a budget (even if you don’t need to) you find out that you were blowing a large portion of your salary on junk. Stuff. Crap. You will see that you were wasting a quarter or more of your salary. When you do your first budget, you will see that your money actually goes a lot farther than you thought if you designate where every penny will be spent. Starting your family budget is brutal, but enlightening.
79% of American Workforce Is Not Confident In Their Retirement Savings.
Let me say that again… 79% of the American Workforce are less than confident their savings will be able to provide a comfortable (not elaborate) retirement. Even worse, 47% of baby boomers have less than a $30,000 nest egg. That is one year of retirement savings. How many of these do you suppose didn’t have a monthly budget planner and entries in the planner to save for retirement? My guess would be between 47% and 79%. My guess is also that you are one of them.
The good news is, it isn’t too late. But we have to hurry. A budget includes all aspects of life. You see, we must budget necessities first. Then paying off debt. Then retirement. Then if there is anything left over, we will get to play a little. The bad news is if a car, boat, motorcycle, or other luxury item doesn’t fit in the budget, it’s got to go. When I say go, I mean it must be sold, donated, or otherwise removed from your purse strings. Buh, buh, but I have to have a car, you say……maybe, maybe not. We will discuss that in the budget Informational Guide.
So What Is Your Next Step?
You have got to make a budget. You call a MANDATORY family meeting and when you have everyone’s attention you explain that you are all going on a budget. Then hand everyone a piece of paper and a pen or pencil and tell them to write down everything they spend money on every month to survive. Of course, iTunes and fast food will be on the kids list (which you will instantly scratch off) because the only things that will survive the cut when putting the budget together is food, house payment or rent, insurance, utilities, and anything else that keeps you safe and alive. By the way, HBO does not keep you safe or alive. Just saying.
In the Instructional Guide that is linked below, you will find out how to do this and what tools you will need. We did extensive research to find out the easiest ways for single men, single women and couples to budget. You will see what I am talking about in the Instuctional Guide. We are smart like that, because we know that men don’t want to carry a purse, and women want to be organized. We also know that neither will take the time (most of the time) to do the research needed to make this flow easily throughout the family. That is what we are for!
So follow this link to delve deeper into BrokeLife101’s Monthly Budget Planner (Coming Soon)