5 Reasons Why You Don’t Organize Your Finances
An important part of my personal organization is my finances. Back in my early 30’s I was introduced to Dave Ramsey and his Financial Peace teachings. This system is simple and easy to understand and spoke to my organized mind. Budgeting is one way to get your finances organized.
What’s currently keeping you from creating a budget? Here are 5 common excuses:
1. No time to budget.
Creating a budget actually doesn’t take that long. I recommend using an excel spreadsheet so you don’t have to recreate the list and math each month. For the first few months you’ll probably need to spend about an hour capturing items you previously forgot and tweaking amounts based on what you’ve learned. Once you get it down, it is pretty much automatic. Plug in your amounts and let the formulas do the math for you.
Dave Ramsey’s site actually has free budgeting tools available on line.
2. Creating a budget is boring.
Really? We do a lot of things that are boring. What’s easier spending a little time creating a budget or feeling stressed about where all your money goes and why you never seem to get ahead?
You can do this! Once you set it up, you’ll realize how easy it is! In one column of your spreadsheet, write down all the bills/people/businesses you pay each month. In the next column, write the dates that each of the bills are due. Sort them by due date.
3. You hate math.
If you can add and subtract, you can create a budget! In the third column of your spreadsheet, enter how much you owe for each bill each month. Add that amount up. Subtract it from your income each month. (This is take home pay) This should equal zero!
4. You keep track of spending in your head.
A budget in your head isn’t a budget. To work well, a budget needs to be on paper or a spreadsheet that you can track. This will also allow, if you are married, for both people to see and record spending. This can help eliminate financial arguments!
5. I budget by keeping track of everything I spend.
That’s great, but it’s not a budget. When you only track spending, then you’re always looking at the past and not looking toward the future. Your budget is your plan for the upcoming month. You’re planning the money you haven’t spent yet. A budget gives you the power to DECIDE how you will spend your money.
Have you been guilty of letting one of these keep you from a budget? Organize your finances and see how much time, energy you have and how much stress you take out of your life.
About the Author
Mikaela Hicks is a Professional Organizer and Online Coach with Optimal Life Space. By day, she helps people transform their homes, offices, and bodies. When she's not removing clutter, you can find her writing, training for a marathon, working in her flower beds, or spending time with her granddaughter.