Do You Need A GPS For Your Money?
“I don’t know where my money is going!” Have you ever said this before? One of my coaching clients came to me with this common complaint. He had a six figure income, but he was having trouble paying his bills. He saw his money coming in, but he did not see where it was going. He needed a GPS for his money. When we think of a GPS, we think of the device that we use while driving that helps us find the location to which we are driving.
How can a GPS help with your money? I’m glad you asked. A GPS helps us to reach our destination. We put in the destination, then the GPS tells us how to get there. A financial goal is just like a destination. A budget, like a GPS, can help you to reach your financial goals. A budget is made up of income (the money you have coming in) and expenses (the money you have going out to pay bills, make purchases, and fulfill other obligations). First, you need to write down your monthly income and your monthly expenses. Then you subtract your monthly expenses from your monthly income to see if your income is greater than, equal to, or less than your expenses. Shortly, we will talk about what to do if you have money left over or end up short. This is all part of the budgeting process.
Just like a GPS, you need to constantly check your budget to make sure that you are staying on track. The first month or two may be surprising because now you can actually see where your money is going. Now, you can decide to cut back your spending in one or two categories and/or increase your saving or debt reduction.You may even reallocate how you are spending your money. This can be difficult without a budget. By the way, my client followed the budget we set up, made some changes in his spending and ended up significantly decreasing his debt and saving $1,800 per month. His income stayed the same but now he had a GPS for his money. He “found” out where his money was going and you can too. Start using a budget today. Click here to learn how. All the best.Click here to get a free copy of my eBook: Money Management 101