Blissful and Domestic - Creating a Beautiful Life on Less: 4 Simple Steps to Rebooting Your Finances

Wednesday, July 30, 2014

4 Simple Steps to Rebooting Your Finances



 4 Simple Steps to Rebooting Your Finances on Blissful & Domestic

 That Hubby of mine is at it again. 
Here is a post written by that green eyed man of mine :)


In the course of living our lives, rebooting our finances, happens to be a recurring theme. Often times we think we have set our budget and we have done our part. This type of thinking often leads to our additional phrases of "what happened", "I didn't know we were spending that much", and my absolute favorite "So that's where all the money went". The following four steps will lead you to a better fiscal foundation. The thought,"It will take reward without effort", is a lie. There is no quick fix for the problems we face in life. It takes effort and a change in habits and behaviors. So now we just have to get started, take a deep breath, and count to four. Let's get ready for a new change and a better tomorrow. You can do it!

1) Talk about your finances:

This is where the reality starts to dawn on most of us. We take a hard look at what comes in and how it goes out. Take stock of what income you have. Next, lay out all of your bills you pay each month. Last, get a handle on other expenditures you make. We all must do this. No one is immune.

2) Set a budget

Now that you have an understanding of what comes in during the month, you as an individual, couple, or family need to decide where you draw the line and how deep. This is a personal choice based upon how much debt is owed and the lifestyle you have become accustomed. A lot of people are afraid to make changes for various reasons. I know as people, we can change. The hard part is getting started. Now if you want to have a surplus at the end of the month, pay down your debt and eliminate wants that your situation can stand. This becomes different for all of us; hence, why we talk and then set a budget. Communication is key folks! If you are not communicating, then you're not on the same page. Being on the same page is essential to setting a budget and following it through.

3) Decide what is a need and a want:

So how do we decide a need or a want? I am of the opinion that if it is functional and helps to keep us alive than it is a need. An example of a need is food, water, shelter. My wife feels the same way, but also wants to have a bit of beauty and creativity. The most important thing you can do is listen to each other. I tend to ask a lot of questions about why we need certain things. I love to discuss and debate. The most important thing I have learned is to listen and make mental notes or actual notes to discuss after whoever is talking has finished their side of the conversation. It is amazing how much better life goes when we listen..... really listen to what is being said. As a family, couple, or individual decide what your needs are and how you can meet them.

4) Stay away from debt:

I am a big advocate for staying away from debt like a plague. I know most people feel having debt is a necessary evil in this day and age. I would only agree if it falls into two categories: housing or education. That being said, we usually overpay for both of these. Figure out how much of your money goes to housing each month. I would urge caution here. Do not get more just because you can. Get a home that fits your needs and a few wants. This is critical in making sure your budget does not implode on its self. Debt is an uncaring master and will follow you every place you go. I urge you to lighten that load and be able to invest and save for the future.You don't want to end up having your finances stretched, leaving you a paycheck from disaster.
 
After a while you will find you will have a surplus. Use part of that for an emergency fund for unexpected bills that always happen in life. Objects and people break. This is a common part of life. It helps to gradually build a reserve to use in an emergency, a little here and there will surprise you as it grows over time.

Following these simple steps, will allow your family to live within their means and become a happier, more loving family. In the words of Danielle, "We can all create beautiful on less". The same goes for our finances.

-Jason

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10 comments:

  1. Great post girl! I love budgeting :) Hey - Im having a cash giveaway next month for my 4 year blogiversary and I have a blogger sign up so u can be part. I would LOVE to have you! my readers would def love your blog too! http://www.askawayblog.com/2014/07/blogger-sign-up-ask-aways-4-year.html

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  2. Jason, you should write a book too!!!

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  3. 'Rebooting our finances' ... what a great way to look at it! It seems the finances need to be rebooted often and that is okay!

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  4. Wonderful advice, particularly about staying away from debt and the housing expense. I've seen so many people who bought a much bigger house than they needed because they could afford it, only to end up losing it when something happened to their financial situation. Needs and wants are a big issue with people these days too, they think they really need something when in fact they really don't. Most of us got by for years without things like cell phone plans, cable tv and so forth. It's not always fun, but sometimes it's just common sense. We have pay as you go cell phones, no cable tv, no gym memberships, etc--and we get along just fine without it.

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  5. Great post! My husband and I totally agree. Debt is the plague ~ it truly is! I just heard a heart~breaking story from my own extended family about how bad debt is and how it negatively impacts others ~ not just the person taking on the debt. I hope that some day you will share the story of your home. I love seeing the pictures of it in posts and then heard that you purchased it on the cheap and have redone and fixed it up! I love stories like that. Please do share some time! Thanks and have a great day.

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  6. Such wise words from a young man. My husband and I are retired now and live this same way. I wish we had learned earlier than we did. We could have done worse, and we could have done better. There was a time in our lives when we were in "stupid" debt, and came to understand exactly what the Bible says about the borrower being servant to the lender.

    I especially agree about people spending too much for houses. When we sold our first home and bought this one, the banker tried to push the idea of our being eligible for a bigger loan for a "better" house. My husband used the best wisdom of his life that day. He looked her in the eye and said "no ma'am, I don't intend to still have house payments when I'm seventy years old." He was determined to buy a house that we could pay off in 15 years on a conventional mortgage.

    It turned out that just months before we paid it off, he developed Parkinson's Disease, and right after we paid it off, he was deteriorating enough physically that he had to take early retirement. He spent three years uninsured, and I was uninsured for four years. During this time we paid cash for all medical care and medicines, and had everything we needed. With a house payment, we would have been in serious trouble.

    Our first home was a very affordable one, also. We held onto it despite his being on lay off for thirteen months in 1980-81.

    Many people are determined to have the McMansion, then lose it when hard times come. My philosophy is that it doesn't matter how much house you can buy, it only matters how much house you can hang onto!

    Also, Jason, I admire you for being patient in the beginning and giving Danielle a chance to learn to be the frugal lady she now is, rather than lashing out in anger. She has come so far from how she describes herself in the early days!

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  7. Great tips! It sure is harder than it should be at times. Thanks for sharing at the party and hope to see you again soon! @DearCreatives Theresa

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  8. I feel like summer becomes so busy it's easy for me to overspend and lose track of my financial goals. I definitely needed this post. I would be honored if you would come share this at Pin Your Friday Favorite on my blog. Have a great weekend!

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  9. Every year when we look at our budget, we're always re-adjusting. I often need to do it again in June in anticipation of the next school year in case our tuition payment goes up.

    Thanks for linking up at Fabulously Frugal Thursday!

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