Do you feel stuck? Are you not great with numbers or money? Do you not know where to start with a budget? I’m breaking down setting a budget into small 30-minute steps. If you follow these steps every week, I’ll have you managing your own budget in just two months.
- Brainstorm. You will start by brainstorming a bunch of goals you could have. In other posts, I will show you pros and cons of certain goals. However, I’m not going to tell you which is the best goal. Here are some ideas but you should sit down and write your goals with your partner.
- Emergency fund
- Debt reduction or elimination
- Save money for big purchases
- Insurance or Death planning
- Live on less then you earn
- Give to others
- Find work you love
- Prioritize. Once your list is complete, go through and pick out two or three goals that you and your partner want to focus on. Have you ever watched a three-year old soccer game? Each kid’s goal is the same to kick the ball, but they don’t really go anywhere. You need to work together with your partner to create a focus for your goals. The other goals can also be priorities but you need to start by focusing on a few goals at a time.
- SMART. Now that you have some goals set as priorities, convert them into smart goals. This stands for Smart, Measurable, Attainable, Relevant and Timely. You need to specify what your goal is so you can measure it.
- Plan. Now, you can plan. Break the goals into smaller goals. You are not going to specifically figure out where the money is coming from just yet. You are only going to break it up into smaller goals.
Getting started on a budget does not have to be time-consuming or exhausting. You can make your budget work for you. This week, our only focus is to figure out what our goals are and when we want to achieve them.