The best things in life are free but… the bills have got to get paid and if you want to buy that car or go on vacation, your finances and how you handle them are important.
We know we need to save money, so we set our financial goal. We are all in and ready to make it happen (especially at the beginning of a year when New Year’s Resolutions are being made) and then something changes. Saving money becomes something that gets put off or something you feel is just not going to happen, instead of it being a realistic and obtainable goal. Why is that?
Is it because life throws you a curve ball or because we don’t know how to get started? Maybe both? While you can’t control life’s curve balls, you can come up with a game plan.
In order to save money, you need to start by creating a budget. Don’t worry, you don’t have to create a budget on your own. You can use a free budget software, EveryDollar (based on Dave Ramsey’s Baby Steps). The EveryDollar plan is designed to help us budget and take control of our finances by focusing on seven easy-to-follow steps and tracking our progress as we do.
With the EveryDollar budget, our income minus our planned savings and expenses should be equal to zero. That is why we start by giving every dollar a name as we create our monthly budget and then follow these 7 Baby Steps:
- Save $1,000 in a starter emergency fund.
- Pay off all debt using the debt snowball.
- Put 3-6 months of expenses in savings.
- Invest 15% of income toward retirement.
- Build a college fund for your children.
- Pay off your mortgage.
- Build wealth and give!
I just created my account with EveryDollar and am looking forward to setting up a budget, sticking with it and reaching my financial goals. Want to join me?
*This is part of a sponsored collaboration with EveryDollar. However, all opinions expressed are my own.