There are many database
systems and techniques available to help a person create a budget, track
expenses, and manage money wisely. The problem is that most fear or fail to
make the time to find one that works specifically for their income, their
bills, and their needs versus their wants.
Needs should always be the first priority
with money – not wants.
Many suffer
ill effects on their health when they do not manage money wisely. Nausea,
anxiety,fear, and headaches are only a few issues of not managing money wisely. Many
times, the struggles produced by a repetitive stressful money situation occur
because the income and budget are not being controlled. Instead, many try to
force money and budgets to do what it cannot do. We must want to live within
the income we have to control it to reap positive stress-free rewards.
Just as each
monthly income is different to each individual, so must the bill system be
managed differently for each person. Every person has to customize their
own method. The internet is a useful tool and free library of resources to help everyone manage
income, budgets, and expenses wisely. This requires creating new skills, knowledgeable
understanding of money, and self-motivation to make it happen to have a
stress-free money life.
Some people work
for their money by working for an employer and paying taxes. Some people do not
work and are disabled or retired to receive their income. Either/or; is fine as long as
the money is being controlled and spent wisely to the income one has to live
within.
These are a few
examples of different monthly incomes.
·
Some
people get income once a month.
·
Some
people get income every two weeks.
·
Some
people get incomes paid weekly.
These issues can present problems with due dates of bills
or simply make it difficult to control and budget money to get from one income cycle
to another. These issues of money stresses will increase with poor management skills
when spending exceeds the income because of failure to budget.
If a person works;
they pay taxes, medical insurance, 401K plans, and additional contributions that
decreases their Net income to live on. When they work overtime, they will
receive additional income and additional deductions that will be contributed to
their bottom line of Net income.
Each year, many taxpayers file their taxes to get back
some or all of their income with a refund. When they depart work, they can cash
out their 401K through retirement or when laid off to get by to find another
job. Their delayed gratification of monies earned, comes at a later time
than those who receive only one monthly check of retirement or disability and
the benefits they receive immediately.
If a person receives
disability or retirement incomes, their process can be much simpler with
their money; though most, will have less than if they were working. But
they must manage all their benefits and count this as income that should
be spent wisely. Many will receive benefits of EBT cards (free food), free
medical care or low cost contribution medical costs, housing costs paid through
HUD or other organizations and utilities can be paid for them through DHHR
services. These are their hidden and
instant benefits, in addition to income; their rewards are instant and many do
not calculate to budget these benefits wisely. Why? Many are not taught too or
they simply fail to understand the importance of budgeting and balancing their
budget of their income.
When we fail to
budget the instant and delayed benefits, we do not control
all of our money.
If a person gets $500 a month in EBT food benefits and does
not manage their groceries monthly or weekly; they usually will suffer at the
end of the month of not having enough food. They will rely on food banks,
additional non-profit organizations, or other systems of borrowing and loaning
to carry them through. This only entitles and enables their bad decisions of
poor financial judgments. The help is temporary, but creates a bigger financial dependency problem. To teach is to decrease problems. To enable is to create and increase problems.
When taxpayers
file their income taxes to get their refunds, do most have a plan for this money?
Do most simply see it as “extra money?” Do many fail to realize that the refund
amount is as additional Net income? The same of overtime wages. How many spend
overtime wages before it gets here by shopping with credit cards and then will
pay off the card or make additional payments without paying the balance off or
simply just waiting until the overtime is on the net income before they spend
it?
In America, there
is no high class or low class. There should never be the word, poverty, in
our financial communication language. For the benefits of those who work and
those who do not work will balance out to the primary financial needs of
survival – not one above the other. Many times, those who choose poverty or other substandard choices of living do so at freewill or suffer because of neglect to be taught money education that can help them to help self.
Poverty is truly an individual state of mind and personal choice. Those who rise above poverty, even if born into it; want a choice and option to not live like that anymore.
If
you believe you are poor and live as you are poor, then you will be poor. If
you believe you are rich and spend as if you are rich, you will be rich. But if
you value life upon needs and not wants and live within your income to budget
wisely; you soon realize how important quality of life is that money cannot buy
nor achieve simply by having money.
The more one
wastes money, the more one wants of money. The more one spends carelessly of
money, the more one seeks to have more money to spend. Money that is not
controlled is money wasted. This is not respecting money as a tool. This is not
respecting self when wasting money by adding insult to injury of bad money habits
that must be broken. So what should money
do?
1)
Provide
Shelter – Housing within the limits of income.
2)
Provide
Food – Budget of groceries within the limits of income.
3)
Provide
Utilities – Budget within the limits of income.
4)
Provide
Transportation – Budget within the limits of income.
5)
Provide
Medical Care – Budget within the limits of income, when medically possibly.
6)
Provide
Basic Necessities of Survival.
Erica Sandberg, Go Banking Rates; teaches us how to create a bill budget and spending budget. One helpful tip is to share the budget and spending with family members to
find new ways to cut expenses and save money on services used in the home. To
brainstorm your family budget.
Everyone will need
to customize a method that works for their individual income. By creating a
bill budget management system one becomes focused on how money is spent,
where it goes, and find ways to save or eliminate waste of money.
Why do you
think companies produce so many financial reports? To increase income opportunities
and decrease expenses that produce waste of money.
Even the most
challenged of Americans growing up in substandard living, abusive, and
neglectful home environments can learn how to grow and gain new skills to
manage money. Even those who are over indulged to the privileges of money
can learn how to respect money and gain new skills to use money as a tool and
not as an object to produce false happiness.
It is easy to get
caught up in sale ads, commercial marketing, and trends that captivate us to
make us feel special or feel good by buying or owning something new and nice
that makes others envy. That’s truth of
human nature.
But when you sit
and are faced looking at that bill statement each month; will you still feel as
good when you pay the bill for what you buy? Will you still smile each time you
see your Net income decrease on what you bought? When the item is paid for,
will you still feel so great about it?
Companies want
profit by their products that produce emotional highs. This strategy can be
detrimental to a customer who spends beyond their income limits. Instead of
companies, learning how to reach and target all customers based on their
incomes; they consistently seek impulsive, emotional, and illogical individuals
who buy before thinking. Not all consumers are like this nor companies; but
most are.
·
Focus on
your income before you buy or spend.
·
Look at all
of the income benefits you receive now.
·
Look at all
of the delayed benefits you will receive.
·
Create a
plan of what you can afford to do now with the income you have.
- Create a plan for all of your benefits.
·
Be honest
about what you can and cannot afford to do.
·
Clean up
the budget and bill system failures you have.
·
Never
stop working to improve your money and to gain budget control.
No one can make you care about your money
and force you to manage it wisely – but you. We can all use help and
new skills to get the most of our income to increase our quality of life and
decrease the stresses of our debts. The first step of walking is to move one
leg slowly at a time. One will fall down but never gives up until they can walk. The first step of money control is to admit our failures
and work to control our money.To move forward with positive changes so we don't fall down with our money again.
The success of managing money is a process
that requires time, focus, patience, compromise, dedication, understanding, and new skills. Make it
happen. Life is too short to stress over money when we do not have too. Before the internet, our learning and skills were limited; but not anymore.
