#3 Get Real With Your Finances: A crash course on budgeting

**Disclaimer:  By no means are we promoting ourselves to be financial advisors or anything of that nature.  This is based off of research and our own experience.**

What’s up all!

I think it’s time we start getting into the nitty gritty of everything, isn’t that why you’re here?

Let’s talk about your money….oooooh!  Money is very important in today’s society – provides a roof over your head, food on the table, the vehicle to get you to and from your destination, and so much more.  In order to earn money, we must put in time whether it’s working or getting educated.  The end result is to make money to provide for ourselves.

Look at your own personal finances.  What is your monthly net income?   What are your recurring monthly expenses?  What are your necessary expenses?  What is leftover?  And do you have debt?   Lay this all out and get REAL with yourself (it’s okay to grab a box of tissues).  We know, it can be emotional once you see it all laid out in black and white in front of you.  Here’s our simple formula:

TOTAL MONTHLY INCOMEMonthly recurring expenses (i.e. rent/mortgage) – Monthly necessities (i.e. food/toiletries) = LEFTOVER for saving or paying off debt

Once you’ve done this, take a look at your debt (I would grab more tissue boxes for this section).  List them in order from the smallest debt balance (i.e. credit card: $24.00) to the highest debt balance (i.e. car loan: $20,000).  Not many people walk around with $20k.  The easiest way you can clear your debt is to pay off your smallest balances then work your way to the higher balances.

If you haven’t already, you should build your emergency fund.  Start with an attainable amount.  Ideally, you’d want to have 6 months worth of savings should an unforeseen circumstance arise.

Just remember, do not spend money you don’t already have.

“We spend money that we do not have, on things we do not need, to impress people who do not care.” -Will Smith

-Riah and Joel