Let’s be honest, no one really wants to budget. The idea is boring, sounds restrictive and takes quite a lot of effort!
But….. achieving the things, we want from life, and financial freedom being a major one, means we need to save.
Historically the plan has been to create a detailed budget with every line of expenditure itemised, add that all up and at the end of the month after all spending’s have occurred you then know how much you can afford to save.
Well, we have tried this, with many many clients and even ourselves and whilst it may work for a month or two, its almost impossible for ‘normal’ people to be this disciplined.
So, after a lot of research, (credit will need to go to the Automatic Millionaire Book by David Bach) we believe you should do the following things instead.
1) Firstly and most importantly accept you need to save, do not just put your head in the sand and see it as investing in yourself. It’s not boring, its setting up all of those dreams and ambitions of holidays and experiences in the future. You are literally ensuring your bucket list will happen
2) Do a super basic budget, your direct debits, (all of these are easy to find), a guess at food costs, a guess at fun/entertaining cost. Take these off your net salary, the actual amount of money that goes into your bank account each month and voila you have your saveable money
3) Take say half of this saveable amount and Pay yourself First…. So don’t be waiting until the end of the month to make the savings, do it straight away, the day after you are paid and most importantly make it AUTOMATIC, set a direct debit or standing order up.
4) Don’t worry about it, you can change and amend the numbers but starting is the most important thing
It is NEVER to early or to late to Pay yourself First and start securing that future you are dreaming of.