We’ve all heard these sayings…‘Money isn’t everything” and
“There are so many things more important than money.’And while these sayings may be true, a lack of money can cause many more problems than having money does. While money isn’t everything I put it right up there with oxygen, because in today’s world, being able to earn enough to live is a necessity.Many people get trapped in the consumer debt cycle where you get all the ‘things’ you want, but lose control of how you pay for them. The debt ends up controlling you. This is how the cycle goes: You borrow money to buy some furniture or a car; but with all the interest, you end up paying twice as much as it is worth; and by the time you have paid it off it probably needs replacing; now you have to borrow again.Worse still is credit card debt. Extremely high interest rates mean that you can actually stay in debt for many years paying off things that have long since gone into the bin such as clothes, toys or holidays.In these instances, the obvious answer seems to be to just stop spending, but that is rarely a practical solution. The simplest, most effective solution is undoubtedly managing your money, aka budgeting.Budgeting = Being in control.To some people, the thought of budgeting sounds like torture: hours of calculating figures and filing receipts. Others think that writing down their income and expenses then working out what is left is a budget, but that’s just a list. Neither of these are true.A true budget, or as I prefer to call it a ‘Cash Management System’ is when you take this list one step further. With the right tools, you can quickly and easily record what you are actually spending against what you had planned to spend. From this, you can make weekly decisions to adjust your spending and make a plan for what is left available for the month. That is true control.Once you have control of spending, you will find you have more money. For most people, it can be quite shocking to see where their money is really going. We often spend more than we think on items we don’t really need. Having a visual record of where your money is going helps you prioritise what is really important and gives you the incentive to improve your spending.
The more organised you are the more money you have.
There are many more tricks to reducing debt, and I’m pretty sure I’ve tried them all – but most importantly we make it fun.I look forward to sharing more with you soon.Chris ChildsP.S. Our Budget Bootcamp includes having the right tools, and also having the opportunity of mixing with other people just like you. We share tips and tricks, recipes and menu planning. We have a facebook group where we can share information and motivation.