Budgeting is the first step in debt reduction but motivation must be constant.



If you ever wanted to get ahead financially; if you ever thought you wanted to get out from under a sea of debt; if you ever wondered where the money went; you need a budget! But how do you develop a good budget and how do you stick with it. This is what you need to know.

Developing a Workable Budget :

Review your last 12 months of check registers. If you find cash withdrawals, you must record all cash transactions for the next 30 days. It is imperative that you know where ALL money goes.

Insure you can account for each of the last 12 months of deposits written in your register. If not, find out what they are. You must know all incoming monies.

Beginning at the top in the left hand column of at least a 4 column note pad, write all income source labels down the column-- i.e. INCOME: Wages, Bonuses, Other, Total Income, etc.

Below this enter the obligations found in the check registers such as: Mortgage/Rent, Food, Insurance, Utilities, Phone, etc.

Don't forget periodic expenses such as: Home or Auto Repair, Other Transportations, Entertainment, Gifts/Donations, Healthcare, Property or Other Taxes.

Leave a couple spaces labeled "Miscellaneous" and "Total Expense".

Find the payments in the check registers for each expense. Enter the amount on your budget pad column 2. For irregular amounts take a three or more month total and divide by the total months.

For annual or semi-annual expenses divide by 12 or 6 to get a monthly amount.

At the top of your budget pad, label the other two columns... "Actual Expense" and "Difference".

At the end of each month, enter the actual total for each expense. Determine the difference between budget column and actual column.

If there is a difference either adjust the budget or determine a way to reduce this item.

Motivation To Stay On A Budget

Step 1: Write down specifically what you are trying to do and by when. It must have a concrete time frame, it must be written down, and it must be specific and realistic. For example wanting "more money " is not the same as "10% increase over last year by October first."

Step 2: What are the obstacles? What are your inadequacies? What do you need to get there that you don't already have? What is it that's blocking you? Why aren't you already there? Is there a debt problem already?

Step 3: WRITE a plan to overcome EACH obstacle. List your action steps 1... 2... 3... etc. for each obstacle from above. Be as specific as possible. What will it take to get you past the obstacle that is blocking you from what you want?

Step 4: List the benefits to you. There is no such thing as something for nothing. You must replace a thought process and resulting action with a new thought process which will produce a desired result. There must be a benefit derived of sufficient value and meaning to you alone to be worth the effort necessary to do this and to overcome the resistance to change.

Step 5: Is it worth it? This question must be answered very carefully and honestly. If the answer is yes, do it and DO IT NOW! However, if the answer is no, if the benefit derived cannot muster the desire to overcome the obstacle, you have three choices:

Change the goal thereby reducing the obstacle;

and/or increase the benefit to make it more meaningful.

Drop the entire issue and get on with your life without feeling guilty.

Bonus Step: If you really want to stay motivated you will have to reinforce your efforts through affirmations or self talk. In a few places around the house, place a simple statement of what your are trying to do and repeat the statement as often as possible. The more often you do it the faster the process.

About Christian Credit One, Inc.

Christian Credit One, Inc. is a national, non-profit Christian Credit Counseling organization dedicated to helping consumers achieve financial wellness through Christian credit counseling and education. Established in 1994, Christian Credit One has helped over two million individuals achieve financial security. Christian Credit One is one of the top members of the American Association of Debt Management Organizations (AADMO), Christian Credit One manages clients across the country. Personalized and confidential consultations are available in person, by phone or online. Visit Christian Credit One or call 888-767-9155.

Greg McTaggart, Certified Credit Counselor with 22 years experience, licensed by AFCPE, Director of Christian Credit One and is an expert in budget and Christian credit counseling. Having the combined experience as a licensed Real-estate salesman, Mortgage Broker, Real-estate Broker, Notary, Ace Member of the Cincinnati Credit Executives, Mortgage Assistance Counselor and Spokesperson of the radio talk show The Money Mentor, Greg McTaggart is a qualified Christian Credit Counselor to help you.