Budget Breakdown

Nights like tonight remind me that I am in fact what most people qualify as a "grown up". Although I shudder when I think that there's no turning back, it's also nice when I realize that I don't have homework and regular tests and quizzes to study for anymore...Either way, I just finishing putting a load of laundry in the dryer, I've updated my resume, applied to 2 different jobs, fed the dogs (housesitting), caught up on phone calls and emails, and now I'm about to sit down and finish the dreaded "B" word-that's right, my budget. (duh, duh, duhhhhhh)

But here's the thing, it's really not that bad. My dad taught me a "formula" that I will oh-so-graciously shared with you that really did help me look at my money as percentages. Here's the first thing; you can't spend more than you make. Simple enough, but that's a hard concept for some people to grasp--like people that charge expense after expense to their credit cards but fail to realize that that money has to come from somewhere. Not to say that credit cards are terrible, I have 2 of my own to build good credit. But before I charge to my card, I make sure I have the money and as soon as I get the card statement, I pay it off. Okay, lesson one-check.

Second, my dad put money into priorities, a breakdown of sorts. First, you pay God--10% of your income are goes to tithing for the church. Now that's the minimum and is taken from your WHOLE pay check, not your paycheck after taxes, but before, and if you are able to pay more and feel like that's where your led, go for it! Next, you pay yourself--10% of your money goes into savings for the future, whether that's a new car, saved up for an emergency, whatever it is a crisis (like, oh I don't know looming unemployment) will come and you need a back up for when it does. Third, you pay "others". Now others is a BROAD category--your taxes, and usually majority of your insurance are taken out of your paycheck automatically. But then you have to deal with the "unarguables" as my dad calls them; rent, utilities, doctors visits, gas, car services, groceries, etc. Then whatever you have leftover is just icing on the cake. So if there are leftovers at the end of a paycheck, my dad make me feel better because he said as long as I have prioritized my paycheck and payed off the first 3 categories, then shop away! Well, don't go crazy, but enjoy the money you have left over and buy a new watch or three a pair of shoes! (Can you guess 2 things on my wish list right now?)

I feel so freed knowing that if I following that, then I'm set. Now the downer is that I've looked at my averages of spending in certain areas over the last few months and it looks like I should cut down a little bit on shopping and entertainment...