I Just Got Paid...Why Am I Broke?
by ItsJer

Budgeting can be a bit of a “B” word. Bothersome, that is. Which is why we have created a list of good practices to help you overcome bothersome budgeting.

Whether you’re learning the ropes of handling money, or have fallen off the horse and need to grab the reins on your money situation, AMOCO is here to help. Kiss the days of getting a paycheck and spending it all on rent because you waited until the absolute last minute goodbye. Here are four tips to get you on track:

Positive Mentality

The first step before you encounter any obstacle or adventure is to have a positive mentality. Many people think budgeting inhibits a person’s spending habits, when in reality it’s a practical approach on how to spend realistically. Positive thoughts breed positive results, it’s the basic law of attraction.

Need Versus Want

Speaking of basics, let’s get back to them. A sure way to find out what you essentially need versus what you want just to make your friends jealous, is to get off social media – just kidding, that will never happen. OK seriously though, one sure way is to make a two-column list. Label one side “What I need to Survive” and the other “What I Wish I had to Make My Friends Jealous.” Establishing a division will help you see the importance of where your money should go.

Habits

Habits, this might be the most important tip of them all. You have to establish positive financial habits to overcome bothersome budgeting. To start, you have to face another “B” word; Bills. Add up all your monthly bills together. Bills should include: rent, auto loans, student loans, etc. Divide the total amount you owe in bills in half and put that portion of your paycheck into safe keeping, a savings account perhaps? The left over money is yours to spend, but why not save it for a rainy day? When the time comes to pay your bills, you will have enough to kiss the “B” word goodbye until next month. Continue this ritual monthly so you can pay for your essential needs and not stress about money, yay! Winning!

Be proactive

Remember when I said to put that money into a savings account? For this whole process to work you must be proactive. Establish a savings account strictly for bills. Do not touch this account until it is time to pay your bills. Wouldn’t it be nice to have a financial institution that allows you to open up as many savings accounts as you like and make as many transfers between accounts as you like? I don’t know of any banks that would do this without fees, but I do know of one credit union.

All that said, budgeting doesn’t have to be your enemy. Practicing smart financial habits now will help you become the money wizard you were born to be.