Not to pick on these universities though; most schools don’t teach students how to create a budget.
So to help with this lack of training, your third assignment is to outline your budget.
If you can make having a budget part of your life, you’ll know that you’ve passed this assignment successfully!
Cutting out an expense or changing a habit is easier if you replace it with something else.
When you need to buy something, you’re only allowed to use cash.
After 2 weeks, if you’ve managed to do it, give yourself a passing grade.
Did you only buy things you needed, or was there also enough money to buy something that you wanted? Some studies have found that people spend as much as 15% more per purchase when they use plastic instead of cash.
Spending more on every purchase adds up over the years, and if you want debt solutions that last for life, be aware of how you spend your money. Every pay day there’s money in our bank account, but it never seems to last long enough.
If you’ve never created a household budget that works, here is a personal budget workbook to get you started or you can try out this interactive budgeting resource that guides you through the whole process.
A budget based on real numbers sets you up for success, so use what you learned when you tracked your spending.