Budgeting is more than just managing your money, it
is changing the way you think about money, and the
beginning of building wealth for the rest of your life.
Starting is the hardest part, because there is a certain
amount of discipline needed to be successful.
However in this system, I have spent years figuring
out how to make this as painless as possible. With
the ability today to automate almost your entire
budget, it has never been easier.
The hardest part of creating a successful budget is
changing the way you think about money. I am sure
you have heard the phrase "pay yourself first". It is
one of the most difficult lessons to learn, but also the
most important. Your savings account needs to be
hard wired into your budget. You have to think of it as
a bill, and also think of it as the most important bill
you have to pay every single month.
To get the best idea of how this system works I
recommend that you go to the spreadsheet and try
putting in some numbers. This spreadsheet instantly
breaks down the numbers and tells you how to split
up your money using direct deposit. If you don't have
direct deposit the same thing can be accomplished by
using automatic transfers from Capital One 360. Go to
the budget tools page to use the spreadsheet and
other budget calculators.
In this system your bill money is completely
separated from your spend money and savings. At
first it will be hard to save, but as you adjust to the
budget you will be able to ignore your savings and
get better with living within you means. Having an
account just for spend money gives you a clear veiw
of what is important, and that is how much money
you can freely spend. You can spend all of the money
in this account between pay checks, and it will not
take money away from your bills or savings.
What makes this system so easy is the spreadsheet
that does all of the figuring. Make sure that once you
complete the sheet that you print it out. The sheet
will reset as soon as you leave the page.
After setting up this system, you will always know
what bills are coming ahead of time. You will be able
to balance your check book with ease before paying
your bills, and you will not have to worry about
envelopes and stamps any longer. You should never
spend more than 10 minutes twice a month doing
your bills. That's 20 minutes a month to do your
If you would like a more detailed description, and
some advice for setting up your budget, go to my