Purposeful Spending

I came across a post today on money - or more accurately, saving money.  It's a quick read but I love the philosophy.  Check it out here.

While you're over there, browse around the YHL blog a bit.  It's my new favorite!

But back to the money topic.  When talking about budgeting and saving money, I have a term I like to use.  It's "purposeful spending".  It's so easy to get to the end of the month and look back, wondering where all your money went.  People always hear the word "budget" and cringe, thinking that by going on a budget they will have to stop spending money on all the things they love.  The truth is, being on a budget allows you to decide ahead of time where your money is going to go, and allows you to save for the things that matter most to you.   Purposeful spending!

Quick tip:  sit down with a spreadsheet and a calendar at the beginning of the month.  Figure out what you want to do that month (ie dates, vacations, hair appointments, etc) and list everything on the spreadsheet.  Also list all your regular bills, plus important things like groceries and gas and medical.  Then at the top list your monthly income, and start allocating money to each of your categories.  You will have to play with it a little to get everything where you want it.  And some months you might have to go lighter in one area in order to beef up another area (that's why you have your calendar as a guide).  By doing this simple step each month, you will take over control of where your money goes.  And you will love the freedom it gives you!