budgeting in action

Budgeting in action: open three instant savings accounts and name them after your goals

Now that you have a brand spanking new budget what better than to organize your savings by opening three new instant savings accounts to celebrate? This will allow you to keep track of how much you have saved up for each goal and means that you won’t ever get the purpose of which monies are for which goals confused and thereby leaving you short changed for completing a goal.

 

I personally have five savings accounts and they are named:

 

  1. Car Savings (for my insurance, MOT, services and maintenance)
  2. Peter Trip (money to see my boyfriend as we live long distance)
  3. America
  4. South Africa
  5. Website (stay tuned – they’ll be a big redesign next year!)

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Budgeting in action: Finish your life goals budget

Please download Accessible Psychology’s ‘Financial Budgeting Spreadsheet’ below, to take part in today’s exercise:

 

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Life Goals Budget, Part Two
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Budgeting in action: do the ‘Monthly Savings Budget – Five Year Plan’

Please download Accessible Psychology’s ‘Financial Budgeting Spreadsheet’ below, to take part in today’s exercise:

 

Download “Finance-Budgeting-Spreadsheet.xlsb” Finance-Budgeting-Spreadsheet.xlsb – Downloaded 123 times – 17 KB

 

Monthly Savings Budget – Five Year Plan

 

Now you have how much each of your three goals will cost in terms of money you can incorporate this information into your ‘Monthly Savings Budget – Five Year Plan’.

 

First of all, check that the amount you find in the ‘Total Monthly Savings’ column matches the amount in the Monthly Expenses and Savings Sheet – specifically the ‘Budgeted’ ‘Total Monthly Savings’ cell. If it does you can skip the technical bit!

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Budgeting in action: research and create a ‘Life Goals Budget’

Please download Accessible Psychology’s ‘Financial Budgeting Spreadsheet’ below, to take part in today’s exercise:

 

Download “Finance-Budgeting-Spreadsheet.xlsb” Finance-Budgeting-Spreadsheet.xlsb – Downloaded 123 times – 17 KB

 

Life Goals Budget, Part One

 

Now for the super fun part! Research your top three life goals and how much they will realistically cost. Then enter in the amount you will need to save, entering in when you will start saving.

 

Remember to pay off all debt before saving (this is a goal in itself) and to save for things like six months worth of living expenses, pensions and insurances as well as your life goals.

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Budgeting in action: read ‘How to Turn Your Dreams into Reality’ and create three life goals

One of the biggest contributors to long-term happiness is feeling a sense of progress in life and having goals is by far the best way to achieve the happiness that so many of us desire. What do you love to do? What have you never done but would like to try? What do you dream about being possible for you?

 

Once you have your three goals we can then go about budgeting for them to make achieving them even more obtainable – a critical step that many goal setters skip!

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Budgeting in action: create a revised and realistic monthly budget

Please download Accessible Psychology’s ‘Financial Budgeting Spreadsheet’ below, to take part in today’s exercise:

 

Download “Finance-Budgeting-Spreadsheet.xlsb” Finance-Budgeting-Spreadsheet.xlsb – Downloaded 123 times – 17 KB

 

Monthly Expenses and Savings Sheet (Budgeted Column)

 

Last week we entered in our current expenses in the ‘Actual’ column, this week we’ll fill out the ‘Budgeted’ column.

 

When creating a budget it is vital to do your research into how much things realistically cost but also honestly assess what you can cut back on. Do you need to buy lunch? Could you make a sandwich and take that to work instead? Do you need to spend as much on entertainment? Could you perhaps drink before going out and then just top up when on nights out in bars? Would buying a monthly pass for travel be less expensive than paying daily travel costs?

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Budgeting in action: List your current spending on the ‘Monthly Expenses and Savings’ sheet

Over the coming weeks I will talk you through how to fill out the spreadsheet so that you have a detailed and all-inclusive budget which will enable you to achieve all of your life goals and obtain a greater level of financial security than ever before. If your budget changes in any way the formulas have been designed to account for this and do all the working out for you.

 

Firstly you will need to download the spreadsheet by clicking on the button below…

 

Download “Finance-Budgeting-Spreadsheet.xlsb” Finance-Budgeting-Spreadsheet.xlsb – Downloaded 123 times – 17 KB

 

Remember, the aim of this series is not merely to budget, but to budget in such a way that it allows us to achieve our life goals, so, even though you might dread listing your current expenses – it will be worth it, I promise.

 

Monthly Expenses and Savings Sheet

 

As you can see the first tab relates to monthly expenses and savings and is designed so that all potential expenses are accounted for. First of all enter in your monthly salary after tax in cell 3C.

 

Feel free to add or change expense categories to tailor this sheet to your unique expenditure.

 

However if you do add rows for more expense categories remember to enter in the following formula as listed in ‘The Technical Bit’ so that it adds things up correctly:

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Budgeting in action: list how in control of your goals you feel

To me budgeting is just another way to empower ourselves towards a secure future and the fulfillment of our life goals. So how in control of your goals – financial or otherwise – do you feel?

 

To help you answer this question, rate the following five statements, scoring yourself between 1-10, with 1 being completely true and 10 being completely false.

 

  1. I have not officially written down my financial and life goals
  2. I have not considered or researched how much my goals will cost to fulfill
  3. I have not broken down my goals into manageable and tangible steps
  4. I have not created deadlines for either my goals or there interim steps
  5. I have not allocated time towards working upon my goals on a daily or weekly basis

 

If you score more less than 25 you have little control over your goals and can greatly benefit from closely following this series and doing the practical exercises – as well as reading my article on goals titled ‘How to Turn Your Dreams into Reality’.

 

If you score more than 25 you have moderate control of your goals but you will gain a greater level of mastery by following this series – as well as reading my article on goals titled ‘How to Turn Your Dreams into Reality’.

 

If you score 35 or more you have a good level of control over your goals, though to acquire complete goal mastery you could fill out the exercises for the downloadable spreadsheet and read the posts – as well as reading my article on goals titled ‘How to Turn Your Dreams into Reality’.

 

Remember working towards financial freedom means turning your dreams into reality – what could be more worthwhile than that?

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Budgeting In Action: list how in control of your finances you feel

For many this question can evoke all sorts of fears. Fear of failure, fear of scarcity and worst of all, fear of financial insecurity. Whilst it is natural to avoid asking this question this can be very dangerous. Like all fears, the only way of overcoming it is to face it. What you resist, persists (and often tends to get worse).

 

On the flip side there are plenty of benefits to answering this question because without knowing your financial reality you are helpless to change it for the better.

 

To help you answer how in control of your finances you feel, rate the following five statements, scoring yourself between 1-10, with 1 being completely true and 10 being completely false.

 

  1. You frequently spend your entire monthly salary
  2. You never know what all your money has gone on
  3. You do not know nor have planned for how much your life goals will cost to achieve
  4. You have no emergency savings fund (typically six months living expenses)
  5. You do not have a pension, life insurance or illness at work cover

 

If you score more less than 25 you have little control over your finances and can greatly benefit from closely following this series and doing the practical exercises.

 

If you score more than 25 you have moderate control of your finances but you will gain a greater level of mastery by following this series.

 

If you score 35 or more you have a good level of control over your finances, though to acquire complete financial mastery you could fill out the exercises for the downloadable spreadsheet and read the posts.

 

Remember no matter what your score you should pat yourself on the back for a job well done – after all you have taken the first step towards financial mastery! Remember there is always a way to gain back control over your finances so do not despair, in the coming weeks there will be practical exercises to help you get back on track and become masterful in having your money work for you.

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