Fiology Lesson 7

LESSON 7 : WHERE DOES MY MONEY GO?

The first step in developing a budget is tracking your spending.  But then what?  We then need to accept where our money was going and reroute it to where we know it will make a positive difference.  Everyone on the path to Financial Independence tracks their spending one way or another, at least for some period of time.  Some adhere to a strict budget and some base their spending strictly on values, limiting wastefulness.  Spending should be intentional.  We should not only know how we’ve spent our money, we should know where our future dollars will go.  These resources will provide a working knowledge of budgets and some real life practical lessons to make the transition from not using a budget to adhering to one a rewarding experience.   

Read:  4 Surprising Advantages to Budgeting  by Paula Pant of thebalance.com

Read:  These 5 Budgeting Myths are Total BS. So Stop Using Them as Excuses  by Tom Gordon of thepennyhoarder.com

Read:  3 Reasons You Should Stop Budgeting By The Month  by Nick True of mappedoutmoney.com

Watch:  How to Hold a Budget Meeting  by FrugalChicLife on YouTube

Interact:

Skim:  15 Best Budget Apps for 2018  by Josh Smith of gottabemobile.com.  Select one or two (or three) that you think might keep you motivated for a few months of budget familiarity.  

Reflect:  Once a week during your first two months of active budgeting, record your thoughts, feelings, surprises, challenges, etc. with regards to your spending.  It won’t all be roses but you will likely find that with time it becomes habit and increasingly empowering.  Sending an e-mail to yourself with an easy to recall subject line like “Johnny’s Budget Experiment Week 2” will prove useful in the future as you reflect on your progress towards Financial Independence.

Additional Resources:

Read:  Learn Where All Your Money Goes and Fix Budget Leaks  by Paula Pant of thebalance.com

Quote:  A budget is telling your money where to go instead of wondering where it went.” – John C. Maxwell

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