Steps to Set a Budget

Implementing a new budget takes more than an hour
 
It takes about 3 months
 
Here's how 👇
 
Step 1:
 
Begin with the end in mind
 
Reflect on your values as a family. Let those then define your goals:
 
- Spiritually
- Personally
- Professionally
- Financially
 
Let the first three inform the 4th not the other way around
 
Step 2:
 
Track what you’re already doing
 
-       Pull up the last 3 months of spending
-       Notice the trends in 4 categories
o  Fixed
o  Charitable giving
o  Saving
o  Discretionary
-       Highlight unnecessary expenses
 
Step 3:
 
See how you can do better and be more aligned with your values
 
-       Reverse engineer your goals to identify necessary saving
-       Ensure risks to those goals are protected
-       Compare values to spending and see where you are unaligned
 
Step 4:
 
-       Cutout spending that doesn’t align
-       Cancel unnecessary subscriptions/ look for deals etc
-       Define 4 categories again now realigned to values
-       Realign
 
Step 5:
 
Schedule a weekly budget check in with your spouse
 
-       Look at expense that week
-       Upcoming expenses
-       And track towards the monthly budget goal
 
Does it look like you’re ahead? Great go celebrate with a date.
 
Are you behind?
 
Find ways to cut back in the coming weeks or delay purchases for next month.
 
This process will most likely take several months before you are in a rhythm and have it down pat.
 
Make sure you have the right insurance in place beforehand, leave a little buffer, and automate your savings from the start!
 
Otherwise, we’ll always have a reason to delay and never make progress.
 
You got this!

Thanks to my colleague, Financial Planner Jack Ziegler, III, for this article.