Create a Budget with Dave Ramsey’s Every Dollar
The borrower is slave to the lender, and if you’d like to become free of consumer debt then you’ll have to attack that debt. But disdain for your debt is only part of the equation of getting on track financially, a budget which shows where “every dollar” goes is the foundational behavior. Here is how to do it.
Write down your total income.
Figure out what your monthly, after tax income is for you and your spouse. Don’t separate any funds yet – include absolutely everything so you can really take control of your finances and build momentum.
List all your expenses.
Monthly bills, quarterly bills, and other total costs should be added together. Food, mortgage, gas for cars, utilities, insurance, cell phones, etc.
Subtract your expenses from income to equal zero.
Zero based budgeting is all about getting it so your income minus your expenses equals zero. Work at it until you get it to zero by getting honest about your money.
Track your expenses throughout the month.
Once you’ve started living on a budget, you need to work at staying on top of your expenses. We highly recommend Dave Ramsey’s EveryDollar.com to track your expenses and even building your budget.
Resources to Help!
Download Dave Ramsey’s Budgeting Forms:
“Dave Ramsey’s EveryDollar.com Tool”
Stuff You’ll Love
- Add and split transactions in a jiffy.
- Personalize your budget to meet your needs.
- Drag and drop transactions into your budget.
- Track progress through Dave’s Baby Steps.
- Create funds for personal saving
Remember, when you create a budget you are able to not only control your spending, but you’re also empowered to build financial momentum.
Entrepreneurs can benefit drastically from creating a budget because they can start to understand where they can invest their margins. Be able to pour additional investment into your business is much easier when you’ve also built a detailed picture of how your financial operations at home work.
Building a budget can help you do a number of things such as:
- Payoff Debt
- Build Up Cash Reserves
- Invest in the Markets
- Payoff Your Home Early
- Invest Into a Business
- Save for College and Even
- Invest Into Real Estate
- Build a Retirement Plan
Before you try and do any financial maneuvering, investing, or fanciness – build a budget! This is the most common sense step to getting yourself setup for success.
To get started with Every Dollar, click here.
Budgeting will help your family have the peace of mind that things are taken care.