I think that a budget is desinged for all of us to make. The “rich”, the broke. You, me. 

I think it’s crazy when “the rich” think they make too much money to need a budget.  The truth though, is that most people arent as rich as they think they are, and they, probably more than anyone, need to make a budget. Americans in general are terrible savers. We appear to be great spenders though. We work hard, we get paid, and then all of a sudden we wonder when our next paycheck will arrive because we cant afford to put anymore on our credit cards.

I bet you’d have more money than you’d think at the end of the month just by putting yourself on a budget. That’s why I’m writing this blog.  Even if you can squeeze out an extra 5 bucks a day, that’d help you tremendously. I’m serious. Every bit helps and counts. $5 bucks each day can be powerful, and can really do some sweet damage to a retirement account. Only if you stay consistent though.   

Check these numbers out

$5 per day over one week= about $150/month

If you invested that $150/month and earned 10% annual return, you’d wind up with:

1 year=$1885

2 years=$3967

5 years=$11,616

10 years=$30,727

15 years=$62,171

30 years=$339,073

40 years=$948,611

That’s just with 5 bucks a day!  Let’s check out $10/day (300/month)!

1 year=$3770

2 years=$7934

5 years=$23231

10 years=$61,453

15 years=$124,341

30 years=$678,146

40 years=$1,897,224

And just for fun, $20/day or $600/month:

1 year=$1885

2 years=$3967

5 years=$46,462

10 years=$122,907

15 years=$248,682

30 years=$1,356,293

40 years=$3,794,448

 

One thing I’d like to add. If you think that $50 is a lot of money and you struggle to save that each month then try thinking about how tough it’s going to be to come up with $250 extra per month for retirement. Or $400 per month, depending on how long you wait. The amount you have to set aside each month only gets higher as time goes by. The risk gets higher too. 

 

Anyway, we’re here to get this budget in place so you can start maximizing your ROI on your HARD EARNED CASH.   

 

When you dont save each month, you are not setting yourself up for a stress free future. Save today for tomorrow. You know the saying. It’s true though. You want to be able to provide for a family I’m sure. So start today while it’s easy.

***Budgets that do not allow $$ for entertainment are doomed to fail. Life isnt over. You just are going to become more aware, and going to learn how to work smarter, not harder. Maybe instead of 

Track your spending for a month.  Record everything (even penny candy). Once you know where all of your money goes, you can best decide how to allocate your money.

Put savings on autopilot. I mean PAY YOURSELF FIRST. Have money automatically withdrawn to go to your account.

Prioritize Spending

Tackle credit card debt (more to come on how all of that works)

Build an emergency savings account. Some say 3 months. I think that’s crazy. I want you to be as stress free as possible, and I would like to see you have AT LEAST 6 months, if not MORE. I like to have at least a year. Think about too that if you have high insurance deductibles, where would you get the money to pay for an unforseen accident?

Learn to live within your means. If you MUST have coffee each morning, why do you have to make it Starbucks. Make it at home! Become aware of your latte factor. I can teach you how to do it since I’ve learned how to drastically simplify my life, and learned to just love it!