Most of us think we're doing well if we somehow pull together a written budget for the year. But even if we manage to do so, what are the odds of sticking to it month after month?
Financial adviser Dave Ramsey says we should set up a new budget every month.
Yes, every 30 days!
There's the huge fuel delivery bill that makes your eyes bulge. Back to school expenses that go far beyond a spiral notebook and a pack of pencils. Sky high insurance bills that demand attention. Vacation and holiday expenses that morph out of control.
And then there's those wrenching health crises that come from seemingly out of nowhere. The unexpected demise of can't-live-without-them vehicles and appliances. Special occasions that beg for some sort of acknowledgement. And endless random life events that always seem to come with a price tag.
Each month brings completely different financial challenges.
The most profitable way to navigate our own personal financial maze goes far beyond looking at the growing stack of bills with horror, fear, disgust, or denial. What would it look like to pro-actively check what's coming up on our calendars, know how much income is likely to come in, and choose where we want to allocate those limited funds?
Before the month begins.
'There is no one budget that is perfect all the time every time,' Dave says. And here's his monthly solution.