How to create a Financial Budget

This time we are going to get into is a financial budget legit or not? Many think Budgets are one of those “PIA” things that you do not want to mess with. But I can assure you that if want to be even remotely successful in the area of finances they are a must. In fact, when my wife and I got marries 25 years ago, a working budget is one of the first things that we created. 10-10-80 became our mantra.

Financial Budget 10-10-80 Rule

What is 10-10-80 you ask? It looks something like this. 10% to charity goes to charity or in our case the church we go to. !0% goes to savings. And the rest goes to our every day living expenses like food, grocery. rent/mortgage, utilities and other necessities. Pretty simple, Right? What we did not realize at first is that the two 10% pieces needed to be take care of first. We would find that we would overspend the 80% and nothing would be left for savings and charity. That led us to our big AH HA moment.

The Big Ah Ha for Financial Budgets

If yo don’t first give you money to charity and saving it will never happen. It takes some discipline to do, but rest assured you can make it happen. So in phase 2, the first check we wrote every month went to church and the second to savings. We are so glad we did that, because we noticed that living on 80% is nothing, but a thing. As such we built up a savings account over time, and were able to support the charity of our choice. I call that have your cake and eat it too!

Financial Budget or Flexible Spending Plan

Twenty five years later we still have the 10-10-80 plane as the big concept. Fortunately, we have never had to look back. Now we use something that you might like to call The Flexible Spending Plan. We will get into the nitty gritty of that next time.

By the way if you are looking to put some extra into your spending plans. Check this E-book out.

Please read my previous Crypto Blogs on Litecoin, Bitcoin, Ethereum & Stellar Lumen