Finding the Holes

Have you ever felt like trying to get ahead in your finances is kind of like trying to blow up a balloon with a giant hole? The more energy, time, and air you pour into that balloon, the more frustrated you become because it just won’t get any bigger. And even worse, the second you take a break, it completely deflates and you have nothing to show for your efforts. It all just feels like a mystery because you never know where the air is going. And all of this frustration is simply because you have never taken the time to identify the holes.

Today we begin the adventure of finding out exactly where your money is going. To me, budgeting is all about being purposeful with your money so that you don’t just contine to throw all of your energy and money to the wind.

Your “hole finding” mission for today is to identify all of your bills. I want you to make a list of every place that your money is obligated to go. If you have already made your binder, or organized your filing, then this step is going to be easy for you. Your bills are going to be specific to your life, but here is a list of some general categories:

  • Mortgage/Rent
  • Savings
  • Giving
  • Insurance
  • Electricity
  • Gas
  • Water/Sewage
  • Telephone
  • Internet
  • Cable TV
  • Car payment
  • Car Insurance
  • Credit Card Payment
  • School loans

There are also other categories which have more flexibility, but actually tend to steal more air and I want you to make a list for these categories as well. Categories like:

  • Groceries
  • Gasoline
  • Entertainment
  • Baby Expenses (if you have one)
  • Clothing
  • Gifts

Try to be realistic and specific about what you spend your money on. If you go get your hair done every month then you need a hair category, etc… Try to be as specific as you can. This is where your money is going and it is imperative to identify every area. Don’t worry about all of the “holes” in your balloon right now. A lot of that is just life and what it costs to live, but as we go along in this budgeting process, you will realise that by not being purposeful with your money, you have allowed some of those holes to sabotage your dreams. This is just the beginning, so hang in there with me, because I am confident that this plan is going to finally get your balloon off of the ground.