My thanks to the Woronicak family. It was a pleasure working with you!

Catch this very special episode Saturday at 5:30pm and Monday and Thursday nights at 7 and 7:30pm
Check out LiveWell’s site for local listings (left side of the homepage where it says sign up stay informed). Here is a link: http://livewellnetwork.com/index  Thank you for watching and supporting my efforts to help all of us get better control over the money part of our lives!

Thank you Tammy and Ed!

Creating a budget can be done on a piece of paper with a pencil and grade school addition and subtraction made even easier with a calculator. And as far as being restrictive, I see it differently; budgets empower you to live the life you want by forcing you to prioritize.

I created a budget for the Lafferty family, who we featured on my new show “We Owe What?” and showed them that a budget allows them to but their priorities- their kids- first.

The basic function of a budget is to help you manage the money you have. First you take stock on what is coming in, and then you divvy it up (hopefully with a little left over). Put the things that matter the most to you first- the stuff you don’t want to give up.

Often we put the fun stuff at the end of a budget – I say of something is truly important to you put it first. You can add the necessities next and then everything else. I have included the Lafferty budget below so you can get an idea of how to create one for yourself.

Put your estimate in month exp and the actual amount in once you know it. The difference is the amount over or under your estimate.  It will help you make a better estimate next time!

Here is how you can find me on those sites
twitter/marytalksmoney

https://twitter.com/#!/marytalksmoney

facebook/Mary Caraccioli

https://www.facebook.com/pages/Mary-Caraccioli/287501997607

facebook/We Owe What

https://www.facebook.com/WeOweWhat

YouTube

http://www.youtube.com/user/MaryandMoney

Many businesses have 5 – 10  or 15 year plans. But very few individuals or families do these types of plans for themselves.  I want to change that! I think they are so useful in so many ways. I have broken these benefits down to the 4 P’s.

1) Prioritize
2) Plan
3) Pay
4) Picture

Start with the 5-year plan. You make a list of all the things you expect will happen in the next 5 years, births, birthdays, vacations, graduations, career changes, raises, pay cuts, reunions, new cars, appliances, house maintenance, etc.  Next, write down your current expenses.

Now all you have to do is plug in the years (see the document below to see how I did this for the Carolus family).

Writing down and then agreeing on what your family will fund for the next 5 years allows your family to prioritize.  What matters to each of you? When I met with the Carolus family for my new show “We Owe What?” there was some debate between Tami and Ed as to where they wanted to put their money. This type of debate is great and so important. It is key here to listen to everyone invited to the discussion. When I say listen, I mean really listen- don’t just assume you know what they are going to say and shut down. Insist that you are granted the same courtesy.

Get the kids involved too! Tami and Ed were surprised to learn that their daughter Beth put volleyball over racecar driving. What you will get from the discussion is buy-in from the whole family. Everyone knows how and why decisions were made.

This allows you to plan. Will you need extra funds in 3 years to pay for that new roof? Do you want to retire earlier? Seeing exactly where you are financially the year you want to act on something is fabulous. You will see “yes I can afford it” or “I need to work a side job to make that happen” – either way you are empowered and determining your own destiny!

The plan allows you to see how you will pay for things. Do you have enough in savings, or should you cut something else out so you will have enough? Is this something you want to buy on credit- then how much of a burden will that add to the years ahead? You will see it all!

Finally, this is a place for you to dream to picture the type of future you want and then come up with the best plan to pay for it. I encourage families to picture their future – it makes the work we do today easier because we are reminded of why we are working so hard!

( viewing tip- there are a few seconds of black in between each promo. )

Thank you Karen, Adam, Don and Marilyn!