I'm going through this weird transition at the moment. I'm trying to morph from spendthrift to scrooge, and it's a painful process. It's also a very necessary process. My business has done well, but I've dipped into the old business account far too often and haven't left enough to pay the government their share of my earnings. This has left me with a massive debt and the only way I can pay it off is to change the way I've been living and cut back my expenses. It's been nice having money (when my kids were little I was really really poor) and I've been a little irresponsible. It's taken a while to come to the realisation that I have to change my attitude towards money and become responsible. Oh hell, am I finally becoming a proper grown-up?
The first step was to meet with my accountants and establish the debt - how much was owed. Then I worked out a realistic budget for myself. I used a really great website to do this - www.sorted.org.nz. I loaded in the actual amounts I've been spending. It exceeded the amount I'm meant to be paying myself from the business by more than I'm going to divulge here. It's embrarrassing to see how much I was spending. Then I plugged in some realistic targets. The next step is to set up an electronic budget so I can track everything and see how much I can spend.
I thought this process was going to be scary and unpleasant, as well as difficult, but now I have my head around it, it's actually quite fun.
I now have three to five years ahead of me to get my financial situation back to a healthier situtation. Yikes!
6 comments:
well you have a start now. That's very good to be on a budget. And your business does well, so good for you to getting on track.
"Finally becoming a proper grown-up" has me laughing. I think that's why I have so many white hairs cropping up.
It is a bugger having Zambesi taste on a postie plus budget.
Hell just live on baked beans and still buy what you want.
We are still in the skint with kids mode and looking forward to the spending of much money mode, you give me hope.............but hopefully when I am at said spending money mode I shall remember what the next step is...
PG: White hair - one of the things that cost me money! Combatting old age is a costly process. I was amazed to work out what I was spending on skin and hair care. Blimey, it must be cheaper for blokes. And they don't have to buy tampons either.
DG: Been there honey. You've got a headstart though since you own your own home. Won't be long and you'll be out there earning again. You may be skint, but at least you're at home with your babies. I think that's incredibly admirable.
Oh, I forgot to say that I have only ever purchased Zambesi when they have sales on!
I know what you mean - the first time I did a proper budget, I was really freaked out about what I would find out - but once you get over that, its a damn good thing! Was very cool to see you Saturday, xxxxxxxx jo
Cheers Jo. Yeah, it's a freaky thing to contemplate, but once you're there it's not nearly as bad as you think. If you look at it as a bit of a "game" it's way easier. There's a few things I'm missing, like taking my kids out for dinner, but in time I'm sure we can get back to some treats...
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