Living with Nerd Zest requires you to manage money.  It does not matter how much you make but it matters that you manage it correctly.

What do I mean by “correctly”?

Are you living paycheck to paycheck?

Do you spend more than you make?

Do you have a budget?

Do you have more than one income source?

If you know the answers to these questions then you at least know about your money situation, but are you managing it? To manage money “correctly” means that you have the right income to fund your lifestyle to become financially independent. This should be your life goal.

Have you ever thought of money this way? Why not? Do you think making too much money is a bad thing?  (If you answer yes to that last question, you have other issues that I cannot solve.)

Your goal as an individual is to be able to live independently, be financially secure, and be as productive as you can.  These are components of living with Nerd Zest.  Do not depend on anyone else for the life you want to live. You are the one living it. Take control over all aspects, starting with how you manage money.

Where to Start?

You have to face reality. Determining your income and spending is the first step. Do this by using my Nerd Zest Reality Sheet. Just make sure to print out a hard copy. This is important so you can write, make notes, hang on a wall, touch, and feel it. What this sheet will show you is your income vs spending.  This is the starting point for being able to manage money “correctly”.

Do you have one printed out?  Good, let’s begin.

First, list your income sources. These can be your job or regular side income. Anything you do to bring in a regular income, list it here. If you are fortunate to have investment income, lucky you, but that is not needed at this point. Investing is a whole other topic for later.

Next, is the painful part. List where you spend all your money. This is usually the eye opener for most people because it forces you to see where all your cash goes. If your bank has online banking, this will be easy. Every major bank has an online budgeting tool that is linked to your accounts. If you are not using a tool like this, start now.

Your spending should be categorized into 2 major categories, essential (housing, food, clothing, basics) and non-essential (frivolous spending that does not require you to sustain life). Breaking these down will be difficult, but you need to understand where your money is going and weather you need to stop buying some stuff. This also forces you to think about what is essential and what is not.

Once you have your income and spending listed, calculate your bottom line.  This is what’s left when you subtract your spending from your income. What was the number? Did you have money left over or did you spend everything and then some? If you are like most people these days, you would have spent everything and then some. Face this reality for what it is. Your income does not support your lifestyle.

There are really only 3 outcomes;

1. You make more than you spend
2. You make as much as you spend
3. You make less than you spend

So now what?

If you landed in 1 or 2, you are better off than 3. In each category there will be work to do. Knowing which category you are in is the starting point. From here, you can start to manage your money “correctly”.

Start making changes to your budget that will get you to where you want. Nobody will be able to make these decisions for you. You will have to do the work to manage your budget to reduce spending or increase income. It’s that simple. There are many many many websites and tools out there for budgeting. Pick a method, strategy, tool, and stick with it.  The goal is to SPEND LESS THAN YOU MAKE!!!

That is where the Nerd Zest Dream Sheet comes in. Looking at your current situation will give you the starting point for making changes. These changes can be major or minor but they will all be focused on one thing, SPEND LESS THAN YOU MAKE!!!

Sounds easy when you put it that way doesn’t it? But it really is that simple. Adopt this strategy and use it when managing your money. You will be much better off in the long run.

Use the dream sheet as a roadmap for how you want your future to look. If you want to make more money, put down how much you want to make.  If you want to spend less in one category, put down how much you should spend and then don’t spend over that amount. Work at it, every month, every year, for the rest of your life.

The dream sheet will force you to make decisions based on your goals for each category. If you want to make more money, you have to look at how you make money now and decide how to make more. Do you regularly receive raises in your current position? Will that position get you to where you want to go? If not, then you need to make some changes. Find a new job, new industry, or new line of work. You are only limited by your decision making. Make better decisions and you will be on your way to living with Nerd Zest.

Don’t wait to start this step. The world will not wait for you. Things will get more expensive, time will be lost, and you will die. Get with it. Make the commitment today to start managing your money.