One of the Best Ways to Manage Money …
Low/Medium/High Budgeting

I learned one of the best ways to manage money from author Chellie Campbell. In her book, “From Zero to Zillionaire”, she describes a three level budget system: Low, Medium and High.

This is unusual in personal finance and money management in that she recommends making three separate budgets.

While compared to other ways to manage money, this may seem like a bit more work, but it stretches your imagination and helps you only achieve your goals. In addition, it prepares you for difficult financial times and gives you the confidence that you can weather them successfully.

This system will also make you more successful at “owning” and living with your regular (the medium) budget.

Your Medium Budget:

The medium budget is the one that you make first and that you usually use.

It is your normal month-to-month budget.

For ways to manually construct a regular budget, click here.

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Your Low Budget:

The low budget is one of the best ways to manage money during tough times.

Life will always throw you an occasional curve ball. No one is immune from troubles in this life.

Prepare the low budget for use in case of financial setback.

Carefully look at every item that in the medium budget and ask if it can be eliminated or reduced for one month.

Have the mindset that the low budget is something you could actually live on for one month.

It is looking in a given item and saying, “I can’t afford this is just that at this moment. There are other things that I need more. It's just that that item is not my budget priority right now”.

This will do three things for you:

• It will give you confidence that you can adapt in a difficult situation.
• It will make the medium budget with really good
• It will help break you of the spending habit

Your High Budget:

The high budget is for when “your ship comes in” - when you have an increase of income (see ways to increase your income).

This will help you dream big and pursue your goals. It does not have to include things like buying boats or new toys; it may have items like being able giving a lot of money to your favorite charity.

Make yourself a dream board. A dream board is a collection of pictures to remind you of things you want to do with your money wouldn't have much more. It may be a picture of an AIDS orphan you want to support, a home in a different school district, or the college would like to send your child.

One of my mentors is a section of his living room wall as his dream board. The family can see it from the kitchen and their dining area.

Keep the dream board in place for you will see it all the time. This will inspire you to pursue your dreams and goals and have that high budget someday.

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