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Tuesday, 17 April 2012
How To Create a Budget
Budget isn’t created to make life miserable. It is simply a guide to help us to manage money. We all have income, and we all have expenses, and without proper allocation of the money something may fall short. The goal when creating a budget is to lay the foundation for allocating what portion of income is required to cover each expenses.Here are few tips on budgeting: 1. Gather every financial statement you can. Note: This includes bank statements, investment accounts, recent utility bills and any information regarding a source of income or expenses. 2. Record all of your sources of income 3. Create a list of monthly expense Note: Write down a list of all the expected expenses plan on incurring over the course of a month. 4. Break expenses into two categories: fixed and variable 5. Total your monthly income and monthly expenses 6. Make adjustments to expenses 7. Review your budget monthly Note: It is important to review our budget on a regular basis to make sure we are staying on track. After the first month take a minute to sit down and compare the actual expenses versus what you had created in the budget. |
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