All financial experts agree that budgeting should be a priority in everybody’s life. We don’t realize the full importance of budgeting in our daily lives until we face the consequences. This is not a fun thing to do and does take lots of time. People can make it more enjoyable though by utilizing their weekly day. Making a budget saves you from all this.
Here are 4 simple steps to planning your budget
1. What are your expenses?
This is a list of every expense you have in your life. These could be precise- it could be a receipt or a debit card statement. Those receipts or statements will give you a really good picture of what you spend each month. It may also surprise you what you spend your money on. Chances are your expenses could be more than your net paycheck.
2. How can you reduce expenses?
You could start with a pen and paper. Write down all the expenses you have monthly and then cross cell phone, internet, television, gas, car maintenance, utilities- whatever expense category you could assign to them. Then go back to your receipts and figure out how you can reduce or eliminate some of the items- for example, do you need to spend $7.00 a month on coffee? Then determine which expenses in that category you can do without or which ones you can give up. Any of these bills could save you some serious cash if you were to cut out the purchase altogether.
3. Where are you eating the most?
You want to eat healthily have more time and energy? You can lose both of these a start by eating at home more. Also if you buy lunch on your way to work, or at work, take your lunch. When you eat in, or order in, you spend more money.
4. Where is the hidden area?
This area of the plan is putting this stuff on paper and eye level. It makes it easy to see your financial life from above and in the Financial Times are tough, and most people are experiencing a tough financial time, with the price of everyday living rising faster than the income we bring in. Making and following a budget plan can help you to survive these tough times and thrive come out with a stronger financial situation.
Questions you need to find an answer
Why does it now? You’ll feel better, you’ll be able to change your outlook, and your cash flow sooner in the future.
Where are you right now to getting the Year in Review financial picture?
Where do you want your finances to be in 1 year or 5 years?
Maybe you want yourself to be able to get out of debt in 1 year.
Or maybe you want to have $500,000 in the bank in 5 years.
This is a self-evaluation that can be done right now to act now. All you have to do is pick up the phone and make that call!
Routines that can help you where you are right now:
- Make a list.
- Make a budget.
- Get your Debt Down.
- Where you want to be in 1 year.
- Where you want to be 5 years from now.
This is only a small portion of what should be done. You’ll be able to work through it from this point on. I challenge you to gain control of your finances.
Keep learning new ways to save time and energy. You are getting a stress free head start in your budget and overseeing your financial situation.
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