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Because budgeting tells your money. where to go instead of you wondering where it went. it shows your money whou2019s in charge. budgeting is how you make any money goals happen- itu2019s how you progress with your finance. it puts you in control. it gives you permission to spend your money your way. we could go on and on and on because we honestly believe making a budget and living that budgeting life is one of the most important decisions youu2019ll make with your finances.
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Create a budget in nine steps Create a budget, you have to start by creating a picture in the mind your 몭nancial condition. it helps to have a list of the bills that you must pay each month, as well as your pay and either bank records or receipts from the past three months will include.
Step.1- - Determine your income- e- Being by listing your monthly income, this should include any paychecks you receive as well as income from other sources such as. Government bene몭ts Child support Social security Investment If you do a business, you should include the amount you pay yourself every month place than the business total income. if you do not get paid monthly, look at much income you had last year and divide it by 12 to determine your likely monthly income this year. Step.2- - Fixed expenses- - These are expenses that stay the equal every month, such as- mortgage or rant payments, loan payments and insurance premiums. Step.3- - Variable expenses- - These are expenses, that can change from month to month, such as
Utilities Groceries Transportation cost. Step.4- - Discretionary Expenses- - These are non-essential expenses that contribute to your lifestyle and enjoyment such as dining out, entertainment and hobbies. Step.5- - Savings and debt repayment- - Allocate a portion of your income towards building an emergency fund, savings, for speci몭c goals and paying of debt. Step.6- - Look for places to cut expenses- - If you have more expenses than income you will need to 몭nd ways to cut back on your expenses, start by lowering the spending limits in the discretionary section of your budget or eliminating them entirely next look for ways you can reduce your 몭xed expenses and variable expenses. Step.7- - Track your progress- - When you have a budget don’t make it and forget about it you should set yourself realistically achievable short term goals to help you say focused on your budget whether that’s to clear a certian debt cut your spending target. keep tracking and reviewing your progress to make sure you are sticking to your budget goals, adjusting them or setting new ones when needed. Step.8- - Automate your bills and savings- - Where possible set up standing strictions or direct debit to automatically pay your bills,
Where possible set up standing strictions or direct debit to automatically pay your bills, credit cards and any other reguler payments, this will make it easier to send payments on time, which means you can than focus on keeping the rest of your spending on budget. If you are in a position to do so it is also worth setting up a standing striction to automatic send money into your savings accounts when you get paid, in other words. you pay your future self-몭rst, tis make building up your savings a priority rather than on after through and ensures that the money intended for savings actually gets there instead of it going on a shopping spree instead if it going on a shopping spree, on to supplement other areas of your budget where you may have overspend. Step.9- - Revisit an review your budget when needed- - There will inevitably need to be some 몭exibility with your budget as your income, expenses, commitments and prioriteis change over time. the key here is to make sure you always have a budget. you shouldn’t use a change in circumstances as an excuse to scrap your existing budget. but rather as a time to review. it and amend it accordingly to account for these new developments. Why making a budget is so important? Because budgeting tells your money. where to go instead of you wondering where it went. it shows your money who’s in charge. budgeting is how you make any money goals happen- it’s how you progress with your 몭nance. it puts you in control. it gives you permission to spend your money your way. we could go on and on and on because we honestly believe making a budget and living that budgeting life is one of the most important decisions you’ll make with your 몭nances. Invest your life freedom of your 몭nancial life Home Personal Finance Investment About Us Contact US Privacy Policy
