2 Min. Vid: How to Create a Simple, Effective Budget
- Many people tend to avoid the b-word, budget.
- But a budget is just a plan that gives you control over your finances by tracking what comes in and what goes out.
- It's that simple and it doesn't need to be fancy.
- It could be just two columns titled income and expenses.
- Start by tracking all your expenses, including essential costs like rent, groceries, and medicine. As well as non-essential expenses like cable TV, entertainment, and travel.
- Next, add up all your income such as your salary or paycheck after taxes and any other income, including child support, investment, or rental income.
- Then, subtract your expenses from your income. A break-even or negative number means it's time to take a closer look at cutting non-essentials or trimming where you can.
- With a clear picture of your income and expenses, you can adjust your spending to begin saving for important financial goals like:
- An emergency fund,
- College,
- or Retirement
- Review your budget every few months and adjust accordingly.
- Your budget should be flexible enough to change with your needs.
To learn more about saving for your financial goals, give us a call or send us an email.