Creating a Monthly Budget Plan

Kimberly Watson, Editor in Chief
March 07, 2012 /

Mention the word “Budget” to most average consumers and you could expect a slow dawning look of horror to appear on their faces. This six letter word has become associated with deprivation, economic recessions and various other unpleasant events and implications.

However, the reverse affect should be considered. A budget is a means of enabling you to have some effective control on what and how much you spend of your hard earned money! If you do not have a budget plan at present, then you could be doing yourself a big favor by establishing one now.  It will help you determine exactly how to spend your money, plan for the future by making investments now and dispose of a burden by carrying, existing debt on your shoulders and, save.

Most of us spend money on unnecessary items, mainly because of impulse buying. Creating a budget may not be the most appealing thing in your life, but to enable you to enjoy financial freedom, it is the wise people who discipline themselves to live within their income.

Before you create your budget, look on it as a challenge to yourself, to be financially successful. Be honest by including as much detailed information as possible. As ultimately it will provide you with a clear understanding as to the origins of your income, how much and most important for most of us, where it is going!

Record all your current expenses and any that are forthcoming. They could include a mortgage, vehicle and related payments; groceries, utilities, general expenses such as cleaning; in fact anything and everything on which you spend your money each week or month.

Should your list of expenditure show that you have a higher income than your expenses, you are starting on the right path. If not, then you definitely need the help of a budget plan!

 

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