Budgets-Learn To Love Em!
By Bryon Zirker1. Budgets are very necessary when funds are limited.
Budgets help you get a fix on your financial position. You can
see your spending trends much easier and can help you to see
where every dollar is being used.
2. Budget creation usually follows three steps.
Getting perspective on your spending now.
Spot current spending trends and apply goals to move your
toward your financial objectives. Set a tracking system to keep
you on target and stay withinyour set guidelines.
3. Software can save time and prevent headaches.
By using Microsoft Money or Quicken personal finance programs,
you build a budget with budget building tools. They streamline
the process.
4. Do not get frustrated.
Try not to get to caught up with all the options and details
when using computer software to create your budget. Identify
the areas you wish to focus on and discard the rest. Keep it as
simple as possible.
5.Keep an eye out for money holes.
ATM withdrawals can drain your account quickly. It is hard to
track where the cash went. Keep good records. Limit your trips
to the ATM and set an ATM budget limit.
6. Do not spend beyond what you earn.
This is crucial to your budget. Trend patterns from the US
government have shown that households with inomes of
$50,000 and less, spend more than they earn. This is a sign that a
serious look at spending is needed. and a budget put in place.
7.Luxuries must no become necessities.
Try to keep a good perspective of what is needed and what
you really want. Set your budget to cover what you need and allow
for future purchases of what you want.
8. Pay your self first.
Make sure to pay yourself 10 percent right up front and put it
away. This can be built for future investment or big ticket
items.
9. Never count on that money you have not recieved.
A gift, lottery win, insurance settlement, bonuses or tax
returns should never be projected it into your budget. Be sure
to wait unitl any of these monies are in hand or account.
10. Watch for and avoid spending creep.
when your income grows your spending tends to increase with it.
Avoid this situation by putting the extra money away. Use it to
add to your emergency fund or savings. This takes alot of
awareness and discipline.
posted by Bryon Zirker @ 9:49 PM
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