How To Create a Family or Personal Budget

HOW TO CREATE A Family or Personal BUDGET

First Step - Write down all your fixed expenses (house payment/rent, utility bills, insurance Car payment, etc).

Second Step - Under your fixed expenses, write down all of your basic needs expenses (food, gas, clothing, toiletries, etc.)

Third Step - Add all of these amounts together and subtract it from your total monthly paycheck amount. The amount you have left is what you have left for budgeting.

Fourth Step - List all of your other purchases for the month. Write down every single item you spent money on, no matter how much it cost. Be honest with yourself. This is your budget!! (Every newspaper, pack of gum, cup of coffee, every candy bar, every meal, your nails & hair, make-up, etc.). Write down every single item!

Fifth Step - Add up the amount you spent on all of those items and subtract that amount from the amount you had left for budgeting. Did you Spend more than you made in salary? If you were totally honest about all your purchases you will probably be in for a big surprise.

You can now see where you are spending every penny of your money and what are necessity's? and what are want's? "Needs are things you want but can do without." These are the things you can being to cut out or cut back on if you have a budget shortfall at the end of the month.

Start your budget today!! The sooner you know what you have left over each month the faster you can begin tackle that moutain of debt or find money to save for a rainy day.

Until next posting
Terrance Givens
Motivatinal Speark & Financial Advisor