Money Talk With Slater

Making Money Across the Board

Daily archives "January 19, 2018"

How to Make Your Personal Budget

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Creating your first budget can be very overwhelming. So overwhelming since less than 50% of folks have a monthly budget. Truthfully, having a budget is worth the effort. Crafting a budget that you can sustain over the long term has been ultimately linked to building wealth, while at the same time helping you cut expenses and get out of debt.

When getting a budget together, you should take how much money you make a year and divide it into categories to figure out how much you can afford on a recurring basis, as well as how much you can regularly invest.

This stops you from spending money on things you need and want without seeing if you can truly afford them. This also stops you from overdrawing your account and using credit cards unnecessarily.

If you’re a first-time budgeter, here are some steps to make the procedure as painless and as smooth as possible.

Know How Much You Have
If you have accounts (checking, savings, investment), you need to know how much money is in each account and the interest rates and expenses of every one of them.

Determine Your Average Recurring Monthly Expenses
This can be the hard part for many folks. The best way to decide your monthly expenses is to create a list of household expenses for a month. Keep your receipts, your utility bills, and any other expense that occur during a 30-day period and divide these bills into categories.

Track, Monitor, and Be Disciplined
Keeping track of your budget takes an hour or so per week. But this will save you a lot of time over time. Once you have created a budget, you need to keep it in check. The understanding that you’re making good long and short term financial choices will give you with a great deal of comfort. It will take you from living from paycheck to paycheck to being able to see the long-term results of your budget.