Start a vital accounting habit
4. Identify and include your expenses.
5. Balance your income and expenses.
6. Controlling your spend or expenditure
7. Review and optimize your budget.
Understand the outcomes from your budget
Your budget is for meeting financial goals within a defined time span.Your budget should first meet your "basic needs"[this often includes - Healthier food, Clothing, Shelter, Health preservation, Safety and Security], then your “wants” that you can afford.
Your expenses should be less than or at worst equal to your total income. If your income is not enough to cover your expenses, you should adjust your budget (your planned spending) by deciding which expenses can be reduced or cut...
against a budget; for example, if your rent is $1,500 per month, you don’t need a “rent” budget that reflects that outflow each month. That’s just a waste of time, and potentially annoying, if you’re using a program that sends alerts about your spending! Therefore, unless you want to reduce a specific area of your spending—like food, shopping, entertainment—there shouldn’t be a budget item for it.
Creating a budget can be a daunting task, mainly because of the misconceptions surrounding why you need one in the first place. Many feel it’s because there is not enough cash flow so they need to establish a budget to monitor the little money they have. However, to the contrary, wealthy people also have to budget to monitor their spending and utilize wise investments to ensure they have savings for their future.
Here is a practical five step way to create and manage a budget:....
1.
Practical tips or guide on how to set up use a budget more effectively
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Courtesy of JNBS