2/29/2024 0 Comments Periodic expenses![]() These amounts can change depending on your use of products or services. List all variable expenses such as food, utilities, and gas for your vehicle.These expenses are always the same amount and are due every month. List all fixed expenses such as mortgage payments, loan payments, and car payments.The income column of your budget needs to include your income after taxes have been taken out which is your “take-home pay”. Create your budget based on ALL of your sources of income you earn over the course of one month. Whether you’ve managed to snag a new job right out of high school or you’re still working part-time at a job you had during your college days, you need to know exactly how much money is coming in each month. How to set up a new budget for the very first time: Step 1 – Compute your income by listing ALL income sources ![]() Putting your money to better use by doing more with less.Preparing you for those large periodic expenses.Managing your income and controlling your spending.It will help you build more wealth and plan for retirement or other big life events such as a wedding. A good budget can also help keep you out of debt or help you realize what must be done to get out of debt if you are currently having financial difficulties.īy setting up a budget, you can set and reach all of your financial goals in a timely manner. A realistic budget ensures that you will always have enough money for the things you need and the things that are most important to you. It can help you provide a financial framework for your future money plans, and it can help you with essential decision-making. Having a budget really could make or break your finances. A budget also helps you to closely monitor your finances and easily spot any financial errors that have been made. That could be a financial decision or even a big life decision like whether or not you should retire next year. Budgeting is not about how much money you have, it’s about how you handle the money you DO have.Ī budget is also an important tool to help with critical decision-making. Merriam-Webster defines a budget as “a statement of the financial position of an administration for a definite period of time based on estimates of expenditures during the period and proposals for financing them.” They go on to say that a budget is also “a plan for the coordination of resources and expenditures.” Simply meaning, it’s the blueprint for a family’s financial future. What is a budget and what can it be used for?Ī budget is a forecast of income and expenditures.
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