How to create and maintain a budget

According to the Consumer Action Group, more than 35 percent of Americans do not have a household budget. These people are missing a very important tool to keep your finances healthy. Creating a household budget will help you meet your financial goals, such as saving for college for your children or to retire. A budget also can show you what your financial problems are, so you can fix them. If your finances are not well, a budget will show you how you can cut costs. Think of your budget as you spend money is a great motivator to stay on the path toward your goals. Follow these steps to create and maintain a budget.

To create a budget, you need to know everything you earn and spend. For a month, keep receipts for everything you buy. also keeps the bills for all monthly bills to pay, such as heating, electricity and credit cards.

At the end of the month, meeting all receipts and invoices that you have saved. Using a notebook or spreadsheet such as Excel, create 3 columns: Needs, Wishes and Savings. In the column “needs,” including things like food, gasoline and rent or mortgage. Also it includes everything that force you to pay, such as child support, payments by credit card or cell phone contracts. Do not forget to include the bills you pay every 3 or 6 months, car insurance example. If you pay every 3 months, divide the prize for 4 and register it in his column “needs.” Desires include unnecessary expenses – for example, eating in the restaurant or donate to charity.

Since you have all your finances ahead, add your expenses and your income rĂ©stalos. If you find that you pay more you win, you have problems. But how you should allocate your money? Here you see the purpose of the columns above. The nationally renowned financial expert Elizabeth Warren recommends “50/30/20 Plan.” This means that fifty percent of their after-tax income to pay the column “needs,” the 30 percent column “desires,” and 20 percent the column “savings.” This is a difficult task to achieve, especially during these difficulties, but it is a wonderful goal to aspire to.

You have a budget and a financial goal. How can you continue to obey your budget right? Here are some tips to keep using your budget.

The make and keep a budget will help you be well for easy and difficult times, reduce your debts and save for your future.