The Power of Budgeting Your Money

2007-04-06 0 By R.D. Hayes

Putting yourself on a budget can be hard and sticking to one can be even harder. Most families that fall into the Category of people who are in debt, never had a budget to follow. If you are one of these people or are just wanting a way to stay out of debt, then you should consider planning out a budget for your money and sticking to it.

We all know that sticking to a budget can seem like a task but if you do decide to do it, you will see the benefits in very little time.

When planning out a budget, you should calculate all of your total income after taxes. This should include all money from your spouse and you, and money that you may get from child support or any other source. Once you get this total added up, you are ready to move on to the next part of budgeting.

The next part to budgeting is to take all of your expenses and add them up. These expenses should include all bills that you pay and expenses that you use to pay for luxury items.

I would also add an extra page for goals that you would like to accomplish soon and in a few years from now. You should include your family in on this so that you can figure out what is more important to and to your family.

Now that you have figured out your total income, your goals, and your expenses, you will need to start planning your budget out. Going back to the list, subtract your expenses from your total income. If your expenses seem to be out weighing your income, you might want to think about cutting back on some of your expenses.

If you are within your budget and would like to see your money go to other means, then you should take out your goals list and use the money to invest in this so that you can accomplish your goals and dreams.

The idea to budgeting is to not spend more than you are making. If you want something that cost a lot and may take time to get it, then cut back on some of your expenses and use the extra money to go towards this. If you find yourself strapped for cash and would still like to get to your goals, then try saving your change or putting back ten dollars a week. Ten dollars a week may not seem like a lot but if you multiply that by fifty-two weeks, it equals out to be $520. Makes since doesn’t it?