Budgeting - Personal Spending and Money Management a Key to Weathering the Storm - And Much More - 101 World Class Expert Facts, Hints, Tips and Advice on Budgeting by Denise Chambers

Author:Denise Chambers
Language: eng
Format: epub
ISBN: 9781486455355
Publisher: Emereo Publishing
Published: 2012-11-10T16:00:00+00:00

How to Make a Budget

What is the best way to start a budget? The first thing to do when starting to make a budget is to compare their income versus their expenses. The good thing is that it is quite easy to do.

It's too bad most of us never learned this in school and had to figure it out on our own - so here is the lesson that we should have been taught in 3rd grade:

Good

If Expenses > Income = Bad, but if Expenses < Income =

And honestly, as simple as it sounds, that is the key to wealth. Anyone, and I mean anyone, who IS wealthy (I emphasize IS because I am not talking about people who appear to be weal thy, but who are actually in debt up to their eyeballs) spends LESS money than they earn.

The great news about this is that anyone can do this - no matter what their income level. If you can do it on a small income, then you can do it on a large income. If you can not do it on a small income, then you will not be able to do it on a large one either. Trust me!

If you really don't believe me, just ask all of the lottery win ners who went bankrupt within years of winning millions of dollars.

Regardless of how your expenses and income compare right now-get excited, because you can easily change it!! If it is bad you can make it so much better!! If it is good, you can still make it even better!! I will show you how later, but for now...

How to make a budget 114

If you calculate your monthly expenses and income and your expenses are less than your income, then you are a rare breed who is in great shape, so just sit tight for a minute.

For everyone else, whose expenses exceeded your income - you are not alone. You actually have a lot of company. The prob lem is that it is not good company to be in! Most of the U.S has way too much household debt!

So, if your income is $900 and your expenses are $1000, that means you spend an extra $100 each month that YOU DO NOT HAVE!! What your job is now is to find out what you can get rid of or quit buying each month to save that $100. I know, I know

-this is the part that hurts. Just like pruning a bush-cutting back

hurts, but ultimately you are going to yield so MUCH more fruit because of it!

The goal here is to get your expenses and income to AT LEAST be equal. Once that is accomplished we can work on elimi nating wasteful spending or cut other costs to bring the expenses below the income.

Now that you have calculated what your monthly income and expenses are we can start designing our budget. We will first discuss the less effective, but easier method for budgeting

The world's easiest budget

There are 2 simple rules to do a simple budget: 1.

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