BUDGETING RESOURCES

Budgeting is such an essential component of maintinaing and tracking your spending that it cannot be ignored.  Establishing a budget is extremely useful for tracking expenses, savings and monthly cash flow as well as giving you the ability to see exactly where every dollar is spent.

You cannot just create a budget out of tin air, there is a process to developing a budget that is going to work for you, follow these steps:

• Define your goals for the next year or two or three 
• Write down your monthly expenses (use this sheet)
• Write down your monthly income
• Subtract your expenses from your income
• If you have a negative balance, it means that you don't make enough to cover your bills every month
  
  If you have a negative balance at the end of the month, click here for the next step and see some examples of where you can reduce your expenses.
  
  
• If you have a positive balance, it means that you have a surplus after your bills are paid every month
  
  If you have a positive balance at the end of the month, click here for some ideas on what to do with that surplus.

Discipline is the key to achieving your goals through the implementation of a budget. 

You should always review your budget annualy and make adjustmenst based on future situations: job change, job loss, relocation, pay reduction, pay increase, etc.