How to Establish a Budget

Setting up a Budget will help to manage one’s money. Most often people associate budget with limit but a budget will give flexibility with how money spend, save or earned. There is no need to exclude fun stuff from one’s live style because of a budget.

Budgeting is knowing where money is going and it gives the capacity to redirect money to address the needs that are greatest.

Budget must be realistic so it can be adjusted to one’s lifestyle, it is not a one size fits all. To be effective budget must be written and updated often to either includes or excludes expenses or incomes.

Tips to Set up a Budget

Here are some useful tips when Setting up a Budget.

1. Make a list of all Incomes
2. Make a list of expenses
3. Include taxes
4. Make a list of All Debt no matter how small
5. Put a line in your Budget for Entertainment
6. Miscellaneous
7. Make a list of all Savings:
   1. Retirement
   2. Emergency
   3. Other Short-term expenses such as Car, Vacation
   4. College Fund (if applicable)
   5. Other Dependent
8. Include family member as part of the budget. Such as spouse and children.
9. Use a spreadsheet that can be easily adjusted as needed.
10. Get help from a professional: Accountant, Financial Adviser or Financial Coach.