Creating Your Personal Budget
You feel often run out of money at the end of the month? Or you feel the money quickly ran out and did not know his run where? If Yes, then you must have a personal budget! Not only you are in trouble, in fact every person who uses money, ideally have a personal budget. Search for hard money, but spending it easy is not it? That’s why you need a personal budget.
Before you create a budget or spending plan, then you should analyze yourself first. Are you already living independently, or still are under responsibility of other people? If you are living independently, then you’ll have some idea about what costs are going to happen. Or if you are in financial trouble, you can resolve your problem.
Before you create a spending plan, you need to look at your spending patterns today. This may sound difficult if you need to record your expenses for a month. But you can do with a little note each day and record every dollar you spend. Remember, every penny! Write down your spending money on any items, how do you pay (cash, check, credit card) and enter into each category.
Arrange your personal expense categories as follows:
• home: rent, electricity, telephone, water, etc.
• Vehicles: vehicle payments, gasoline, maintenance, insurance
• Food: food everyday at home, eating out
• Grocery items: food items, beverages, snacks, etc.
• Clothing
• Entertainment: TV, magazines, movies, CDs / DVDs, tapes, etc..
• Health: the cost of doctors, Askes premiums, prescriptions, other medicines, glasses / contact lenses.
• Other: other unexpected purchases
If you are still in a dependent, then maybe you arrange the categories will not be too much, but this could be a good exercise.
At the end of the month, you may be surprised at what category the most of your money spent. Small purchases, it could be if the collected amount far greater than you imagine. For example, how many times you come to Starbucks? Maybe you spent a lot of money for ‘just-only’ groups, such as’ ah, this is only 10 thousand “but after In total in a month. Well, the numbers!
Once you understand your spending patterns of each month, then you are ready to move into the next stage is to plan spending.
Tags: Financial, personal budget, personal expense, plan spending