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BUDGET defined
This is a spending plan that shows where you stand financially. It itemizes all of your income and expenses for a month, or a given time frame. Budget are just a part of a good financial plan.
BENEFITS OF BUDGETING
You can benefit from a budget in many ways;
- It allows you to take full control of your financial life.
- It can allow you to detect spending and earning patterns that may be creating problems for you financially which will allow you to decide what you want to change.
- It also frees up cash to put toward goals that will improve your life.
CREATING A BUDGET
There are different ways to create a budget but i will discuss only two;
- You could set up a spreadsheet on your computer, download a budget worksheet here for your personal use.
- You could also do something as simple as cashing your money from your bank account and putting the money into marked envelopes for different purposes, such as food, rent, utilities, transportation, entertainment etc as the case may be. The key is to set up a system that works for you and then use it.
Always look at budgeting as a business; knowing that businesses have budgets in order to track their money and make the best use of their resources. Hence you should have a budget for the same reasons. If you are married as well do a budget together and talk about it.
