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When and how
to start a budget... Page 2
continued
Understand Where the Money Goes
- Sift through your current records. Look through your checkbook,
statements, and receipts. Start gathering information on where, and how much money you
spend in various categories on a weekly or monthly basis.
- Create some new records.
Now take a small pad of paper and jot down every penny you spend. Start with just making
it through one day, if you have to. Carry this paper with you wherever you go. Graduate to
making yourself do this for a week, then maybe a month or two.
At least go go through one full "cycle" of your money routine before you stop.
Yes, this will be a tremendous pain! But, if you've never done this, please go
through this exercise at least once in your life. Trust us, it will be an amazing
eye-opening experience. You cannot gain the perspective of this "game" unless
you play it. The pay-off is big. It will make a world of difference in your progression to
controlling your money. Just knowing where your money goes is a terrific education in and
of itself. You will be amazed, and learn things about yourself you didn't realize. And
right away, you'll get some great ideas on how to improve your spending habits! This
becomes the first building block of your customized budget!
Spring
Clean...Anytime of Year!
- Get organized.
Simple organization is key to financial success. Gather and begin to sort all of your
financial records. Create a filing system if you don't have one. Separate the important
documents (stock certificates, wills, powers of attorney, etc.) from the routine
statements (credit card, paycheck, utility, etc.). Make sure you know where everything is,
and have it ready to access.
- Balancing act.
If you are not in the habit already, get your checkbook balanced and reconciled. Get it up
to date and ready to go!
"Filing Cabinet:
A place to loose things alphabetically."
Author Unknown
Congratulations, it is Time to Set Up Your Personal Budget!
However you decide to do this, it will be the most important financial step you ever take.
Budgeting is the foundation upon which all good financial decisions are made. You'll never
regret doing it, but you'll certainly regret not doing it!
Jane Chidester is the
author of " BudgetYes! 21st Century Solutions for Taking Control of Your Money
Now!" She also conducts seminars and is a published columnist on personal
budgeting topics. Her website, Budget Central, is a repository of information
and resources on personal budgeting, financial planning, and household money management -
a complete budgeting education. You can contact her at Jane@TulipTreePress.com.
Credit and Debt
Calculators:
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• Should I pay off debt or
invest in savings?
• What will it take to pay off my balance?
• Should I consolidate my
debts?
• How Much Am I Spending? |
