Budget,That awful six letter word that even our government can't seem to figure out. In economic times such as these it is ever important that we get our finances in order.
The First step is to get organized. O Magazine gives 4 simple steps for getting your finances in order:One of the biggest burdens that people create for themselves involves debt, especially credit card debt. Jean Chatzky of O Magazine shows how we can begin to consolidate and eventually eliminate our credit card debt. click on Jeans name to hear her great tips.
After your finances have become organized it is time to create a budget that works for you. Every person is different and so every budget is different as well. The key is to find one that is right for you. Some simple steps to follow when creating a budget our:
1.) Start by tracking your expenses. Determine which expenses are necessary for every day life ( rent, mortgage, food, car, ect.) and which ones are casual or optional expenses (eating out, movies, games, vacations ect.)
2.) Then make a list of current debt and make a plan to start paying it back.
3.)It is important to begin saving now even if it is only a small amount each month
4.) Next, take your monthly income and subtract out your necessary expenses. Take the left over portion and subtract the money you want to use towards paying off your current debt. If there is still money left over, put the rest in savings. You may choose to put a little bit aside for recreational purposes.
Once you find a financial strategy that works for you and your budget stick to it. Some times the results take a little bit of time to start showing. So be patient. In the end consitancy is the most important factor in maintaining a sucessful budget.
This is an important principle. I think that it is also learned by example. My parents are master budgetters and I learned a lot about managing money. It is nice to know that when you are living within your means you are also inspiring other people to do the same.
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