Posted: Tue Apr 11, 2006 12:14 am Post subject: How do I plan my budget?
I have tried to budget numerous times but I have never been successful. I always find myself in some kind of financial bind. And I understand that part of my problem is discipline, but I want to know how to start a budget and what are its important components.
Mary _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
Posted: Tue Apr 11, 2006 12:20 am Post subject: RE:
Hi Mary,
Welcome to MortgageFit Forums.
When you start budgeting, the first thing you should do is to start deciding your goals. It’s useless to make a budget unless there is something to aim for. Prepare an estimate of your monthly expenses on areas like housing, medical, transportation, utilities etc. After that see what’s left, and try to put a majority of the remaining income into your savings. Try making savings a regular part of your budgeting process.
Always look forward to cut down your costs wherever possible; it’s good to start off with big items like your mortgage, car loan etc. And finally, develop a simple strategy for keeping a check on your budget.
Posted: Tue Apr 11, 2006 12:28 am Post subject: Re
Hi willis
Being concerned about how to improve the finances and taking initiative to improve it are two different things and it’s good that you have taken both the steps together.
Step 1: First calculate your total monthly income (including gross income and other sources of income).
Step 2: Now you need to think over your major expenses for the month and then categorize them accordingly.
Step 3: On the basis of your monthly income, prepare a budget regarding your monthly expenses for each item.
Step 4: Try to maintain your daily expenses in a sheet.
Step 5: At the end of the month, calculate your total expense for each item.
Step 6: Now you can easily find out, on which item your expenses are up to your budget or on which it has crossed the budget. This will help you to cut down your expenses for each item to keep the expense within your budget.
Maintaining your budget in this way will definitely help you to get relief from financial crunch.
Nowadays, several financial sites are offering free excel tools for regular maintenance of your budget. It's always better if you can utilize such tools while planning your budget.
Posted: Tue Apr 11, 2006 2:25 am Post subject: RE:
Hi,
Find out ways of having fun without spending money like a walk on the beach instead of going for shopping at the mall or a walk to a park instead of going to a movie.
And never be afraid of shopping around to avail the best rates.
Caron
