What is budgeting?

How do you budget?

Do you want to save. YOU NEED A BUDGET!

Do you want to pay off debt. YOU NEED A BUDGET!

Do you want to invest. YOU NEED A BUDGET!

Everything you plan financially NEEDS A BUDGET! 

A budget helps us figure out long-term goals and work toward them. Drifting aimlessly through life, tossing money at every shiny, new object that happens to catch the eye, how will we ever save up enough money to buy a car or put a downpayment on a house or build real WEALTH?

A Budget is a spending plan where we can monitor our income, spending, savings, and investments.

The reasons to have a budget depends on the individual, it often helps to attain Financial Independence and Financial Freedom. Also, a budget can set us on the right path to achieving our financial goals, spending within our means, saving for retirement, building an emergency fund, and analyzing our spending habits.

This is a Plan, a purpose for every penny, every month! Believe it or not, this does set us free.  It is empowering to know how much we can spend each month, and to see our wealth grow over time.  

START WITH INCOME. Determine all monthly income from take home pay and other sources of income such as investments, and part time jobs. 

LIST EXPENSES. Prepare lists of all monthly expenses such as food, groceries, mortgage payments, car loans, and any debts.

Check past receipts of purchases to plan get an idea of future spending. 

SUBTRACT EXPENSES FROM INCOME. Ideally, expenses shouldn't exceed total income. 

SET GOALS. Establish a list of goals from short term to long term goals. 

TRACK EXPENSES. Regularly review the budget and track expenses to stay on track. Use budgeting apps or spreadsheets to simplify the process and identify areas that can be improved.

To top it all off, creating a budget can have a huge impact and a transformative step towards financial success. Remember, financial security puts your future at ease.