Money, Are Not Bad, And Budgets Things

Category: Finance, Financial Planning.

Do you equate family finance with tax law?

If this applies to you, take heart- budgeting doesn t have to be rocket science! Does it seem like an overwhelming concept to develop a budget you can live with? Here are five tips to make creating a realistic budget easy: Tip# 1: Think positively about your money. In fact money is wonderful! Money, are not bad, and budgets things. Money enables you to have a wonderful roof over your head, to wear the clothes that help you tell the world who you are and what you re about.

You certainly wouldn t think money was bad if you were giving it to Katrina victims or the parents of a child with a debilitating disease. Money buys education opportunities, and money enables, cultural experiences you to help others in need. So that s the first tip to creating a budget, think positively about your money. If eating out is a major part of your life then you ll want to have a dining out category. Tip# 2: List the categories that you live by. If after- school activities are a large part of your child s life and your family expenses then that is a category for your budget. If you want to create a budget that you can live by, that is easy to use and easy to follow, create categories that make sense to you and your family.

Many budget forms have categories that won t make sense for your lifestyle. Tip# 3: Be realistic about your income. For regularly employed people with a regular and predictable pay check, your budget should reflect your current pay check after taxes. This is more difficult for self- employed individuals, commission based sales people or business owners, because business fluctuates. For folks dealing with unpredictable income, take a look at the minimum you ve made over the past 5 years and base your budget on that income. If you use the highest income you ve made in the past 5 years then there may be months when you make less and your budget won t work.

This way, all your financial bases are covered. The good news is that when you use your minimum average income you will often have extra money. Tip# 4: Set realistic financial goals. Plan how you ll use this extra money so it doesn t get fettered away. Budgeting isn t about tracking your costs and going without. It s about success, not failure. It s about setting and attaining your financial goals.

Before you sit down to create a budget, take a few minutes to evaluate and document your financial goals. For college? Do you want to save for a vacation? For retirement? What are your goals? For a new car? Without goals, a budget is nothing more than a detailed checkbook register.

If your budget, are all about, and categories financial burdens, a budget will be painful to create and more painful to live by. Tip# 5: Plan for fun. Make time, for fun in, and financial room your life. If you absolutely love skiing or taking your children to the zoo then fit that fun time into your budget. If you love going to the movies, create a budget category for going to the movies once a month. If you want your budget to be something that is easy to create and even easier to follow, follow these five tips. Have fun with it!

Making a budget doesn t have to be a chore, in fact it can be tremendously empowering.