Why do we need to budget?
If we do not know where we are at with our money then we do not know how to survive.
Knowing our starting point helps us know what direction to take so that we can plan for the future. Buying a house, having a family and retiring are things we all dream of. With a current accurate budget, you can make sure that not only are you prepared for these events but also that you are set up for the next milestones in your life.
So where do you start? The first thing you need to do is figure out how much money you make in a month and what your expenses are. Just moved to a new city or moved out on your own? No idea what the costs? Google “Living Expenses” followed by the name of the city you live in. You can use these numbers to start your budget. As you learn what your actual costs are, you can personalize your budget to paint a more accurate picture of your financial position.
Remember: Your budget is ever changing and requires updating on a monthly basis. You also need to add to your budget a line for savings. I know saving is very tough when you move out on your own and are just starting out. Make it your goal to put 10% of your income away every month.
Now that we have figured out where we are we have a fighting chance at surviving the money maze!
Doing Life Right 