Money Monday Tip #3

“A budget is telling your money where to go instead of wondering where it went.” John Maxwell

5 Reasons Why You Should Have a Budget

1. Get control of your money
2. Accurate picture of your financial situation
3. It sets goals for your money
4. Improves family communication
5. Helps you prepare for emergencies

Making a budget doesn’t have to be complicated, basically it’s your income in one column minus your expenses in another column. If you have any money left at the end of the month, you’re doing good, if you have no money left at the end of the month, then you need to make some adjustments.

You can use this MS Excel Budget Sheet to get yourself started. Just plug in your monthly income and then fill in the amounts of your monthly expenses. The spreadsheet will automatically deduct the calculations for you, it’s that simple!

Another good thing about a budget is that you can plan your expenses. Say for example your car insurance is due Jan. 1, 2008, you don’t have to wait until you get the bill to try to scrape up the money, you budget for it before the bill is due. You simply take an equal amount of money from each pay and set it aside. When Jan. 1, 2008 comes, you write a check. This can be done with other expenses as well. If you anticipate that summer camp will cost you $1500, start budgeting for that expense now!

Doing a monthly written plan can reduce stress and worries about money. Don’t be afraid of the B-Word. A budget can be your best friend!

“If you fail to plan, plan to fail. ” - Unknown

Money Monday Tip #2