| Anyone who desires a brighter financial future must | | | | your spreadsheet program if you are unfamiliar with |
| make sure to live in the financial present. This requires | | | | how to do this - don't worry, it is very easy. The last |
| the creation of, and adherence to, a budget. This | | | | line will be the overage or shortage of money for that |
| simple yet critical step to financial freedom is often | | | | month. |
| ignored. Many people feel it is overly complicated; or | | | | Optimizing Your Budget |
| they believe themselves thrifty enough that creating a | | | | If you end up with a negative number at the bottom of |
| working budget is unnecessary. The fact is that very | | | | your budget spreadsheet, you are spending more than |
| few of us do not need improvement with financial | | | | you are making. Seeing that, you may be tempted to |
| planning; most of us would be surprised - even | | | | run to the phone to call a financial planner; but that |
| shocked - to see exactly where our money goes. | | | | costs money, which you do not have. You can very |
| Budgetary Preparation | | | | likely fix your financial problems yourself. Save the |
| If you want to create your own budget from scratch, | | | | money. |
| begin by tracking every dollar you spend for at least a | | | | Review each spending category and determine where |
| month. Credit card and bank card purchases can be | | | | you can make cuts. Create a new column on your |
| monitored easily by looking over your monthly | | | | spreadsheet. Enter in your goals for next month's |
| statement, which is usually available online instantly. | | | | spending - be aggressive, you are striving for financial |
| Make sure to track all of your cash purchases, as well. | | | | freedom. Keep adjusting until the bottom number is |
| It is important to know where every dollar goes. Spend | | | | positive. |
| a little time categorizing the purchases. You should | | | | The next step is one that cannot be skipped or taken |
| have at least one category for savings or investments. | | | | lightly. At the end of that first budgeted month, |
| Pay yourself first! | | | | compare your actual spending to the numbers you set |
| You can also find preformatted budget templates on | | | | as your goals. Do this with every single category for |
| financial planning software, like Microsoft Money or | | | | the first two or three months. By then, you will know |
| Quicken, or on the web. If you go this route, find a | | | | which areas need work, and you can focus more on |
| budget template with a large number of categories. | | | | them. |
| You can then pare it down to suit your lifestyle and | | | | Budget Success |
| spending habits. The benefit of this is that you may | | | | If you can get to the point where there is always a |
| see some categories that you had not thought of. If | | | | positive number at the bottom line, you will experience |
| some categories do not apply to you, simply eliminate | | | | the sensation of "budget elation." Resist the temptation |
| them. | | | | to spend the extra money on a party to celebrate |
| Building Your Budget | | | | your frugality. Do not buy a self-congratulatory flat |
| Open up your favorite spreadsheet program. The top | | | | screen TV. Feel free to pat yourself on the back, |
| row of your budget will be your monthly income. If your | | | | though. The extra money should be saved or invested. |
| income varies from month to month, use a low | | | | Save for a dream vacation or for your kids' education, |
| estimate, so that you have a cushion. | | | | without worrying where your next meal will come |
| Under your income, put in each of the categories you | | | | from. Invest for your retirement or start your own |
| created. Each expenditure should be subtracted from | | | | business. Financial freedom will come if you make your |
| your monthly income. Refer to the "Help" button on | | | | money work for you. |