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