How Do You Create A Financial Budget?
A financial budget is a useful money management tool, which can allow greater financial freedom in the long term by effectively allocating assets and spending on month-to-month basis. One reason many people find themselves in stifling debt is poor financial planning. The purpose of a budget is to avoid spending more than one can afford, to get on a path of financial responsibility. Gather all the financial data that you have. To make a budget, you need to know all your utilities, sources of income, debts and assets. Calculate how much income you take in each month. Creating a monthly budget is the most effective, since bills and income usually come in by the month. If your income varies by month, come up with an average of how much you normally earn. Be sure to subtract money taken out of your income for taxes. Make a list of monthly fixed expenses and subtract them from your total income. Fixed expenses are those which do not change in amount each month–things like rent, cable, insur
