Are you budgeting your finances to the best of your ability? Be honest. If you answered no, that’s okay! Now’s your chance to make a change for the better.
It’s in your best interest to budget better because…
You can create a spending plan
You can allocate the funds for your needs
You can allocate funding for your passions
You can pay back your debt
You won’t spend money you don’t have
You can create a financial cushion in case of emergencies
It sets you up for a comfortable retirement
You can create a solid budget by taking into account your income and expenses. Your income ranges from salary/wages, rents/royalties, interests/dividends, and many other sources of income. Expenses will range from debt, food, insurance, savings, rent, utilities, and many others.
Identify your income and expenses, then subtract your expenses from your income. If your income ends up being greater than your expenses, you’re in the clear. Spend that money accordingly, invest, or save it. If your expenses trump your income, you’ll need to either cut back on your expenses, generate more income, or do a combination of the two. Whether your finances are in order or you’re spending in a deficit, you’ll be far better off by taking these figures into consideration. Adjust your spending habits accordingly and you will come out on top.