How To Budget Your Money. Ann House, MS, CFCS. Why should I budget my money?. Budgeting your money will help you make smart money choices:. Make your money go where you want it to go Pay off debt Resist the urge to overspend Make your money work for you. Budget Wisely.
Ann House, MS, CFCS
Budgeting your money will help you make smart money choices:
Being smart about money can help you:
List your salary or self-employment wages as well as any other income you receive, such as:
A fixed expense is a cost or obligation that occurs regularly and doesn’t vary in amount.
It’s important to know where your money is going. Make a list of all your fixed expenses:
A variable expense is a cost or obligation that occurs regularly, but may vary in amount.
Write down all variable expenses for one month, even small ones.
Discretionary expenses are your indulgences – things you splurge on but that you can live without.
Look at bank/credit card statements and estimate expenses for cash purchases or keep a daily log to track these expenses. Examples:
Which is higher, your income or expenses?
If your income is less than your outgo, begin cutting back on nonessentials:
Instead of drastically cutting things out of your lifestyle, try the Step-Down method.
Saving is the key to a successful financial future. Direct your savings toward your primary objectives: