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.
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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: