Saturday, January 4, 2014

How to Create your own personal budget!!! Guest Blog Article I did


Creating a personal budget


Balancing checkbooks and maintaining personal financial expenses can become a frightening experience. Adequately paying bills on time while having enough money left behind to fulfill personal needs can be a time consuming process.  It is so time consuming that indeed only 40% of American families take the time to do it. However, creating a budget, or writing down monthly expenditures is the first step to creating a free and easy personal financial life.  There are multiple methods to create a personal budget, which should be examined.

First steps in budget creation
The first step is to acknowledge that there is an inconsistency. The first red flags are overdrawn bank accounts, or living paycheck to pay check. Lack of money can lead to increased spending on credit cards, which inspire more debt.
Moreover, rationalizing expenses can change dependent upon the situation, making it easier to spend money of items that are not necessarily needed. Living under such worrying conditions can only create more stress and health problems. Research has proven consistently that the way to create a better lifestyle and generate wealth is through creating a personal budget.
Researching on the Internet can be helpful as well. Finding examples or low cost budget creation software can take the pain out of writing down individual financial expenditures. Some websites also offer free software, which only requires data to be entered.

If the problems mentioned before are nuisances in ones life, its possible to ease the pain and pressure of financial lack. Deciding to take control of ones financial future, and acknowledging a problem are the first step in tackling financial responsibility. Creating a budget isn’t as difficult if easy steps are followed to produce a monthly budget. This budget will help to measure what money is left over to spend on personal needs without relying on a credit card to make up the difference.

How much and where should it go?
The second step in taking control of ones financial destiny is to know how much income is present. Whether it’s a salary or a personal business, the after tax knowledge of how much money is being earned is the starting point that’s needed.  This helps paint an accurate portrait of the amount that can be divided amongst bills and personal needs.
Monthly expenses should be written down or typed in a spreadsheet to make the numbers visual. Subtract the monthly expenses from the total salary amount and adjust each month as needed. The money left over can be considered disposable income, which should be then equally divided over a four-week period to adequately determine spending habits. Personal needs such as food and clothing are needs which needs to be addressed first.
Discipline is the final step in creating and maintaining a personal budget. Dedication to resolving ones financial situation will take courage and focus during times of stress. Following the appropriate steps to create a budget using software tools or simply writing it down, will point each person towards wealthy and building financial success.  

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