Financial Literacy/How to Create a Budget
Gather all financial statements that you have.
Bank statements, all bills (utility, rent or mortgage, credit cards, store cards, insurance invoices…)Track all monthly expenses.
Record all sources of income
Pay stubs, interest from bank accounts or investmentsList monthly expenses
Put into categories; such as:Separate all expenses into “fixed” or “variable”.
Total all your income and expenses.
Make adjustments based on the results
Pay yourself each month.
Into a Savings account or some type of Interest-bearing accountReview it every month and adjust as necessary.
Here is a sample budget available for download as an Excel document or a .PDF.
Keep a spending diary, putting receipts for each day’s various expenses such as, coffee, lunch, snacking, gas or the T, newspapers, cigarettes…
P: Postpone Expenses
Put off what you can during a recession; such as a car purchase or an expensive vacation
Get rid of expenses such as gym memberships that you don’t use, cut back on your cable expenses like HBO, Showtime, etc.
Clip coupons, go out to eat less often.
Make certain that you know what you must keep in your budget and then make adjustments with everything else.
(Article from Money and Finance)
Buy things you need, not just things that are cheap.Shop Generic brands
Save for a rainy day
Use gift cards for treats
If you go to places like Dunkin’ Donuts or Starbucks, get gift cards for a specified amount each month and stick with your budget. Remember, if you get two Medium Regular Coffees at D & D each business day you are spending $75.00 per month on coffee alone …$900 for the year.Competition is your advantage
Compare for items like cable and internet service for the best dealClip Coupons
You can negotiate a better deal with credit card companies and cable services among others…Recycle
Budget for fun
Set aside money for an evening out and other fun family things like bowling, movies or miniature golf…
What you need:
Bank Statement Ending BalanceFormula:
Bank Statement Ending Balance
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