Personal Finance Budgeting

Planning a budget for your personal finance is very important to feeling secure and being financially stable especially in the current economic climate. It stands to reason that you should have some kind of monetary stash put away for a rainy day. A lot of people don’t look at their personal finance until they get in trouble with credit and debt. At that time, it may be far-reaching and more difficult to get back on track. However, if you aspire to reach financial health, part of the process is to gather all the knowledge you would need to start planning your finances wisely.Your first step to take is to find out what your exact expenses are for each month. These expenses will include your electric bill, phone bill, car payment, car insurance, credit card bills, mortgage or rent, cable bill, cell phone bill, college loan (if any), and other incidentals. Your incidental bills could include gas for your car, shopping, going out to dinner, nightly entertainment, groceries, and anything else that you consistently spend money on each month. Put all of these bills on a spreadsheet or create a specific journal to make your entries.The next thing is to match your income against all these expenses and see what you can cut out or limit each month. You have to do this if you want to have some money each month to put aside in a savings account. I am sure you have heard about the concept “pay yourself first.” What this means is that you should have a certain amount each week or each month to put aside in a specific account and you should not stray away from this habit. You are not breaking the bank, but steadily gaining momentum with your savings when you put money in each week or month. It will also give you a sense of security and balance. No one knows when disaster will strike, but one thing we know is that it will, so you have to be prepared for the worst.Take control of your debt. Stop over spending. If you can’t pay for something using cash, then this means that you are unable to afford it in the first place. Don’t let your credit card put you in bondage. You will forever be a slave to the credit card companies that want to hold you hostage for years to come. Cut up some of the credit cards that you have and only keep one. When you have one, you have fewer options.Track your spending. Take a little notebook with you to store or keep your receipts and make note of all your spending. You would be surprised that some of your spending is futile and unnecessary when you see it on paper. Before you go to the grocery store each week, write a list and take it with you and don’t go to the store when you are hungry. If you follow these two steps, you will not do any kind of impulse shopping. You will spend wisely and only buy the things you really need.You are in control of your financial destiny so be the dictator and do not let a financial institution tell you how to spend your money. The financial ball is now in your court.

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