Start by going over last month’s statements and recording your bills by budget category: mortgage/rent, groceries, cell phone bill, etc. Next, write down a list of your expenses. Maintaining a budget can help you make sure that your income exceeds your expenses and allows room for retirement savings. This includes your take-home pay (your paycheck after taxes and other deductions) and any other sources of income. The first step is to figure out how much money you’re bringing in every month. Read on to learn about the five steps to a successful budget and download our printable worksheet (PDF file) below to start budgeting the Team Clark way! 1. To help you get started, remember that budgeting is as simple as C-L-A-R-K: After the initial setup, it’s really easy and doesn’t take much time. Making a monthly budget for the first time may seem overwhelming, but it doesn’t have to be complicated. This is about giving you power back into your life.” The CLARK Method: 5 Steps to Better Budgeting “Tracking what you’re spending and then seeing where you can make changes in your life is powerful. But the whole idea of budgeting is freeing because you’re getting your life under control, creating more choices and reducing anxiety,” money expert Clark Howard says. “A lot of people look at being told to do a budget as if their life is being restricted. The CLARK Method and our free budget worksheet will put YOU in control of your money: We developed a 5-step plan to help you create a personal budget and stick to it over the long haul. You might not be able to solve the problem immediately, but you could start taking steps in the right direction, whether it’s learning how to improve your credit score so you can refinance your debt at a lower interest rate or researching options for a less expensive education.The secret to saving more and spending less every month isn’t a secret at all - it’s a budget. Benefit 4: Spot problems before they catch you off guard-When you create a budget, you’ll be able to see clearly that only having $30 left at the end of the month to put toward your credit card bill puts you at serious risk of being unable to get out of debt or lack the money you'll need to help put your kid through school.Whatever motivates you, budgeting can help you get there by helping you set financial goals and prioritize where your money is going. Benefit 3: Achieve your goals-You might have a goal of traveling to Tokyo, buying a car, or becoming a one-income household instead of a two-income household.It can also help you see where you might be able to make room for saving more or paying down debt faster so that unexpected costs become less likely to set you way back. Planning your budget at the beginning of every month can make you feel like you’re choosing where your money goes. Benefit 2: Gain a sense of control-It’s easy to feel like expenses are happening to you, especially if money is tight.That means you’re probably going to spend even more time working and less time enjoying friends, family, hobbies, and sleep. If you’re not spending and saving consciously and carefully, you’re not getting the maximum benefit from the time you spend working. Benefit 1: Maximize your returns from working-You probably spend 20 to 50 hours a week earning money.
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