Create a Spending Plan or a Budget to Solve and Prevent Financial Problems
Creating a monthly plan for your spending is one of the smartest things you can do for your finances, yet it’s the most overlooked solution to most people’s financial problems. Having a spending plan or a budget (the technical name for a monthly spending plan) makes life so much easier because you’ve given yourself a guide to decide how you want to spend your money.
Ironically, it’s also one of the things that you’ll likely never learn in a class at Cambridge or Harvard. Not to pick on these universities though; most schools don’t teach students how to create a budget. So to help with this lack of training, your third assignment is to outline your budget.
If you’ve never created a household budget that works, here is a personal budget workbook to get you started or you can try out this interactive budgeting resource that guides you through the whole process. A budget based on real numbers sets you up for success, so use what you learned when you tracked your spending.
If there’s an expense you want to cut out of your budget, start by reducing it by half. This will tell you if you can stick it out for the long term. If you can make having a budget part of your life, you’ll know that you’ve passed this assignment successfully!
from moneycoach.com
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